As an estate planning attorney with many years of experience, I recognize four distinct approaches clients take to estate planning. Which approach are you taking right now? And once you decide which one is most like you, make sure to read what your approach may mean to your heirs.
Approach #1: I don’t worry about it, I don’t have much in the way of assets, only a few heirs, no big deal.
Consequences: Dying without a will, called dying intestate, can cause a lot of problems for your “few heirs”. Without direction on the distribution of your few assets, the court will decide on your behalf, and your heirs may not like what they get. Plus, whatever inheritance they may come into (your car, for example) may be held up because of court proceedings, etc. It can be messy. Oh, and maybe you don’t care about a funeral, but without direction, your heirs are left to guess what you might have wanted. And second-guess themselves later, perhaps. Cremation? Burial? But the reality is, if you don’t have any heirs at all, once your creditors are paid off, the state gets to keep what is left over. Is that ok with you? Honestly, if you have a favorite charity, you could at least leave your assets to them; they will be beyond grateful. Why not spend a little time and money and get a will drawn up for your heirs and perhaps your favorite charity as well?
Approach #2: I have a will, worked with a lawyer some years ago, I’m all set.
Consequences: If by “some years ago” you mean 5, 10, 15, or more years, you might want to reconsider feeling “all set”. Life brings changes, and changes can have a big impact on your will. Just a few: Divorce, marriage, new baby, new grandchildren, death of an heir, significant inheritance (such as your grandparent or parent passing away), disability, or retirement. See what I mean? I’ve seen outdated wills do more damage and cause more pain and suffering than having no will at all. Truly, if it has been more than a few years, please at least get it out and read it through. You might be surprised at who you chose as a beneficiary all those years ago or what you listed as assets (that you may no longer have). Or a myriad of changes that impact your estate plan have occurred since you first had it drawn up. I strongly urge you to review now and take action, for your own peace of mind and for your loved ones. Consider reaching out to me for help.
Approach #3: I have a will, I downloaded it off the internet, I’m all set.
Consequences: First, I’m pleased you have a will. Good for you. And it might be just fine if you have little in the way of assets. Or few, if any heirs. But I’ll just say this: if your downloaded will ends up not being legally acceptable by the court (it happens) or mistakes were made during its creation, your heirs, not you, will suffer. At a minimum, it may delay the distribution of your assets. At worst, if things are not crystal clear and thus are open to interpretation, your heirs may end up fighting over the assets. Or .. well, I’ll leave it at that. I recommend that if you do have a will you downloaded, you take this opportunity to review that document with an experienced estate planning attorney. Especially if it’s been a few years, as it may need updates by now anyway. Why not give yourself the gift of peace of mind knowing you’ve done right by your loved ones?
Approach #4: I have a will, a trust, and a few other legal documents, and I update them every few years.
Consequences: You are a star! Clients who understand that estate plans are not “one and done” and that they need to be periodically reviewed and updated clearly don’t want to leave their loved ones in a bind. They know it will be tough times when they pass, and they don’t want to burden their loved ones, already grieving, with legal stuff that can cause delays, family arguments, and even significant legal fees. I applaud you if you consider yourself an “Approach #4” kind of person. I already know how much you care about your family.
Which approach best describes where you are with your estate plan? Please know, whichever it is, you are in good company. But if you are #1, #2, or #3, why not call me to schedule a meeting to discuss putting together a plan that reflects your current situation and demonstrates how much you care for your loved ones? Please visit my website at www.davidlefton.com or call me at 513-399-7526.