With Halloween just around the corner, you are probably starting to think about scary things, purchasing candy, what will your children want to be for Halloween (if they haven't already told you a thousand times since last Halloween), and most importantly, what will you be for Halloween?
In addition to paying the annual homage to ghosts and goblins, the idea of implementing an estate plan might be one of the scariest things you have to confront as an adult. But estate planning does not have to make chills run down your spine. In fact, estate planning empowers you and your family and allows you to live confidently and with peace of mind, knowing that things will be taken care of in the event of your passing or incapacity. Remember, estate planning is not just for the rich and famous. In fact, one would argue the rich and famous, at least some of them, entirely neglect estate planning. But if you own anything or have young children, you should have an estate plan.
Benefits of Estate Planning
Proper estate planning accomplishes many things. It puts your financial house in order. Parents designate a guardian for their minor or disabled children, so they’re raised by someone who shares your values and parenting style (rather than whoever some judge, who hardly even knows you or your children).
Homeowners can make sure their property is expeditiously transferred to a designated beneficiary in the event of untimely death. Business owners can ensure the enterprise they’ve worked so hard to build stays within the family and limit or avoid confrontation over the business all together.
According to a 2016 survey, only 40 percent of Americans have a will and just 17 percent have a trust in place. This translates to a majority of American families not being adequately protected against the eventual certainty of death or the potential for legal incapacity.
When it comes to estate planning, knowledge and planning is vital. Be prepared. There's a lot of people who just don't understand that an estate plan can be used to address several concerns (financial or non-financial matters), including health decisions and guardianship, avoiding probate court (whether for probate, guardianship or conservatorship proceedings) and preempting family conflicts, as well as taking advantage of business and tax benefits.
Estate Planning Horror Stories
Legal disputes over estate plans and wills, or the lack of having these in place at all, are common. These conflicts can cause harm to family relationships and be financially burdensome.
Disputes among the rich-and-famous often made headlines. Some scary outcomes of inadequate or non-existent estate planning include:
● Prince, who died without a will, leaving lawsuits and hefty lawyer’s fees for his family;
● Aretha Franklin, to be determined as of the date of this article;
● Whitney Houston, whose failure to update her will negatively affect her daughter Bobbi Kristina’s inheritance;
● James Gandolfini, who didn’t finish planning causing his estate to be hit with unnecessary and easily avoided death taxes;
● Michael Jackson, who set up trusts for his children but never funded them resulting in a multiple probate court battles; and
● Philip Seymour Hoffman, who never set up trusts for his kids causing their inheritances to be unnecessarily taxed.
These horror stories are not limited to wealthy celebrities. You probably know someone who has experienced or have themselves suffered family disputes due to the failure of an existing estate plan or inadequate will. Most people do. If you've gone through that drama or you know someone who has and you haven't done your estate planning or you know someone who needs to get it done, get it done and help you and others to reduce future family conflict. Preserving family harmony is for everyone.
Estate planning can be confusing as each circumstance is unique and requires different tools to achieve the best possible outcome. We understand that estate planning can be a confusing topic. It's important to seek professional guidance to learn more about what your estate plan would look like and what tools would fit your circumstances.
We’re here to help. An estate planning attorney is essential in determining the best way to structure your will, trust, and estate plan to fit your needs. If you or someone you know has questions about where to begin - contact Durfee Law Group today at 480.324.8000.
SCARED OF ESTATE PLANNING?