“Estate planning is simply the fancy legal term for deciding what to do with your stuff after you are gone.”
So states a recent article in The Cheat Sheet titled “A Beginner’s Guide to Estate Planning.”
However, in my 30-plus years of helping folks prepare their estates, "estate planning" is more about relationships and people.
For instance, do you have minor children?
If yes, do you care who rears them to adulthood in a world without you? An inheritance can be a "blessing" or a "curse" depending on the financial maturity of your heirs. Are your children (whether minors or "adults") really ready to inherit your life's work in a lump sum?
Is your family a "blended family" with children who are "yours, mine and ours." Question: Who will you "disinherit," your new spouse or your own children? In a truly nightmare scenario your "ex-spouse" may inherit everything.
Yikes!
No one really relishes facing his or her own morbidity and mortality. I get that. They are among the less pleasant facts of life. But there is no time like the present to get your estate plan inked.
Why?
Because you can only plan your estate when you are of "sound mind" and alive. The longer you wait, the greater the chances you will be unable to legally plan.
An added benefit to proper estate planning is eliminating the burden of dealing with your "stuff" and relationships after you are gone ... without a game plan.
How do you want to be remembered by those closest to you?
In most important areas of life the consequences of planning are always more pleasant than the consequences of not planning. And, when it comes to your own estate plan, it is your own personal responsibility.
Whether your planning uses a last will and testament to shepherd your estate through probate, or you employ means to transfer your estate outside of probate, careful planning is required to make sure the process is smooth.
Do not forget about estate taxes either. Proper planning can minimize or eliminate them. This is essential, especially for those who want to pass on a family business, farm or ranch intact.
Contact an experienced estate planning attorney to educate you regarding your options, make recommendations for your unique circumstances, then properly prepare and execute the legal instruments to implement your plan.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
Reference: The Cheat Sheet (March 3, 2015) “A Beginner’s Guide to Estate Planning”
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