Fair question. You do not need an estate plan, if you are the only human being on the planet ... without an expiration date.
Not likely odds, my friend.
Given that death is 100% on the actuarial tables of every life insurance company, not to mention plenty of anecdotal evidence in support, why do fewer than 35% of adult Americans have even a will?
According to a recent CBS Boston article, titled “Where There’s A Will There’s A Way!”, estate planning is a common personal responsibility that falls prey to procrastination.
Unfortunately, many of those who procrastinate have minor children to protect.
While most parents are keen to focus on providing for their children every day, they rarely make plans to provide for and protect those very children if orphaned.
If this sounds like you, then you need a will to appoint guardians (i.e., backup parents) for your children without delay!
Without a will you leave it up to a court to appoint someone of its choosing to fill this essential role.
Plus, when there is life insurance involved, plenty of relatives tend to come forward and offer to rear you children (and manage their inheritance).
Not good.
Assuming you make a will to appoint the guardian of your own choosing for your minor children, what about their inheritance. How do you protect it "from" them and "for" them"?
One solution is to create a "testamentary trust" for the children as part of your will.
Naturally, you will need to designate a "trustee" to manage and distribute the trust property per your instructions.
Again, here is where procrastination rears its ugly head.
Well-meaning folks become paralyzed when selecting the guardians and trustees for their children.
However, the real challenge behind the procrastination may be facing the potential reality of a future for your children without you in it.
Bingo.
I get that, but you must move past these feelings.
So, who are likely candidates for the guardian and trustee roles?
Typically, the include an adult sibling, cousin or a friend who lives close.
You should discuss all of this with family members and friends before making it official.
In the end, proper estate planning makes things easier for those you leave behind if something should (and will) happen to you.
Consulting an experienced estate planning attorney is the smartest move you can make. He or she can guide you through the entire process (and help you avoid land mines along the way).
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: CBS Boston (August 27, 2015) “Where There’s A Will There’s A Way!”
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