Many people realize they need to do something to protect their loved ones, such as prepare a will or trust, but put it off with excuses, such as: “I’m waiting for the house to sell” or “I’m waiting to buy the new house.” “I’m going on a trip, so I’ll do it when I get back” or “I just got back from a trip and I have to get things squared away.” “I haven’t been well lately” or “I’m in great shape. There’s no hurry.” “I’m so busy at work” or “There’s so much going on at home.”
These excuses, which invoke short-term priorities, all translate to a few major reasons, including:
• Cost: We shouldn’t buy what we can’t afford, but the cost of a trust is usually far less than the cost of probate. The cost of a will is negligible compared to the cost of hassle and unfulfilled wishes for our loved ones’ security.
• Lack of decisiveness on major issues, such as selection of guardians for children. No one will parent your children as well as you, so it may be hard tochoose a candidate, but doing nothing is a decision — one that can’t be revoked once you’re gone.
• People’s unwillingness to contemplate their own mortality. Death is an unpleasant, but inevitable prospect. Shouldn’t we make our wishes known while we can?
Estate planning documents, such as living trust, wills, powers of attorney and health care directives, set forth directions as to:
• Control and use of our assets while we are alive,
• Disposition of those assets after we’re gone,
• Nomination of a personal representative to take control of our assets if we are disabled or die, evaluate those assets, and pay our debts, and
• Eventual distribution to our beneficiaries.
A properly funded estate plan can avoid the cost, time and inconvenience of probate proceedings, and may save significant federal estate taxes.
This writer has often had the pleasure of observing that people who complete their wills and trusts, and otherwise “take care of business”, appear relieved, reassured and satisfied. When we have carried out our wishes and protected our loved ones, we feel good about ourselves, and with good reason.
Jerry Kessler practices law in Santa Clarita. You can reach him for a confidential consultation at 661-255-1001.