Some people never get around to retaining a lawyer to prepare their will, living trust and other important estate planning documents. Here are some of the reasons we hear and our responses:
1. “I don’t need estate planning documents.”
Not having estate planning documents can result in your family, friends or charities being left out of your intended plan (or result in your property going to people who you did not intend to receive it). It can also result in additional taxes, fees, delays and disputes. The cost of the probate process can greatly exceed the cost of a comprehensive estate plan.
Further, a comprehensive estate plan covers more than distribution of assets upon your death (e.g., who will make health care decisions for you when you are unable to make those decisions yourself?).
2. “I’m too young. / I’m healthy. / I can do my estate planning documents later.”
Occasionally, people who would like to sign a will and trust have waited past the time when they can do so (due to mental incapacity). Others pass away before they have the chance to sign their documents. Accidents, illnesses and misfortunes happen without warning.
If you wait until the last minute, you might not have sufficient time or ability to make use of available techniques to save taxes, eliminate probate and properly take care of your intended beneficiaries.
3. “I did my own will. / My lawyer-relative prepared my will.”
While almost any estate planning is better than none, many mistakes and problems occur when people try to prepare their own estate plan (including lawyers and judges who do not regularly practice in this area of law). Some persons compare it to “do it yourself” surgery (see our recent Report from Counsel article “Do It Yourself Will Leads to an Unfortunate Result”).
4. “I already signed a will (many years ago).”
Estate planning is a critical part of your overall financial and life planning. A wise person would not buy a stock or other investment and then completely ignore it for 20 years. In the same way, you should review your estate plan every few years and whenever there’s a significant change in your circumstances (you and your attorney may review your plan and realize it is still appropriate).
We encourage you to promptly complete and periodically review your estate planning documents with us or another estate planning attorney.
If you currently have a living trust, we suggest that you promptly follow through on re-titling assets into your trust (i.e., “funding” your trust). Failing to do so may result in additional expenditures of time, fees and costs upon disability or death and risks loss of privacy and litigation associated with probate court proceedings. Please contact us if you want to discuss preparing or revising a will and living trust and re-titling assets into your trust.