Is it possible that the light at the end of the tunnel was really just another oncoming train! Remember when they told us COVID would be over by Easter? That was the Spring of 2020. Here we are well into 2022 and the future of our culture, our daily lives because of this pandemic remains unclear.
In this time of uncertainty, many have considered Estate Planning as a prudent step to battle this uncertainty. The knowledge of “putting one’s affairs in order” can provide a sense of stability when all else is in chaos.
Actually, creating an Estate Plan is a selfless act. Think about it, you pay the attorney his or her fees while it will be your children or family who reap the benefit. You will not be around to see its implementation. If done correctly, what you purchase is peace of mind. Planning provides comfort that you are saving your family time and money by organizing your affairs, eliminating questions about your intent and choosing who will be in charge.
Without a Will, the State of North Carolina selects your Administrator and directs where you estate goes at your death. There is a risk that the local Clerk of Court may choose an expensive bank to handle your estate, or may be required to pass part of your estate to children or parents even when your spouse is still alive. Think of it, your spouse having to share your bank account with their mother-in-law!
Online, discount Wills or planning documents are limited in the goals they achieve. It is possible to create more problems than you solve. I would venture that most people’s goals do not include creating a problem that will obligate your family to hire a lawyer to unravel the technical problems created by a well-meaning internet tool. Are all “internet wills” flawed? Of course not, but how can you find the one among hundreds that appropriately handles your estate? If you knew now that a $1,000.00 investment would purchase a $10,000.00 cost savings to the family you leave behind, you would consider that a wise investment. Of course every family has its unique aspects, and the numbers are never the same, which is why the “one size fits all” internet Will is risky.
My experience is when a client tells me their estate is “simple”, what they are really telling me is “I do not want to spend money on this.” Yes, some estates are simple, but families are usually complicated. Once you add a son-in-law, daughter-in-law, or grandchildren into the mix, the potential for disagreement, strife and misunderstandings quickly multiples. The loss of a loved one is emotional. A thoughtfully crafted Will allows you to express your intent and resolve disputes now, before the emotions are high.
Often my initial conversation with a client about family or estate goals leads to specific “options” that they have not considered and would have missed without walking through the “planning” process with a professional. Would you give your grandchild $100,000 at age eighteen (18) or are funds to be saved for college or medical needs? Who will file your final tax return and claim your refund or make sure that the IRS does not take more than they should.
Also estate planning attorneys often do more than craft a Will. Planning by selecting your health care and financial advocate can avoid costly court proceedings and delays by appointing now your choice to handle medical or final decisions if you are unable to do it yourself. An attorney qualified in tax law can even help reduce costly Federal and State death taxes. I am sure you hear on the news how our tax law changes with each new Congress or administration. Planning can assure your life insurance is used to pay for college bills or mortgage costs and not lost to large tax bills. You may not have a child with special needs, or a rental property at the coast that you want to keep in the family, but you may want your life insurance to help pay for a child’s college, or make sure your surviving spouse does not have to sell the house to give in-laws their required share of your estate.
Part of the process often is a review of the benefits of a Living Will or a “Health Care Power of Attorney.” Planning begins well before your death with these advanced planning tools. Advanced estate planning is an opportunity to leave a thoughtful structure to reduce anxiety, cut costs down and avoid family conflict.
In the end, it is always comforting to leave a planned legacy for your family. We all want to be remembered for our compassion and thoughtfulness and not for the “mess” we left behind. It is your last chance to make a decision that will benefit your loved ones. Find a local attorney who specializes in Wills and Trusts and request a free initial consultation. Light will come in the morning, and it does not have to be an oncoming train.