I HOPE YOU DIE.....

.....with appropriate estate planning in place!

Of course I wish all of my reader(s) lives a long and prosperous life. But the fact of the matter is this; that long and prosperous life will inevitably come to an end (Sorry!). When that occurs, something not only has to be done with you, but anything you have accumulated over that long and prosperous life. Hence this article. The following article will contain a few suggestions of how to make sure everything is the way it should be when your time comes.

First let me be honest; this a boring and depressing topic. Furthermore, this isn’t just something that affects the “seasoned” age group. Arguably, estate planning would be more important for those that have young families that need to be taken care of in the event of the bread winner’s death.

Take for example my friend Dr. Young. Dr. Young is a few years out of dental school, and happily Dr. Young’s wife, Mrs. Young, recently gave birth to the couple’s first child Junior. Until now, the couple has not done any estate planning, but as any parent will attest; the Youngs’ lives have drastically changed. Fortunately, in addition to their fee-only financial advisers, Dr. and Mrs. Young have enlisted the help of a competent estate planning attorney to help them straighten out their estate plan. The attorney suggests taking the following action as soon as possible:

Establish guardianship for Junior- If, unfortunately, both of Dr. and Mrs. Young were to die simultaneously, someone would have to care for Junior until he reached the age of majority. If no one were appointed, the court system would decide who that person would be. Establishing legal guardianship is crucial to determining who should care for a child should both parents die.

Establish living wills and medical power of attorney for both Dr. and Mrs. Young- Establishing a living will outlines Dr. and Mrs. Youngs’ wishes in the event that they sustain medical difficulties and outlines whether or not extreme measures should be taken to preserve life. Effectively, a living will says when the plug should be pulled. Similarly, a medical power of attorney will appoint someone (frequently the alternate spouse) the power to make medical decisions on behalf of someone who has become incapacitated.

Execute a Will or Living Trust for both Dr. and Mrs. Young – Executing a Will or Living Trust will allow for the disposition of a decedent’s property. Disposition of a decedent’s property to an intended recipient is fundamental to an effective estate plan. Frequently, a Living Trust can be more effective than a Will because it can transfer property outside of probate, while allowing the property owner to maintain control over the assets. It can also allow for a timing element to be attached to property disbursement, and, if set up properly, take advantage of available tax credits upon a Grantor’s death. Probate is a legal proceeding that occurs upon someone’s death; it is a court supervised process which is also open as a matter of PUBLIC RECORD. A trust on the other hand can transfer property to intended beneficiaries outside of the probate process. This keeps the transfer private and out of public eye.

In addition to completing a transfer in a private matter and taking advantage of some tax credits, a trust can also be designed to disperse property according to a time frame outlined by the grantor. This is especially important if minor children are involved.

Take, for example, if Dr. and Mrs. Young have established a living trust and funded it with a $50,000 bank account, the trust could stipulate that if both Dr. and Mrs. Young were to die before Junior reaches age 18, the trustee should pay 1/3 of the trust funds to Junior on his 18th birthday, 1/3 of the trust funds money on his 21st birthday, and 1/3 of the funds on his 30th birthday. This insures that Junior won’t get the full $50,000 sum at an age when he may make poor decisions (Its hard to pass a New Car Dealership when you are 18 and have the money)!


Make sure that insurance contracts, bank accounts, and retirement plans have appropriate beneficiary designations- It’s a good idea from time to time to review insurance policies, and other accounts that have beneficiary designations to make sure the current beneficiaries are appropriate. Beneficiary designations of insurance policies and financial accounts supersede the provisions of a Will or Trust. Frequently spouses are designated as beneficiaries, which is appropriate in most circumstances. However, in the unfortunate event of divorce, it is important that beneficiaries will be revisited to make sure that no property is still marked to go to a former spouse in the event of the owner’s death. As far as contingent beneficiaries, it is sometimes advisable to designate a Trust as a contingent beneficiary. This will allow property to pass to intended beneficiaries via trust provisions or trustee discretion.


The above discussion contains a few of the most important estate planning elements. If you find that you have been neglecting any estate issues, I encourage you to contact an estate attorney and ask them about appropriateness of executing the following:

· Guardianship (if you have minor children)
· Living Will (when to pull the plug)
· Medical Power of Attorney (who decides what medical care you should get if you can’t)
· Will or Trust (Who your property goes to and when)
· Beneficiary Designations (Primary and Contingent)


Please take a moment to consider what your current estate plan is and what it should be. I wish you all long, happy, and prosperous lives. As unpleasant as it may be, I encourage you to take a few moments to examine your current plan and assess how it would function and whether or not it takes care of those you would leave behind in the event of your untimely death.