Having an estate plan in place is absolutely essential for EVERYONE! Yes, everyone.
The Young Parent
Young adults often have the misconception that only the elderly need a Will or Trust, but that is simply not the case. Young parents, think about this: what happens if you get in a bad car accident, suffer a stroke, or have cancer? What happens to your kids? Who will take care of them? Will they be able to collect your insurance money as minors? Without a plan, the answer will always require court involvement. Going through the court system is not only more time consuming, but it costs significantly more than a plan, and at a time when the family needs it most--because you aren't there.
Everyone
I have talked with plenty of baby boomers who say, "well, I don't have anything anyway" or "my kids can figure it out after I'm gone" or something similar. Or, many think that buying a do-it-yourself plan or hiring an online company will work fine. While these options might seem like good ideas now (lower cost, easier, no need to find a lawyer, etc.), the long term can have hazardous effects.
In fact, it actually provides good job insurance for attorneys when people use do-it-yourself planning or online companies, because it inevitably leads to probate litigation (which by the way, avoiding it was the whole point of trying to create a plan in advance!).
Why hiring a lawyer is worth it
Most people don't realize that probate is a court process whereby property of the deceased is transferred to the heirs. However, many heirs feel they are entitled to certain property from the decedent, even when they may be wrong, but they are still willing to fight for it. This creates a fight where multiple attorneys will be hired, costing everyone tremendous amounts of money. I have had cases this year where over $20,000/case was paid to lawyers because the siblings fought over property and money. What's worse, they often end up hating each other, and that animosity will probably last for generations. Families are ripped apart because advance planning wasn't done, or wasn't done properly. Trying to save a few dollars to do planning has cost families more than they know.
Maybe before buying that big TV or that smartphone as soon as it comes out, you should take that money and use it to secure not only your future, but your children's as well.
Everyone should have 4 documents:
1. Trust
2. Will
3. Durable Power of Attorney
4. Healthcare Directive
If you don't know what these documents are, or why you need all 4, please click here to visit my website on the topic, or call me at (435) 634-8854
Rob Gurr
Attorney at Gurr Law, PLLC
