This week I dealt with two separate estate planning issues that once again emphasized the importance of having an active estate plan before you’re facing tragic circumstances. I’ve taken several posts to stress the importance of pre-tragedy planning.
The first case dealt with an older gentlemen whose wife had recently deceased. This was a second marriage for each of them, and both had children from their prior marriages. The couple spent several wonderful years together, but that didn’t stop issues from developing.
Of course, neither spouse anticipated the other’s early departure, and therefore, any work to plan for future events, never occurred. On this particular day, we stood before an Oklahoma judge initiating the probate procedure. As is usually the case, I awkwardly explained to the gentleman and his step-daughter, what he should expect. The two explained that there were some sentimental items they wished to divide, and some more valuable pieces, the gentleman wished to sell.
There was some obvious distress on the step-daughter and gentleman’s faces as I explained that they would essentially share proceeds from any estate sales. Unfortunately, each party was ill-equipped to face the reality. I explained to the parties that wills or trusts are a simple way to relieve all post-mortem chaos.
The second case involved a disabled client whose mother passed away. Fortunately, the mother, anticipating her early departure, had created a will that devised (gave) all of her possessions and property to the client. Part of the transfer of property involved significant amounts of death benefits and real property (a home and automobile), which he accepted from the life insurance agency. Unfortunately for this client, because of the nature of the disability, the client requires extensive state-funded disability benefits. The client stands to jeopardize those benefits simply because the client accepted the money, rather than properly planning the transfer.
In each circumstance, both parties suffer because of their inadequate estate planning measures. As you see, merely having a will is not the same as proper estate planning. These clients are not unique. Everyday, thousands of people suffer the same consequences simply because they haven’t prepared. It’s extremely important to discuss all of your options with an attorney before the incident arises. Had these individuals discussed their situations with me, I could have discussed their needs, concerns, and options, and them advised them properly before they faced these discouraging scenarios. Quite simply, a few hundred dollars for a consultation is a valuable investment when you’re discussing estates worth thousands or millions.
As the end of the year approaches, it’s the perfect time to evaluate your estate plan. If you haven’t got that in order, then it’s important for you to contact our office, and schedule an appointment with an attorney to discuss your planning needs. If you’re "already set," then how about a special gift for a loved one. We offer simple will packages to complex estate plans, that can fit any holiday budget.
Don’t get caught off guard with inadequate preparations to protect your property and survivors.
