Over the next few weeks – barring any more outrageous economic events – I would like to talk about various Life Planning Issues tied to estate planning. Remember, Life Planning is centered on the questions that you don’t know to ask that need to be asked and answered. A fairly common mistake I see is the assumption that estate planning questions can only be answered by an attorney. The truth is that while determining what you truly want for your family, charities, business, etc is relatively simple; implementing an estate plan can be extremely complex. It takes a team of experts that specialize in many different areas such as law, insurance, trust planning, investments, taxes etc., to bring your plan together. I like to relate estate planning to a football team. You are the owner of the team. Each team member has his/her own unique ability or specialty, and the quarterback guides the team. So, who is your quarterback? Ideally, it is a Life Consultant who understands you and your unique situation, one who isn’t afraid to ask what I call the “devil’s advocate” questions.

For instance:
You die in a car wreck and your spouse remarries. Is it okay if his/her new spouse lives in your home?
Then, your spouse dies three years later. Is it okay if his/her newly widowed spouse remains living in your home?
Then, the newly widowed spouse remarries. Is it okay if they both live in you home?

Think this won’t happen to you? Think again. I would like to share a true story with you about a young woman, “Jane”, who was a victim of failing to plan:

A few years after her father passed away, Jane’s mother remarried and the new couple remained in her mother’s home. After a time, her mother passed on as well. Following her mom’s passing, Jane visited her stepfather, who was still living in her mother’s home, to get her parents’ wedding rings. The stepfather refused to give Jane anything that belonged to her parents. He insisted that if she wanted anything, she would have to buy it. Jane did not have any money and would not have been able to retrieve anything from the home had it not been for her brother, who did in fact have to pay for the items they wanted.

Do you think Mom ever wished for her daughter to have to purchase their wedding rings? Of course not!

Think about it. What is important to you? Have a serious discussion with your spouse and your children. Better yet, include your Life Consultant in the conversation. What other questions do you need to be addressing?

Throughout the coming weeks, we will be discussing business succession planning, family succession planning, legal documents, gifting, titling of assets, executor and trustee issues and charitable gifting. Like retirement, most of us only die once and that means we only get one chance to do it right. And I have always said that we might not have lived your Life, but we have lived it through the lives of our clients and their various experiences – sort of like an older brother who has been there and done that. The disclosure of estate planning is, “Do not attempt this alone!”