https://www.renozahm.com/staff-profiles/jared-arthur-clay/&sa=D&source=editors&ust=1633640745385000&usg=AOvVaw3f6Y_8EEFHomdt7ExPDEJb
Don’t let the fancy name fool you.
An estate sale is just a whole-house yard sale. No need to wear a suit and tie and carry a numbered paddleboard for bids. Roll out of bed, waltz in, and plunk down a few bucks for a surfboard, a paperweight shaped like a chicken, and 17 musty books.
In the same vein, estate planning isn’t just for people with moated castles, a yacht for each ocean, large art collections, and pedigreed pets. It’s for everybody.
Unless, of course, you love stress and allowing the government to decide who will receive your hard-earned money, possessions, and property. Not likely!
Although there are dozens of reasons creating an estate plan is a worthwhile expense, here are the top three for your consideration:
- Probate. Without an estate plan, your property will need to go through “probate” before it can pass to your heirs. Probate is a court process in which your property is gathered up, valued, and used to pay off debts before being distributed to your heirs. Here’s a loose illustration: Picture your assets (your money, house, your stuffed animal collection, your antiques, your 60-inch TV, your muscle car—everything you can legally claim as your own) being grounded by Uncle Sam. He puts them in a corner and gets to boss them around. First, he wants paperwork—lots of paperwork. He wants to know everything that you own and how much it’s worth. He may require you to pay a hefty tax for your efforts. In the end, you have no say over where your property goes. Your relatives have to show up in court and pay for the entire process, including legal representation. They have no say. Probate is lengthy, expensive, and public.
- Sound Advice. Another phrase for sound advice is peace of mind. Estate planners know the ins and outs of planning for tax consequences, unique family issues, and your personal desires for your family and community. They marry the professional with the personal, so you experience the respect you deserve while benefiting from their wealth of knowledge. Having professionals by your side allows you to create a plan that respects your desires and values while minimizing your tax liability and reducing the load on your loved ones. Which brings us to number three.
- The Grief Process. The last thing grieving people want or need is to deal with the financial and legal hardships created when one does not have an estate plan. It will be hard enough to face the enormity of loss, much more so when adding in the complications of court appearances, document-gathering, and significant expenses. Estate planning lifts many practical burdens, so this is less a time of stress and more a time of tribute—honoring love and esteeming the impact of someone’s life.
Some people view estate planning in the same way they view poison ivy or visiting the dentist! Please consider another viewpoint: You’re not planning for something bad to happen, rather, you’re protecting the future of those you love. You’re taking control of all that’s yours, so it achieves the greatest impact, even beyond your life. You’re helping your family, friends, and community in tangible, final ways that will reverberate for decades to come. You’re living with intention. And that is, I believe, a worthwhile aim and a sound investment.
Jared Arthur Clay, Attorney at Reno & Zahm LLP