Senior Succession / Estate Planning

One of the most important pieces of the financial planning puzzle is the understanding of succession. You don’t have to be wealthy to have a great succession plan in place to give yourself that comfort and peace of mind of knowing that your affairs are not only in order for your own life; but also for those that you will leave behind when the inevitable happens. Your decisions now could have a MAJOR impact in many ways for those that you love.  This is why we feel that it is SO important to discuss the subject of death and dying. It doesn’t have to be hard and shouldn’t be something that is ignored. As advisors; we see the red flags that cause people heartache every day and it is our job to deal with these issues to give you and your family the peace of mind that you deserve!  Therefore we must talk about the ways that you are lied to and given bad advice. One of those areas is not believing the garbage about “getting your will done.” So, let’s discuss that, shall we?

A Last Will and Testament is just that…a will…..a wish list. It is NOT the end all to ANYTHING to do with your final wishes. It is a wish list, at best. A JUDGE will decide whether or not property is distributed according to your wish list or if the court will abandon your wishes altogether and do whatever the hell they want to do with the decedent’s property. Also, keep in mind that in almost all states, a decedent’s property passes without incident to the surviving spouse, regardless of an individual “will,” until the second party to the marriage also passes, creating an estate, which, by law, must go through a process called probate. 

Probate is required in most states WITH OR WITHOUT A WILL. If there is no will, the decedent is said to have passed away “intestate.” This allegedly requires probate for any estate with a total value of over 50k in most states. Though the dollar amount is less important than the circumstances surrounding the individual case and any contest that may be presented. If a person has a “wish list;” it must be validated in a court of law and deemed fit to be used as a “guideline” for the distribution of assets to whomever the court decides are rightful heirs. If any individual shall dispute the “wishes” of the decedent; it is incumbent only upon the designated judge of the probate court of that jurisdiction to determine the distribution of said assets to heirs. So, with or without a will; the probate process is usually required upon second to die. 

The process of probate is usually arduous and very expensive. It has been my experience that the court will keep the estate tied up (usually without honorably justifiable cause) until such time as the attorneys have put approximately 20-35% of the probatable assets into their own slimy and greedy pockets by delaying hearings, et al., to justify continued and exorbitant fees to the heirs. Almost never is the probate process quick and painless. 

People have been misled to believe that being named as the “executor” of a will is a high honor. Au, contraire. It is the most heinous obligation that any person may cast upon the recipient of said title. With this title comes MASSIVE responsibility to give regular accountings to a court system which should not have their big nose in your personal business to begin with! It is also the duty and obligation of the executor to file final taxes and pay or settle with creditors. Who the hell wants that burden? Then, remember….you have to go back before and give an accounting to, the likely “god-complexed” judge peering down over you as if he reigns supreme over you and your family. Oh, wait…he/she does! 

One should also be aware that since it goes through the court process; every detail is now a matter of public record…..truly putting ALL of your family business out on Main Street for the whole world to see. That’s right. ANYONE can go to the courthouse and demand to see the public records regarding your family estate and they will know instantly who got what; how much and the method of distribution. It is ALL public record! Is this how you think that financial advisors should be guiding their clients in their overall plan? 

Next, a faux pas article that I recently read, said that wills are the only way to ensure proper guardianship. This is SIMPLY NOT TRUE! Again, it doesn’t ensure anything. It gives the judge a wish list. THAT IS ALL! Guardianship can be handled through a variety of other lawful means and you certainly don’t need a will to do it and make it public. 

All in all, I will end this with the same sentiment with which I started. A “Last Will and Testament” is quite possibly the absolute WORST legal document to which you can EVER attach your signature. 

A properly written and properly funded TRUST (there are many varieties) is the antithesis to the horrendous
will. With a TRUST: 

Succession is PRIVATE. Succession can be made INCONTESTABLE. Succession AVOIDS probate. Succession eliminates the “executor” nightmare. Succession is clean without the extremely expensive cost of courts and judges and lawyers whittling away at your estate. Succession does not become public in any manner. And a properly written trust will ALWAYS have guardianship documents included when necessary. Succession happens IMMEDIATELY upon death of the final owner of the Trust. The Trust can live up to TWENTY-ONE YEARS beyond the death of the owner to ensure that ALL directives are properly executed. Once the last directive has been satisfied, the Trust dies. 

It is, therefore, highly advisable that all of our clients have a conversation with your assigned or chosen advisor to discuss if a trust is the right planning tool for you and your family.

We have seen, and you have also probably had some exposure to, wills take years to settle. Again, with a trust, which is accurately written and PROPERLY FUNDED; the process can take days and be finished without the court systems being involved in your private affairs. 

Doesn’t it make more sense to take care of your own affairs NOW, rather than leave your desires up to the attitude and demeanor of a public servant? Contact us today to discuss how to get control and have peace in your life for you and your loved ones!