Estate Planning

The Top Six Reasons People Do Not Do Estate Planning

By Myrna Arroyo

This is the list you never expected an estate planning attorney to write.  I got the idea from my friend Bill Losey, check out his website at www.myretirementsuccess.com.

Reason #6 - “I’m too busy”

This is the most common excuse.  People say they care about their family’s future, but they put off planning.  The schedule and re-schedule, and end up not doing anything at all.  The biggest threat to your family’s wealth is not a lawsuit, a creditor or the IRS, it is procrastination.  Start planning your estate today.

Reason #5 - “I’m too young”

It is foolish to wait to plan your estate until you get older.  In fact, there are many estate planning strategies (such as those involving the use of life insurance) that are cheaper and easier to implement the younger you are.  As you age, you could develop health problems that could limit your planning options, as well as your capacity to plan.  No age is too young to take care of this important matter.

Reason #4 - “I just want my kids to get everything so why bother”

Many people will say that since they want everything to go to their kids, that they are fine under Louisiana’s laws of intestacy.  However, planning  proactively can allow you to dictate who will manage the estate, to give that person independent authority (which saves lots of hassles and legal fees), and to give your children the gift of asset protection through use of certain types of trusts.  If you are married, you can determine how much access you want your surviving spouse to have to your estate after you are gone.

Reason #3- “I don’t have a lot of money so I don’t need to plan”

First, you may have more than you think.  Remember that retirement plan accounts and life insurance are included in your estate for estate tax purposes.  But more importantly, keep in mind estate planning isn’t just about the money.  Couples with young children, even those with modest estates, need to plan for their children’s welfare should something happen to them.  A will with a simple testamentary trust can give you peace of mind of knowing your children will be provided for financially.  You can also use your will to nominate your guardian of choice, rather than leaving it up to the courts to decide.

Reason #2 - “I can’t afford it”

A customized estate plan can require an investment of anywhere between $500 and $7,500, depending on how complex your estate is.  However, most attorneys will allow you to pay in monthly installments, and in the bigger scheme of things, it is an investment that can save you thousands in legal fees, estate taxes, and mental stress for your heirs.

Reason #1 - “I don’t want to think about it”

Discussing and planning for your death or incapacity can be unappealing, and I understand that.  But, if you take action and put your plan in place, you can rest easy knowing your family is taken care of, and you won’t have to think about it again for a long time. 

Are you putting off your estate plan for one of these reasons?  Consider the impact your lack of action will have on those you leave behind.  Proper Estate Planning gives you the ability to leave a legacy for your children and grandchildren.  It protects your hard earned wealth from unnecessary taxes and legal fees, and it makes things easier for your surviving spouse and children if your wishes are set forth ahead of time.  Our firm is here to help.  You are welcome to call us at (225) 298-0011 to find out how to get started.

Full post as published by Louisiana Estate Planning on March 27, 2008 (boomark / email).