Estate Planning is not on any individual’s or couple’s list for date night or fun activities. And yet planning your estate is crucial to your life, no matter what your age or financial status. At Principal Law, we believe the process of estate planning is like creating a love letter to the family and friends you will leave behind when you die.
Wills and Estate Planning to Protect our Family
The ‘Madness’ in the title of this blog refers to the insanity of not leaving a will and detailed plans in place. Neglecting to plan for closing the final “Circle of Life” is a little mad or insane. Yet, the typical Mini-cases below represent clients who arrived at lawyer’s offices without solid plans for their families.
(Please note, these mini-cases are stories of fictitious characters. They are stories designed to make our lessons in law more palatable, memorable and interesting.
Today’s, fictitious characters are symbolic of many typical clients in need of creating their Will as well as financial planning for final arrangements.
Where There’s a Will, There’s a Way…With Estate Planning
A Special Note…In this article, we feature many quotes from a recent article written by Shivon Patel, founder of Principal Law and entitled “Where There’s A Will…”
“Estate Planning Case #1: Emma and Jason
Outdoor Exercise and Fun Can Keep You Healthy.
Emma and Jason lead a physically fit lifestyle. They go jogging and hiking together and they cook healthy foods for each other. They have solid jobs as entry level executives. At ages 27 and 29, they never even thought about a will. They just stopped by Principal Law to pick up some real estate papers for Jason’s mother. But, that “visit made them start to think…”
Attorney Shivon Patel might address them and their situation the way she wrote. “So you’re young and healthy. Your stock portfolio isn’t exactly bulging. No need to create a comprehensive estate plan, right?
“Wrong! If you pass away without having prepared for the future, your hard-earned assets and personal belongings will most likely be distributed according to the law. This may not be according to your wishes.” Then she would show them many options. “There are several routes to take.”
A Few Notes for Emma and Jason:
Like many busy young couples, Emma and Jason did not even know the meaning of Estate Planning.
1. At Principal Law we begin with the basics. We demystify estate planning. Estate planning is simply the collection of preparation tasks that serve to manage an individual’s asset base.
2. This is done in anticipation of their incapacitation or death.
3. And it includes the giving (or “Bequest”) of personal property or money such as stocks, bonds, jewelry and cash left to an individual or organization.
4. Most estate plans are set up with the help of an attorney experienced in estate law. And we must add that there are individualized laws that differ in every state. Florida Law is our guide here at Principal Law in Sanford, Florida.
According to Florida law, “Depending on your wishes and the size of your estate, your will in Florida could be a single page or a lengthy, complex document. Plus a trust can either be created during a person’s lifetime or after death, by a will. You can also declare your wishes regarding life-prolonging medical procedures in Florida, among other things.
Such are the issues Emma and Jason will face first as they create their first will.
“At the very least, they should have a last will and testament drafted. By not doing so, a court could decide that your spouse will receive less than he or she deserves.” Or your “assets could go to family members you aren’t close to.”
Estate Planning Case #2: Lisa, Ashton and the Kids
Protecting our Family is What It’s All About.
Lisa and Jake Simon are a couple in their early thirties. They have two young children, Laura who is 9 and her older brother, Mike who is 7. Jake’s younger cousin recently died in a tragic automobile accident, reminding them of their own mortality.
So, Jake and Lisa have started worrying. “What would happen to our kids if something happened to us? Who would take care of Laura and Mike? How can we be sure that our money and our ideals could continue for them after we are gone?”
Shivon wrote, “Depending on your specific needs, you may want to create a revocable trust.” (See a few comments on this in our previous blog )
A Few Notes for Lisa, Jake and the Kids:
And Shivon adds, “It is difficult to think about your kids losing their parents, but it is a grim possibility.” Again, Shivon wrote, as if to address Lisa and Jake, “If you have minor children, a will is crucial to ensure your children are taken care of and provided for. For example, it will give you the right to appoint legal guardians for your minor children. This means you “can choose who will raise them.”
Once again, please let us remind you that Principal Law approaches estate planning with human compassion and legal precision.
An Estate Planning Caution for Expressly for Parents
“No one likes to plan for the possibility of death, but if you pass away without a will, your family might end up going through a messy court process that you want to avoid at all costs.”
Additionally, she adds a special caution for parents of young children. “As a young parent, you may decide to name your parents as your children’s guardians. While it a natural choice, I always advise my clients to name at least one backup guardian who is younger.” This is “just in case the grandparents are unable to properly care for your children.” She explains a few ground rules:
1. “You should speak to the guardians you plan to appoint so it is not a surprise to them after you pass away.”
2. The guardian should “not only be comfortable with his or her responsibilities but should fully understand what you want for your children.”
A Few More Think Points on Estate Planning for You and Your Family
Legally speaking, Your Last Will and Testament is defined under Florida law as “a legally binding document that identifies who should inherit a person’s property after they die. Recipients often include a spouse, children, grandchildren or a charitable organization. Many Wills also contain a provision that names a guardian to care for minor children. A person that makes a will is called a testator.”
Shivon’s Reminders about A Last Will and Testament
Sooner is Always Better than Later when It Comes to Last Wills and Estate Planning. Principal Law Can Make Planning Simple.
Shivon tells all her clients that a will also allows you express when and how your beneficiaries will inherit from your estate. She explains:
1. “Your life insurance policy may state you want the proceeds to be distributed equally among your children.”
2. “But there is more to worry about than splitting and passing out cash.
3. “With a will, you can explicitly state that you want your children to inherit the money at certain ages.”
But still, you want to be sure that their needs until that time, are guaranteed. And by needs, we mean such items as “healthcare, education, and support.”
Your Estate Plan and Last Will and Testament can bring comfort to your family and loved ones. It can help you find the meaning of your “Circle of Life.” For more information on Wills and Trusts, please begin some research on our easy-to-read page questions page.
Thank you for reading the blog at Principal Law. For the next few weeks, we are going to continue to explain some must-have, down-to-earth, practical information about estate planning, wills and trusts.
Please return soon. We will examine another mini case-study and more legal terms-made-easy. Find out the sweet secret of the revocable trust. And as you follow the blog during the next few weeks, you will understand why neglecting to make such final plans would be madness.
