- “I’m not wealthy so I don’t have an estate”: Everyone has an estate. Estate planning is about what you own, not just what everything is worth. If you have a car, a house, a bank account, or anything, you have an estate. Estate planning encompasses how you plan for the distribution of your assets. Estate planning can be a simple will, or it can be complicated trusts.
- Pets. Legally, pets are your personal property. As with all property, you should plan for what will happen to them if you die. Obviously this takes on critical importance with pets, since so many pets end up in cages in shelters when their owners become incapacitated or when they die. Include instructions for the care of your pet in your will, or set up a pet trust.
- Designation of agents, naming of executors and trustees. Most clients do not want to “play favorites” with naming their children as agents to powers of attorney, executors in a will, trustees to a trust, so they want to name all three (or however many) children as “co-“ agents. Under some states’ laws, co-agents can act independently of each other without requiring signatures on everything of, say, all three children. This can still be a nightmare. Financial institutions prefer one person for their own liability reasons. Unless there’s an odd number to break a tie, disagreements can hamper efforts to care for an incapacitated parent or deal with estate matters. If all three signatures are required, this can be burdensome if all three children live in separate states. Choose one child—typically the closest geographically and most responsible financially—then list other children as successors. (Choosing a guardian for your children is crucial also. See this important post.)
- Buried or cremated? Where? Besides arguments over the distribution of belongings, the other main creator of arguments is decisions surrounding burial, cremation, and cemetery location. Be absolutely clear in your estate plan about what you want. Do you want buried? If yes, in what cemetery? Do you want cremated instead? If yes, do you want your ashes scattered (and where), or stored in an urn (and with whom)? Fights occur because of cemetery location first, since extended family want you in your hometown even if you’ve lived away for decades. Disposition of your body is the second cause of fights, in my experience. Some people are abhorrent to thinking of a loved one decomposing in a grave, or being reduced to ashes in an oven. Finally, if you choose cremation and want your ashes scattered, be sure your wishes are legal. The wish to “throw my ashes up in the air as you’re going down Space Mountain at Disney World” is not legal.
Contact me at email@example.com to discuss your will or trust, or planning for your pet.