Most people think of meeting with a lawyer and making legal documents when I say the words "estate planning." Usually, these papers include a will, a power of attorney that lasts, a health care proxy, and maybe even a trust. After you write these documents, you all get together to sign them. Then, you put them somewhere "safe," write a check to the lawyer, and let out a sigh of relief because everything is now taken care of. Everything is fine and your estate is in order, right? WRONG!
Too often, people mistake writing legal documents for making an estate plan. Legal documents are a part of an estate plan, but they are not "the" estate plan. You should make sure that everything is in one place. If you don't, you could get into a lot of trouble. Because of this, 98 percent of estate plans fail. Because of this, messes like the Terry Schiavo case and the Ted Williams dispute happen. You need a plan to make sure that these kinds of things don't happen to you. Most people think ahead about what should happen if they die. What if you are sick or have a mental illness? Effective estate plans must be written to take these kinds of things into account.
If you want your estate plan to work, you must answer four very important questions:
- What kinds of paperwork do I need?
You need a will, a power of attorney that lasts for a long time, and a health care proxy. You also need the original copy of your marriage certificate, your military discharge papers, information about your health and life insurance, beneficiary designation forms, deeds, and appraisals. You also need a list of important people you need to contact and their phone numbers.
- How will these papers get to the people I'm leaving them to?
We all have our own unique way of filing that has served us well over the years. That's alright. You should use whatever works best for you as a filing system. But you do need to come up with a way to "unlock" your own filing system. For example, if you died, how would your loved ones even know you had a safety deposit box, let alone where it was or how to get the key?
- Who should be able to see these papers, and when?
I know that's really two questions put together to look like one. Remember that these are private and secret documents. Today, we all know that identity theft is a very real danger. You can protect your privacy while still making a good estate plan by keeping these documents safe and giving them to a small group of people only under certain circumstances.
- Who will give my heirs the best advice?
Your estate plan needs to include not only your financial assets, but also your dreams, wishes, and values. You need to choose that one person who knows all of these things about you and with whom you have shared your deepest thoughts. Who should you call when you or your beneficiaries need help?
Don't think that planning your estate means just writing up the necessary papers or buying an insurance policy or other investment product. You can only make a good estate plan if you have given it a lot of thought and come up with a way to protect your most important information and guide your heirs. Only then will you know you've done your best for your loved ones and that nothing important will be forgotten.
###
For a review copy of the book or to set up an interview with Mark H. Kaizerman for a story, please contact Jay Wilke at 727-443-7115, ext. 223 or [email protected].
