August 14, 2020 in Estate Planning
Have you thought about putting a will in place and either found yourself saying “I’ll get to that one of these days” or “I don’t know where to start”? You’re not alone. According to a recent study by Merrill Lynch, about half of Americans over age 55 do not have a will. This isn’t an attention-grabber until celebrities such as Prince, Aretha Franklin or Kurt Cobain passes away without a will. The reality is that failing to prepare an estate plan can have devastating consequences for any family.
Years ago, a person could handwrite their own will without consulting an attorney, and that will was honored. With the continuing evolution of taxes and financial tools, Estate Planning is no longer the “D-I-Y project” it used to be. If a will or trust is drafted incorrectly, the consequences for your heirs can be disastrous and can create lasting problems.
Below are three reasons to help you better understand why Estate Planning is a job best left to an attorney while you tackle your household D-I-Y projects.
The Top Three Reasons to Consult an Estate Planning Attorney for Your Will
A lot of people believe that they do not need more than a simple will, or any will at all, unless they have the estate of a famous rockstar. They may even try to save time and money by buying a template for a will or buying their will online.
In my experience, most of the time these individuals usually undervalue the size of their estate, or their wishes are often more complicated than they realize.
Three of the most important reasons to consult with an attorney for your Estate Planning needs and goals are:
- Simple solutions are not always the result of a simple plan.
- Attorneys offer an unbiased, objective voice to ask personal, potentially difficult questions.
- An Estate Planning attorney can help you think of things you might not think of.
Scenario for reason #2 listed above: An Estate Planning Attorney Will Ask Tough, Unbiased Questions
Jennifer and her husband wanted to set up a trust that would provide income to their adult child, solely through investments in that trust. They were concerned their daughter would spend the principal funds too quickly and foolishly, and not have any money left to help her as she got older.
On the surface, this sounded like a good idea – but an Estate Planning attorney asked questions about their goals for this inheritance and the couple discovered some shortfalls in their plan, including:
- Changing Interest Rates
Their daughter’s inheritance was expected to be around $250,000. If the interest income is 4%, or $10,000 per year, it seems to be a reasonable amount. But what if an economic boom (or recession) caused today’s interest rates to change?
- Unpredictable Life Circumstances
In the future, their daughter could lose her job or face a sudden medical crisis. The way the inheritance was structured, she could not access any part of the principal, even if she needed it to pay her mortgage or medical bills.
The clients were so focused on the prospect of their daughter purchasing a sports car and a boat, they had not considered other realistic life events – and realized their trust needed to reflect some important changes.
Prepare Your Estate Plan with Kimbrell Estate Planning
You have worked hard your entire life to provide for your loved ones – and you can continue this long after you are gone with a properly structured estate plan. Whether a will, trust or other estate planning tool, I enjoy partnering with my clients to understand their unique situations and objectives to come up with the right solution for them. Providing clients the peace of mind that comes with the estate planning process is why I do what I do.
Contact me to schedule your complimentary consultation. I offer both in-person and virtual consultation options – whatever works best for you.
I look forward to talking with you soon!
Jessica Kimbrell