When is the best time to create an estate plan?
From its inception in 1908, the Boy Scouts have lived by a two-word motto, “Be Prepared.”
The direction that you can go with this is both singular and diverse. Being Prepared, in general terms, means that you are ready for life’s obstacles, circumstances, or events – whether expected or not. Being Prepared for specific events can mean a million different things to as many different people. In the area of estate planning, being prepared means that you are prepared for one of life’s only certainties – death.
Death may be certain, but the timing is not.
Perhaps one of the biggest obstacles estate planning attorneys face is convincing young, healthy, prime-of-life clients that estate planning is important. The main reason for this dilemma is that young, healthy people to one extent or another have not come to fully comprehend their own mortality. When I was still invincible I was playing in a men’s hockey league. Our goalie was . . . less than experienced . . . and as a result an extra burden was felt by our defensive players (of which I was one). On one fateful shift an opposing player was at the face-off dot about to score. Enter the hero. Skating toward the corner at full speed I dove in front of the shot (not recommended). I slid shoulder first into the boards. When I stood up, I thought my right arm was going to fall off. But, being a real tough-guy (i.e. invincible), I still went out for another shift. It wasn’t until I actually tried shooting the puck that I realized the extent of my injury. Instead of a quick wrist shot that sent the puck into the upper corner of the net, I dribbled off a weak shot that barely reached the skate of the defender in front of me. The searing pain sent me stumbling to the bench. Although not dislocated, my shoulder was separated. I was 26, and for the first time in nearly 20 years of playing hockey, I suffered an injury that took me out of the game. I was mortal. I could be hurt.
Later that year – in a manner substantially less cool (distracted by a cell phone) – I rolled my car in the middle of the interstate during rush hour traffic. Fortunately I walked away from that one.
The point being, we are all mortal, and we are all involved in incidents and accidents that remind us of our mortality and that life is fragile.
If we are unprepared for that eventuality, it is possible – and likely – that your estate, be it worth $2.00 or $2 million, or $200 million will fall entirely under the control of the State in which you died or where your property is located.
When we are young we typically don’t have a sizeable financial estate. However, what many of us do have (or will have, or hope to have) are children. And our children’s fate could just as easily be left for the State to decide if we fail to make preparations and designate a guardian. Do we really want “Judge Wapner” – who doesn’t know us or our family from anyone else – determining who the best person to take care of our children is? Most of us would say no.
My son recently went on a Boy Scout campout. He did not pack a tent. In Arizona, it’s usually not critical to have a tent to ensure staying dry in the night. Camping under the stars is actually quite common here. However, he learned the hard way that having a tent and not needing one, is a whole lot better than needing a tent and not having one. It rained all night. Sandwiched between two tarps; trying to use them as a type of water-proof blanket, he and two other Scouts huddled together while it rained most of the night. With no way to keep himself or his equipment dry, he had a miserable time.
He went on another campout last weekend. He was so excited because he was determined to be prepared. He packed every item on the list given to him by his Scoutmaster – right down to the disinfectant wipes. The outing involved a six-mile hike to their overnight campsite. His pack was heavy and it took work to get up the mountain to the campsite. But when the time came, he had everything he needed both for his safety . . . and comfort. The work paid off. The effort came to its intended fruition.
He was prepared!
Just like with my son, being prepared does take more work. It will take more effort. But the peace that comes from having taken the time and endured the expense will far outweigh the cost of failed or inadequate preparations.
To answer the question in the title: the time to think about estate planning is now. You don’t have to solve the world hunger problem with your estate plan. But ensuring you have what you need is critical to ensuring that when you get to your final “campsite,” you are not left with a “tarp” when a “tent” was most needed.
(I will discuss what estate planning vehicles may be most appropriate at different stages of life in my next post).
DISCLAIMER:
This website should only be used for informational purposes. It does not constitute legal advice, and it does not create an attorney-client relationship with anyone. If you need legal advice, please consult an attorney in your community.
From its inception in 1908, the Boy Scouts have lived by a two-word motto, “Be Prepared.”
The direction that you can go with this is both singular and diverse. Being Prepared, in general terms, means that you are ready for life’s obstacles, circumstances, or events – whether expected or not. Being Prepared for specific events can mean a million different things to as many different people. In the area of estate planning, being prepared means that you are prepared for one of life’s only certainties – death.
Death may be certain, but the timing is not.
Perhaps one of the biggest obstacles estate planning attorneys face is convincing young, healthy, prime-of-life clients that estate planning is important. The main reason for this dilemma is that young, healthy people to one extent or another have not come to fully comprehend their own mortality. When I was still invincible I was playing in a men’s hockey league. Our goalie was . . . less than experienced . . . and as a result an extra burden was felt by our defensive players (of which I was one). On one fateful shift an opposing player was at the face-off dot about to score. Enter the hero. Skating toward the corner at full speed I dove in front of the shot (not recommended). I slid shoulder first into the boards. When I stood up, I thought my right arm was going to fall off. But, being a real tough-guy (i.e. invincible), I still went out for another shift. It wasn’t until I actually tried shooting the puck that I realized the extent of my injury. Instead of a quick wrist shot that sent the puck into the upper corner of the net, I dribbled off a weak shot that barely reached the skate of the defender in front of me. The searing pain sent me stumbling to the bench. Although not dislocated, my shoulder was separated. I was 26, and for the first time in nearly 20 years of playing hockey, I suffered an injury that took me out of the game. I was mortal. I could be hurt.
Later that year – in a manner substantially less cool (distracted by a cell phone) – I rolled my car in the middle of the interstate during rush hour traffic. Fortunately I walked away from that one.
The point being, we are all mortal, and we are all involved in incidents and accidents that remind us of our mortality and that life is fragile.
If we are unprepared for that eventuality, it is possible – and likely – that your estate, be it worth $2.00 or $2 million, or $200 million will fall entirely under the control of the State in which you died or where your property is located.
When we are young we typically don’t have a sizeable financial estate. However, what many of us do have (or will have, or hope to have) are children. And our children’s fate could just as easily be left for the State to decide if we fail to make preparations and designate a guardian. Do we really want “Judge Wapner” – who doesn’t know us or our family from anyone else – determining who the best person to take care of our children is? Most of us would say no.
My son recently went on a Boy Scout campout. He did not pack a tent. In Arizona, it’s usually not critical to have a tent to ensure staying dry in the night. Camping under the stars is actually quite common here. However, he learned the hard way that having a tent and not needing one, is a whole lot better than needing a tent and not having one. It rained all night. Sandwiched between two tarps; trying to use them as a type of water-proof blanket, he and two other Scouts huddled together while it rained most of the night. With no way to keep himself or his equipment dry, he had a miserable time.
He went on another campout last weekend. He was so excited because he was determined to be prepared. He packed every item on the list given to him by his Scoutmaster – right down to the disinfectant wipes. The outing involved a six-mile hike to their overnight campsite. His pack was heavy and it took work to get up the mountain to the campsite. But when the time came, he had everything he needed both for his safety . . . and comfort. The work paid off. The effort came to its intended fruition.
He was prepared!
Just like with my son, being prepared does take more work. It will take more effort. But the peace that comes from having taken the time and endured the expense will far outweigh the cost of failed or inadequate preparations.
To answer the question in the title: the time to think about estate planning is now. You don’t have to solve the world hunger problem with your estate plan. But ensuring you have what you need is critical to ensuring that when you get to your final “campsite,” you are not left with a “tarp” when a “tent” was most needed.
(I will discuss what estate planning vehicles may be most appropriate at different stages of life in my next post).
DISCLAIMER:
This website should only be used for informational purposes. It does not constitute legal advice, and it does not create an attorney-client relationship with anyone. If you need legal advice, please consult an attorney in your community.
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