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Fedak Financial Planning

Do I Need Estate Planning?

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By Jay Fedak, CFP® | Fee-Only Financial Planner, New Milford, CT

Let’s look at some stark facts amongst all US based people over the age of 50:

-About 50% have a will

-About 45% have a health care proxy/POA and/or living will

-About 40% have any form of documents qualifying as an estate plan

-About 35% have assigned a durable POA in case of incapacity

Only 15-20% of all people have a guardian appointed for their minor children.

NOT GOOD NUMBERS!

So what’s the plan of those that don’t? Answer-There is no plan. I guess they are OK with whatever somebody else decides. Even if they don’t know them. How is that OK? The answer should be, IT’S NOT!

Ideally a will or basic estate plan should be mandatory, just like your tax return. There has to be SOMETHING in place. You can’t drive a vehicle without a license, you can’t vote without being registered, you can’t practice a trade without a professional license. How about: you can’t die without a will or estate plan? Sounds crazy right? I don’t think it is. If we require everyone who turns 50 to have some form of plan, even a simple will, this can solve so many problems that we see in the probate system.

When there is no will or estate plan:

-Every decision requires court approval

-Judges must apply default state statutes

-Hearings increase dramatically

Result:

-Probate cases take months or years longer

-Courts become backlogged

-Families wait unnecessarily to access now court/attorney depleted assets

Without clear instructions:

-More attorney involvement is required

-More filings, notices, and hearings occur

-Court-appointed administrators are often needed

Please, if you don’t want the courts to dictate the division of your assets or the fate of your minor children, consult an expert whether it be an attorney or a CFP professional who can also help direct or refer you depending on your situation. If you’re proactive it does not have to be expensive, but if you’re not it may turn out to be really expensive!

Disclosure:

This is not legal advice. Consult a qualified attorney for estate planning matters.