estate planning

Anyone who has ever lost a loved one knows that laying someone to rest can often be a complicated process. On top of grief that naturally goes along with losing someone, there are plans to make, belongings to sort through, and details to finalize, not least of which are financial. The process is that much more arduous when the deceased did not plan their estate.

Estate planning is not just for the wealthy, who have large sums of money waiting for their families. Contrary to popular belief, nearly everyone has an estate. An estate is comprised of everything  you own when you die, from personal belongings to real estate, to bank accounts.  When the wishes of the deceased are not spelled out in black and white in a will, things can get divided up in the standard way as defined by law – which is often not what is necessarily desired.

If the deceased had minor children in their custody, having a will is imperative to secure their placement with the desired guardians. It is easy to assume grandparents or some other relative might step up to the plate in a position of loss, but that is not always the case. The Court may step in and make the decision to place the minor child with a family member that it sees as most fit.

In terms of financial accounts, jointly held accounts are more cut and dry. When one party dies, the other party becomes the sole owner. But what about accounts held in one party’s name alone? Depending on the state of residence and the laws therein, one party may only get half and the other half goes to the children. While this might seem like a reasonable division, the other half could go to the children even if they are minors, with the funds held in trust until they reach adulthood. This may or may not be ideal.

Some of these situations might not be worst case scenario, but the common theme within them is the fact that important decisions are being made without consulting the deceased.

In life, we are vigilant about caring for our loved ones, making sure our children are provided for. We may research schools for our children, looking for the absolute best education possible for them to have a good start in life. We may plan our meals to be healthy, low in cholesterol, avoiding trans fats, because we want our partner to be well taken care of and living their best life. Why do we stop short there? Estate planning is a way of making sure the ones closest to us are well taken care of, even in our absence.