Estate planning has a lot in common with travel planning. For many, a successful vacation is achieved through full itineraries – excursions, tours, dinner cruises, painting with dolphins (real thing), concerts, hot air ballooning, bike rides through Death Valley, museums, hiking through the Heart of Borneo, following sherpas to Everest base camp, and other assorted adventures …
The more experiences, the better. Down time equals boredom and waste under this paradigm.
For another segment of the population, vacation means rest and flexibility. The stresses of work and daily life need to be set aside through unhurried contemplation and relaxation. Lying on a beach, reading in front of a fire, and avoiding touristy activities define this alternate vacation concept.
I am not saying one style is preferable to another. If you glean anything from my tone in this paragraph, I will disavow it… strongly disavow. The truth is, if two people in a relationship share a vacationing style, then a good time should be expected. However, imagine these two have opposing vacationing styles, and press an ear on their hotel door.
Knowing yourself and your situation determines your estate planning comfort zone. For those individuals interested in peak organization and preparedness, Living Trusts provide the best infrastructure. Property and assets can fund the Living Trust at its creation. The earlier an asset is placed in an Irrevocable Trust, the earlier it will be protected should a Medicaid nursing home application be necessary. Loved ones inheriting your assets through a Living Trust will also bypass court proceedings.
Trusts provide space for specific instructions and protections. Minor children, disabled loved ones, and family members going through tough times can be supported properly through trust provisions. The amount of control and organization present in a Living Trust will empower the most organized among us to fulfill their estate planning goals.
Some people do not want to wake up at 6 a.m., rush downstairs and claim a shady pool chair with a beach towel at the hotel. They would rather enjoy a leisurely wakeup, followed by an over-the-top vacation breakfast. (Pineapple and honeydew melon? Absolutely.) For these special people, there are other estate planning options.
A Last Will and Testament can be drafted to offer similar disposition provisions to a Trust without the exactitude of knowing which assets will ultimately be part of the Probate Estate. Deed planning and beneficiary forms are additional steps to provide a greater level of control while supplementing a Last Will and Testament. Asset protection and control is sacrificed.
This type of decentralized planning suits clients whose lives are more fluid and who may lack the trusted individuals needed to cement Living Trusts. Younger clients who are still developing their organizational style may choose this flexible estate planning approach. A will with guardian provisions for minor children may be sufficient for new parents.
For couples engaged in the estate planning process, one partner’s desire for more organization often sways the partner who lacks that personality trait. Conflict sometimes ensues. Experienced professionals recognize that partners in a relationship may have different planning styles and will try to synchronize them.
A successful estate plan should conform to your style. Maybe hand-gliding in the Andes is not on your bucket list. We won’t complain.
Alan D. Feller, Esq., is managing partner of The Feller Group, located at 572 Route 6, Suite 103, Mahopac. He can be reached at alandfeller@thefellergroup.com.
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