Chapter 15
10 reasons to have
an estate plan
Cam’s dad didn’t see death coming. He didn’t know that a truck was going to take him out while he was just out getting something for his wife.
He had no idea he was not going to return home. It was almost six months to the day since his mother had a major stroke while she was in California.
His parents didn’t have any out of country insurance. So, they had to stabilize her to get her back to Canada.
That event essentially bankrupted them.
By the time all eight children came together, his mom had not seen her husband for five days. She was looking around the room for him and when they told her, she was crushed.
Because of her condition, she was never able to tell them if there was a will somewhere.
Cam’s mom lived for another five years after her massive stroke.
During that time, everyone searched the family home to find a copy of a will.
No one found anything, and this created a unique problem.
Cam admitted his dad and mom should have written a will. Let everyone what their wishes were.
Cam said, “There would not have been the breakdown in the family like there is today, if my parents had said, on our death, sell 93
the cottage, or if they had something else lined up. But they had nothing.” He went on to say:
If you’ve got any kind of wealth, even a car, and you die, make sure somebody knows who is going to get the car.
If you’ve got any assets, do the right thing and just get a lawyer involved to handle it all so there’s no questions.
Have the conversation (with family), it’s uncomfortable but get the conversation over and done with.
Put it out in the open, make a file visible so somebody could trip over it.
Make sure people know they’re going to see this folder.
The file has to contain the information an executor is going to need, because you don’t want people hunting down things.
When people die, it’s traumatic and you’re not going to find a folder in the middle of trauma, if it’s hidden somewhere. It’s got to be easy to find by the right people.
If you want your kids to have friendships and family after your passing, do the right thing.
[If you forgot how Cam’s family ended up broken, re-read the cottages and vacation properties chapter.]
Make a will and make sure you have a power of attorney for your health as well.
Do those things and you will help your family more than you helped them with their diaper changes.
Having an up-to-date estate plan with a valid will helps to ensure that your dependents and heirs will be provided for according to your wishes.
Reasons to have an estate plan
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• Provide adequately for your spouse and dependents.
• Distribute assets according to your wishes, not the courts.
• With an estate plan, you choose the guardian for your minor children and their care, not the courts.
Danielle understood the importance of having a will and estate planning.
Her situation is simple. With no children, she has named her longtime friend Rachel as executor, and Rachel knows where the will is kept. Her assets are to be split with Rachel and her brother.
She also has power of attorney in case of incapacity.
Also, to make sure that her business will continue until a buyer is found, there is a succession plan.
As a successful business owner, Danielle wanted to make sure she did not repeat her parents’ mistakes when, as a child, her future was decided in the parking lot of a funeral home.
When Danielle’s father died at age 39, she was only 12.
This is where things get complicated.
When my dad passed away with no will, my grandfather’s estate was not yet settled and my great-grandfather’s estate was not yet settled.
So, we’re talking three generations of estates not settled, but the one thing they all had in common is that there was no will.
Danielle’s family was large, so it was decided in the parking lot of the funeral home that one aunt and uncle would take her.
Another aunt and uncle took her brother.
Danielle has memories of a happy childhood. She felt she never missed out on anything.
She credits her aunt and uncle for making her the strong, confident woman she is today.
Though it was extremely time-consuming and at times painful for them. Since there was no will, the government was in control of the money.
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Every time they needed money for her care, they had to go to court and explain what every dollar was being used for.
If you are concerned with what will happens to your pets, Authors Barry Seltzer and Gerry W. Beyer, in their book, Fat Cats and Lucky Dogs, say there are at least five key occasions when your pet is danger: 1. When you are incapacitated and are unable to care for your pet.
2. Immediately after you die and your pets are at home alone, perhaps for days.
3. During the time between your death and when your will is read.
4. During the time between your will is read and when it is probated.
5. The ongoing period after your will is probated.
An estate plan means you choose the guardian for your pets and their care.
You get to write a power of attorney and choose who will manage your affairs.
You can reduce or defer taxes.
You can reduce probate, legal, and executor fees.
You can provide funds for all final expenses and liabilities When Claire’s husband died of cancer, he didn’t tell her in hind-sight what he had done for her.
She remembers him working on the cottage, even when it was difficult to do so. He did all the renovations that needed to be done.
At the time, it didn’t really click what he was doing. After he died, she found a folder on his dresser with everything that she needed to know about his holdings, such as investments, insurance policies, etc.
Everything was in that folder, all nicely all laid out. She didn’t have to scramble around.
It lessened what she had to go through coping with the loss and the stress. He made his being gone a lot easier on her. He never told her he was going, but once he was gone, everything was organized.
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An estate plan decreases the time and potential problems to settle your estate.
You decide how to pass on your business to your spouse, children, partner, or other party.
You get to gift money or assets to the charities of your choice Estate planning is not just for rich people; it’s an opportunity for people of any age to control who will inherit their money and property, and to decide who can make medical and financial decisions on their behalf if they’re unable to do so themselves.
You need to make a lot of estate-planning decisions. Even young people (single ones too), just starting out, should have some key documents to make their wishes known if anything happens to them.
Since the coronavirus pandemic has become a threat to us all, it has made more people realize the importance of being prepared for the unexpected at any age.
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The Executor Help Solution
The biggest dangers and problems that cause stress:
• You have not taken the time to prepare for the unexpected.
• You do not have a will.
• You have not done all you can to protect your family.
What you need to do and where to get the help:
• Meet with a lawyer or notary.
• Prepare an estate plan, which includes a will.
• Make health care directives.
• Make a financial power of attorney.
• Let your family know when these important documents are kept.
How this helps you:
• You can rest easy knowing you have prepared your family in case an unexpected emergency occurs.
• You have had the conversations that need to be had.
• The family knows where this important information is kept.
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