Most Estate Plans Don’t Work
In our experience, most estate plans just
don’t work. What does it mean for an estate plan to “work?” Our
definition of a plan that “works” is a plan that meets the
expectations the client had at the time the plan was designed.
Our definition of Estate Planning: I
want to control my property while I’m alive and well, plan for me and
my loved ones if I’m not so well (mentally disabled), then give what I
have to whom I want, when I want, the way I want, all while assuring
my wisdom is transferred along with the rest of my wealth.
You don’t want just a bare-bones
word-processed plan, but a highly customized plan that not only
transfers your wealth to your heirs, but also helps to avoid kids and
grandkids fighting over your stuff, doesn’t ruin their lives by
dumping into their laps wealth they didn’t have to work for and don’t
know how to responsibly manage.
Lawyers that Listen
Rather than spending the typical 1-2
hours with clients before drafting a plan, we engage in a multi-hour
multi-meeting counseling process (part of the
LegacyBuilder Three-Step Planning Process™) in which
we work together to craft your unique plan.
We see the planning process as a pyramid.
The pyramid’s foundation is the thorough understanding of your needs,
goals, dreams and aspirations. Most people want to be sure that they
(and their spouse if married) are taken care of now, and throughout
their retirement years.
Next, we need to have a thorough
understanding of family members and family dynamics – those people
that you care about and who will someday receive the benefits of your
success. For some people, family includes children and grandchildren.
For others, it may be nieces and nephews, friends, or community.
You are the expert on family matters. We
depend on you to teach us about your family. We’ll teach you about the
law.
After the foundation of the pyramid is
laid, it is appropriate to discuss wealth. We find that most of our
clients first want to protect and preserve the wealth that they have,
and then are also interested in enhancing that wealth. The final
building block of the pyramid is made up of strategies and tools to
save taxes. Like the last piece of a jigsaw puzzle, this is the
easiest piece to fit in – if all of the proper groundwork has been
laid.
Estate Plans that Work
Why don’t most estate plans work? There
are several reasons:
- Clients were sold word-processed, cut and paste,
search and replace documents.
- They
had little or no counseling, and virtually no input into their
plan beyond providing the size of their estate, and the names and
priorities of their beneficiaries.
- There
was no discussion of non-financial wealth and the wisdom the
client might want to pass on as a legacy to subsequent
generations.
- After
the document was drafted and signed, assets were never re-titled
(funded) to be controlled by the plan document (such as a trust).
- The
attorney told the client to call if they ever needed changes, and
stuck the file in a cabinet.
- The
clients’ documents were placed in a safe deposit box for 20 years
until one of the clients died. During that time, assets were
bought and sold, and changed drastically in value. New assets were
never titled in the name of the plan (trust). During that time,
the client’s children married and divorced and remarried;
grandchildren were born (one a child prodigy, another with severe
health problems, and a third who developed a drug addiction); and
one spouse developed dementia, and went into a nursing home.
During that time, tax laws changed almost annually. During that
time, the attorney learned new methods and approaches to planning
and grew in professional capability. During that time, the plan
sat in the safe deposit box and was never updated.
Is it any wonder that the plan didn’t
work? By the time the clients passed away, nearly everything in their
life had changed – except the plan that was to control the
distribution of their wealth to the people they loved.
Our LegacyBuilder Three-Step
Planning Process™ starts with a free “The Truth About Estate
Planning™” educational workshop to help
you understand the issues, and then by helping you to develop your
plan with counseling oriented planning partners, so you have a
comprehensive, highly customized plan to start with. Next, you commit
yourself and your family to a formal continuing maintenance and
education program which includes annual financial reviews, bi-annual
restatements of your plan, and educational programs for you and your
heirs. Finally, we work with you to secure appropriate assistance for
you and your family to transfer your wisdom along with your wealth
when you pass on.
Legacies that Endure
"I help people to preserve
their memories and values, and to pass them on to the next generation."
Jim Eagar
 What
is most important in your life? Your values, loved ones, and life
stories, or your "stuff"? Most people immediately answer that their
values, loved ones, and life stories are by far the most important,
but most estate plans do not at all address the transfer of values and
life stories. They only focus on transferring wealth while avoiding
taxes and probate.
The LegacyBuilder Three-Step
Planning Process™ helps you to transfer your values and
stories along with your wealth by including your personal directions,
goals, and values in your plan, and also conducting regular “priceless
conversations” to record and hand down your values and life stories to
kids and grandkids. They don’t just receive your financial wealth, but
also your non-financial wealth which gives meaning to the “stuff.”
The Next Step
To get started in this process call us at
541.324.1800 and make a reservation at the next Client
Orientation Meeting. There is no cost and no obligation to
continue further in the process.
Legacy Estate Planning, LLC
Serving Southern Oregon
including Brookings, Cave Junction, Grants Pass, Eagle Point, Medford,
and Ashland.
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