Emphasizing the Value of Basic Estate Planning

At Cook Tillman Law Group, our primary objective is to ensure that the client understands how their wishes will be carried out, that estate administration will be tidy, and that money will be saved and assets safeguarded.  To do this, we explain in simple terms the laws and processes at hand, which demonstrate: (1) the downsides to the current plan or lack thereof; (2) ideal outcomes; (3) alternate solutions; (4) weighing the options; (5) cost and hassle considerations; and (6) longevity.  The following example will help Advisors recognize need and paint a positive picture of the achievable outcomes when their clients engage in estate planning.

First, let’s introduce the clients, Bill and Sandy, a married couple who have a young daughter.  They have a home, they each have a 401(k) and life insurance, and all their other assets are joint.  They do not yet have an estate plan and they are at your office for an annual meeting.  You tell them that estate planning is important.  You ask if it would be okay to discuss the benefits of preparing a  basic estate plan.  They say, “sure.”

Wills

You begin by asking if they’ve considered a guardian for their daughter.  Sandy says, “we’ve considered where she would go if something happened to us, yes,”  You tell her that she and Bill can nominate guardians in their wills.  Then you explain, “if something happens to both of you, your nominee can likely take temporary custody of your daughter and, if necessary, file an immediate (“emergency”) petition for guardianship.  Without nominating someone, it may be an extended period of time before someone petitions for custody of her, and courts would require additional time to assess who is best suited to serve, which costs more too and could undermine your wishes for their daughter’s temporary custody with a friend or family member.”  Then you stop and ask, “what questions do you have?  Should we discuss your nominees after each other?”  Bill and Sandy respond that their daughter would go live with Sandy’s sister and her husband. 

Thereafter, you suggest that they can also fairly easily ensure that their daughter’s inheritance is protected and properly utilized before she is ready to manage it herself.  You ask, “is Sandy’s sister capable of handling money until your daughter reaches an age of maturity?”  Sandy says, “no.”  You follow up to determine who can handle money until their daughter is ready.  Bill suggests that his brother could handle the money.  You say, “okay.”  Next, you ask, “is there an age at which you would trust your daughter with any remaining monies that Bill’s brother hadn’t already spent for her benefit?”  Bill and Sandy look at each other, then look back at you.  In near unison, they say, “thirty?”, seeking your approval.  “That’s great,” you say.

Financial Powers of Attorney

Next, you ask Bill, “would you want Sandy to handle all of your financial affairs if you couldn’t?”  “Yes,” he says.  You tell him, “a power of attorney is a simple document that gives the other that power, without court intervention.  Without it, courts could be required to get involved just to grant some fairly simple powers, which can be stressful and costly.  Moreover, courts tend to have a black and white approach (i.e. all or nothing), so they may deem that your need is not yet significant enough, or, conversely, overreach, such as stripping voting rights.”  You emphasize, “the powers given under a power of attorney are broad and can be utilized on an “as needed” basis.  Some of those important powers include dealing with real estate, life insurance, retirement accounts, and applying for benefits.”  You then ask, “what questions do you have?”

Healthcare Powers of Attorney

Lastly, you say, “let’s conclude with healthcare matters. Can the other of you make healthcare decisions for you if you can’t?”  Bill and Sandy say, “yes.”  You suggest that they prepare healthcare powers of attorney, to ensure someone has authority to make medical decisions without need for court intervention.  You inform them that a healthcare power of attorney either grants or restricts your appointee’s ability to remove artificially life-sustaining food, water, nourishment or other fluids if your condition is terminal.  You ask, “do you have any questions about that?  Do you always want all artificial life prolonging care or would you wish that it be withdrawn if you have no chance of recovery?”

After Bill and Sandy discuss their wishes, you let them know their plans can be prepared swiftly and will serve an important purpose if something happened to either of them, and you emphasize that their plans remain flexible to change in the future.

At Cook Tillman Law Group, we specialize in crafting estate plans tailored to fit the client’s needs and wishes. Our experienced attorneys will guide the whole process and prepare quality documents that alleviate worry and benefit generations to come. Message me, visit our website, or call us today (615-370-2444) to connect or schedule a consultation for your client.