“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” ― William Arthur Ward
What does this quote have to do with an estate plan? Well, you must coordinate an estate plan just as a sailor must understand the wind while sailing. An estate plan must coordinate all facets of your estate planning documents, i.e., Will, Trust, Power of Attorney, Health Care Proxy and Living Will. It would be wise to coordinate all of your professional experts, i.e., accountant, insurance agent, together with your attorney and financial expert to coordinate an estate plan for you and your family.
Communicate your wishes to all of your experts and better yet is to bring them all together to discuss your goals, aspirations and their ideas to achieve your goals. Discuss the roles you expect each of your appointees to assume i.e., power of attorney, health care agent, executor, Trustee and insurance professional. Only by making your wishes known to your experts can you achieve your goals. Start by taking your child to various banks and give him or her signatory power on one (1) account. Give them a road map of what you expect when they become your agent under a power of attorney, executor under your Will and/or Trustee under your trust. If they are your health care agent, tell them what extraordinary measures you wish to have done, if any, to prolong your life.
Title to assets refers to how you own assets, i.e., owned individually, jointly, or in a trust. Many people own assets jointly to “avoid” that hated word “probate!” Many years ago, Norman Dacey wrote a book entitled “How to avoid probate”. Most people did not realize that Norman F. Dacey was not a New Yorker and his tome concerned the California probate system. We in Westchester have a dynamic Surrogate, whose court expedites the probate process with few delays. Unless there is a significant reason to avoid doing so, have your attorney draft your Will or Trust (or Trust within a Will) for the right reasons, not to avoid the fear of something which is not fearful. Avoiding probate is rarely the primary or even appropriate primary goal. Many people have their assets owned jointly, but it also assures that if the child is sued or divorced, that asset may be placed in jeopardy. Hence, trusts placed in Wills may avoid this scenario. Be certain that your beneficiary designations are coordinated with your estate plan. Also be certain that you have disability coverage as well as life insurance coverage. You need to replace your earnings if you become disabled, but you will never enjoy the benefits of life insurance; thus, be certain that you have adequate disability insurance to sustain your family if you become disabled. As your needs change, coverage for all your insurance needs i.e., life, disability and long-term coverage must change with you. Coordinating all aspects of your financial goals is essential to achieving your goals!
