March 9, 2015 - LegalShield
In the weeks immediately following the death of Robin Williams, his
family seemed unified in grief. That illusion was shattered recently when court
documents revealed the infighting over his wealth, memorabilia, and even
clothing, had resulted in Mrs. Williams banning her husband’s grown children
from her home. Mr. Williams’s estate planning documents did not provide enough
clarity to determine what his wife and children were entitled to receive.
Tempers flared and the situation quickly devolved into a contentious court
case.
With methodical planning, honest conversations, and appropriate legal
documents in place, this situation might have been avoided. But many Americans
don’t take the time to do estate planning, much less get specific about how
affairs should be handled once someone has passed away. Why?
Perceived cost, procrastination, and
uncertainty
“Many people reject estate planning because they
don’t like to think about death. I mean, who does? In addition, most people
assume they can’t afford it anyway and I don’t blame them. Most lawyers charge
sky high hourly rates,” says Jeff Bell, CEO of LegalShield, a network of dedicated law firms
that members can call for help. A $20 monthly plan membership grants clients
access to lawyers for answers to legal questions including assistance with
deciphering contracts or executing a will. “Everyone deserves access to the
knowledge a lawyer can offer without worrying about their ability to pay. In
modern terms, we ‘crowd-share’ law firms in 49 states and 4 Canadian provinces,
providing affordable legal access to 3.7 million people and counting. A
standard will is a benefit of our plan.”
Mr. Bell believes the uncertainty most people feel about estate
planning causes them to delay taking action. Procrastination, though, is
conquered by the step-by-step guidance experienced lawyers can provide. Clients
should rest easy knowing their best interests will be represented, he says, and
they “need not feel pressured to become estate planning experts themselves.”
Wills versus trusts
Most middle income Americans benefit from a good standard will. Trusts
are reserved for unique cases like families who wish to make provisions for a
special needs child or for instances when the decedent’s assets include a
business, extensive real estate or big ticket property items, or detailed
instructions for trustees. The more complex the assets or numerous the heirs,
the more likely a trust will better serve needs.
A qualified lawyer can guide this decision appropriately. It’s
important to make a choice as soon as possible to keep the forward momentum
going. Some people fail to follow through by signing the documents and getting
witness signatures while others neglect to transfer assets (title) into their
trust. Both lapses result in invalid will or trust documents, rendering them
worthless under the law.
No will or trust? You just abdicated your
wishes to the state
If you die without a will or trust in place, the state will step in to
make decisions on your behalf. The common asset dispensation involves awarding
assets to your surviving spouse or directly to your children if you are unmarried.
If you have no spouse or children, the state will usually identify blood
relatives and award them your assets eventually.
The “leave it to the state” arrangement
features four inherent flaws. Ask yourself:
1. Am I open to temporary foster care for
my minor children?
If parents fail to designate who should raise their children, the state
will step in to make custody decisions. If no potential guardian is immediately
apparent to the judge the children could be remanded to state custody (foster
care) while the court investigates. A will or trust allows parents to transfer
guardianship of minors to trusted friends or loved ones.
2. Am I fine with the state disregarding my
oral or written instructions?
People who designate which heirs they intend to leave specific items
from their estates should know that those documents are meaningless if written
outside of the context of a formal will or trust.
“I had a client who meticulously labeled her items
of personal property by taping pieces of paper to them and writing, ‘This goes
to Mary, my hairdresser…’ or ‘This is for my husband’s long-time friend,
George.’ She had 60 or 70 of these tags. Some of them just said, for example,
“Rachael.” I appreciate what she was trying to do, but it doesn’t stand up in
court. Her will had a specific way to handle her personal property, and none of
these people were named. The right way to accomplish this is to use a “devise
of tangible personal property” (or, in some states it would be called “a
memorandum of personal belongings”) to bequeath non-cash personal property.
This way she would have a legally binding detailed list of items and who should
receive each one. If she were to get upset with Mary she could simply strike
her name from that document without having to go to her attorney to formally
change the will. And that is even easier than trying to unpeel the sweet but
meritless sticky note,” says Charlie Davis, Managing Partner and
Co-Founder of Davis Miles McGuire Gardner, PLLC, a LegalShield Provider.
3. Do I feel keen to pay an extra premium?
It can get expensive to relinquish decision-making to the state. While
wills go through probate court, estates without a will generally take longer to
administer. The costs associated with extra time spent in probate court will be
deducted from assets, leaving less to dispense to heirs.
4. Does open-ended probate time sound good?
Clearing the estate from probate could take a long time, dragging out
dispensation to heirs for years in some cases. It is cheaper and more expedient
to draw up a will that expedites the probate process. Estates protected by
wills and trusts typically fly through the probate process so long as no one
challenges them.
Don’t be duped: online will and trust
document services
“Some people do their own wills through document
preparation services trying to save money. The people assembling these
documents deliver them without offering advice, discussing probate issues, and
asking important follow-on questions. That can lead to unintended and sometimes
disastrous consequences. One of our lawyers has a practice almost solely
devoted to handling problems where wills and trusts are poorly drafted,
ambiguous, or ill conceived. And he is very busy. Experienced will and trust
lawyers ask the right questions and discuss the implications of your desires
and decisions,” says Mr. Davis.
LegalShield’s Jeff Bell agrees that no one should waste time “economizing”
with document preparation services. He stresses that LegalShield is a part of
the sharing economy and that opportunities abound for plan members whether they
are looking to write their wills or get help collecting unpaid bills for their
small businesses.
“In this country, a lot of people worry that the
color of justice and access to legal help is green. LegalShield is disrupting
all of that. Legal access is no longer determined by a person’s wealth level.
Every North American deserves the opportunity to leave a legacy for their
families. The first step is protecting those families with a well thought-out
last will and testament,” says Mr. Bell.
LegalShield members get consultation on unlimited
personal legal matters with lawyers experienced in estate planning as well as
many other topics. LegalShield currently affords 1.4 million families equal
access to justice through the legal service plans it has
offered for 40 years. LegalShield lawyers stand ready to provide legal advice
and draw up wills without additional charge to members.
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