The following article was written by Mr. Lynn Bird, the Estate Planning Section Head at Caplan and Earnest LLC. Caplan and Earnest is a Boulder, Colorado-based law firm that provides estate planning counsel as well as representation across many other practice areas. You can learn more about Caplan and Earnest by visiting http://www.celaw.com. Mr. Bird can be reached at 303-443-8010 or lbird@celaw.com.
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Estate Planning is for Everybody, Prince and 20-Year-Olds Included
Whether you’re a megastar like Prince Rogers Nelson or a young father with a one-year old, leaving behind an estate plan is essential, particularly for your loved ones. While Prince’s tragic death has made headlines for the performer’s lack of a will and what that means for his immense estate, a recent Dear Abby column shows it’s not just wealthy superstars who need to plan ahead.
What’s notable is that both cases deal with unexpected deaths, a stark reminder that we never truly know what can happen. And, unfortunately, the unintended consequence of dying without an estate plan is that our loved ones have to pick up the pieces, usually at a steep financial and emotional cost.
For Prince’s family, this likely means years of legal wrangling, stress and extra expenses. For those mentioned in the Dear Abby letter, in which a sister writes that her 26-year-old brother died suddenly, leaving behind a wife and 1-year-old child, it means that a young mother, in addition to grieving, will have to make some big decisions on her own without any input from her deceased husband.
The unforeseen situation inspired the letter writer, a single mother herself, to urge others to put planning in place. When it comes to mortality, she writes, it’s better to be practical and prepared. But the reality is that 50 percent of Americans with children, and 41 percent of all baby boomers (age 55-64), lack a will. Those surveyed in the linked article cited procrastination, cost and a belief that they don’t need a will as the top reasons for not having one.
Understandably, estate planning is not something people always like to think about given the reality of their own mortality. However, it is an act of love and kindness for those left behind. At the very least, you should get these documents in order (which we’ve discussed previously in this blog post):
- A will. A will is a written declaration allowing a person to direct portions of their estate to specific heirs. It also establishes an executor for your estate and creates trusts for future distribution of bequests. As such, it’s probably the most basic estate planning document you can sign. Wills should be updated with each major life event like marriage and the birth of children and more unfortunate events like divorce and deaths.
- Durable power of attorney. A durable power of attorney grants a specified agent the authority to make decisions on behalf of the grantor should that person become unable to make decisions for themselves.
- Medical power of attorney. A medical power of attorney appoints a health care agent the authority to make necessary medical decisions should the grantor become unable to make those decisions.
- Living will. A living will is a document that will state your intentions regarding end-of-life care—for example, whether you desire to be removed from life support should you become terminally ill or suffer an accident that leaves you in a persistent vegetative state.
If you have any questions about establishing your estate plan and ensuring that it reflects – and protects – what matters most to you, please give me a call.
Lynn David Bird is the Estate Planning Section Head at Caplan and Earnest. He can be reached at 303-443-8010 or lbird@celaw.com.
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This article was originally posted at http://www.celaw.com/attorneys/estate-planning-everybody-prince-twenty-year-olds-included and is posted here with permission from Mr. Bird and Caplan and Earnest. Targeted Wealth Solutions LLC does not provide legal advice and is not affiliated with Caplan and Earnest LLC.
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