Less than 35% of adults in America have any estate planning and 92% of those under 35 have no estate planning? One firm estimates that Americans spend $2B in probate annually (3/4 of which is attorney’s fees). So why do people avoid putting together their estate plans?
[callout]This episode originally appeared on the Family Before Fortune Podcast which is now the Modern Leadership Podcast. To listen to Modern Leadership click here. To see the Family Before Fortune Podcast archive click here.[/callout]
Episode Summary: Do I Need An Estate Plan
Would it surprise you to hear that common reasons for not making an estate plan include a feeling that it isn’t needed, or it’s too complex and expensive or takes too much time. There are all myths that we tackle in today’s episode
*** Just a note- for this episode I am not offering legal advice, just some thoughts to consider. I would suggest you consult your attorney if you have additional questions.
Everyone has an estate plan- everyone does.
6 reasons you should have an estate plan
- Control distribution of your assets
- Avoid lengthy probate
- Reduce estate taxes
- Choose who will handle your affairs
- Make gifts
- Choose who will be guardian of your kids
Should you have a will or a trust and what is the difference?
Trust
Pros-
Can avoid probate
Plan for incapacitation
Prevent affairs from being public
Better for tax planning
Governed by Federal law
Cons-
More expensive
Fund the trust
No Guardianship
Wills
Pros-
Less cost
SIMPLE
Guardian for kids
Cons-
Probate
A note on revocability
Book on The Shelf
[callout]Alexander Hamilton by Ron Chernow[/callout]
Learning From Leaders
[shareable cite=”Joe Paterno”]The will to win is important, but the will to prepare is vital[/shareable]