Children

Though this is not a typical estate planning goal that a parent starts with when they think about estate planning it is all too often accomplished through the following process.

1. Have a child or children.
2. No longer be married to their other biological/adoptive parent (your choice death, divorce or never married).
3. Marry or become involved with another significant other.
4. Put all your property (real estate, bank accounts, cars, 401k beneficiaries, life insurance beneficiaries, etc.) in joint tenancy with this “new” partner.
5. Die

Now everything is owned by this new partner.  Many of the individuals whom I’ve ever talked with who have done this type of “planning” say they know that this partner will use it for their children’s benefit.  Let’s assume that they do.  How do they get around gift tax issues?  What if they are sued?  What if they remarry?

                OPTION A

  6. This partner remarries.

  7. They put everything in joint tenancy with the new spouse.

  8.

When we think about our children being grown up, what age are we thinking...?  It used to be that once a child reached 18 years, they were considered grown.

I’m not sure if that is still the case. If they have graduated high school and are not planning college or trade school of some sort, we may be more likely to encourage them to get a job and become independent.

But what if, in today’s economy, they can’t find a job?

Estate Planning is about showing your loved ones that you care enough to leave written instructions that let them know how much you care.  The failure to leave a plan leaves a hole that you cannot comprehend and without knowing who is going to trip because of it.  I know a few people who have told me that they can’t think about their estate plan because that forces them to think about death and therefore there death will come sooner.  Try to imagine what it is like without a plan.

You die.

If you are very fortunate everyone in your family gets along there are no arguments and they all agree to do what you would have done without your plan.  I have never seen this happen and it doesn’t alleviate the expense of probating an estate where individuals have not been selected.  The first fight may be over the funeral arrangements.  These are not typically included in a will but they can be, and a complete estate plan should give you the opportunity to express those, if not in your will, somewhere where your desires regarding your final rest need to be found.  Just to be clear, if you haven’t completed an estate plan, you do have a will