Aretha Franklin was a brilliant performer, but she apparently made giant estate planning mistake that you’ll want to avoid. Franklin, who was divorced, reportedly died without a will or a trust despite having four grown children, one of whom (Clarence, 63) has special needs. She is one of the 60% of Americans who have no will or trust. Neglecting this important planning step can cause chaos, confusion and conflict for those loved ones left behind.
A recent survey by Caring.com reveals that only 42% of those polled have wills or trust documents, and only 36% of those with children under age 18 have such planning in place. While 81% of those age 72 or older have wills, 78 percent of millennials (ages 18-36) do not have a will. Even more surprising is that 64 percent of Generation X (ages 37 to 52) doesn’t have a will, and nearly half of respondents in the 53 to 71-year-old age group (40 percent) said they don’t have one. https://www.caring.com/articles/wills-survey-2017.
Some of the reasons given for not having these estate planning documents in place are based in fear, procrastination or misplaced feelings that it is not needed or important. Many people are afraid of the idea of death and, therefore, do not want to plan for it. Others say they just have not gotten around to implementing such plans, presumably because they do not feel the urgency. Experts, while acknowledging fear and procrastination are common deterrents to action, note that we all have an expiration date, and we do not know when it will happen. The most reassuring thing for our family members is for us to make plans for a smooth transition and not leave things to chance and argument.
Having a will or trust is particularly important for parents. Such documents can name the guardian(s) who will care for a child after the parent’s death – including an adult child with disabilities. Without this direction, family members may fight over who will take this responsibility. A child with a disability (like Clarence) may be eligible for public benefits like Medicaid or SSI which have asset limits. Inheritance law for estates where there is no will or trust will give a share of the deceased parent’s estate to the disabled child along with other children – often resulting in a loss of essential health and financial resources. And finally, the lack of specific directions as to distribution of personal assets and property among heirs will often result in conflict among them for those assets.
Don’t delay in your important planning for financial security and asset protection for your family. Call us today for help preparing your will or trust.