Insider Darwin Abrahamson |
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Estate Planning Involves More Than Just Writing Your Will
Most people believe that estate planning is the process of providing for your loved ones when the inevitable occurs. However, Robert A. Esperti and Renno L. Peterson, both estate attorneys, explain in their book, Loving Trust: The Right Way to Provide for Yourself and Guarantee the Future of Your Loved Ones, "...estate planning should start with you -- while you are alive -- then provide for your loved ones at your death." Estate planning is not merely the process of writing a will. By simply writing a will, you are not taking any actions to provide for yourself during your lifetime, should you become incapacitated due to an accident, illness or old age. Esperti and Peterson contend that, "Your will does absolutely nothing for you." THE PROBATE PROCESS
Unfortunately, most people have the mistaken belief that by writing a will they are fulfilling their duty to their loved ones. Esperti and Peterson maintain that, "Nothing could be further from the truth." When you execute a will as your only estate planning strategy, you end up with an expensive, mostly misleading document that guarantees probate. At your death your property needs to be distributed to your heirs. Probate is the process of transferring your property to your heirs. Esperti and Peterson express their views regarding the probate process: "Property passing through the probate process acts like water traveling through a leaky pipe. Every few feet some of the water escapes...when it reaches the other end of the pipe, where the heirs collect, there is not always a whole lot left." Probate is not only expensive and time-consuming, but it is also a public process resulting in a public scrutiny of your personal and business affairs anytime anyone wishes to take a look.
The Tragic Case of Paul and Ellen
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