"Why do today what you can put off until tomorrow?" This whimsical take on the traditional proverb, "Don't put off until tomorrow what you can do today," highlights a serious issue: estate planning. In the United States, only 32% of individuals have prepared essential documents like wills, trusts, or advance directives, and of those, roughly half are not properly executed. Why? Many people perceive estate planning as unnecessary in their younger years, often prioritizing it only around age 65, if at all.
Is there a consequence? Yes, either probate, where a will must be validated in court, or intestacy, where heirs must prove their entitlement to the deceased's property in the absence of a will. These situations frequently lead to costly and emotional legal battles for heirs, who may have to pay substantial fees to attorneys and the courts to claim what the deceased intended for them. Moreover, heirs may face unexpected funeral or cremation expenses they cannot afford. Unfortunately, this scenario is all too common among 85% of Americans.
Why do so many defer estate planning, relegating it to the bottom of their priorities during life and passing on financial burdens to their heirs? This mindset is influenced by several factors. Many prioritize immediate and significant expenses such as luxury cars, expensive homes, vacations, high-end electronics, dining out, designer clothing, extravagant weddings, private schools, cosmetic surgery, sporting events, and concerts, rather than planning for the future. Additionally, today’s societal norms often enable adult children to live at home with their parents longer, fostering a dependency that delays financial independence.
When financial strain hits, individuals may temporarily tighten their spending but most often revert to wasteful habits when conditions improve. It is often expressed by the quote, "penny wise and pound foolish." This approach often criticizes those who save small amounts while neglecting larger financial responsibilities, resulting in greater financial loss over time.
Then, unexpectedly, one or both partners pass away, leaving behind assets like homes, cars, and bank accounts with no estate plan in place. The outcome is predictable: Their children, now embodying the values taught to them, may struggle to cover the legal costs required for probate. Imagine the consequences: Foreclosed homes, frozen bank accounts, lost retirement savings, and valuable personal items possibly disappearing. Any remaining assets eventually find their way into state coffers, like Florida's Unclaimed Property at www.FlTreasureHunt.gov, where they are deposited into the State School Fund and used to support public schools. However, the original amount reported can always be claimed by the owner, or his/her heirs. Should a rightful family member discover these assets, they must navigate the complexities of probate, engaging attorneys and courts to reclaim what is rightfully theirs.
Ultimately, estate planning isn't just about protecting wealth—it's about safeguarding your family's future and sparing them from unnecessary hardship.
Jackson Law PA, a law firm specializing in Estate Planning and Probate, regularly encounters families grappling with the financial challenges of preparing for the future. During consultations, we hear myriad reasons from clients—whether it's concerns about inflation, recessions, job losses, my daughter’s wedding is forthcoming, my daughter’s birthday is near and we promised her a PlayStationVR, or other financial strains caused by unnecessary luxuries. These emotional decisions often delay or prevent families from prioritizing estate planning until their circumstances become dire. This is best illustrated by the words of Forrest Gump, “Stupid is as stupid does.” Call Jackson Law PA today and begin to prepare your Last Will or Revocable Trust now.