Estate Planning: A Call to Action

“There is no alternative to advanced planning!” 
– Colonel George Goodwin, Former INDOT Executive Director, Purdue Alumnus and donor

This call to action, epitomized by the Colonel’s decisive charitable strategy for his beloved Purdue University, stands out as extraordinary in contrast to many who have yet to document their own estate planning preferences.

Start by reflecting on your assets and loved ones:

• What do you own?
• Who are your heirs?
• What impact do you want these assets to have on these heirs?
  
  

That is estate planning — ensuring that your assets accomplish what your heart desires in the future — efficiently and economically.

The most common estate planning error is doing nothing.

Less than half of Americans have a will. That is a lot of folks who are expecting, or at least hoping, that their life’s savings will pass to their preferred heirs. If you die without a will, then your state’s law will intervene, but numerous factors determine who gets what.

So, why take the risk? Let’s examine.


The Foundation

You should have a: 

• Last Will & Testament
• Limited and/or General Power of Attorney
• Advance Directive for Health Care Decisions

Your will should cover several “housekeeping” details, such as paying final expenses (bills, debts, and taxes), who will serve as the executor, and what to do if an heir has predeceased you or is a minor. A well-drafted will not only spells out your preferences but also anticipates potential circumstances.

If you cannot make business decisions or manage your property, someone you trust should have discretion over your financial affairs. Your Power of Attorney directs who has control, the extent of that control, and under what circumstances the designated individual can act on your behalf.

Health Care Directives should be in place when medical decisions need to be made on your behalf. You can direct the type and extent of medical services you receive. This not only ensures that your wishes are fulfilled, but it also empowers your designate to enforce your choices.

These decisions about your health care and your asset management require advanced planning.

But Wait, There’s More!

Revocable living trusts are your friend. For many, creating a revocable trust (as opposed to an irrevocable trust) offers several advantages.

• No loss of control over your assets
  
• More privacy than a probate estate
  
• More economical
  
• More efficient than only having a will; both during and after one’s lifetime
  

Who Should Be Involved?

You will need an attorney with broad estate and tax expertise, an excellent “bedside manner,” and a long-term focus on you and your family. Like most things in life, cost is usually associated with value.

Your will needs an executor who has sufficient time, expertise, and objectivity. Serving as the executor for a family member or close friend can be a brutal, thankless job. An estate settlement with no family conflict is rare. Our advice: use a professional.

If you create a revocable trust, you can be your own trustee during your life while you have the physical, emotional, and intellectual capacity. However, eventually, a successor trustee must step into your shoes. Your successor trustee will be the quarterback, coordinating the settlement process or the ongoing administration of your assets with your trusted advisors (attorney, CPA, investment advisors, insurance agent, business partners, etc.) and your family.

Estate planning is not a singular event. You should plan to meet with your attorney every 3-5 years or if any significant changes occur with your assets or family.

The cost of not planning can be substantial, both financially and for your family's peace of mind. Plan ahead, be intentional, and make it a priority. Remember, “there is no alternative to advanced planning.”

We are here to help, and we are always just a phone call away.