Creating Incentives In Your Estate Plan
In 2008, Congress recognized the need for the public to understand the importance and benefits of estate planning by designating this, the third week of October, as National Estate Planning Awareness Week. Nevertheless, even in this time of pandemic, the majority of adults in the United States still have not prepared any estate planning documents such as a will or trust. A good friend sent me an article just this week discussing how Chadwick Bosemen of Black Panther fame, who died recently after a several year battle with cancer, had no will. His wife was required to file with the Los Angeles County probate court to be appointed as the administrator of his estate. The filing required that she provide detail about the estimated value of his estate. Fortunately, they were married just prior to his death, or she would likely have had no standing before the court and would receive nothing.
A good estate plan is one that will control property while you are alive and well, plan for you and your loved ones if you become disabled, avoid probate, give what you have to who you want, the way you want, and when you want, ensure the long term control and protection of property, and, leave a legacy for your family.
Your estate certainly includes the financial wealth you have accumulated, but it also includes the experiences and lessons you have gained over a lifetime. Your plan is an opportunity to not only impart your material wealth, but also impart your wisdom. This is done through the way you plan. Did you know that you can include incentive provisions in your will or trust that will allow you to not only give away your wealth, but do it in a way that will be beneficial to the recipient? Some examples include:
To encourage the beneficiary to pursue an education at least through college.
To encourage the beneficiary to be gainfully employed with a view toward being financially self-sufficient.
To encourage the beneficiary to be a law-abiding member of society.
To encourage the beneficiary to be a productive member of society by making meaningful and positive contributions to family, community and society.
To encourage the beneficiary to engage in entrepreneurial activities.
To encourage the beneficiary to engage in creative activities.
To encourage the beneficiary to handle money responsibly and avoid wasteful spending.
To encourage the beneficiary to act with empathy, thoughtfulness, kindness, and compassion toward others.
To encourage the beneficiary to develop healthy and meaningful relationships.
To encourage the beneficiary to make contributions of time, money, or both to charity.
To encourage the beneficiary to maintain a physically and mentally healthy lifestyle.
These goals won’t be reached by just filling out mindless forms. These goals are achieved by thoughtful engagement with the planning process. While big tax changes may or may not be afoot following the election regardless of who wins, the need for good planning will still exist. Make it a goal to reach out to a qualified estate planning attorney this week and begin the process of meaningful and purposeful estate planning.
This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.