Everybody's circumstances are different. That is why Attorney Dean E. Patrick, works with his clients one on one to explore, discover, and assure their goals are attained.
Below are a few stories to help you recognize your goals as regards the estate planning and probate process.
Keeping Control
Harry husband and Wendy wife, stopped talking with their surviving siblings after a bitter probate court fight. With a modest estate and an intention that certain individuals take no part of their estate, they needed to plan, but decided to wait for "insert your excuse here." Wendy passed away. Weakened by the grief from the loss of his wife, Harry passed away within the month.
If you do not plan, the probate process makes one for you. With no living parents or children, their estate was distributed to the very people they did not want to take from their estate, their surviving siblings.
Harry and Wendy could have maintained control when they were gone and disinherited their siblings if they had created wills or trusts.
Government Benefits For Incapacitated Loved Ones
Harry husband and Wendy wife, have a disabled child, Larry, receiving government benefits. Unaware of the interaction between inheritance and government benefits, Harry and Wendy created a simple will distributing their assets equally among their two children, Ronald and Larry. Many years later, Wendy passed away. Weakened by the grief from the loss of his wife, Harry passed away within the month.
A subject of the probate process, Larry, now without his parents to care for him, received a letter from the State of Michigan. Without compassion for his situation, the letter read that the State was making a claim against his inheritance for the past State benefits he had received.
This situation could likely have been avoided with a supplemental (special) needs trust established for Larry's benefit inside of the their wills.
Fiscally Irresponsible Beneficiaries
Harry husband and Wendy wife, have been happily married for only a short time. With a modest estate, and two 18 year old boys among them, they decided to create wills to maintain control. Wendy and Harry suddenly passed away in a car accident.
After being subject to the probate process, the balance of the estate transferred to the boys. With very different attitudes toward money, the boys now had to manage a sum of money beyond anything they had seen before.
Ricky Responsible, used his inheritance to pay for tuition and room and board for his college pursuits. To assist in getting around, Ricky purchased a used car. Confident in his financial savvy, Ricky invested the balance of the inheritance in the stock market. Although Ricky had set aside some money as a reserve, he was not prepared for 2008 stock market. While many lost up to 40% of their portfolios during the crash, Ricky lost nearly 72% because of his stock picks. His reserves quickly depleted, Ricky had to take on a full time job to finish school.
Spencer Spendthrift took another path with his inheritance. First things first, Spencer purchased the sports car he always wanted. Did he consider maintenance and insurance costs? Probably not. Next, a nice apartment for him, and his friends, to live at. Not interested, and lacking the push to do otherwise, Spencer decided he did not need to go to school because of the inheritance. Before his brother Ricky graduated from college, Spencer had blown his entire inheritance.
This situation could have been avoided if Harry and Wendy had created a testamentary trust inside of their wills. Harry and Wendy could have nominated someone to manage the finances for their children. This approach, would have better assured that their health, education, maintenance, and support were taken care of while avoiding the downfalls described above.
