Most people lack adequate estate planning. The reasons for this are many and varied, ranging from lack of knowledge to procrastination, and everywhere in between. I have had the misfortune to witness the downside of not having proper estate planning. For example, did you know that in Rhode Island, if you die without a will, your surviving spouse may not get all of your assets?
Education is the key to motivating our clients to complete a proper and thorough estate plan. Once they understand that a good estate plan can have very little to do with death taxes, but everything to do with planning for your final years and taking care of your family when you die. The federal estate tax affects a very small percent of Rhode Islanders, but a very large percent of Rhode Islanders have children.
We also have clients who “just don’t get around to it.” We had one client who was supposed to meet with us to complete his estate plan. We pushed and prodded for several years. The week he returned from the hospital in Vermont, he came to see us. It seems he broke his neck skiing. Fortunately, he was fine, but he was now a motivated client. Another client set up an appointment following a hair-raising plane flight with his wife.
One particular CPA sat on his documents, unsigned, for almost three years until he and his wife could decide who to appoint as the guardian for their two minor children in the event the he and his wife dies at the same time. Luckily nothing happened to either of them during this period of inaction.
At a minimum, everyone should have a durable power of attorney and a health care proxy. These documents provide legal authority for someone to act on your behalf while you are alive, but unable to make financial and medical decisions for yourself. My experience has been that these documents as at least as important as your will.
Our goal is to help people realize the importance of the various aspects of estate planning to the end that they seek out competent legal advice.
