Who Needs an Estate Plan?

Kristen R. Testaverde, Esq.  krtestaverde@gmail.com

If you ask any attorney this question, myself included, (or any law student who has had the (mis)fortune to read the hundreds of strange but true cases about failed wills, intestate estates, and incapacity) the immediate response you will receive is “everyone!”  As lawyers, we come into the picture early to set up estate plans and rarely hear from our clients again, provided all goes accordingly, or later, when someone without an estate plan has a problem that needs fixing.  Thus, we see the value in planning ahead.

Understanding however, that this is not always priority number one for a variety of reasons, there are certain times in life when estate planning should become a priority:

1)  When you have any real assets.  Anything of real value should be distributed in accordance with your wishes, not the intestate laws of the state.   Further, planning options can keep property outside the probate process, saving time and money. 

2)  When you get married (or divorced).    Under present Massachusetts law, marriage revokes a prior will.  Thus, if you have a will in place but subsequently got married, this will is no longer valid.  Under the new UPC to be adopted in the future, the will remains valid, but it should be noted that the surviving spouse can elect an intestate share.  Thus, the surviving spouse still receives a portion, but it may not be the one the couple intended.  In addition, presently, divorce revokes any provisions to a former spouse.  Under the new UPC, this will be expanded to revocable distributions in a trust, life insurance beneficiary designations, and retirement plan distributions. 

3)  When you have children.  At very latest, your estate planning documents should be prepared when you have children.  Not only does a will provide for asset distribution, it is the place to designate the guardians of minor children. 

4)  When health becomes a concern.  Not only is a will important, but having the requisite documents to ensure that you are cared for in your physical health and financial well-being during your lifetime is equally important.  As part of your estate plan, you should execute a Power of Attorney, Health Care Proxy, and possibly a Living Will.

I hope this provides you with a more “realistic” outlook as to when you should seriously consider estate planning.  If it were up to my colleagues and I, we would be preparing documents as soon as people reached legal age, because we see the consequences of not having such documents in place.  However, understanding people’s busy lives and concerns about estate planning is important.  It is therefore important to outline the times in life where estate planning is crucial. 

Comments or questions?  Contact Kristen at krtestaverde@gmail.com