1. Planning my death will hasten my death
Many times while discussing estate planning with clients, I have encountered hesitancy from clients due to the very real fear that preparing for death can lead to death. Surprisingly, this is a very real fear experienced by many people. I have had clients get nervous about signing their documents because of this fear.
Knowing that it is an “old wives’ tale” does not alleviate those fears that people have, whether they are rational or not. This fear seems to be that preparing for death is like inviting death into the home. I have had clients admit that they know such fears are irrational, but have them anyway. While I suspect some people use this “fear” as an excuse to put off the work needed to set up a living trust or other estate plan, this “fear” must be confronted.
My advice has always been that putting things in order brings peace of mind and reduces stress. This usually leads to a longer life, rather than a shorter one. Reducing stress is a healthy thing. At the end of the process, I’ve never had a client say they were sorry they completed his plan. Universally it brings you a sense of relief and accomplishment.
They know they have done their best to protect their family. The stress that arises from knowing that you have a task to complete that you are reluctant to do disappears when you finish it. I have heard it said that it was like taking a weight off your shoulders.
The truth is, estate planning is more likely to prolong your life than shorten it.
2. I worry that a living trust will make my life more difficult
The truth is that there is no difference. While setting up the trust and transferring assets is initially difficult, once it’s done, it’s done. Once the trust is in place, buying and selling assets is no different than writing title. There is no additional effort or inconvenience.
I have tried very hard to find some drawbacks caused by having a living trust. There was a time when trusts were so rare that some bankers and store clerks refused to use them. No more! Today they are so common that such an occurrence is virtually unknown. When refinancing real estate, you may need to do an additional deed to return your property to your trust. That’s all I can think of. That is not much difficulty. A trust is not going to change your life, other than to give you a lot of peace of mind.
3. I am concerned that my spouse may not have full use and control of our property after my death.
The truth is, having a living trust is the best way to ensure that your spouse has full control of all assets after your death.
If you do not have an estate plan, the probate court will divide your estate according to the laws of your state. Many states include a distribution to children as part of their distribution requirements. This could strip your spouse of half or two-thirds of the family estate.
A will is not much better since it has courts and lawyers involved. The court can remove or regulate spousal control. Major decisions will require the involvement of the court. Stepchildren and other disgruntled heirs can make life difficult for your spouse.
Solve all these fears with a living trust
Find that peace of mind that comes with overcoming procrastination and fear. Take that first step today to create your living trust. Then you can go on with your life knowing that your estate and family are safe.