#30 - Motivation to Start Estate Planning
Reluctant Executor News
107 million Americans have a will. Unsurprisingly the older you are, the more likely you are to have one. So age is a motivation, but what else? What would encourage you to put protections and directions in place for your family?
Hearing about other experiences can make an impact on your own decisions. Below are two stories that may influence you to start estate planning. One made national news, and one was personal that hit close to home.
LinkedIn post from May 30, 2023
What motivated you to start estate planning?
For me, it was news that a friend had terminal cancer.
He was only in his mid 30s.
Shortly after hearing that, I purchased life insurance. Then my wife and I began talking about who would take care of our kids if we received that kind of news. This led to us creating a will, but not until 4 years later.
I don't know why we procrastinated, but it took the early uncertainty of COVID to push us to finalize our will.
Was there an event that drove you to start planning?
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LinkedIn post from July 2, 2024
You've all heard the rags-to-riches story of receiving a surprise inheritance from a long lost uncle.
What about the one from the long forgotten ex?
If that were you, what would you do?
When talking about legacy planning, most focus is on how you can prepare your estate, including making sure your beneficiaries are up-to-date. Beneficiaries override a will. So even if your will states that everything you own goes to your spouse, if your beneficiary form says otherwise, that account will NOT go to your spouse.
Roy Sherman, CFA, CFP® referenced a story in the WSJ about someone who broke up with their boyfriend in 1989. Yet he had listed her as her beneficiary from a handwritten form in 1987. He passed away in 2015, but the beneficiary was never updated.
Instead of preaching about making sure your forms are updated, let's flip this to the recipient.
What would you do if you were the one to inherit this $1.15 million account?
You probably haven't seen or heard from this person in 40 years.
Shortly after you broke up you started your own family.
The right thing to do is give it back to the estate, right?
Well, $1.15 million is a lot of money.
And legally you have 100% claim to the money.
What is the ethically right thing to do here?
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Coaching Support
No matter your motivation, your family will deeply appreciate the work you put in to creating your estate plan. If you need help, Reluctant Executor has resources available to get you started.
Contact me at Bill@ReluctantExecutor.com to schedule your free consult.