Four Estate Planning Horror Stories for Spooky Season
Spooky season is in full swing! Yards are decorated with 12-foot-tall skeletons, haunted houses are open with jump-scares in full effect, and new Halloween movies are in theatres. If you’re ready for some stories that will send a shiver down your spine, read on! We’ve assembled four estate planning horror stories that you won’t want to star in.
1 – No Plan Polly
Polly didn’t believe in planning. She’d always lived her life on the fly and felt that her death should be no different – besides, her three kids could figure it out; once she’s dead, it wouldn’t be her problem.
When Polly died with no plan in place, the State stepped in – the State always has a plan, whether you like it or not. The State’s plan was a drawn-out court process called “Probate.” Since Polly owned real property in California, Polly’s kids had to go to Court, and the Court figured out who would get what from Polly’s estate. This resulted in fighting amongst Polly’s kids fighting each other over everything from the memorial service to how her property should be distributed, severing their relationships for the rest of their lives.
Once the Probate process was done, attorney’s fees came due. Polly’s kids didn’t have enough money on hand to pay the fees and they were forced to sell the property they inherited to cover the attorney’s fees.
If Polly had a Trust in place, this would have been prevented. Her estate would have been kept private and out of court records, and there would be instructions for her kids to follow (which could have minimized fighting), not to mention avoiding the Probate attorney fees.
Having a comprehensive plan in place would have prevented Polly’s kids from going through everything they went through.¨
2 — The DIY Disaster
Don didn’t want to pay an attorney to create a trust, so he created one himself. When he created the trust, he created a complex structure because he thought it would protect his assets. He also assumed that his home would automatically be placed into his trust once created. Don then left his trust in its binder and in a safe place for the next decade, never touching it.
Once Don passed away, Bridgette, his successor trustee, stepped in. She discovered that the structure wasn’t in line with what would fit his estate and that nothing was ever put into the trust. This meant that his assets were still exposed to Probate despite his attempts to avoid it. Bridgette had to hire an attorney to help her work through everything and attempt to get the Trust funded. She spent more on attorney fees than if Don had paid for a proper estate plan in the first place.
DIY estate plans seem great in theory, but they are often legally insufficient, and many people don’t know how to put their assets into the trust once it’s created, basically creating an empty box while their assets are still exposed to probate. If Don had worked with an Estate Planning Attorney, this could have been prevented.
3 — The Procrastinators
“We’ll get around to it next year,” was Mary’s response every time estate planning came up, “Once things calm down.” Mary and her husband, Josh, procrastinated for a decade. When Mary passed away suddenly, Josh was left to pick up the pieces.
Since Mary died without a plan in place, the State stepped in. Her separate property, including their home, was given to her estranged children, not Josh. Josh was forced to move out while grieving his wife and trying to untangle her estate.
It’s easy to put off doing an estate plan – no one wants to talk about dying – but estate planning isn’t about what happens when you die. Having an estate plan in place is an act of love that protects you and those you love from living a real life horror story.
4 — The Powerless Couple
Jack and Jill raised two beautiful children who were now off to college. They were excited to be empty nesters, ready to start the next chapter of their lives.
When their youngest, Joe, was in a severe car accident in a different state near his college campus, Jack and Jill couldn’t make any medical decisions for Joe, despite knowing what he wanted. Joe didn’t have any Powers of Attorney in place, meaning Jack and Jill couldn’t step in to manage his finances or make medical decisions.
Joe ended up having brain damage from the accident and couldn’t function on his own. Jack and Jill had to petition the Court for a Conservatorship. This meant they had to pay for an attorney and go through court proceedings while Joe’s bills continued to pile up.
If Jack and Jill had their children complete Powers of Attorney before heading to college, they could have stepped in for Joe much sooner and saved a lot of money by avoiding a conservatorship. While extreme, having Powers of Attorney in place for your college-aged kids lets you step in and help them during difficult times.
How to Avoid Horror Stories
The best way to avoid horror stories like those above is to work with an Estate Planning Attorney to create a comprehensive plan that fits your family and lifestyle. Book a consultation via the button below to discuss your options.