Got Stuff? You Need An Estate Plan
Got Stuff? You Need an Estate Plan
George Carlin would have been a great pitchman for estate planning. You may remember his stand-up routine on “stuff.” We all have stuff, and we’re pretty particular about our stuff. We move it around with us, it’s hard for some of us to get rid of it, and some of us don’t like our stuff mixed up with other people’s stuff.
What is an estate?
During your lifetime, you collect a lot of stuff, some of it valuable and some of it not. But because it’s your stuff, it means something to you. When you die, all your stuff, no matter how valuable or invaluable it is, is called your “estate.”
What is an estate plan?
In the simplest terms, an “estate plan” is comprised of your instructions for getting your stuff to the people you want to have it after you die, whether they be your family, friends, or a charitable cause.
How do I make an estate plan?
Your estate plan may be very simple, or it may be more complex, depending on how much stuff you have, how long you want your stuff to provide for the people you care about, and when you want them to actually get your stuff. For example, you’d probably want to wait a few years before a two-year-old receives Grandpa Joe’s antique pocket watch.
Once you’ve decided who you want to get your stuff and when you want them to get it, your attorney will put your instructions into a legal document called a will or trust. (There are distinct advantages to using a trust, but we’ll save that discussion for another time.) Also, while you can legally write your own, you’re much better off having an experienced attorney do it for you because an estate plan must meet certain legal requirements to be valid.
To take control of how your stuff will be distributed after you are gone, talk to one of our attorneys at Sjoberg & Tebelius, P.A. Call our Woodbury, Minnesota, office at 651-315-8856 for an appointment. We serve the entire State of Minnesota as well as western Wisconsin.
What if I die without an estate plan?
For people who die before they have executed their estate plan, the State steps in and determines how everything will be distributed according to the rules of intestacy. In such cases, neither you nor your family has any say in who gets your stuff, and someone you care about might get left out (e.g., a significant other, even one with whom you share a home).
Example 1: If more than one of your relatives want the same part of your estate (e.g., a valuable family heirloom), that can get messy and expensive, and a lot of your money will be used to pay the courts and the attorneys to sort it all out. (Happens all the time.)
Example 2: If you have children, and there is no other living parent, without an estate plan, the court will decide who raises them without the benefit of your nomination.
Bottom line: If have stuff that’s important to you, make sure you have a say in what happens to it after you’re gone.