Winsor Law Group Blog

By: Matthew K Palfreyman, Esq.

              As a child, I enjoyed Halloween.  Getting candy was nice, but I think I mostly enjoyed working with my mother to put together an interesting costume to wear to school and for trick-or-treating. It was fun to put together pieces of random clothing and sometimes a little bit of crafting to create a unique and funny costume.  The entertainment value of the costume was what mattered most to me.

It was not that long ago, and yet it is was a very different time.  I did not think too much or worry about the dangers the media seems to highlight or warn the public about every year.  Ignorance was bliss in that respect. Maybe it is just adulthood, but I feel like the holiday has changed significantly for me.

            Like Halloween, estate planning has also evolved over the years as well. It is in many cases, a different kind of environment for families today than it was a few years ago.  There are new dangerous tricks in the marketplace to be aware of, but many of them are really just very old tricks presented in a different, new costume.  Here are some estate planning tricks and treats for you and your family to consider:

Trick #1:  The get-a-will-because-the-government-will take all your money trick. 

            This is a fear tactic used by practitioners and legal document preparers alike to motivate consumers to buy their services.  Their solution is a form provided that they think “most people” use, and the provider asks you to simply fill in the blanks with names. If the service provider does not ask insightful questions about you, your assets, or about the people named in the documents, that is a serious red flag.  If the peddler is a non-lawyer professional or website, you can expect to see an “I am not responsible for what you do with this model form” clause somewhere.  Be warned, the internet is full of half-solutions and tricksters. Getting the details right and the plan coordinated is the real way to save money.

            What’s the real truth? The government usually takes very little, unless someone already owed the government a lot of money prior to death.  The true expenses are transactional related, and those costs vary depending on the kinds of assets being transferred and the required processes for the transfers.  Yes, probate is expensive, but it is mostly the attorney fees from dealing with complex problems, like dealing with creditors or negotiating disputes among heirs, that causes a large price tag, not the charges from Uncle Sam.

Treat # 1:   Getting the right plan is more affordable than most realize.

People often need much more than wills.  Modern planning strategies are available to get it right and save money in the long run.  There are also inexpensive planning options that do not require trusts or wills, but those methods have very important limitations that must be clearly understood.  The right estate plan, like an awesome Halloween costume, will fit the maker well and compliment their unique personality and features.

Trick #2:  I don’t have very many assets so it’s not important or it can wait.

This is the trick we play on ourselves or it’s a false perception perpetuated by social tradition or wilful ignorance.  Because of guilt or pride, the hard truth to accept is that each of us, regardless of our own personal wealth, are critically important to those whom our life decisions most affect.  Estate planning is not about wealth, it is about the fundamental rights of decision making.  Decisions about assets after death is only one of several important issues for consideration.  I am never surprised when the media reports that yet another famous celebrity died without a will because human nature is reliably predictable.  Aren’t the consequences usually bad when someone who must make an important decision delays or fails to make that decision? No one lives without consequence.  All people have rights. All people have personal affairs.  Estate planning decisions are fundamental and cannot and should not wait.

Treat #2:  Picking a plan is like picking what you want to hand out to your trick-or-treaters.

           It really is up to you; just remember that the trick-or-treaters are your loved ones.  Like a candy bag with known family favourite treats, a living trust can be customized to desires and needs, delivering the right candy, to the right people, and at the right time and manner.   Other planning methods, like will-based plans, are like those generic candy bags with some good pieces, but mostly cheap candy.  The candy gets handed out, but there is a perception of indifference that the trick-or-treaters will sense.

            Having no plan at all is like choosing to hand out those jelly beans with the weird and unknown flavours.  Things could get interesting, and your house probably will get vandalized.  Although you saved money by not paying more for candy, the house cleaning bill costs way more.

            So in conclusion; enjoy the Treats and don’t get caught up in the Tricks. On behalf of Winsor Law Group, may you have a Happy and Prosperous Halloween!

*The information provided in this article is of a general nature and reflects only the opinion of the author at the time it was drafted. It is not intended as definitive legal advice, does not create an attorney-client relationship, and you should not act upon it without seeking independent legal counsel.