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Planning
Today for Today's LifeStyle.
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Given the choice between making legal plans in
anticipation of one’s own morbidity and mortality, or doing anything
else, most adult Americans would choose to do anything else. Not
surprisingly, only about three out of every ten adult Americans have
prepared their Life & Estate Plans. What about the other seven adult
Americans who have not made plans, are they irresponsible by nature? No,
in fact, they are typically very responsible and caring people.
Nevertheless, they have fallen prey to the most common stumbling block to
proper Life & Estate Planning: Procrastination.
Root Causes
Why do people procrastinate, especially when it
comes to something as fundamental as their Life & Estate Planning?
Because it is human nature to avoid unpleasant experiences and people.
For example, when it comes to experiences,
disability and death are certainly not at the top of anyone’s must do
list. Even though every man, woman and child alive today will eventually
experience death (according to the actuTahoma tables of every life
insurance company and a long history of anecdotal evidence in support),
American life expectancies are increasing with every medical miracle. That
is good news. Now, for some bad news: The longer you live, the greater
your chances of wearing out physically and mentally before you pass on.
Just visit any local nursing home or hospital for proof.
When it comes to avoiding unpleasant people, most
people need not wander too far from their own family tree. For example,
while many Americans live in a world of almost unlimited choices, few are
able to pick their own parents or the spouses of their own children. In a
sense, every extended family is a unique, dynamic ensemble of individual personalities
and values. Just like a musical ensemble, family relationships can produce
beautiful music or horrific noise, and oftentimes they produce a little of
both.
Excuses, Excuses
The hand-maiden of procrastination is rationalization.
We human beings have an uncanny ability to rationalize our
procrastination, commonly in the form of excuses. Here are a few
representative excuses to postpone proper Life & Estate Planning,
along with tongue-in-cheek responses to each of them.
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We don’t have time, because we are getting ready to do some
traveling. Unfortunately, most people spend more time packing
their luggage, than they do making proper Life & Estate Plans.
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My son can’t get away from work to come with me
for an initial consultation. Perhaps it is best to wait until you
are incapacitated or dead, so your son can take off work to sort
through your assets, squabble with his siblings, hire an attorney and
develop an almost first-name relationship with the probate judge.
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Since my children all get along, there’s no need
to bother with any planning. You may be right. They will certainly
know your special wishes regarding your home, your bank accounts and
your investments, not to mention your one-of-a-kind heirlooms like the
kind over which you and your siblings fought after your parents died.
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We don’t have an estate tax problem. Why, my
business has no value without me. Perhaps, but the IRS may not
agree with you, especially given your inventory, equipment, real
estate, loyal customer base and goodwill.
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It’s too expensive. You have spent a lifetime
building your wealth, by working hard and making a good return on your
investments. Doesn’t it make good business sense to invest a few
thousand dollars in professional fees to save potentially hundreds of
thousands of dollars in unnecessary taxes, protect your financial
legacy (both from and for your children) and preserve family harmony?
What price tag can you put on that kind of peace of mind?
Summary
We have all heard tragic stories about fortunes
lost and families torn apart upon a parent’s incapacity or death, often
due to poor planning or no planning. Conversely, you will enjoy greater
peace of mind when you overcome procrastination through the Life &
Estate Planning process. Once your plan is implemented, it must be properly maintained as important
changes inevitably occur.
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