By: Jeffrey M. Bloom, Esq., Law Office of Jeffrey M. Bloom, PLC
I get this a lot. People often say that they don’t have much money to leave to anyone, so why have an estate plan?
It’s an understandable question. But the reality is that estate plans are important for everyone, not just the wealthy.
First, young families with young children who are just beginning to build a nest egg are often in the greatest need of a well-drafted estate plan. For these folks, an estate plan will state who they want to care for their children if they die when their children are minors. The plan will also include a trust that will specify exactly how they want money to be used for their children’s health, education, maintenance, and support. The trust can also provide that money will be distributed upon the children reaching certain ages or upon the occurrence of certain events (such as a child graduating from college, getting married, etc. ). It can also provide for the withholding of distributions in the event a child is suffering from certain problems or living an unproductive lifestyle, such as drug addiction, mental health issues, financial troubles, among other things.
Second, regardless of your wealth, an estate plan is extremely important in order to spell out how you want to be taken care of, and who you want to take care of you, in the event you become disabled or incapacitated and unable to care for yourself. This is done through a combination of trust language (which will state the who, what, when, and how concerning the management of your funds for your benefit), a financial power of attorney (which gives a person authority to help manage your financial affairs), and a healthcare power of attorney (which gives a person authority to make healthcare decisions on your behalf in the event you become incapacitated). Without these documents in place, in order to care for you in the event you become incapacitated, your loved ones will likely need to petition the probate court for appointment of a guardian and conservator.
Third, an estate plan gives you piece of mind. Knowing that you have a plan in place that specifies exactly how you want your affairs handled and your family members to be treated in the event of your death or incapacity can be a great relief. I like to say that a well drafted estate plan provides you the greatest possible level of control from the grave.
Any questions, or if you are looking to start the process of drafting an estate plan, feel free to contact me.
Jeffrey M. Bloom is the managing member of the Law Office of Jeffrey M. Bloom. His practice focuses on probate litigation, estate planning and administration, litigation, and elder law matters, along with a niche practice in liquor licensing. He also handles traditional business matters, including business formation, shareholder disputes, noncompete and trade secret matters, and breach of contract disputes.
He can be reached at jeff@jmbloomlaw.com or (313) 300-9983. To learn more about him and his practice, visit his website at www.jmbloomlaw.com
Law Office of Jeffrey M. Bloom 