PREPARING FOR THE INEVITABLE

Neal A. Deutsch, CFP^®

Published in Rivertown Journal, August 2009

In the recent past, I have had the experience of losing my father at age 82. As a Financial and Estate Planner, I have been part of planning hundreds of estates, and unfortunately, helping to settle far too many. Being that this time it was a personal family event, it gave me insight into the feelings and family dynamics that go along with the passing of a family member. For me, estate planning comes naturally- perhaps having 25+ years of experience helps, along with hearing and being a part of hundreds and hundreds of family situations. Each family is different, with varied needs and wishes. There is, however, a commonality to most cases that applies to us all in preparing for that time when we are no longer here in body and soul.

Each of us has our own habits, outlook on life, and concept of what is important to us on a personal level. For most of us, being in a caring and loving environment is paramount to our daily existence, and we live to be loved by those we surround ourselves with. However (and if one thing you have learned from me by now, I usually have a “however”) we also have the side of us that is all about ourselves. You’re allowed: in order to enjoy life, we need to do something for ourselves periodically.  But what, you ask; does this have to do with estate planning?

Planning your estate for the inevitable involves looking not only at what you would like to happen once while you are gone, but also involves your lifestyle during your lifetime. The simple basics are the creation of your legal documents- wills, durable power of attorney, living will, health care proxy, trusts, etc. While this may sound simple, the fact is that statistically, 4 out of 5 families (approximately) have not prepared the above because of varied reasons: lack of time, lack of interest, indecision, or the theory that if you do a will you will then die. Don’t laugh…I have heard this too many times. I have also heard the same excuse for a lack of life insurance planning. While I have been the advisor to dozens of folks who lost a loved one, the cases where there was a lack of legal documentation has led to a legal mess. Do yourself and your family a huge favor: if you have not reviewed your legal documents in the past 5 years or so or if you have never done a will, now is the time-trust me- those you leave behind will thank you over an over again.

Now…let’s revisit the comment about how you live your life now. Attention men- this one is for you. Let’s use your garage, for example. When’s the last time you cleaned it out? You know that stereo you have up on the shelf that hasn’t worked since you had a white suit? What are you saving it for? Go ahead; be honest with yourself…take a look in “your domain.” If you can’t bring yourself to clean it out now, imagine if you left it behind for someone else to do…getting’ the picture?

Just so you don’t think I am picking on the men, let’s talk closets. Think about those clothes you have not worn in the past two years, and how many people, men women and children, that don’t have anything to wear. Wouldn’t you feel better knowing you helped those in need during your lifetime, and you didn’t have to die for it to happen? Think about all the space you could use once you have had the cathartic experience- not to mention the potential tax deduction.
In summary, just think about what it would be like if your soul left today: what would you be leaving behind? Is it something you would like to have set on your plate. unexpectedly? If not, it’s time to set a plan in motion to put your personal estate in order. Remember, the bell bottoms you throw away today may just relieve the stress of your loved ones tomorrow. And if you don’t know how to set a plan in motion, give me a call. I’ve done it a few times.

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Neal A. Deutsch is a Certified Financial Planner^™  & Registered Securities Principal, offering securities through First Allied Securities, Inc., member FINRA/SIPC.  Neal is President of Chestnut Investment Group in Suffern, NY, helping people with financial planning since 1984. Please feel free to call Neal at 845.369.0016 or email him with your questions at neald@chestnutinvestment.com. Visit his website at www.chestnutinvestment.com