DON’T WAIT FOR A CATASTROPHE; PLAN NOW

     When the World Trade Center and the Pentagon were attacked and the plane went down in Pennsylvania, we were forced to face our own mortality as we lost love ones and friends unexpectedly. Once again we were reminded that life and property can be taken from us with little or no advance notice. As is painfully aware to many of us in Florida, Hurricane Charley left devastation in its wake. Property damage is in the billions of dollars, hundreds of thousands of residents were without power for days, gasoline stations ran out of fuel, food spoiled, water and ice shortages occurred many people lost their lives. The news during that time was full of stories of victims who faced tragedy.

     It often takes a catastrophic event to make us fully appreciate the importance of preparing a will, a trust or other estate planning devices. Following the tragedy of September 11, 2001, people were fervently seeking to protect themselves from whatever unpredicted events might come next and the demand for wills and trusts rose almost 20% during the year following the tragedy. The demand continued to rise with each new catastrophic event such as the anthrax scares in 2002. Then in 2003 our country entered the war on terrorism taking our men and women abroad resulting in loss of lives and injuries. As tension rose and the potential for conflict increased, the number of wills for military personnel going to Afghanistan or Iraq increased by almost 40%. Then came the Hurricane of 2005, Katrina, which devastated New Orleans, Louisiana. Thousands of people were left homeless and many were killed by the flooding waters. Also during 2005 there was the devastating story of Terri Schiavo and whether or not she could remain on life support creating a whole new awareness of living wills.

     People in general are spending more time thinking about what would happen to their families if disaster strikes. Once predominantly the concern of the elder generation, wills and trusts are now on the minds of younger people concerned with who will receive their life's savings, family heirlooms and custody of their children. They want to leave nothing to chance anymore.

     Without proper planning your assets may be subject to probate (and estate taxes) at your death. Probate is the legal process for the payment of debts and distribution of property according to a Will, or by state law if you have no Will. The Court appoints someone to handle your affairs and the process takes about a year; for complex estates even longer. These proceedings are public open to the public for review. Furthermore, a separate probate must be filed in every state where you owned property. Probate could cost your family 6% or more of your total estate value. These results can be avoided with the implementation of a Living Trust and proper titling of your assets.

     A well thought out and properly drafted estate plan is one of the most compassionate things you can provide for your family. If you die unexpectedly, it can protect them from financial ruin. It can reduce discord among relatives concerning who will inherit your assets and ensure your children are raised by people you trust. Don’t wait for the next catastrophic event such as Florida’s Hurricane Charlie to motivate you to complete your estate planning. When preparing your estate plan be sure to hire an attorney or professional planner that will provide you with the secure feeling that you have done everything possible to protect your financial interests and your family’s future.

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