Estate Planning Myth vs. Reality #4 - Do You Really Need to Understand Your Estate Plan?
Estate planning myth: Everyone who has an estate plan was instrumental in creating it and understands what it says and does.
Estate planning reality: Many estate planning attorneys fail to think outside of the box when planning their clients' estates. In other words, many estate planning attorneys have a specific type of estate plan that the attorney will draft for 99% of his or her clients. For example, the majority of an attorney's clients may have Revocable Living Trusts, broad powers of appointment for the surviving spouse, trusts for beneficiaries until the age of 30, and the requirement that there always be two trustees serving together. Did the clients make these specific choices after discussing all of the options with their attorney, or did the attorney simply tell the clients that this is the type of estate plan that they should have? Does the client understand why they have a Revocable Living Trust, what a power of appointment is, or why they need to have two trustees instead of just one? Too frequently estate planning attorneys think that they know what is best for all of their clients when in reality each and every client is unique and so their estate plan should be unique.
The recommendation: Don't let your estate planning attorney decide all of the details about your estate plan. If the attorney tells you that you must plan your estate in a certain way, then understand why and don't be afraid to ask about other options. This is the only way you will be able to understand your estate plan.
No comments yet. Leave a Comment