Summary: Many people make the mistake of thinking that they
have an unlimited time on this earth. Others are directly faced with the
knowledge that their remaining time is very limited. For those in this latter
group, they should act swiftly to make sure that they have an estate plan in
place and that it is properly updated. They should not let their grave illness
stop them from planning, as proof of serious physical illness alone is not
enough to constitute an unsound mental state that would invalidate any plans
(or plan changes) they make.
Being near the end of
one's life can prompt a variety of reactions. For many people, one reaction
they experience is a strong desire to put their estate affairs in order. For
anyone in this position, this is an urge worth following. Courts have
recognized that, even if you are gravely physically ill, you can still make or
change an estate plan as long as you have a sound mental state. A challenge to
your estate plan based solely upon your physical illness will not succeed in
overturning the plan you put down in your estate documents.
One recent case
exploring these issues came from Maryland and involved the estate plan of a man
named Eugene Zook. Mr. Zook created a living trust in 2007. That trust called
for his assets to be distributed, upon his death, to his three children -- a
fairly typical plan for a parent. The next year, Mr. Zook returned to his
lawyer's office. He was seriously ill as a result of cancer. Mr. Zook wanted to
(and did) amend his trust. Mr. Zook's amended trust named his daughter, Susan,
as trustee and placed the 1/3 shared of another daughter, Mary, into a special
trust that would pay out Mary's share in 20 payments over a period of 10 years.
This kind of arrangement, often called a "spendthrift trust," can be
very useful for beneficiaries who are not good with money or have complicated
legal situations that would make receiving large sums of money all at once
potentially harmful.
22 days after he signed
the trust amendment, Mr. Zook died. Shortly thereafter, Mary sued to invalidate
the 2008 amendment to her father's trust. She argued to the court that her
father was not of sound mind when he signed the amendment document. The court
rejected this challenge. The only proof that Mary had to offer the court was
Mr. Zook's cancer. The court's ruling made it clear that evidence of grave
physical illness like cancer alone is not enough to show that a person is not
of sound enough mind to make or change an estate plan.
Being seriously or
gravely ill, even if you know you are seriously or gravely ill, is not a
barrier by itself to making, or changing, an estate plan. To the contrary, if
you have your mental faculties, you should act very swiftly to make sure that
you have a plan in place and that your plan is correctly updated. That way, you
can be certain that your loved ones will know what your objectives are for your
estate. With that accomplished, you can be sure that the legacy you leave is
exactly what you wanted.
Summary: Many people
make the mistake of thinking that they have an unlimited time on this earth.
Others are directly faced with the knowledge that their remaining time is very
limited. For those in this latter group, they should act swiftly to make sure
that they have an estate plan in place and that it is properly updated. They
should not let their grave illness stop them from planning, as proof of serious
physical illness alone is not enough to constitute an unsound mental state that
would invalidate any plans (or plan changes) they make.
This article is published by the Legacy Assurance Plan
and is intended for general informational purposes only. Some information may
not apply to your situation. It does not, nor is it intended, to constitute
legal advice. You should consult with an attorney regarding any specific
questions about probate, living probate or other estate planning matters.
Legacy Assurance Plan is an estate planning services-company and is not a
lawyer or law firm and is not engaged in the practice of law. For more
information about this and other estate planning matters visit our website
at www.legacyassuranceplan.com.
This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
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