Summary: Your estate plan is designed to accomplish many things. One of these things is to give you and your loved ones peace of mind from knowing that you are truly prepared for whatever comes next. With a comprehensive estate plan, you can be confident that, come what may, your plan will be ready.
There is common saying among people in
the various planning fields. This saying encourages people to “expect the best
but plan for the worst.” Planning for the worst is a wise and cautious way to
make sure that, whatever comes your (or your family’s) way, you are ready. Your
estate plan can benefit from this type of thinking as well.
There are several things you can do in
order to make sure that, even if the nearly unthinkable happens, your plan can
handle it. One example of this type of circumstance is having the deaths of you
and your spouse take place in close succession. Depending on just how close your
deaths might be, this situation could cause problems for your family.
Some people sometimes say that they hope
they pass away at the exact same time as their spouse. Of course, if that
happens in real life, it has the potential to cause complications if your and
your spouse’s estate plans, like a lot of people’s plans, leave everything (or
a sizable distribution) to the surviving spouse. If you die together, did your
spouse survive you or not?
There is a statutory system for dealing
with these types of circumstances. It’s called the Uniform Simultaneous Death
Act. Like intestacy laws, it is a one-size-fits-all system set up by the state
legislature. How close together do your deaths have to be to be count as
“simultaneous”? It varies from state to state, ranging from 120 hours to 120
days.
If you don’t want to leave your plan’s
distributions up to your state’s laws, there is a way to take control. You can
simply insert a simultaneous death clause into your estate plan. In this
clause, you can state that, if you and your spouse die together (or die in a
manner that makes it impossible to tell who died first,) then your assets shall
be distributed as if you died first. (You can also make the clause say that, in
cases of simultaneous death, your spouse died first. The order is up to you.)
Of course, simultaneous deaths may not
be your only concern. For example, what about having your deaths fall close
together but just outside the definition of “simultaneous deaths”? If your plan
centers around Last Wills and Testaments, this may force your family into
having to go through probate administration twice
within a very short period time. Obviously, one way around that is to plan to
avoid probate and include one or more living trusts in your plan.
Another way around this problem is to
include another clause in your plan that says a beneficiary must outlive you by
a set period of time in order to receive his/her distribution. Whichever method
you choose, the scenario of simultaneous deaths is just one of many that
demonstrate the many various things that can happen to your family and
complicate estate planning matters. The best way to protect yourself is with a
truly comprehensive plan that ensures that your plan has planned for all
reasonably possible possibilities.
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.
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