Summary: Some people's estate planning needs can be met effectively through the rules of intestate succession. The problem is that the percentage of people for whom that is true is very, very small. That number is much smaller than the number of people who currently have no plan and who, if they died today, would have their estates go through intestacy. There are many reasons why you might need a plan. Maybe you have an ex-spouse who you want to have a role in your estate plan. Maybe you have a beneficiary whom you want to receive assets at a future (such as graduation, marriage, etc.) In these and many more scenarios, executing a detailed and well-crafted estate plan is the right way to take control of your legacy.
Sometimes, a story may involve some very
unique facts but still may provide some lessons that can apply to a wide
audience. Take, for example, a recent court case from Illinois, which included
some unusual facts, but nevertheless contains some estate planning reminders
that many should heed.
The case involved a man named Finis, who
was in his 60s and who had no estate plan. He did have some possessions that he
owned, including a Jeep SUV. He also had some estate planning goals. As his
health deteriorated and his time grew short, Finis stated that he wanted the
Jeep to go to his young grandson, Rakayne, who was still in high school. Finis
stated that he wanted his ex-wife (Rakayne's grandmother) to hold possession of
the SUV until the grandson graduated high school, at which point the
grandmother was to transfer the title on the Jeep to the grandson.
Despite these very clear and very
specific estate planning objectives, Finis still did not get an estate plan.
The fact that you are in poor health, or even on your death bed, does not
prevent you from obtaining an estate plan. As long as you have your mental
competency, you can create a plan. Finis, however, died without a plan in early
May of 2014. Rakayne, who graduated high school in May 2015, received title to
the Jeep in April 2015.
Along the way, though, there was a
problem. Finis's son, Antwan, who was also Rakayne's father, had used the Jeep
in a theft crime. This led to the State of Illinois invoking that state's
forfeiture laws and taking the Jeep. The court case was full of peculiar facts.
Antwan told authorities that Finis left the Jeep to him, which was impossible
because Finis never executed an estate plan. Rakayne's grandmother claimed that
she was entitled to transfer the Jeep to Rakayne because she received the Jeep
through intestacy. That was also impossible because she was Finis's ex-wife and
ex-spouses don't receive anything under the rules of intestacy (in Illinois or
anywhere else.)
So, even if you never have a run-in with
law enforcement, or have had to deal with your state's forfeiture laws in any
way, there's still a lot to learn from this family's unfortunate situation.
First, the rules of intestate succession are very much a
"cookie-cutter" type of plan of distribution. If you have any unique
circumstances in your life, such as an ex-spouse whom you want to receive or
handle the distribution of certain assets, then that raises the very high
probability that doing nothing (and relying on intestate succession) likely
isn't the best way to go.
Second, if you have specific goals you
want to accomplish in terms of estate planning, don't leave things open to
uncertainty. Take control of your legacy and create a plan. That way, you are
the one dictating what will happen to your assets. At the very least, get a
plan with a last will and testament, in which you can enshrine you preferences
and objectives in a valid and enforceable written document. In Finis's case, he
might have benefited from even more extensive planning than just a plan with a
will. He had some specific goals he wanted to accomplish in terms of leaving a
distribution to his underage grandson. If he wanted someone else, like the
boy’s grandmother, to hold possession and title of the vehicle until a future
date, like the boy's graduation, a plan with a trust might have been helpful.
With trust planning, you can dictate, not only who gets each asset, but also
when they get them, and who should oversee and manage your assets until those
future dates occur.
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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