Estate planning: If there's a will, there's a way

Gayle B. Ronan • E-mail

They say death and taxes are life’s only certainties. Perhaps not so coincidentally, both require significant paperwork. And in the event of the former, knowing where to find the information may be among the kindest legacies one can leave. 

“Everyone needs some kind of plan,” says Laurie Siebert, CPA and a certified financial planner with Valley National Advisers, Inc. in Bethlehem, Pa. “Yet, estate planning tends to be the elephant sitting in the room that many people seem determined to ignore,” she adds.

Those trying to ignore this particular inevitabilty are in good company. According to a recent survey conducted by the online legal document service provider LegalZoom.com, 70.2 percent of Americans lack a last will and testament. That level is consistent with prior years’ surveys and persists despite the existence of sites like LegalZoom.com and Nolo.com. Both offer forms and formats for speeding along the drafting of wills and powers of attorney, making a team of high-priced lawyers and ensuing meetings entirely optional given many individuals’ circumstances.

Even worse, survey respondents who were parents with minor children were the least likely to have prepared a will. The most commonly cited reasons: Disagreement or indecision over naming the children’s legal guardians.

Unfortunately, not making such decisions still has consequences. “If you don’t decide, the state will. However, the results will likely be undesirable for everyone,” says Siebert.

Deciding about the welfare of children and assets does not just apply to parents — new, middle-aged or otherwise — or to individuals in poor health. Even the young and the single need a plan.

“As soon as you start a career, you are likely to have assets such as a 401(k), IRA, or even an employer-paid insurance policy,” observes Joseph Corriero, a director in online marketing for Merrill Lynch in Hopewell, N.J.  All require thought and decisions regarding beneficiary designations. They also require periodic review to ensure the listed beneficiaries are still those who should be named and their contact information is current.

But beyond that a mechanism is also needed so that loved ones, attorneys or whoever would respond in a time of personal crisis would know how to contact employers, doctors, and landlords, for example, or where health insurance cards and bank records are kept. 

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