The High Risk of Waiting

Why Otherwise Responsible People Procrastinate
Estate Planning

After practicing law in the field of estate planning for over twenty years, I have learned a few things about human nature and how people react when faced with the seemingly overwhelming prospect of estate planning. Especially in recent months, I have seen many situations that have saddened me because people had put off their estate planning until it was too late. After observing these tragic situations, I felt compelled to share some pertinent information that I have amassed. Hopefully, the heartache of those whom I have witnessed will be useful in preventing similar anguish in others.

It is both tragic and unconscionable that the average person takes more time to plan his family vacation than to plan his family's future. It is unfortunate, but your estate plan—or lack of it—may well be the manner in which you are remembered by your loved ones. In the event of your death, it is much easier for your family if you have a fully completed living trust. Lack of estate planning is a disaster waiting to happen. And tragically, that disaster will happen to the people you care most about. Even those who have thought ahead and prepared a traditional “will” can be thrusting a huge mess into the lives of their loved ones.

Why do otherwise responsible people put off estate planning?

1. They are intimidated by lawyers and the legalities involved.
It is easy to overcome this problem by finding an attorney with whom you feel comfortable. Do not be hesitant to ask him any and all of your questions, even if you think they might seem silly to him. Don’t feel bad because you don't understand the entire field of estate planning—that is why you are paying an attorney. Also, choose an attorney with experience in the estate planning field. You want, you need, someone on whom you can count to handle all the legalities for you

2. They feel that estate planning is too expensive.
This problem can be easily dispelled by thinking of estate planning as an investment, not an expense. The national average cost of probate is 5 to 10 percent of the value of the estate. So, if your estate is worth $300,000, the cost of probate would be $15,000 to $30,000. Think of it—investing even $1000 in a living trust would avoid probate and could save as much as $29,000! A living trust is actually one of the most profitable investments you can make. I have yet to see a probate that was less expensive than a trust. And furthermore—if the estate is over $600,000 in value, living trusts will also save money on taxes. Although I am a great proponent of patriotism, I do not want Uncle Sam, lawyers, and accountants to benefit from your life-long hard work.

"My father died more than four years ago. His estate is still going through probate . . . We still don't know what the total fees are yet, but we suspect they'll be close to $100,000 . . . When I heard of the living trust, I set one up for my family right away . . . My children are now protected from having to go through all the hassles, unnecessary legal fees, and heartache that I've been through."
- Mrs. Willcott

"When my brother died, it took me 18 months to settle the estate and I couldn't believe what the attorney charged. My brother had a modest estate and only one heir."
- Mr. Davis, Fountain Hills

3. They don't want to face their own mortality.
Many people find it difficult to confront their own mortality. And let’s face it, when people deal with estate planning . . . they are dealing with death. Some people have an unverbalized superstition that if they face death, it will happen. Well, the sad news is that if they don’t face death . . . it will still happen. Procrastinating estate planning does not procrastinate death! Rest assured that no one has yet figured out how to accomplish post mortem estate planning.

Instead of dwelling on estate planning as a death process, think of it as a life process. It ensures quality of life for your loved ones and peace of mind for you. Here are some examples:

Example A: Widow Smith requested that I prepare a trust for her. Then, for some reason, she never came in to sign the deeds that needed to be transferred to her trust. I called several times encouraging her to come to my office to sign the deeds. But she just kept putting it off. Ten years later, when her health was failing, Widow Smith’s children called me to see if their mother’s affairs were in order. I hated to have to tell them that, no, her affairs were not in order. Unfortunately, before we could even start the process to redo the deeds and get them signed, Widow Smith died. Now her extensive properties will all have to go through probate.

Example B: Betty had discussed with me the benefits of putting her assets in a trust and decided that it was the wisest course of action. She intended to do so. My office called her every two weeks for several months. Then, one day when she was called, her son answered. Betty had passed away only a few days earlier.

Example C: "I am so thankful that my husband and I decided to prepare our estate plan when we did. Six months after we signed our trust, my husband had a stroke. A year later, he died. I never thought that we would lose one another at our age. I guess you never know."
- Mrs. Johnson, Chandler

4. They don't want to take the time.
In our office, we hear on an almost daily basis, "Call me after my trip.” “Call me after the holidays.” “Call me after tax season.” “Call me when I'm feeling better." Procrastination comes from the Latin roots "pro" (meaning forward) and crastinus (meaning tomorrow). It means, “to put off until tomorrow.” In English, it has come to mean, “to put off intentionally or delay the doing of something that should be done." Procrastination, not ignorance, is the greatest reason that people die without making any plans for their estate. During my many years of experience in estate planning, I have witnessed firsthand the devastating results of procrastination:

Example A: Mr. and Mrs. J. attended an initial appointment to set up a trust. While our office was working on the trust papers, Mr. J. had a subacious hematoma, surgery, and then a stroke. We rushed the papers to the hospital. Fortunately, he was able to nod and make his mark, and the papers were signed. Luckily, he had established his wishes before the stroke and they could be carried out as he desired.

Example B: Mr. and Mrs. S. attended one of my estate planning seminars. They decided that they needed to think about it, so they put off getting started. Shortly after the seminar, however, their options were suddenly and immeasurably restricted when Mr. S. had a heart attack and became incoherent. Mrs. S. doesn't know when, if ever, she will be able to have a trust written.

Example C: Sometime after his stroke, Mr. J. (from story “A” above) called me with some deep concerns. He reported that a few weeks earlier his neighbor's wife, Sally, had suddenly gone into a coma and had been taken to the hospital. After a month and a half, the doctors still couldn't find the cause. Sally had only become worse and continued to go downhill. Sally and her husband had not established a living will, so she could not be taken off life support. The neighbors' financial resources were completely depleted by this tragedy. Because of this scare so close to his home, Mr. J. was calling our office to make sure that everything was in order for him and his wife. Which it was.

Example D: "We never thought much about preparing an estate plan until my husband became mentally disabled due to an auto accident. The problem now is that due to his disability I cannot make any decisions on his behalf without first consulting with the judge. I cannot prepare the documents needed to protect our family's future because my husband is not competent to sign them. My hands are now tied."
- Mrs. Owens, Santa Fe

These events, and dozens more like them, are actual experiences brought to my attention. I share them with you, not to scare you or depress you, but to motivate you. The best time to stop procrastinating is now. Now!

In his brilliant book The Seven Habits of Highly Effective People, Steven R. Covey explains the concept that certain actions or activities are important, though not urgent. Estate planning falls into that category. Urgent things demand your attention right now, this instant—like a phone ringing or a dinner burning. Estate planning becomes urgent only when a life threatening event like a heart attack or an accident occurs. But then it may be too late. The process of estate planning isn't nearly as painful or time consuming as most people fear. As with any task that seems too hard or complicated, one must subdivide it into smaller, easier steps. (Even an elephant can be eaten . . . one bite at a time.)

So what can you do, right now, to dispel these reasons for procrastination?

Do something today. Talk to your spouse. Make a phone call . . . or two. The estate planning process requires several weeks from initial consultation to signing. I implore you to do it before it becomes urgent! Even if you don't choose to use our services, please have it done somewhere . . . and start today!

If you prefer to proceed without an attorney, I recommend our Do-It-yourself Living Trust. Created by an estate planning attorney with over 30 years’ experience, it is the finest guide available for setting up a living trust. And it will cost you much less than you would pay an attorney!

©2004 Steven W. Allen, P.C.
The High Risk of Waiting