“Always plan ahead. It wasn’t raining when Noah built the ark.”
— Richard Cushing
Liam Payne: He recently died at 31 and he didn’t have a Will. He was not married, but had a partner, who he was apparently supporting financially. He also had one son. His 32-million-dollar estate all went through probate and was distributed all to his 8-year-old son, through the intestacy statute. Since he didn’t have a Will or a trust that limited distributions to his son at certain ages, his son is likely to receive whatever is remaining in the estate outright. The Court appointed someone to manage the funds for his son until the age of 18. Imagine how costly it will be for the Estate to be overseen by the Court for 10 years.
Creating a revocable trust during your lifetime avoids all these issues. A properly funded trust can avoid the court and distribute assets according to your wishes, not according to the state intestacy statute. Instead of a child receiving assets at 18, the Trustee, who you appoint, can keep them in trust until the child is older without the cost, inflexibility and legal red tape of the Court.
You don’t need 32 million dollars to benefit from a good estate plan. It is important for everyone, but especially for anyone who has a partner, but is not married, blended families, anyone who has a minor child, or a beneficiary with a disability or substance abuse issue, or anyone who is providing support to someone who is not an heir.
Lesson: Trusts are gifts to your loved ones. Don’t wait for “someday” to get your affairs in order.