Will Structure Also Matters

I had a meeting with a wonderful client last week, and while most meetings in general are not depressing by nature, this one had some heavy overtones.  His mother had passed away recently and he was in charge of "everything."

I can't say that I started my business and immediately sat down with my estate planner to write my last will and testament.  I wasn't that smart about it.  I didn't have a will prepared until much later, after I had a business, a child and a wife.  That wasn't all that smart, in my opinion.  What would have happened if I had died before I had a will in place?  It could have been a nightmare for those sorting out the pieces afterward.

My client's mother had a will and a couple of trusts set up.  Her intentions were good, but they were not fulfilled to the extent possible.  She hadn't received the best advice on how to structure things and now my client had some serious heartburn as he was reading through everything.  Based on what I know right now, he won't experience horribly adverse tax consequences as a result of anything that happened, but the time he has spent chasing his tail and reading power bill receipts from 1987 is irreplaceable.  I can only imagine how much happier he would be spending his time at the helm of his business as opposed to emptying 4 filing cabinets of useless paper.

I have asked some of you about the existence of your wills.  I will do a better job of asking all of you as the year wears on.  If you need a referral, I have some great ones.  But, for the love and sanity of your loved ones, review the will you have now and make sure it does its job (because things change over time, and the will you wrote in 1980 may need revising); or sit down with a trusted attorney and prepare it for the first time.  There are cases where serious tax problems can emerge from the improper handling of your assets upon your death, because tax structure matters.

http://www.accountingtoday.com/debits_credits/Gandolfini-Will-Leaves-Family-Exposed-Heavy-Estate-Taxes-67362-1.html?ET=webcpa:e7377:53503a:&st=email