Many people think that because they have a small estate, a simple Will is all that is needed. This may be the case, but let’s look at a specific case when a small estate resulted in big problems.
Meet David. David is smart and is in year three of his four-year program as a music major. David has a live-in girlfriend and a band he plays in on the weekends. During the spring semester, David’s Aunt passes away and her Will leaves her estate to her favorite nephew. David’s Aunt doesn’t have a lot, but when her home and car are sold, and the bank accounts, CD, and small retirement plan are consolidated, David ends up with about $500,000. At 22 David now has half a million dollars to his name. The very first thing David does is buy a new, customized Jeep wrangler (which he crashes into a guard rail two weeks later). David then decides he and his girlfriend really needed a bigger place to stay, so he graciously signs a lease agreement on a house (in which he is the only one paying for rent and utilities), and of course David needs the latest and greatest gear for his band (which really is going to make it big any day now). Suddenly David is everyone’s new friend and life is good.
Five years later, David and his live-in girlfriend have broken up. He has a new girlfriend and they have a two-month-old baby. The girlfriend works at a 24-hour restaurant and he still spends nights and weekends playing in dive bars (the band really is on the way to making it big). David is leasing a house in a part of town that isn’t known for it’s charming neighbors, the jeep is gone, and his four-year degree turned into a seven-year degree. When David’s Aunt made her Will, she probably thought that she really didn’t own that much and that it would be nice to give a “little” to her favorite nephew. I’m betting David’s Aunt didn’t think she’d be financing a seven-year music degree, girlfriend and baby, and a dive bar band.
If David’s Aunt had talked to an estate attorney, her plan may have looked more like this: David gets everything in trust until he finishes college. The Trustee (a parent, friend, attorney) can use the money for David’s tuition, boarding, or any purpose they believe he needs. When David graduates or turns 30, he gets the rest of the money outright. Suddenly, five-year-later David looks more like a guy who graduated in four years, is teaching music at a local middle school, has an apartment, is looking to make a down payment on a house, and still plays in a band on the weekends for fun.
No estate is too small for a good plan. Let us help to secure the future you envision. At Grissom Law, we work with individuals and couples to ensure that their estates are left to the people they intend and that appropriate protections are in place. Every client is unique and the estate plan designed to meet your needs should be designed to meet your needs and the needs of your family. Call us today at 678-781-9230 to schedule an appointment to discuss your needs.
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