Happy Father’s Day to all the dads, grandpas, uncles, and father figures out there! There are many kinds of fathers, from the beer-drinking to the book-reading, from the golf-loving to the car-fixing, to all of the above. And, just like there’s not one kind of way to be a dad, there’s no single type of father that needs an estate plan; everyone needs an estate plan regardless of the size of your tool shed. That’s why today is a great day to talk to your dad about estate planning.
Of course, estate planning can be a difficult subject to broach over grilling or yard work, but it’s an important conversation to have to see where your father is at. And, you can’t go buy an estate plan at the store or have one made for him, but in terms of long-term value, an estate plan is one of the best moves your dad could make.
Your father has likely taught you so much over the years. This could be your opportunity to give back to him and help him out with something for once by sharing information or just offering encouragement to complete the estate planning process. Let’s consider a couple of different scenarios.
If Your Dad Doesn’t Know Much About Estate Planning
That’s okay! This is your chance to share some important basics about what estate planning entails. There are three main points you can pass along and then feel free to direct him to an experienced estate planning attorney who can explain the rest.
- Without an estate plan, there are major detriments. You cannot choose who receives your assets, how much and when. If a father has minor children they cannot choose who is the main guardian for the children if something were to happen to both parents/guardians. Without an estate plan, you also cannot choose your executor (the person to carry out the closing of your estate). Furthermore, if you die without an estate plan, all your assets— house, savings, retirement plans, and so on—will pass to your heirs at law as specified under Iowa’s statutes. Also, without an estate plan, the probate process can be even more cumbersome, time-consuming, and difficult on what is likely to already be a stressful time for loved ones.
- A basic estate plan includes six key documents. An estate plan questionnaire helps to organize important information in a single document. (Your estate planner will use this to ensure the documents are individualized to your estate’s unique needs.) A “last will and testament” is just one of those documents. The other documents in a basic estate planning package include: health care power of attorney; financial power of attorney (including an advanced directive, if desired); disposition of personal property; and disposition of final remains.
- Your dad may be in need of a trust depending on his estate planning goals, size of the estate, and other considerations like ownership business.
Getting started with the process is easy. I recommend starting with my free, no-obligation estate plan questionnaire or giving me a call.
If Your Dad Already Has an Estate Plan
Give your dad a high-five because he’s ahead of the curve! Seriously, more than half of Americans do not have essential estate planning documents. However, there may be some points that you dad forgot about or needs to revisit.
Beneficiary Designations
Beneficiary designations are notoriously forgotten because they can be set once and then, even if things change, people forget to switch the name. Imagine the scenario of Beneficiary designations (sometimes called PODs and TODs) on accounts like savings and checking accounts, life insurance, annuities, 401(k)s, pensions, and IRAs. Make sure that designations are correctly filled out and supplied to the appropriate institution. Of course, remember to keep these beneficiary designations current as well.
Revisit Regularly
If things change in your personal life you may well need to update your estate plan. Some examples are if marital status changes; a new child or grandchild is born; a named beneficiary passes away; you move to a new state or buy property in a different state; or there’s a significant change in financial situation.
Additionally, sometimes changes to laws (like the federal tax code) can impact the structure and most advantageous tools for estate planning. Any estate planner worth their weight should be able to tell you if your current estate plan aligns with any changes to laws.
I recommend to my clients that they review their estate plans once a year to make sure everything still fits with your estate planning goals.
Give the Best Gift this Father’s Day
I understand you can’t really “give” your dad an estate plan, but you can help him check this major legal “must” off the life checklist by helping point him the right direction. You can also offer your assistance when it comes to gathering important documents or information for the Estate Plan Questionnaire. Let your dad know that when he’s ready to discuss his planning decisions that you’ll be there to listen, and if necessary, bring your siblings (if any) and other family members to the table so that everyone is on the same page. (Note that all the aforementioned information totally applies to mothers too!)
Questions, concerns, or otherwise from you or your father? Contact me at any time via email or phone (515-371-6077). I also offer a free consultation and make house calls!
