What Happens If You Don’t Plan for Your Death
May 23, 2012 By Anderson, Dorn & Rader, Ltd.
We have all heard how important it is to create an estate plan. Despite this, many people put off creating one. We all also know how important it is to discuss funeral plans or burial wishes without loved ones, yet many people also fail to do so. The best way for people to understand the consequences of not preparing properly is often to provide an example of what happens absent preparation. Imagine the following scenario.
John dies unexpectedly at the age of 43 leaving behind his wife Mary and three children ages 13,9 and 7. Mary put her career as a nurse on hold when she married John in order to be at home with the children while they were young. John handled all of the finances and most of the accounts were in his name only. John had planned to sit down and create an estate plan but hadn’t gotten around to it. He told Mary that he wanted to be cremated, but nothing more regarding a funeral service. John’s parents are opposed to cremation.
Mary is suddenly forced to make funeral arrangements without the benefit of knowing what John wanted. Mary doesn’t even know what John would want done with his ashes because he never sat down and talked to her about it.
Although Mary knows that John had investment accounts and a savings account with a decent nest egg in it, Mary’s name is only on the primary checking account which barely has enough money it to cover a funeral. John did not leave behind a life insurance policy or a prepaid funeral policy. Mary cannot access in of the other assets that the couple owned until the probate court released them to her which could take months. Since Mary does not work, she has no immediate income. Mary has to turn to credit cards, friends and family for the money to cover the funeral expenses or to cover living expenses for the next few months.
While this scenario sounds bad, it could have been even worse. Luckily, John did leave something behind that Mary will eventually have access to. Mary may also be able to get back into the workforce eventually; however, John and Mary could have taken the time to create an appropriate estate plan that would have saved Mary a tremendous amount of expense, frustration and worry as well as prevented her from having to turn to other people for financial support at such an emotional time.
ABOUT THE AUTHOR: Bradley Anderson
Experienced estate planning attorneys Reno NV of the Anderson Dorn & Rader Ltd offers estate planning and business planning resources to residents of Reno NV.
Copyright Anderson, Dorn & Rader, Ltd.
More information about Anderson, Dorn & Rader, Ltd.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Mary is suddenly forced to make funeral arrangements without the benefit of knowing what John wanted. Mary doesn’t even know what John would want done with his ashes because he never sat down and talked to her about it.
Although Mary knows that John had investment accounts and a savings account with a decent nest egg in it, Mary’s name is only on the primary checking account which barely has enough money it to cover a funeral. John did not leave behind a life insurance policy or a prepaid funeral policy. Mary cannot access in of the other assets that the couple owned until the probate court released them to her which could take months. Since Mary does not work, she has no immediate income. Mary has to turn to credit cards, friends and family for the money to cover the funeral expenses or to cover living expenses for the next few months.
While this scenario sounds bad, it could have been even worse. Luckily, John did leave something behind that Mary will eventually have access to. Mary may also be able to get back into the workforce eventually; however, John and Mary could have taken the time to create an appropriate estate plan that would have saved Mary a tremendous amount of expense, frustration and worry as well as prevented her from having to turn to other people for financial support at such an emotional time.
ABOUT THE AUTHOR: Bradley Anderson
Experienced estate planning attorneys Reno NV of the Anderson Dorn & Rader Ltd offers estate planning and business planning resources to residents of Reno NV.
Copyright Anderson, Dorn & Rader, Ltd.
More information about Anderson, Dorn & Rader, Ltd.
View all articles published by Anderson, Dorn & Rader, Ltd.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
