Happy Wednesday!!! This week we are going to discuss the 3 D's to plan for in your estate plan. Divorce, Disability, and Drugs - they're all out there. Are you prepared?
Divorce: this is something that seriously needs to be considered in both your estate plan and your business formation/succession plans. Things happen, people change, relationships change, the last thing you want to see is an ex come into an unexpected windfall. Additionally, you should never have an ex-spouse instantaneously become a voting business partner of a company you created! There are steps that can be taken prior to divorce that can retain assets in your nuclear family and protect your business partner. These are MUST have conversations with both your estate panning attorney and financial advisor.
Disability: A simple will does not protect your family or your assets if you become disabled or incapacitated. A will only works if somebody dies, NOT if they are incapacitated. How is your family going to access your assets or handle your affairs if you cannot? Do you have a health care proxy, a durable power of attorney, or a living trust? Have you thought about replacement of income if you are unable to work?
Drugs: Addiction ravages families. Do any of your documents block distributions to those addicted to drugs or alcohol? Do you want to turn your inheritance over to somebody battling addiction?
Nobody wants to discuss the 3 D's, but by addressing them in a preventative manner you can actually do a lot more good for your family in the long run. "What if" is a loaded question, BUT what if you wisely chose a structured plan from the outset? Have these conversations with your trusted advisors and avoid the chaos that ensues from denying the fact that these risks exist.
Until next time.
Wishing you and your family a safe journey, Amy