One of the comments we often hear from clients is that they just want something simple. And yet when they review the estate plans we create for them, they often comment about how thorough and complete they are. At the end of the review, they generally feel like all their bases are covered. But they feel this way because their plans are generally not simple.
What does it mean to be simple? When people say they want a simple estate plan, they generally are referring to the length of the documents we create and say “is all of this really necessary?” I generally tell them that what we are looking for is not simplicity in the documents, but simplicity in the implementation.
Think of the automobiles we drive and the ones we owned years ago. When you compare them, the old ones were much simpler that what we have today, but just because they had fewer parts (or “bells and whistles”) doesn’t mean they are easier to operate. When I think back on some of the older vehicles I’ve driven, they were much different. They didn’t have power steering, but that just made them harder to turn. They didn’t have an automatic transmission, so I had to use a clutch and manually shift gears. They didn’t have automatic windows, so I had to crank the windows open and closed. No intermittent wipers, so constantly switching between on and off. And one the best features in newer vehicles is the sensor that tells you when your tire pressure is low, so no constantly having to gauge the tire or driving around on underinflated tires. More complex? Definitely. But easier to operate? Absolutely.
We need to use that same mindset with our estate planning. Are the trusts many of our clients use more complex? Yes, they are. Results of that type of planning? No probating a last will and testament (if properly funded). Creating lifetime trusts for children? Do we really need that? No, you don’t, until one of your children gets divorced, and you see that your soon to be ex-son-in-law or daughter- in-law isn’t able to try to grab a part of your child’s inheritance. Or that you can get professional money management that your child is incapable of getting on his own because they don’t manage money well, only spend it well (sort of?)
Simple can be good, for not simplicity for simplicity’s sake. Covering all your bases isn’t always simple to do, but it sure is nice when you know they are covered. If you aren’t feeling like you are covered, give us a call and schedule a review of your plan.