Estate Planning Sales Pitches to Avoid

Too often people respond to fear when making estate planning decisions. That can be a mistaken way to proceed. Unless you are facing an urgent matter that requires immediate action, taking more a deliberate and thoughtful approach is likely to be better. Too often people succumb to the seductiveness of simple minded “magic bullet” planning answers like: “Use a living trust to avoid probate,” or “Buy a [fill in the blank] life insurance policy,” or “You need a [fancy trademarked name] Trust,” and so on. Snake oil may be good for the salesperson but not necessarily good for you the customer. Too often these pitches revolve around a single idea, which even if helpful, can mislead you from tackling the real issues in your planning, family or finances. Sure, a revocable trust can reduce the cost, time delays and hassles of probate, but there are other ways to accomplish that goal too. But avoiding probate is rarely the most important goal. You might have significant risks from potential lawsuits. We live in a very litigious society. If you set up a revocable trust that will do nothing to protect your assets from claims. You, family members, or heirs may have drug, alcohol or other mental health issues. Unless whatever trust you set up is tailored to address those concerns, you may not have addressed one of the most important issues you face. The seductively simple and unemotional pitch “a revocable trust avoids probate” may dissuade you from tackling the tougher and more important personal issues. The bottom line is take a broad, holistic and realistic approach to your planning. Use sales pitched items only as appropriate to your real plan.