Bite-Sized Bits of Knowledge

Why People Fail to Plan – and What to Do for Your Plan

We’ve written in the past about the frustratingly high percentage of people who do not have an estate plan. People who, if something happened to them today, would leave their assets – their legacy – completely at the mercy of the law, with no personal say in what happens after they’re gone.

In this post, I want to break down some of the reasons why people don’t plan, why failing to plan is such a truly bad idea – no matter who you are – and what kinds of things you want to have in your plan once you see the light and realize what a smart decision it is. 

Reasons People Don’t Engage in Estate Planning

Read Transcript

Hi. Thanks for stopping by for another dose of Bite-sized Bits of Knowledge, where we give you a meaningful amount of information in a short amount of time. Today is a really important video. Today we’re talking about the reasons people fail to plan or what happens when you have a poor plan. And we’re going to conclude with how we can help that.

So, starting with the reasons people fail to plan – there are many. I would start with people have a misunderstanding that they don’t have an estate. They’re not wealthy. They don’t have this image of a gate that opens up to a driveway when you drive up to a mansion with a butler. “I don’t have that. I don’t have an estate. I don’t need to do estate planning.”

That could not be further from the truth. Everybody has an estate. As long as you have assets, beneficiaries, and creditors, you have an estate and you need to plan for it. So let’s just put that one aside as being just wrong.

Another reason people don’t plan is that they don’t want to talk about it. They assume that estate planning really just is about death. It’s about the will, and it’s about the who gets my stuff that we talked about in one of our early videos. And I hope at this point, I’ve made it clear that estate planning really is more about your family. It’s not about you. It’s about your family. It’s about the legacy you’re leaving behind. It’s about the trail of destruction you’re leaving behind.

Is it the model that you want to be replicated by your family? I’ve seen it both ways. I’ve seen it both ways. I’ve had people call me and say, “I want to do my estate plan because my father passed and it was just such a seamless and smooth transition. I just really want to do that, too. I want that for my family.”

And of course, I’ve seen the opposite where there’s – it’s like the Diehard movies with just the chaos and destruction, but behind the scenes the family is cleaning it up and it’s expensive, it’s time consuming. It’s heartbreaking, really, because I don’t think that the people that died would have really wanted that if they knew better. 

So there’s a misconception of not thinking you have an estate. There’s the fact that you don’t want to talk about it because you have a misunderstanding as to really who the benefit is for. I would say people in our experience, people don’t really want to sit down and focus on it. It seems burdensome, it’s mysterious, it’s unknown. And that’s fair. 

But I’m working really hard here in my videos to give people information. I have over 500 pages on my website giving you the information. I don’t want you doing it yourself because that’s a mistake. But I’m giving you the information so you at least are more informed and at least it’s softening that wall. 

Another reason is that people can’t afford it. They don’t want to dedicate the money to it, and that’s a reasonable concern. We’re not the cheapest firm in the space. We’re not the most expensive, but we’re not the cheapest. We’re kind of in the middle. I think we do give you great value, and we go way above and beyond what you pay for. But at the end of the day, we do it for a fee. We have a team of people that we support and their families that we support, and we really want to do a good job for you. And there is a fee for that. 

We are flexible on our fees, particularly we have promotions for emergency responders, veterans, and most recently in Covid frontline health workers who are really taking risks for us. To clarify, emergency responders are police, firefighters, and paramedics. And so we offer promotions to those people and their immediate families forever, including some financing. So we try to put our money where our mouth is in terms of helping to alleviate some of these issues. 

Other issues that people have is they don’t want to talk about it. It’s a dark subject. It does relate to death. And people don’t want to think about death. They don’t want to talk about it. Not to me, not to anybody.

Although I will say that if you look us up, you’ll see that we do make it easy. I think that people feel comfortable talking about it. I think we soften it, we lighten it. I’ll throw in a couple of terrible jokes to lighten the mood. And I think people are really appreciative and they feel relieved when we’re done that I did kind of push them through it because they needed it. 

I would say one of the final reasons – there are two more reasons – one is that the perception of attorneys is that they’re not trustworthy, they’re not personable, they don’t communicate well. There’s an attitude. Not responsive or approachable. All these things that exist that we vowed to completely invert ten years ago when I started the firm. We don’t do any of that. We’re not like that. We’re personable. I think we’re trustworthy. We work hard, we have integrity. You email us, you will get a response, you call us, you will get a response. We talk to you like a human being. I think we have great bedside manner, which I think is so important in this modern world, bedside manner. We have empathy. We really can understand the troubles you have, the challenges you face. And so I think that we do a good job of disposing of that issue. 

And last but not least, we get that infamous, “I don’t give a shit” response – pardon my French. And quite frankly, I think that if the person who says that knew what we know, they would give a shit. Because again, it’s not about them. It’s about, like I said, the mess you leave behind. Or is it a model you leave behind. And I think it’s just a lack of information that results in that response. 

It’s real, it’s rational, it’s reasonable, but I’m trying to overcome these objections. I’m trying to convey to everybody the need because we see it all the time and it’s sad and it sucks to see what could be avoidable. 

So let me wrap up with just kind of saying in the next video we’re going to talk about how we strengthen our files and how we help to minimize litigation. And that’s critical. So thank you so much for stopping by and stay tuned for more.

So there you have it. Fear. Avoidance. Ignorance.

I don’t say these things to be insulting, but because they are what we run up against time and again. Even if you don’t think you need an estate plan, reach out to me. I’ll explain why you do.

First, however, let’s look at some of the more general reasons why everyone should be doing this.

Why You Should Consider Creating an Asset Protection Strategy

Picture this: you worked really hard your entire life. You built your business from the ground up and you invested shrewdly and aggressively. You’ve got a nice nest egg.

Then suddenly, you’re slapped with a lawsuit. Now your nest egg gets picked off and your property and other assets are taken, as well.

How can you guard against this type of vulnerability? Consider engaging in an asset protection strategy as part of estate planning.

What exactly is an asset protection strategy? It’s a legal method to protect any amount of wealth from a variety of circumstances in which it could be vulnerable to loss in the future.

Without an asset protection plan, your wealth is susceptible to several scenarios — like significant taxes, chaos, court, costs, conflict (litigation), and a host of unpleasant and destructive surprises.

What If You Don’t Have an Asset Protection Strategy?

You’re vulnerable to lawsuits. Without the proper protection, your wealth could be vulnerable to any type of litigation. including frivolous claimants that are simply manufacturing suits to gain a settlement. Be sure to protect your assets in the event of a lawsuit.

Your business and personal wealth could be intertwined. If you’re not using a comprehensive asset protection strategy, you might encounter a situation where you’re personally responsible if your business fails. Take the Business Planning Stress Test to see if your business is protected.

There might be chaos in the case of incapacity or death. Part of a great asset protection strategy is knowing how to approach your personal and business affairs should you experience unexpected incapacitation or death. Advanced care directives are a key element of our asset protection strategy.

Who Should Consider an Asset Protection Strategy?

Having an asset protection plan isn’t just for the super-wealthy. If you fall into any of these categories you should consider asset protection.

You own real estate: Simply owning real estate means you have property that could be potentially seized by creditors under specific circumstances.

You work as a professional: If you are in any number of service professions, you can potentially be sued in regards to your work. Most often these suits are filed against doctors, lawyers, and real estate investors, but others can be vulnerable, as well.

You own a business: If you own a business, you should consider an asset protection strategy to safeguard against the harmful effects of having your personal finances and business finances mixed.

You’re close to retirement: To make sure retirement funds are secure, looking into an asset protection plan might be a wise choice for you.

You actually are super-wealthy: Of course, if you have lots of investments and property, you should definitely consider guarding your assets against possible legal complications.

When is the right time to put an asset protection strategy into place? The earlier, the better. In fact, waiting until you’re already being sued can be considered fraud. Make sure you get started today so you can sleep better tonight knowing you’re protected.

Tips to Help You Plan with Purpose

Want some general tips that can help you to be purposeful in your estate planning? This is the advice I give to just about everybody.

Get Disability Insurance

Disability insurance is not just for professionals – it’s for anyone who is concerned about being able to provide for their family. Life is a roller coaster, and you never know what to expect. If you want to leave money and property to your kids so they can have their own family, make sure that you’ve maximized your ability to do so. It’s not terribly expensive. We offer a holistic approach to estate, business, and financial planning. We serve you better by working closely with expert financial planners.

Buy a Life Insurance Policy

Not everyone needs life insurance. Ironically, it’s the wealthiest individuals that can afford to self-insure; provided they understand how to invest properly. For 99% of the remaining people, life insurance, if structured correctly, can be an extremely affordable way to ensure that your family will be provided for after you pass on. 

There are many types of policies, ranging from term to whole life – the latter with and without investment components and wide ranging in prices. Consult with a financial professional who makes a point to understand your goals and dreams so he/she can structure the most appropriate policy for you. We believe it’s important that our financial professionals communicate with one another, which is exactly why we work closely with financial planners to ensure your needs are best represented.

Start as Early as Possible
When you never know what life will bring, it’s important to have a plan in place. That way you can update it as often as necessary – which we advise is as often as you or your family experience major life changes. These changes may include: 

  • Births
  • Deaths
  • Marriages
  • Divorces
  • Tax law changes
  • Other relevant law changes
  • Changing your mind

As you can see, these are all quite common occurrences. We maintain relationships with our clients so we know when these changes occur and when they need to come in for a review. It is also prudent to engage in asset protection planning prior to a lawsuit. While it’s not for everyone, utilizing available techniques to protect assets should be a priority for everyone.

Retain Trusted Advisers – and Listen to Them

It’s very helpful to hear an objective viewpoint when considering a decision that will impact your family. We have an overview of finance, accounting, tax, business, and law. If there’s an area in which we are unfamiliar, we work closely with others who know the answer. In either case, we can help you think through decisions, act as a sounding board, or serve in any other advisory role that best supports you and your family. That’s our priority.

Be Careful

Some financial planners are eager to slap you in a policy – and never look back as they regularly collect their percentage of premiums. Other financial planners care about you and your family; these professionals will be attentive and available. We work closely with these types of planners to ensure that your needs are assessed and addressed over time. The lesson here is to choose the right advisers – but also to make sure you don’t lock up money that you otherwise need to eat or provide shelter for your family. Think long-term and Big Picture.

Don’t Forget to Update – Regularly! 

It’s great to have a plan in place, but it’s ideal to ensure the plan reflects both your current wishes and your current circumstances. Most law firms will charge you for each change, and that gets expensive. We offer guarantee plans that will enable you to better adjust your plans as life changes, the laws change, or you simply change your mind. Regular reviews are necessary and inexpensive with Haimo Law.

Avoid DIY Solutions

Often shortcuts take you longer than the normal path. Do it yourself (DIY) products are terrible resources, because you are putting your eggs in one basket. In this case, the basket is an algorithm relied upon to accurately reflect your wishes dealing with the most intimate and important matters in your life: your family. This can work with certain things in life – like choosing a pair of eyeglasses online –  but in this case, you need a human being and a professional to ensure your needs are met. 

Remember, you can’t change this plan after you pass away. Make sure it’s right. At Haimo Law, we educate our clients, and craft and draft appropriate estate and business planning documents. We offer affordable plans, and we are flexible. Protecting your family is our priority.

We know estate planning doesn’t sound fun – and with everything else you’ve got going on, it can be easy to put off. But don’t do make that mistake. Let us help. Reach out to our office today to speak with an experienced Florida business planning attorney.

Originally published 2/9/2013. Updated 12/17/2023

Author:
Barry E. Haimo, Esq.
Haimo Law
Strategic Planning With Purpose®
Email: barry@haimolaw.com
YouTube: http://www.youtube.com/user/haimolawtv

YOU ARE NOT OUR CLIENT UNLESS WE EXECUTE A WRITTEN AGREEMENT TO THAT EFFECT. MOREOVER, THE INFORMATION CONTAINED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. EACH SITUATION IS HIGHLY FACT SPECIFIC AND EXCEPTIONS OFTEN EXIST TO GENERAL RULES. DO NOT RELY ON THIS INFORMATION, AS A CONSULTATION TO UNDERSTAND THE FACTS AND THE CLIENT’S NEEDS AND GOALS IS NECESSARY. ULTIMATELY WE MUST BE RETAINED TO PROVIDE LEGAL ADVICE AND REPRESENTATION. THIS INFORMATION IS PROVIDED AS A COURTESY AND, ACCORDINGLY, DOES NOT CONSTITUTE LEGAL ADVICE.

YOU ARE NOT OUR CLIENT UNLESS WE EXECUTE A WRITTEN AGREEMENT TO THAT EFFECT. MOREOVER, THE INFORMATION CONTAINED HEREIN IS INTENDED FOR INFORMATIONAL PURPOSES ONLY. EACH SITUATION IS HIGHLY FACT SPECIFIC AND EXCEPTIONS OFTEN EXIST TO GENERAL RULES. DO NOT RELY ON THIS INFORMATION, AS A CONSULTATION TO UNDERSTAND THE FACTS AND THE CLIENT’S NEEDS AND GOALS IS NECESSARY. ULTIMATELY WE MUST BE RETAINED TO PROVIDE LEGAL ADVICE AND REPRESENTATION. THIS INFORMATION IS PROVIDED AS A COURTESY AND, ACCORDINGLY, DOES NOT CONSTITUTE LEGAL ADVICE.

Categories

CALL NOW