April 29, 2017
Following the shocking death of Prince, folks across the country were equally shocked to learn that the musical genius died without a Will or Trust in place to deal with the distribution of his fortune and valuable music catalogue when he passed away.
Dying without a Will in his home state of Minnesota now means that Prince’s wealth will likely be distributed among his six siblings… but only after more than half likely gets distributed to his other newfound family member, Uncle Sam. Yikes!
Obviously it wasn’t a lack of money stopping Prince from creating an estate plan to protect his assets and wishes if something happened to him. He had plenty of cash and access to high-powered lawyers in his own home state and across the country.
So what was the problem?
Well, according to a new report from TMZ, Prince was afraid to work with an attorney to get his affairs in order.
He bounced from advisor to advisor and professional to professional out of fear of being taken advantage of.
He didn’t want to subject himself to misguided information.
And, he feared becoming preyed upon by professionals with ulterior motives.
Before you write Prince off as crazy paranoid, believe it or not, this is exactly what stops average families from getting their affairs in order, too.
Maybe they don’t have millions of dollars in the bank and an impressive music catalogue like Prince did, but they hold on tightly (and rightfully, so) to the money and assets they do have… much of which they’ve worked hard for decades to acquire.
It’s only natural, then, that when faced with a crisis such as a medical illness, incapacity, the blending of a family, a divorce, a lawsuit, whatever, a general fear tends to rise up in folks that the attorneys they are meeting with to help them create a plan to protect their assets and families might be taking advantage of them or simply don’t have their best interest in mind.
Perhaps they have sticker shock at the basic cost of a Will or Trust. Or, they may feel like the attorney or advisor is just preying on them during a weak moment in their life.
In any of these scenarios, what ends up happening when someone has these feelings is that they freeze from the fear and end up doing NOTHING. Just like Prince.
As an estate planning attorney, I’m not going to say that these fears are unfounded. There are bad eggs in every bunch, including attorneys and financial advisors.
But the fallout of not protecting your family with a proper estate plan does not outweigh the risk and fear of being taken for a ride! If you want to be certain that everything you’ve worked so hard for actually goes to your loved ones, and not the government when you are gone, you’ve got to plan.
If you want to make sure your kids are raised by only the people YOU WANT if you unexpectedly pass away, you’ve got to plan.
If you desire to keep your life’s work safe from nursing homes, creditors, predators, lawsuits and divorce, YOU’VE GOT TO HAVE A PLAN.
You even need a plan to ensure your medical wishes are honored as you want. Here’s another area that Prince likely dropped the ball.
As a Jehovah’s Witness, he was opposed to any form of blood transfusion. But, did he have that legally documented? Because if he did not, and was incapacitated in the hospital for any length of time, his next-of-kin sister might have decided to go ahead with a transfusion. And it would have been perfectly legal, even though it was against everything he believed in.
I hope I’ve made it clear that you NEED to have an estate plan. Every adult does. It’s not an option.
And, the good news is that you can take proactive steps now to AVOID being taken advantage of or sold products or services that you really don’t need by an attorney or other type of financial advisor.
The key is to start your planning BEFORE a crisis strikes.
My best advice would be to start interviewing attorneys and local professionals while you are still healthy and have the mental capacity to make your wishes known. Your end-goal should be to compile a team of advisors that you know, like and trust to support you and your family during all of life’s transitions.
Don’t be afraid to compare services, compare costs (note: cheaper does NOT always mean better in this area) and even compare office procedures for each attorney. Ask tough questions like:
If you take the time to find a professional that can answer these questions to your satisfaction, that has as great reputation and is someone that you seem to “jive with” before there is a crisis in your life, you will feel much more confident and secure to lean on that professional during trying times that may arise in the future.
Sadly, Prince did not follow through in this area, but you can.
Begin to build your team of advisors, right now… at this stage of your life. It doesn’t matter how much money you have, whether you are young or old, if you have kids or not. Start to build your “A” team. Make it your goal to spare your family from the court costs, taxes, public scrutiny and fighting they would otherwise face if something happened to you.
Take your time to do “meet and greets” and interviews with area advisors. Go to every free workshop that is offered in your area to find that person that you connect with.
And, once you feel comfortable with your team, make the plan. Legally protect your assets, your family, and make your wishes known. Don’t ever let fear stop you from doing the right thing by your loved ones when you can start NOW to take concrete steps that mitigate any risk or loss of control.
You are worth it, and so is your family. Let this be the real legacy (beyond the music) that Prince leaves behind to you and your loved ones today.