What did James Brown and Anna Nicole Smith have in common?

Perhaps if both of you had followed the advice recommended in the following article, its properties could have been resolved more quickly and easily. Obviously, they did NOT “put their houses in order” soon enough. Don’t cause your loved ones the agony of unnecessary struggles and heartaches when faced with establishing their own wealth. All of us, and our children, must face this inevitable moment in life one day. Give yourself and your family peace of mind by keeping things “in order.” Unfortunately, things happen. Getting your house in order early could be the best gift to leave for your loved ones. As discussed in the news these days, James Brown and Anna Nicole Smith needed to do a little “cleaning” so their wishes could be determined. Often times, families spend unnecessary amounts of money fighting over this, only to finally pay the attorneys a large chunk before the family members involved can reach an agreement. The cost of planning ahead is much less than the cost of dispute and arbitration.

Losing weight may be the most common item at the top of everyone’s “New Years Resolution” list, but the “Cleanse” process outlined below should be. Making an estate plan can seem like a daunting task. However, the following practice will offer a good way to get this process going. And even if you have one, the following information might be helpful in keeping you updated every year. This plan is very simple and easy, and it usually won’t take long. It will provide you with a great way to keep your peace of mind all year long. Is that how it works:

Every year, sometime during the first quarter, when the tax documents start to arrive, sit down with your spouse (or if you’re single, do it on your own). Ask just three simple but important questions. The answers that follow each question will help you determine if you need to do something to “get your house in order,” like make a change to a will or trust or other components of your estate plan. (NOTE: In some cases, this may mean taking steps to have wills written, an estate plan drawn up, or other documented critical concerns.) Here are three questions to ask:

1. What would I (wife) do if something happened to you (husband)?

2. What would you (husband) do if something happened to me (wife)?

3. What would our children do if something happened to both of us?

In some situations, there may be other similar questions that need to be asked, but generally these three will address the main areas of concern. Sounds simple right? Although it is (relatively speaking), the questions can sometimes be profound and the changes that need to be made can be significant. The obvious questions to ask yourself are things like:

to. How much income would it take to maintain the current lifestyle?

B. Are the sources of income adequate to support it?

vs. Are there life insurance policies?

D. If something happened to both of you, do the children know what to do?

me. Where are the documents related to your estate plan located?

(Will or trust, insurance policies, etc. “Can the spouse / children

Find them?

F. How should the children liquidate their estate? Who should they call?

gram. If the children are young, have you made a written appointment to

guardian of your choice – (and that person knows

and do you agree with this designation? Put it in writing!)

The list could be quite long. However, at least address the basic questions that need to be discussed. Don’t get bogged down in the details if this seems too complicated. By setting a time to discuss this during the first quarter of each year, it is much easier to prevent the process from becoming overwhelming. Plus, just knowing that you’ve talked about these topics will give you added peace of mind in the new year. Making time to address this should be a New Years Resolution that you repeat year after year.

In most couples, one of the two is usually more active in handling financial matters (taxes, bills, paperwork, etc.). We’ve all heard of situations where something happens to the one handling all of that, and the other left to “figure it all out.” Often times these are the stories we hear later after someone gets involved and takes advantage of the situation. Sometimes fraudulent activity even occurs. Most of these things could probably be avoided if the “Annual Board Meeting” described above were moved to the top of everyone’s “New Years Resolutions” list.