ISSUE #3
Avoid These Common Mistakes

Here are a number of common planning mistakes that you can easily avoid with proper planning. The last thing you want is to leave confusion and disputes among your loved ones. Yet that is often the result when estates are not thoughtfully planned.

• Waiting Too Long — It is human nature to procrastinate about something as unpleasant as planning for what happens after your own death. Yet it is critically important to put your plan in place while you are still healthy and thinking clearly. While we always seem to believe that we have plenty of time to take care of our final affairs, the fact of the matter is that we never know for sure when our time will come. If you do not go ahead and take care of it now, you may never get another chance.
• Failing to Review Your Plan Regularly— Once you have your estate plan in place, it is important to have it reviewed periodically to make sure it continues to reflect your wishes. A review is also important when changes in the law may affect your plan. A general rule is to have your plan reviewed every three years, or sooner, if you have had a major change in your circumstances, such as the death of your spouse, a divorce, a large inheritance or the death of a major beneficiary.
• Trying to Do It Yourself— If you want your estate planned properly, do not try to do it yourself. Instead, visit a qualified attorney. Attorneys are trained to understand your situation and develop a plan that will carry out your wishes. Do not try to save money by using pre-printed forms or computer software kits. While these programs may produce a document for you, they do not provide the professional skill and experience of a trained attorney who will take responsibility for making sure your estate plan is suitable. Do not risk a lot to save a little.
• Failing to Communicate— Make sure you discuss your estate plans with your immediate family. This is especially important if you plan a distribution they may find surprising or unexpected, such as leaving much more to one child than another, leaving a large charitable gift, or leaving a large gift to a non-family member. It is important for your family to know your intentions ahead of time, so they will be less likely to suspect that you had been unduly influenced to make these decisions. Otherwise, they may challenge your Will.
• Your Personal Property — Make sureyour Will clearly states how your personal property will be distributed. This is especially important for items of sentimental value. Sometimes the most important items in an estate are family heirlooms, antiques, collectibles and jewelry, which your heirs may hope to one day receive. Without clear directions in your Will, your loved ones may end up in unpleasant disputes over who gets what. The only way to avoid such disagreements is by clearly stating your wishes in your Will.
• Not Protecting Your Documents — Shortly after your death, your heirs will need to find your Will, your life insurance policies and information about all of your financial assets, such as bank accounts and investments. It places an unnecessary burden on them when these documents are difficult to locate. Keep copies of all of your legal documents and your financial statements in a safe place, such as a filing cabinet or a 3-ring binder. Keep your original documents in a safe deposit box at your bank or credit union. Make sure your closest family members know where everything is located.

• Overlooking Charitable Giving— Without making specific arrangements in your Will, in your trust, or in your beneficiary designations, you may pass up the opportunity to leave gifts to your favorite charities. If you are like many people, you would like to leave something for the charities you have supported during your lifetime, yet that will not happen if you do not take action to arrange these gifts. Your charitable gifts can easily be arranged when your attorney drafts your Will.

This publication has been prepared as an educational resource to help the reader identify areas of potential concern. The publisher is not engaged in rendering legal, accounting or other professional services. The information contained in this publication should not be acted upon without first obtaining the advice of a professional advisor. 2003 © Florida Philanthropic Advisors, LLC. Material may not be used without permission.

Five Terms to Stump You

Estate planning has its own special vocabulary. Here are five terms to test your knowledge. They are presented within statements which are either true or false. If you guess correctly all five times you may want to consider a second career as an attorney.

True or False:

1. If you reside in one state (i.e. Oregon) and die in another (i.e. Colorado), you are said to die "intestate."

2. "Probate" refers to a deceased person who failed to leave anything to charity in his or her will.

3. A "decedent" is a person who dies without a will.

4. "Inter vivos" refers to a will that is interrelated with one's life insurance policy.

5. Before an attorney can properly draft a will, he or she must make several "bequests" to obtain needed information.

Well, are you considering law school? You might want to if you labeled all five statements "false."

"Intestate" refers to a person who dies without a will, no matter where he or she resides. "Probate" is the court-directed process of settling a deceased person's estate. A "decedent" is any person referred to who is dead.

"Inter vivos" simply means something that is established during one's life. A "bequest" refers to any gift made by will.

Some of the terms used in estate planning are indeed confusing. That's why we would like to send you a glossary of terms, as well as free information about estate planning and planned giving. These items will increase your knowledge and help you plan more effectively.

It is part of our mission at Ashland University to equip and encourage our friends to care for their estates in a way that will honor personal needs, family interests and charitable commitments. That's the reason we print these articles and provide complimentary materials.

We also want to remind you that Paul Ditlevson, our director of The Legacy Estate Programs, is knowledgeable about many facets of gift and estate planning and is available to assist you without charge. You will find him congenial, helpful and respectful of your confidences. And if you don't have a qualified legal advisor to assist you, he will help you locate an estate planning attorney to provide competent service and independent counsel.

If at anytime you have comments, suggestions or wish to be removed from this newsletter mailing list, simply contact Paul Ditlevson, (419) 289-5090, Email: pditlevs@ashland.edu or Amy Clark, (419) 289-5105, Email: aclark2@ashland.edu