September 27, 2007
@ 11:19 AM
Plan Your Will . . . Or It Can Get Messy
I was talking with a mortgage banker today about possibly refinancing out of my own mortgage loan if rates go down. After we ran through that, he told me a story about a friend of his who thought he had his estate planning all worked out. Turns out there was a snag, and one worth mentioning.

First, you know I'm big on having a will.  A will is the first step towards creating a plan for the benefit of your heirs. A will can accomplish some important goals:
  •     Naming your personal representative – someone to guide your estate through the probate process when you pass
  •     Naming a guardian to watch over your minor children
  •     Distributing your personal property according to your wishes
With a will, you make these important decisions. Without a will, the state makes these decisions for you.

But you need to plan it right. My mortgage friend told me the following story to prove that point:

Unhappy with his past investment performance - and skeptical of his adviser's intentions -- "John Doe" moved his accounts to a new adviser.

That's all well and good, But did John Doe take the time to also check his will?

In my friend's story, John Doe didn't do that. That led to the realization that, although the guy's investment accounts were reinvested to his satisfaction, the prior (ineffective) adviser would still take over management when John Doe  passed away.

That would have left his heirs with an untrusted adviser who he thinks made unethical, commission-driven investment choices," my friend said. "The lesson to be learned is to review and update your will regularly."

A wise point, and a good one.


 
Categories: Finance

« Apple to iPhone Customers: “Mea Culpa” | Home | Federal Trade Commission to Consumers, B... »