Make Sure That Your Client's Estate Plan Is More Than Kindling
It is a frigid November night. You put on a sweatshirt and sweatpants to warm up - to no avail -
and decide to light the season's first fire.
You open the woodstove door to find last year's ashes still inside, the chimney unswept. Not
ideal, but manageable. You can deal with these things later, before winter really gets going. The
real problem comes when you head to the woodpile on the porch. The kindling is damp and the
logs in short supply. You might get a fire started, but it will take some work to keep it going.
A weak fire fizzles out fast. And if your clients are not careful, their estate plans will too.
Relying on the wrong documents, or ones that have been left untended, can lead your clients -
and their chosen beneficiaries - feeling cold and in the dark.
Smoke but No Fire: An Estate Plan That Is Not Winter Ready
You cannot stop fall from turning into winter. The best you can do is ensure that your clients are
prepared for colder weather to come.
An estate plan can be thought of in the same way. While it may not stave off what is coming
(i.e., the client's death or incapacity), it can provide warmth to those left gathered around the
hearth.
For that to happen, the ground must be prepared, the fuel gathered, and the spark ready to
strike. Without the right elements chosen ahead of time and ready when needed, a plan, like a
fire, can fail to ignite, burn out too quickly, or smolder, giving off smoke but no flame and offering
no protection from the cold.
As autumn turns to winter and you meet with your clients to gather what is needed for the
seasons of life ahead, here are some practical pointers you can offer to keep their estate plan
from burning out and to ensure that it is ready to work when they need it:
- Kindling only supports the fire. Some "logs" do not truly burn on their own: Ethical wills
and letters of intent can carry deep meaning and guidance, but they do not always carry
legal weight. An ethical will is a personal message or legacy letter used to share values, life
lessons, or hopes for future generations, while a letter of intent can provide instructions or
context to help loved ones and fiduciaries understand your clients' wishes. These
documents act as the sentimental "kindling" of an estate plan: They add warmth and heart.
But for a fire that burns long and bright through a winter night, an estate plan also needs a
solid, legally enforceable foundation: the big "logs" like wills and trusts.
- Advisor note: Encourage your clients to ensure that their estate planning documents are
legally binding in their state and built on enforceable instruments such as properly
drafted wills and trusts. You might also suggest that they create an ethical will or letter of
intent to share their personal values, stories, and hopes for their loved ones,
complementing the legal plan with heartfelt guidance. If you have questions, please
reach out to us.
- Good wood must be properly arranged. A good fire needs the right setup, as does a good
estate plan. If signatures are missing, witnesses are improper, or a document is not
notarized when it is required to be, it is like stacking wood the wrong way - the spark never
catches. Your clients' estate plans will smolder instead of burning; assets may get stuck in
probate, their wishes may go unenforced, and their loved ones will likely be left with
confusion instead of clarity.
- Advisor note: Encourage clients to confirm with their estate planning attorney that their
documents meet their state's execution requirements. Details such as witness rules,
notarization, and confirmation of capacity may seem small but can make all the
difference in ensuring that the plan holds up when it matters most. We are here to help if
you have any questions.
- Tending the flame is essential. Just as you would not build a fire and then leave it, your
clients' estate plans should not be a set-it-and-forget-it task. Having an estate plan with
outdated named beneficiaries or decision-makers is like building a fire with wet logs.
Firewood needs to be seasoned, tended, and replenished to keep a steady flame. The same
is true for an estate plan; it needs regular review to ensure that it continues to burn bright,
that your clients' wishes are current, and that the right people are appointed to the right roles
and receive the right inheritance.
- Advisor note: Encourage clients to review their estate plans and beneficiary designations
every few years or after major life events to make sure their "stack" is ready when
needed.
Start a Fire - and Keep the Flame Going
When the first chill of the season arrives, we are reminded that a fire represents more than
warmth; it symbolizes the enduring flame of family and legacy that an estate plan is meant to
protect.
It is not enough to simply get a fire started - or to draft an estate plan once and forget it. Both
require care and tending to keep burning bright. Instead of leaving your clients and their families
in the dark or the cold, let's spark up a conversation.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
