Dr. Harold Wong
The March 2025 article was “Estate Planning Wisdom from Warren Buffett: Part 1.” Here are some other key issues that many may not have understood when you completed your estate planning documents (or need to update them if yours do not address these concerns).
Most articles and seminars on estate planning focus on what happens after your death if you have no will or revocable living trust. However, control of your money while alive is usually more important than what happens after you die. Do your spouse and kids know how to access funds to operate the family if you are unable to (due to severe health which does not allow you to make the normal financial decisions you have made your entire life)?
Research shows that, particularly for couples in their 70s and older, it was normally the man who made the bigger wage and made most of the financial decisions. If the husband is incapacitated due to a serious health issue, can the wife and kids execute the estate plan? Is there a Financial Power of Attorney that clearly spells out what the spouse/kids are allowed to do? Have you tested it with all financial institutions to see if they will honor it? Is there enough cash in at least one of the accounts for the wife to proceed?
One major mistake is not updating your beneficiary statements. At least one beneficiary is requested on all IRAs, 401(k)s, life insurance, annuities, and any tax-favored retirement plan. Common disasters are listing the first wife (long ago divorced) as the beneficiary of retirement plans that have now grown substantially. Note that other financial firms such as banks and Wall Street brokerage accounts may or may not ask for at least one beneficiary, but you should. You want your wife as the primary beneficiary, but also contingent beneficiaries (typically your kids, if you still love them, and grandkids, if you only love them). Note that each financial institution may require a different form or format to properly list your desired beneficiaries.
We can point out the same importance for your living will and Healthcare Power of Attorney. You don’t want to create family strife, like the famous Terri Schiavo case in Florida. Terry had a cardiac arrest and was in a vegetative state in 1990. In 1998 her husband petitioned to have the feeding tubes removed, but her parents disagreed. There were 14 legal appeals, and Terri finally died in 2005, wasting untold family dollars.
Attend my Free Live Seminars: Wednesday, April 16, at 3 p.m., or Thursday, April 17, at 6 p.m. at Hyatt Place, 3535 W. Chandler Blvd., Chandler, AZ 85226. The seminars are followed by a free catered meal. The topic is “Estate Planning Wisdom from Warren Buffett!”
To RSVP for the seminars or to schedule a free consultation, please contact Dr. Harold Wong at 480-706-0177 or [email protected]. His website is www.drharoldwong.com.