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Three Estate Planning Documents Every Realtor Must Have (it’s for your loved ones, not you)

Written by Posted On Monday, 01 July 2019 09:50

In today’s world, you can pretty well plan for the unexpected, meaning that throughout your time on this earth, life is going to throw you numerous curveballs. You can rest assured that life has a different plan for you than the plan you have for yourself. Life can throw beautiful surprises at you such as meeting your spouse or getting an amazing job opportunity. However, life can also throw not so enjoyable surprises at you such as getting into an accident. Regardless of the unforeseen events that will take place during your lifetime, you can in fact take proactive steps to ensure that you and your loved ones are protected during and after these life events. However, as the old saying goes, “failing to plan is planning to fail.”

Estate planning is a broad subject that encompasses many different areas. Many people, when they hear the phrase estate planning, think of millionaires and billionaires that are trying to hide money offshore or just people in general who own a large amount of assets. Therefore, a lot of times when I am speaking with a Realtor and I ask them if they have done any estate planning, they respond with; “No, because I don’t own anything,” or “I don’t have much money so I don’t need to do a Will.” Well, it may be that you don’t own real estate and maybe you are living closing to closing, however, estate planning is something every Realtor needs to think about.

Understandably, most people don’t like thinking about their inevitable death and most people think that they are going to live for many more years Well, I think we all intellectually know that none of us know when our number will be called, but I think most of us don’t really internalize that fact and don’t really internalize that we are not promised tomorrow and we could go at any time. That’s somewhat morbid and sad to think about but I’ve come to look at it from a different angle. I try to take the approach that tomorrow is not guaranteed, and every day is a gift and we should be grateful for that gift and try and live every day as if it is our last. So, the first step for people to even think about doing estate planning is to really internalize this fact.

Next, you have to look at estate planning not from the standpoint of wealth and money but from the standpoint of love and compassion. Estate planning is not about you. It’s about those you love and care about. Therefore, for a moment, stop thinking about what you have and who you want to get your things and just think about your loved ones. Do you have people that you love and care about? Do you have family or friends that you love and care about? Even if you do not have humans you care about, my guess is that you have a pet that you love and care about. How would not having a basic estate plan in place affect those loved ones?

Here is an example, that though hard to swallow, that all of us can vividly see as a possibility.

Let’s say you are a 30-year old single male just starting out in the Realtor business. You have a girlfriend, no kids and you are just starting to save some money. You and your girlfriend are pretty serious and you’re thinking about proposing to her in the next year. You have about $6,000.00 in the bank and some credit card debt. You are close with your parents and though not best friends with your two sisters, you still keep in relatively close contact with them. You own your car and rent an apartment. You really don’t have many expensive personal items and the collective value of the things in your apartment is probably less than $10,000.

One day, you get a call that you have a potential client for a big listing. You’re beyond excited. This is a deal you’ve been trying to get for months and could really take you to the next level. So, you clean yourself up, put on your best set of clothes and get ready to head out the door. You say by to your girlfriend, she gives you a big kiss and wishes you luck and you hit the road. It’s a beautiful sunny afternoon and you don’t have a care in the world. You’re driving down the road, only two or three miles from your home, and are crossing through an intersection that is really not all too busy. You’re passing through at a speed of about 40mph and out of nowhere, out of the corner of your eye you spot a large SUV barreling down the road about to run their red light and come through the intersection. You try and swerve out of the way but the next thing you know, the SUV has slammed into the driver side door, sending your car into what seems like a never-ending series of flips.

This is painful to read, right? I think we all know that this situation is sadly, not all to uncommon and we all have seen or heard stories just like this. Now, here is where the true value of estate planning comes in. This young man, with really no real financial wealth, did not think to do any estate planning because in his mind, he didn’t have anything to leave to anyone. Being young, he also never thought what would happen to him if he got into this type of accident.

It is not unforeseeable that this accident could have left him paralyzed, in a coma, or on life support. It’s awful to think about but is a very real reality. So, who is going to take care of him now? Who can make medical decisions for him if he is incapacitated or not in sound mind to make his own medical decisions? Would he have wanted to live in a vegetative state the rest of his life? Who will be able to make financial decisions for him? Granted, he only had $6,000 in a bank account, a car and some possessions in his home, but where does that go and who can access those little funds, sell the car and provide him with those limited financial resources that he will surely need?

This is real estate planning. Yes, if you own a property and have accumulated some sort of wealth, you may need to do more complex estate planning. However, estate planning is about protecting those you love as much as it is about protecting yourself. Imagine being this young man’s parents and seeing him in this terrible condition but not being able to do anything or make any medical decisions for him because he never authorized them to do so. Imagine being his girlfriend and just watching him suffer and she can’t tell the doctor what his end of life wishes were because he never took the time to write it down and allow her to inform the doctor should this situation arise.

Hopefully this vivid illustration gives you a new outlook on what it means to do estate planning. Sadly, I have seen nearly identical situations as the one described above, and it is heartbreaking. It is also frustrating because it can very easily be avoided. I think our societies infatuation with money has jaded many to think that basic estate planning is only for the wealthy and that the average individual doesn’t need to think about it. That could not be further from the truth. Regardless of your age or your economic status, everyone needs to do an estate plan of some sort. While we recommend a comprehensive plan, below are three documents that we believe everybody MUST have.

  1. Last Will and Testament – Again, most people think Wills are only for rich people. Regardless of your wealth, put your wishes in writing. A Will can help your loved ones sort out your wishes after your passing. You can put a guardianship provision for any minor children you may have in addition to other important provisions. A Will is not only about who gets what of your stuff after you pass and can save your loved ones a ton of headaches.
  3. Durable Power of Attorney – Document that designates someone to act on your behalf, financially and legally, in the event that you can’t make decisions for yourself.
  1. Designation of Health Care Surrogate - Allows you to appoint a surrogate and an alternate surrogate to make health care judgements on your behalf if you suffer a medical event where you are unable to communicate healthcare wishes to health care providers.

Understandably, this is a difficult topic to think about and one that most people put off thinking about until it is too late. I always encourage people to think about their loved ones and the difficult situation they would be in if they didn’t plan for and take care of these things. I tell them to put the money part of estate planning aside and think about the emotional toll it would take on their loved ones if they had to just sit by idly, unable to do anything because you failed to do some basic planning.

If you have not created a plan to protect your loved ones, we would encourage you to call The Probate Law Firm at 305-456-3255 or send us an email at This email address is being protected from spambots. You need JavaScript enabled to view it. to schedule a complimentary, telephonic consultation. Our mission is to help families during difficult times and ultimately grow closer to each other in the process.

We look forward to helping you and your loved ones!

Justin Stivers, Esq., Owner

The Probate Law Firm

www.probatefirm.com

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Justin Stivers

www.probatefirm.com

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