Make sure you have the right documents and people in place to protect you and your wishes.

By James Ward

James Ward

I encourage you to get your estate planning documents in order —and make sure you understand them. If you already have them, (1) make sure you can find them, (2) make sure they reflect your current wishes, and (3) make sure you have all the pages of all the necessary documents.

We’ve had a lot of cases recently where the clients hadn’t asked people for advice and then made huge blunders, or they simply didn’t ask the right people for advice. While your barber, or mechanic, or plumber may be willing to give you medical advice, are they trained and licensed as medical doctors? Can you rely on their medical advice?

I had a case recently where the family made two huge mistakes for the mother by not getting the proper advice, and now they’re paying a steep price for that. In another case, the client told me she owned a rental house, but no. It was still in the name of her mother who had died seven years ago.

Another client thought her property was worth $2.5 million if she wanted to sell it, but she wasn’t aware the unpermitted apartments on the property can’t be included in the appraised value because they’re illegal units. And what about the liability of having renters living in illegal dwellings? The client hadn’t considered that issue.

Another client was preparing to sell her home, and her mother’s home, and the two of them would buy a new, larger home in a less expensive area of the state. Nice plan, but it ignored the fact that together, they would have owed more than $700,000 in capital gains tax. They thought they wouldn’t owe the tax if they bought a new residence within two years, but that law was changed years ago.

When you’re dealing with large sums of money, or decisions that can affect your long-term health and care options, think things through and get qualified, professional advice.

And, really think about who you can trust. Can you still trust them now?

I have two separate stepdaughter cases now that are driving people nuts. In one case, the stepdaughter has threatened to sue my clients unless they give her $300,000 now and 25 percent of the estate later, and she claims to have already hired an attorney — but both the husband and wife are still mentally sharp and are bewildered by the greed. They asked me: “She’s going to sue? For what? It’s our money and we’re still alive.” And they previously trusted that daughter.

In the other case, the stepdaughter is demanding that the mother be transferred to live with her daughter, and that the stepfather then pay a huge monthly amount for the daughter to care for the mother. My client’s wife isn’t going anywhere. After more than 35 years of marriage, he’s keeping her right at home with him, and at a very low cost because she only requires a few hours of care each week. And they previously trusted that daughter.

But don’t get the impression sons are always angels. One son asked his stepmother to join his efforts to have his father conserved so the two of them together could take control of the father’s extensive assets. The son said his father had dementia and didn’t know what he was doing. That was four years ago, and my client is still driving, still managing his commercial real estate, and still negotiating his own real estate deals. He’s not young, but he’s healthy and he’s still in charge. And they previously trusted that son.

I don’t see these as examples of simple greed. They’re what I call “aggressive greed.”

Give these issues serious thought. Get input from experienced professionals, and make sure you have the right documents and people in place to protect you and your wishes.