Sam almost lost the farm that had been in his family for 8 generations!  We’ve all heard that “The Devil is in the details”.  It is especially true when it comes to estate planning.  Make sure you don’t make the same mistake Sam did.

            Sam and Ellie were in their early 80’s.  Even though they had been happily married for over 30 years, they each had children from a previous marriage.  About 10 years ago, they became concerned about the amount of estate taxes that would be due on the family farm when they passed away.  They had heard the nightmares about losing the farm to Uncle Sam and they wanted to make sure it wouldn’t happen to them!

            So, Sam went to see his local attorney.  He told the attorney about their estate tax concerns and also that he wanted to make sure the farm went to his children – stayed in the family – instead of going to his step-children when he died.  Well, the attorney told Sam what to do and, obediently, Sam and Ellie implemented that plan over the next several years.

            That’s when we got involved.  The attorney’s advice sounded good, but the Devil is in the details!  And the attorney missed a few details that left Sam holding the bag.

            The result was that if (and when) Sam had passed away, his share of the farm could have gone to his step-children instead of to his daughters – the very thing he was trying to prevent!

            The attorney’s plan was also supposed to reduce the amount of estate taxes that would have to be paid, but because the attorney missed one small detail, it would be as if the plan had never occurred, leaving a $750,000 tax bill!  They followed a plan for almost 9 years, and were right back where they had started from.

            Fortunately, we were able to help Sam and Ellie get the chaos that had become their estate plan quickly and easily sorted out.  With the help of a competent attorney, Sam and Ellie now have the peace of mind that what they want to happen, will happen.

            Their estate taxes have been drastically reduced, possibly even eliminated.  Just as important, Ellie’s children will get her portion of the estate and Sam’s children will get his.  The farm that has been in Sam’s family for 8 generations will stay that way for a few more generations.

            To their credit, Sam and Ellie did everything they were supposed to.  They were proactive in recognizing that they needed to take action to reduce their estate taxes.  They knew they needed legal documents in place to dispose of their estate according to their wishes, minimizing any conflict between the children.

            They sough out an attorney to assist them.  They followed the attorney’s advice and did exactly what they were supposed to do.  So where did they go wrong and how can you avoid making the possible same mistake(s)?

            The only mistake Sam and Ellie made was by not working with an attorney that specialized in handling complex estates.  Their attorney was a generalist.  Being in a small town, he did a little bit of everything, legally speaking.

            You may have a family doctor, but if you need a heart transplant, they will refer you to a cardiac specialist.  If you have a severe foot problem, your doctor will refer you to a podiatrist.  If you are suffering from hemorrhoids…well, you get the idea!  Just like in medicine, it is hard for an attorney to be an expert in all areas of the law. 

            Sam and Ellie’s attorney knew, in general, what they should do to protect their estate, but since he wasn’t an expert in the area of estate planning, he missed a crucial detail.

            It’s the same way when it comes to handling all of your financial affairs.  For all but the simplest cases, you should be working with someone who specialized in the areas you need help in.  If you would like more information, or have specific questions, call the Estate Planning Institute Group, LLC at 1 (877) 807-3477.  One of their professionals would be happy to assist you!