Skipping estate planning a fatal flaw

Plainsboro attorney explains why

By: Gwen McNamara
   PLAINSBORO — Most people do not enjoy going to the doctor — they avoid checkups, put off making appointments and procrastinate attending that yearly physical.
   The same it seems goes for estate planning, according to Lisa Presser, a trusts and estates lawyer at Drinker Biddle & Reath LLP in Plainsboro.
   "Just like you should get that annual checkup, your estate plan needs a yearly physical, as well," she said. "But most people forget about their estate plan soon after it’s made."
   This can be disastrous as federal and state laws change, and people’s priorities shift as they grow older.
   "Most people begin to think about estate planning when they are about to have a child," Ms. Presser said. "All of a sudden, there’s another party to think about, so they put together a will or a trust, and then I don’t see them for another 20 years.
   "But down the road, when they look back at that document, often they’re horrified by what it actually says," she continued.
   A child’s selected guardian may move or die, parties could get divorced or remarried, a business may go bankrupt or change hands, new property could be acquired or retirement plans altered.
   "All these factors could affect the usefulness of an estate plan," said Ms. Presser, who’s been a trusts and estates lawyer for close to 20 years, spending 11 years at Drinker Biddle & Reath.
   She recommends taking a look at an estate plan on a yearly basis, or at the very least every three years.
   "This doesn’t have to be a major appointment," she added. "All it takes would be a 20-minute phone call or maybe a half hour in the office. It doesn’t have to be excruciatingly painful. Once you have a plan in place, it only needs to be tweaked every now and then."
   To Ms. Presser, estate planning is about helping people.
   "I got into estate planning because I love people," the Highland Park resident said. "I didn’t want to go to court and fight with other lawyers. I wanted to help people solve their personal problems and secure their futures."
   Estate plans can include documents like wills and trusts to organize what you want to go where, Ms. Presser said.
   "You may want to give gifts during your life, make sure your life insurance is distributed properly, set up qualified beneficiaries for your 401(k) or IRA, or make sure a disabled child will be taken care of," she said. "An estate plan is not just about what your will says, but how it’s broken down."
   There are both tax and non-tax reasons for establishing an estate plan.
   Tax-wise, estate plans set up your assets in such a way that you pay the minimum taxes possible, Ms. Presser said.
   "But for many people the non-tax reasons are more important," she said. "It’s setting up a trust to take care of the needs of a disabled child, or a child with credit problems. It’s naming a guardian for your child if something happens.
   "If you don’t have a will, the law will take care of it, but it may not be how you wanted it," she continued.
   It’s never too late to start thinking about estate planning and you don’t have to be a millionaire for it to work.
   "Many people think, ‘I’m not rich, why do I need an estate plan?’" Ms. Presser said. "But while what you’ve got in disposable cash might not be much, if you add up your collected assets — like 401(k)s, IRAs, life insurance and home values — you’d be surprised.
   "Estate planning is not just about crunching numbers, it’s about protecting a parent, a child, all your beneficiaries," she said.