The importance of planning ahead and laying a strong foundation for a stable future through estate plan cannot be overemphasized. However, even with great efforts and best intentions, estate plans can be sabotaged. If you have a plan for your estate or need to develop one, you may need to look out for such sabotage to avoid having your plans messed up. Below are some evildoers you should look out for:
1. An irresponsible and repulsive senior
An elderly person who is financially incapacitated and takes advantage of others based on his age He is careless, reckless and wasteful. He is violent and manipulative; threatening children both adults and grandchildren with disinheritance. Refuses to take care of himself, his health, environment, and even assets He indulges in behaviors and habits that are self-destroying. He smokes even with a deranged health condition, refuses to take his medications, and live in a messy environment without any form of personal hygiene. He takes advantage of a disabled spouse and emotionally manipulates his children, refuses to sign basic estate planning documents such as powers of attorney and a will, getting into crisis every now and then and expecting the sympathy and rescue of family and friends. He is more of a burden to the family as his attitude makes it impossible for him to live in an assisted living center or nursing home. He is insensitive and easily falls prey to scammers and could easily loose his entire life savings because he makes no effort to seek and obtain financial information about the estate plans and accounts such as the Totten trust accounts.
2. The Wasteful and Irresponsible Adult Child
An adult child who is still dependent on the parents for basic living expenses Who has refused to grow up, having disparaging conversations of friends and family with his folks who want to be the beneficiary of their parent’s wealth either by hook or by crook? Despite being convicted for theft, he still wants to manage the finances of his parents, can go as far as setting up his parents to fraud them especially in cases where he knows there is a Totten trust account with another beneficiary, while pretending to be managing the affairs of the family. He wants his own part of the inheritance while they are still alive and continue to torment them. He comes as a sheep but soon turns into a wolf, abusing and threatening his parents physically.
3. The intruder
He is not a member of the family, but a close ally of the family who takes advantage of an incapacitated senior in the family. Examples include financial advisers, caregivers, friends, the power of attorney agent, church members, pastors etc. They so relate with the senior but with an ulterior motive to steal. They devise different means to deceive and make away with lots of money. It could be through marriage ties with the incapacitated senior, offers of investment schemes, even though legal services by dubious lawyers interested in the Totten trust accounts, promises and assurance of safety and more money.
FAQS:
1. What is an estate plan?
An estate plan is a legal document that directs the management and distribution of a person’s estate when the person becomes incapacitated or after his or her death. Meanwhile, the process of involve in preparing an estate plan is known as estate planning and occurs while the person is yet alive and vibrant.
2. What undermines an estate plan?
Apart from saboteurs, incorrect beneficiary designations, forgetting to update plans after major events like divorce, estate taxes can make things difficult for beneficiaries, failure to make medical and financial plans in case of disability.
3. What is the difference between an estate plan and a will?
An estate plan comprises of legal documents that are effective while you are alive as well as other documents that are only effective after your death. Such documents that determines who has the power to make healthcare and financial decisions on your behalf in a situation where one is incapacitated and who receives your assets at death. Meanwhile, a will is one of those documents effective after your death which states beneficiaries of your assets and liabilities.
4. What is a Totten trust account?
It is a type of trust account in which one party keeps money with instructions that upon the settlor’s death, whatever is in the account will pass to the named beneficiary.