WHAT IS AN ESTATE PLAN AND DO I REALLY NEED ONE?
Every student at every law school in the United States is familiar with “Black’s Law Dictionary”. It is THE premier legal dictionary first published in 1891 by Henry Campbell Black. It contains “definitions of the terms and phrases of American and English jurisprudence, ancient and modern.” Since Mr. Black’s completion of his initial feat in 1891, Black’s Law Dictionary has been updated and republished for the scores of new law students, recently licensed lawyers and seasoned attorneys who use it on a regular basis. It is the “go to” book for legal scholars, law professors, judges and everybody in between. It is currently in its 6th edition. What better place for this lawyer to start in explaining “what is an estate plan?”
The 6th Edition (1990) of Black’s defines an “estate” as:
The degree, quantity, nature, and extent of interest which a person has in real and personal property. An estate in lands, tenements, and hereditaments signifies such interest as the tenant has therein. . . . The condition or circumstance in which the owner stands with regard to his property. . . . In this sense, "estate" is commonly used in conveyances in connection with the words "right," "title," and "interest," and is, in a great degree, synonymous with all of them. Black’s Law Dictionary, 6th Ed.
The dictionary defines “plan” as “a delineation; a design; a draft, form or representation. . . . Also, a method of design or action, procedure, or arrangement for accomplishment of a particular act or object. . . . [A] method of putting into effect an intention or proposal.” Black’s Law Dictionary, 6th Ed.
Finally, when searched together, one finds that Black’s Law Dictionary defines “estate planning” as “that branch of the law which, in arranging a person's property and estate, takes into account the laws of wills, taxes, insurance, property, and trusts so as to gain maximum benefit of all laws while carrying out the person's own wishes for the disposition of his property upon his death.” Black’s Law Dictionary, 6th Ed.
Basically, an estate plan means putting one’s affairs in order, making and establishing a plan for carrying out one’s wishes and desires for their property and “stuff” at their death (and also upon their disability). Making an estate plan is something everyone needs to do. Whether you are young or old, wealthy or middle-income, married or single, a parent or childless, you need an estate plan. It is of benefit to not only you, but also to those you love and care for, to have a plan in place. It takes the guesswork out of the mix and allows your wishes to be known to everyone and, most importantly, followed.
Without an effective and legally binding estate plan, your estate, whatever you own, will go to those that “the law” says should receive your estate when you fail to plan. It doesn’t matter what your wishes might be, what’s right or wrong for your particular situation, what’s fair or unfair, and despite the fact that you “would roll over in your grave” if you knew that he or she was getting your “stuff”, it will happen as the law says it will happen. With a good estate plan in place though, it will happen as you direct, as you want and, other than a few particulars in the law that no one can completely plan around, your estate will go according to your plan, your wishes and not according to “the law”.
Putting your affairs in order puts you in charge of what’s yours. But it also gives you something just as valuable as a good estate plan. It gives you peace of mind. Peace of mind that you have done for yourself and your loved ones that which is good and noble. You have taken care of your own affairs with the hope and intention of making the process easier for your loved ones. Those that you have taken care of will be (or rightly should be) ever so grateful that you have an estate plan, the components of which will follow in another article soon.
(The information provided in this article is for informational purposes only and is of a general nature. The information should not be construed as legal advice. If you have any questions about the subject matter of this article or related matters, you should consult with a professional advisor for advice. Deirdre W. Edmonds is the former Horry County Probate Judge and is the owner of The Law Office of Deirdre W. Edmonds, PA, located at 1500 Highway 17 North, The Courtyard, Suite 213, Surfside Beach, SC 29575. The Law Office of Deirdre W. Edmonds, PA focuses on estate planning, probate administration and litigation, disability planning and elder law. Contact: Telephone: (843) 232-0654; Website: www.dedmondslaw.com; and Email: dedmonds@dedmondslaw.com.)