Attorney, Mercedes, Theophilus discussed on Saturday Spotlight

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He became incapacitated. We don't Wow. Think of now. First off background 1984. I was a senior in high school. I remember seniors that turned 18 the drinking age was a team back then. Rob. That was gold. Right? Very team the whole year. My birth his 1st. June third, I was one of the late ones. But most seniors that are gonna have a birthday in September October they're going to live with their mom and dad threw that senior year of high school. You just assume Mom and Dad could make those decisions unless their power of attorney they cannot. Legally that's right. And again. It's incapacity planning. I mean, what are the odds that a particular 18 year old will become incapacitated? Pretty low, But is it zero No, it's not zero and as a result of it not being zero. The only way to ensure against that is to create powers of attorney which is a very simple, very straightforward process that I offer to all of my clients when they have Children who and it's not a solo Children or 18 1920 21 at any age, because if you're 22 year old were a senior in college and in that exact same situation. You still don't have authority as parents to be able to make that decision so again, even if you miss the boat, so to speak on when your Children turned 18 or your grandchildren turned 18. You can still set those powers of attorney up to ensure that you and your spouse have the ability to make those decisions as parents ought to be able to dio and the only way we can ensure that again is by creating those powers of attorney It's state planning, obviously, depending on your age, Rob your state playing planning needs air going very so that 18 year old You're right the day you turn 18 You really need to have a plan, right? But let's see. You've let it go. And now you're 36 years old. It's never too late. In fact, I'm sure your advice is going to be yesterday. Get it done now, Right. I always tell people the best time to do a state. Plenty is yesterday. The second best time is today. So absolutely that it's not painful. Speaking from experience it it was not a big deal. We did a trust, a revokable living trust. My wife and I, and when it's done, it's done The peace of mind. You can't I can't put it into words. And I appreciate that and again for people. It's always a matter of figure out. What are the needs in your lives. How can you stay planted? Those needs an 18 year old does not typically have much by way of assets. Sometimes they do. Sometimes there's inherited. Well, sometimes you have somebody who starts to start up company and 18 is incredibly successful. But as a general rule most 18 year olds the needs they have for their state plan is Theophilus to nominate somebody again, as you mentioned, most likely a mother and father. Who can make health care and financial decisions for them if they become incapacity. How long with that power of attorney form Take to sign if I had the so I'll just walk you through a theoretical one. Let's just say that I had a client come in with their 18 year old son or daughter, and by the way, I do have that I probably have about 30 dates in my calendar as to when clients Children turn 18 that way. It's a reminder for me to call them to say, Hey, let's spring junior into Make sure here she signs the's park attorney documents. So the information that I need to collect from the clients in order to draft the document might take me five minutes to collect. I draft the documents. I bring him in for a signing. Signing takes place in 10 minutes. They're total time. Investment is probably less than 15 minutes, and the cost is minimal. And I'm guessing minimal couple $100, depending upon how you know whether we want financial and health care whether we have multiple Children, But you'd be looking at about 202 $150 someone that it's almost the same as would you Okay? Winnie car insurance and every vehicle we own. It could be a tilapia. $100,000 Mercedes we need. We need car insurance. Most of us not all, but most was need and do have life insurance. Most of us have homeowner's policy where there's all kinds of insurance out there, right. We get those policies. Why do we put estate planning on the back burner? I love the parallel to insurance. Okay. To me. It's one of those things that I've talked about on this show before. I've talked about it. A lot of my public speaking engagements. For whatever reason, Paul people in the public understand insurance a lot better than this understand estate planning So part of my job with through this show through the other speaking engagements that I have is to draw those parallels because you're exactly right. But I will draw one distinction for you and for the audience here, life insurance. OK people. A lot of younger people will obtain life insurance, either after get married or certainly if they have their first child. Why, Because they want to have the certainty of knowing that if they pass away prematurely, there's at least a sum. Money that is available to pay for their child's needs during their life or to help the surviving spouse be able to get back on his or her feet. That part is pretty intuitive. Okay, why would a state planning be any different Because if you have that young couple who has that minor Children, the estate plan is the only and I'll repeat and emphasize the on ly way to determine guardianship of those Children. So what's more important, having a pool of money available for the Children or being able to nominate whom you want to serve as the guardians.

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