Procrastination

Given the choice between making legal plans in anticipation of one’s own morbidity and mortality, or doing anything else, most adult Americans would choose to do anything else. Not surprisingly, only about three out of every ten adult Americans have prepared their Life & Estate Plans. What about the other seven adult Americans who have not made plans, are they irresponsible by nature? No, in fact, they are typically very responsible and caring people. Nevertheless, they have fallen prey to the most common stumbling block to proper Life & Estate Planning: Procrastination.

Root Causes
     Why do people procrastinate, especially when it comes to something as fundamental as their Life & Estate Planning? Because it is human nature to avoid unpleasant experiences and people.
     For example, when it comes to experiences, disability and death are certainly not at the top of anyone’s must do list. Even though every man, woman and child alive today will eventually experience death (according to the actuarial tables of every life insurance company and a long history of anecdotal evidence in support), American life expectancies are increasing with every medical miracle. That is good news. Now, for some bad news: The longer you live, the greater your chances of wearing out physically and mentally before you pass on. Just visit any local nursing home or hospital for proof.
     When it comes to avoiding unpleasant people, most people need not wander too far from their own family tree. For example, while many Americans live in a world of almost unlimited choices, few are able to pick their own parents or the spouses of their own children. In a sense, every extended family is a unique, dynamic ensemble of individual personalities and values. Just like a musical ensemble, family relationships can produce beautiful music or horrific noise, and oftentimes they produce a little of both.

Excuses, Excuses
The hand-maiden of procrastination is rationalization. We human beings have an uncanny ability to rationalize our procrastination, commonly in the form of excuses. Here are a few representative excuses to postpone proper Life & Estate Planning, along with tongue-in-cheek responses to each of them.

We don’t have time, because we are getting ready to do some traveling. Unfortunately, most people spend more time packing their luggage, than they do making proper Life & Estate Plans.

My son can’t get away from work to come with me for an initial consultation. Perhaps it is best to wait until you are incapacitated or dead, so your son can take off work to sort through your assets, squabble with his siblings, hire an attorney and develop an almost first-name relationship with the probate judge.

Since my children all get along, there’s no need to bother with any planning. You may be right. They will certainly know your special wishes regarding your home, your bank accounts and your investments, not to mention your one-of-a-kind heirlooms like the kind over which you and your siblings fought after your parents died.

We don’t have an estate tax problem. Why, my business has no value without me. Perhaps, but the IRS may not agree with you, especially given your inventory, equipment, real estate, loyal customer base and goodwill.

It’s too expensive. You have spent a lifetime building your wealth, by working hard and making a good return on your investments. Doesn’t it make good business sense to invest a few thousand dollars in professional fees to save potentially hundreds of thousands of dollars in unnecessary taxes, protect your financial legacy (both from and for your children) and preserve family harmony? What price tag can you put on that kind of peace of mind?

Summary
We have all heard tragic stories about fortunes lost and families torn apart upon a parent’s incapacity or death, often due to poor planning or no planning. Conversely, you will enjoy greater peace of mind when you overcome procrastination through the Life & Estate Planning process. Like the tagline to this newsletter, however, proper Life & Estate Planning is a Lifetime Process. Once your plan is implemented, it must be properly maintained as important changes inevitably occur.

Copyright © 2005 Integrity Marketing Solutions. All rights reserved. Some artwork provided under license agreement. This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.