Estate Planning and Jet Fighter Joy Ride
How to Anticipate and Avoid Disaster
I recently read a news article about a retiree who had spent his life working for the French defense industry. For his retirement, his co-workers arranged a coveted back-seat ride in the Dassault Rafale B fighter jet. However, good intentions were severely hampered by poor planning.
The 64-year-old was strapped into the back seat not knowing that his G-suit pants were not on correctly, neither his helmet nor oxygen mask were buckled up, and his seat buckle wasn’t even tightened. He received a rushed medical evaluation but was never shown the emergency procedures once inside the cockpit.
Mistakes were made. The fighter pilot taxied down the runway and ignited the thrusters launching the plane into the air. The plane arched its nose up into a 47-degree climb which generated 3.7 Gs. When the plane leveled off, the excitement began. Our 64-year-old, “Top Gun Goose”, now floating in his seat looked for something to grab onto. The new retiree grabbed the black and yellow striped loop in the middle of the seat between his knees. Had the safety training occurred, he would have known that loop was the trigger for the ejection seat. As the pyrotechnics blasted a hole in the canopy, the poor man was launched high above the countryside. It was then that the helmet which was riding his head for protection went airborne on its own journey.
There was collateral damage as the pilot’s seat is built to eject as well if the secondary ejection is triggered. The ejection caused damage to the pilot’s seat which left the pilot alone to fly the now speedy convertible back to the runway. Fortunately, both individuals survived with minor injuries. However, inadvertently, this will become a prime example of bad planning in a complex situation.
ESTATE PLANNING:
So, what happens if a client skips estate planning advice, choosing instead to implement an informal plan, or worse yet, no plan at all? If the client dies, this planning misstep will result in a number of problems that are not easily or cheaply solved, and there is (obviously) no chance at a do-over. The state statutes of the deceased’s home state will direct the distribution and administration of the estate, typically resulting in additional costs for the estate. If several heirs are involved, there may also be higher legal costs if any of them contest the estate.
How to Avoid Disaster
While some clients are dedicated planners, others will procrastinate doing the work or simply avoid planning for their own demise. Still others will try shortcuts, creating plans that are legally or financially unsound. For example, I spoke with a recent widow after her husband passed away. The couple had solid planning prior to his passing. Years earlier the husband had suffered an aneurysm, so the estate planning and medical directives were put into place. While speaking with the spouse, her repeated comment was that she was so thankful that those directives were put into place. Her husband passed away from a heart attack while sitting in church. Dementia had already been part of their lives at this point, but with the medical directives she knew the decision that her husband had wanted earlier. She did not have to make a rushed decision at the most difficult time in her life.
To help a client avoid disaster, as professionals we must work closely with each client to communicate the necessity and urgency of planning, understand the client’s current needs, and help the client prepare and implement a fully developed estate plan. This plan can be highly customized, but will likely contain these elements:
A will. Of course, this is the most basic estate planning document. It is used to direct the distribution of any estate property, name an administrator for the estate, identify a guardian for any minor children and direct the management of taxes and other estate expenses.
A trust. Many estate plans feature a trust, either in place of or in addition to a will. A trust offers greater control of assets being passed to beneficiaries and provides privacy by bypassing probate court.
A durable power of attorney. This document authorizes another person to act on the client’s behalf with respect to specific legal obligations if the client becomes incapacitated.
Advance medical directives. These documents—living wills, health care powers of attorney, medical directives, and sometimes instructions about organ donation—allow the client to make decisions about end-of-life care while still healthy and competent.
Because there is not much that can be done to mitigate the problems that result without an estate plan, we must be proactive in explaining the potential disaster and what steps can be taken to prevent it. We have an opportunity to serve clients as this topic might now be on their minds. The market and economic discussions don’t mean much if proper planning isn’t done to protect a family.
Allegis has partnered with Estate Plan Navigator as a possible solution. Existing attorney relationships are valuable, but there are times when a client is across state lines or perhaps the ability to meet face to face is restricted. Estate Plan Navigator may provide a solution which will greatly benefit your clientele for multiple generations. Go to Estate Plan Navigator’s website to sign up at a discount exclusive to Allegis. Call the Allegis Advanced Market team for more details at (801) 826-2600.
– Tyson Ferney, Director – Advanced Markets