Why You Need an Estate Plan in Florida Even if You're Not Rich

by Meir Bulman, Esq.

Wills, trusts, and advanced directives are not just for those who own substantial assets or earn a high income, but an essential tool for all. An estate plan provides you peace of mind, knowing that you are covered in the event of death or incapacity.

Here are the top five reasons you need estate planning even if you are not rich:

1.      You are a parent.

The urgency of estate planning is especially true if you are your child’s only parent. In Florida, the best course of action is to nominate a preneed guardian who will care for your children in the event both parents are deceased or incapacitated. Florida Statue 744.3046 provides custody to your chosen guardian without resorting to extensive state involvement. The guardian’s duties start immediately upon the death or adjudication of incapacity of the last surviving parent. Designation of preneed guardian will speed up any guardianship proceedings upon death or incapacity significantly and will result in immediate appointment of your chosen guardian by default.

2.      You do not want an army of strangers to make critical decisions about your healthcare.

Advanced healthcare decisions are made via a living will and other advanced directives. If you are unable to make healthcare decisions due to incapcity, a prior living will allows your healthcare professionals and loved ones to know and honor your wishes. Incapacity with no living will may result in years of drawn-out legal proceedings, needless years of suffering, or actions incompatible with your faith. An advanced directive ensures your decision is honored rather than deliberated for years by courts, committees, and guardians that you did not appoint.[1]

3.      You own items that hold sentimental value.

Some items that the market deems lacking in value hold immeasurable value to you or your loved ones. A will providing how those items are inherited ensures that items you treasure are not tossed in the trash.

4.       You have life insurance or would like to insure your life.

While Florida law provides many protections for policyholders, some planning is still needed to ensure your wishes are honored. One example of necessary planning is employer-provided policies, which are not covered by Florida law, defaulting instead to federal law. If you have private, non-employer-provided coverage and you divorce, Florida Statute 732.703 treats a beneficiary former spouse as having died first. Where no secondary beneficiary is designated, life insurance proceeds will pass into the estate and trigger lengthy probate proceedings - unless a valid will was executed.

5.   You have pets.

Even if you do not have mountains of cash, forming a pet trust is a good idea. A pet trust allows your wishes regarding your pet to be honored immediately upon death. Another option is to execute a will providing for pet care after your passing.

[1] See, for example, Florida Statute 765.404 – when no advanced directive exists, and the wishes of a person is in a persistent vegetative state are unclear, the person’s best interests are deliberated and decided by a judicially appointed guardian, doctor, and the hospital’s medical ethics committee.

*DISCLAIMER: Although I am a lawyer, I am not your lawyer. Estate planning is highly individualized. This article is for informational purposes only and should not to be taken as legal advice.