Real planning for real people

Back in the 90’s, there was an explosion of all-you-can eat buffets. During that era, my dad was a buffet connoisseur of highest magnitude. He frequented Chinese buffets, Indian buffets, Pizza buffets, and seafood buffets. His favorite musician was…..Jimmy Buffet.  No, really. My dad was a huge Parrot Head. I am not saying that Jimmy’s last name had anything to do with my dad’s interest in his music, but I am not dismissing the buffet connection entirely. Exhibit A - “Cheeseburger in Paradise” was his favorite song.

At each restaurant, he would pile food precariously on his plate – the shape of the pile resembling the mountain scenes in “7 Years in Tibet.”  I, of course, would make fun of him. But, beneath the mirth and merriment of our buffet kidding was an undercurrent of concern. This was too much, too soon. Without set limits in place (like a single, moderately portioned entrée for dinner), you are relying on discipline and self-control to avoid a massive tummy-ache. For the record, hungry, food-obsessed dads are not big on self-control.   

This same logic applies to estate planning. Wills and Trusts, historically, were drafted with lump-sum or percentage distributions at the heart of the document. As an example, let’s say I make a Will leaving my cousin, Charlie, 30% of my estate and my niece, Louise, 70%.  Simple solution, but let’s say that Charlie is not good with money and my estate hands him $100,000 all at once.  Can you guess what will happen? 

Over the last twenty years, as housing, living and educational expenses have exploded, estate planning has evolved to take a more nuanced view on distributions.  Income streams or periodic payments coupled with the continued growth of principal held by a Trust allow a beneficiary to extend their financial windfall.  The pitfalls of a bad marriage, an adult child’s late career start or bad money decisions can be mitigated with the use of intelligent Trust planning.  You can still go out to eat, just fill up on some salad first and save room for coffee and dessert.

The Feller Group is located at 572 Route 6, Suite 103 in Mahopac, and 223 Katonah Avenue, Unit F., Katonah NY 10536. They can be reached by phone at (845) 621-8640 or online at www.thefellergroup.com.   

Contact the professionals at The Feller Group, P.C. today to assist you with your Estate Planning options.