Summary

Too many good men fall short at the very end of their lives. Talk to a lawyer and do some estate planning.

If you've been responsible for yourself and those around you in life, don't fail them by being irresponsible in death.

Body

I'm a lawyer. I make money when you come to my office to plan your estate. I make even more money when you don't bother and leave a mess when you're gone.

10 times out of 10 I would prefer to make a bit less money off you in life than a pile of it from your death.

Anecdotes.

Last week I received a phone call from a client: his brother-in-law died in a workplace accident. Left a wife and kids. Left no Will, no plan, no provision for his death.

Yesterday I was in the kitchen of a long-time client, witnessing his last Will. Late stage cancer. He was divorce-raped 8 or 9 years ago and has very little left. Cancer got him before he could fully rebuild. However, he planned.

When my client dies, his three sons will each get some cash, some sentimental assets, and an investment property. I'm sending him a $2k+ bill for this round of planning; had he not come by to review his estate plan, the estate would have been unable to meet the cash calls that come with death (accrued capital gains, outstanding liabilities, taxes). The mess would have not only ruined the inheritance he had for his sons but it would have cost tens of thousands in legal and accounting fees to clean up.

The thesis is simple. Plan for your death.

How?

I'm going to leave details of your planning to the professionals you'll sit down with. Every situation is different and there is NO one-size-fits-all approach.

DO NOT BUY A DO IT YOURSELF WILL KIT. Seriously. That's the best way to unknowingly fuck things up.

EDIT: /u/VasiliyZaitzev has an excellent comment down below.

Something else to consider: leave as little behind to fight over as possible. When it was pretty clear that, while the Grim Reaper wasn't quite yet on the back swing, he was certainly walking up the 18th fairway, my folks started giving things away to myself and my sisters. I thought that this was a bit odd, at first, but once they had passed I was grateful that they did.

When you know that death is approaching, start giving away things. It's better to do it while you're in control than trust it to happen after you're gone. It also gives you the satisfaction in life of providing these gifts.

This advice, of course, only works if you're planning to kick the bucket soon.

Conclusions

  1. Have a professional write you a Will.
  2. Buy life insurance to fund: (A) major liabilities; (B) children and other family you are responsible for; (C) end of life care.
  3. Review ownership and structure of assets and holdings with a view to succession.
  4. Have a professional prepare health care documents.

Please, oh please, don't give me the opportunity to get rich off your poor planning.