Prince died without a will and now his family is all wet. With hundreds of millions of dollars in assets, what was he thinking? Worth a pause...how are you doing with your estate plans?
Assets held in a trust follow the rules you set out for the trust. Life insurance, annuities, retirement accounts like IRAs and 401(k)s pass to the beneficiaries you named on these accounts. With few other exceptions, your assets pass through the probate courts. In the case of Prince, without any clear directions from him, his family may be torn apart and disagreeing for many, many years.
It's easy for you to solve this problem. Contact us here at AIFS and we'll make an introduction to someone who can draft up the basic mechanics of money movement. And, if you're serious, you'll have a conversation about your dreams as well as your dollars. But that's not a requirement--you don't need to look death in the face or contemplate your end to reduce the pain your loved ones feel.
This musician's fear of death will destroy some of the love he created. The music we all love, for the people with whom he was closest, is small compensation compared to the agony of dividing up the assets. Allow Prince's death to be your catalyst. This famous situation can be the "straw" that breaks your procrastinating "camel's back." There are other such similar stories; sadly Prince is not the first.
Money is like that, occasionally destructive. Sometimes what we fear the most is not what will haunt or hurt us the most. Next week we'll look at the pain--and the panic--that investing occasionally and understandably causes investors and a couple things we can do about it.