Providing for someone you care about can be one of life’s great challenges. You may have a spouse or partner who depends on you financially. Or a relative with money problems who sometimes turns to you for help. Or perhaps you are fortunate enough to have children and want to give them every possible advantage in life. Whoever you care for, your life’s work may well focus on supporting them.
If someone does rely on you, one of the hardest questions to consider is what they would do without you. You might be able to provide for the person financially by leaving them an inheritance under your will or making them the beneficiary of your life insurance. But money can be squandered, and it may need to be protected from bill collectors, unscrupulous “friends,” and possibly even the loved one himself.
One of the most effective ways to avoid these hazards is to create a “spendthrift trust.” Whether you are leaving cash, securities, real estate, or the proceeds of an insurance policy, the assets will be managed by one person, called the “trustee,” for the benefit of your loved one, the “beneficiary.” The trust can be set up to disburse money in a controlled manner, ensuring that your loved one is well provided for.
The idea of being “proactive” has never held much appeal. Burglar alarms are often installed only after the house has been looted. Trip insurance is frequently purchased for the vacation after the one that goes awry. And yes, barn doors have been known to be locked after the horse has been stolen.
The same is true of having a will prepared. It’s one activity that can’t be put off until after the need arises. Instead, it is often some galvanizing life event that first prompts someone to prepare a will.
- “My mother died and her estate was a mess. I want to make sure my partner and children aren’t burdened by my poor planning.”
- “I am going on a vacation and will be traveling by air and sea. It will be easier to relax if I know my affairs are in order, just in case!”
- “I am having surgery and want to make sure my will is ready, on the off chance things don’t go as planned.”
- “We are getting married, and I heard that if I were to die, my spouse wouldn’t get all of my estate. I want a will to make sure he gets everything.”
- “I was in a serious car accident, and I realized that if I hadn’t survived, my partner would have inherited nothing from my estate. I need to make sure she is protected in case I’m not so lucky next time.”
Instead of waiting for a wake-up call, when should you write your first will? For those of us in the LGBT community, having a will prepared can be especially urgent.
The Greek philosopher Socrates once said, “When the debate is lost, slander becomes the tool of the loser.” He was lucky he didn’t live in the age of Facebook.
Thanks to the vast social network, it has never been easier to express an opinion about someone—however unflattering the sentiment may be. In addition to posting written words, it can also be hurtful to upload photographs and videos that were meant for a private audience. And when the object of online derision is an ex-spouse, the pain inflicted can be especially acute.
After choosing a companion of good character, it can be hard to image that he or she would so publicly betray the confidences of life’s most important partnership. But the adversity of marital problems can change people, and it sometimes brings out the worst in them.
How then can an engaged couple ensure that their relationship won’t end with cutting remarks and embarrassing images on social media? Drawing up a prenuptial agreement is actually a good place to start. A prenup can include a “social media clause,” which explains how spouses, and former spouses, should behave online.
Even if you have a valid will, it probably doesn’t address a surprisingly valuable asset—your frequent flyer miles. Whether you often travel by air or simply use an airline credit card, these miles can quickly add up.
Some credit card companies will give you thousands of miles just for opening an account, as well as additional points for every purchase you make. Airlines value these miles differently, but each mile is typically worth about 1.5 cents. That means that a cache of 200,000 miles could be worth $3,000.00. That’s not nothing, but of course the real value comes in using the miles to book free air travel, perhaps even in business class.
Upon your death, some airlines allow you to bequeath your unused miles to loved ones, but others do not. In a few cases, the airline’s policy is not entirely clear-cut. The best approach is to make provisions for your frequent flyer miles in your estate plan. This will ensure that to the extent the airline allows it, your miles will be passed on to someone you care about. Here are four steps to consider taking: