The secret of happiness is not to do what you like to do, but to learn to like what you have to do.—anonymous

I recently saw an attention-grabbing headline on a magazine article.  It boldly questioned, “Are you going to die?”  How will you answer that?  It’s my opinion that I will die and that, in fact, all of us someday die.  With no intention to be morbid, I would like to suggest that you might want to think some about this event, and its consequences for your family and loved ones. 

I recommend that you do some “life planning.” This is not really justestate planning, not really just long-term care or housing planning. It involves taking a look at the range of possible things that could happen over your lifetime and then devising a plan to handle such events in a rational, thoughtful way. In other words, not letting life’s changes and/or events catch you by surprise and unprepared.

Such planning can be simple or complex. It can be quick or developed over a period of years. It can be expensive or cheap. No two individuals or families have the same set of circumstances. When devising life plans, people should remember that old cliché about getting what you pay for. You need the help and advice of someone experienced with all the issues.

A series on the Web site of the University of Minnesota Extension Service points out that there are several basicestate plans that most people follow. Take a look at these.

No plan: A common plan, but not recommended, is to not plan your estate at all. No will is written and little attention is paid to property ownership, estate distribution or taxes. Senior Moments often says it is a mistake to think you don’t need a will because the state ofMarylandhas one for you. It is in effect right now, unless you make your own. Under this will, property not in joint ownership or property that does not designate a beneficiary will be divided between your spouse and children. As a general rule, couples plan to leave everything to their spouse, with the children’s inheritance available to them after the death of the surviving spouse.

Joint tenancy distribution: This common plan puts all property into joint tenancy and supposes that the survivor will inherit all the property. This may sometimes work well in small estates where husband and wife hold all their property in this manner. Remember, however, that having property in joint tenancy with friends or children can be a problem. A recent column was devoted to how parents lost their life savings because of credit problems of their child, who was a joint owner of their bank account. Many people do use joint tenancy for their house, automobile and checking account. When one spouse dies, the survivor gets the property without delay. InMaryland, the joint tenancy between spouses is called tenants by the entirety.

Sweetheart will: Many wills are written that distribute all assets to a surviving spouse. These are called sweetheart or I-love-you wills. This can be a good plan if the total value of the couple’s assets, including life insurance, is under the unified credit amount ($5.25 million in 2014) and no estate taxes would be due upon the death of the second spouse. This is probably the most popular will. Sometimes people may not realize that this type of will gives little protection to children. The surviving spouse could spend or lose all the property, or may perhaps remarry and lose control of the assets, leaving the children with nothing. Honestly, if there is a second marriage in your life, life planning is crucial.

Complex will: One type of complex will includes a plan that directs property ultimately to the children but with life use (a life estate) to the spouse. This is sometimes used when combined estates are higher than the unified credit amount and the will maker desires to make definite provisions for the children. Willing a portion of the estate to the children protects them in case the spouse remarries or otherwise consumes the estate prior to death. This plan essentially puts a marital bypass trust into the will and protects the tax credit of the deceased spouse.

Revocable living trust: A lot of people today use a revocable living trust as their primary estate or life plan. Assets in such a trust pass outside the probate process, which can save thousands of dollars. Makers place all their assets into the trust and designate trustees, beneficiaries and all terms of operation and distribution for the trust. This type of trust is flexible and adjustable. It requires a will, called a pour-over will, which places all assets not in the trust into it at death, thus using the Trust to direct distribution wishes. This trust offers the advantage of privacy, as a will is a public document open to inspection by anyone at the office of theRegister of Wills. Taxes for this type of trust are associated with the grantor’s Social Security number. Not everyone needs this trust, regardless ofmarketingclaims. This decision should be made on a case by case basis for each family or individual.

Thanks for reading. Stay well. See you next week.