As I sat down at the table in the firehouse kitchen, the young firefighter set a steaming cup of coffee in front of me. “What about estate taxes?” he asked, sitting down across from me.
“If you remain a firefighter and the missus a teacher, you’ll probably never have an estate in excess of $20 million. Knowing you won’t have to worry about federal estate taxes will just make you honest about estate planning,” I replied.
Firefighting is a hazardous profession.
It’s better to plan now than from a hospital bed.
“Then I guess I don’t really even need a trust,” he said, kind of half question, half statement.
“No, that couldn’t be further from the truth! Let’s assume, God forbid, that you’re injured on the job and can no longer handle your financial affairs. You’ll need to have designated a power of attorney. Whether it’s your wife or someone else, you’ll need to have it in place before the event. The same thing is true for an advanced health care directive.”
The young firefighter squirmed in his seat as I continued, “Yours is a hazardous profession and stuff happens. Best to plan for it now, not from a hospital bed.”
He slowly nodded in agreement.
“You work hard so your family will be taken care of,” I said between sips of coffee. “But your wisdom and love can last a lot longer than you do. Who will raise your children if you die? If both you and your wife should both die?”
From the look on his face, it seemed as if he hadn’t really given these questions much thought.
“Without a plan, a judge who knows nothing about you or your family will make that decision,” I told him. “With a plan you can nominate a guardian. And if you have a disabled child, you’ll need to set up a special needs trust to provide for their needs that are not taken care of by federal or state agencies.”
He slowly nodded again.
“A trust will also protect your children against the loss of their inheritance if your spouse remarries,” I added. “And an insurance trust is a good place to put your life insurance so you can make sure that the proceeds are used to benefit your family the most.”
Continuing his slow nod he asked, “So what is this all going to cost me?”
Looking him straight in the eye I replied, “A trust will save you money. Believe me when I tell you that the cost of estate planning will be a lot less than probate fees to a lawyer and your executor.”
I downed the last of the coffee in my cup and stood up. “So I’ll see you in my office next week as planned?” I asked.
“Definitely,” he said with that now familiar slow nod.
A firehouse conversation with Richard Block, Attorney at Law
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Your Relief Association offers a one-time reimbursement of up to $600 for members or surviving spouses to help you get your estate plan completed. To qualify, send a copy of the receipt or statement showing you paid for these services (or indicate if you wish the estate planning professional to be paid directly) along with your name, address and phone number to Member Services Specialist Maria Rodriguez: by email – mrodriguez@lafra.org; by fax (323) 259-5297; or mail to LAFRA, Estate Planning Benefit Request, Attn: Member Services, P.O. Box 41903, Los Angeles CA 90041.