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| Alexandra Kontos, Esq. The "K" in RKE Law Group |
Baby-making season is in full effect at RKE Law Group. Three of our
key employees are expecting babies in the next five months. Perhaps it is
these close-to-home pregnancies that are causing me to notice baby bumps
everywhere, whether out at restaurants, shopping, in court and ALL OVER social
media. Now don’t get me wrong. I do NOT have baby fever; I am perfectly happy
and content (not to mention BUSY) with my two daughters,
at least for right now.
In fact, it was not that long ago that I was shopping for baby
strollers myself. When I was expecting Alexa, the Bugaboo was the most popular
stroller around. You could get it brand new for about a thousand bucks (Ouch!).
Or you can do what I did and buy the floor sample at the Ideal Baby Store (that
monster baby store in Hialeah) for less than half of the original price. Still,
it was a hefty purchase for me at the time.
Today, trendy moms can purchase a stylish Stokke Crusi Stroller for
$1,250 (www.albeebaby.com). According to www.financesonline.com, the luxury
baby market for clothing alone is expected to grow to $10.6 billion (that’s
right… BILLION!!!) in 2014 (http://financesonline.com/10-most-expensive-newborn-items-fit-for-a-royal-baby/). This
particular article highlights the “Most Expensive Diaper Bag,” the Louis
Vuitton Monogram Mini Lin Diaper Bag, which retails at $2,200. Crazy, right?!
Expensive strollers; elaborate baby showers with gifts galore;
beautiful maternity photo shoots; and the latest new-baby trend, The Gender
Reveal Party… the list goes on and on, and the dollars continue to add up. With
the billions being spent in the new-baby industry, it is shocking to learn
that so few parents with young children actually have an estate plan in place
in the event of an unexpected death. In fact, despite the reality that a court designates
who becomes a child's legal guardian if both parents die, the research
indicates that only 39% of parents with minors in their households have estate
planning documents, and 13% believe that their spouse and children will
automatically receive the assets they have in the event of their death.
(http://www.dailyfinance.com/2011/08/26/what-america-thinks-about-estate-planning/)
Now, I know you may be thinking that Estate planning is only for
people who have a lot of money and a lot of assets. I used to think the same
thing. But that is simply not the case. It is in our generation’s best interest
to be proactive and forward-looking, and get educated about the importance of
planning for our family’s future. Now, I admit that the thought of planning for
what will happen to your family when and if you should pass away unexpectedly
is not nearly as much fun as planning a Gender Reveal Party, but, in my
opinion, it absolutely should be a priority for expectant couples and for
families with young children.
Say, for example, you buy a life insurance policy and designate your
children as beneficiaries of the policy. If you die while the kids are still
minors, and you have not named a guardian or another representative to
administer the proceeds on behalf of the kids, a judge may appoint a stranger
as a guardian. This person would be entrusted with administering the funds for
the benefit of your children. And what if the guardian’s decisions are not in
line with your intentions? If you have not specifically named this person as guardian
and provided a blueprint for providing for your children, there are bound to be
differences in opinion. Bottom line: you would be leaving your children’s
future to chance.
The good news is that meeting with an attorney and setting up a trust
to receive and manage the life insurance proceeds will ensure that your intentions
are carried out, and that your children are raised and provided for according
to your own intentions.
Personally, I admit that I did not really think I needed a trust-based
plan up until a few months ago. For me, getting my estate plan done is one of
those (many) items on my “To-Do” list that I know is really important, so “I
really need to get to that as soon as I have some down time.” But then life
happens. And the down time never comes. So I get it.
With that being said, today (as in right this very second), I commit
to having my own estate plan complete by summer’s end. I am not only doing this
for myself and for my daughters, but also for the larger goal of being able to
educate parents about the importance of planning for their families’ future. We
are committed to being able to offer this service for our clients, and that is
very exciting because it means that we can reach more people and touch more
lives. So, stay tuned, and til next
time…
PEACE, LOVE & LAWYERING J
Alexandra Kontos (the “K”)
RKE
Law Group
Chief
Business Development Officer, Guardian of Client Happiness and Team Culture,
Attorney & Head of the Family Wealth Building Division
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