Four Legacies. All True. Not All Wise! Part 1 of 2

When we think of a legacy, we most frequently think of the legacy a person leaves following their death.  These two articles are the story summations of true legacies.  The first story might have been your neighbor, a well respected businessman in the community.  The second story features a woman who really tried to do what she thought was right.  The third story features a carpenter that was not rich but left a rich and thoughtful legacy.  The last story features a woman that built a legacy on the basis of a voice she believed she heard while watching the news. 

span style="font-weight: bold;">The Man With Everything:

     A "well off" gentleman in his mid fifties dies un-expectedly  while having lunch at his country club.  This man, worth nearly a million dollars, dies with his family relationships in disarray, hard feelings unresolved with his adult children, and in the process leaves everything to his second wife.

      He had given her, the second wife twenty years his junior, specific instructions about taking care of his adult children and grandchildren, and the church, if he were to die.  Of course he didn't expect to die now.  Aside from dying suddenly, he seemed in remarkably great health.  
      
      Six months after his death, his young wife had remarried and never spoke with any of his children or grandchildren again.  Of course no funds were ever distributed to his family or church.  The children, and grandchildren were overlooked, and understandably hurt.
     
SUMMARY OF HIS LEGACY: 
* A tombstone,
* hurt feelings of children never addressed,
* grandchildren overlooked,
* wasted or dissipated assets.

The Mom That Lost Her Estate:
    A late middle aged, single woman, incredibly active in her church and local charities, blows a left front tire, crosses the center line into oncoming traffic, and dies in an automobile accident.  Unfortunately the tragedy expands to include serious injuries to the children in the other car. 
     
      Though she was a lovely woman, she was incredibly disorganized.  Her children arranged her funeral and began the process of trying to find her papers, policies, etc.  Within weeks they are informed of pending legal action.  The expected lawsuits were eventually filed.
     
      The woman had created  a simple will that no one could find.  An attorney has an unsigned draft copy, and it shows she planned on gifts for her children, grandchildren, her church, and a small gift for her sister.  She is survived by three adult children who pool their money to retain an attorney and pay for her funeral.  
     
      In the absence of her own will, the state has made a will for her.  Probate hearings and legal fees quickly drain the surplus funds of the children.  This is exactly the opposite experience that most adult children expect, that of having to pay out rather than receive an inheritance. 
     
      Assets are not released pending the outcome of the litigation surrounding the accident.  The children arrange to sell the family home, but the proceeds remain in the estate under the watchful eye of the court.  The nature of the injury to the children in the other automobile requires years to fully determine their ability, or lack thereof to fully recover.  The cap on her automobile liability insurance is insufficient to meet the requirements for the care of these injured children.

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      Eventually her children agree to settle the outstanding claims against their deceased mom for everything that remained after her death to stop the "bleeding" of sustaining court costs and litigation.  The attorneys tell them there is really no choice.  Probate closes with nothing but personal effects for the family.
     
SUMMARY OF HER LEGACY: 
* A tombstone,
* four years of financial cost and torment for her adult children,
* nothing for the grandchildren but pictures, and
* nothing for the perpetuation of her values.

The Wise Carpenter Leaves an Amazing Legacy.
    A middle age man, a skilled carpenter, returning to work on the third floor of a new home construction after a brief rain shower, slipped on the scaffolding.  The fall into the materials and tools stored on the first floor renders him unconscious with a closed head injury.  Though rushed to the hospital, he dies without ever regaining consciousness.

   The family, a wife and three small children, has little in the way of savings, but fortunately the husband and wife had created a trust the previous year, and funded it with a very inexpensive life insurance policy.   What happens next?
* The Trustee of the Trust files a death claim with the insurance company that issued the policy to this man.  He receives $450,000 into the trust within six weeks.
 
* Within sixty days, the Trustee of the trust sends the wife a lump sum payment of $25,000 which she utilizes to pay for the funeral, pay off all their credit cards, and catch up the mortgage payments on their home.

* Because every asset, except his personal effects and tools are titled in the name of the trust, the wife is counseled that she is entitled to an expedited probate process, at a cost of a few hundred dollars.
 
* The Trustee of the Trust, also sends a $10,000 gift to the Church the man attended, and distributes a $15,000 gift to an inner city ministry that feeds and clothes the poor.  Additionally, the man leaves $5000 in trust to pay for little league registration for any child too poor to pay.  All coaches in the community are made aware of this fund.  (Special note:  It cost the husband less than $60 per year in premium expense to be able to make these gifts totaling $30,000.)

*  The following month, the Trustee sends her a check for $3500, and this amount of money increased annually to keep up with inflation, is there every month for the next twenty five years.
 
* If the wife remarries, she still receives the funds, but the trust becomes restricted and can only distribute for her needs and the children, and can not be distributed to or attached by the new husband.

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* When his children reach college age, the Trustee pays additional amounts out of the trust account for college tuition or vocational school fees.

THE SUMMARY OF THIS MAN'S LEGACY? 
* His values are funded.  For less than $70 per month, this man funded this legacy. 
* The ministries that he supported in his life are funded in his death. 
* His family is never penalized financially by his death.  The children were not in danger of losing their mom to a job, after losing their dad to death.
* His provision is not dependent on the Probate court administering his affairs.
* His children, even in his absence are encouraged to prepare for life by getting an education.  The Trustee is directed to pay for college or vocational training, but not to release funds for any other purpose until his children turn thirty years of age, should they choose not to get an education.
* His wife knows that she has income that will provide for her until the children are grown and on their own.  She knows that she will not be penalized if she remarries, but she also knows that no new spouse will be able to get to, take or pledge her trust funds.

A wise and thoughtful legacy protects our family and perpetuates our values.  Part Two features one of my very favorite people.  She was an inspiration to all who met her, and to all in her community that participated in her good works.

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