09/09/2022
Life Expectancy: Hi. American life expectancy has dropped over the past couple of years to age 76. This means that when someone is born now, they can expect to live 76 years (the lowest it's been since the year 1996). There's a lot that goes into that calculation. Death can happen many ways including illness and accidents. It's all factored in. At the turn of the 20th century, life expectancy was only 47 years in the US.
Back then in 1900, there wasn't a lot of job safety or safety equipment. There were no antibiotics. People would swiftly die from acute diseases and now of course we typically don't (Covid being a glaring example of that outlier). Instead we tend to suffer today from lingering, long-term illnesses that may disable us but not kill us right away. It's a different environment. Over the past 122 years going back to 1900, our life expectancy gained 29 years.
Folks are living longer now. That is great if it comes with health and money. People can easily outlast their money. Many retired or elderly folks want me to safeguard certain assets with an Irrevocable Income Only Trust in case they need a Nursing Facility residence, so they can save assets for their children. You cannot directly access all assets placed into such a trust so I always caution folks to think about whether they may need those assets to live off some day. I caution clients to overestimate their monthly expenses and underestimate their expected monthly income when determining whether you might need an asset in the future.
In other words, it's nice to want to protect an asset for your children, but since people are living longer and longer, we have to make sure you will have enough assets to live off for the rest of your life. This could be longer than you think.
A lot of folks want to put burial & funeral instructions into their last Will. But it is very typical for no one to look at someone's last Will for weeks after their passing. Why not? When someone dies there's the shock, the grieving, having arrangements taken care of and trying to figure out what to do next. There are so many things to do and think about that most people don't get to the money part until you have time to catch your breath in a new reality where someone you love is gone.
Therefore, a Will is not the greatest place to put burial & funeral instructions because no one will typically see the Will for weeks after the burial or cremation.
I tell clients I will put such information in their last Will and I will also put it into their Letter of Instructions which I give to every estate planning client after we complete their important documents. The Letter of Instructions details everything we did and what needs to be done and will include burial & funeral instructions.
I also believe it's very important to inform your spouse, your children or your significant other what your choices are. No one likes to talk about death, but typically this only takes one or two conversations. It’s good for the people who will be there after you to know what you want.
Some folks don't want a public wake. Some folks want to be cremated. Others may want to have a celebration of their life, but not right after they die, maybe weeks later to give people a chance to come in from out of state or to plan it properly.
I will make sure your documents reflect your wishes. But the one thing I want to stress, and I learned this from a prominent local funeral director back in the 1980’s, and that is: wakes, funerals and celebrations of life are meant for your family members who remain, because it allows them to grieve and to vent their emotions.
Thank you for reading. I hope you can get outside on this September weekend.
Thanks.
Best,
Brian