Estate Planning 101

The word “estate” conjures images of rolling hills and mansions. You may think “I don’t need an estate plan, I don’t have an estate.” Nothing could be further from the truth! Everyone has an estate, no matter how big or small it might be and everyone needs an estate plan. An estate plan is simply a way to ensure that your wishes are upheld in the event that you become incapacitated or after you die.

Parts of an Estate Plan.
A basic plan has three parts: a will, a power of attorney, and a living will.

• Will: A will is a document that describes how your assets should be distributed. While there are some assets, like life insurance or joint assets, that pass directly, without a will, for the most, part having a will is the best way to control who gets what.

• Living Will: The living will (also called an advanced medical directive), is a form document that outlines your wishes with regard to critical medical decisions like life support. Relatedly, there is also a healthcare power of attorney, a form document that allows you to select someone to make medical decisions for you in the event that you cannot make them yourself.

• Power of Attorney: This form document allows you to elect someone to make financial decisions for you during your lifetime should you be unable to make them yourself.  This person could, for example, pay your bills should you become unable to do so yourself.
  

What happens if I don’t have one?

 Without a proper estate plan in place, your assets may not pass in accordance with your wishes upon your death or incapacitation.  Your assets will be held in probate, and what goes to whom will be determined by a judge in accordance with state intestacy laws.   You may not be happy will the verdict. [Just ask Jim Morrison. Read more HERE.]
Also, without an estate plan, your heirs and other loved ones could be burdened by estate taxes, attorneys’ fees, and creditors, eroding the value of what you left behind. This also could cause serious family infighting. [Just ask Aretha Franklin’s children. Read more HERE.]

Why is Estate Planning Important for Dramatists?

Dramatists are in a unique situation because they have intangible assets: the copyrights to their works.  As you likely know, copyrights last for the life of the author plus 70 years. During the 70 years after an author’s death, the copyrights will be owned and controlled by someone other than the author. In other words, someone other than the author will control the artistic integrity of the work, manage any business dealings, and receive royalties from the copyrights.  Without a will (or a with a will that doesn’t specifically address the copyrights) it is quite possible that the copyrights will fall someone who does understand the theatre business or the intent of the author, potentially shortening the life and value of the author’s work.

Jump to: Videos — Articles - External Links