In my last article I wrote about the concept of beginning with Three Words to describe your Brand.  Since I posted that article someone asked me if my example of Apple's Branding Three Words– Design That Works - was a slogan. Apple's actual slogan is 2 words "Think different".

There is lots of room for discussion here.  Arguable, Apple does excel in design style and their products work very well.  It could be as slogan. But, the real focus is...

What Should YOUR Three Words Be?

Let’s consider further what you want your Three Words to do for you and why taking the time to identify them is of value to your client as well as your bottom line.  So we've established that determining the Three Words is a good early step in the Branding Process.  Now you’ll want to make sure you’re selecting worthy words.   But, what criteria might you use in selecting YOUR Three Words for your Branding Campaign? At the very least I’d want Three Words that:

• Accurately describe the benefit and/or the feeling they’ll get from using the product
• Are the basis for Storytelling
• Have durability across appropriate platforms
• That fit accurately into the overall Brand and Company MetaStrategy
• Evoke (the right) emotions in my customers and prospects
• Secure customer loyalty
• Compel the customer to part with their hard earned money for your product

This can be a challenge and though a simple step it isn’t an easy one. For example, let’s say  you sell vitamins. You are especially proud of the cleanliness of your facilities and the safety of your products.  What word would you choose to identify this attribute? How do you weave it into your Branding and Storytelling? What's a better word from your customer's perspective?

• Cleanliness?
• Safety?
• Or would Trustworthy be a better descriptive word for your customers? Or even something else?

For me, the key is to select words that are the basis of:  What the customer will gain or avoid (benefit) by using your product or How the customer will feel using your product and being involved with your brand.

What They Gain and How They Feel

will evoke emotions and affect behavior better than words that describe what you do or how the product is built. Why? Because people don’t care about you as much as they care about themselves.  I’m not trying to be rude, nor are they. It is human nature and you want to appeal to that basic nature as the basis for Storytelling.  I remember the first time I heard the sales adage: sell the sizzle, not the steak.  The other b-school basic reminder is the importance of knowing your customer’s needs. Remember the examples of selling the same car to a little old lady or a young jock.  It was the same car but the difference was the emotional appeal. The little old lady wanted safety and the jock wanted sporty.  The key to success is focusing on the benefits to THEM.

We want words that our client can emotionally identify with because most people make decisions based emotions. Then they determine reasons and rationalization based on features. Your brand appeals first to the benefits so selecting Three Words that represent that customer niche’s emotional trigger and enticement needs to be forethought in your word selection process.

Is this process difficult – yes and it is a necessary and useful step before you set about on a Branding Campaign.  The layers of complexity arise especially if you have a Product Launch that is under the MetaBrand of the organization. They won’t be identical Three Words but they can’t be in conflict with the metabrand.  For instance, there is a common thread throughout all of Proctor & Gamble laundry detergents metabranding but Tide is positioned differently than Era or Cheer. Each will would have its own Three Words but all must fit into the overall Corporate MetaBrand identity.

Three Words & ROI

On a separate thought but a fun one, I’d venture to say that M&As are mostly driven by the money-side but the initial consideration is, “will the acquisition or merger enhance our current brand as well as our bottom-line?”

Not everyone wants to be acquired or merged. But if you do, you can see that selecting the Three Words isn’t just for one simple campaign rather those words become identifiers that drive sales, loyalty and maybe someday a big pay-off if you are the one being acquired or merged.  That’s a great ROI on just Three Words.

There is more to your branding strategy, advertising campaigns and organizational metastrategy but this is a good beginning and an excellent exercise to assure your Branding Strategy (and dollars spent) work for you.

Let me know what your Three Words are and how they have improved your sales. I'd love to hear from you!

Claire McGovern at Thinkso.com wrote a basic and thorough series of blog articles on Social Media Strategy  at http://tinyurl.com/6heqpwv

In this article McGovern walks through steps and gives advice on how-to conduct a solid branding strategy. I especially found her process accurately granular.  She poses a seemingly simple question:  “What three words do you want to define your social media voice?”

Determine Your Brand Voice

I encourage any executive deep thought prior to selecting Three Words:

• What do we want our brand to communicate?
• How will that message enhance sales?
• If not directly aimed at sales – say philanthropy – how can we leverage its customer engagement?
• What Three Words are both representative of the organization AND meaningful to the customer?
• Will the Three Word message solidify brand loyalty/commitment to our product line?
• How do we reach new customers? How do we keep current customers?
• How do we enhance a two-way relationship with our customers for increased loyalty?
• And so many other questions should be explored before determining your Three Words
• Then there are the application questions such as: Should or How do the Three Words change over different Social Media Mediums? – but more on that in another article.

Three Words Can Change The World

With the recent loss of Steve Jobs every executive is pondering Jobs’ great leadership and unwavering laser focus on design that works (I don’t know if these are his official Three Words but they fit his Apple brand, products, social media presence and strategy).

Because of his commitment to these Three Words it impacted every decision and action Apple, Inc. took and consequently, his customers were loyal ambassadors of the brand and willing to pay more…they were devotees. They defended the product’s idiosyncrasy and, ultimately, laid wreaths at his home and corporate HQ.  Steve Jobs was both one-of-them and their fearless leader.

Jobs solved their problems and gave them hope through his products, his uniqueness and his commitment to his customers and the service given even to a little Nano. His stores had the most expensive per square foot cost at $5626 – compared to Whole Foods at $867 or J Crew at $593/sq.ft.*- and yet remained profitable. People go an Apple Store to play, touch, see and totally experience each new product launch – and the “looker” is welcomed with open arms.

On various social media mediums Apple consistently:  interacts with customers; cares what customers think and say about the product; and understand how they use the product.  It is apparent that Jobs and Apple kept true to the Three Words “design that works” in everything they do and on every medium.

What’s Your Takeaway?

Most CEOs and executives don’t believe they can reach Jobs’ honorific status but they are still willing to consider:

• What part of Jobs’ equation fits my organization?
• What can we mimic or create that will result in similar outcomes?  Which parts are applicable to my products and services?
• Where can I do it better – better product design, better customer service, better customer relationships/engagement, broader and deeper market penetration than our current position?
• How can our branding represent more of an “us” relationship with our customers?
• Does our Strategy, Branding, Social Media all clearly encode our Three Words

When asked what a CEO thinks about –  the most resounding answer is:  Sales, Cost of Sales, Profit.

If sales drive the bottom line – assuming other expenses are controlled – then profits result. Branding is an important grease for the sales machinery. It is not the only element but in today’s very noisy marketplace Branding can set you apart from the competition.

But, Branding is not a panacea. Remember that clever Branding will not sell too many inferior products. Putting lipstick on a pig doesn’t make it a swan.  Also, a great product can get lost among the noise if its Branding is ineffective. There is immense competition coming from every angle – sales is no longer just a linear function.

Branding is a great weapon and must translate across all mediums including traditional formats – TV, Print, Radio – as well as social media, information sharing, we’re-in-this-together atmosphere.

Leaders who understand the shift in consumer expectations and desire for engagement will also shift their Branding to embrace Social Media in the Digital Age.

* http://tinyurl.com/3mmy4mp

Recently, in the news, a young couple with their baby got lost in a corn maze. This tourist attraction apparently didn’t have enough signals, signposts or helpful hints for the distressed family had to resort to calling 911 police emergency and ask for assistance in getting extracted from the confusion.

I can relate. I’ve seen Strategic Plans that are so comprehensive and overly amassed you virtually need a GPS just to find your way around them and back again. It makes me wonder if the various contributors are like Charles Dickens and they are paid by the installment. He was paid, like a soap opera, over weekly installments and he took full advantage of his compensation package. As wonderful as his stories are, they are often long and overwritten. The same holds true for some Strategic Plans. Their great ideas, thorough analysis and brave ideation are lost in verbose prose, 3-D charts, indices and footnotes. Oh, like I just did.

I’ve also seen one page flip-chart and a bunch of sticky notes drive the decisions of an entire organization successfully.

So, where is the sweet spot?

When Managers have the keenness to use the Strategy as an ongoing decision-making tool they create more than just contributions to the bottom-line – they help perpetuate the organization’s strength and durability as well as their team’s usefulness.  Great managers at all levels:

• Understand that employees want to be more than just “implementers”
• Know that people want to contribute and make a difference. See what PriceWaterhouseCoopers did to spurn employee strategic creativity and new $100 Million revenue streams http://tinyurl.com/4xl4l23
• Have an over-arcing master Strategy with the biggest, chunkiest goals then allow the departments to be more agile and change/evolve to leverage opportunity
• Use technologies. Even if you’re not a tech company use technologies that are best suited to your clients  – and be willing to hire an agency to use them most effectively

The Executives Role

Executives who are willing to embrace managers’ and employees’ input and tweak the Strategic Plan as appropriate are actually leveraging an internal gold mine.  We hear all the time that employees are important and that it is absolutely critical to delight customers and stakeholders.  Therefore, when suggestions are successfully elevated and the Executive are supportive with real resources, it is an opportunity for the firm and its leaders to walk the talk.

Are you walking the talk?  Are you demonstrating that the employees are worthy? Are you using various methods to reveal customers needs, wants or problems?  Are you looking for ways to increase revenue via your internal gold mine? Do you actively use your Strategic Plan for direction and decision-making? Do you improve it over time?

I’d love to hear your thoughts as you navigate the Age of Social Media and its impact on how employees view themselves and their contributions as well as how you’re using it to improve your Strategy and your bottomline. Let me know how your Strategic Plan has become a vital in this process.

Whew, that is a big, bold statement. What I mean is that too often organizations spend weeks developing a very good strategy to guide them over the next, say, 3 years.  But, within a few months – after some initial launching of Strategic Initiatives – that same very good strategy is not longer used as a talisman or even looked at much less referred to and actively utilized.

What happened?

1. The strategy was never fully understood to be an organic document
2. Too few people gave it the life-sustaining support after it was “completed”
3. The strategy was never embraced by ALL divisions with gusto
4. Sometimes the strategy didn’t include “How”  it affected “People & Relationships” so consequently when it did begin to affect people unfortunately they didn’t know “How” to handle it
5. The strategy wasn’t utilized as guidance and an integral element of what to do, when to proceed, who to include, how to leverage all platforms and then…what to do next

There are several other reasons and occurrences and too many for this article but these are the big chunky ones.

Why do these things happen?

• Surely, this is not an indictment against a person. Rather, lots of people – including many Executives – don’t “get it” or see “why” they are following a particular strategic path when, from their perspective, other actions will garner superior results and so they make decisions in a vacuum and don’t reflect on how it might affect the strategy.
• Employees are often stretched very thin. Taking time out of their over packed day to both explain and then re-iterate the strategy and “how it affects them personally” isn’t often done well.
• Not all CEOs take the time or have the skill set to instill inspiration and motivation that would help employees understand the Strategy, Direction and any Changes and how it impacts their day-to-day operations and output.
  
• People are not always motivated by their immediate managers to follow a particular Strategic path of change but rather encouraged to continue with known actions and predictable outcomes
• Strategy isn’t just quantifiable analysis that “proves” you are on track or not. Therefore, it tends to be more slippery to grasp and hold onto
• Many managers themselves don’t have strategy experience in their own wheel house. They know goals and tasks and performance – but something as comprehensive as Strategic Planning can sometimes feel nebulous – and strategy might not be a skill set they possess so they have difficulty impressing its importance on others much less how to implement it.

What has recently changed?

Over the past several years Strategy has frequently been pushed down to line managers and operations to develop their own strategy.  That decision is built on a firm and accurate belief that these individuals are closest to the customer.

Some managers do a very good job developing a Strategic Plan for their team.  They are excited about having the ability and responsibility to really “affect change” and make things better for the company, the clients or customers and their employees.

Unfortunately, there are two potential pitfalls:

1. Although it is true that the manager is closer to the customer it does not also mean it is also true that the manager has the skill set, time, motivation, experience, measuring tools or decision-making techniques to build their own strategy. Btw, it may not even be true that a good manager or operations lead needs to have that skill set to be effective.
2. With so many fragmented strategies who is at the helm? How is the over all organization organized strategically if there are only departmental or functional strategies and not an over-arching organizational strategy?

Solution:

Organization with a cohesive over-arching Strategic Plan, a motivating leader who follows-up and follows-through. Then, if appropriate, have the head of functions devise their own strategy that supports the leader’s.  Then at all levels are better positioned for ongoing success.

Finally, be willing to alter the initial Strategic Plan to handle significant circumstances – such as changes in legislation, industry standards, customer sensitivities, technology, or competition - is part of this great organic process…and all levels in the organization are vital to its success and the success of the organization.

For more information on Strategy and Strategic Planning in the Age of Social Media, please read my other articles.

Sign Up TODAY and start controlling YOUR Money starting Tomorrow – July 21st … Here’s the link .. http://www.silvamirzoian.com/jumpstart.php?ID=70

Just Scroll Down to Jump Start Your Financial Life

Women, Wealth & Beyond

4 Week Outline (7/21, 7/28, 8/4, 8/11/2011)

Each Session is 60 Minutes with Hand-outs, PowerPoint Slides and Exercises + Q&A that is regarding that particular week’s work. It will be recorded and you can catch up if your schedule is busy or simply want to review.

Objectives:

• Long-term/LifeStyle Funding:  Develop new habits that will make a lifetime difference to you and your family’s money situation, well-being and peace of mind.  Each of you Gain back what you spent for this 5 times over.  The cost is $197 x 5 = $985 back in your pocket (for your LifeStyle Fund) by the end of a 3 months period at the latest.
• Many women save $985 or more it by the end of our 4-weeks together! I believe you can do it, too. But the big question is,  “Do YOU believe YOU can do it, too?”  I hope so!! I’ll show you how start, how to jump over obstacles and how to finish with more money every month.
• Immediate Benefits from these 4 workshop sessions – YOU will learn that:

Week 1:  It is Possible to Wake-Up Very (Financially) Happy

• Do You Love Your Life?
• Identify what really makes you happy
• Face Your Financial Fears knowing your are NOT alone
• Learn how to get others to support your efforts
• Financial Stress is VERY Real but Positivity is even More Powerful

Week 2:  Dry is Good for a Martini or for a Facial Mask (but NOT for YOUR Well of Wealth)

• Have FUN Understanding How Money Works
• Get Comfy with Interest Rates/ Return on Your Investments
• Understand the basics of money and when NOT to dip into your well of wealth
• Make TIME your new BFF
• Easily calculate percentages with a few easy and clever ticks

Week 3:  Your Money Can Make You Money

• How To Keep, Save, Invest More Money
• Stop Bleeding Money
• Make Paying Yourself Easy: PYF = Pay Yourself First (it is very doable with my method)
• Learn the most common traps people make
• Start a LifeStyle Fund for Quality & Dignity – So you can have YOUR LifeStyle NO Matter What Happens

Week 4:  Finance and Investing is Easier than a Diet  - Really! I’m not kidding!

• Gain confidence in your financial decision making
• How To Put Together an Action Plan Just For You That is Easy to do
• Discover the advantages of NOT being a DIY-er
• Improve your accuracy in reading your investment statements
• Easy ways to Un-tangle Investment jargon
• Determine how your investments work – the advantages and weaknesses of each

You won’t need a lot but you will need:

©       An open-mind

©       Willingness to face your pre-conceived ideas about money

©       Follow-Through to do things (maybe radically) differently

©       Complete Worksheet Hand-out Assignments Prior to the Next Session

©       Paper -  such as a spiral notebook with lined paper & pen or pencil or Computer

©       Calculator or app that is a calculator (no need to go out and spend money on a fancy Financial Calculator. A simple one will work for these sessions)

Join us and sign up immediately at http://www.silvamirzoian.com/jumpstart.php?ID=70

Get money from Mom & Dad, a wealthy aunt or Grandpa.  You may be surprised that they will loan you money. Why?  Clever people with cash have figured out the benefits.

5 Benefits to the Lender aka Mom, Uncle, Grandma because they can:

1. Skip the money middleperson and
2. Lend directly to needy family members and still…
3. Make more money than what they are earning at the bank with a CD or in a Money Market account
4. The loan could be more conservative than their current investment
5. Put the cash into an investment within a Trust could have additional estate planning benefits

This is why a professional estate planner, attorney and a tax advisor are needed. It is a good idea to employ them.

It’s quite exciting knowing this win-win is a possible advantage and makes the process worth looking into.

But, heed a warning:  This only works IF the borrower pays back the loan according to the terms of the agreement.

If the borrower (yes, sweet son – this means you) does NOT pay the money back on the loan according to the terms it will cause problems.

Do not minimize the potential damage!!  All financial benefits will be wiped out and may even end up COSTING gift taxes.  Not to forget that the family relations can be severely or even permanently damaged.

Family Matters: Interestingly the damage from default on the loan is not an issue between only the lender and the borrower. Other family members will feel the affect.

How do other family members become affected by a non-repayment of a family loan?

• They may be angry that the borrower “took advantage” of Mom or Dad or Grandma
• They feel that the borrower is “favored” and not being held accountable
• They may blame the lender for making a poor decision for trusting an over-confident or irresponsible family member
• They may have also wanted to borrow money but now -  because of non-repayment by a previous borrower – those funds are no longer available
• They may believe that now their portion of inheritance was just diminished by the amount of non-repayment and gift tax outlay

The general rule is to NOT loan money to a family member unless you are prepared for a non-repayment or you do not collect all the loaned money, suffer the emotional affect, accept the family discourse and for the lender to potentially pay gift tax on it.

Maybe you – the lender -  didn’t intend on it being a gift but according to the Internal Revenue Code a non-repayment of a loan is called a “gift” and that “gift” or non-repayment could result in Gift Taxes (ie – $20,000 or more non-repaid could lead to a gift tax).

One thing you regularly see in this blog is that the IRS is a beast that will demand to be fed.  If you neglect the IRS it could result in legal penalties and jail.

Word to the Wise: Understand the tax code and have your attorney and accountant help you make financial decisions of this sort.  It is well worth the fee they will charge.

Now, if you are ready to loan money to a daughter or niece or grandson or other family member and believe they will pay it back then the information that follows will be helpful.

If you want to borrow from a family member and will pay back the loan then getting educated will help, too.  Read the next installment to discover ways of creating a win-win for all parties involved.

According to a recent Google announcement:

“Google Wallet … will eventually hold many if not all of the cards you keep in your leather wallet today. And because Google Wallet is a mobile app, it will be able to do more than a regular wallet ever could, like storing thousands of payment cards and Google Offers but without the bulk. Eventually your loyalty cards, gift cards, receipts, boarding passes, tickets, even your keys will be seamlessly synced to your Google Wallet. And every offer and loyalty point will be redeemed automatically with a single tap via NFC. “

How many Money Landmines do you see in Google’s own announcement above?

When I say “landmine” please don’t misread my thoughts. I love technology. I go to tech meet ups. I have techie friends and my partner is a multi-platform exec.  Heck, I even have a blog. But, I do see red flags with the new Google Wallet when it comes to YOUR money (and MINE, too).

I hope you see at least 2 landmines. Here are the 4 landmines I found. Let me know if you find others.

Landmine #1: There is the foretelling that you won’t need a wallet anymore.  Wow!!  That implies you won’t need cash anymore.  Those of you familiar with my ebook already know the dangers of using credit and even debit cards.  We all know what that according to behavioral economics and Wall Street mathematicians most of you will spend 12% MORE using a credit card than you would if you had to pull out your wallet to pay with cold hard cash.  If you’re not familiar with this information click here for Free Instant Access to my ebook. You lose – on average 12% and they win.

Landmine #2: The app will store all your cards AND of course the newest and latest Google Offers and other banks’ and merchants’ offers meaning that temptation for overspending and unplanned spending will be vibrating, beeping, buzzing and getting your attention with ever more insistence.

Likelihood, you’ll crack eventually.  You’ll end up spending when you don’t have the money now (put it on credit cards) or you’ll spend unplanned money (yes , you’ll want the stuff but not need the items).  Your cash  goes out to them and not put it into your LifeStyle Fund. Thus delaying your freedom and keeping you in their servitude. You lose and they win.

Landmine #3: Rewards and points accumulation becomes a sport and thus temps many people even further to spend more money just to accumulate the points.  Bank of America’s own website says as a forewarning, “Every reward costs something, even if it’s just the effort of earning it.”

Yes, effort or YOUR money. A very precious commodities that is often not worth the reward they “give back”.  Also, remember, most cards have a FEE you pay after the 1^st year just to be in the program AND your points (and effort of accumulation) usually have an expiration date.

Spending for rewards sake is a losing proposition – namely, your money.

Landmine #4: In an MSN Money May  4, 2011 article from a post by Brian O’Connell at partner site Main Street he wrote,

“A new study from Colloquy, a marketing firm in Cincinnati, shows that about 33% of the 48 million reward points earned by American consumers each year go unused, presumably due to neglect and misinformation, for a total value of $16 billion.

That news will probably make the companies that promote them happy, as the banks, credit card companies and retailers benefit from a huge de facto profit-making engine without having to lift a finger.

Of the $16 billion in unused loyalty points, the average American consumer squanders $205 – enough to buy a round-trip plane ticket from Philadelphia to Miami, or to pay the average U.S. household phone bill for the month.”

Yikes!  That means that the average person loses -  not wins – $205.  Chances are you, as part of the average majority, will fall into this category eventually.

This tells us that the temptation to spend for the point accumulation is like playing against the house in Vegas.

And we know the house always wins!!!  Sure, a couple of folks go home with bragging rights that they came out ahead but at the end of the day the casino wins financially and the average person loses to the house.

Same with reward points. At the end of the year sure some people redeem them but billions of dollars are lost and the card companies, banks and retailers win with an easy profit making engine.

End Game: Will I get Google Wallet on my smartphone? Yep, probably as a back up storage and equal to a safety vault for my cards and accounts. When I fly, sure I’ll let it accumulate my flyer points.  But, I’ll still pull out my wallet, act like a celebrity and pay with cash!

Must I Have a Will? I’m Married. Won’t It All Just Go To My Spouse or Children Automatically?

If you die Intestate (without a Last Will and Testament) only non-probated property will go automatically to your spouse.

What is non-probated property? And what about probated property?  The answer is a bit tricky and hopefully that alone convinces you to have a Will drawn up IMMEDIATELY.

If you are too busy or a bit overwhelmed with life right now then perhaps going to www.legalzoom.com and drawing up a Last Will today is a good starting place. As you know, that’s what I did after my divorce. Since then I’ve had one drawn by an estate attorney but was glad I used www.legalzoom.com as a stop-gap for a short time until I had the funds saved specifically for attorney fees.

To determine what goes automatically to your spouse involves a lot of variables – for instance:

• what state you live in matters
• where you live also impacts property and if it will be probated
• California laws are different than Florida’s
• there are addition matters such as – Does your surviving spouse live in a Community Property (derived from Spanish Law) or does she live in a Common Law (based on English Law) state?
• Where was the property or asset originally acquired?
• Do you live in the same state as the property?
• What if there are children or divorce involved?
• Was some of your money or assets from an inheritance?

It all gets very complicated very quickly.

For many other good reasons, having a Will drawn and an Executor  selected will keep things more organized and protect your surviving spouse or family members.

For additional background check out my other articles on this topic:

Last Will and Testament – Who Needs One? – Part 1
Last Will and Testament – You Need One! – Part 2
Last Will and Testament – You Need More. Like What? – Part 3
Understanding Revocable Living Trusts – The Basics

I Don’t Want to Think About It

Drop, kick and punt………………………It is the one thing we all share no matter who we are. It will happen.  You will die.  Don’t make me come over there and sit on you.  You will not die just because you hire www.legalzoom.com or an estate attorney to draw your Last Will and Testament.

I suggest you work with someone you trust. Work with someone who is a professional and knowledgeable and who can answer your questions and listen to what you want in the end for the people you care the most about today.  Work with someone you are comfortable with discussing an uncomfortable event.

What Else Can Be Done to Make Things Better for My Family?

Look for my article on Understanding Revocable Living Trusts and what you can do BEFORE you pass on for a list of things to do while you are LIVING!!  In additional articles we’ll explore Estate Planning, various Trusts and Lowering the IRS Bill among other important, money saving tactics you can begin now.

**Remember, I am not an attorney. Seek professional advice from a lawyer or other professional**

You need More Than A Will – You Need an Executor Who Helps With the Will Instructions

A testamentary Will aka Last Will and Testament is a document of instructions for AFTER you die.  To be blunt, once you are dead, you can’t make any decisions.  Consequently, before you die you need to select an Executor to help with the instructions in your Will.

In the last two articles I highlighted who should have a Will Who Needs One? Part 1 and in the other article I discussed how it can cost your family money, time and anguish if you do NOT have a Last Will.  But, there is more than just the piece of paper with all your worldly possession and who is going to get what.

You Need to Select an Executor –

This is not a quick or careless decision. It is more than just asking a friend or family member, “Hey, would you be my Executor?”  Nope, when you are considering someone you’ll need to get their agreement to take on the fiduciary responsibilities

An Executor can be frustrated if they aren't prepared - consider an attorney for the job.

and time requirements. Not everyone jumps at this opportunity. It is a big job and an important one.  Don’t be surprised if someone says, “No, thank you.”

You may also want to be wise and select a co-executor or secondary individual in case the original executor is no longer available or alive to fulfill his or her duties.

Back to the Court and Its Costs -

Again, the courts will step in if you do not plan.  Remember, we discussed this “No one works for free – not even our court system.”  This means that if you did NOT select an Executor the court does. And, once again, it could cost your loved ones dearly.  Again, I’d advise you to do your own planning in advance.

If you do not select an Executor, in addition to cost,  the court will appoint one. A court appointed person can be a good man or woman but won’t have the concern for you personal matters…and it could take more time and cos

t to your family!  When you select an Executor they will have personal concern for you, your possessions and assets and your loved ones. They will get matters handled and take the stress away from your family.

An Executor Handles Lots of Important Details

There are many decisions that are needed upon your passing.  Many of them will be handled by your Executor. An Executor helps to facilitate your Last Will and Testament.

An Executor handles all earthy matters. Let’s review some of the details that an Executor may handle:

• paying off your electric bill and other utilities
• filing the Will with the Probate Court (usually required even if no probate isnecessary).
• arrange to have your home cleaned out
• cancel your cellphone
• change or delete your Facebook page
• contact the Social Security Administration
• contact your employer’s benefits department
• contact insurance companies.  Why? There very well could be money due the survivors who are the beneficiary.
• file your tax return after you die? Do you think the IRS just goes away because you have ended your time on earth?  Nope! The IRS is the beast that must be fed! If there is any money exposed, the IRS wants itsshare. Yummy yummy. And the IRS will take as much as it can. (Estate Planning can lower the amount that the IRS gets but I’ll cover that in a later article.)

The list of their duties is much longer and maybe you hadn’t thought much about all that needs to be done upon your death. For instance, just because you have a Will and you name people in your Will to get your possessions such as your old childhood wagon or favorite photos but who makes sure those items actually get into the right person’s hands?  The Executor.

Should Your Spouse or Partner Be Your Executor – After All, They Care

Some people think, “I’ll just make my Spouse or Partner my Executor – besides, they’re getting everything.”  Let’s take a second look at this.

For most people, asking their partner or spouse to be the executor is not the best decision.

Here are a few reasons why they should not be your Executor.  He or she. ……..

• may not have the organizational skills
• may not have a broad enough understanding or ability to get all the governmental details wrapped up
• may not want the fiduciary responsibility
• may need to grieve
• does not have the emotional fortitude to handle the duties of an Executor while they are grieving
• may want to focus on their ongoing career
• may want to rear the children and not spend time tangled in forms and red tape

They might be smart and clever but is this really what they want to be doing and concerned with upon your death?

Why not have someone help – especially if that someone has specific skills like an attorney. Yes, your Executor can be an attorney and often is. Though it does not have to be an attorney merely someone who has the ability and honesty and follow-through on all the various details and who is willing to take on the fiduciary responsibility.

In my last article Last Will and Testament – Who Needs One? – Part 1 we established that you absolutely do need a Last Will – unless you really don’t like anyone.  Assuming you do like and love people then remember to get a Last Will. Unfortunately, I hear myths and misconceptions all the time. Here’s a few.

Misconception 1:  I Don’t Own Enough To Have A Will

Let’s first look at what happens when you do not have a Will regardless of how much or how little you own.  If you die without a Last Will and Testament:

• it is said that you died “Intestate”
• because you didn’t plan yourself
• your matters are turned over to the court system
• not to be too cynical but do you really want the court to be in charge of your possessions and life’s efforts?
• that just doesn’t sound like a good idea
• it is an expensive mistake to die without a Last Will

When you’re gone there is nothing that you can do about it.

Misconception 2: My Family Knows What to Do

What you thought or said really doesn’t matter.  Only a Last Will matters. If you don’t have a Will the courts will make decisions for you.  They are not sensitive to your family.  They can’t ask you what to do and they don’t care what your family tells them. They follow the law. And here is the humdinger…………they will send your family the bill.

What the f*!#?!?  A bill? For dying? Really?

I Love You Now Here’s A Bill You Must Pay……….and another and another and another

When the courts have to do your work for you they will send the bill to your survivors – your family. Yep – it’s quite unpleasant.  If you die without a Will it will cost your family lots of money!

Think about it, no one works for free – not even our court system!

It can get expensive and take YEARS to settle. Of course, nothing is swift or easy so there could be several forms, steps, procedures that your family will have to take action on.  They will feel like the courts are continually asking them to jump through hoops.  And it will cost them money each time! And stress and anguish and hassle and lot of other unpleasantness!!

My guess is that it will cause your loved ones more stress, time and money than you realize. I will assume that making matters worse is not how you want to treat people you care about.

Misconception 3: A  Last Will Costs Too Much

Not any more. How Much Does a Last Will Cost?  It depends on many factors including the assets you own.

After my divorce I needed something quickly. My life was changing rapidly, I was moving, we sold the big house and there was a lot of disruption.  I used the internet company www.legalzoom.com for my Last Will and Testament and other legal documents (ie – Healthcare Surrogate). A Last Will and Testament begins at $69 at www.legalzoom.com. Click here to get information specifically for you.  I was super pleased with them and even had a customer service matter which was handled immediately.

A potential drawback of using a do-it-yourself process is that you may not know to add something to your Last Will and Testament that you need.  Or, you may need another document that you are unaware of.

I like my clients and readers to also use a good Estate Attorney when they have the money for the expense which can range from $2500 up – depending on what you own and other factors such as the amount and types of assets you own – ie: rental property, show car, assets from parents, assets you own with siblings and other assets that you’d want to be assured “all the i’s are dotted and t’s are crossed” and things are handled properly upon your death.

Misconception 4: I Don’t Have the Time

Finally,  it’s great to know that you can complete a Last Will and Testament today. Just go to www.legalzoom.com – even if you end up going to an attorney in a few months – having a Will today ultimately helps everyone. You’ll know that you’ve taken care of those you love.