Elf on the Shelf: A Cautionary Tale About Estate Planning

Every December, millions of parents engage in an elaborate surveillance operation involving a felt elf with dead eyes and questionable labor practices. But here’s what nobody tells you: that little guy is basically operating without a will, and frankly, it’s downright irresponsible.

The Elf’s Estate Planning Failures. Let’s examine the facts. This elf:

• Travels internationally every night without proper documentation

• Has no designated guardian for when he inevitably gets lost behind the refrigerator

• Maintains a questionable employment relationship with Santa (independent contractor? W-2 employee? It’s murky.)

• Possesses assets (that tiny sleeping bag, the miniature accessories) with no clear beneficiary

What happens if Jingles doesn’t make it back to the North Pole? Who inherits his prime shelf real estate? These are the questions keeping exactly nobody up at night, but perhaps they should be.

What We Can Learn. Unlike our pointy-eared friend, you should probably:

Get a will or a trust. Even if you’re not immortal and don’t report directly to a jolly CEO in the Arctic Circle, you need one. Decide who gets your stuff, who takes care of your kids, and who’s in charge of making sure everything happens according to your wishes. Your wishes, not that big fat man with the long white beard’s wishes. Or the government, for that matter.

Name a power of attorney. If you become incapacitated (say, stuck in a decorative stocking for days), someone needs authority to make decisions on your behalf. The elf just waits until a child finds him and screams. Maybe it’s not your child you wish to have manage your affairs. The time is now to make that decision. You need someone you trust to take care of you and not view a power of attorney as a one-way ticket to Vegas to hit the craps tables.

Review your beneficiaries. Life changes. Maybe you’ve acquired new assets since 2012, like that elf’s expanded wardrobe of tiny sweaters. Make sure your accounts reflect your current wishes. Avoid family blowouts by setting out your very clear wishes before it’s too late.

Don’t hide everything. The elf’s nightly hiding game is cute in December but a nightmare for estate administration. Keep your important documents somewhere your loved ones can actually find them, preferably not perched on a ceiling fan. There are no extra points for forcing your family to become detectives upon your demise. You’d be shocked at some of the outcomes when courts have to ‘guess’ what you wanted.

The Bottom Line. Look, if a magical elf who literally watches you sleep can make you think about your estate planning, then he’s done more good than all those elaborate breakfast cereal scenes combined.

This holiday season, give yourself – and your family – the gift of peace of mind. Create an estate plan. Because unlike the elf, you can’t just disappear on Christmas Eve and come back next year like nothing happened. And if I can help, I’m here.

Now if you’ll excuse me, I need to go move that elf. He’s been in the same spot for three days and my kitties are starting to circle.