Estate planning—it is an incredibly important tool, not just for the uber wealthy or those thinking about retirement. On the contrary, estate planning is something every adult should do. Estate planning can help you accomplish any number of goals, including appointing guardians for minor children, choosing healthcare agents to make decisions for you should you become ill, minimizing taxes so you can pass more wealth onto your family members, and stating how and to whomyou would like to pass your estate on to when you pass away. 

While it should be at the top of everyone’s to-do list, it can be an overwhelming topic to dive into. To help you get situated, below are some important terms you should know as you think about your own estate plan. 

Assets
Generally, anything a person owns, including a home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, art, clothing, and collectibles.

Beneficiary
A person or entity (such as a charity) that receives a beneficial interest in something, such as an estate, trust, account, or insurance policy. 

Distribution
A payment in cash or asset(s) to the beneficiary, individual, or entity who is entitled to receive it.

Estate
All assets and debts left by an individual at death.

Fiduciary
A person with a legal obligation (duty) to act primarily for another person’s benefit, e.g., a trustee or agent under a power of attorney. “Fiduciary” implies great confidence and trust, and a high degree of good faith.
 
Funding
The process of transferring (re-titling) assets to a living trust. A living trust will only avoid probate at the trustmaker’s death if it is fully funded, meaning it contains all of the decedent’s assets.

Incapacitated/Incompetent
Unable to manage one’s own affairs, either temporarily or permanently; often involves a lack of mental capacity.

Inheritance
The assets received from someone who has died.

Living probate
The court-supervised process of managing the assets of an incapacitated person.  Conservatorship is another term used for this process. 

Marital deduction
A deduction on the federal estate tax return, it lets the first spouse to die leave an unlimited amount of assets to the surviving spouse free of estate taxes. However, if no other tax planning is used and the surviving spouse’s estate is more than the amount of the federal estate tax exemption in effect at the time of the surviving spouse’s death, estate taxes will be due at that time.

Settle an estate
The process of winding down the final affairs (valuation of assets, payment of debts and taxes, distribution of assets to beneficiaries) after someone dies.

Trust
A fiduciary relationship in which one party, known as the trustmaker or settlor, gives another party, known as the trustee, the right to hold property or assets for the benefit of another party, the beneficiary. The trust should be memorialized by a written trust agreement, outlining how the trust assets will be distributed to the beneficiary.
​
Will
A written document with instructions for disposing of assets after death. A will can only be enforced through a probate court. A will can also contain the nomination of guardian for minor children.
 

If you have any additional questions about estate planning, or would like to consult an estate planning professional, please contact our offices. We can make sure you have a comprehensive plan that is tailored to your unique needs and goals.

Most people start thinking about planning their estates when they reach retirement age.

After all, the "normal" progression of life is to get out of school, get a job, get married, have kids, get your kids through college, retire, become grandparents, enjoy life…and then, after a long and fulfilling life, we know that we will eventually die.

But we all know that real life rarely happens this way. People have children and don't get married, people get divorced, they marry more than once, they may never marry or have a family. Real life is full of options, choices, and twists of fate.

Dying, of course, is not an option. Nor do most of us choose how or when it will happen to us. Every time we leave our homes and get in our cars, we are at risk of being in a fatal car accident. Some people never have to leave their homes. Fires and carbon monoxide poisoning take hundreds of lives every year. In some parts of the country, drive-by shootings have taken the lives of innocents, young and old. Athletes in top physical condition die on the practice field. People of all ages are dying of cancer and other illnesses. And now that terrorism has reached our shores, hard-working people in the prime of their lives have died just because they went to work, like any other day.

We take precautions to try and extend our lives for as long as possible. We make sure our cars are in working order. We inspect our homes for fire hazards, and use smoke and carbon monoxide detectors. We eat healthier foods, exercise, and have regular checkups. And, since 9/11, we have all become more aware of our surroundings. No guarantees, but we are doing the best we can.

But what if that is not enough? What if you don't make it to the end of the "normal" road of life? What would happen to your loved ones if you died today? Will there be enough money to provide for them the way you would want? Will they even be able to get to the assets you leave behind, or will your assets be tied up in courts, held ransom by attorney fees and court calendars? How long will they have to wait? And how much will they really get?

Wouldn't it be better to make sure that the people you care about will be taken care of the way you want, especially if your life were to end suddenly and unexpectedly?

Or, let's say you do live until a ripe old age. You could gamble, and wait until the last possible minute to plan your estate. You could be like those people who make estate planning decisions from their death beds in the hospital. But all too often, those hasty decisions are unwise and wrought with error. Wouldn't it be better to put a plan in place now (so you're covered, just in case), and then possibly have years to think about it, polish it and fine tune it until it's just right?

Planning your estate now doesn't mean you will die tomorrow, just as buying homeowner's insurance doesn't mean your house will burn down tomorrow. But if you act now, you won't have to worry about what could happen to your family if your life doesn't follow the normal progression…or about making bad decisions when you've run out of time.

It's called peace of mind...and you can have it. So, when's the best time to plan your estate? Right now!

Believe it or not, you have an estate. In fact, nearly everyone does. Your estate is comprised of everything you own— your car, home, other real estate, checking and savings accounts, investments, life insurance, furniture, personal possessions. No matter how large or how modest, everyone has an estate and something in common—you can’t take it with you when you die.

When that happens—and it is a “when” and not an “if”—you probably want to control how those things are given to the people or organizations you care most about. To ensure your wishes are carried out, you need to provide instructions stating whom you want to receive something of yours, what you want them to receive, and when they are to receive it. You will, of course, want this to happen with the least amount paid in taxes, legal fees, and court costs.

That is estate planning—making a plan in advance and naming whom you want to receive the things you own after you die. However, good estate planning is much more than that. It should also:

• Include instructions for passing your values (religion, education, hard work, etc.) in addition to your valuables.
• Include instructions for your care if you become disabled before you die.
• Name a guardian and an inheritance manager for minor children.
• Provide for family members with special needs without disrupting government benefits.
• Provide for loved ones who might be irresponsible with money or who may need future protection from creditors or divorce.
• Include life insurance to provide for your family at your death, disability income insurance to replace your income if you cannot work due to illness or injury, and long-term care insurance to help pay for your care in case of an extended illness or injury.
• Provide for the transfer of your business at your retirement, disability, or death.
• Minimize taxes, court costs, and unnecessary legal fees.
• Be an ongoing process, not a one-time event. Your plan should be reviewed and updated as your family and financial situations (and laws) change over your lifetime.

Estate planning is for everyone.
It is not just for “retired” people, although people do tend to think about it more as they get older. Unfortunately, we can’t successfully predict how long we will live, and illness and accidents happen to people of all ages.

Estate planning is not just for “the wealthy,” either, although people who have built some wealth do often think more about how to preserve it. Good estate planning often means more to families with modest assets, because they can afford to lose the least.

Too many people don’t plan.
Individuals put off estate planning because they think they don’t own enough, they’re not old enough, they’re busy, think they have plenty of time, they’re confused and don’t know who can help them, or they just don’t want to think it. Then, when something happens to them, their families have to pick up the pieces.

If you don’t have a plan, your state has one for you, but you probably won’t like it.
At disability: If your name is on the title of your assets and you can’t conduct business due to mental or physical incapacity, only a court appointee can sign for you. The court, not your family, will control how your assets are used to care for you through a conservatorship or guardianship (depending on the term used in your state). It can become expensive and time consuming, it is open to the public, and it can be difficult to end even if you recover.

At your death: If you die without an intentional estate plan, your assets will be distributed according to the probate laws in your state. In many states, if you are married and have children, your spouse and children will each receive a share. That means your spouse could receive only a fraction of your estate, which may not be enough to live on. If you have minor children, the court will control their inheritance. If both parents die (i.e., in a car accident), the court will appoint a guardian without knowing whom you would have chosen.

Given the choice—and you do have the choice—wouldn’t you prefer these matters be handled privately by your family, not by the courts? Wouldn’t you prefer to keep control of who receives what and when? And, if you have young children, wouldn’t you prefer to have a say in who will raise them if you can’t?

An estate plan begins with a will or living trust.
A will provides your instructions, but it does not avoid probate. Any assets titled in your name or directed by your will must go through your state’s probate process before they can be distributed to your heirs. (If you own property in other states, your family will probably face multiple probates, each one according to the laws in that state.) The process varies greatly from state to state, but it can become expensive with legal fees, executor fees, and court costs. It can also take anywhere from nine months to two years or longer. With rare exception, probate files are open to the public and excluded heirs are encouraged to come forward and seek a share of your estate. In short, the court system, not your family, controls the process.

Not everything you own will go through probate. Jointly-owned property and assets that let you name a beneficiary (for example, life insurance, IRAs, 401(k)s, annuities, etc.) are not controlled by your will and usually will transfer to the new owner or beneficiary without probate. But there are many problems with joint ownership, and avoidance of probate is not guaranteed. For example, if a valid beneficiary is not named, the assets will have to go through probate and will be distributed along with the rest of your estate. If you name a minor as a beneficiary, the court will probably insist on a guardianship until the child legally becomes an adult.

For these reasons a revocable living trust is preferred by many families and professionals. It can avoid probate at death (including multiple probates if you own property in other states), prevent court control of assets at incapacity, bring all of your assets (even those with beneficiary designations) together into one plan, provide maximum privacy, is valid in every state, and can be changed by you at any time. It can also reflect your love and values to your family and future generations.

Unlike a will, a trust doesn’t have to die with you. Assets can stay in your trust, managed by the trustee you selected, until your beneficiaries reach the age you want them to inherit. Your trust can continue longer to provide for a loved one with special needs, or to protect the assets from beneficiaries’ creditors, spouses, and irresponsible spending.

A living trust is more expensive initially than a will, but considering it can avoid court interference at incapacity and death, many people consider it to be a bargain.

Planning your estate will help you organize your records and correct titles and beneficiary designations.
Would your family know where to find your financial records, titles, and insurance policies if something happened to you? Planning your estate now will help you organize your records, locate titles and beneficiary designations, and find and correct errors.

Most people don’t give much thought to the wording they put on titles and beneficiary designations. You may have good intentions, but an innocent error can create all kinds of problems for your family at your disability and/or death. Beneficiary designations are often out-of-date or otherwise invalid. Naming the wrong beneficiary on your tax-deferred plan can lead to devastating tax consequences. It is much better for you to take the time to do this correctly now than for your family to pay an attorney to try to fix things later.

Estate planning does not have to be expensive.
If you don’t think you can afford a complex estate plan now, start with what you can afford. For a young family or single adult, that may mean a will, term life insurance, and powers of attorney for your assets and health care decisions. Then, let your planning develop and expand as your needs change and your financial situation improves. Don’t try to do this yourself to save money. An experienced attorney will be able to provide critical guidance and peace of mind that your documents are prepared properly.

The best time to plan your estate is now.
None of us really likes to think about our own mortality or the possibility of being unable to make decisions for ourselves. This is exactly why so many families are caught off-guard and unprepared when incapacity or death does strike. Don’t wait. You can put something in place now and change it later…which is exactly the way estate planning should be done.

The best benefit is peace of mind.
Knowing you have a properly prepared plan in place - one that contains your instructions and will protect your family - will give you and your family peace of mind. This is one of the most thoughtful and considerate things you can do for yourself and for those you love.

When considering how to leave assets to your adult children, first decide how much you want each one to receive. Most parents want to treat their children fairly, but this doesn’t necessarily mean they should receive equal shares of your estate. For example, you may want to give more to a child who is a teacher than to one who has a successful business. Or you may want to compensate a child who has taken care of you during an illness or your later years.

Some parents worry about leaving too much money to their children. They want their children to have enough to do whatever they wish, but not so much that they will be lazy and unproductive. Well, no one said you have to give everything to your children. You may prefer to leave more to your grandchildren and future generations through a trust, and/or make a generous charitable contribution.

Next, decide how you want your children to receive their inheritances. You have several options from which to choose.

Option 1: Give Some Now
If you can afford to give your children or grandchildren some of their inheritance now, you will experience the joy of seeing the results. You could help a child buy a house, start a business, be a stay-at-home parent to your grandchildren, or even see your grandchildren go to college—and know that it may not have happened without your help. This would also let you see how each child might handle a larger inheritance.

Option 2: Lump Sum
If your children are responsible adults, this may seem like a good choice—especially if they are older and you are concerned that they may not have many years left to enjoy the inheritance. However, once a beneficiary has possession of the assets, he or she could lose them to creditors, a lawsuit, or a divorce settlement. Even a current spouse can have access to assets that are placed in a joint account or if your child adds his/her spouse as a co-owner. If it bothers you that a son-or daughter-in law could end up with your assets, or that a creditor could seize them, or that a child might spend irresponsibly, a lump sum distribution may not be the right choice.

Option 3: Installments
Many parents like to give their children more than one opportunity to invest or use the inheritance wisely, which doesn’t always happen the first time around. Installments can be made at certain intervals (say, one-third upon your death, one-third five years later, and the final third five years after that) or at certain ages (say, age 25, age 30 and age 35). In either case, be sure to review your instructions from time to time and make changes as needed. For example, if you live a very long time, your children might not live long enough to receive the full inheritance—or, they may have passed the distribution ages and, by default, receive the entire inheritance in a lump sum.

Option 4: Keep Assets in a Trust
You can keep your assets in a trust and provide for your children, but not actually give the assets to them. Assets that remain in a trust are protected from a beneficiary’s creditors, lawsuits, irresponsible spending, and ex- and current spouses. If you have a special needs dependent, or if a child should become incapacitated, the trust can provide for this child without jeopardizing valuable government benefits. If you have a child who might need some incentive to earn a living, you can match the income he/she earns. (Be sure to allow for the possibility that this child might become unable to work or retires.) If you have a child who is financially secure, you can keep the assets in trust for your grandchildren and future generations, and still provide a safety net if this child’s situation changes and he/she needs financial help. This option gives you the most flexibility, control and protection over the assets you worked a lifetime to accumulate and build.

While there is no one right choice for how to leave assets to all adult children, given many individuals’ concerns over protecting inheritances from creditors (particularly ex son or daughters in law), many choose leaving their assets in trust for the benefit of their children and/or grandchildren. Regardless of your ultimate choice, this is an important decision that should be considered with input from your estate planning professional.


See EstatePlanning.com for more information.

If you own a car, then you know it requires regular servicing in order to perform well and be reliable. More than likely, your car came with a recommended schedule for service, based on how many miles it has been driven; after a certain number of miles, you need to change the oil, replace the brake pads, rotate the tires, and so on.

If you have a newer car, you probably have an irritating dash light that comes on when it's time for service and stays on until the mechanic resets it. Either way, whether you pay attention to the odometer or rely on that dash light, it's pretty easy to know when it's time to service your car. And if you keep driving it without servicing it, it's a sure bet your car will let you down.

Like your car, your estate plan needs "servicing" if it is going to perform the way you want when you need it. Your estate plan is a snapshot of you, your family, your assets and the tax laws in effect at the time it was created. All of these change over time, and so should your plan. It is unreasonable to expect the simple will written when you were a newlywed to be effective now that you have a growing family, or now that you are divorced from your spouse, or now that you are retired and have an ever-increasing swarm of grandchildren! Over the course of your lifetime, your estate plan will need check-ups, maintenance, tweaking, maybe even replacing.

So, how do you know when it's time to give your estate plan a check-up? Well, instead of havingmileage checkpoints, your estate plan has event checkpoints. Generally, any change in your personal, family, financial or health situation, or a change in the tax laws, could prompt a change in your estate plan. Use the following list to guide you.

It's a good idea to review your estate plan every year. Set aside a specific time every year (your birthday, anniversary, family gathering) to review it.
 
Event Checkpoints for Your Estate Plan

You and Your Spouse, If Married

• You marry, divorce or separate
• Your or your spouse's health declines
• Your spouse dies
• Value of assets changes dramatically
• Change in business interests
• You buy real estate in another state

Your Family

• Birth or adoption
• Marriage or divorce
• Finances change
• Parent or relative becomes dependent on you
• Minor becomes adult
• Attitude toward you changes
• Health declines
• Family member dies

Other

• Federal or state tax laws change (which just happened at the beginning of 2013)
• You plan to move to a different state
• Your successor trustee, guardian or administrator moves, becomes ill, changes mind
• You change your mind

Source: EstatePlanning.com

Your home is probably the most valuable asset you own. Yet most people don't think about how to hold title until the title company poses the question when you buy or refinance. But this deserves careful consideration, because how you hold title to real estate has far-reaching effects. Let's look at some common ways to hold title.

Individual Name: You can hold title in just your name even if you are married. However, there are some drawbacks you should know about.

First, what would happen if you become mentally or physically incapacitated due to illness or injury and the property needs to be refinanced, or a line of credit needs to be opened or increased? If you are unable to conduct business, the court will need to appoint someone to act for you.

"But, I have a will," you say. A will can't help; it only goes into effect after you die, not if you are incapacitated.

"But, I have a power of attorney," you say. Most powers of attorney end at incapacity. Adurable power of attorney is valid at incapacity. However, many financial institutions will not accept one unless it is on their form. And if accepted, it may work too well, giving the person the ability to do whatever he or she wants with your assets. You could recover to find the property mismanaged or even sold and the proceeds gone.

The court's job is to provide supervision to protect your assets. But once the court gets involved, it will stay involved until you recover or die. The court, not your family or friends, will control how your assets are used to care for you. It is a public process that can be expensive, embarrassing, time consuming and difficult to end if you recover.

Next, what happens when you die? If yours is the only name on the title, the property will almost certainly have to go through the probate court system before it can be distributed to your heirs, even if you have a will. Think about it: if your name is the only one on the title, and you have died, you can't sign your name to transfer title. While there can be exceptions, in most cases the only way to remove your name and put the new owner's name on is through the probate court.

Joint Tenants with Right of Survivorship: This is how most married couples hold title, because it seems fair, it's easy and it's free. Parents and their adult children also often hold title this way, as do unmarried couples.

Indeed, when one owner dies, full ownership does transfer automatically to the surviving owner without probate. But usually this just postpones probate. If the surviving owner dies without adding another owner (which often happens), or if both owners die at the same time, the property will almost certainly have to go through probate before it can go to the heirs.

There are other problems, too. When you add a co-owner, you lose control. With real estate, all owners must sign to sell or refinance. If your co-owner disagrees with you, you could end up in court. If your co-owner is incapacitated, the court will probably get involved to protect your co-owner's interest...even if the ill owner is your spouse.

You expose the property to your co-owner's debts and obligations; you could even lose your home to your co-owner's creditors if he or she is successfully sued. There could also be gift and/or income tax problems if your co-owner is not your spouse.

Finally, because a will does not control jointly owned assets, you could disinherit your family when your co-owner inherits your share. Sadly, and all too often, children from a previous marriage are disinherited when a new spouse is the surviving owner.

Tenants-In-Common: With this kind of ownership, each owner's share will be distributed as directed in his or her will. If there is no will, the property will go to the owner's heirs.

Community Property: Nine states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) have a form of joint ownership between spouses commonly called community property. When you die, your share of community property automatically goes to your surviving spouse, unless your will says otherwise.

The problem with both tenants-in-common and community property is that you could find yourself with several new co-owners when your co-owner dies and the heirs inherit the property. Imagine how difficult it could be to get several owners to reach an agreement, especially if you are trying to sell the property.

You can also run into the other problems (incapacity, lawsuits, etc.) as explained under joint tenants with right of survivorship, but with several owners involved, your risks and problems are multiplied.

Tenants-by-the-Entirety: This form of joint ownership, available between spouses in some states, is similar to joint tenants with right of survivorship in that when one spouse dies, his/her share automatically goes to the surviving spouse, even if the will says otherwise. So you have many of the same risks, including unintentional disinheriting and court interference if one spouse becomes incapacitated.

However, as tenants-by-the-entirety, neither spouse can transfer his/her half to someone else without the other's approval - something joint tenants with right of survivorship and tenants-in-common can both do.

Revocable Living Trust: When you have a living trust, the title of your real estate can be held in the name of the trustee of your trust. Usually you will be your own trustee, so you keep full control of the property. You can buy, sell and refinance real estate just as you can when the property is not in your trust.

If you become incapacitated, the successor trustee you named when you set up your trust will be able to step in and act for you. Because the title is no longer in your individual name (or joint names if married), there will be no need for court interference. If you are married, you and your spouse can be co-trustees, in which case your successor trustee would step in only after you have both become incapacitated or have died.

Your successor is legally obligated to follow the instructions you put in your trust. If you recover, your successor simply steps aside and lets you resume control. When you die, the property will be distributed without probate according to the instructions in your trust, so you don't have to worry about unintentionally disinheriting someone.

SUMMARY: How you hold title to real estate should be given careful consideration. Check your titles and make any changes now while you can.


Source: EstatePlanning.com

A Free Estate Planning Webinar for American Families and Businesses

March 22, 2013 • 2:00 p.m. - 3:00 p.m. E.D.T.

Speaker:
Randy Gardner, J.D., LL.M., MBA, CPA, CFP®


It’s a common myth that estate planning is only for wealthy families.  But the fact remains that estate planning is not about the value of what you own, but the way you value what you have.  Many Americans are not aware that the lack of proper planning often results in chaos for those left behind – especially if a family business is involved.  Recent surveys show that three major reasons clients plan are to minimize discord among heirs, to avoid lengthy probate courts, and to protect children from mismanaging their inheritance.

Nationally-known estate planning attorney Randy Gardner explains the fundamentals of estate planning using terms you can understand.  Gardner will also discuss:

• Why everyone over the age of 18 should have an estate plan or will.
• Why couples with young children must have an estate plan addressing guardianship.
• Why it's necessary to plan for incapacity that enables another person to make health care decisions. 
• How a Revocable Living Trust can help your beneficiaries avoid costly probate and delays.
• How to avoid the pitfalls of using do-it-yourself wills and estate planning forms.

About the Speaker:
Since 1983, Randy has served as an independent, fee-only tax, financial, and estate planning adviser for thousands of individuals and their advisers. He was formerly a tax and wealth management adviser with Arthur Young (now Ernst & Young LLP). Randy Gardner is also a Professor of Tax and Financial Planning, Director of the Certificate in Financial Planning Program at the University of Missouri - Kansas City, and nationally-recognized continuing education discussion leader for CPAs, attorneys, and financial planners. He is coauthor of the books, 101 Tax Saving Ideas and Tools and Techniques of Income Tax Planning, and co-editor of WealthCounsel Estate Planning Strategies. In 1997, he was recognized as Educator of the Year by the Missouri Society of CPAs.

Procrastinating about your estate planning? If you’ve been postponing it because you’re just not sure how to get started, here are some steps to help spur you on.
 
1. Set a deadline. We all know how life can get in the way of something like this. Plan to have it done by the end of the year or by your next birthday or anniversary.
 
2. Become an educated consumer. It is much better to become educated about the basics of estate planning on your own time than to pay an attorney or other professional to educate you. Save your money for questions about your specific situation. There is good general information readily available online and in books written specifically for consumers. (PetersonEstatePlanning.com and EstatePlanning.com are excellent sources of accurate, easy-to-understand information.) Peterson Estate Planning often provides seminars on estate planning; these are also an excellent way to start your education.
 
3. Organize your financial information. Create a personal balance sheet. Make a listing or spreadsheet of your assets, their market values, any debts against them, the resulting net values and how they are titled. Gather the actual deeds and statements so your attorney can see them.
 
Include your home and any other real estate; other titled property such as a car or boat; bank accounts; interest bearing accounts (savings, money market, CDs); stocks, bonds, mutual funds and other investment accounts; retirement savings including profit sharing, IRAs and pension plans; business and partnership interests; life insurance policies and annuities; receivables (people who owe you money); items of special value such as coin collections, antiques, artwork, jewelry; an estimate of your personal property; and a listing of all debts other than those connected to the assets listed above (credit cards, personal loans, unsecured lines of credit).
 
Be honest about this. Your attorney can only plan with the information you provide. If you provide incomplete information, you will have an incomplete plan.
 
4. Make a list of all the people you want to inherit from you (spouse, children, grandchildren, nieces, nephews, siblings, a life partner to whom you are not married, special friends, etc.). Include their full legal names, dates of birth, current addresses and how they are related to you. Be sure to note if there are any special needs involved (child, parent, even a pet). You may also want to include a charitable, educational or religious organization.
 
5. Think about how and when you want these people and/or organizations to inherit from you. Treating all of your children equally is not always the fair thing to do; for example, one child may have done very well in business and another may be just getting by on a teacher’s salary. If you are married, you will want to make sure your spouse has enough money to live out the rest of his/her years securely. If this is your second marriage, you will want to make sure your children will also inherit from you.
 
Some people like to distribute the full inheritance right away, others in installments. Still others prefer keeping the inheritance in a trust where it will be protected from creditors, divorce, and irresponsible spending.
 
6. Think about whom you want to be your executor (if you have a will) or your trustee (if you have a trust). Automatically naming your oldest child or naming all of your children to act together is not always the best idea. The person(s) you name to take on this responsibility should be someone you trust, whose judgment you respect, and who will also honor your wishes. If you don’t feel you have good candidates (they live too far away, they’re too busy, they aren’t responsible enough or your children have a history of disagreeing with each other), consider a professional to be your executor or trustee.
 
If you have minor children, you will need to decide whom you want to raise them if you should die before they reach legal age and whom you want to manage their inheritance until they reach the age(s) you want them to inherit.
 
7. Think about whom you would want to make health care decisions for you if you become unable to make them for yourself and if you have specific instructions about your care or a certain facility (hospital, assisted living facility, home care or nursing home).
 
8. Write down your thoughts and questions as you go along so you will remember to discuss them with your attorney. You do not have to make all these decisions on your own. Most estate planning attorneys have counseled many families and they have seen the results of proper and improper planning. An experienced attorney will be able to guide you with these decisions, but he/she does not know your family like you do. If you give some advance thought to these matters, it will help your attorney to help you.
 
Keep in mind that estate planning is a process. It may take several meetings with your attorney to get things the way you want them. You will also need to update your plan from time to time as your situation changes over your lifetime.
 
9. Yes, you do need an attorney. An experienced estate planning attorney has the technical expertise to draft documents correctly and will know how to make your plan work foryou, the way you want. They also understand the legal requirements in your state. Laws vary greatly from state to state, and a do-it-yourself program or kit may not tell you everything you need to know. A simple mistake or omission can have far reaching complications that will only come to light after you are gone.
 
10. If you are concerned about the expense, tell the attorney your concerns. Perhaps you can pay in installments. Maybe you can do more of the work upfront to save the attorney some time (and save you some money). If he/she can’t do it on your budget, perhaps you can get a referral to someone who can. Start with what you can afford (a will and term life insurance, for example) and upgrade later when possible.
 
Yes, this is a big project and it can seem overwhelming. But remember why you are doing this: you love your family and you want to do what is best for them. Once your estate plan is in place, you will have the best benefit of all—peace of mind.


Contact Peterson Estate Planning today to schedule a free estate planning consultation and take your first step toward peace of mind.

Source: EstatePlanning.com

Most young adults think they are invincible. But the reality is that anyone, at any time, can become seriously ill or be injured in an accident or a random act of violence. And far too many of us know the tragedy of a promising young life that was abruptly cut short.
 
Once a child turns 18, parents lose the legal ability to make decisions for their child or even to find out basic information. Learning you will not be able to see your college student’s grades without his/her permission can be mildly frustrating. But a medical emergency can take this frustration to a completely different level. The parents (or a sibling or another person) will probably have to go to court and ask for permission to obtain information about the student’s medical condition, be able to make decisions about treatment, and have access to the student’s financial records and accounts.
 
The following legal documents, prepared by an estate planning attorney, allow you to name another person to make medical and financial decisions for you if you are unable to make them for yourself. The person(s) you select should be someone you know and trust, and a candid discussion should occur now so they know what your wishes would be. These documents are not expensive, and everyone over the age of 18 should have them.
 
Parents should consider scheduling a visit with their estate planning attorney after each child’s 18th birthday, and encourage other parents to do the same with their young adults. Having these documents in place does not mean anyone expects to use them, but everyone will be glad to have them should they be needed.
 
In the Event of Incapacity

• A Durable Power of Attorney for Heath Care gives another person legal authority to make health care decisions (including life and death decisions) if you are unable to make them for yourself.
• A Durable Financial Power of Attorney gives another person legal authority to manage your assets without court interference. (A “regular” power of attorney ends at incapacity; a “durable” power of attorney remains valid through incapacity.) Your attorney can write it in such a way that it does not go into effect until you become incapacitated.
• HIPPA Authorizations give your doctors permission to discuss your medical situation with others, including family members and other loved ones.

In the Event of Death
Most young adults do not have substantial assets, so a simple will is probably all that is needed at this time. It will let the young adult designate who should receive his/her assets and belongings in the event of death. Otherwise, the laws of the state in which the young adult lives will determine this, and that may not be what anyone would want.
 
After the Documents Have Been Signed
A little housecleaning may be in order. It is important that the designated person knows where to find financial records and passwords if needed. Tidy up your computer’s desktop. Make a list of accounts and passwords (including your computer’s password), print the list and put it in a safe place; a hard copy is important in case your computer is lost or stolen. If you use an online back-up system, be sure to include it. Don’t forget online accounts and social media. If there is anything you don’t want someone (think, parents) to see, either get rid of it now or ask a friend to delete files or remove things if something happens to you. Finally, update your documents as your life changes.

Source: EstatePlanning.com