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Author: Sara Thomas

Categories
Estate Planning

Navigating End-of-Life Care: Lessons from a Daughter’s Tragic Experience

In an aging society, you might face difficult end-of-life decisions for your loved ones sooner than expected. And when you do, you’ll realize the journey through end-of-life care is rarely straightforward. A recent and heartbreaking story from Maggie Schneider Huston in Newsweek illustrates this. In this article, I’ll highlight key insights from Maggie’s experience and offer practical advice for your situation. 

First, know that an advance directive is a legal document that outlines your wishes for medical care if you cannot decide for yourself. In most states, it also gives authority to a person or people you choose to act on your behalf and ensure your wishes are fulfilled. With that, let’s dive into Maggie’s story. As you read, consider how you might prepare for similar situations in your life or the lives of your aging relatives.

What Happened?

Maggie’s story begins in 2023. Her mom died, and shortly after, Maggie’s father, Terry, revised his will and created an advance directive. He wanted to be entirely prepared for a planned heart surgery he was to have less than three months later. 

His advance directive reflected his desires that he’d been clear about – that he did not want to suffer when his life was coming to an end. He did not want machines to keep him alive. He only wanted to be comfortable. Maggie and her siblings understood and supported their father’s wishes. They gave one of his doctors a copy of his advance directive before the surgery. That doctor later admitted that he hadn’t read it. Terry’s other two doctors did not know he had an advance directive.

After Terry’s heart surgery, his health declined rapidly. As he was lying in the hospital bed, his doctors arguing that he could live with the assistance of machines, he told them that’s not what he wanted. He repeatedly asked for hospice care. Despite Terry’s wishes, his doctors would not order hospice care for him.

Maggie and her siblings quickly got involved and read Terry’s advance directive to the doctors. And after repeated requests, the doctors finally relented. He died shortly after. Even though Terry’s wishes were finally honored, it wasn’t without frustration and heartache for Terry and his family. 

It’s easy to see why the doctors insisted on keeping Terry alive. Their job, after all, isn’t to facilitate death but to promote life (no doubt the fear of being sued for medical malpractice was a factor, too). So it’s not a leap to think that if Terry didn’t have an advance directive, he would still be alive today, subsisting on the assistance of machines at an extreme cost to the family.

So, as Maggie’s story illustrates, having an advance directive is just the first step. You must also ensure that the advance directive is readily available and that your chosen advocates are prepared to fight for your wishes if necessary. It also helps to have a trusted lawyer by your side. 

Advocating for Your Loved Ones

Maggie’s experience with her father shows how important advocacy can be. If you find yourself in Maggie’s situation with a parent or other loved one, here are some strategies you can take to ensure their wishes are honored:

Be prepared to speak up and ask questions. If you need help understanding something, ask for clarification. Don’t be intimidated by medical jargon or embarrassed about asking for explanations.

Ensure that all medical team members have read and understood the advance directive. Don’t assume that because one doctor has seen it, all of them have.

If your loved one’s wishes are ignored, don’t hesitate to escalate the issue to hospital administration or patient advocacy groups. Remember, you’re not just a visitor but an essential part of your loved one’s care team.

Keep a journal or log of all interactions with healthcare providers. Document who you spoke to, what was discussed, and any decisions made. This can be invaluable if there are disagreements or misunderstandings later.

Build relationships with the nursing staff. The nursing staff spends the most time with patients and can be powerful allies in advocating for your loved one’s care.

Consider bringing in outside help if needed. If you feel your loved one’s rights are being violated, this could be a patient advocate, a social worker, or even a lawyer. Read on, and I’ll show you how to get my help and support.

Take care of yourself during this process. Advocating can be exhausting and emotionally draining. Eat well, get enough sleep, and take breaks when needed.

Your role as an advocate can be challenging, but it’s crucial to ensure your loved one’s wishes are respected. You can also prepare for your future so your loved ones have the support they need to advocate for you if the time comes.

How to Help Your Loved Ones Avoid Similar Outcomes

To help your family avoid the challenges faced by Maggie and her siblings, consider the following steps:

Create a comprehensive advance directive and designate a healthcare proxy. This crucial first step involves clearly outlining your wishes for end-of-life care in a thorough Life & Legacy Plan. When you work with me to create your Life & Legacy Plan, I can help you get clear on specific treatments you do or do not want, choose the right people to be your representatives, and ensure they understand and are willing to advocate for your wishes. All these considerations are critically important.

Communicate your wishes openly and distribute your advance directive. Have frank discussions with your family members about your end-of-life preferences. Ensure all relevant family members understand and respect your decisions, proactively addressing concerns or disagreements. Once your wishes are clear, provide copies of your advance directive to your representatives, family members, and primary care physician. I will maintain a copy of your advance directive when you work with me. This wide distribution helps ensure your wishes are known and can be quickly accessed when needed.

Regularly review and update your Life & Legacy Plan. Life circumstances and health conditions can change, potentially affecting end-of-life care preferences. That’s why my Life & Legacy Planning process includes regular reviews of your plan so we can update your plan if needed. This ongoing process of review and update helps ensure that your end-of-life care plans always accurately reflect your current wishes and circumstances and that your plan will work when you and your loved ones need it to.

Finally, remember, end-of-life care isn’t just about how we die – it’s about how we live our final days, weeks, or months. Planning and being prepared to advocate can ensure that this time is as meaningful and comfortable as possible, aligned with your values and wishes. In doing so, you’re providing a final act of love and respect, honoring a life well-lived right up to its very end.

How We Help You Navigate End-of-Life Care

As Maggie’s story clearly illustrates, end-of-life situations can be complex and emotionally challenging. The best time to prepare for these difficult moments is now. We help you create a comprehensive Life & Legacy Plan that ensures your end-of-life wishes are respected, your loved ones are empowered to advocate for you, and your care aligns with your values when needed. Don’t leave your end-of-life care to chance. Let us help you create a plan that works when you and your loved ones need it most.

Schedule a complimentary 15-minute consultation to learn more. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

A Power of Attorney May Not Be What You Think

If you’ve ever considered planning for your future or helped someone plan for theirs, you’ve probably heard the term “power of attorney.” But do you know what it is? The terms “power” and “attorney” carry weight but may not mean what you think. There are many misconceptions about what a power of attorney is and what authority it gives someone. And no, it doesn’t grant someone a temporary law degree. 

I’ll address the misconceptions about powers of attorney so you know what to do if someone appoints you as their power of attorney. Then, armed with this knowledge, you’ll understand your legal responsibilities so you don’t inadvertently make any mistakes or run afoul of the law.

What is a Power of Attorney?

Let’s start with some background info. If a power of attorney doesn’t confer attorney status, then why is it called that?

Generally speaking, a power of attorney is a legal document granting someone else the authority to act on your behalf regarding your financial life. The term “power of attorney” is a bit of a historical holdover. Originally, powers of attorney were primarily used to appoint lawyers to represent individuals in legal matters. However, the concept has expanded over time to include appointing someone to act on your behalf for various purposes.

So, while you don’t need to be an attorney to hold a power of attorney, the term has continued due to its historical origins. Granting power of attorney is a way to indicate that an appointed person has the authority to act as your agent or representative, similar to the way an attorney would act on your behalf.

There are times when it’s necessary to preserve your assets, especially if you reach a point in life when you are unable to manage your own financial, legal, or healthcare matters, whether from old age, a terrible accident, or simply being out of the country for an extended period. In each of these cases, it’s possible that if you don’t have someone acting on your behalf, problems could occur. Your financial institutions could charge extra fees on your accounts, a fraudster could drain them, and you wouldn’t know it happened; taxes could go unpaid, your property could go into foreclosure, or your credit could be ruined. So, to prevent these horrific outcomes, you want someone else to be able to maintain your financial life on your behalf.

Types of Powers of Attorney

We don’t need to get too much in the weeds here (if you want to get in the weeds, though, read to the end, and I’ll show you how to book a call with me); know that there are different types of powers of attorney, each with its specific purpose. Here are some examples:

General Power of Attorney: This grants the agent broad authority to act on your behalf, including managing your finances and signing legal documents, even if you can handle your affairs. It becomes effective as soon as you execute the document. When might you want this? Say you travel for work, and you and your spouse have decided to refinance your mortgage. You may want your spouse to sign the paperwork on your behalf rather than wait until you’re back in town.

Springing Power of Attorney: This also grants authority to someone to manage your financial and legal affairs. You can execute the document whenever you want, but it doesn’t kick in until you can no longer make your own decisions.

Durable Power of Attorney: This type of general power of attorney remains in effect even if you become incapacitated. Think of it as the General and Springing Powers of Attorney combined.

Limited Power of Attorney: This grants the agent authority to handle specific tasks only, such as managing your property or making healthcare decisions.

Healthcare Power of Attorney: This grants your named agent authority to make medical decisions on your behalf. 

Even though each of these documents operates differently, they all have one crucial thing in common: the agent’s power ends as soon as you die. 

What No One Told You About a Power of Attorney: It Ends With Death

You may mistakenly believe that a power of attorney gives someone the right to access your financial accounts indefinitely. However, a power of attorney is a temporary arrangement that ends when the person who granted the power dies. What does this mean, exactly?

Let’s say your aging mother can no longer manage her affairs, and she executed a Power of Attorney to give you the authority. While she’s living, you can access her bank accounts to ensure all her bills are paid and paid on time. But as soon as she dies, you no longer have the legal authority to access her accounts. If she had a Will or no estate plan, you would have to file paperwork with the probate court and wait for the case to make it through the court system until the judge grants you authority again. In the meantime, if you can’t afford to cover her bills along with your own, you may have to decide to let her bills go unpaid. If she still has a mortgage on her house, for instance, and you can’t pay her mortgage and yours, the bank could begin to foreclose, and you could lose any equity she had. This equity could have been a significant part of your inheritance. 

Going to court can be frustrating and time-consuming, and negative consequences can result if you haven’t planned appropriately. 

The Good News

With some careful planning ahead of time, you can ensure all your bills get paid, and your assets are preserved for your loved ones. The way to do that is by creating a Life & Legacy Plan with a living trust. A trust is a legal arrangement that allows you to transfer your assets to a trustee, who manages them to benefit your beneficiaries. Notably, a trust survives your death, so there’s no disruption in the ability of someone to manage your finances after you die.

You owe it to yourself and your loved ones to ensure your power of attorney, trust, and related estate planning tools are created correctly and updated over time and that you understand the benefits and consequences of your plan. 

How We Help You Preserve What Matters

Understanding the limitations of a power of attorney and the benefits of a trust is crucial for protecting your hard-earned assets. When you work with me to create a Life & Legacy Plan, I’ll empower you with the education you need so you can make the right choices for yourself and your family, that you fully understand how your plan works, and that your family has my support after you’re gone. Once your plan is in place, you can rest easy knowing that your wishes will be honored, your loved ones cared for, and your property protected.

Schedule a complimentary 15-minute consultation to learn more and start your journey toward a secure financial future.

Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

Preventing Family Feuds Over Your Personal Belongings

The passing of a loved one is a heartbreaking event, filled with grief and sorrow. However, the aftermath can become even more painful if disagreements over their personal belongings tear your family apart. These disputes, primarily when centered around meaningful objects, can leave lasting wounds that may never fully heal.

But it doesn’t have to be this way. By understanding the emotional weight of possessions, the power of perception and taking proactive steps, you can prevent such heartache and foster a more harmonious grieving process for your family. We’ll explore practical strategies to ensure your final wishes are honored, and your loved ones stay united amidst loss.

Perception Is the Basis for Conflict 

Your personal belongings are so much more than just material objects. They are tangible reminders of your life, personality, and connection to the people you hold dear. These items can provide immense comfort and solace for your grieving family when you’re gone. However, the emotional ties to your possessions can also set the stage for conflict. 

Your family members may have very different ideas about the value and significance of your possessions and how your possessions should be distributed. Emotional attachments to personal property often run deeper than anyone realizes, reflecting unresolved feelings of love, guilt, or regret. These differences in perspective can create tension and resentment and even damage relationships that have lasted a lifetime.

The Value of Open Communication and Thoughtful Planning

To minimize the risk of family feuds over your personal property, one of the most effective things you can do is have open and honest conversations about expectations and preferences long before you’re gone. Here are some strategies to consider:

Start the Conversation Early. While it may feel awkward to discuss such sensitive topics, it’s far better to address them proactively. This allows for a more thoughtful and deliberate discussion of everyone’s wishes. Ideally, these conversations should occur when all parties are calm and emotionally prepared rather than amid grief.

Record Yourself. Don’t underestimate the value of getting on video. Recording yourself explaining your wishes and why can be very powerful, as well as provide clarity and decrease conflict for your loved ones. When you create your estate plan with my firm, we include a Life & Legacy Interview with every plan so that your decisions and their reasons are clear to your family. When there’s no ambiguity, the possibility of conflict lessens.

Make an Inventory. Make a comprehensive list of all your personal belongings, including their sentimental value and any specific requests or wishes you have associated with them. This inventory can be a crucial reference point for your family members after you’re gone. If possible, involve your loved ones in this process so that they understand your wishes and can ensure your voice is heard.

Create a Life and Legacy Plan. A Life and Legacy Plan can minimize disputes by clearly outlining your wishes regarding distributing your personal property. In addition to the Life & Legacy Interview, every plan includes a “personal property memorandum,” which provides additional clarity, specifying which items should go to which beneficiaries. We even help you update your plan to reflect changing circumstances or preferences and prevent family conflict.

Focus on Your Family’s Needs. Ultimately, the goal of your planning should be to honor your memory and support the well-being of your loved ones. Prioritize the needs of grieving people and try to find solutions that minimize conflict and pain. Sometimes, creating a process where each family member can express their attachment to specific items and why they matter can help others understand their emotional value rather than just their monetary worth.

Helping Your Family Sell Your Belongings with Care and Intention

Sometimes, your loved ones may need to sell your personal property, which may be necessary to settle your estate, pay debts, or ensure that your items are put to good use. Whether or not the items sold hold sentimental value, this can be another task ripe with conflict. Further, many family members don’t know what the process entails. But you can help make it easier for them by doing a lot of legwork now.

In your Life & Legacy Plan, you can specify how you want your items sold and outline the process for your loved ones. Here are the steps your family will need to take:

Assess the True Value of Your Items. Start by evaluating the worth of the items to be sold. This may involve hiring an appraiser, especially for valuable items such as antiques, artwork, or jewelry. An appraiser can objectively assess an item’s value, which can help prevent disputes over perceived worth and ensure a fair sale.

Choose the Right Selling Method. Depending on the type and value of your belongings, your loved ones must choose a selling method. A yard sale or estate sale might be appropriate for everyday household items. An auction house, consignment shop, or online marketplace may be the way to go for more valuable items. Your family should also be mindful of any fees or commissions associated with these approaches. 

Enlist the Help of an Estate Sale Company. Hiring a professional estate sales company can be a game-changer if your estate contains many items or your family is overwhelmed by the process. These companies handle everything from pricing items to advertising the sale, managing the event, and disposing of unsold items. They typically charge a percentage of the sales, but their expertise can make the process smoother and less stressful.

Understand the Legal Requirements. Depending on your jurisdiction, specific legal requirements for selling estate property may exist. For example, an executor may need court approval to sell certain assets or follow particular procedures for notifying beneficiaries. When you create your Life & Legacy Plan with us, we will be there for your family when you no longer can be, and we can advise them on all the necessary legal requirements. 

Plan for the Proceeds. Decide how the sale proceeds will be used and document your wishes in your Life & Legacy Plan. We can help you specify whether they will be distributed among your heirs, used to pay off estate debts, or donated to charity. 

Leave a Legacy of Harmony, Not Conflict

Your loved ones deserve to grieve with dignity and respect, not embroiled in bitter disputes. Take the time now to put the proper measures in place, and you can rest assured that your final wishes will be honored and your family will stay out of court and conflict after you’re gone.

This is the legacy you can leave behind – not just the material objects you’ve accumulated over a lifetime, but the gift of harmony, understanding, and compassion for those you hold most dear. 

Family disputes over personal property can cause significant pain and tension at a time when loved ones should come together. We help you create a Life & Legacy Plan that ensures your belongings are distributed according to your wishes without conflict or confusion. With careful thought, clear communication, and the right tools, your Life & Legacy Plan will unite your family, even amid grief. And you’ll gain the peace of mind knowing that your wishes will be honored and your loved ones will be supported long after you’re gone.

Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

What Do Lasagna and Estate Planning Have in Common?

Have you ever heard horror stories about families fighting over Grandma’s jewelry or getting stuck in a never-ending legal battle after someone passes away? Or how long it can take to sell a house tied up in the court process? What about family members being denied their inheritance completely? Unfortunately, these situations happen every day. Not even the rich and famous are immune! A simple Google search will pull up dozens of celebrity stories about all the conflicts after they die.

But most people don’t realize these things are avoidable – if you understand the process. So, if you’ve thought about creating a will or trust to avoid these outcomes, let’s ensure you’re fully aware of what’s at stake first. We’ll use a food analogy throughout this article, so our apologies if we make you hungry.

Lasagna as an Example of the Difference Between a Will or Trust and an Estate Plan

Let’s start by getting clear on what we’re talking about. You’ve probably heard “estate planning” numerous times, but do you know what it is? Unlike what you may have heard or read about, estate planning and the documents involved – such as a will or trust – differ. 

Think of your favorite recipe. We’ll use lasagna as an example. A lasagna recipe includes a few different components: the ingredients needed to make the dish, how much of each ingredient you need, and the steps you have to take to transform the ingredients into a dish. Without the steps, the ingredients are just ingredients—they don’t create anything. 

Estate planning is similar. Your estate plan is the recipe, and the documents are the ingredients. A will or trust may be the pasta or the sauce, but they are not the lasagna. Sure, they’re necessary components of the lasagna, but without the other ingredients and steps, they’re just pasta and sauce. Same with estate planning. If you just create a will or trust, you have just documents. They don’t do anything by themselves.

That most people think the documents ARE the estate plan is a common misconception based on a lack of knowledge. Too many people are focused on the documents, even many lawyers, and so think all they need to do is create those documents, sign them, and call it a day. Even so-called financial “experts” will tell you this. And there’s a new tech industry based on this premise, with do-it-yourself programs like LegalZoom. AI has even joined the fold.

All these people and companies are talking about the documents or ingredients. They are not telling you about the recipe. They are not showing you how to make the lasagna, but rather, they’re telling you about some (not even all) of the ingredients you need. The results are the following: families in court and conflict, fights over necessary ingredients, long wait times to sell a house or distribute any of the assets, and even big, unnecessary tax bills. 

To truly protect your loved ones and ensure your wishes are carried out the way you want, as easily as possible, for the people you love, you need a comprehensive estate plan. This plan should lay out not only the ingredients you need but also in what amounts and what actions must be taken to make the lasagna.

If you haven’t created a comprehensive plan or your current plan fails for any reason, know that there’s a plan already made for you. It’s a plan in your State’s law and may differ significantly from what you want. 

Your State’s Recipe for Lasagna May Be Gross

Let’s return to our lasagna example to illustrate the difference between the State’s plan for you and one you can create for yourself.

Let’s say the State’s recipe for lasagna includes spicy sausage, but you can’t tolerate spicy foods. The state’s plan may contain meat, but you’re a vegetarian. Or, it could be that the State’s recipe includes mushrooms, but your child is allergic to mushrooms. Some ingredients may be missing altogether, and the recipe will probably tell you that you can’t cook the lasagna for months or years (goodness, your family will be hungry!). Whatever the situation, the State’s plan may include some components you don’t like or even one that could be disastrous to your family. 

In reality, your State’s plan says how your assets will be distributed, who will get them, and in what amounts. It requires a court process, which can be lengthy and expensive, and sometimes assets are frozen until the court process is over. It’s also set up for conflict, as your family members – even if you’re estranged – must get notice of the court proceeding, what assets you have, and are invited to make a claim for your assets. You may not like any of this.

If not, here’s the good news. The law also says you can create your plan and decide on who you want to inherit your assets and how. If you create your plan, you get to choose to give money to charitable causes that matter to you, which the State’s plan does not allow for. And if you create your plan, you can also decide whether you want your loved ones to go through the court process. Yes, the court process can be optional. 

What Recipe Do You Want to Use?

By creating your estate plan, you get to choose your lasagna recipe. You can decide whether you want meat, veggies, or mild or spicy sausage. You get to exclude ingredients your family members may be allergic to. You even decide if you want to share your lasagna with someone else. And you get to decide when to cook the lasagna, whether you want it to be eaten tonight or assembled, frozen, and saved for another day. 

It’s entirely possible that you don’t think the State’s recipe is gross, and you wouldn’t change a thing. But you won’t know that until you know the details of the State’s plan and how those details pertain to you, your assets, and your family. Or, it could be that you think the State’s recipe is entirely gross, and you want to pick one you and your family like. Either way, know what you want to create, be clear on how to do it, and do it correctly. Luckily, we can help. 

How We Help You Get it Right

We’ve seen too many families suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven’t experienced it yourself, you probably will. However, with proper education, beginning with correcting the misconception that estate planning and the document are the same, we believe we can break the cycle of strife. 

We start with education so you are clear on what the State’s plan is for you and what you can do to create your own plan that aligns with your values, goals, and family, and most importantly, that it works when you need it to. 

We call it Life & Legacy Planning. Once you’ve created your Life & Legacy Plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. Book a call with us today to learn more. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

3 Questions to Ask Yourself Before Creating Your Estate Plan With AI

Have you jumped on the AI bandwagon yet? If so, you’ve probably used it to make your life easier. AI can be incredibly helpful, especially when the stakes are low. Need a personalized meal plan or an exercise routine? AI can handle that. But when it comes to estate planning, some people use AI for what they believe to be a simple and cost-effective solution. 

The allure of Do-It-Yourself estate planning through AI is strong, especially when you think your situation is straightforward. You may also think you have little money, so your circumstances aren’t complicated. Both of these beliefs are extremely common – and rarely true.

Here’s the truth: estate planning is not just about creating a set of documents, and it’s almost always more complicated than you think. To do it effectively, it must be personalized to fit you, your family dynamics, and the specific types of assets you have. But unless you’re an expert, you don’t know how your circumstances apply to the law and your values – or how your estate plan should be structured to fit the law and your values. AI cannot do any of this. And if you get it wrong, there are legal (as well as financial) consequences. You need a human to guide you, a human who understands you, your family, your assets, your wishes and desires, and how all these things work together with current law. 

So before you’re tempted to use AI for your estate plan, ask yourself the following three questions. Then, consider your answers before turning to AI or any other free or cheap legal service. If you’ve already done your estate plan, these questions are essential for you, too. 

Question No. 1: What Matters?

First and foremost, who or what matters most to you? When you’re creating a legal plan for what happens if you become incapacitated and when you die, the place to start is by getting clear on what matters. Is it the money you’ve worked hard to earn, or is it the people around you and the relationships you’ve nurtured? Most likely, it’s the people. 

Think about this. How are you affected when a loved one passes away? You’re probably filled with grief, and their absence leaves a void in your life. While their money can ease financial strain, the memories and the love you shared truly matter (this is their “legacy”). Your loved ones will feel the same way after you’re gone. What will your legacy be? 

Imagine that your family is left to deal with a significant legal and financial mess after you’re gone, all because you didn’t create an estate plan or created one that failed. Are you ok with that being your legacy? Does it matter that people must spend time away from work and their lives to manage your affairs? And what if they ended up fighting or estranged? Does that matter to you? 

What about your assets? Does it matter to you if your estate has to pay unnecessary taxes or if your assets get lost and turned over to your State’s Department of Unclaimed Property? Or do you care about supporting a cause you believe in or supporting a family member who needs help? 

When you create a Life & Legacy Plan with our office, you gain the power to influence these outcomes in a way that AI cannot do. But first, get clear on what truly matters to you.

Question No. 2: What’s It Worth?

Once you’re clear on what matters, the next question is: what are those things worth? How important is it to preserve your family’s relationships, for example? How important is it that your assets don’t get used to pay taxes when there’s an option to give them to your loved ones? It’s critical to know not only what’s important but how important it is so you know how much time, energy, attention, and money to dedicate to it. 

One of the main reasons people may use AI to draft their estate plans is that they think estate planning is simple. However, estate planning is much more complex than most people realize. Even licensed attorneys who practice estate planning often find themselves overwhelmed by the intricacies of the law, which changes regularly and varies from state to state. AI is a one-size-fits-all approach that doesn’t take into account the complexities. So, if you rely on AI, you’re leaving a lot to chance. Is it worth it to you to take a chance on what matters? There is no wrong answer here; it may be yes, or it may be no. The key is that you’re being true to yourself.

Question No. 3: Is AI Actually Cheaper and Easier?

And now we’re at the third and final question: is AI or Do-It-Yourself legal cheaper and more accessible than working with an expert? If the program makes a mistake in your estate plan and your family ends up in court, embroiled in conflict, with relationships irreparably broken, was it worth the supposed savings? What if your assets were lost to the government, eaten up by unnecessary taxes, or depleted by lawyers’ fees and court costs due to litigation? 

When you weigh the potential costs—financial, emotional, and relational—against the upfront savings you might achieve by using AI, the true worth of those things that matter to you becomes more apparent. You see that estate planning is about much more than just money; it’s about protecting the people you love and ensuring your legacy is honored as you intend. 

You and Your Family Deserve More Than a Quick and Cheap Fix

The way to ensure that your plan works when you and your loved ones need it to and saves you and your family money is by working with me to create a Life & Legacy Plan. With my Life & Legacy PlanningⓇ process, I’ll guide you to get clear on what matters; together, we’ll create a complete plan that honors your wishes and creates a loving legacy at a price that fits your budget. When it comes to something as important as your estate plan, it’s worth taking the time to do it right. Your legacy deserves more than a quick fix—it deserves the thoughtful attention of someone who understands your unique situation and can help you navigate the complexities of the law to achieve your goals.

We understand that estate planning isn’t just about the documents you sign or the money you leave behind. It’s about ensuring that the people and things that matter most to you are protected and honored in the way you intend. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your legacy preserved. 

Schedule a complimentary 15-minute consultation to learn more. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

Reflections on Your Legacy

As the seasons change and we transition from the warmth of summer, it’s a perfect time to reflect on the contributions and achievements that have shaped your life. The work you’ve put into building your home, family, and career is a testament to your dedication. As you enjoy some well-deserved relaxation, take a moment to consider everything you’ve worked hard for throughout your life. Let’s reflect on these together.

Reflection No. 1: Remember When?

Do you recall your first job? It could be babysitting for a neighbor or mowing lawns as a kid. You may have worked part-time during high school, balancing classes, extracurricular activities, and work. How did it feel to earn your first paycheck and experience a sense of independence? It was likely empowering, marking the beginning of your journey toward financial and personal responsibility.

Even if you didn’t work as a teenager, you probably worked hard in other areas—whether striving for good grades, excelling in sports, or mastering a musical instrument. Each of these experiences contributed to your growth, instilling a sense of pride and accomplishment as you saw the results of your efforts.

Take a moment to reminisce. Think about those early achievements and the sense of independence they brought. What memories stand out that you’d like to share with the younger members of your family?

Reflection No. 2: In the Thick of It

As you grew older, your work evolved. Whether you pursued higher education or jumped straight into the workforce, you eventually landed that first “real” job, bringing with it both financial rewards and adult responsibilities. Perhaps you bought your first home, started a family, or took on significant financial commitments like a mortgage or student loans.

This stage of life is often intense, filled with the demands of balancing work, family, and other responsibilities. It may feel like all you do is work, but there’s a deep satisfaction in seeing the fruits of your labor—especially when it comes to your children. Watching them grow, learn, and become independent adults is a reward for all the hard work you’ve invested in them.

If you’ve started a business, you’ve likely poured much of your time, energy, and resources into turning your vision into reality. You’ve created jobs, solved problems, and contributed to your community.

Reflect on your achievements during this period. Have you enriched the lives of others and supported loved ones in reaching their potential? Have you created something meaningful in the world? Consider both the tangible results, like a successful career or business, and the intangible ones, like the love and guidance you’ve given. How do you feel about your life at this stage? What wisdom would you like to pass on to those you care about?

Reflection No. 3: What Happens Next?

As you enter the later stages of life, your work shifts once again. You may be considering retirement, winding down a business, or simply enjoying the accomplishments of your earlier years. If you have children, you might now be watching them build their own careers and families.

This is a time to savor the fruits of your labor, but it’s also a moment to think about the future. What steps can you take to ensure that everything you’ve worked for is protected and passed on according to your wishes? How can you prevent your assets from being lost, mismanaged, or causing conflict among your loved ones?

Now is the time to make important decisions and document them in a Life & Legacy Plan. Such a plan is a comprehensive estate strategy that ensures your assets are distributed as you intend, keeps your family out of court, and preserves the relationships you’ve cultivated over the years. It also helps you control how you’ll be remembered—your legacy.

Before dismissing the idea of a legacy as something only for the wealthy or famous, consider this: Legacy is about how you’ll be remembered. Through a Life & Legacy Plan, you can ensure your life’s work is honored and that your story is preserved for future generations. Many people find this aspect of planning to be the most meaningful part of the process.

Warning! Life Doesn’t Always Go as Planned, So Don’t Wait

Ideally, you’ll have the time to make it through each of these stages of life, but there are no guarantees. Life is unpredictable, and while it’s unpleasant to think about, planning for the unexpected is essential. By facing your mortality and planning accordingly, you can ensure that your legacy is one of love and careful stewardship.

Estate planning isn’t just for the wealthy or elderly—it’s for everyone, regardless of your stage in life. If you haven’t created a plan, the state will have one for you, but it likely won’t align with your wishes. By taking control of your plan, you can dictate how your life’s work will be remembered and passed on.

How We Help Secure Your Life’s Work

Your life’s work is a testament to your dedication and perseverance. From your first job to your current achievements, you’ve built a legacy worth protecting. As you reflect on your journey, consider how you want that legacy to endure. Take control of your future and protect what matters most by creating a comprehensive Life & Legacy Plan with us. Book a consultation call today to learn how we can tailor a plan that honors your life’s work and ensures your legacy lives on. Let’s work together to secure your family’s future and celebrate the fruits of your labor for generations to come.

Schedule a complimentary 15-minute consultation to learn more. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

How Relying On Beneficiary Designations Put Your Family at Risk (And How To Fix It!)

You’ve worked hard to build your assets and secure your family’s future. Like many responsible adults, you’ve named beneficiaries on your retirement accounts, life insurance policies, and maybe even your banking and investment accounts. It feels good to know you’ve put something in place for your loved ones. 

While beneficiary designations serve a purpose, they’re not a comprehensive estate planning solution. Relying solely on them can lead to unintended consequences and potential financial disasters for your loved ones. Let’s delve into why beneficiary designations fall short and the risks you may unknowingly take with your family’s financial future. 

The Dangers of Naming Minor Children As Your Beneficiaries 

You love your children and want to ensure they’re cared for if something happens to you. Naming them as beneficiaries on your accounts is a straightforward way to achieve this goal. However, this approach can backfire spectacularly when your children are minors.

Designating a minor as a beneficiary creates a legal and financial predicament. Financial institutions cannot hand over large sums of money to children, so the court will likely appoint a guardian to manage the funds. This process can be time-consuming, expensive, and may not align with your wishes.

Even more concerning is what happens when your child reaches the age of majority, typically 18 or 21, depending on your state. At this point, they gain complete control of the inherited assets. Ask yourself: Is your 18-year-old ready to manage a six or seven-figure life insurance policy? What about your retirement account? For most young adults, the answer is a resounding no.

Imagine your child receiving a windfall at an age when they’re still learning to navigate adult responsibilities. They might make impulsive financial decisions, fall prey to manipulative friends or partners, or simply lack the maturity to handle sudden wealth. By relying solely on beneficiary designations, you’re potentially setting your child up for financial mismanagement or even exploitation. It’s a sobering thought that underscores the need for comprehensive planning.

When a Beneficiary Dies Before You

Life is unpredictable, and tragedy can strike at any time. While it’s uncomfortable to contemplate, your named beneficiaries may predecease you or die with you in an accident. This scenario can throw your estate into chaos if you’ve relied entirely on beneficiary forms.

When a named beneficiary dies before you, the fate of those assets becomes uncertain. Some accounts may have provisions for contingent beneficiaries, but many people neglect to name backups. In other cases, the asset may revert to your estate, potentially subjecting it to probate – a time-consuming and potentially expensive legal process you likely wanted to avoid by using beneficiary designations in the first place.

The situation becomes even more complex if you and your primary beneficiary die simultaneously or in quick succession. In such cases, determining the order of death can have significant implications for how your assets are distributed. Without a comprehensive estate plan, your assets may go to unintended recipients or get tied up in lengthy legal battles.

Establishing a will or trust can create a chain of inheritance that accounts for multiple contingencies, ensuring your assets are distributed according to your wishes regardless of the circumstances. This level of control and reassurance is a key benefit of comprehensive planning.

The Risks of “Set-It-and-Forget-It” Planning

Life is dynamic and filled with changes, both big and small. Your financial situation evolves, relationships shift, and laws change. Yet, all too often, people treat beneficiary designations as a “set it and forget it” solution. This static approach to estate planning can lead to severe problems.

  • Consider how much can change over a few years or decades.
  • You may divorce or remarry, dramatically altering your family structure.
  • Children grow up, and your relationship with them may change.
  • Your financial situation could improve significantly, making previous designations inadequate.
  • Tax laws and regulations around inherited assets may be revised.
  • You might develop new philanthropic interests or want to include charitable giving in your legacy.

If you don’t regularly review and update your beneficiary designations, they may no longer reflect your current wishes or circumstances. It’s not uncommon for people to unknowingly leave substantial assets to ex-spouses or estranged relatives simply because they failed to update their beneficiary forms. 

In addition, beneficiary designations don’t allow for the nuanced distribution of assets that many people desire as their wealth grows. You should establish conditions for inheritance, protect assets from creditors, or provide for family members with special needs. These complex wishes simply can’t be accommodated through standard beneficiary forms.

The Peace of Mind That Comes From Careful Planning

To truly protect your legacy and ensure your wishes are carried out, you need a Life & Legacy Plan rooted in education about what would happen to you, your family, and your assets if you become incapacitated and when you die. From there, we craft a plan that reflects your wishes, works when needed, and fits within your budget. This might include a will, one or more trusts, powers of attorney, healthcare directives, and carefully considered beneficiary designations. When we complete your original Life & Legacy Plan, you’ll have peace of mind knowing that it will:

  • Protect minor beneficiaries and ensure assets are managed responsibly;
  • Provide for multiple contingencies, including the death of beneficiaries;
  • Minimize taxes and avoid probate when possible;
  • Reflect your values and complex wishes for asset distribution;
  • Adapt to changes in your life, finances, and the legal landscape.

Don’t leave your legacy to chance or expose your loved ones to unnecessary financial risks. Your family’s future security is worth the time and monetary investment in proper planning. Remember, a truly effective estate plan is a living document that grows and changes with you, providing peace of mind today and security for generations to come. 

Know, too, that if you’ve already created your Life & Legacy Plan with me, keep an eye out for reminders to review and update your plan. If you know that you need to update your plan before we remind you, don’t hesitate to call us immediately.

Schedule a complimentary 15-minute consultation to learn more about how we support you. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

Would $23,000 Make a Difference to You?

Imagine discovering thousands of dollars that belong to you, only to be told you can’t have it. This frustrating scenario became a reality for a woman named Dale Benerofe, a Georgia resident when she found $23,000 in unclaimed property from her deceased parents. Her tragic story sheds light on a little-known issue that affects millions of Americans: unclaimed property. 

In this article, you’ll discover what unclaimed property is, how to find it, and why proper estate planning could have ensured Ms. Benerofe received her inheritance. But before we dive into her story, let’s clarify what unclaimed property is and how it could impact you and your family. 

What Is Unclaimed Property?

Unclaimed property refers to financial assets that have been abandoned or forgotten for a specific period, typically three to five years. The financial institutions can’t hold on to your money indefinitely. If no one comes forward to claim the assets, the law requires these assets to be turned over to the state for safekeeping. 

Typical forms of unclaimed property include:

  • Forgotten checking or savings accounts
  • Uncashed dividends or payroll checks
  • Abandoned stocks, bonds, or brokerage accounts
  • Unclaimed life insurance proceeds
  • Refunds and trust distributions
  • Forgotten certificates of deposit and annuities

It’s a startling fact that these assets often go unclaimed because someone dies and their loved ones have no idea that the assets exist. This is a more common occurrence than you might think, with approximately $60 billion across the US remaining unclaimed. 

Consider your reality for a minute. If something happened to you tomorrow, would your family know exactly what you have and where to find it? Are you confident they wouldn’t miss something? If you’re like most people, the answer is no, you aren’t sure. What you are likely specific about is that your family would overlook some of your assets if you were to become incapacitated or die tomorrow. And, if they did, those assets could either disappear entirely or end up in your state’s department of “unclaimed property.”According to the National Association of Unclaimed Property Administrators, approximately one in seven Americans has some form of forgotten property owed to them. As of this writing, the total amount of unclaimed property nationwide is between $50 billion and $70 billion. You read that right. Billions of dollars. With a sum that high, it’s easy to see how it’s possible you, too, may have unclaimed property belonging to you.

What the Process Looks Like

Finding out if you have unclaimed property can be an arduous process. Even though you can search online, you’ll go through many steps before (or if) you can receive your money. Here’s what the process looks like:

Step 1—Check multiple states. Search for your residence and any other states where you’ve lived, worked, or conducted business. 

Step 2 – Search variations of your name. Try different spellings and include your middle name or initial to ensure a thorough search. If your name has changed over the years, you must also check your former names. Again, search all variations of your name in states where you’ve lived, worked, or conducted business.

Step 3 – File a claim. If you find property owed to you, you must file a claim form (usually online) with the state holding your assets. You’ll need to file a form in every state where your assets are held; there is no one-form-to-rule-them-all.

Step 4 – Gather documentation to prove your identity and the identity of your loved one(s). Be prepared to provide documentation to prove your identity and your right to the property. This may include proof of address (at any address you’ve lived), proof of name change, or proof of marriage or divorce. You’ll need to provide similar documentation for your loved ones if you have a claim to their property.

Finally, be patient. Depending on your claim’s state and complexity, the claim process can take weeks, months, or even years.

A Real-Life Experience and Cautionary Tale

Even if you take the above steps to find the property and make a claim for it, you may need help to receive the money rightfully owed to you. This is what Dale Benefore’s story can teach us.

Ms. Benefore discovered $23,000 that had belonged to her parents and should have been passed on to her after their deaths. She was surprised and excited because that sum would have made a significant difference to her and her family. So, in May of 2023, she filed a claim for the money with the State of Georgia’s Department of Revenue. As requested by the State, she provided her parents’ death certificates and other documentation proving their deaths. However, when the department requested her father’s driver’s license, she couldn’t offer it. It had been long gone. 

As of this writing – more than a year since Ms. Benefore filed her claim – she’s still fighting for her money. She’s frustrated, saying the process has been time-consuming and disheartening and that this is not what her parents would have wanted for her. In a news interview, she claimed her “mom would be livid” if she knew what Benefore had been through.

The Easy Way to Ensure Your Assets Aren’t Lost 

There’s an easy solution to this problem and a way to ensure no assets get lost and turned over to the government. It’s called Life & Legacy PlanningⓇ, and it’s the type of estate planning I do. A well-crafted Life & Legacy Plan includes a comprehensive inventory of assets that stays updated so your loved ones know exactly what you have when something happens to you. If her parents had had a Life & Legacy Plan, Ms. Benefore would have received the $23,000 years ago, without the time and stress of fighting with the State of Georgia. This is a powerful tool that can empower you to take control of your financial future. 

My Life & Legacy Planning process starts with education about what would happen to the assets you have, and how you want them distributed after you die. From there, we’ll go through the many options available to you so you can pick the right plan that works for you and your family. 

We work with you throughout the planning process to create a thorough inventory of your assets kept private (maintained and updated throughout your life) until your family needs it. With a Life & Legacy Plan, you have peace of mind knowing that your loved ones can’t access your money while you’re alive (unless you want them to), but they’ll also be able to get to it quickly after you’re gone. No worrying about losing your hard-earned money to the government. 

If you’ve already created your Life & Legacy Plan with us, you know how important it is to keep your asset inventory updated, so keep an eye out for our reminders to review and update your plan. However, if you know now that you need to update your plan due to a life change or a change to your assets, don’t hesitate to call us immediately.

Ready to Secure Your Assets? We Can Help

There is way too much money in the State Treasury Departments not to take notice. But by reading this article and educating yourself, you’re already on the path to protecting your assets for your loved ones. We can guide you the rest of the way. 

We help you create a Life & Legacy Plan so that your plan works when your family needs it. Once you’ve made your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. It’s the last and greatest gift you can give to those you love most. 

Schedule a complimentary 15-minute consultation to learn more. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

Would You Make This Million Dollar Mistake?

Imagine this: You’re in your twenties, just starting your career. You fill out a form at work, naming your live-in significant other as the beneficiary of your retirement account. You start contributing to your retirement account, and it begins to grow. Fast-forward 28 years—you’ve long since ended that relationship, lived a full life, and then died. But you never changed that beneficiary designation, and now that ex-partner is entitled to your million-dollar retirement nest egg, leaving your family with nothing. This situation, if not addressed, could lead to significant financial loss for your loved ones. 

Does this sound far-fetched? It’s not. This is precisely what happened in a high-profile lawsuit involving Margaret Losinger, her former boyfriend, Jeffrey Rolison, his estate, and Proctor and Gamble, the Company he worked for during those 28 years. The lawsuit, which gained national attention, serves as a cautionary tale about the importance of updating beneficiary designations.

Here’s a closer look at this shocking real-life story, the lessons we can learn, and how having a trusted advisor at every stage of life can protect you from making a million-dollar mistake like this or any other errors you might be overlooking. 

What Happened?

In the 1980s, Jeffrey Rolison dated Margaret Sjostedt, and the two lived together. Rolison worked at a Procter & Gamble (P&G) plant, where he signed up for a profit-sharing and savings plan. In 1987, he listed Sjostedt as the sole beneficiary of his retirement account. The relationship ended two years later, and both moved on. Sjostedt eventually married, taking on the last name Losinger. 

Rolison, however, never updated his beneficiary designation on his retirement plan. In 2015, Rolison passed away at age 59, single and childless, with no will and no guidance on who should inherit his assets. His retirement account, which had grown to $1.15 million, was still designated to Losinger, nee Sjostedt.

Rolison’s brothers, Brian and Richard, were shocked when they learned that Losinger was the beneficiary of Rolison’s retirement account. They believed their brother wouldn’t have intended for his long-ago ex-girlfriend to receive his retirement savings. The brothers filed a lawsuit against P&G and Losinger in 2017, trying to get the money directed to Rolison’s estate. 

On April 29, 2024, an appeals court issued an order, ruling that Losinger was entitled to the money. After fighting for four years, Rolison’s family lost their claim, the million dollars in Rolison’s retirement account, and all the legal fees and court costs invested in the fight. Because we have no doubt you wouldn’t want this to happen to your family, read on. 

Why Even “Simple Estates” Require Trusted Guidance

Before we go on, I’ll clarify estate planning, how beneficiary accounts factor in, and why you likely need the guidance of a trusted advisor, even if you think you don’t have an estate, your estate is “simple,” or you don’t really need an estate plan. Even if you don’t consider yourself wealthy or think your estate is straightforward, you still need an estate plan to ensure your assets are distributed according to your wishes. 

What estate planning is. Many people consider estate planning something only needed by the wealthy or the elderly. As you can see from this case, that’s just not true. Rolison wasn’t rich when he named Losinger as the beneficiary of his retirement account. And he probably wasn’t wealthy when they broke up. Nevertheless, not having an estate plan or the trusted guidance he would have needed to know what he needed, he made his ex-girlfriend a wealthy woman and cost his siblings a lot of time and money in the process.

At the most basic level, estate planning is about ensuring all of your assets pass to the people you want in the way you want, with the proper guidance and support to ensure that happens with the least effort, cost, and mess possible. It’s also about ensuring that if you become incapacitated, your wishes are known, honored, and able to be followed with the least cost and the most privacy possible. 

Most importantly, estate planning is about your choices and your freedom. So, how important is it to you that you have a say in what happens to you, your hard-earned assets, and your loved ones when the time comes? If it’s important, you need an estate plan. It’s truly as simple as that. Otherwise, the government gets to decide on your behalf. When you create an estate plan, your wishes override the government’s plan for you and your loved ones. 

How Beneficiary-Designated Accounts Factor Into Your Estate Plan

Beneficiary-designated accounts—like retirement accounts or life insurance—are part of your estate plan. Beneficiary designations override the government’s plan for you and, if you created one, whatever you might have written in your will or trust. 

From the case I shared here, we learn that Rolison did not have a will, but it would not have made a difference even if he had. Beneficiary designations come before any will or trust, even if you made the designations years ago. 

Beneficiary forms are powerful documents. They determine who gets your retirement accounts, life insurance policies, and bank accounts, often taking precedence over your will. If you filled out a beneficiary form years ago and still need to update it, the person named on it will likely receive the assets, regardless of your current wishes. So, the biggest takeaway from the Rolison/Losinger story is that beneficiary accounts are an integral part of your estate plan and should be reviewed regularly. This is why we include a review of your accounts, beneficiary designations, and an inventory of your assets – plus, we have to update programs for ongoing review – in all of our Life & Legacy Plans.

Why You Need Regular Reviews of Your Accounts and Beneficiary Designations

Rolison’s case highlights that it’s easy to forget about your beneficiary designations, especially if they were filled out years ago. However, the case also tells us that neglecting to update your accounts can lead to unintended consequences and legal battles for your loved ones. Regular reviews of your accounts and beneficiary designations can prevent such situations, making you feel proactive and in control of your financial future. 

In Rolison’s case, his brothers argued that P&G failed to inform him about his beneficiary designation adequately. They claimed the company provided insufficient warnings when it changed service providers and in its monthly statements. However, most companies do not remind you to review and update your beneficiary accounts. When was the last time your bank reminded you to review the beneficiary designations on your checking account (if ever)? What about your life insurance company? And if not, have you taken it upon yourself to check your beneficiary designations regularly? Your life is busy enough. Is this a priority? 

If not, it should be. In its decision, the court stated that it ruled in favor of P&G and Losinger because the individual is responsible for keeping beneficiary information current. 

How Accountability Makes All the Difference

Your life is busy. Sometimes, making it through the day with all your responsibilities can be challenging. Probably the last thing on your mind is planning for your death and incapacity. The second-to-last thing is reviewing and updating your beneficiary accounts. You’re probably thinking you can do it later.

But the truth is this: “later” could be tomorrow. We all know we will die; we just don’t know when. Death doesn’t care about your age or how busy you are. I’m not saying this to scare you. It’s a fact, and I want you to be prepared so that what happened to the Rolison family won’t happen to yours. Death doesn’t have to be scary. When you plan for it, you’ll find that you can live your life with more purpose and peace of mind, knowing you’ve done the right thing for your loved ones. 

If this sounds good, know that having a trusted advisor who is there for you throughout your lifetime can make all the difference. That’s why my Life & Legacy PlanningⓇ process includes regular check-ins and reviews of your plan, including your beneficiary accounts. The best part is you never have to think about it alone! Unlike most lawyers who do estate planning, I will remind you regularly to update your plan – and keep you accountable. I’ll also be there for you as life changes so your plan reflects your current wishes. Together, we’ll ensure your family inherits your accounts, not an ex-girlfriend you dated 40 years ago. 

We Do the Heavy Lifting, So You Don’t Have To 

When it comes to planning for your death and incapacity, we do the heavy lifting for you, freeing you to concentrate on your responsibilities to your family, your work, and yourself. We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and that your plan works when needed. Once you’ve made your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, your property protected, and your plan updated throughout your lifetime. 

If you’ve already created your Life & Legacy Plan with us, keep an eye out for our reminders to review and update it. If you know that you need to update your plan due to a life change, don’t hesitate to call us immediately.

Schedule a complimentary 15-minute consultation to learn more.

Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Categories
Estate Planning

Celebrity Estate Plans Series Part 3 of 4: Jay Leno’s Case is No Laughing Matter

For the last two weeks, we’ve discussed celebrities and how they planned (or didn’t!) for their deaths. In this third installment of our four-part celebrity series, we discuss a topic that no one wants to consider as it may seem to be a fate worse than death: incapacity. Unlike death, not everyone will become incapacitated. Yet, it’s an essential part of your future planning because if you do become incapacitated, you want to have made your choices well before that occurs. To illustrate the importance of planning for incapacity, we’ll examine the real-life court case involving Jay Leno and his wife, Mavis. I assure you, it is no laughing matter. A comprehensive Life & Legacy Plan can provide reassurance and peace of mind, and we’ll explore its benefits in this context. 

The Leno case highlights what happens when you or a loved one becomes incapacitated and what can happen if you have not planned in advance. From the Leno case, we can learn several lessons, including 1) What incapacity is and what it is not, 2) What a spouse can and can’t do with the other spouse’s financial affairs, and 3) How you can end up in court with all your affairs becoming public knowledge. We’ll address all three topics here, emphasizing why these matter, even for tf us who have never hosted “The Tonight Show.”

Let’s start with the basics: what do we mean by discussing “incapacity”?

What Incapacity Is and What It’s Not

If you become incapacitated, you’ve lost the ability to make sound financial, medical, or legal decisions for yourself. You may even make harmful decisions or be unable to communicate at all. Incapacity can result from several circumstances, including a tragic accident, a serious, end-of-life illness, or aging-related challenges, such as dementia or Alzheimers. Like death, incapacity can strike at any time and any age. Once it does, it’s too late to get your affairs in order, and your loved ones will be stuck in a mess. This is why planning for incapacity is not just a good idea, it’s a necessity. 

This may seem obvious, but stay with me: It’s important to note that incapacity occurs while you’re alive. I say this because estate planning, to some degree, has much to do with timing. You can have a plan and create documents that deal with your incapacity. However, that plan and documents become null and void once you die, and another document is needed.

This matters to you: If you’re like many people, you’ve heard of a document called a Power of Attorney. You may even have authority for an aging relative under a Power of Attorney. In my practice, however, I’ve found that most people don’t realize that the authority granted under that Power of Attorney ends as soon as the person granting the power dies. So, while you may be able to access your loved one’s checking account to pay bills while they’re alive, that ends immediately at death if your access was under a Power of Attorney. You must then get separate authority – from a court if assets are not held in a trust – to handle the remaining assets after death. In simpler terms, the legal documents you have in place for incapacity may not be enough, and you could end up in court if you’re not prepared.

This means your incapacity planning and post-death planning must work together so the transition is handled smoothly and with as much ease for your loved ones as possible. And that brings us to the Leno case.

So, What Happened In the Leno Family? (And What It Means for You)

Mavis Leno, Jay’s wife of more than 40 years, is battling dementia and has reached the point where she can no longer handle her financial affairs. So, Jay had to go to court (essentially filing a lawsuit against his wife) to be able to manage her finances. After a few months, the court ruled and gave Jay the requested authority.

That’s essentially the entire story. But we can’t stop there! Even from just three simple sentences above, several key takeaways exist. 

Here are the highlights:

Even though they were married, Jay did not have automatic authority to manage Mavis’s finances. And neither will you if you’re married and your spouse has separate assets. Any assets or accounts you own are your property and your property alone. Marital status is irrelevant. And, if you don’t have advance planning in place, your spouse could need to go to court and sue your “estate” to get appointed and be able to take control of your assets. 

Leno had to file a lawsuit (against his wife) to gain control of his wife’s finances. That’s the process, no matter what State you’re in. If you don’t have advance planning and you become incapacitated, someone will need to go to court to get authority, even if you have powers of attorney in place. And it will cost time (a few months in most cases) and money. While waiting for the court to rule, you won’t be able to pay your spouse’s bills using their money (or they may spend away, unaware of what they’re doing). That leaves you with two options: 

You can pay the bills with your money and then get reimbursed later. This may be fine, especially if you have the financial means. But if you don’t have immediate access to cash, say your spouse paid all the bills from their account, this could mean trouble and potential asset loss. Or, bills simply go unpaid. Maybe you can explain the situation to the financial institution, and they will be patient while the court process plays out, but this doesn’t always happen. 

The court process is set up for conflict, and the more conflict there is, the longer the process will take. In Leno’s case, he and Mavis have been married for over 40 years, and it’s their first and only marriage (relationship goals, right?). Given this fact, it’s reasonable to assume that no one challenged Jay’s request. But what if one of them had been married before and had children from the prior marriage? And what if one of those children wanted to ensure they got their inheritance and didn’t want the step-parent to have any control over the money? Sadly, this happens all the time. When it does, the case can go on and on, meaning court costs go up, and the assets in question could be at risk due to the time delay. 

Leno’s personal and family information became public knowledge, but not because he’s famous. In most States, you must disclose your address, your family members and their addresses, and information about the financial assets. The Leno family’s story is available for all of us to read, not because he’s famous, but because they had to go to court. 

This can be problematic because scammers are paying attention. They tend to pay particular attention if you (or someone you love) are vulnerable, especially if you’re older. I could write books about how often older people fall prey to these scams. And they’re all disturbing.

So, what have you gleaned from these insights so far? If anything concerns you, know there is a much better way this could have been, and this better way lies within your reach. 

A Life & Legacy Plan Keeps Your Affairs Private and Your Family Out of Court and Conflict

A Life & Legacy Plan solves the problems that left Jay Leno having to sue his wife’s estate to get access to her accounts. With a Life & Legacy Plan in place, you would have a seamless transition from capacity to incapacity and then to death. There’s no time delay; assets can be immediately available if needed. A Life & Legacy Plan can also keep you and your loved ones out of court and conflict, saving time and money and keeping all your affairs private.

When you work with me to create your Life & Legacy Plan, we’ll ensure your plan stays updated throughout your lifetime. This is critically important because if your estate plan doesn’t reflect your current life circumstances, the time you need won’t work. That means you end up in court, just like the Leno family; for context, most attorneys ensure your plan stays current. But I’ve seen too many plans fail because of this; we’ll review your plan at least every three years and make updates as necessary. 

We’re Here for You Throughout All Of Life’s Changes

Incapacity planning is more crucial than ever, especially with cases of dementia on the rise. According to Alzheimer’s Disease International, over 55 million people worldwide currently have dementia, and that number is expected to increase to 78 million by 2030. Whether you’re diagnosed with dementia, another severe illness, or a terrible accident that results in your incapacity, a Life & Legacy Plan will help ensure you’re prepared, no matter what happens.

We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your personal information kept private.

Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

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