Category: Estate Planning

10 Guardian Mistakes That Could Put Your Kids at Risk (And How to Do It Right)

Post author By Sara Thomas
Post date May 8, 2025
No Comments on 10 Guardian Mistakes That Could Put Your Kids at Risk (And How to Do It Right)

Imagine this: something unexpected happens, and you’re suddenly unable to care for your children. It’s a parent’s worst nightmare. In this situation, you would want to know that your children will be loved, cared for, and raised according to the values you hold dear. But have you taken the proper legal steps to ensure that happens?

Many parents mistakenly believe that simply naming guardians in their will is enough to protect their children. Unfortunately, this isn’t always the case. There are common mistakes that can lead to legal battles, family conflicts, and even put your kids’ well-being at risk. What if something happened to you tomorrow? Would your children end up in the care of strangers, even temporarily, because you didn’t have a plan in place for their immediate care?

Don’t let that happen. By working with our firm, you can avoid these pitfalls and create a rock-solid guardianship plan that provides true peace of mind, knowing that, no matter what, your children will always be raised by the people you love most.

The 10 Common Mistakes Parents Make When Choosing Guardians

1) Thinking a Will is Enough

A will is essential, but it only takes effect after you’re gone. It doesn’t cover situations like sudden illness or incapacity. You need separate guardianship documents specifically designed to address these “what if” scenarios *while you’re still living*.

2) Planning Only for the Long-Term

If something were to happen to you today, who would take care of your kids *right now*? Don’t just plan for the long haul – you also need to designate short-term guardians to prevent your children from being placed with strangers, even temporarily, while the authorities sort things out.

3) Not Naming a Guardian at All

This may seem unthinkable, but it does happen. If you don’t formally name a guardian, you’re leaving one of the most important decisions of your life up to the courts. This could mean your children end up with someone you wouldn’t have chosen.

4) Overlooking Backup Guardians

Life is unpredictable. Your first-choice guardians may not always be available or able to step in when needed. Always name multiple backup guardians to ensure a safety net in case your primary choice is unable to serve.

5) Choosing Guardians Based on Financial Ability Alone

Money matters, but it shouldn’t be the *only* factor when choosing who will raise your children. Your children’s well-being depends on being raised in a loving and supportive environment that aligns with your values. Consider factors like location, lifestyle, parenting philosophies, and the overall compatibility of your chosen guardians with your family.

And remember, you can always choose a separate financial guardian, or appoint a Trustee of a Trust, to specifically manage any money you leave behind for your children – this can be a separate role from their daily care.

6) Assuming Godparents are Legal Guardians

Many people use the terms “godparent” and “legal guardian” interchangeably, but they aren’t the same. Verbal agreements or informal designations hold no legal weight. To make your wishes legally binding, you need formal guardianship documents prepared by an experienced professional.

7) Not Thinking Beyond Guardianship

Guardianship isn’t just about who will raise your kids – it’s also about who will make important financial and healthcare decisions on their behalf. You will need powers of attorney and other legal tools to ensure these matters are handled according to your wishes.

8) Failing to Communicate Your Wishes

Don’t leave anything to chance. Clearly document your values, parenting preferences, and any specific instructions you would like your guardians to follow. This guidance will provide invaluable support as they navigate the challenges of raising your children.

9) Not Reviewing and Updating Your Plan

Life is constantly evolving. Your family dynamics change, your children grow, and laws are updated. It is vital to review and update your guardianship plan regularly to ensure it still accurately reflects your current circumstances and wishes.

10) Naming a Couple Without a Contingency Plan

Relationships evolve. Sadly, even the most solid couples can face unexpected challenges, such as divorce or separation. It’s vital to think about what would happen to your children if your chosen guardians were to split up. Would one person become the sole guardian? Would they share custody? Outlining these details now can prevent future conflict and heartache.

There’s a Better Way: Create a Kids Protection Plan

A Kids Protection Plan® provides comprehensive protection for your children, so you never make one of the ten mistakes and put your children at risk of being raised by someone you’d never want to raise them (or worse, ending up in the foster care system). Unlike a traditional estate plan that simply names guardians, a Kids Protection Plan creates a complete safety net that addresses both immediate and long-term care needs.

Every Kids Protection Plan I create with clients includes legal documents that ensure your children won’t be placed in the care of strangers or the foster care system, even temporarily. It provides detailed instructions for emergency responders and caregivers, identifies temporary guardians who can step in immediately, and includes medical powers of attorney. Hence, your children receive proper healthcare in your absence. Perhaps most importantly, it creates a roadmap of your values, hopes, and dreams for your children’s upbringing. With a Kids Protection Plan, you’re not just naming someone to take your place – you’re providing them with the guidance and legal authority they need to raise your children exactly as you would want.

Ready to Protect Your Kids?

Your children are your most precious asset. Don’t leave their future to chance or riddled with loopholes. With a Kids Protection Plan created by my firm, you can rest assured knowing that your children will always be in the most capable and loving hands, no matter what life throws your way.

Ready to take control and build that plan? Schedule a free 15-minute call with me today. I’ll answer your questions, address your concerns, and help you take the first step toward securing your children’s future.

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.

Tags Estate Plan, Guardian, Kids Protection Plan, Personal Family Lawyer, Power of Attorney, Temporary Guardian, Trust, Will

Estate Planning

Don’t Make This $700 Million Mistake: Include an Asset Inventory in Your Estate Plan

Post author By Sara Thomas
Post date April 30, 2025
No Comments on Don’t Make This $700 Million Mistake: Include an Asset Inventory in Your Estate Plan

Imagine accidentally throwing away $700 million. While it sounds like the plot of a movie, this nightmare scenario has become a reality for James Howells, a computer engineer from Wales, who has now spent more than a decade fighting to recover a discarded hard drive containing the private key to his Bitcoin fortune.

Here’s what happened. In 2013, Howells mistakenly discarded a hard drive during an office cleanup. What he didn’t realize until it was too late was that this particular drive contained the only copy of his private key, which was needed to access 8,000 Bitcoin (BTC) that he had mined years earlier. When he realized his error months later, the cryptocurrency had already skyrocketed in value. Today, those 8,000 BTC would be worth approximately $700 million, and as much as $848,000 at the BTC all-time high thus far. Howells’ lost BTC will likely be worth over $1 billion at some point.

For over a decade, Howells has tried everything to recover his lost fortune – from begging local officials for permission to search the landfill to offering to share the recovered BTC with the city, taking his case to court, and even proposing to buy the entire landfill. Despite these efforts, the Newport City Council has consistently refused his requests, and British courts have ruled against him, stating there is “no realistic prospect of success.” As this article is published, Howell has said he will file a case with the European Convention on Human Rights.

This cautionary tale highlights a crucial lesson for everyone who owns digital currency, and even those who do not: If you don’t know what you own, where it is, and how to find it, your assets could be lost when you die. And, especially if you have digital assets, losing what you have can be a catastrophic, unrecoverable loss. Digital assets are especially vulnerable to loss if they aren’t inventoried and included in your estate plan.

The Modern Challenge of Asset Tracking

While most of us won’t lose hundreds of millions in cryptocurrency, many people face similar challenges on a smaller scale. Our assets (only part of which are financial) are increasingly scattered and less tangible in today’s digital world.

For instance, you may have:

Cryptocurrency in various digital wallets
Digital photos and personal archives stored across multiple cloud services
Online financial accounts with different institutions
Insurance policies that are accessed through your employer’s online benefits platform
Frequent-flyer miles and reward points are worth thousands of dollars

How are you keeping track of these assets? Are you sure you know exactly what you have and where it is? Howells wasn’t.

Now think about this: If Howells could lose an extremely valuable asset while he’s alive, how will your loved ones know where your assets are after you’re gone? Or, how will they even know what you have? If you don’t know the answer, the ramifications can be considerable.

The Real Consequences of Poor Asset Tracking

Across the U.S., approximately $60 billion in known assets have been lost or forgotten about. Bank accounts, insurance policies, retirement funds, and other financial assets often become lost when people move, change their contact information, or simply forget about their accounts. And that doesn’t even count the billions or, one day, trillions of lost digital assets that aren’t yet being tracked as lost.

If you don’t have an up-to-date inventory of all your assets, here’s what’s likely to happen:

Assets may be permanently lost or forgotten
Your loved ones may never even know these resources existed
Court processes like probate become longer and more expensive
Family conflict can arise when assets are discovered later
Digital assets may become inaccessible without proper password management
Sentimental items might be discarded or lost during transitions

While it’s possible that some of your assets could end up in a landfill, like Howells’ BTC hard drive, what’s more likely to happen is that they get turned over to the government. Each state has a Department of Unclaimed Property for this purpose. To recover the lost asset, which can be time-consuming and frustrating for you or your loved ones, you must go through a tedious and potentially unsuccessful process.

I’ve seen families devastated not just by the financial impact of lost assets but by the emotional toll when meaningful items disappear or become inaccessible after a loved one’s passing. This occurs when a person lacks an estate plan, has an outdated estate plan, or a plan that consists solely of a set of legal documents. There is a better way.

The Life & Legacy Planning Solution

The traditional approach to estate planning, which most people are familiar with, because they haven’t received proper education, involves drafting a will, a financial power of attorney, a healthcare power of attorney, and possibly a trust. Then, you “set it and forget it,” storing your documents in a drawer and never looking at them again. When “planning” is done this way, it often results in court, conflict, lost assets, and even irreparably broken relationships among those you love most.

But my proprietary Life & Legacy Planning process is entirely different. I go beyond mere document drafting and create not only legal documents, but all the other facets that need to be in place for your plan to work, including a comprehensive asset inventory as a foundational element. Here are just a few highlights of the Life & Legacy Planning process:

Personal Resource Map

From the outset, I help you create a detailed inventory of everything you own – from real estate and bank accounts to digital assets and family heirlooms. This comprehensive map ensures nothing is overlooked or forgotten. I believe this is so important that I will support you in doing this, whether you decide to work with me or not.

Regular Reviews and Updates

Life changes, and so do your assets. My process includes regular reviews to ensure your inventory stays current as you acquire new assets or sell existing ones.

Secure Documentation

I provide secure systems for documenting access information for your digital assets, ensuring your designated representatives can access what they need when the time comes.

Clear Communication Plan

I guide you in communicating with loved ones about what you have and where it’s located, without compromising security during your lifetime. I’ll also be there for your loved ones after you’re gone, so they know what to do.

Peace of Mind in a Complex World

James Howells’ story is extreme, but it serves as a potent reminder that in today’s complex world, knowing what you have and ensuring it is properly documented is more critical than ever.

As your trusted attorney, I don’t just draft documents; I assist you in making informed and empowered decisions about life and death for yourself and the people you love. That’s why I offer a Life & Legacy Planning® Session, during which you will become more financially organized than you’ve ever been before and make all the best choices for the people you love.

Tags Asset Inventory, Asset Protection, Bitcoin, BTC, Digital Assets, Estate Plan, Estate Planning, James Howells, Personal Family Lawyer

Estate Planning

Gene Hackman’s Estate: A Wake-Up Call

Post author By Sara Thomas
Post date April 23, 2025
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The recent passing of legendary actor Gene Hackman has revealed a complicated estate situation that is a powerful warning for everyone – married couples especially – regardless of net worth.

Whether you have significant assets or just want to ensure your wishes are honored during your lifetime and you don’t leave a mess of open loops, creditors, and pain for your loved ones, getting your estate plan done right so it doesn’t fail when the people you love need it is the answer. Unfortunately, many estate plans, even plans prepared by top lawyers and law firms, are ticking time bombs that will blow up when it’s too late. However, the proper estate planning process, which I call Life & Legacy Planning, can save your loved ones from the cost of failed planning.

This article will look at the lessons from the Hackman family estate plan. I’ll explore the importance of having a well-structured Life & Legacy plan, the risks of outdated documents, and key strategies to prevent inheritance disputes.

Let’s first explore what’s happened.

What Happened

Gene Hackman, the two-time Academy Award winner known for films like The French Connection and Unforgiven, and his wife Betsy Arakawa were recently found deceased in their Santa Fe, New Mexico home. Court documents reportedly reveal that Arakawa, 65, died on February 11 from Hantavirus pulmonary syndrome, a rare disease contracted through contact with mouse droppings. Hackman, who was 95, died a week later from natural causes related to heart disease and complications from Alzheimer’s disease.

The couple’s wills, dated from 2005, show they each intended to leave their estates to one another. Hackman’s will named Arakawa as the personal representative of his estate and the recipient of his “entire estate” as successor trustee of the Gene Hackman Living Trust. Similarly, Arakawa’s will specified that her estate would go to the trustee of Hackman’s trust if he outlived her.

Unlike many couples, who leave their assets to each other and don’t have a plan for what happens if they die together or close together, the Hackmans had contingency plans. Since Hackman and Arakawa are deceased, Julia L. Peters, named as the second successor personal representative in Hackman’s will, has taken over the duties of managing both estates. The first successor named in the wills, attorney Michael G. Sutin, is also deceased.

Court documents show that Peters, who works for a trust company, was appointed as the personal representative for both estates in March 2025. Peters filed appropriate paperwork to admit Hackman’s will to probate and begin the administration process.

The Simultaneous Death Problem Most Couples Ignore

Most married couples do precisely what Hackman and Arakawa did—they name each other as the primary beneficiary on everything: wills, trusts, life insurance policies, retirement accounts, and more. But what happens if you and your spouse die together or a short time apart? Chaos, delays, and assets potentially going to unintended beneficiaries can result. Your loved ones will almost certainly have to go to court, which is set up for conflict and can be very expensive. The best practice is to name backups or contingent beneficiaries so your plan works.

Arakawa considered this possibility in her estate planning. Reports indicate her will contained a provision that if she and Hackman died within 90 days of each other, her assets would go to a charitable trust, as she had no children of her own.

Blended Family Considerations

If you have a blended family, things can get complicated. With Arakawa and Hackman dying within days of each other, it may be challenging to sort out who the beneficiaries are. His plan says she receives his assets, and her plan says he receives her assets. This creates a loop that needs to be sorted out. If Arakawa’s assets go to a charitable trust instead of to Hackman’s estate, Hackman’s kids may receive nothing from her estate.

Hackman’s will acknowledges his three adult children from his previous marriage to Faye Maltese: Christopher Hackman, Elizabeth Hackman, and Leslie Allen. Court records show that notices regarding Peters’s appointment as personal representative were sent to all three children in March 2025.

While the publicly available documents don’t reveal how Hackman’s assets will ultimately be distributed among beneficiaries, Peters noted in court filings that after specific bequests to “identified beneficiaries,” the remainder of Hackman’s trust will be “distributed per the desires of Gene Hackman as expressed in the trust document.” The trust documents have not been made public, which is one of many reasons you likely want a trust to govern the distribution of your assets at the time of your death..

The Life & Legacy Planning Difference

The Hackman case demonstrates several important estate planning principles, regardless of net worth, that anyone can learn from. I create plans for clients using the Life & Legacy Planning® process, which means your plan works when you and your loved ones need it to. All my Life & Legacy plans are comprehensive and customized to fit your particular family dynamics, your assets, and your wishes.

When you work with me, these are just a few of the strategies we can use that may make sense for you:

1. Name Contingent Beneficiaries for Everything

For every asset and document, we’ll name not just primary beneficiaries but also contingent beneficiaries. This includes your will, trust, life insurance, retirement accounts, transfer-on-death accounts, and any other assets with beneficiary designations. When you work with me, we start by inventorying all your assets so nothing gets missed, and all accounts that need beneficiaries are handled properly.

2. Include Simultaneous Death Provisions

If you’re married, we’ll include provisions in your will and trust that specifically address what happens if you and your spouse die simultaneously or within a short time of each other. The standard “120-hour rule” in many state laws may not be sufficient for your needs. We’ll also address what happens if any beneficiary you’ve named dies before you.

3. Create a Revocable Living Trust

A properly structured revocable living trust can provide more precise instructions for various scenarios and is often more flexible than wills are. Trusts also offer privacy, can save money on taxes, and can bypass the probate process, keeping your loved ones out of conflict and saving them time and money.

4. Include Special Provisions for Blended Families

If yours is a blended family, we will include customized strategies so your children are never accidentally disinherited.

5. Review and Update Regularly

Hackman’s will was reportedly last updated nearly 20 years before his death—a dangerously long period that would put anyone’s estate plan at risk.

If you want to ensure your plan works, it must reflect your life as closely as possible when something happens to you, whether death or incapacity. Thus, your plan must be reviewed at least every 3 years and after any significant life event such as the death of a beneficiary, marriage, divorce, or birth. Even if you haven’t had a significant life change, your assets may change – you inherit a significant sum, for instance – or the law could change. Any of these scenarios could put your plan at risk of failing.

Most attorneys will not review your plan with you regularly, so you have to remember to update your plan on your own. Not only that, you may not even be aware that your plan needs updating! On the other hand, my Life & Legacy Planning process includes reviews at least every 3 years. It’s built into my system for every client. This means that I take the burden off you so you don’t have to remember to review and update your plan. We can catch vulnerabilities in your plan before they become problems for your loved ones.

Your Next Step

As the Hackman case illustrates, effective estate planning isn’t just about creating documents—it’s about creating a comprehensive plan that anticipates any scenario, stays updated over time, and protects all the people you care about.

I support you to create a Life & Legacy Plan that works when you need it to work. That’s why I start with a Life & Legacy Planning Session, where we’ll discuss not just who gets what but what happens in complex situations like simultaneous deaths, incapacity, or beneficiaries who predecease you. We’ll also discuss what will work for your unique family situation, whether you’re part of a blended family, have children with special needs, or face other circumstances that require specialized planning.

Don’t leave your legacy to chance or create accidental disinheritances through incomplete planning. Together, we can create a plan that truly protects you and everyone you love most. Contact us today to get started.

Tags Back-up Successor, Estate Planning, Gene Hackman Estate, Simultaneous Death

Estate Planning

Beyond the FDIC Safety Net: Protecting Your Cash When Your Savings Exceed Insurance Limits

Post author By Sara Thomas
Post date April 9, 2025
No Comments on Beyond the FDIC Safety Net: Protecting Your Cash When Your Savings Exceed Insurance Limits

Imagine this: You’ve spent decades carefully saving money, building a comfortable nest egg representing years of hard work and discipline. One morning, you’re sipping coffee and browsing the news when headlines about a bank failure catch your eye. Your stomach drops as you realize a significant portion of your savings could be at risk because you’ve got an account in cash that exceeds the FDIC insurance limits.

This scenario isn’t just a theoretical worry—it’s a very real concern, as we have seen banks fail. The Federal Deposit Insurance Corporation (FDIC) serves as our financial safety net, offering protection of up to $250,000 per depositor, per insured bank, for each account ownership category. But what happens when your cash savings exceed that safety net? How do you ensure your entire financial legacy remains protected?

Understanding FDIC Insurance: Your Financial Safety Net

The FDIC was born from the ashes of the Great Depression when thousands of banks failed, and countless Americans lost their life savings. Today, it is one of the cornerstones of our banking system’s stability. Think of FDIC insurance as a financial life preserver—it’s not something you think about until you need it, but you’ll be immensely grateful it’s there when the waters get rough.

Here’s what to know: FDIC insurance isn’t just a blanket coverage of $250,000 per person. It’s more nuanced and more generous than many realize. The coverage extends to $250,000 per depositor per FDIC-insured bank for each account ownership category. These categories include single accounts, joint accounts, certain retirement accounts, and trust accounts.

Let me break this down with a practical example. Imagine Maria has the following accounts at First National Bank:

A personal checking account with $100,000
A joint savings account with her husband containing $300,000
An Individual Retirement Account (IRA) with $200,000

Is Maria fully protected? Let’s see: Her personal account falls under the single ownership category ($100,000, fully covered). The joint account with her husband receives up to $250,000 for each owner (Maria’s $150,000 share is fully covered). Her IRA falls under the retirement account category (her $200,000 is fully covered). Maria has $450,000 protected by FDIC insurance at this one bank.

Does this coverage arrangement make you think differently about how your accounts are structured? Have you considered how your current banking setup aligns with these protection categories?

When Your Savings Exceed FDIC Limits: Strategic Approaches

Many of us dream of having “too much money” for FDIC insurance to cover fully—it’s a good problem to have! But it’s still a problem that needs solving. When your financial reserves take you beyond the FDIC safety net, it’s time to get strategic about protecting those hard-earned dollars.

Think of managing large deposits like a farmer who doesn’t plant all their crops in a single field. If a storm hits one area, the entire harvest isn’t lost. Similarly, spreading your financial assets across multiple institutions creates resilience in your financial portfolio. Here are several approaches to consider:

Multiple Bank Strategy: Dividing Your Financial Pie

The most straightforward approach is to spread your funds across multiple FDIC-insured banks. Each bank will provide separate insurance coverage, effectively multiplying your protection. For example, if you have $750,000 in savings, you could place $250,000 in three different banks, ensuring complete FDIC coverage.

This strategy is a bit like not putting all your eggs in one basket—a time-tested approach to risk management that remains relevant in our digital banking age. The downside? Managing multiple accounts across different institutions requires more time and attention. You’ll need to track various account numbers and passwords and potentially deal with varying banking platforms. On top of that, if you have a revocable living trust, you want to ensure each account is tilted in the name of your trust and not in your name.

Utilizing Different Ownership Categories: Maximizing Protection at One Bank

Another approach involves strategically using different ownership categories within the same bank. A married couple, for instance, could have individual accounts ($250,000 coverage each) plus a joint account (another $500,000 in coverage, $250,000 for each person). Here’s what that could look like:

Husband’s individual account: $250,000
Wife’s individual account: $250,000
Their joint account: $500,000
Husband’s IRA: $250,000
Wife’s IRA: $250,000

That’s a total of $1.5 million protected at a single institution! This approach offers convenience but requires careful planning and clear documentation of ownership. If you have a revocable living trust, I must review your options with you here to ensure your accounts are correctly titled both for FDIC coverage and for your trust/estate planning purposes.

Certificate of Deposit (CD) Laddering: Timing Your Protection

CD laddering involves purchasing certificates of deposit with varying maturity dates. This provides a steady stream of maturing funds and can be structured across multiple banks to maximize FDIC coverage.

Imagine building a ladder where each rung represents a CD at a different bank. As each CD matures, you can decide whether to reinvest at the same bank or move funds elsewhere based on current interest rates and your coverage needs.

This approach is like planting different crops that harvest at different times of the year—you’re constantly collecting something, and no single weather event can wipe out your entire yield. If you go this route again, I want to ensure your CDs are properly titled in the name of your living trust.

Considering Credit Unions: An Alternative Safety Net

Credit unions offer an alternative to traditional banks with similar protection through the National Credit Union Administration (NCUA). The NCUA’s share insurance fund protects deposits up to $250,000, comparable to FDIC coverage.

For some, credit unions offer a more personal banking experience, competitive rates, and lower fees. They can be an excellent component of your deposit-spreading strategy.

As you consider these options, ask yourself: How is my current banking arrangement structured? Could I be vulnerable to losing uninsured deposits if my primary bank were to fail? How much complexity am I willing to manage to ensure maximum protection?

Looking Beyond Traditional Banking: Additional Options

Sometimes, thinking outside the traditional banking box can provide security and opportunity. Cash management accounts offered by brokerage firms often spread your deposits across multiple banks automatically, maximizing FDIC coverage without you having to manage multiple accounts directly.

For more significant sums, Treasury securities offer the backing of the full faith and credit of the US government and can be effective protection, so long as you believe the US won’t default on its loans. If you are concerned about the US debt crisis and whether the US will default on its loans, Treasury securities would not be a good option for you.

Remember that protection is only one consideration. You’ll also want to consider accessibility, convenience, and how your deposits fit into your broader financial and estate planning goals. After all, what good is protection if it makes your financial life unwieldy or prevents you from using your money effectively?

Bringing It All Together: Creating Your Protection Plan

Protecting your financial legacy isn’t just about security today—it’s about ensuring that the fruits of your labor will benefit you and potentially your loved ones well into the future. Just as you wouldn’t build a house without a solid foundation, you shouldn’t build wealth without ensuring it stands on secure ground.

The first step is to assess your current deposit situation. Make a list of all your deposit accounts, their balances, and ownership structures. Then, assess how much of your money currently falls outside FDIC protection. This clarity will help determine how urgently you need to restructure your accounts.

Next, consider which of the strategies we’ve discussed best fits your personal situation. Do you value simplicity and would prefer the multiple-bank approach? Or perhaps you’d like to keep your banking relationships consolidated and maximize coverage through different ownership categories.

Implementing your chosen strategy doesn’t have to happen overnight. You can make changes gradually, perhaps as CDs mature or as you receive new funds to deposit.

Securing Your Financial Legacy for the Future

I don’t just draft documents; I help you ensure you make informed and empowered decisions about life and death for yourself and the people you love. Understanding and addressing FDIC insurance limits is crucial to protecting your financial legacy.

That’s why we start with a Life & Legacy Planning® Session, where together, we’ll explore how your assets fit into your broader financial picture and help you get more financially organized than you’ve ever been. Then, I’ll support you in creating a Life & Legacy Plan that ensures your hard-earned assets are positioned to support your loved ones well into the future.

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

Tags Asset Protection, CD Laddering, Credit Union, Estate Plan, FDIC, Multi-Bank, Personal Family Lawyer

Estate Planning

Til Death Do Us Part? Why Unmarried Couples Must Have An Estate Plan That Works For the People They Love

Post author By Sara Thomas
Post date April 3, 2025
No Comments on Til Death Do Us Part? Why Unmarried Couples Must Have An Estate Plan That Works For the People They Love

Love in the 21st century takes many forms, and for many couples, “forever” doesn’t always include a marriage license. While a deeply personal choice, being unmarried adds layers of legal and financial complexity that can’t be ignored, especially when protecting your assets and loved ones.

Imagine this: you’ve built a life with your partner, maybe even bought a home and had children together. You share bills, dreams, and a future. But without the legal protections of marriage, what happens when one of you passes away? And what happens if one of you becomes incapacitated first?

Some of the questions you should be asking:

Who makes medical decisions for you or your partner? Without marriage or legal protections, you likely won’t be the person you want.

Who inherits what? Again, it will not likely go how you want without marriage or legal documents.

How would your children be provided for? It all depends on who the biological parents are and the line of “blood” relationship unless you’ve got an estate plan in place to ensure your children are cared for by the people you want, not who the law would choose.

How can you avoid a court process and potential conflict during an already emotional time?

The Legal Reality for Unmarried Couples

Unlike married couples, who automatically receive certain legal protections, unmarried couples must take deliberate steps to ensure their wishes are honored. In the eyes of the law, unmarried partners are essentially legal strangers, regardless of how long they’ve been together or how intertwined their lives may be.

This legal disconnect becomes starkly apparent in moments of crisis. If you’re hospitalized, your partner may be denied visitation rights or the ability to make medical decisions on your behalf. If you pass away without proper planning, your partner could be left with nothing – not even the home you’ve shared for decades.

According to a recent survey by Caring.com, only 24% of Americans have a will. This omission leaves millions of Americans vulnerable to painful legal and financial complications that can compound grief with unnecessary hardship. And it’s completely avoidable.

The Unmarried Couple’s Estate Planning Checklist

Here’s a closer look at some key areas where unmarried couples need to be especially proactive in their estate planning:

✔ Home Sweet Home, But Whose Name is on the Deed?

Many unmarried couples purchase a home together. However, the surviving partner might face significant challenges without a will or living trust that clearly outlines ownership and inheritance wishes. Here’s why:

Intestacy Laws: If you die without a will, your state’s intestacy laws dictate who inherits your property. These laws typically favor spouses and blood relatives, meaning your unmarried partner will be left with limited or no rights to the home you shared.

Tax Implications: Inheritance laws for married couples often come with tax benefits that unmarried couples don’t receive. The surviving partner could face a hefty estate tax bill, potentially forcing them to sell the home to cover the costs.

Title Matters: How you title your property significantly impacts what happens after death. Joint tenancy with rights of survivorship offers some protection, but this approach doesn’t address other estate planning concerns and may have unintended tax consequences.

✔ Providing for Your Children

Having children together adds another layer of complexity for unmarried couples. Here’s how a lack of proper estate planning can create significant hardship:

Guardianship Concerns: If one parent passes away, the surviving parent might not automatically have legal guardianship rights (especially if that person isn’t the biological parent, as is often the case with same-sex couples). In extreme cases, this could lead to legal battles with other family members or even state intervention.

Inheritance Complications: Without a will or trust, your children might not automatically inherit your assets as intended. Again, intestacy laws could mean your assets are divided in ways you wouldn’t have chosen, potentially leaving your children with inadequate financial support.

Blended Family Challenges: If either partner has children from previous relationships, the potential for conflict multiplies. Without clear documentation, children from previous relationships may find themselves at odds with the surviving partner, creating painful family rifts during an already difficult time.

✔ Beyond the Home: Protecting All Your Assets & Minimizing Taxes

Unmarried couples often accumulate significant assets—bank accounts, investments, retirement funds, etc. Without a plan:

Ownership Disputes Can Arise: If it’s unclear who owns what, it can lead to legal battles between surviving partners and family members of the deceased.

Unnecessary Tax Burdens: Unmarried couples often miss out on tax advantages available to married couples, potentially leading to a larger tax bill for the surviving partner.

Retirement Account Complications: Retirement accounts like 401(k)s and IRAs require specific beneficiary designations. Without these, your partner may have no claim to these assets, regardless of your intentions.

✔ Healthcare Decisions and End-of-Life Care

Perhaps the most immediate concern for unmarried couples is handling medical emergencies and end-of-life decisions:

Medical Decision-Making: Without healthcare directives, your partner may have no legal right to make medical decisions if you become incapacitated.

Hospital Visitation Rights: In some healthcare facilities, only family members can visit intensive care patients. Without proper documentation, your partner could be denied access during critical moments.

Funeral and Burial Decisions: Legal next of kin typically make funeral arrangements. Without documentation stating your wishes, your partner may have no say in how your remains are handled, even if you’ve discussed your preferences extensively.

✔ Digital Assets and Modern Considerations

In our increasingly digital world, estate planning must also address digital assets:

Access to Online Accounts: Your estate plan must specifically address digital assets, from social media to cryptocurrency, to ensure your partner can access them.

Business Interests: If you own a business, clear succession planning is essential to prevent disruption and protect your partner’s financial interests.

Pets: While many consider pets family members, the law views them as property. Specific provisions must be made to ensure your beloved pets receive proper care.

Don’t Leave Your Future to Chance

Estate planning isn’t just for the wealthy or the elderly – anyone who wants to protect the people and assets they cherish most. Creating a legally sound estate plan for unmarried couples is not just a good idea – it’s essential. But a traditional estate plan, DIY plan, or cheap legal plan isn’t sufficient. Instead, you need a Life & Legacy Plan.

I can help you create a tailored estate plan for your life and legacy. I’ll guide you to understand all the complexities and design a personalized plan that makes it all as simple as possible so that when one of you becomes incapacitated or dies, the survivor will have all the support they need without any of the mess. This includes:

Clearly Addressing Ownership of All Assets and Avoiding Probate: I’ll work with you to determine the best way to handle the transfer of all jointly and separately owned assets—including your home, bank accounts, investments, retirement accounts, and personal property—in a way that minimizes tax burdens, avoids probate court, and ensures a smooth and seamless transition for your surviving partner. This means your loved ones can focus on healing and honoring your memory, not battling legal complexities.

Establishing Guardianship and Financial Provisions for Children: If you have children together or separately, I will work with you to legally designate guardians, establish trusts if needed, and ensure your children’s financial well-being is protected. If you have children from previous relationships, I will take extra care to minimize or eliminate potential conflicts between your children and your surviving partner, ensuring a smoother transition and honoring your wishes.

Planning for the Incapacity of Either Partner: I’ll establish powers of attorney and healthcare directives so your partner can seamlessly manage your affairs and make medical decisions if you cannot do so yourself.

Your Next Steps for Peace of Mind

Don’t wait until it’s too late – take proactive steps today to protect the ones you love. Schedule a consultation with me to get started. Together, we can build a plan that provides clarity, security, and peace of mind for you and your family, no matter what the future holds.

Tags Estate Plan, Estate Planning, Personal Family Lawyer, Unmarried Couples

Estate Planning

Planning a Trip? Protect Your Children with a Kids Protection PlanⓇ

Post author By Sara Thomas
Post date March 26, 2025
No Comments on Planning a Trip? Protect Your Children with a Kids Protection PlanⓇ

As summer approaches, you’re likely focused on planning the perfect getaway with your children—booking flights, reserving hotels, and mapping out exciting activities. However, one crucial aspect of travel planning often gets overlooked: ensuring your children’s safety and care if something unexpected happens to you during your trip. While no one wants to think about emergencies during vacation, having proper protection lets you truly relax and enjoy making memories together.

Let’s explore why having a Kids Protection Plan^Ⓡ (“KPP”) in place before traveling is essential and what steps you can take to protect your children. Please note: most lawyers, even at the top estate planning firms, often make at least one of 6 common mistakes the KPP is designed to address when naming legal guardians for children in an estate plan.

The Hidden Risks of Traveling Without Protection

When you’re caught up in vacation planning excitement, it’s easy to focus only on the fun ahead. However, traveling presents unique risks and scenarios you need to consider. If you become incapacitated in a car accident or experience any other emergency while away from home, what would happen to your children in those critical first hours or days? Without proper legal documentation, your children could be temporarily taken into the care of strangers or social services until the proper authorities can determine who has the legal authority to care for them.

This becomes even more complicated when traveling internationally. Different countries have varying laws about child custody and care in emergencies. Without clear legal documentation designating temporary guardians, your children could face significant trauma while authorities work through bureaucratic processes to determine their care. Even domestic travel can present challenges if you’re incapacitated in another state, as local authorities may not immediately recognize out-of-state guardianship arrangements without proper documentation.

Essential Components of Protection While Traveling

A comprehensive KPP, which we create for you as part of the Life & Legacy Planning^Ⓡ process, provides crucial legal documentation and instructions that activate immediately if something happens to you. This includes the designation of temporary guardians who can care for your children until your long-term guardians arrive, as well as detailed information about your children’s medical needs, allergies, medications, and daily routines.

When you work with us to create a KPP, we include several key components that many parents overlook. First, you’ll receive ID cards that list emergency contacts that can care for your children in your absence. Second, we’ll create a medical power of attorney forms that allow designated caregivers to authorize treatment for your kids if they need medical care if needed. Third, your KPP will include temporary guardianship documentation so your kids are never taken into the care of strangers while the authorities locate the long-term guardians for your children. Finally, if there is anyone you would never want raising your children, we document that (confidentially), too.

Beyond these basics, your KPP should include detailed information about your children’s daily lives—their favorite foods, bedtime routines, fears or anxieties, and comfort items. This helps caregivers maintain normalcy during a stressful situation. You can also include passwords for electronic devices, social media accounts, and educational platforms your children might need to access.

Take Action Before You Travel

Before heading off on your summer adventures, schedule time with me; we will help you consider all the potential issues that could arise so that you can make the best decisions for yourself and your kids. We’ll start by carefully selecting local and long-distance temporary guardians who can respond quickly in an emergency, considering factors like their proximity to your vacation destination, ability to travel on short notice, and familiarity with your children’s needs.

Then, we’ll help you create an emergency response plan that outlines what should happen in various scenarios. This plan should include who should be contacted first, in what order, and what immediate actions they should take.

Importantly, your plan should be easily accessible to designated guardians and include clear instructions for first responders or authorities who need to refer to it in an emergency. We will help you with this by ensuring you have access to the documents you need and that your chosen guardians know precisely how to access the information and documents they need. We will also support them in an emergency so they know exactly what to do.

Making these arrangements isn’t about dwelling on worst-case scenarios—it’s about creating peace of mind so you can fully enjoy your vacation. Proper protection allows you to create wonderful memories with your children instead of worrying about “what-if” scenarios. Think of it as travel insurance for your children’s well-being—something you hope you’ll never need but will be incredibly grateful to have if an emergency arises.

Your Next Steps for Peace of Mind

We support you in creating a comprehensive Life & Legacy Plan that includes a Kids Protection Plan so your children are always protected, no matter where your travels take you. Take the first step today by booking a Life & Legacy Planning Session, where you’ll get educated on what will happen if you become incapacitated and when you die so you can make the very best decisions for your loved ones. From that place of empowerment, we’ll work together to create your comprehensive Life & Legacy Plan that gives you peace of mind, knowing you’ve done all you can for the people you love most. Contact us today to get started.

Tags Estate Planning, Guardianship, Incapacity Planning, Kids Protection Plan, Travel

Estate Planning

A Step-by-Step Guide To Funding Your Trust

Post author By Sara Thomas
Post date March 17, 2025
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Creating a trust is a crucial step in estate planning, ensuring that your assets are managed and distributed according to your wishes. However, more than establishing a trust is required; you must also fund it. Funding a trust involves transferring assets into the trust, making them subject to the terms and management outlined in the trust document. Without funding, your trust remains an empty shell, unable to fulfill its intended purpose. This blog will walk you through the process of funding a trust, covering various asset types and providing practical tips to ensure that your trust is correctly set up to protect your legacy.

Why Funding a Trust is Essential

Before diving into the how-to, it’s essential to understand why funding a trust is so critical. When you fund a trust, you transfer ownership of your assets from your name into the name of the trust. This process has several key benefits:

Avoidance of Probate: One of the primary advantages of a trust is that assets placed in a trust typically avoid the probate process, which can be lengthy, costly, and public. By funding your trust, you ensure that your beneficiaries can receive their inheritance more quickly and with fewer legal hurdles.
Control Over Distribution: A trust empowers you to dictate exactly how and when your assets are distributed to your beneficiaries. Whether you want to provide for minor children, protect a loved one with special needs, or stagger distributions over time, funding your trust gives you the control to do so.
Protection from Creditors: In many cases, assets in a properly funded trust may be shielded from creditors, lawsuits, or divorce settlements, providing a robust layer of security for your estate.

Step 1: Identify the Assets to Transfer

The first step in funding a trust is to identify the assets you wish to transfer into the trust. These assets can include:

Real Estate is often one of the most valuable assets people transfer into a trust. It includes your primary residence, vacation homes, rental properties, and any other real property you own.
Bank Accounts: Checking, savings, and money market accounts can all be transferred into a trust. However, some funds should be kept in personal accounts for day-to-day expenses.
Investment Accounts: Stocks, bonds, mutual funds, and other investment accounts are commonly transferred into a trust. This ensures that these assets are managed according to your wishes after your death.
Retirement Accounts: While retirement accounts like IRAs and 401(k)s are not typically transferred into a trust due to tax implications, you can name the trust as a beneficiary, ensuring the assets are managed according to your trust’s terms upon your death.
Life Insurance Policies: You can transfer a life insurance policy ownership to your trust or name the trust as the beneficiary. This ensures that the proceeds are distributed according to your estate plan.
Personal Property: Valuable personal property, such as jewelry, artwork, and antiques, can also be transferred into a trust. This requires careful documentation to ensure the transfer is recognized.
Business Interests: If you own a business, you can transfer your ownership interest into the trust. This can be complex and require amending operating or shareholder agreements, so consult with a professional.

Step 2: Re-title Your Assets

Once you’ve identified the assets to transfer, the next step is to retitle them in the trust’s name. The specific process varies depending on the asset type.

1. Real Estate

To transfer real estate into a trust, you’ll need to execute a new deed that transfers ownership from your name to you as trustee of your trust. This deed must be recorded with the appropriate county recorder’s office. It’s often best to work with an attorney to ensure the deed is drafted correctly and recorded.

2. Bank and Investment Accounts

For bank and investment accounts, you’ll need to contact the financial institutions holding the accounts. They will require you to complete paperwork to change the account ownership to the name of the trust (you as trustee). Be prepared to provide a copy of the trust document or a Certification of Trust.

3. Personal Property

Personal property can be transferred into a trust through a bill of sale or an assignment of property, depending on the item. For items with titles, like vehicles, you’ll need to re-title the car in the name of the trust at your local Department of Motor Vehicles (DMV). Other personal property may be transferred via a Personal Property Memorandum.

4. Business Interests

Transferring business interests to a trust requires reviewing and possibly amending the business’s operating or shareholder agreement. You’ll then execute an assignment of ownership interest to the trust.

Step 3: Designate Beneficiaries

In cases where transferring the asset into the trust is not advisable or feasible—such as with retirement accounts or certain life insurance policies—you can name the trust as the beneficiary. This ensures that the asset will be transferred to the trust and managed according to the trust’s terms upon your death.

You may designate the trust as a primary or contingent beneficiary for retirement accounts. Be aware that naming a trust as the beneficiary of a retirement account can have significant tax implications, so it’s essential to consult with a tax advisor or estate planning attorney.

Step 4: Update Beneficiary Designations

If you have other assets with beneficiary designations—such as life insurance policies, annuities, or payable-on-death (POD) accounts—you may want to update these to name the trust as the beneficiary. This ensures that these assets are managed according to your trust’s terms and are not subject to the probate process.

Step 5: Review and Update Your Trust Regularly

Funding your trust is not a one-time event. As your financial situation changes, you acquire new assets, or your estate planning goals evolve, you must update your trust and ensure that all relevant assets are appropriately titled in the trust’s name. Regular reviews with your estate planning attorney can provide you with the reassurance that your trust is always up to date.

Step 6: Consult with Professionals

Funding a trust can be a complex process, and it’s crucial to get it right to ensure your estate plan functions as intended. Working with professionals—such as an estate planning attorney, financial advisor, and tax professional—can provide the expertise needed to navigate the process smoothly.

We’re Here To Ensure a Smooth Transition

Funding a trust is critical in ensuring that your estate plan is fully operational and capable of achieving your long-term goals. By carefully selecting assets, re-titling them into the trust, and regularly reviewing your estate plan, you can ensure that your legacy is protected and your loved ones are provided for according to your wishes. While the process can seem daunting, taking it step by step and seeking professional guidance can make it manageable and ultimately rewarding. Contact us today to get started.

Tags Asset Protection, Estate Plan, Estate Planning, Revocable Living Trust, Trust, Trust Funding

Estate Planning

Estate Planning During Divorce: Lessons from Shannen Doherty’s Legacy

Post author By Sara Thomas
Post date March 12, 2025
No Comments on Estate Planning During Divorce: Lessons from Shannen Doherty’s Legacy

The July 2024 passing of beloved Gen X actress Shannen Doherty offers important lessons about estate planning during divorce. Known for her iconic roles in “Beverly Hills, 90210,” “Heathers” and “Charmed,” Doherty not only faced a courageous and public battle with breast cancer but also raced against time to finalize her divorce and protect her estate. Her story shows why proper timing and planning are crucial when navigating divorce – one of life’s most challenging transitions.

The Power of Timing

According to reports, just one day before her death, Doherty filed for an uncontested divorce from her husband, Kurt Iswarienko, who signed the agreement the following day. This eleventh-hour timing proved crucial for her estate. By finalizing the divorce, Doherty ensured her assets—including a $6 million Malibu home and future residuals from her acting career—would be distributed according to her wishes rather than subject to community property laws.

Had the divorce not been finalized, the outcome could have been drastically different. In some states, if a person dies during an active divorce proceeding, the process either halts or is significantly altered. Without a finalized divorce agreement in a community property state like California, Iswarienko could have had a legitimate claim to significant portions of Doherty’s estate, potentially leading to years of costly legal battles and family conflict.

Common Estate Planning Mistakes During Divorce

While Doherty finalized her divorce just in time, many people make critical estate planning mistakes during divorce that can have lasting consequences for their families.

Here are the most common pitfalls to avoid:

Waiting Too Long to Update Beneficiary Designations. One of the biggest mistakes is assuming your divorce automatically removes your ex-spouse as a beneficiary from your accounts and insurance policies. The reality is more complicated. While some states have laws that automatically revoke ex-spouse beneficiary designations upon divorce, others don’t. Moreover, federal law may override state law for certain types of accounts, like employer-sponsored retirement plans. This means your ex-spouse could still inherit your 401(k) or life insurance proceeds even after divorce if you don’t actively change your beneficiaries. When you work with me to create your Life & Legacy Plan, I will support you in making sure your assets go to the people you want in the way you want. That includes changing your beneficiary designations if needed.

Forgetting About Digital Assets. In today’s digital world, your online presence and digital assets must be considered during divorce. Streaming service accounts, airline miles, cryptocurrency, digital photos, and social media accounts must be addressed. Many forget to update passwords and access information or specify who should inherit these digital assets. This oversight can leave your loved ones unable to access essential memories, valuable assets, or necessary account information.

Neglecting Incapacity Planning. Divorce often focuses people’s attention on what happens after death, but incapacity planning is equally important. Your ex-spouse may have been your healthcare proxy or had power of attorney over your financial accounts. During and after divorce, you need to designate new agents to make medical and financial decisions if you become incapacitated. Without updated incapacity planning documents, your ex-spouse might still have legal authority to make crucial decisions about your care, which you may not want.

Making Emotional Decisions. Divorce is emotionally charged, and many people make hasty decisions based on anger or hurt. For example, you might make choices that could trigger expensive legal battles after death. As a Personal Family Lawyer, I am your trusted advisor who can help you see the impact of your decisions and support you to create a Life & Legacy Plan that aligns with your long-term goals and values.

Protecting Your Assets During Divorce

To avoid these common mistakes and protect your assets during divorce, consider these three practical steps:

Step 1: Create an Asset Inventory

Document all your assets, including property, bank accounts, retirement accounts, investments, life insurance policies, and digital assets. Note which assets are yours alone and which ones are joint assets. This inventory will help ensure nothing is overlooked during the divorce process. When you meet with me for a Life & Legacy Planning^Ⓡ Session, I will support you with this step.

Step 2: Review and Change Beneficiary Designations

Systematically review and update beneficiary designations on all financial accounts, retirement plans, and insurance policies. Remember that beneficiary designations typically override what’s written in your will or trust.

Step 3: Create a Life & Legacy Plan

When you work with me to create your comprehensive Life & Legacy Plan, you’ll know your assets will go to the people you want in the way you want and that you’ll be cared for by those you trust most if you become unable to care for yourself. You’ll also know that your beneficiary designations will be updated, your assets accounted for, and that you’re making the best decisions for the long term.

Your Next Step

I help you navigate life’s transitions while protecting your assets and loved ones. I don’t just create estate planning documents – I provide ongoing support to ensure your plan evolves with your life changes and works when you and your loved ones need it most. Through the Life & Legacy Planning process, I will help you make informed decisions about your estate, especially during significant life transitions. Contact us today to get started.

Tags Beneficiary Designations, Estate Planning During Divorce, Life Insurance, Shannon Doherty

Estate Planning

BOI/CTA UPDATE: Treasury Department Suspends Enforcement of Penalties

Post author By Sara Thomas
Post date March 8, 2025
No Comments on BOI/CTA UPDATE: Treasury Department Suspends Enforcement of Penalties

UPDATE: On March 2, 2025, the U.S. Department of the Treasury announced that it will not enforce any penalties or fines associated with the Corporate Transparency Act (“CTA”) reporting requirements against U.S. citizens or domestic companies. Rather, it plans to propose rules that narrow the scope of the CTA to foreign reporting companies only.

What now? There are still cases working their way through the courts, and the February 17th ruling by the District Court for the Eastern District of Texas, in the case Smith vs. Dept. of the Treasury is still in effect. That case both reinstated the beneficial ownership information (“BOI”) reporting requirements and set a filing deadline of March 21, 2025. However, if the Treasury Department refuses to enforce penalties for failure to report, then it appears the ruling has no teeth.

What this means for you: To learn more about the BOI/CTA, including how it affects you and your business – now and in the future – book a 15-minute call with me to hear what I recommend and to discuss how I can support you and your business on an ongoing basis.

Estate Planning

The Unexpected Challenges of Being an Estate Executor

Post author By Sara Thomas
Post date March 6, 2025
No Comments on The Unexpected Challenges of Being an Estate Executor

When someone asks you to be the executor of their estate, it might seem like a straightforward responsibility – distribute assets according to their will and handle some paperwork. However, as many executors discover, the role involves more complexity, time, and emotional labor than expected. Understanding these challenges can help you better prepare, whether creating your estate plan or considering serving as an estate executor.

But first, a note about terminology. If someone creates a will, the term used for the person who handles the estate is “executor.” If someone creates a trust, the person who handles the estate is called a “trustee.” When someone becomes incapacitated, the person who handles financial matters holds power of attorney. The jobs are similar but not identical. In this article, we’ll focus on the role of an executor, who carries out the wishes of someone who died under the terms of their will. However, if you’d like more information about what a trustee does, book a call with me using the link below.

Let’s get to it.

The Unexpected Financial Burden

One of the most unexpected aspects of being an executor is the immediate financial responsibility. When a person dies, their assets are temporarily frozen until a court grants legal authority to an executor to step into the shoes of the decedent (the person who died) and gather all the assets for distribution to the heirs of the decedent, which could take weeks, months or even years. Unless you plan and create a Life & Legacy Plan designed to keep your assets out of court, you’re leaving your executor with quite a burdensome responsibility.

Moreover, funeral homes and other service providers don’t wait for the court process. Most funeral homes require payment within days, ranging from $10,000 to $25,000 or more. While these costs can eventually be reimbursed from the estate (if funds are available), the executor must pay them personally and wait months for reimbursement. This situation can create significant stress, especially if the executor doesn’t have readily available funds.

Beyond funeral expenses, executors often need to pay ongoing bills for the deceased’s home, such as property taxes, utility bills, insurance premiums, and maintenance costs. These expenses must continue even though the estate’s assets are frozen. Again, these expenses must be paid out-of-pocket until the executor gains legal access to the deceased person’s accounts. Some executors report spending thousands of dollars of their own money during this interim period, creating financial strain at an already difficult time.

Finally, depending on who drafted your will (did you do it on your own, have a lawyer well-versed in estate planning, or perhaps a lawyer who just dabbles in wills and trusts?), your executor could be required to come up with the money to pay a bond, which is like an insurance policy that can be thousands of dollars out of pocket, before they can be appointed by the court to serve.

Drowning in Documentation

The paperwork involved in serving as an executor can be overwhelming. Executors must track down and organize all financial accounts, including bank accounts, investment accounts, retirement funds, and insurance policies. They must obtain multiple copies of death certificates, file court documents to initiate probate, submit final tax returns, close utility accounts, notify creditors, and process insurance claims. Sometimes, financial institutions ask for additional documentation, like a medallion signature – used to prove a person’s identity – which can take extra time and headache. The process often requires numerous phone calls, visits to financial institutions, and hours of organizing documents. Many executors report handling these tasks for hundreds of hours over months or even years.

Worse, some accounts may never be found. If you haven’t organized your finances so that your executor knows exactly what you have and where to find it, chances are the asset will be lost. When an asset is lost and never claimed, it must be turned over to the State’s Department of Unclaimed Property until (or if) someone finds it and can prove that the deceased was the rightful owner. Think about that for a minute. Would you want your hard-earned money turned over to the government or go to the people you want in the way you want? If it’s the latter, you need to create a Life & Legacy Plan. Keep reading to find out how.

Navigating the Family Dynamics

While the technical aspects of being an executor are challenging, the emotional and interpersonal dynamics can be even more difficult to navigate. Executors often find themselves in the uncomfortable position of enforcing the deceased’s wishes even when family members disagree. They must maintain impartiality while managing their own and others’ grief. This combination of emotional strain and family expectations can make the role particularly challenging and lead to family conflict. Sadly, that conflict can result in a protracted, expensive court battle and irretrievably broken relationships.

What You Can Do Now to Support Your Executor’s Success

When you create a Life & Legacy Plan with me, we will make your executor’s job much more manageable. For instance, I’ll help you create a comprehensive inventory of your assets, including account numbers and passwords, which can save countless hours of detective work. I’ll also help you update the inventory over time so it’s current when your executor needs it. I’ll also help you set aside funds to cover expenses so your executor doesn’t have to pay out of pocket. And we will consider whether to use a trust and name your executor as trustee of the trust so they don’t have to engage with the court at all.

We’ll also conduct a Life & Legacy Interview so family members know your wishes. This can go a long way towards preventing future conflicts. Most importantly, I will counsel you to choose the very best person for the job. Many people default to their oldest child or closest relative but haven’t considered whether they have the time, organizational skills, and emotional capacity to handle this complex role. Understanding exactly what’s involved means you can decide with full knowledge.

How I Help Make the Process Easier

I help you create a comprehensive Life & Legacy Plan that makes your executor’s job as straightforward as possible. After you’re gone, I will guide your executor through the probate process, handle complex legal paperwork, mediate family disputes, ensure compliance with all legal requirements, and provide objective advice during emotional decisions. That’s the value of a Life & Legacy Plan – and why it’s the best gift you can give your loved ones.

Take the first step toward protecting your family and supporting your future executor. Schedule a complimentary 15-minute consultation. Contact us today to get started.

Tags Estate Administration, Estate Executor, Estate Plan, Estate Planning, Executor, Personal Family Lawyer

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