Category: Estate Planning

Estate Planning Before You Travel: Why It’s Critically Important

Post author By Sara Thomas
Post date June 6, 2025
No Comments on Estate Planning Before You Travel: Why It’s Critically Important

Vacations can be the perfect opportunity to relax, disconnect from work and responsibilities, and enjoy your spouse, partner, kids, or friend’s company. But before you head off on your next getaway, there’s something else you should consider doing that might not sound quite as fun—creating an estate plan. While it may not sound like the most thrilling way to spend a day, here are some reasons you need to consider your estate plans before traveling.

An estate plan ensures that any medical decisions needed while away from home will be handled according to your wishes and with as much ease as possible, no matter what the rules are in case something happens. If you fall ill or become injured and can’t make medical decisions for yourself, your estate plan will ensure that decisions will be made by the person you choose, with your indicated desires for your care at the forefront.
Without an estate plan, your family or friends could have a heavy lift to get you back home, locate your assets, keep your bills paid, and even ensure your children get taken care of by the right people in the right way.
Lastly, an estate plan ensures that any debts or liabilities are properly taken care of in case something happens while on vacation. This can help prevent creditors from trying to collect from surviving family members after the fact, something no one wants to deal with during such a difficult time.

Yes, Even Married Couples Need an Estate Plan

You might think that you don’t need an estate plan because you are married. Or you might even think your Will is enough and would just handle everything. But that’s generally not the case.

Even if you are married, you still need medical powers of attorney, making it clear that you want your spouse to make medical decisions for you, or even potentially adding in additional decision-makers. You still want a Living Will to clarify how you want medical decisions made.

Finally, if you have dependent children, you want to ensure you’ve made it as easy as possible for their care needs to be continued by the people you wish to, in the way you want. Without a plan, decisions around their care could be tied up for months, including access to the financial assets their caregivers would need to ensure they have what they need along the way.

The Benefits of Working With an Attorney

While you can create an estate plan without legal assistance, there are serious risks to the people you love if your plan is not completed, not updated after it’s been done once, or not completed correctly. The only guarantee for the people you love to have as much ease as possible is if you work with an experienced attorney specializing in estate planning, particularly Life & Legacy Planning. We understand what needs to go into a thorough and complete estate plan — as well as the potential pitfalls or issues that could arise due to your unique personal and family dynamics — so you can rest assured knowing everything is being taken care of properly before you embark on your trip.

We can advise you on other important documents such as Wills, Trusts, powers of attorney (POA), health care directives (HCD), and guardianship paperwork (for minor children) so you can make informed decisions about what you want to happen if you become incapacitated or die. All these items should be considered when creating an effective estate plan, especially when one or both parties travel outside their home country at any point.

Don’t Let a Lack of Planning Dampen Your Vacation Spirits!

Taking a few simple yet critically important steps now can save you and your family considerable headaches down the road if anything were ever to happen while on the road. Not only do we want you to enjoy each moment spent together, but we also want peace of mind knowing that whatever comes your way is handled according to your wishes!

We can help put a plan together now so you don’t forget about this vital task before packing up for your next adventure. Ensuring all your affairs are in order will ensure nothing stands in the way of you and enjoying time together! 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.

Tags Estate Plan, Personal Family Lawyer, Travel

Estate Planning

Turning 18? Don’t Skip These 3 Legal Must-Haves

Post author By Sara Thomas
Post date June 4, 2025
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With the arrival of summer, young people across the country are about to reach a key milestone: high school graduation. If you have a child claiming their diploma, now is the time to prepare them for life after leaving the nest.

Graduating from high school is a significant accomplishment. However, it comes with serious responsibilities that your child probably isn’t thinking much about right now. Once your child turns 18, they become a legal adult, and specific areas of their lives that were once under your control will be solely their responsibility.

While your child will now be a legal adult, you still have essential parental duties. Yet, if you don’t support your child in stepping into adulthood with legal documents to help both of you, it can be challenging and costly to help them in an emergency.

For instance, should your child get into a severe car accident and require hospitalization, you would no longer have the automatic authority to make decisions about their medical treatment or handle their financial matters. In fact, without legal documentation, you wouldn’t even be able to access his or her medical records or bank accounts without a court order.

To address this vulnerability and ensure your family never gets stuck in an unnecessary court process, have a conversation about estate planning with your kids before they move out or head off to college, and have them sign the following three documents.

01 | Medical Power of Attorney

The first document your child needs is a medical power of attorney. A medical power of attorney is an advance healthcare directive allowing your child to grant you (or someone else) the immediate legal authority to make healthcare decisions on their behalf if they become incapacitated and cannot make decisions themselves.

For example, the medical power of attorney would allow you to decide about your child’s medical treatment if they are knocked unconscious in a car accident or fall into a coma due to a debilitating illness.

Without a medical power of attorney in place, if your child suffers a severe accident or illness that requires hospitalization and you need access to their medical records to make decisions about their treatment, you’d have to petition the court to become their legal guardian. While a parent is typically the court’s first choice for a guardian, the guardianship process can be slow and expensive.

And due to HIPAA laws, once your child becomes 18, no one—not even parents—is legally authorized to access their medical records without prior written permission. However, an adequately drafted medical power of attorney will include a signed HIPAA authorization, so you can immediately access their medical records to make informed decisions about their treatment.

02 | Living Will

While the medical power of attorney allows you to make healthcare decisions on your child’s behalf during their incapacity, a living will is an advance directive that provides specific guidance. These are specifications on how your child’s medical decisions should be made, particularly at the end of life.

For example, a living will allows your child to advise if and when they want life support removed should they ever require it. In addition to documenting how your child’s medical care is managed, a living will also includes instructions about who should visit them in the hospital and even what kind of food they would want to have provided. For example, if your child is a vegan, vegetarian, gluten-free, or takes specific supplements, these are all things that should be considered and recorded in their living will.

03 | Durable Financial Power of Attorney

Should your child become incapacitated, you may also need the ability to access and manage their finances, and this requires your child to grant you durable financial power of attorney.

Durable financial power of attorney gives you the authority to manage their financial and legal matters, such as paying their tuition, applying for student loans, paying their rent, negotiating (or re-negotiating) a lease, managing their bank accounts, and collecting government benefits if necessary. Without this document, you must petition the court for such authority.

Start Adulthood the Right Way

Before your kids head out into the world, ensure they have the proper planning in place. By doing so, you are modeling good financial stewardship and setting them up immediately. Financial and legal illiteracy is an epidemic you can quickly address, starting with yourself and your family.

We can help you create these vital documents and facilitate a family meeting to discuss the importance of planning. We will begin what we hope will be a lifelong relationship with your children as they take this crucial first step into adulthood. Contact us today to get started.

Tags Estate Plan, Financial Power of Attorney, Living Will, Medical Power of Attorney, Personal Family Lawyer, Young Adult, Young Adult Estate Planning

Estate Planning

Why Business Owners Deserve More Than an Easy or Cheap Estate Plan

Post author By Sara Thomas
Post date May 28, 2025
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Picture this: you’ve just set up your estate plan using a quick and easy online DIY form or a budget-friendly legal service. Or, your financial advisor drafted it for you for a nominal fee while creating your financial plan. These options promise ease, convenience, and at a fraction of the cost of hiring a legal professional. The website assured you that in just 30 minutes, you could secure your family’s future. You click “submit,” pay the fee, or receive the documents from your financial adviser, and breathe a sigh of relief, thinking your affairs are now in order.

But if you’re a business owner, this might not be the all-encompassing solution it claims to be. If you didn’t work with a legal professional looking out for your interests, you likely missed something crucial—the connection between your personal estate plan and your business documentation. For business owners, an effective estate plan must include updating or creating key business documents. These elements ensure your business can smoothly transition in alignment with your estate planning goals – and that your loved ones won’t end up in court and conflict.

Why Easy or Cheap Estate Planning Falls Short for Business Owners

Estate planning is like crafting a legacy cookbook. While an easy and cheap one-size-fits-all recipe might suit basic personal matters, customization becomes essential when a business is involved. Think about it: your business isn’t just another asset—it’s a living entity with its legal structure, operational procedures, and relationships. It requires special handling in your estate plan.

Many business owners don’t realize (and no one tells them) that their personal estate and business governance documents must work harmoniously. You may have created a will or trust you’re happy with, but if your operating agreement contradicts these arrangements, your plans could unravel at the worst possible moment, often when it’s too late to do anything.

For instance, an LLC’s operating agreement often contains succession provisions that conflict with trust documents. When the operating agreement and trust aren’t properly coordinated, beneficiaries may face unnecessary legal battles after the business owner’s passing. So, business owners must ensure their estate documents integrate with their specific business structures. However, this integration does not happen automatically—it requires a deliberate alignment of both sets of documents.

The Critical Business Documents That Need Updating

When crafting your estate plan as a business owner, several key business documents require your attention:

Operating Agreements (for LLCs): These documents govern how your LLC functions and what happens when an owner dies or becomes incapacitated. They need specific provisions allowing for:

Transfer of your membership interest to your trust
Clear succession protocols following your death
Mechanisms for business continuity during transition periods
Buy-sell provisions that work alongside your estate plan

Corporate Bylaws (for Corporations): Similar to operating agreements, bylaws need provisions that align with your estate planning goals, including:

Stock transfer procedures that accommodate your estate plan
Management succession provisions
Emergency leadership protocols

Failing to update these vital business documents can lead to unintended consequences. Your business’s place in your estate plan isn’t just another ingredient—it’s the main course. When these documents aren’t aligned, the results can be costly and heartbreaking for the people you love most – and put your business in peril.

Real-World Consequences of Misalignment

Let’s consider a hypothetical example that illustrates the real-world consequences that can unfold when your business isn’t properly coordinated with your estate plan.

Tim owned a small manufacturing company with a comprehensive personal estate plan, but never updated his corporate bylaws after creating them. His estate plan directed his business interests into a trust for his children, with his brother serving as trustee until they became adults.

After Tim’s unexpected passing, his brother attempted to step in and manage the company as trustee. However, the corporate bylaws had no provisions recognizing trustee management. Instead, they used outdated language, giving decision-making authority to the original co-founder, who had left the business years earlier. The resulting legal confusion cost Tim’s family over $100,000 in legal fees and nearly bankrupted the business before the situation was resolved. Tim’s children inherited very little, between the legal costs and the loss of significant business assets.

This scenario plays out more often than you might think. When personal estate plans and business governance documents aren’t synchronized, the consequences can include:

Protracted legal battles among heirs and business partners
Business operations are grinding to a halt during critical transition periods
Tax complications that could have been avoided
Forced liquidation of business assets at unfavorable valuations
Irreparable damage to family relationships

However, none of this has to happen if you work with me to create a comprehensive estate plan, called a Life & Legacy Plan.

How to Create a Seamless Transition Plan

My Life & Legacy Planning^Ⓡ model supports you in updating your operating agreement or bylaws to ensure that your interests can be effectively transferred to a trust, preserving the business’s integrity and providing clear guidelines for successors. Here’s how I can help:

If you have already created an estate plan, I’ll conduct a thorough review of both it and your business governance documents. I’ll look for inconsistencies or gaps, particularly regarding what happens to your business interests upon your death or incapacity.

Next, I will ensure that your operating agreement or bylaws explicitly permit transfers to your trust or other estate planning tools. This seemingly small detail can make all the difference in whether your wishes are smoothly implemented. If you don’t have an operating agreement or bylaws, I can help you create them.

And then, I’ll help you create clear succession protocols in your business documents that mirror the succession plans in your Life & Legacy Plan. Who will lead the company? How will decisions be made? What powers will your trustee have regarding business operations? We’ll address all this and more.

In addition, it may make sense to implement a buy-sell agreement that coordinates with your Life & Legacy Plan. A buy-sell agreement can provide liquidity to your estate while ensuring business continuity for remaining partners or loved ones who want to continue the enterprise. After discussing your goals and desires for your business after you’re gone, I’ll counsel you on whether a buy-sell agreement is a suitable option.

Finally – and I can’t stress this enough – it’s crucial to know that this alignment isn’t a one-time event. As your business evolves and your estate planning needs change, both sets of documents should be regularly reviewed and updated to maintain harmony. This is so important if you want your Life & Legacy Plan to work when you and your loved ones need it to, and that’s why when you work with me, I have systems in place to ensure your plan and business documents are reviewed continuously.

How I Help You Protect Everything and Everyone You Love

To safeguard your personal and professional legacy, don’t settle for convenient or cheap solutions. Your business represents years of hard work, dedication, and vision—it deserves the same careful planning. When your business documents and Life & Legacy Plan work together, you create a seamless roadmap for your successors, minimizing conflict and maximizing the chances your business will continue to thrive.

Proper planning can save your loved ones and your business tremendous stress, expense, and heartache later. As a business owner, you want to save money and see a return on your investment. A Life & Legacy Plan is how to do that when planning for the future.

Take the first step towards peace of mind for you, your loved ones, and the business that you built. Schedule a complimentary 15-minute consultation and learn how I can help you create your personalized Life & Legacy Plan.

Tags Business Owner, Business Owner Estate Plan, Business Succession Plan, Estate Planning, Family Business, Small Business

Estate Planning

A Legacy of Honor: Estate Planning as a Lasting Tribute on Memorial Day

Post author By Sara Thomas
Post date May 21, 2025
No Comments on A Legacy of Honor: Estate Planning as a Lasting Tribute on Memorial Day

When we think about Memorial Day, we often picture parades, flags at half-staff, and moments of silence to honor those who gave their lives in service. But beyond ceremonies and traditions, Memorial Day invites us to reflect on legacy—on what we leave behind for those we love. One of the most powerful ways to honor the people and values that matter most is through thoughtful estate planning. It’s not just a legal exercise—it’s a profound act of love, remembrance, and responsibility.

Carrying Forward the Spirit of Sacrifice and Care

Memorial Day reminds us that sacrifice and service aren’t abstract ideas—they’re personal. Whether we’re honoring fallen heroes, remembering veterans, or reflecting on the resilience of our own families, we’re engaging with a legacy of care. Estate planning allows us to do the same—not in uniform, but through intentional decisions that ensure the people we love are protected and supported.

In my work, I often see families wanting to ensure that their values, wisdom, and hard-earned assets are passed down with intention. Estate planning provides that structure. It’s a quiet, lasting form of service to your loved ones—a promise that you’ll continue to care for them, even when you’re no longer physically here.

Asking the Right Questions: Who Will Carry On?

Memorial Day brings questions of legacy to the surface. Who will preserve our family traditions? Who will keep our stories alive? Similarly, estate planning asks:

Who will guide your loved ones through future decisions?
Who will manage your affairs if you’re unable to?
Who will ensure your values are honored in the way your assets are used?
Who will maintain the bonds that hold your family together?

These aren’t just logistical questions—they’re emotional ones. They go to the heart of how we want to be remembered and how we hope to protect the people who matter most.

With this understanding of why estate planning matters to parents, let’s explore the specific components of a comprehensive plan designed to protect and nurture loved ones.

Two Key Tools to Build a Legacy

A will is one basic component of an estate plan. It’s an opportunity to thoughtfully distribute meaningful possessions and explain the reasoning behind these choices. It might include family heirlooms passed down with intention or collections given to children who share their parents’ passions. Beyond material possessions, a will names guardians for minor children—perhaps the most crucial decision a parent can make in their estate plan. This isn’t simply a legal designation but a thoughtful selection of who will continue raising children with aligned values.

A trust offers even more sophisticated ways to extend care. Think of a trust as a recipe with detailed instructions—just as a mom might write down her famous recipe with specific directions. A trust provides similarly detailed guidance about how assets should be managed and distributed. For instance, parents might establish a trust that provides funds for education with specific provisions about how the money should be used. They might include age-based distributions, ensuring children receive increasing responsibility for their inheritance as they mature, just as they would gradually give them more independence in other aspects of life.

While these two components provide a good starting point, trusts deserve special attention for the unique protection and guidance they offer.

Trusts: A Shield for the Future

Trusts provide protection—just as our servicemembers do. They shield your assets from unnecessary taxes, poor decision-making, or outside threats.

For blended families or those with unique dynamics, a trust ensures your wishes are carried out with precision and fairness. You can provide for both a current spouse and children from a prior relationship, ensuring no one is left out or harmed by default legal rules.

For children with special needs, a trust can protect eligibility for critical benefits while still offering support. For children who may need guidance managing money, a trust provides that structure. In all these cases, a trust isn’t just a financial tool—it’s a personal legacy of care.

Perhaps most importantly, a properly structured trust doesn’t just transfer wealth; it transfers wisdom. Through thoughtful provisions and guidance letters that accompany the trust document, parents can share their perspectives on money management, their hopes for how assets will improve their children’s lives, and their vision for the family’s future. Trusts can also help pass along meaningful possessions and explain the reasoning behind these choices.

Understanding the protective power of trusts leads us naturally to consider the broader picture of how a truly effective estate plan goes beyond legal documents to capture and transmit a parent’s deepest values and wisdom. Whether it’s a note explaining the importance of a family heirloom or provisions outlining charitable giving, your trust can help tell your story.

The Life & Legacy Planning Difference

While standard estate planning focuses primarily on asset distribution, parents often want something deeper—a way to pass along values, stories, and wisdom alongside material possessions. The Life & Legacy Planning process that I guide clients through begins with reflection on values and goals, not just assets. Many are surprised by our initial conversations, expecting to jump right into discussions about homes and investments. Instead, we start by talking about what matters most, what values they hope their children carry forward, and what life lessons they want to share. It feels less like legal planning and more like crafting advice for the future.

I help create customized plans that align with unique family dynamics and priorities. For example, if you have a family heirloom with significant emotional value—perhaps a grandparent’s recipe book or collection of letters—I can help establish a trust that specifies not just who receives these items but why they matter and how you hope they’ll be treasured.

One special part of this process is the Life & Legacy Interview—a recorded message where you share your story, your reasoning behind your decisions, and your love. Families often find this to be the most treasured part of their estate plan. On a day like Memorial Day, when we pause to remember, having a voice from the past to guide and comfort can be a profound gift.

Memorial Day: A Time to Reflect—and Plan

This Memorial Day, as we honor those who made the ultimate sacrifice, consider the legacy you are building. Estate planning allows you to extend your values, your love, and your protection far beyond your lifetime. It’s a modern form of service—not just to your country, but to your family.

Flowers fade and flags come down, but a well-prepared estate plan endures. It gives your family peace, clarity, and support in times of uncertainty. It preserves your story, your intent, and your heart.

If you’re ready to take the next step in securing your legacy, I’m here to help. Together, we can craft a personalized Life & Legacy Plan that reflects your values and ensures your loved ones are cared for—today and always.

Schedule a complimentary 15-minute consultation to begin your estate planning journey. This Memorial Day, honor your past and protect your family’s future.

Tags Estate Planning, Family Legacy, Legacy of Honor, Memorial Day

Estate Planning

The Death Tax May Die—Now What?

Post author By Sara Thomas
Post date May 14, 2025
No Comments on The Death Tax May Die—Now What?

Have you ever worked your entire life to build something valuable, only to worry about a significant portion being taken away after your death, and before it gets to the people you love? That’s the reality many American families face when considering the estate tax – sometimes referred to as the “death tax.” A legislative proposal is gaining momentum that could significantly alter the way wealth is transferred between generations. But what would these changes mean for you and your loved ones?

Let’s explore the potential impact on you and those you love.

The Estate Tax: A Century-Old Tradition at a Crossroads

Estate taxes have been an integral part of American taxation for over a century, yet they remain one of the most contentious elements of the tax system. The current estate tax applies to estates valued above a certain threshold, meaning that when someone passes away, the government may take a percentage of their assets before they are passed on to the next generation.

Think of it this way: imagine spending decades cultivating a beautiful garden, only to have someone come in at the end and claim rights to some of your most prized plants before your children can enjoy them. That’s how many families perceive the estate tax – as an additional burden during an already difficult time.

The Death Tax Repeal Act of 2025 (“DTRA”) aims to eliminate this tax entirely, which supporters argue would remove what they see as unfair double taxation. After all, these assets were typically built with income that was already taxed once during the owner’s lifetime. Why, they ask, should it be taxed again simply because of death?

The potential repeal brings both opportunities and challenges that deserve careful consideration. Let’s explore what this could mean from different perspectives.

Weighing the Benefits and Drawbacks for American Families

Except for one year in 2010, when the estate tax rate was zero, the federal estate tax has ranged from as low as 10% in its first year of introduction (1916) to as high as 77% (1941-1976). The current federal estate tax rate is 40% on assets over $13.61 million. In 2026, unless Congress acts, the exemption will revert to approximately $6–7 million per person, roughly half the current amount, adjusted for inflation. The estate tax rate on assets passed on at death above that amount will be 40%.

For individuals with highly appreciated or illiquid assets (such as business owners or landowners), the repeal could provide breathing room. The estate tax can create an impossible situation: either sell portions of the business or land to pay the tax, or take on massive debt to the IRS. Either way, the family legacy suffers.

Critics of the repeal point to essential considerations on the other side. The estate tax generates revenue that helps fund essential government services, including education, infrastructure, and social programs, which benefit all Americans. If this revenue stream disappears, that funding will need to come from somewhere else, potentially from taxes that affect more middle and working-class families.

Additionally, some economists worry about the long-term effects on wealth concentration. Without an estate tax, extremely wealthy families could accumulate and transfer wealth across generations with fewer limitations, widening existing economic divides.

As you think about your own situation, consider this: What matters most for your loved ones’ future? Is it maximizing the assets you can pass down, or ensuring broader economic opportunities for all? There’s no perfect answer, and reasonable people can disagree on the right approach.

How the Repeal Could Change Your Estate Planning Strategy

If the DTRA passes, it would dramatically change how many Americans approach their estate planning. Let’s explore what this might mean for your personal strategy:

Simplified Planning for Larger Estates: For those with estates valued above the current exemption threshold, planning could become significantly simpler. Many complex strategies, explicitly designed to minimize estate tax exposure, such as certain types of trusts, family limited partnerships, or life insurance arrangements, may become unnecessary.

Focus Shift to Income Tax Planning: Without estate taxes to worry about, the focus would likely shift to income tax planning for heirs. This means more attention to basis step-up rules, timing of asset transfers, and other strategies to minimize capital gains taxes when assets are eventually sold.

More Flexibility in Charitable Giving: Many wealthy individuals currently incorporate charitable giving into their estate plans partly for tax benefits. Without estate tax incentives, charitable giving patterns might shift, allowing decisions to be based purely on philanthropic goals rather than tax advantages.

What does this mean for you? If your estate might exceed the current exemption threshold (approximately $13.99 million for individuals or $27.98 million for married couples for 2025), now is the time to connect with me to discuss potential scenarios. Even if your estate falls below these thresholds, changing tax laws can have ripple effects on overall estate planning best practices.

Preparing for an Uncertain Future with a Life & Legacy Plan

While the DTRA represents a significant potential change, it is essential to remember that tax legislation is notoriously difficult to predict. Bills can undergo substantial changes during the legislative process, and what ultimately passes may look very different from what was initially proposed.

Given this uncertainty, how should you approach your estate planning? Here are some practical steps to consider:

Review your current estate plan with me so we can discuss how potential tax changes affect your specific situation.
Explore “what if” scenarios. When you work with me, we’ll examine the “what if ” scenarios to ensure your plan remains flexible enough to adapt to various legislative outcomes.
Consider your true legacy goals beyond tax minimization. What values, assets, and lessons do you most want to pass on to future generations?
Communicate openly with loved ones who might be affected by these potential changes.

While traditional estate planning often focuses narrowly on documents and tax avoidance, my proprietary Life & Legacy Planning Process takes a more comprehensive and adaptable approach. Unlike conventional estate plans that sit in a drawer gathering dust, Life & Legacy Planning includes regular reviews to ensure your plan evolves as tax laws, your assets, and your family dynamics change. I won’t just help you create documents; I’ll be your trusted advisor throughout your lifetime, proactively reaching out for updates and providing education so you fully understand what will happen to your loved ones and assets if you become incapacitated and when you die. With Life & Legacy Planning, you’ll have peace of mind knowing your plan will actually work when your family needs it most, regardless of how tax laws might change in the future.

How I Can Help You Move Forward with Confidence

I understand how tax legislation, such as the DTRA, can impact your loved ones’ financial future. Whether this act passes or not, having a comprehensive Life & Legacy Plan ensures your wishes are honored, your loved ones are protected, and your plan works the way you want, regardless of changing tax laws. Don’t leave your loved ones’ future to chance or uncertainty. That’s why when you work with me, we’ll start with 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. Then, together, we’ll create a plan for you that prepares your loved ones for whatever lies ahead. Contact us today to get started.

Tags Asset Protection, Death Tax, Death Tax Repeal 2025, Estate Plan, Estate Planning, Estate Taxes

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.

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
No Comments on Gene Hackman’s Estate: A Wake-Up Call

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

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