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Category: Estate Planning

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Estate Planning

Want To Grow Wealth? Warren Buffett’s Unexpected Investment Advice

If you are going to take investment and estate planning advice from anyone, Warren Buffett is likely one you want to consider. As one of the most successful investors in history, his track record speaks for itself. However, his wisdom goes beyond picking stocks and making money.

At this year’s Berkshire Hathaway annual shareholder meeting, Buffett shared several pieces of financial advice but also provided insights on the importance of personal growth and estate planning when seeking to grow wealth.  While many of us may feel overwhelmed by the thought of estate planning or building our wealth, Buffett’s advice reminds us of two key but simple steps we can take to create financial and generational wealth.

Focus On Your Human Assets To Build Your Wealth And Your Legacy

In almost every interview Buffett provides, he stresses the importance of investing in yourself.  “The best thing you can do is to be exceptionally good at something,” said Buffett. “Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you. So the best investment by far is anything that develops yourself, and it’s not taxed at all.”

Your earning power is the greatest determiner of your financial well-being, and the one thing you can count on no matter what’s happening in the external economic environment. If you have a highly valuable skill, and you know how to get paid well for that skill, market your services, and sell your services to those who need them, you’ll never have to worry about money. That doesn’t mean you won’t worry about money; but it does mean you don’t have to worry about money.

If you don’t have a highly valuable skill or if you have a skill that will soon be replaced by AI, that’s the first place for you to invest. You may need to uplevel your skills to be more human or relational so you can use AI, but not compete with it, and all that may take investment. Don’t shy away from investing in additional training to improve your service, or even get the additional support to learn to market and sell your services. Those investments will always pay off.

Investing in yourself not only leads to financial success, but also personal fulfillment and a clear sense of purpose that becomes your legacy. At the end of the day, you likely won’t be remembered for your financial success.. Even Warren Buffett, who is renowned for his wealth and investment skill, is even more often acclaimed for his wisdom, humility, and generosity than for his money. 

Raising Kids Well Is Key In Effective Wealth Planning

During a Q&A session with an estate planning attorney, Buffett stressed the importance of talking to your children about your estate planning well before your death. Buffett stated, “If the children are grown when the Will is read to them and it’s the first they’ve heard about what the deceased thought about things, the parents have made a terrible mistake.”

Leaving your family in the dark about your personal and financial wishes until you die or become incapacitated due to an accident or illness can lead to large amounts of confusion and conflict among family members. If you don’t want to leave a mess, don’t wait to talk to the people you love.

As we recommend and build into our Life & Legacy Planning Process, Buffett recommends involving your heirs in the planning process. By doing so, you can ensure that everyone is on the same page and that your wishes are understood and respected far in advance. Additionally, this provides an opportunity to discuss your values and beliefs with your heirs, which can have a lasting impact on their lives.  Buffett expressed that if you really want your heirs to act responsibly with their inheritance, you must live out your values and instill them in your heirs.

How To Start The Conversation About Estate Planning With Your Heirs

So how do you start the conversation about estate planning with your heirs? We recommend you do it directly and with an invitation to meet with you and your lawyer together. This is something we love to do with our clients, and we’d love to support your family in this way too. You might say something like: “I want to make sure that we’re all taken care of, both now and in the future. That’s why I’d like to talk to you about my wishes for our family resources, and how we can ensure that everything is handled smoothly when I can’t be here.”

If your loved ones aren’t immediately open to having a conversation about estate planning with you or are resistant to how you want your assets managed after your death, don’t worry. Talking about estate planning can be uncomfortable at first, but as you normalize the topic, the conversation will become easier and more open.

Or, if you are worried that filling your heirs in on what they’ll receive will cause harm, please call us. This is a place we can really help by supporting you to get prepared to have a conversation with your heirs and also supporting them to be ready to receive their inheritance.

When you talk money and inheritance with your heirs during your lifetime, you have the opportunity to truly pass on not just the money, but your values too. If you wait until you are incapacitated or have died, it’s simply too late.

Finally, if you are the future heir of a parent who has not yet talked with you about estate planning, you can jumpstart the conversation by getting your own planning done, and then talking with your parents about the choices you made, why you made them, and letting them know you’d like to help them feel comfortable talking to you about the choices they are making. If you aren’t sure how to handle any of this, please reach out.

Thoughtful Guidance To Build Your Personal And Financial Life And Legacy

Warren Buffett’s advice on building and preserving wealth is timeless and valuable no matter the size of your family or your estate. By involving your heirs in your estate planning and investing in yourself, you can set yourself and your loved ones up for long-term financial success and create a legacy that spans not only through your life but through the generations that follow you.

If you aren’t sure where to start or how to talk about your wishes with your family, give me a call. I’d be happy to guide you and your loved ones through the process of creating an estate plan that focuses on the needs and hearts of everyone it involves, so you can build a life you love today knowing that your loved ones and your community will be impacted by your legacy for years to come.

To learn more about my heart-centered approach to estate planning, schedule a complimentary 15-minute call today.

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 Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

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

Categories
Estate Planning

Why “Just a Will” Is Never Enough

Wills have a reputation as the number one estate planning tool, in small part thanks to Hollywood’s dramatic “reading of the Will” scenes (which rarely happens in real life) to characters plotting how best to defraud their billionaire uncle’s Will in order to inherit his lavish estate.

Although Wills are a key part of your estate plan, relying on a Will alone won’t solve your estate planning needs. Instead, using just a Will to plan your final wishes is likely to leave your loved ones with an expensive mess that won’t distribute your assets in the way you intended. 

What’s more, a Will alone won’t ensure that you’re taken care of in the event of incapacity, and contrary to what you might think, relying on only a Will actually guarantees that your family will need to go to court when you die.

If you don’t want to leave your family with a mess if something happens to you, it’s important to know how a Will works and when it can be used to benefit you and your family.

What Exactly Is a Will and How Does it Work?

A Will is a written document that directs how the creator of the Will wants their possessions disposed of after their death. The creator of the Will is called the testator or testatrix. In your Will you can name someone you trust to manage the distribution of your assets, called your personal representative or executor. You can also direct what you want to have happen to your property, what charitable gifts you want to make, and who will receive them.

A Will can be a complex document or a very simple document. With that said, a Will isn’t a legally binding document unless it’s executed according to the laws of the state where you reside. In general, you need to sign your will in front of a witness, and sometimes a notary. Every state has different laws for the creation of a Will, it’s important to consult with an experienced estate planning attorney (like me) to create your Will rather than trying to write your own.

A Will Requires Probate Court

One of the biggest estate planning myths I hear from clients is the belief that by having a Will, their loved ones won’t need to go to court after they die.

This is, sadly, the opposite of the truth.

If you use only a Will as your main method of estate planning, you actually guarantee that your loved ones will go to court after you die. A Will is required by law to go through the court system called probate before any of your assets can be distributed. In fact, a will is only effective within the probate court.

Once your Will is admitted to the court after your death, your personal representative or executor will be given official authority to move your assets under the court’s supervision. This ensures your property is distributed according to your wishes and that the court can intervene if there are any disputes over who gets what.

While court oversight can be helpful if there is any confusion or disagreement about your estate, the probate process is long and expensive. Depending on your state, the process can take about 6 months for small estates, or 12 – 18 months (sometimes even longer) for most estates.

Due to the length and complexity of the process, going through probate can easily cost your family tens of thousands of dollars. Some states even require that probate cost a certain percentage of your estate’s value.

In addition, because probate is a public court proceeding, your Will becomes part of the public record upon your death, allowing everyone to see the contents of your estate, who your beneficiaries are, and what they’ll receive. Unfortunately, scammers could use this information to try to take advantage of young or vulnerable beneficiaries who just inherited money from you.

A Will Does Not Apply to All of Your Assets or All of Your Needs

A Will actually only covers certain items of your property, including any property owned solely in your name and any property that doesn’t have a beneficiary designation. It does not cover property co-owned by you with others listed as joint tenants or owned as marital property, meaning you can only give away your share of any property you own with others, not the entire property.

Any assets that have a beneficiary designation, like retirement accounts or life insurance, are not controlled by your Will at all, but will be paid out to the person listed as your beneficiary on each account. Because of this, it’s especially important to make sure your account beneficiaries are up to date, and named in a way that will not result in unintended consequences.

In addition, a Will has no power until you die, so you can’t use it to give someone you trust the power to make decisions for you if you’re incapacitated due to illness or injury. Even if you named someone in your Will to manage your estate, or watch over your children, that person will have no authority to do so while you’re alive.

Don’t Just Get a Will, Get an Estate Plan

With all the issues that using a Will for estate planning can create, you might be wondering why a Will is even used at all. The thing is, a Will isn’t the one-and-done solution that most people are led to believe.

Instead, a Will should be used as a piece of your overall estate plan, not as the entire plan itself.  And ideally, your Will shouldn’t even need to be used at all.

An estate plan isn’t just one or two documents – it’s a range of tools and coordinated planning that makes sure everything and everyone you love is taken care of.

By using better tools like a Trust instead of a Will as your main tool for estate planning, you can direct what happens to your property while avoiding probate court entirely (aside from very limited filings) and ensuring the people you trust can step in and manage your assets immediately if you become incapacitated because of an illness or injury. In addition, any assets you put in the name of your Trust can remain entirely private, meaning the court and the public will never know what you own or who will inherit it after you’re gone.

When using a Trust-based estate plan, you’ll still have a Will, but your Will should only need to serve as a safety net to make sure that any assets that are accidentally left out of your Trust at your death are added back into your Trust.

Even more important than both a Will and a Trust, is an inventory of your assets so your family knows what you have, where it is, and how to find it when you become incapacitated or die. Without an inventory of your assets, your family will be lost when something happens to you. A comprehensive inventory updated throughout your lifetime is a critical, and often overlooked, piece of an estate plan that is not “just a Will”.

Protect Your Family and Make a Plan

If you’re ready to see how having an estate plan for your family is different than having “just a Will,” contact us today. We’ll review an inventory of everything you have and everyone you love, and together look at what would happen to your possessions and loved ones when something does happen.  Then, I’ll help you develop a plan to make sure your loved ones are taken care of when you can’t be there and that your plan works for you, and for them, exactly as you want it – at your budget and within your desires. Most importantly, I don’t just create documents – I guide you and your family through every step of the process, now and at the time of your passing.

To get clear on what you really do need for yourself and the people you love, schedule your complimentary 15-minute call today.

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 Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

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

Categories
Estate Planning

Create a Stronger Blended Family Through Estate Planning

Blended families were once considered “non-traditional” families. Today, blended families have become just as common as non-blended families. Currently, 52% of married couples (or unmarried couples who live together) have a step-kin relationship of some kind, and 4 in 10 new marriages involve remarriage.

If you’re part of a blended family, you’ve probably recognized the extra layer of complexity that comes with planning for your family’s needs and accommodating the many relationships that exist between step-parents, step-kids, and step-siblings. Topics that might be straightforward for a “traditional” family – such as where to spend the holidays or who gets the old family car  – are more complex.

Feelings tend to be more sensitive, as the person in a “step” role may feel self-conscious about their place as the “outsider” of the family, whereas one parent’s children may feel put out by the addition of a new step-parent, step-sibling, or half-sibling when their mother or father remarries.

In a blended family, you work hard to navigate these complexities to keep the family unified and happy. But what you might not know is that our laws for what happens if you become incapacitated or die are still very much based on the traditional family model. Without planning for your blended family in advance, they will likely end up in court and conflict.

What Estate Law Says About Blended Families

Every state has different provisions for what happens when you become incapacitated or die, and the laws of the state where you become incapacitated or die may or may not match your wishes. What’s more, even though you may see your step-family members the same way as your blood relatives, the law does not.

For example, in Colorado, if you are survived by a spouse, your surviving spouse would only receive a part of your estate if you have living children (or parents!), and your living children or parents would receive the rest. The amount your spouse receives is variable based on the number and ages of your children.

In California, all community property assets would go to your surviving spouse, and separate property assets would be distributed partially to a surviving spouse and partially to children, if living, in amounts depend on the number of surviving children.

It can get very complex in Texas, depending on whether your assets are separate or community, and whether you have children from the marriage, no children from the marriage or living parents or siblings.

As you can see, what’s true for what happens when you die may not result in the outcome you want for your loved ones, especially in a blended family situation. That’s why it’s so important to create an estate plan for your blended family well in advance, and I encourage you to discuss your plan with the members of your family to avoid hurt feelings, confusion, or pain in the future.

Avoid Conflict in Your Blended Family Through Open Communication

Estate planning is often seen as a highly private affair, but it doesn’t have to be, and oftentimes, shouldn’t be. In the case of a blended family, having open conversations with your loved ones about your estate plan and your goals for the family can save them from hurt feelings and even court battles in the future.

Like all families, how you plan for your blended family will depend entirely on your family dynamics, your family members’ situations, and your own personal values for how an inheritance should (or shouldn’t) be received and what kind of legacy you want to leave behind.

Maybe you have step-kids and biological kids but want all of your children to inherit an equal share from you and your spouse. Perhaps there’s a large age gap between your step-kids and biological child, so you want to make sure that your youngest has the financial support they’ll need if something happens to you, whereas the older children are able to support themselves.

A person you have a step-relationship with has no right to inherit from you under the law, unless you put your plan in writing.

You don’t need to give away every detail of your Will or Trust, or tell everyone who you named to make decisions for you if you’re incapacitated. Instead, have an open conversation about the general goal of your estate plan, such as wanting everyone to have an equal share, or that you want to provide more for your biological children because your step-children will already receive a full inheritance from their other parent.

By taking the mystery out of your estate plan goals, your step-children will feel included in the discussion and feel like they are knowledgeable about your plan rather than feeling hoodwinked or hurt if they find out later that your plan doesn’t align with the expectations they created for it in their minds.

Most importantly, let the people in your life know you value and love them, and that no matter how they’re related to you, you care about them and want them to inherit not just material things from you, but also your values, stories, and legacy.

Create More Than a Plan, Create a Family Legacy

To make sure your wishes for your blended family are followed in the event of your death or incapacity, it’s essential to have a well-crafted estate plan created by an attorney experienced in serving blended families.

I know all too well the importance of planning for blended families and can help you navigate your options and desires for your family’s plan. I take the time to really get to know you and your family’s unique situation and educate you about what exactly will happen to your family under the law if something happened to you right now, so you can make confident decisions about what’s right for your family. I recognize that your material possessions are only a small part of a successful estate plan. What will really matter to your family members, no matter how they became your family, is your legacy.

Instead of leaving your family a mess to be battled over in court, leave your family an example of financial wellness, of a plan filled with personal values and family history.

To do this, I include what I like to call a Family Legacy Interview with all of my estate plans. During this interview, I give you the opportunity to leave your most important assets – your values, stories, and heart – to your family in a meaningful way that they’ll cherish for years after you’re gone.

And for a blended family, the Family Legacy Interview can be even more valuable because it gives you the opportunity to really speak to your loved ones about the plan you created for them and how much you value the place they hold in your heart.

If you want to protect your blended family from a court battle and emotional conflict, contact us today to schedule a complimentary consultation.

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 Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

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

Categories
Estate Planning

Leaving Your Pet in Your Will Won’t Protect Them – Do This Instead

There is a special bond that exists between a pet owner and their pets. To many pet owners, our furry friends aren’t just a pet – they’re a loved and important part of our families. So if you’re thinking about how best to provide for your family after you die or if you become incapacitated, it makes sense for your beloved pet to be a part of the plan.

You want your pet to continue to have the kind of love and care you provided during your life, but estate planning for furry friends requires a little more thought than you might expect. 

A Will Won’t Cut It

While you see your pets as part of the family, under the law a pet is considered personal property, just like your money, furniture, and clothes. Because of this, you can’t actually leave money or possessions to your pet directly through your Will or Trust. Even if you try to leave money directly to your pet in your Will, the money will instead skip your pet and pass to the beneficiaries you named to receive the remainder of your possessions. Or, if you didn’t name anyone else, the court will give your possessions, including your pet, to your next of kin, as determined under the law.

Worst of all, the person that receives your pet and money for its care through your Will has no legal obligation to use that money for your pet’s care or to even keep your pet at all. That’s why it’s important to work with an estate planning attorney who knows the proper way to plan for your pet, so that when you die or if you become incapacitated, your beloved companion won’t end up in an animal shelter or given away to anyone you wouldn’t want raising your beloved familiar.


A Will Provides No Guarantees For Their Future

Because you can’t leave money to your pet directly, your first thought might be to leave your pet and money for its care to someone you trust through your Will instead. While this is an option, it’s not guaranteed to work.

That’s because the person you name as the beneficiary of your pet in your Will has no legal obligation to use the funds you leave for your pet’s care for that purpose. Even if you leave detailed instructions for your pet’s care, there is no law holding the beneficiary to accept the responsibility of caring for your pet or stopping them from changing their mind in the future after the court probate process is finished.  

You might believe that the person you’d leave your pet to loves them and would never think of abandoning them.

Even if this person is committed to caring for your pet, you cannot predict what circumstances might occur in the future that could make it impossible for them to provide for your pet for your pet’s full lifetime.


A Will Isn’t Fast Enough

The other issue a Will creates for your pet is that a Will is required by law to go through the court process known as probate before any of your property can be distributed to the people you’ve named, and of course, it only operates in the event of your death, not your incapacity. 

The probate process itself can take months or even years to complete.  During that time, your pet could be passed around between family members and friends, who may even argue over who should care for it.  In the worst-case scenario, no one may even think to check in on your pet regularly while the court process is unfolding.

Plus, a Will only goes into effect upon your death, so if you’re incapacitated by accident or illness, it would do nothing to protect your companion. This leaves your pet in limbo and vulnerable to being rehomed to someone you would not have chosen or wanted to care for your pet. In the worst scenario, your pet could be surrendered to a shelter by the time everything gets figured out.

Provide Long-Lasting Care for Your Pet Through a Pet Trust

In order to be completely confident that your pet is properly taken care of and that the money you leave for its care is used exactly as intended, ask us to help you create a Pet Trust.

By creating a Pet Trust, you can lay out detailed, legally binding rules for how your pet’s chosen caregiver (the trustee) can use the funds you leave for your furry friend. And unlike a Will, a Pet Trust does not go through probate, so it goes into effect immediately in the event you become incapacitated or pass away, whereas a Will requires the court process called probate to take place before any decisions can officially be made about your pet.

In a Pet Trust, you may choose the trustee as you would a guardian for your child, keeping in mind that person’s living arrangements, health, allergies, and lifestyle. Additionally, you can name backup trustees who will receive your pet and any funds left for them if the first person you chose as trustee declines to take your pet or isn’t able to care for them in the future. To add even more certainty to your pet’s future, you can name multiple trustees for your pet. In this way, you’d have two people invested in the care of your pet who can see that the money you leave for its care is used wisely. 


Do Right By Your Pet

Don’t leave your beloved pet’s future up to chance. Let us help you create a Pet Trust that will provide for your furry friend’s long-term care and be there for your pet and your decision-makers when you cannot be.

At our firm, we can help you create a legally binding Pet Trust that outlines detailed rules for how your pet’s chosen caregiver can use the funds you leave for their care. Unlike a Will, a Pet Trust doesn’t go through probate, which means it goes into effect immediately if you become incapacitated or pass away. Finally, all of the care decisions and financial distributions for the care of your pet will happen in the privacy of our office, in the event of your death or incapacity. We’ll guide your decision-makers about how and why you made your decisions, and how they need to care for your pet to receive distributions. We’ll be there to ensure the care of your pet happens as you would want it. And, while that may seem excessive for some, we have many clients who care that much about the well-being of their pets and want to ensure their care is handled as they want. Contact us today to schedule a consultation and ensure you’re doing right by your pet.

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 Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. 

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

Categories
Estate Planning Trusts Wills

Estate Planning Before You Travel

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 why you need to think about your estate plans before you travel. 

  • An estate plan ensures 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 where 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, and with your indicated desires for your care at the forefront.
  • Without an estate plan in place, 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 taken care of properly 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 because you are married, you don’t need an estate plan. 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 making medical decisions for you, or even potentially adding in additional decision-makers. You still want a Living Will to give clarity on how you want medical decisions made for you. 

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 want, in the way you want. Without a plan in place, 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 properly. The only real 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, and particularly Life & Legacy Planning. As a Personal Family Lawyer® firm, 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. 

As a Personal Family Lawyer®, 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 based on what you want to have 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 will be traveling 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 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 that you don’t forget about this important task before packing up for your next adventure. Making sure all your affairs are in order will ensure nothing stands in the way between you and enjoying time together! Contact us today to get started.

This article is a service of Sara Thomas, Personal Family Lawyer®. We do not 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 Family Wealth 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. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge. 

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

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Franklin, TN 37064

Office: (615) 576-5065

Email: info@augustlawpllc.com

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Estate Planning Trusts Wills

Why Everyone Needs to Keep Their Estate Plan Updated

Why Everyone Needs to Keep Their Estate Plan Updated

As the world and its laws continue to evolve, everyone needs to keep their estate plans up to date. An estate plan is a set of documents, such as a will or trust, that dictate how assets will be distributed upon death or incapacity. An individual’s current legal and financial situation should be considered to create a comprehensive estate plan tailored specifically to their needs.

Ensure Your Wishes Are Respected

The primary reason to update an estate plan is to ensure that an individual’s wishes are respected upon death. For example, suppose an individual has recently acquired valuable property or has had changes in family structure (such as marriage or children). In that case, updating the documents that outline how assets should be distributed is important. If the documents are not updated, this could lead to disputes between family members and legal complications when probate occurs. Additionally, if laws change at the state or federal level, those changes need to be incorporated into the existing estate plan to remain valid and effective

Ensure Your Loved Ones Are Protected From Tax Implications

Another reason for updating an estate plan is for future tax planning purposes. Without proper planning and asset allocation, taxes can significantly reduce the amount that beneficiaries receive after one’s death. Additionally, some states have transfer taxes on certain assets (such as real estate), which must be factored into one’s estate planning decisions. In addition, changes in Federal tax law may affect whether other taxes, such as capital gains tax, applies at the time of death or while transferring assets during life – thus providing additional incentive for individuals to review their plans regularly with their advisors and make necessary updates when necessary

Ensure Your Medical Decisions Are Handled With Care

Estate planning also encompasses contingency plans in case of incapacity due to illness or injury – commonly referred to as disability planning. This means creating end-of-life documents such as Advance Health Care Directives which list specific instructions about medical treatments that should be administered if certain conditions arise – such as if a person suffers from dementia or a traumatic brain injury and can no longer make decisions on their behalf. This planning can provide peace of mind knowing that an individual’s wishes will be respected even if they cannot make decisions themselves due to illness or injury. 

Ensure You Leave a Legacy For Your Loved Ones

Finally, updating an estate plan allows people to express gratitude for those who have helped them over the years – whether it be through providing advice on financial matters or being there simply by offering emotional support during difficult times – by including them in a legacy interview with our firm. Specific instructions can also be included in your plan regarding how charitable donations should be handled after death – enabling individuals who wish to donate part of their wealth to leave behind a lasting legacy that furthers causes they believe in long after they pass away.

Keep Your Estate Plan Up-To-Date

In conclusion, having an up-to-date estate plan helps ensure that your wishes are respected upon incapacity or death; protects you from unnecessary taxes; helps with disability planning; and allows you the chance to express appreciation towards those who have had a positive impact on your life while still alive. Therefore, estate plans should consider current circumstances and anticipate future events to avoid any potential problems. As your Personal Family Lawyer, we hold regular reviews of your estate plan through the stages of change in your life or every three years. Contact us today with your questions about your current plan and if you need an update.

This article is a service of August Law, PLLC, Personal Family Lawyer®. We do not 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 Family Wealth 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. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge. 

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.

400 Sugartree Lane, Suite 520

Franklin, TN 37064

Office: (615) 576-5065

Email: info@augustlawpllc.com

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Your Rights As The Parent Of A Young Adult — What You Need To Know When A Medical Crisis Hits

Your Rights As The Parent Of A Young Adult — What You Need To Know When A Medical Crisis Hits

As a parent, you are quite accustomed to managing your children’s legal and medical affairs, as circumstances require. If your child requires urgent medical attention while away from you, a simple phone call authorizing care can do the trick. But what happens when those “children” turn 18, now adults in the eyes of the law, and need urgent medical attention far from home?

The simple fact is that the day your child turns 18, he or she becomes an adult and has the legal rights of an adult. This means that you lose your prior held rights to make medical and financial decisions for your child unless your child executes legal documents giving you those rights back. Without the proper legal documents, accessing medical information and even being informed about your adult child’s medical condition can be difficult and in some cases, impossible.

When sending kids off to college, it is crucial to consider the legal implications of an accident or medical emergency on your ability to stay informed and participate in important decision-making for your young adult child. Medical professionals are responsible for following the Privacy Rule of the Health Insurance Portability and Accountability Act (HIPAA), which ensures medical privacy protection for all adults. Once your child turns 18, they are (from a legal perspective) no more attached to you than a stranger, making communication about medical issues tricky if your child is incapacitated and not able to grant permission on their own.

In most states, these three legal documents can make all the difference when a medical crisis strikes and your young adult child is far from home. When utilized together, they can ensure a parent or trusted adult be kept in the loop about care and treatment when a child over the age of 18 experiences a medical event while they are away at college, traveling, or living far from home. As with most legal documents, the law varies from state to state, so be sure to seek out the counsel with us, your Personal Family Lawyer® to determine which forms suit your situation best.

HIPAA

Essentially like a permission slip, this authorization allows your adult child to specify who is allowed access to their personal medical information. Some information can be specifically withheld, such as drug use, sexual activity, and mental health issues so that additional privacy can be protected if desired.

Medical Power Of Attorney

Designates an agent to make medical decisions for the young adult. This could be you, as the parent or another trusted adult. Each state has different laws governing medical power of attorney, requiring different forms. Be sure to check with us, your Personal Family Lawyer® to be sure you are following the laws of your state and the state where your child resides.

Durable Financial Power Of Attorney

Allows the parent or another trusted adult to take care of personal business if the adult child cannot do so. This form would allow the parent to take care of such important tasks such as signing tax returns, paying bills, and accessing bank accounts for the incapacitated adult child. A durable power of attorney is powerful and gives broad access to sensitive financial and legal decision-making and should only be given to a trusted relative or friend.

The milestones come quickly once children graduate high school and enter the big, wide world away from home. As your family navigates these significant rites of passage, consult us as your Personal Family Lawyer® to determine the steps necessary to ensure excellent communication and peace of mind when a medical emergency arises. Consider including your young adult children in the process. We’re here to help your family establish the legal protections needed to live your desired lives. Contact us today to schedule your Family Wealth Planning Session for your family and get the right documents in place for your kids.

This article is a service of August Law, PLLC Personal Family Lawyer®. We do not 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 Family Wealth 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. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge. 

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.

400 Sugartree Lane, Suite 520

Franklin, TN 37064

Office: (615) 576-5065

Email: info@augustlawpllc.com

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Protect Your Aging Loved Ones From Undue Influence

What is Undue Influence?

Undue influence occurs when one individual uses their position of authority or advantage to coerce another individual into making decisions or performing an act that they otherwise would not. This often involves the leveraging of emotional ties or power dynamics, and it can take the form of deception, threats, harassment, isolation, or a number of other actions. The perpetrator is most often a family member, but it could also be a close friend, caregiver, professional advisor, business partner, or even someone the person just met.

In estate planning, undue influence typically occurs during the creation or revision of wills, trusts, or other estate planning documents. For example, a son may use threats and lies to pressure his elderly father to change his will or trust to grant him more inheritance, while reducing his siblings’ share of the estate. To illustrate what undue influence looks like in real life, consider the following court case, which was included in an article from the American Bar Association analyzing how the definition of undue influence has evolved in California’s legal system.

Undue Influence Case Example

A daughter was living with her father who was in his 80s and in poor health. She convinced him to give her $8,000 per month because, “I’m taking care of you.” She would not allow the other children to visit, saying their father was too ill and weak to receive visitors. She also told her father, “Well, the other kids won’t help. They never visit. I’m the only one who cares about you. You’d end up in a nursing home if I wasn’t here.” 

After the father died, the surviving family discovered that the daughter had induced her father to make a will leaving the family home to her as well as all his stocks and bank accounts. A will contest took place. A jury found that undue influence had taken place, but that the father would have wanted to leave something to his daughter. Eventually, it was determined that the assets should be split between the four children.

Identifying Undue Influence

Undue influence can be difficult to identify because it often takes place behind closed doors. And unless you are in frequent communication with a loved one about their estate planning, you may not even know they have changed their plan until they have passed away or become incapacitated. This can be especially challenging if you have elderly loved ones who live far away, leaving you unable to regularly visit them and with little knowledge of their daily lives and interactions with others.

To complicate matters further, not all influence is undue, and some influence is perfectly fine—the mere fact that someone was influenced by another individual to change their estate plan to increase their inheritance isn’t necessarily enough to throw their plan into question. Additionally, adults have the legal right to make their own decisions (even bad ones), and they can spend or give away their money in whatever manner they choose, provided they haven’t been deemed incapacitated.

Undue influence isn’t just about one person influencing another or merely expressing their opinion; it’s about a person in power manipulating someone who is vulnerable to the extent that they are unable to exercise their own free will. Although undue influence can be difficult to spot, there are some common warning signs.

Red Flags for Undue Influence

Some of the most common actions that are red flags that someone may be attempting to unduly influence your parents or other elderly loved ones include the following:

● Preventing communication between the victim and family members.

● Isolating the victim from family and friends.

● Withholding documents from family members.

● Encouraging the victim to make financial gifts or offer other benefits to people he or she only recently met.

● Naming recently-met connections as attorney-in-fact under a financial power of attorney or agent on medical power of attorney, or as a joint owner on financial accounts, real estate, and other assets.

● Giving financial or estate planning advice that is not in the victim’s best interests, but rather in the interests of the advisor.

● Excessive involvement of a recently-met connection with the victim’s estate planning efforts, such as help with creating or updating key estate planning documents.

● Significant inconsistencies between previous versions of the victim’s estate plan and the latest versions. This is especially true if the estate plan suddenly includes new beneficiaries or excludes previous ones.

Should you notice any of these behaviors or other signs that a loved one may be a victim of undue influence, it’s critical that you immediately take steps to investigate the situation, whether that means getting the proper authorities involved or confronting the abuser directly. Time is of the essence in such cases, so the earlier you step in the better.

There have been far too many cases where family members waited too long to take action, and by the time they did, the damage was already done: savings were depleted, family homes were sold, and in the worst cases, senior victims were placed in substandard nursing homes and assisted living facilities against their wishes.

Given these risks, it’s vital to get in front of the situation as early as possible, not only to prevent financial mismanagement and exploitation, but also to ensure your loved ones’ overall health and safety.

Prevent Undue Influence with Proactive Communication and Planning

One of the most effective ways to prevent the possibility of undue influence is to be proactive when it comes to communicating with your parents and other elderly relatives about their estate planning goals and desires. By talking with your loved ones early and often about how they want their affairs handled, you can help reduce the chance for surprises down the road.

Additionally, your loved ones should always work with an experienced lawyer like us to create their estate plan. As your Personal Family Lawyer®, we can support them to put in place a number of different estate planning vehicles, such as revocable living trusts and power of attorney documents, that would allow you or another trusted family member to intervene and help them in a time of crisis, without the need for court intervention.

To this end, we can support your aging parents and other senior family members to develop a comprehensive incapacity plan, customized with the specific planning vehicles to match their unique needs, family dynamics, and life situation. Bring your parents or other relatives in to meet with us for a Family Wealth Planning Session to learn more about how this would work.

Of course, if you notice any red flags or other suspect behaviors, you should immediately contact us, your Personal Family Lawyer® to address the issue. While there’s no way to prevent age-related dementia and other forms of cognitive decline, make sure your parents and other senior relatives know that they can use estate planning to have control over how their lives and assets will be managed if it does occur.

400 Sugartree Lane, Suite 520

Franklin, TN 37064

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Email: info@augustlawpllc.com

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Why Every Adult Needs A Living Will

What Is A Living Will?

A living will, also called an advance healthcare directive, is a legal document that tells your loved ones and doctors how you would want your medical care handled if you become incapacitated and cannot make such decisions yourself, particularly at the end of life. Specifically, a living will outlines the procedures, medications, and treatments you would want and would not want to prolong your life if you cannot make such decisions yourself.

For example, within the terms of your living will, you can articulate certain decisions, such as if and when you would want life support removed should you ever require it and whether you would want hydration and nutrition supplied to prolong your life.

Beyond instructions about your medical care, a living will can even describe what type of food you want and who can visit you in the hospital. These are critical considerations for your well-being at a time of greatest need for you. And if you haven’t provided any specific instructions, decisions will be made on your behalf that you likely will not want.

Living Will vs. Last Will And Testament

Upon death, a last will and testament ensures your assets are distributed as you choose. Note that your last will only deals with your assets and only operates upon your death. In contrast, a living will is about you, not your assets. And it operates in the event of your incapacity, not your death.

In other words, a last will tells others what you want to happen to your wealth and property after you die, while a living will tells others how you want your medical treatment managed while you are still alive. And that’s really important for you and your care!

Living Will vs. Medical Power of Attorney

Medical power of attorney is the part of an advance healthcare directive that allows you to name a person, known as your “agent,” to make healthcare decisions for you if you are incapacitated and unable to make those decisions yourself.

Simply put, medical power of attorney names those who can make medical decisions in the event of your incapacity, while a living will explains how you would want your medical care handled during your incapacity.

Why Having A Living Will Is So Important

A living will is a vital part of every adult’s estate plan, as it can ensure your medical treatment is handled exactly the way you want if you cannot communicate your needs and wishes. Additionally, a living will can prevent your family from undergoing needless trauma and conflict during an already trying time.

Without a living will, your family would have to guess what treatments you might want, and your loved ones are likely to experience stress and guilt over the decisions they make on your behalf. In worst cases, your family members could even end up battling one another in court over who should manage your medical care and how.

Should You Rely On A Living Will Created Online?

While there is a wide selection of living wills, medical power of attorney, and other advance directive documents online, you likely want more guidance and peace of mind than is available through an online service to support you to address such critical decisions adequately. Regarding your medical treatment and end-of-life care, you have unique needs and wishes that cannot be anticipated or adequately addressed by generic documents or without the counseling and guidance we can provide through your decision-making process.

To ensure your directives are tailored to suit your unique situation, work with experienced estate planning professionals like us, your local Personal Family Lawyer® to support you to create and/or review your living will.

How We Can Help

Even if you have a professionally prepared and well-thought-out living will, it won’t be worth the paper it’s printed on if nobody knows about it. A living will comes into effect the second you sign it, so you should immediately deliver copies to your agent, alternate agents, primary care physician, and other medical specialists.

Additionally, don’t forget to give those folks new versions whenever you update those documents and have them destroy the old documents. As your Personal Family Lawyer®, delivering the latest copies of your living will and other estate planning

documents is a standard part of our Life & Legacy Planning Process. We ensure that everyone who needs your documents always has the latest version.

And since unforeseen illness or injury could strike at any time. Don’t wait to plan your will. Contact us to get this critical document in place. Call us today to schedule an appointment.

400 Sugartree Lane, Suite 520

Franklin, TN 37064

Office: (615) 576-5065

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3 Essential Questions To Ask Before Creating Your Will Online

Know what’s possible—and what’s not  

A great way to start educating yourself is by watching this training video by family financial and legal expert Ali Katz. This free, one-hour training clarifies what you can do yourself online, and when you really need a lawyer’s support. The training also gives you access to an online tool you can use to create an inventory of all your assets, which is critically important to leave to your loved ones, no matter how much or little you have to pass on.

Meanwhile, if you are looking  to create your own will online, first ask yourself the following 3 questions. After considering these 3 questions, if you determine you can create your own will online, you should seriously consider having us review it for you once you complete the document to be certain you’ve properly covered everything and everyone you care about.  

01 – Will your online will keep your family out of court? 

When considering creating your own will online, the first question you need to ask yourself is: “Should I become incapacitated or when I die, do I want to keep my family out of court?” If your answer is “Yes, I 100% want to keep my family out of court,” then creating your own will online may not be the best idea. 

While a will is a necessary element of most estate plans, it’s typically just one small part of an integrated plan. And a will by itself won’t keep your family out of court. In order for assets covered by your will to be transferred to your beneficiaries, your will must first pass through the court process known as probate.  

During probate, the court oversees the administration of your estate and assets, ensuring your assets are distributed according to your wishes, while ensuring any creditors of your estate are paid, and managing any disputes that arise. Probate is lengthy, expensive, and open to the public, so you’ll want to have more than a will in place if you have any assets that would go through court in the event of your incapacity or death. 

To avoid probate and keep your assets out of court, your will should be combined with other planning documents and important conversations as well. These documents include a properly drafted and funded trust, up-to-date and effective beneficiary designations, and you’ll also need to have conversations with family to ensure they won’t end up in conflict due to your lack of preparation.  

Beneficiary designations and trust planning can be complex, and if you have assets that would otherwise pass through the court process, it may be difficult to ensure you are making all the right choices for your loved ones and your assets using an online document service. This is why we recommend that you begin your estate planning with a Family Wealth Planning Session, during which we can help you look at your family dynamics and your assets, and then we can assess what would happen to everything you have and everyone you love, when something happens to you. During this planning session, we can then determine the right plan for you and the people you love to help keep them out of court when something happens to you. 

02 – Is your online will’s execution legally valid? 

If you do not have assets that would go through the court process, and you want to create an online will simply to name someone as your executor in the event of your death, you’ll want to make sure your online will is legally valid.  

Each state has specific laws stipulating how a will must be documented and signed to be legally binding. If you fail to execute your will in accordance with these laws, the court can deem your will legally invalid. 

If the court deems your will invalid, it’s as if the document never existed. In that case, a judge would name the person it considers is best to handle your estate, and your assets would be distributed according to state intestacy laws, which typically give priority to your closest living blood relatives.  

If you want to ensure your online will is legally valid, you can look up your state’s laws governing the valid execution of a will. From there, make certain you sign it properly, with the right number and type of witnesses. 

03 – Does your online will properly name an executor? 

If you are going to create your own online will, the last question to consider is whether the will properly names an executor, along with back-up executors, and it ensures that those you name will be appointed by the court in the event of your death. 

An executor, also called a “personal representative,” is the person responsible for carrying out the instructions in your will. Your executor is typically named in your will and appointed by the court to locate and manage your assets, pay any outstanding debts and taxes you owe, and distribute your remaining assets to your beneficiaries.  

If you don’t name an executor in your will, or the person you choose is determined to be unfit, the court will appoint an executor for you. As an example of how things can go wrong here, one common situation in which a named executor can be determined to be unfit is if your will does not waive the requirement for the executor to obtain a bond, and your named executor cannot qualify for a bond. This is a frequent mistake made by those who create their own will online.  

If you’re unaware of these requirements when creating your online will, your chosen executor could be deemed unfit, leaving the choice up to the court. We can make certain your choice for executor is properly qualified, so you can rest easy knowing someone you know and trust will handle your final affairs and support your loved ones when you no longer can. 

The Professional Support You Deserve 

As  you can see, creating your will online without a lawyer’s help is a huge gamble, and if you get it wrong, it can cost your family a lot more than money. Rather than relying on a one-size-fits-all document service, meet with us, your Personal Family Lawyer® to create your will and other estate planning documents.  

Our Life & Legacy Planning Process is specifically designed to put in place the right combination of planning solutions to fit with your unique asset profile, family dynamics, budget, as well as your overall goals and desires. Until then, if you need to get your plan started or need us to review your existing documents, contact us today. 

400 Sugartree Lane, Suite 520

Franklin, TN 37064

Office: (615) 576-5065

Email: info@augustlawpllc.com

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