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Category: Estate Planning

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Estate Planning

Utilizing Estate Planning For FAFSA Eligibility

Understanding how financial aid and estate planning intersect can make a significant difference when preparing for college expenses. This article will explain how asset ownership influences aid eligibility, offer actionable strategies to increase the chances of receiving aid and highlight estate planning tools that can protect your wealth while optimizing support for your child’s education.

FAFSA and Asset Ownership: The Basics

The FAFSA, or Free Application for Federal Student Aid, evaluates a student’s financial need based on several factors, including family income and assets. However, not all assets are created equal in the eyes of FAFSA. How those assets are owned—by the parent, the student, or even a third party—can significantly impact financial aid eligibility.

Here’s the key: FAFSA assesses up to 5.64% of parent-owned assets when calculating the Expected Family Contribution (EFC). For student-owned assets, though, that number jumps to a whopping 20%. So, keeping assets out of your student’s name increases their chances of receiving financial aid. 

In other words, parent-owned assets are less punitive than student-owned ones. Consider assets like your savings account, investments, or a 529 college savings plan. If you, the parent, own the asset, only 5.64% of its value is considered in the EFC calculation. 

But if your child owns assets outright—like in a UGMA or UTMA custodial account— those accounts will be subject to a 20% assessment. For example, if your child has $10,000 in one of these accounts, FAFSA will expect $2,000 to go toward college costs. Ouch.

What can you do? You can’t legally change UGMA/UTMA account ownership because they belong to the child. However, consider using a 529 plan or a parent’s investment account instead for future savings. 

Estate Planning Meets FAFSA

Here’s where estate planning comes into play. By structuring your assets wisely, you can minimize their impact on financial aid. Let’s explore a few strategies:

1. Irrevocable Trusts

An irrevocable trust can be a powerful tool in estate planning and remove assets from a person’s estate for tax purposes. However, irrevocable trusts are counted for FAFSA purposes if the student or parent is a beneficiary of an irrevocable trust. Note that the entire value of the trust should not be reported, but the beneficiary’s proportional share must be reported. In addition,  if the trust distributes income to the student, that income will be assessed at up to 50%. So, use irrevocable trusts with caution.

2. Retirement Accounts: Hidden Gems

Good news: FAFSA does not count assets in qualified retirement accounts like 401(k)s, IRAs, and Roth IRAs. This makes retirement savings a double win—you’re preparing for your future in a tax-advantaged manner and protecting your child’s financial aid eligibility.

Pro tip: If you have extra savings that would otherwise count on FAFSA, consider contributing to your retirement account. It’s a FAFSA-friendly way to reduce your countable assets.

3. Pay Down Debt

Another savvy move is using liquid assets to pay down debt, such as mortgages or student loans. Since FAFSA doesn’t count your home’s equity or the balance of your debts, this strategy can reduce your reportable assets without hurting your financial position.

4. Timing Is Everything

FAFSA looks at your financial situation as of the day you file the form. That means you can time certain financial moves to optimize your aid eligibility. For instance, if you plan to sell an investment or receive a large bonus, try to do so after filing FAFSA to avoid inflating your assets or income for that year.

Practical Steps to Take Now

So, what can you do right now to prepare? Here are some actionable steps:

Review Your Assets: List all your family’s assets, including who owns them. Pay special attention to student-owned accounts and assets held in trusts.

Shift Savings to FAFSA-Friendly Accounts: If you’re saving for college, prioritize 529 plans owned by you, the parent. Avoid putting large sums into custodial accounts.

Create a Life & Legacy Plan: Work with me to create a comprehensive Life & Legacy Plan that may include irrevocable trusts or other strategies to protect your assets and your financial aid eligibility.

Max Out Retirement Contributions: If possible, contribute to your 401(k) or IRA to reduce your countable assets while securing your financial future.

Plan Ahead for Income Events: Be mindful of how bonuses, stock sales, or other income events could affect your FAFSA profile. If possible, defer these until after filing.

The Big Picture

Balancing estate planning and FAFSA eligibility can feel like walking a tightrope. On one hand, you want to preserve your family’s wealth and secure your child’s future. Conversely, you don’t want to leave money on the table regarding financial aid.

Understanding how asset ownership works and taking strategic steps can position your family for success. Whether it’s shifting assets, leveraging trusts, or timing your financial moves, a little planning can go a long way. And when that acceptance letter arrives—along with a generous financial aid package—you’ll be glad you took the time to get it right.

How We Help

We can help you create a comprehensive strategy that optimizes education funding and wealth preservation goals. We’ll work with you to structure your assets effectively and ensure your plan adapts as the law, your assets, or your family dynamics change. Our approach focuses on creating clarity and consistency across all aspects of your financial planning, from education funding to legacy preservation.

Book a call to learn how we can help you create the right plan for your family. Contact us today to get started.

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

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

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Estate Planning

Our Top 10 Most Common Estate Planning Questions: Part 2

When planning for your family’s future, the options can feel overwhelming. Should you get a will? Create a trust? And what happens if you do nothing at all? These aren’t just academic questions – your choices today will impact your loved ones tomorrow. In this second installment of a two-part Q & A series, I’ll break down the key differences between your primary estate planning options and explore practical ways to ensure your family is protected, no matter what the future holds. So, let’s dive in, beginning with a question about the basic estate planning documents.

Q: What is the difference between a will, living trust, and dying intestate? And what does that mean, practically speaking?

A: If you die without an estate plan, you do have a plan – it’s just the plan chosen for you by the state, and you may not like it. Your loved ones probably won’t like it because it means they’ll likely need to deal with a court process called “probate.” When you die without a will, it’s called dying “ intestate,” and it means that your assets are distributed according to state law after a process in which a judge decides who gets what. This could mean your assets would not go to the people you choose in the way you choose, and your family could face a lengthy, expensive, and public court process during an already difficult time.

A will is your basic instruction manual for what happens to your assets after you die, but it still requires your family to go through the probate process. While a will allows you to name guardians for your minor children and specify who gets what, your “executor” or “personal representative” must file the will with the court and potentially wait months or even years before receiving your assets. Plus, everything becomes public record – so anyone can look up what you owned and who got what, leaving the inheritors open to predators. 

If you create a trust, your assets can be passed to the people you choose without a court process and completely privately. Think of a trust as a container that holds your assets during your lifetime. Then, upon your incapacity or death, a successor trustee you’ve named can step in to handle your assets, manage your affairs, and pass your assets to your chosen beneficiaries. With a properly funded trust, your beneficiaries could receive their inheritance within weeks or months instead of months or years. 

Q: Is probate always required when someone dies?

A: The necessity of probate depends largely on how your assets are titled when you die and the total value of assets in your personal name at the time of your death. Assets solely in your name with no beneficiary designation must go through probate, and a Judge must order the distribution. Some exceptions: jointly owned property automatically passes to the surviving owner, assets with named beneficiaries (like life insurance policies and retirement accounts) go directly to those beneficiaries, and assets held in a properly funded living trust transfer according to the trust’s instructions, without court involvement. 

These issues can be complicated and have a huge impact on your loved ones, so it’s important to work with a trusted advisor who can help you understand your goals, and then properly structure your assets to accomplish your goals, especially if you want to keep your family out of court and out of conflict. Keep reading to find out how I can help.

Q: What if I’m uncomfortable talking about death and money?

A: While it’s completely natural to want to avoid thinking about death and avoid talking about money, not planning for the reality of death or a possible incapacity before death can leave your loved ones with an expensive, time-consuming mess to clean up during what will already be an emotionally difficult time. Here’s what you absolutely must know: First, if you become incapacitated or die without a plan, the court will make all the decisions about your care and your assets according to state law, not according to what you would have chosen. 

Second, if you have minor children and no estate plan, the court will decide who raises your children and who takes care of the assets you leave behind without your input. Think about that for a moment. A judge is a stranger to you and your kids, yet that’s who will decide your children’s future – who makes decisions about their education, health matters, and financial affairs. And, then, whatever you leave behind and whatever is left after the court process goes to your children when they turn 18 without protection (i.e., they’ll be free to spend it all as quickly as they want). If that concerns you, you need a plan of your own.

Third, your family will likely have to spend significantly more time and money dealing with your affairs if you don’t have a plan than if you had taken the time to create one. The good news is that making a plan doesn’t have to be overwhelming or uncomfortable—working with a trusted advisor who can guide you through the process step by step can bring you peace of mind, knowing you’ve taken care of the people you love. 

Q: How can you minimize your family’s stress by handling these matters the simplest way possible?

A: The best way to minimize stress for your family is to create a clear, comprehensive Life & Legacy Plan before anything happens to you. Many people think creating an estate plan will be stressful, but lack of planning causes the most stress for families. 

I make the process simple:

First, I help you understand what you own and what would happen to everything you own and everyone you love (including yourself) when something happens to you. Then, I support you to make informed, empowered choices about who should receive your assets, who should carry out your wishes, and how you want it all handled. Finally, I help ensure your plan will work when your family needs it by supporting you to review your plan regularly as your life changes and ensuring we maintain an updated inventory of your assets to ensure none of your assets are lost to the state due to oversight after your death.

Beyond creating the right legal documents, I’ll support you in other ways to make things easier for your loved ones. I’ll help you document specific wishes for personal items with sentimental value and have conversations with your loved ones about your choices so there are no surprises later. We’ll conduct a Life & Legacy Interview so you can pass on your values, insights, and stories – the intangible (and most important) assets that are often lost when someone dies. Most importantly, I will be there for your family when you can’t be there, to guide them through the process and ensure your wishes are carried out properly. This is the power of our Life & Legacy Planning® process.

How We Help You Create Peace of Mind

We understand that thinking about death and money can feel overwhelming. We’ve created a simple, step-by-step process to help you get your affairs in order and protect your family. Our Life & Legacy Planning process goes beyond just creating legal documents – we help you make informed decisions about your family’s future, keep your plan updated as your life changes, and ensure your wishes will be carried out properly when the time comes. Most importantly, we’ll be there for your family when you can’t be, providing the guidance and support they’ll need during a difficult time. You’ll gain peace of mind knowing you’ve done everything possible to make things easier for the people you love.

Contact us today to get started.

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

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

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Estate Planning

Our Top 10 Most Common Estate Planning Questions: Part 1

Regarding estate planning, I get many questions about many topics. One of the most common questions I hear concerns account ownership and asset management. Understanding how accounts are titled and who has access to them isn’t just about convenience—it’s about ensuring your assets transfer smoothly to your loved ones while protecting them from potential risks. 

In this first installment of a two-part series, I’ll answer the most common questions about asset ownership and management. I’ll also outline ways in which you can make things as easy for your family after your death. So, let’s dive in, beginning with a question about joint assets.

Q: What’s the difference between joint ownership and transfer-on-death designation?

A: Joint ownership means both parties have full access to and ownership of a specific account or piece of real estate while they are alive. When one owner dies, the surviving owner automatically receives full ownership. This can be convenient but comes with risks—a joint owner can withdraw all the money at any time, and the account could be vulnerable to either the joint owner’s creditors or legal judgments.

On the other hand, transfer-on-death (TOD) or payable-on-death (POD) beneficiary designations give you sole control during your lifetime. Your designated beneficiary has no access or rights to the account while you’re alive but receives the assets automatically upon death. This arrangement prevents another person from accessing your assets while you’re alive and avoids the court process (called probate) after you die. 

One important note: When you have a joint owner on your account or a designated beneficiary, that person will receive all the funds after you die, no matter how old they are or what your family dynamics are. This can create conflict in your family or cause someone fiscally irresponsible to inherit a windfall with no safeguards potentially. Lawsuits are filed all the time by disgruntled siblings who find out that the caretaker sibling receives all the money in a parent’s account (or sole title to real estate) rather than being distributed equally among all siblings. If this concerns you, read on to find out how you can book a call with me to learn about your options. 

Q: If I hold my property jointly or use a TOD or POD, do I need to have a Trust?

If you use joint ownership or TOD/POD instead of a Trust, you need to consider some traps for the unwary. First, as indicated above, jointly owned property could be at risk from creditors of either party. I think of my client, the granddaughter, who was titled on grandma’s bank account. When the granddaughter’s husband didn’t pay the bill on the copier contract for his business, the copier company sued and got a judgment against him. Next thing you know, grandma’s account gets garnished because it was held jointly with the granddaughter, and so the granddaughter was liable on the copier judgment.

Suppose you use a TOD or POD to avoid a scenario like that. In that case, the problem is that the TOD/POD only operates in the event of death, not incapacity, and TOD/POD could result in the wrong person ending up getting the assets or the assets ending up in probate if there is an unexpected “order of death” issue. Imagine grandma leaving the house to grandson using TOD, but grandma and grandson are in the car together when there’s an accident, and grandson dies first, with grandma dying shortly thereafter, and before she could change the TOD/POD. Who gets the property, and how? In this case, the property would have to go through probate and pass to grandma’s “next of kin” according to the state intestacy statutes. Given that grandma was leaving her property to her grandson, she likely didn’t want the “state’s plan” for her assets. But that’s what she’ll end up with.

The solution is not to use joint ownership or a TOD/POD to pass title to assets at your death. Instead, set up a trust and retitle the property. Then, everything can be handled easily, privately, and in our office for the people you love.

Q: What happens to retirement accounts and life insurance policies after death?

A: These accounts pass directly to your named beneficiaries, bypassing probate and any instructions in your will, as long as you have named beneficiaries and if you haven’t named a minor as a beneficiary. This is why keeping your beneficiary designations up to date is crucial. If your beneficiary designations are outdated – listing an ex-spouse or deceased person, for example – your assets might not go where you want them to. Even worse, if no beneficiary is listed, these accounts would go through probate, costing your loved ones unnecessary time and money. Suppose you’ve named a minor as a beneficiary. In that case, assets will be subject to a court process to hold the assets under court order until your minor beneficiary is “of age” – usually 18 or 21, depending on state law.

Q: Do I need an inventory of my assets?

A: Yes, and it’s critically important that you create an inventory and keep it current. We include this in all of our planning options because it’s one of the most critical parts of the planning process, even though, surprisingly, it’s not part of most estate planning with traditional lawyers or legal insurance plans. Our unique Life & Legacy PlanningⓇ process includes an asset inventory because if you don’t inventory your assets, your family will not know what you have, how to find it, and how to access it as easily and affordably as possible.  Lost assets end up in your state’s treasury as unclaimed property. According to the National Association of Unclaimed Property Administrators, approximately 1 in 7 people in the U.S. – or about 33 million people – have unclaimed property, totaling roughly 77 billion dollars. You need an asset inventory if you want to ensure that your assets go to the people or charities you want rather than to your state government’s unclaimed property fund. And it must stay up to date.

Q: How often should I review my asset inventory and account designations?

A: Your inventory and beneficiary designations need to be kept updated over time to reflect your current circumstances when you die. Your Life & Legacy Plan includes regular, ongoing reviews of your asset inventory so no asset gets lost. 

It’s also important to update your asset inventory and account designations whenever you experience a significant life event such as:

  • Marriage or divorce
  • Birth or adoption of a child
  • Death of a beneficiary
  • Purchase or sale of significant assets
  • Moving to a new state
  • Starting a business
  • Retirement

When you work with me, you won’t have to remember this alone. I’ll proactively remind you to update your inventory and beneficiary designations and help make it as easy as possible for you to take action. 

Q: What’s the best way to organize and store my asset information?

A: Create a clear, organized system that your loved ones can easily access if something happens to you. However, be careful about including sensitive information like passwords in your will, as it becomes public record after death. Instead, consider keeping this information in a secure location and telling your trusted family members, executor, or trust administrator how to access it. I will help you explore the best way to do this when we work together.

How We Help You Get Organized and Protected

We help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, proper account titling, and coordinated beneficiary designations. We’ll help you understand the implications of different ownership structures and guide you in making the best choices for your family’s unique situation. Plus, we’ll help you keep everything updated through regular reviews, ensuring your plan continues to work as intended. You’ll gain peace of mind knowing that your assets will go to the people you want in the way you want.

Contact us today to get started.

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

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

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Estate Planning

Estate Planning in Times of Change: Part 2

In Part 1 of this series, we explored general estate planning considerations in today’s changing landscape, especially those related to taxes, interest rates, and asset protection. Now, let’s focus on protecting families with unique planning needs, including LGBTQIA+ families and those with special-needs children. 

In this political transition, comprehensive estate planning becomes crucial for these families, who may face legal rights and protection changes. Recent political developments have heightened concerns about potential changes to LGBTQIA+ rights, healthcare access, and educational protections. While we can’t predict future legal changes, we can create strong safeguards through careful planning—just in case. Let’s dive in to find out how.

Understanding the Stakes for LGBTQ+ Families

Recent political shifts have shown how quickly federal protections can change. The incoming administration has indicated plans to roll back various LGBTQIA+ protections (see here and here), including changes to Title IX interpretations and healthcare access. While marriage equality currently remains protected by federal law, LGBTQIA+ families may want to consider creating multiple layers of legal protection independent of federal policy.

Healthcare decision-making rights are also a concern, and current legal protections are not guaranteed. If there’s a significant shift in law and policy, some healthcare providers may challenge a spouse’s right to make medical decisions. However, creating comprehensive healthcare directives ensures your wishes are honored and your loved ones can advocate for you in critical moments.

Documenting and protecting parental rights becomes especially important for LGBTQIA+ couples with children. Given potential changes to federal education policies and Title IX interpretations, clear legal documentation of parental rights and educational decision-making authority becomes crucial. This includes creating legal frameworks that remain valid even when traveling between states with differing levels of LGBTQIA+ protection.

If you’re concerned about any of these potential changes, I can help. Read on to learn how to schedule a complimentary consultation call with me.

Protecting Healthcare Access and Rights

In addition to concerns about a change in federal policy, recent state-level restrictions on healthcare access highlight the importance of comprehensive planning for medical decisions. It’s time to create a comprehensive Life & Legacy Plan with detailed provisions for healthcare choices and medical advocacy. For families with transgender members, especially, consider documenting current medical providers and creating contingency plans for accessing care if federal or state policies change. 

With my Life & Legacy PlanningⓇ process, I’ll help you establish comprehensive medical powers of attorney and healthcare directives that clearly state your wishes and designate trusted advocates. These documents become especially important when traveling between states or if federal protections shift. We can also include specific language about gender-affirming care and other medical preferences to ensure your healthcare choices are respected.

Safeguarding Educational Rights and Family Recognition

With potential changes to educational policies and funding, families should consider additional protections for their children’s educational rights. This includes clear documentation of parental authority and educational decision-making powers. Consider creating additional legal frameworks to protect your children’s rights to use their correct names and gender markers in school settings.

If the Department of Education makes significant changes, comprehensive educational planning becomes even more crucial for families with children with special needs. The Department of Education, through the Office of Special Education Programs, provides resources to support students with disabilities through age 21. I can help you find support to document current educational supports and create contingency plans for maintaining services if new federal education policies or funding changes affect special education programs. 

Building Comprehensive Legal Protection

Traditional estate planning often falls short of protecting vulnerable families during political change. Your plan should include multiple layers of protection that work together to secure your family’s future regardless of policy shifts, and this simply doesn’t happen when you think about estate planning as a set of documents, which is the traditional model. Instead, you need a comprehensive Life & Legacy Plan to protect your family entirely. When you work with me, your Life & Legacy Plan, customized for your unique family dynamics, might include:

  • Trust structures that provide clear documentation of your intentions and protect your family’s financial security independent of federal recognition of relationships.
  • Backup plans for accessing essential services and support if federal or state policies change.
  • Documenting your current rights and protections while they remain in place creates evidence of your family relationships and intentions that can support future legal claims.

We support you in creating your comprehensive Life & Legacy Plan that works for you and your family when needed. 

The Importance of Regular Reviews and Updates

Regularly reviewing your estate plan becomes essential as political and legal landscapes shift. What works today might need adjustment as circumstances change. My Life & Legacy Planning process includes regular reviews and updates, so your plan stays current with legal developments. This ensures your plan works when needed, rather than sitting on a shelf collecting dust. 

Since I know you’re busy, you never have to think about reviewing your plan. We will contact you proactively and regularly to update your plan as laws and policies change.

How We Help You Protect Your Family

The time to act is now. Don’t leave your family’s security to chance. I help you create a comprehensive Life & Legacy Plan that accounts for your unique circumstances and ensures your family stays protected regardless of legal or policy changes. We’ll help you understand your options and create a plan that truly suits your family’s needs.

Contact us today to get started.

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

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

Categories
Estate Planning

Estate Planning in Times of Change: Part 1

With a new presidential administration onboarding, the estate planning landscape is shifting beneath our feet. If you’ve been waiting for the “right time” to create or update your estate plan, there’s no time like the present, which presents opportunities and urgencies that demand attention. With anticipated changes on the horizon and favorable conditions that won’t last forever, understanding your options has never been more critical. 

In this two-part series, we’ll explore what we know for certain, what remains unclear, and most importantly – what you can do about it. Next week, we’ll look at strategies for protecting loved ones who may be especially vulnerable in the coming years. But this week, we focus on taxes, interest rates, and asset protection. Let’s dive in.

What We Know About Taxes and Interest Rates

Here’s what we know: The current estate planning environment offers some significant advantages that won’t last forever. The estate tax exemption for 2024 sits at $13.61 million per person ($27.22 million for married couples) – the highest it’s ever been. That number increases in 2025 to $13.99 million per person (or $27.98 million for married couples). You can transfer substantial wealth to your loved ones without triggering federal estate taxes. This creates a once-in-a-lifetime opportunity for many families to secure their legacy and protect their assets from future estate tax exposure.

However, we also know that this generous exemption is scheduled to sunset on December 31, 2025. Without new legislation, the exemption amount will drop significantly – to approximately $7 million – on January 1, 2026. This means that gifting assets out of your estate in 2025 could give you a $7 million opportunity to move assets that otherwise could be subject to estate tax rates that have been as high as in the past. When you are considering whether to gift assets out of your estate in 2025, remember to consider:

1. Not just the current value of your assets, but what they will grow to over your lifetime;

2. You can gift assets in ways that allow you to maintain aspects of control and even use. Call me and let’s discuss it.

3. The earlier in the year you get started on your considerations, the less expensive your planning will be, and the more likely we can get it done in time, so if you are likely to have an estate over $7 million in value at the time of your death, call me immediately to schedule. 

Pausing here momentarily, I want to point out something important: Your estate may be larger than you think. For tax purposes, your estate includes your home’s fair market value (minus the mortgage) and any other real estate you own, life insurance policies, retirement accounts, investment accounts, and other assets. So, while you may have assets that total less than the $13.99 million exemption in 2025, you very well could be affected by the 2026 exemption. If you want to know for sure, I can help. Read on to find out how to book a call with me.

Additionally, 2024 gift tax laws allow you to give up to $17,000 per person annually without triggering any tax consequences. For married couples, you could give up to $34,000 to each child, grandchild, or anyone else to protect assets and pass them to your loved ones without tax liability. This is separate from the lifetime estate tax exemption and represents an additional tool for reducing your taxable estate. In 2025, the gift tax exclusion will increase to $19,000 per person.

Interest rates are another crucial factor. After a period of historic high interest rates intended to curb inflation, rates have finally begun to decline (though at the time of publishing, rates are fluctuating). Lower interest rates could make specific estate planning strategies particularly effective, especially if you want to transfer wealth to future generations. To learn more, book a call with me below.

Now that you’re clear on the current state of taxes, interest rates, and asset protection, let’s shift gears and discuss what’s uncertain. 

What Remains Uncertain

We can anticipate changes with the new presidential administration and legislative session, but what those changes are is unclear. Different administrations often have vastly different approaches to tax policy, which can significantly impact estate planning strategies.

Here’s what we don’t know:

  • Whether new legislation will freeze the current exemption and stop the estate tax exemption from dropping in 2026 
  • How long interest rates will continue to decline
  • What changes might come to the gift tax exclusion and other wealth transfer tools
  • Whether state-level estate taxes might change in response to federal shifts
  • How treatment of retirement accounts and inherited IRAs might evolve
  • Whether new restrictions might be placed on currently available planning strategies

With all this uncertainty, you may feel tempted to sit back and see what happens. However, waiting could mean missing valuable opportunities to protect your family’s financial future. History shows us that when tax laws change, they often do so quickly and with limited opportunities to act before new rules take effect. So, the time to at least have a conversation and start the discussion is now.

Why You Need to Take Action Immediately

Combining what we know and what remains uncertain creates a clear imperative: you should take immediate action. Here’s why:

Current Benefits: Today’s high exemption amounts and declining interest rates create optimal conditions for transferring wealth. By acting now, you can lock in these advantages before they potentially disappear. Many of the strategies available today might be limited or eliminated in the future.

Future Protection: I help you create a properly structured Life & Legacy Plan that can help shield your assets from future tax changes. While we can’t predict what changes will come, we can build flexibility into your Life & Legacy Plan to adapt to various scenarios. This might include using specialized trusts, family-limited partnerships, or other advanced planning tools that can provide long-term benefits regardless of how tax laws change.

Peace of Mind: Beyond tax considerations, creating a Life & Legacy Plan ensures your wishes will be honored and your loved ones protected, regardless of what changes come at the federal or state level. This includes ensuring your healthcare directives are current, your power of attorney designations are appropriate, and your asset protection strategies are robust. I also help you keep your plan updated over time so your plan always works – no matter who’s in office.

Family Security: The actual value of estate planning goes far beyond tax savings. It’s about ensuring your family has the resources and guidance they need when you can no longer provide them. This includes protecting your children’s inheritance, providing for family members with special needs, and ensuring your charitable goals are met.

Speaking of family members with special needs, check back next week. In Part 2 of this series, we’ll explore specific strategies for protecting vulnerable family members and preserving family harmony through times of change. We’ll also discuss planning considerations for LGBTQ+ families, families with children who have special needs, and other situations requiring special attention in today’s environment. 

Your Next Steps

I understand that these changes and uncertainties can feel overwhelming. That’s why I offer a Life & Legacy Planning® Session designed to help you understand exactly how these current conditions and upcoming changes might affect your family.

Don’t wait until the last minute to act. While tax considerations are important, the real value of estate planning lies in protecting your family and preserving your legacy.

Take the first step toward securing your family’s future by booking a Life & Legacy Planning Session. Contact us today to get started.

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

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

Categories
Estate Planning

Lessons from Tony Bennett’s Estate Battle

When legendary singer Tony Bennett passed away in July 2023, he left behind an estimated $100 million estate and, unfortunately, a family divide threatening to tarnish his legacy. His daughters Antonia and Johanna Bennett are now suing their brother, Danny, who serves as trustee of their father’s estate, alleging a lack of transparency and potential mismanagement of assets. Let’s explore what went wrong and how you can protect your family from the same fate.

Background

A complex legal battle is unfolding in the New York Supreme Court. Tony Bennett’s daughters Johanna and Antonia have filed suit against their brother Danny, who serves as trustee of their father’s estate. The lawsuit raises alarming questions about the management of Bennett’s assets. While the legendary singer earned over $100 million from live performances in his final 15 years, his daughters were told the estate was valued at less than $7 million.

The dispute centers around Danny’s role as both trustee and former manager. In July 2022, Danny orchestrated the sale of Bennett’s memorabilia, personal property, and name and likeness rights to Iconoclast, a company specializing in legacy works. The daughters allege they were in the dark about which assets were included in this deal and have received only “a modest distribution.” They also claim Danny received $1.2 million in loans from their father in 2020 and lifetime gifts totaling $4.2 million – more than double what Bennett’s other children received.

Making matters worse, when Johanna and Antonia were finally allowed to visit their father’s apartment in 2024, they discovered many of his personal belongings were either missing or declared off-limits due to the Iconoclast sale. They learned that most of their father’s clothing had been donated to charity without their knowledge, despite these items being specifically bequeathed to Bennett’s children in the trust. An auction of Bennett’s belongings was held in April 2024, but his daughters allege they were largely “kept in the dark” about the details and had to rush to identify which items they wanted to keep.

Court filings also state that the trust was established in 1994, but we don’t know if it was ever reviewed and updated. We also cannot know if Mr. Bennett was ever advised about the potential disputes that could arise from naming one of his children as his sole trustee and administrator of the estate.

Why Family May Not Be the Best Choice

Like Mr. Bennett, many people select family members to administer their estate after they die. They trust family members and assume they’ll do the right thing. Or they haven’t been properly advised about the potential consequences of naming a family member as the estate administrator. However, as the Bennett lawsuit teaches, family members aren’t always the right people for the job. Here are several common issues that arise when family members serve as trustees:

Power Imbalance: Having one sibling control their siblings’ inheritance creates an uncomfortable dynamic and breeds distrust. 

Dual Roles: Danny’s position as trustee and former manager created a potential conflict of interest. Questions about decisions and motivations often arise when personal and professional roles overlap.

Transparency Issues: The significant discrepancy between known earnings and reported estate value raises red flags about financial transparency – a crucial element of trust administration.

Emotional Complications: Family relationships can cloud judgment and make it difficult to maintain the objectivity required of a trustee.

If you’re concerned about family conflict after you die, consult with a trusted advisor who can educate you about the potential ramifications of your decision and guide you to choose the right person—whether a family member or not. My priority is helping you make the process as easy on your loved ones and giving you peace of mind that you’ve done everything possible to keep your family out of court and conflict.

How to Prevent a Similar Conflict in Your Family

The primary way to prevent conflict in your family after your incapacity or death is to start courageous conversations with your family now. Conflict occurs when people are surprised about choices made by a loved one that are only revealed after it’s too late to gain understanding. Deep grief combined with surprise is a volatile combination. Communicating often and early is the best way to save your loved ones from this fate. If you’ve created your plan with my office and desire me to host a family meeting, reach out, and let’s schedule it. If you have not yet created your plan, let’s start there.

If you do not believe you can get your loved ones on the same page, I sometimes recommend choosing a non-family member or professional as your Successor Trustee. For instance, a professional or corporate trustee can provide the objective oversight needed to maintain family harmony while ensuring proper estate administration. This might have been a better choice for the Bennett family.

However, if you strongly prefer having a family member serve as trustee, you can implement additional safeguards with an effective estate plan. An effective plan may include adding co-trustees or creating independent oversight mechanisms to help ensure transparency and accountability. It might mean appointing a professional advisor to review major decisions or requiring regular external audits of estate administration. 

Finally, make sure your chosen trustee has access to proper professional support. Managing an estate requires complex legal and financial knowledge that most family members don’t possess. That’s why my Life & Legacy Planning process has built-in mechanisms to ensure your chosen representatives will always have help from me when needed. However, ongoing support for your family is rarely a part of a typical estate plan.

Essential Elements of an Effective Estate Plan

Creating an estate plan that truly protects your family requires careful consideration. It requires guidance on how to pick the right representative for you and your loved ones. It requires proper documentation of assets, including detailed records of everything from real estate to intellectual property rights. It requires clear distribution guidelines. It also involves transparency to help maintain family trust and prevent disputes from arising.

However, if you create a DIY plan, use a cheap online service, use a financial advisor who offers estate planning services, or work with a traditional estate planning attorney, these elements will likely not be in your plan. Instead, you need a comprehensive Life & Legacy Plan that will work when you need it to. 

When you work with me to create a comprehensive Life & Legacy Plan, I will help you:

  • Choose the right trustee for your situation;
  • Create systems for transparent asset management;
  • Establish clear communication protocols;
  • Protect family relationships from conflicts;
  • Document your wishes on video or an audio file so your family understands precisely what you want;
  • If you have minor children, gain peace of mind knowing that they will never be taken into the care of strangers if something happens to you, and
  • Review and update your plan regularly to account for family dynamics, assets, and life circumstances changes. 

We cannot know whether Mr. Bennett was advised of the potential consequences of naming his son to serve as trustee or whether he was given proper guidance on what he could have done to keep his family out of court and in conflict. But when you work with me to create a Life & Legacy Plan, I’ll support you in creating a plan that leaves a legacy of love and peace, not discord and strife.

How We Help You Create a Plan That Works

We help you create a comprehensive Life & Legacy Plan that protects your assets and preserves family harmony. We’ll help you address potential conflicts before they arise, ensure your wishes are clearly documented, create a framework for managing your assets even if you become incapacitated, and be there for your chosen representatives when you cannot be. We’ll also review your plan with you regularly so your plan works when you and your family need it to.

Don’t leave your family’s future to chance – schedule a complimentary 15-minute consultation. Contact us today to get started.

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

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

Categories
Estate Planning

How To Create a Lasting Family Legacy This Holiday Season

The holidays, a time for family, reflection, and gratitude, present a unique opportunity to build a meaningful and lasting family legacy. While financial inheritance is important, the value you pass down extends far beyond money—your values, insights, stories, and experiences. These intangible treasures shape the essence of your family’s identity and can serve as a guiding light for generations to come.

Unfortunately, many families leave this legacy-building process to chance. However, intentionally capturing and preserving these meaningful aspects requires more effort and focus. As part of our unique planning process, we help families solidify their legacy through a recorded Family Legacy Interview—a priceless gift for their loved ones.

This holiday season, we invite you to embrace the joy of storytelling by asking meaningful questions and recording the answers. This process can deepen family connections, uncover hidden wisdom, and create a legacy that your children and grandchildren will eagerly cherish for years to come.

Start a Family Tradition of Reflection

The best way to preserve your family legacy is to start with meaningful conversations. These discussions allow family members to reflect on their lives, share insights, and recount stories that might otherwise remain untold. We’ve found that asking the right questions is a powerful way to unlock memories and reveal the values that have shaped your loved ones.

To help you get started, we’ve compiled 32 meaningful questions that can serve as a guide during your holiday gatherings. Whether sitting around the dining table, gathered by the fireplace, or enjoying a quiet one-on-one moment, these questions can inspire deep and heartfelt conversations.

Here are some examples to spark meaningful conversations and preserve your family history:

  1. What comes to mind when you think about growing up in your hometown?
  2. What did you love to do as a kid before high school?
  3. What did you love to do in high school?
  4. What do you remember most about your teenage years?
  5. What do you remember most about your mom (grandma)?
  6. What was most important to her?
  7. What do you remember most about your dad (grandpa)?
  8. What was most important to him?
  9. If Grandma and Grandpa had a message to pass along to the grandchildren, what would it be?
  10. How did you meet your spouse? How did you know (s)he was the one?
  11. How did you choose your career? What was your favorite part about it?
  12. What made you successful?
  13. What did you believe about yourself that helped you become successful and deal with hard times?
  14. What times in your life “tested your mettle,” and what did you learn about yourself by dealing (or not dealing) with them?
  15. What three events most shaped your life?
  16. What do you remember about when I was born?
  17. Were you ever scared to be a parent?
  18. What three words would you say represented your approach to parenting and why?
  19. When you think about [sibling], how would you describe him/her?
  20. What message do you have for [sibling] that you want him/her to always keep in mind?

[Do the last two questions above for each sibling in your family]

  1. When you think about [spouse], how would you describe her/him?
  2. What message do you have for [spouse] that you want her/him to always keep in mind?
  3. What three words best describe who you tried to be in life? How would you like to be remembered?
  4. What do you think your children and grandchildren should focus on professionally?
  5. What have you learned about people in life?
  6. What do you think the world needs more of right now?
  7. What do you believe people want the most in life?
  8. What were the three best decisions you ever made?
  9. What are you most proud of?
  10. What were five of the most memorable moments of your life?
  11. What message would you like to share with your family?
  12. What are you most thankful for?

Asking these questions is just the beginning. Recording the answers ensures that future generations can experience shared wisdom and stories. Whether you record these conversations using your smartphone, a video camera, or a written journal, the effort creates a lasting keepsake.

The Power of Recording Your Legacy

Capturing your family’s stories and values in a tangible form makes the experience even more impactful. The recording becomes a treasure for future generations, allowing them to hear the voices, see the faces, and feel the emotions of their ancestors. It’s a gift that transcends time and provides a profound sense of continuity and connection for your family.

As estate planning professionals, we’ve seen how meaningful this process can be. We include a Family Wealth Legacy Interview in every estate plan we create. This interview ensures that your stories and insights are preserved alongside your financial and legal documents, creating a holistic legacy plan.

Beyond Stories: Protecting What Matters Most

While recording your family’s legacy is essential, it’s only one part of safeguarding your family’s future. To ensure your values and assets are protected, creating a comprehensive estate plan—or what we like to call a Life and Legacy Plan-is crucial. This type of plan doesn’t just focus on financial wealth but also captures and protects the intangible aspects of your legacy, ensuring a holistic approach to preserving your family’s heritage.

The holiday season offers a unique opportunity to gather with loved ones and reflect on what truly matters. It’s a time when family stories naturally come to the surface and when the importance of connection feels most profound. Use this season to initiate these meaningful conversations and take the first steps toward preserving your family legacy.

We are here to guide you through the process. From conducting a Family  Legacy Interview to creating a comprehensive estate plan, we’ll ensure that your life’s values, lessons, and treasures are thoughtfully preserved and protected. Our expertise and support will make the process smooth and rewarding, allowing you to focus on what truly matters: family and their legacy.

Create Your Legacy Today

Don’t let another holiday season pass by without capturing the priceless wisdom and stories of your loved ones. Use our list of questions as a springboard to discover the hidden gems in your family’s history. And when you’re ready to take the next step, schedule a Life & Legacy Planning Session with us. Together, we’ll create a plan to ensure your legacy will be a cherished gift for future generations. Contact us today to get started.

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

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

Categories
Estate Planning

How the Holidays Can Inspire Your Family Legacy Planning

As the holidays approach, many families are busy planning menus, coordinating travel, hitting those holiday bucket list activities, baking treats for friends and neighbors, and preparing for a big feast. While these are important traditions, these cherished holidays offer something even more valuable—a perfect opportunity to think about, discuss, and preserve your family’s legacy. 

In this article, you’ll discover practical ways to capture family stories during your holiday gatherings, start meaningful legacy conversations without awkwardness, and transform these precious moments into a comprehensive Life & Legacy Plan that protects your family’s values and assets for future generations. This year, consider using your holiday gatherings as a springboard for the meaningful conversations that can shape your family’s future.

The Heart of Legacy Planning: More Than Just Money

When most people think about legacy planning, they often focus solely on financial assets. But proper legacy planning encompasses much more. It’s about preserving your family’s stories, values, traditions, and the wisdom gained through generations. After working with families to support them with their estate planning and being there at the end of life, I’ve learned that these are the things that matter most. Values, insights, stories, experiences, and sentimental items are almost always more important to families than financial assets, though money also matters. 

Those moments around the holiday table, sharing old family recipes, telling stories about ancestors, or discussing what matters most to your family are the building blocks of a meaningful legacy. The holidays, with their focus on gratitude and family togetherness, provide an ideal setting to explore these more profound aspects of your legacy. 

Using Holiday Gatherings to Plan for the Future

With some planning, the holidays can be a great time to discuss the future. These conversations don’t have to be formal or heavy—they can emerge naturally from your holiday interactions:

Talk About Family Values: When expressing gratitude, encourage family members to share what they value most about being part of the family. These discussions inform how you structure your estate plan to reflect and perpetuate these values.

Discuss Family Philanthropy: If giving back is essential to your family, use this time to talk about causes that matter to everyone. This can lead to meaningful discussions about charitable giving and how to incorporate it into your legacy plan.

Addressing Family Dynamics during holiday gatherings can often reveal important insights to consider in estate planning. Who are the peacemakers? Who might need additional support? Understanding these dynamics can help you create a plan that promotes family harmony rather than conflict. By openly discussing these dynamics, you can ensure that everyone’s needs and concerns are considered, potentially reducing the risk of future family disputes.

Bring Up Your Planning: If you’ve recently completed your estate planning process or plan to before the end of the year or early next year, this is a great time to bring up your plans. Consider saying: “Because I want to make sure that everything is as easy as it can be for you all if something happens to me, I’m doing/did a kind of estate planning called Life & Legacy Planning, and I’d love to share about it with you because you’ll all be impacted. Are you open to having a conversation about that and what we all want to happen for ourselves if we become incapacitated or when we die?”

Understanding your family’s values, philanthropic interests, and dynamics isn’t just about having pleasant conversations—it’s about gathering crucial information to help you create a Life & Legacy Plan that genuinely serves your family and preserves harmony for future generations. 

Capturing Your Family’s Story

The holidays are a time for storytelling, a chance to share and preserve the precious memories and important family history that often emerge when families gather and reminisce. This joyful act of capturing family stories not only connects us to our past but also strengthens our bonds for the future. Here are some ways to make these moments even more special:

Record Your Family’s Food Heritage: That special stuffing recipe from your grandmother isn’t just about ingredients—it’s about family history. Document not just the recipe but the story behind it. Why is it important? How has it been adapted over generations? Who taught it to whom? If your relative is still alive, ask them to write out the recipe with essential notes. Having something in their handwriting can be very special for the younger generations.

Create a Family Interview Tradition: Designate time after dinner for family interviews. Have younger family members ask older ones about their childhood, important life lessons, or family history. Record these conversations (with permission) using your phone or video camera. It doesn’t have to be complicated.

Share Family Artifacts: Bring out old family photos, letters, or heirlooms. These physical items are not just objects but gateways to our family history and values. They often spark stories and discussions that deepen our appreciation for our family’s journey. Use these moments to explain why certain items are meaningful and what they represent in your family’s legacy.

Making Legacy Planning Part of Your Holiday Tradition

The key to successful legacy planning is making it an ongoing process, not a one-time event. Consider establishing new Thanksgiving traditions that support this goal. Here are a few ideas:

Create a Family Time Capsule: Each year, have family members contribute something meaningful to a time capsule—letters, photos, or small items that represent the year’s important moments.

Start a Family Mission Statement: Work together to create and update a family mission statement that reflects your shared values and goals. This can guide both current decisions and future legacy planning.

Document Family Medical History: While families are together, take time to update your family medical history. This information is crucial for future generations and can inform healthcare decisions.

Remember that legacy planning isn’t a one-time task but an ongoing journey that can be woven into your family’s holiday traditions each year. By incorporating these intentional practices into every holiday gathering, you’re capturing and preserving what matters most and building a stronger foundation for your family’s future. It’s a commitment, a responsibility, and a labor of love that will endure for generations.

How We Help You Create a Lasting Legacy

While holiday conversations are valuable for legacy planning, they’re just the beginning. To protect your family’s legacy and ensure your wishes are fulfilled, you need professional guidance and support to create a comprehensive Life & Legacy Plan. Our Life & Legacy Planning process goes beyond traditional estate planning to capture your assets, values, wisdom, and family story. We help ensure that your conversations around the holiday table become a legacy for future generations.

Take the first step toward preserving your family’s legacy. Contact us today to get started.

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

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

Categories
Estate Planning

The Hidden Truth About Settling a Loved One’s Estate

When someone names you as their executor, it might feel like an honor – a sign that they trust you to handle their final affairs. However, what many people don’t realize is that being an executor can turn into a demanding part-time (or full-time) job that lasts months or even years, often during a time when you’re also grieving the loss of a loved one. The responsibilities can be overwhelming, from tracking assets to dealing with creditors and managing family dynamics. Then, there are legal obligations and potential personal liability if things aren’t handled correctly. Making complex decisions while processing grief often proves more challenging than most people anticipate. Let’s explore what’s involved in administering someone’s estate and how proper planning can make this process easier for the people you love.

The Unexpected Time Commitment

Most people don’t realize that administering an estate isn’t just reading a will and distributing assets. The process typically begins with locating and gathering all estate planning documents, which can be challenging if they aren’t stored in an easily accessible place. The executor must notify numerous institutions of the death, often requiring multiple copies of death certificates and extensive documentation. This notification process alone can take weeks or even months, as each institution has its requirements and timeline for processing.

The time commitment becomes even more substantial when dealing with financial institutions. Each bank, investment firm, and insurance company has its procedures for handling a deceased person’s accounts. Many require original documents rather than copies, meaning executors spend countless hours making phone calls, writing letters, and visiting institutions in person. The process often involves repeated follow-ups and submission of additional documentation as requested by various institutions.

Property management, another time-consuming process, also falls to the executor. Whether it’s maintaining a house until it can be sold, managing investment accounts, or dealing with personal property, these responsibilities continue throughout the entire administration process. Real estate can be particularly demanding, requiring regular maintenance, payment of utilities and property taxes, and coordination with realtors if the property needs to be sold. Add to this the requirement to file court documents, appear at hearings, and prepare final tax returns, and it becomes clear why estate administration often takes far longer than expected.

This is incredibly challenging because most executors also work full-time jobs and manage their own families while trying to handle these responsibilities. The process can quickly become overwhelming without proper guidance, taking over evenings and weekends for months. The stress of juggling these responsibilities often leads to burnout and can affect personal and professional life.

The Financial and Emotional Costs

Beyond the time commitment, serving as an executor often comes with unexpected financial and emotional burdens. Many executors don’t realize they may need to pay for expenses out of pocket before being reimbursed by the estate. Court filing fees, property maintenance costs, and professional service fees can add up quickly, sometimes reaching thousands of dollars before any reimbursement is possible. In some cases, executors may need to hire attorneys, accountants, or other professionals to handle complex aspects of the estate, further increasing the financial burden.

The emotional toll of serving as executor often proves even more challenging than the financial aspects. Family dynamics frequently become strained during estate administration, as grief and stress can amplify existing tensions. Long-buried conflicts may resurface when it comes time to distribute personal property or interpret ambiguous instructions in estate documents. The executor often finds themselves in the difficult position of maintaining family harmony while fulfilling their legal obligations to the estate.

The pressure increases when executors discover complications like missing documents, incorrectly titled assets, or outdated beneficiary designations. These issues often require lengthy court proceedings, during which family members may grow increasingly impatient or suspicious. Without clear documentation and proper planning, even simple estates can become sources of lasting family conflict. Managing these interpersonal dynamics while handling technical legal requirements can be extraordinarily taxing.

Digital assets also present another layer of complexity that only some executors anticipate. Accessing and managing everything from email accounts to cryptocurrency can become nearly impossible in our increasingly online world without proper password documentation and legal authority. Many digital platforms have complex policies regarding account access after death, and navigating these policies without adequate preparation can lead to lost or inaccessible assets.

How a Life & Legacy Plan Makes a Difference

This is where working with our firm makes all the difference. My Life & Legacy Planning process is explicitly designed to prevent these common challenges and make estate administration as smooth as possible for your loved ones. Rather than simply creating documents, this comprehensive approach ensures that everything your executor or trust administrator needs will be organized and accessible when the time comes. The process includes detailed documentation of your wishes, clear instructions for asset management, and specific guidance for handling digital assets.

When you create a Life & Legacy Plan with me, it will include a complete inventory of regularly updated assets, ensuring everything is noticed and remembered. Your plan will also provide clear instructions about accessing physical and digital assets, eliminating the need for extensive searches or court intervention. You’ll also be supported in creating specific provisions for personal property distribution, helping prevent family conflicts before they arise. By addressing these details in advance, you significantly reduce the burden on your executor or trust administrator and minimize the potential for family disagreements.

Perhaps most importantly, working with me means your family won’t have to figure things out alone. Unlike traditional estate planning, which ends when you sign your documents, our relationship continues with your family. Your executor will have professional guidance through every step of the administration process, making their job significantly more accessible and reducing the likelihood of costly mistakes. This ongoing support helps ensure that your wishes are carried out efficiently and that your loved ones are protected during a difficult time.

Don’t leave your loved ones to navigate the complexities of estate administration alone. Book a call with us today to learn how we can help you create a plan that makes things easier for everyone involved. Contact us today to get started.

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

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

Categories
Estate Planning

Honoring Service: Essential Estate Planning Tips for Veterans and Their Families

Every day, we honor the brave individuals who have served our nation with dedication and resilience. Your service was a testament to your commitment to a better, safer future – and now it’s time to extend that commitment to securing a stable future for your loved ones. Through a personalized estate planning process I call Life & Legacy Planning, you can ensure that your family is well-cared for and your legacy is preserved. Just as you approached each mission with precision and care, this planning requires the same detail and intentionality to safeguard your family’s future.

In this article, I will help you understand the unique estate planning opportunities available to veterans and the steps you can take to secure your family’s tomorrow.

Understanding Your Veterans Benefits

Your military service has earned you and your family special benefits that extend beyond your lifetime. The Department of Veterans Affairs (VA) offers several programs to provide for your loved ones after you’re gone. It’s crucial to understand these benefits and take steps to ensure your family can access them. This includes keeping your discharge papers (DD Form 214) with your estate planning documents and informing your executor of their location. 

You should also maintain a current list of all VA benefits you receive, as this information will be crucial for your family to continue receiving eligible benefits. When you work with me to create your Life & Legacy Plan, I will help you organize the information your family will need so they know they’ll receive all the benefits they are entitled to. There will be no guessing, extra work, or lost benefits simply because they didn’t know what was available to them.

Creating Your Estate Planning Strategy

Life & Legacy Planning for veterans requires careful consideration of both military and civilian assets. I recommend you create a comprehensive list of your assets, including:

  • Military pension and retirement accounts
  • Life insurance policies (both military and private)
  • Property and real estate
  • Investment accounts
  • Personal possessions with monetary or sentimental value

With an inventory, your family will know how to find your assets so assets you care about aren’t lost or difficult to find. 

Note that service members can create basic estate planning documents through the military legal assistance office at no cost. Depending on your needs, this may or may not be an adequate option. For example, if you have minor children, you need a comprehensive plan that will keep your children from being taken into the care of strangers or raised by people you’d never want to raise them if something happens to you. Or, if you have a blended family, no children, a business, a child with special needs, or significant assets, you need a comprehensive plan that will keep your family out of court and conflict, which a free, documents-only plan will not do. Finally, for your plan to work when you need it to, your plan needs regular reviews and updates as your life changes, your family dynamics change, and your assets change. 

A free, documents-only plan is just that – documents. You won’t have a trusted advisor who has your back and will ensure your plan stays updated over time. But you get all these benefits (regular reviews, a comprehensive plan that keeps your family out of court and conflict, etc.) when you work with me and create a Life & Legacy Plan. So, I encourage you to educate yourself before making a plan based only on documents. I have many free resources to help, or you can book a complimentary consult call with me using the booking link below.

Working with a Trusted Advisor

While the military legal assistance office provides valuable services, you may benefit from working with an attorney who understands both veterans’ benefits and estate planning, especially if you have a potentially complex situation, like a blended family, a family member with special needs, a debilitating illness, no children (yes, this is often a complex matter, not a simple one!), or many varied assets. A competent attorney can help you:

  • Structure your estate to maximize benefits for your survivors
  • Create trusts to protect assets if you need long-term care
  • Navigate complex VA regulations
  • Ensure your estate plan complies with state and federal laws
  • Update your plan as laws and regulations change

Please book a complimentary call with us below for more information and guidance about what is best for you and your loved ones.

How We Help You Honor and Protect Your Legacy

Your service to our nation demonstrates your commitment to protecting what matters most. It’s time to protect your legacy through careful estate planning. By taking these steps, you’re continuing your tradition of service by ensuring your family’s security and well-being. Remember that Life & Legacy Planning isn’t a one-time task. Regular reviews, especially after significant changes like marriage, divorce, birth, or significant changes in your financial situation, are imperative to ensure your plan works when you and your loved ones need it. When you work with me, we include these regular reviews to give you peace of mind that your plan is always up-to-date and ready to serve your family. 

Veterans have already given so much in service to our country – you shouldn’t have to worry about your family facing legal challenges or missing out on earned benefits. We help you create a Life & Legacy Plan that honors your military service by ensuring your loved ones stay out of court and conflict while maximizing the benefits you’ve earned through your service. Once you’ve created your plan, you can rest easy knowing your wishes will be honored and your family will be protected with the same dedication you showed to safeguard our nation.

Schedule a complimentary 15-minute consultation to learn how we can help secure your military legacy. 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. 

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