Tag: Estate Plan

The Death Tax May Die—Now What?

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

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

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

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

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

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

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

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

Weighing the Benefits and Drawbacks for American Families

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

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

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

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

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

How the Repeal Could Change Your Estate Planning Strategy

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

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

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

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

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

Preparing for an Uncertain Future with a Life & Legacy Plan

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

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

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

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

How I Can Help You Move Forward with Confidence

I understand how tax legislation, such as the DTRA, can impact your loved ones’ financial future. Whether this act passes or not, having a comprehensive Life & Legacy Plan ensures your wishes are honored, your loved ones are protected, and your plan works the way you want, regardless of changing tax laws. Don’t leave your loved ones’ future to chance or uncertainty. That’s why when you work with me, we’ll start with a Life & Legacy Planning^Ⓡ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. Then, together, we’ll create a plan for you that prepares your loved ones for whatever lies ahead. Contact us today to get started.

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

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

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

Estate Planning

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

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

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

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

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

The 10 Common Mistakes Parents Make When Choosing Guardians

1) Thinking a Will is Enough

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

2) Planning Only for the Long-Term

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

3) Not Naming a Guardian at All

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

4) Overlooking Backup Guardians

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

5) Choosing Guardians Based on Financial Ability Alone

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

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

6) Assuming Godparents are Legal Guardians

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

7) Not Thinking Beyond Guardianship

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

8) Failing to Communicate Your Wishes

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

9) Not Reviewing and Updating Your Plan

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

10) Naming a Couple Without a Contingency Plan

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

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

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

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

Ready to Protect Your Kids?

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

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

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

Estate Planning

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

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

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

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

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

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

The Modern Challenge of Asset Tracking

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

For instance, you may have:

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

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

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

The Real Consequences of Poor Asset Tracking

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

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

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

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

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

The Life & Legacy Planning Solution

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

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

Personal Resource Map

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

Regular Reviews and Updates

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

Secure Documentation

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

Clear Communication Plan

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

Peace of Mind in a Complex World

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

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

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

Estate Planning

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

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

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

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

Understanding FDIC Insurance: Your Financial Safety Net

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

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

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

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

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

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

When Your Savings Exceed FDIC Limits: Strategic Approaches

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

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

Multiple Bank Strategy: Dividing Your Financial Pie

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

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

Utilizing Different Ownership Categories: Maximizing Protection at One Bank

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

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

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

Certificate of Deposit (CD) Laddering: Timing Your Protection

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

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

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

Considering Credit Unions: An Alternative Safety Net

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

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

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

Looking Beyond Traditional Banking: Additional Options

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

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

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

Bringing It All Together: Creating Your Protection Plan

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

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

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

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

Securing Your Financial Legacy for the Future

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

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

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

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

Estate Planning

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

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

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

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

Some of the questions you should be asking:

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

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

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

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

The Legal Reality for Unmarried Couples

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

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

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

The Unmarried Couple’s Estate Planning Checklist

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

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

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

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

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

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

✔ Providing for Your Children

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

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

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

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

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

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

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

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

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

✔ Healthcare Decisions and End-of-Life Care

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

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

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

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

✔ Digital Assets and Modern Considerations

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

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

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

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

Don’t Leave Your Future to Chance

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

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

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

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

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

Your Next Steps for Peace of Mind

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

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

Estate Planning

A Step-by-Step Guide To Funding Your Trust

Post author By Sara Thomas
Post date March 17, 2025
No Comments on A Step-by-Step Guide To Funding Your Trust

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

Why Funding a Trust is Essential

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

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

Step 1: Identify the Assets to Transfer

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

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

Step 2: Re-title Your Assets

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

1. Real Estate

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

2. Bank and Investment Accounts

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

3. Personal Property

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

4. Business Interests

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

Step 3: Designate Beneficiaries

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

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

Step 4: Update Beneficiary Designations

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

Step 5: Review and Update Your Trust Regularly

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

Step 6: Consult with Professionals

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

We’re Here To Ensure a Smooth Transition

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

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

Estate Planning

The Unexpected Challenges of Being an Estate Executor

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

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

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

Let’s get to it.

The Unexpected Financial Burden

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

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

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

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

Drowning in Documentation

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

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

Navigating the Family Dynamics

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

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

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

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

How I Help Make the Process Easier

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

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

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

Estate Planning

Missing Assets: Why Estate Planning is More Than Just Documents

Post author By Sara Thomas
Post date February 19, 2025
No Comments on Missing Assets: Why Estate Planning is More Than Just Documents

Did you know your assets could become “unclaimed property” and be turned over to the government? It happens more than you think! State governments across America currently hold a staggering $60 billion in forgotten and abandoned assets. And this isn’t just spare change we’re talking about. These are life insurance policies, forgotten bank accounts, uncashed checks, retirement funds, and other valuable assets that have lost their connection to their rightful owners.

I regularly see the consequences of overlooked assets and inadequate estate planning. Let’s explore how assets are lost and become “unclaimed,” how to prevent your assets from ending up in this $60 billion pool, and, most importantly, how to ensure your hard-earned assets reach your loved ones the way you want.

How Assets Become “Lost”

You might wonder how billions of dollars in assets could go missing. The truth is, it happens more easily than you’d think. Think about this: you become incapacitated or die, and someone in your family (either someone you named legally or someone chosen by a judge) has the job of finding all of your assets. Would they be able to find everything? How easy would it be for you to find everything, and you know what you earned, the accounts you set up, when you worked for that one company that set up a retirement account for you, got that insurance policy, etc.

What we see commonly when someone passes away without an updated estate plan (including a comprehensive asset inventory), is that their loved ones often have no idea what assets exist or where to find them. Those assets could eventually end up in state custody instead of going to the people you love. That money could be used to fund your children’s education, an investment in a loved one’s business, or to enhance the lives of the people you love most.

“Traditional” or “old school” estate planning often contributes to the problem. With an estate plan drafted by a financial advisor or lawyer who sells a will or trust rather than a comprehensive plan (or from a DIY tool like cheap legal or AI), you typically receive a set of documents to review and sign. You might take these documents home, put them on a shelf or in a drawer, and never look at them again. There’s usually no inventory of your assets, which means that some of your assets could be lost or overlooked and end up part of that $60 billion in unclaimed property.

Why an Asset Inventory and Regular Review is Crucial

I know that effective estate planning isn’t a one-time event – it’s a lifelong process that includes an inventory of what you have, regular updates to your inventory, and the legal documents that go along with it. My process begins with a Life & Legacy Planning® Session, where you’ll create an inventory of your assets, ensuring nothing gets overlooked or forgotten. This inventory includes not just the obvious assets like your home and bank accounts but also:

Life insurance policies
Retirement accounts from all previous employers
Investment accounts
Business interests
Valuable personal property
Intellectual property rights
Digital assets and cryptocurrency

Digital assets present a particular challenge in today’s world. Cryptocurrency, online banking accounts, social media profiles, and digital business assets can be especially difficult for loved ones to track down and access without proper planning. Many people don’t realize that without proper documentation and access instructions, their digital assets could become effectively lost forever, even if their family and friends know they exist.

I’ll also help you keep your inventory updated when you work with me. I regularly review your Life & Legacy Plan to ensure your asset inventory stays current and properly aligns with your goals, wishes, and values. This comprehensive approach helps prevent your assets from becoming lost so they can go to the people you want in the way you want.

Beyond the Financial Impact

While creating an asset inventory is crucial, my Life & Legacy Planning process goes several steps further. It’s not enough to simply list what you own – you need to ensure these assets are properly titled, beneficiary designations are up to date, and your loved ones know how to access everything when the time comes. I support you with it all. I will also be there for your loved ones when you no longer can.

In addition, there’s another crucial part of planning that’s often omitted from traditional or DIY planning. It’s the realization that the value of many assets isn’t financial. Family photographs stored in the cloud, emails containing important family history, and digital collections of music or art can have tremendous sentimental value. Yet without proper planning, these too can become effectively “unclaimed property” – inaccessible to the very people meant to inherit them. When these invaluable family legacies are lost, they become another kind of unclaimed property, though their value can’t be measured in dollars.

Remember, proper estate planning isn’t just about having the correct documents – it’s about taking all the steps needed to make things as easy as possible for your loved ones. It’s the greatest act of love you can give to the people you cherish most.

Your Next Step

I can help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, regular reviews, and updates to ensure nothing gets lost or forgotten. I’ll also help you create a Life & Legacy Interview so your most valuable assets – your values, traditions, and love – get passed on to the people you love most. Let’s work together to protect your legacy.

Schedule a complimentary 15-minute consultation and learn more about how I can help.

Tags Asset Inventory, Estate Plan, Lost Assets, Personal Family Lawyer, Trust Funding, Unclaimed Property

Estate Planning

4 Estate Planning Myths That Put Your Loved Ones at Risk

Post author By Sara Thomas
Post date February 12, 2025
No Comments on 4 Estate Planning Myths That Put Your Loved Ones at Risk

Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will – a 6% decline from 2023. The Ameriprise survey found that 52% of couples lack estate plans. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action. Let’s examine these misconceptions and their potentially devastating consequences.

Myth 1: “I don’t have enough assets to need an estate plan.”

This dangerously narrow thinking ignores that estate planning isn’t just about financial wealth. It’s about doing the right thing for the people you love so you don’t leave a mess and ensuring your wishes for your care are considered if you cannot decide for yourself due to an accident or illness.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

Ensuring what you DO have goes to the people you want in the way you wish to (and stays out of the court process);
Your children being raised by people you choose;
Your wishes for your medical care are honored if you become incapacitated or if your mind deteriorates;
Only people you trust can manage your finances if you can’t manage your finances yourself and
Leaving your loved ones with your most valuable assets – your values, insights, stories, experiences, and love.

Moreover, a Life & Legacy plan can minimize conflict among your loved ones. By clearly outlining your intentions and ideally getting my support to share them with them, you significantly reduce the chances of misunderstandings or disputes and increase the chances that your resources will be used to create a better future for the people you love.

Finally, a well-designed estate plan will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, and what to do with it when they do find it. It will keep them out of court and conflict.

In short, an estate plan is not a luxury reserved for the wealthy; it’s necessary for anyone who has things that matter and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated), let’s talk soon.

Myth 2: “My spouse and I trust each other completely.”

Ameriprise’s survey reveals that 95% of couples trust each other with finances, and 91% share financial values. When couples don’t plan because they trust each other to fulfill their wishes, they overlook several essential matters.

For instance, trust between spouses doesn’t prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages or minor children.

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parents had planned to provide.

Myth 3: “Estate planning is too expensive.”

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments and the best gifts you can give those you love.

Myth 4: “I don’t need to worry about who would raise my kids.”

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection Plan^Ⓡ, which I support you to create, the decision about who raises your children will be left to a judge – a complete stranger to you and your children. And when a stranger decides who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned raising your children. Even if you have named legal guardians for your children in a prior created will, it’s likely not taken into consideration the six common mistakes I see consistently when people (and even their well-meaning lawyers) name legal guardians without the training around planning for the needs of families with minor kids at home. Call my office if you have a minor child and have named legal guardians but want me to review your plan to see if you’ve made any of the six common mistakes.

Another important consideration is the financial burden on your children’s chosen guardian. If you haven’t created a Life & Legacy plan and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more challenging choice.

A Life & Legacy plan alleviates the potential financial burden on your chosen guardians. It ensures your children receive the care and stability they need during an emotionally challenging time.

Take Action Now to Protect the People You Love

I’ve seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven’t experienced it yourself, you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then, we will work together to create a plan that aligns with your values, goals, loved ones, and most importantly, that works when you need it to.

We call it the Life & Legacy Planning® process. Once you’ve created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Tags Estate Plan, Estate Planning, Estate Planning Attorney, Estate Planning Myths

Estate Planning

Five Essential Steps to Protect Your Loved Ones

Post author By Sara Thomas
Post date February 6, 2025
No Comments on Five Essential Steps to Protect Your Loved Ones

Do you know that uneasy feeling when you think about what everyone you love would do if (and when) something happens to you? That nagging voice reminding you that you still haven’t created a will or trust or updated the estate plan you do have?

As we enter 2025, it’s time to stop pushing those thoughts aside and take action to protect the people you love most. Many people avoid estate planning because they think it will be complicated, expensive, too time-consuming, or emotionally challenging. But the truth is, not having a plan, or having an out-of-date plan, is far more costly – financially, emotionally, and time-wise – for the people you love.

Let’s take a look at five things you can do right now to create lasting peace of mind.

Step 1: Get Financially Organized

One of the biggest challenges people face after losing a loved one is trying to piece together their financial life. Where are all the accounts? What insurance policies exist? What bills need to be paid? Without proper organization, your family could spend months or even years trying to track everything down. Worse yet, anything they don’t find will be turned over to the State Department of Unclaimed Property, where there are approximately $60 billion in lost assets nationwide.

As important as it is, financial organization isn’t just about making lists – it’s about creating a clear roadmap for the people who will handle your affairs when you cannot. This includes documenting all your accounts, insurance policies, important passwords, and key contacts. When your loved ones need access to this information, it should be readily available, updated, and easy to handle. This is why our Life & Legacy Planning process begins with a financial organization, and then our ongoing Life & Legacy Planning service supports you to maintain your financial organization throughout your life, so it’s handled with as much ease as possible for the people you love when something happens to you.

Step 2: Create a Lasting Message for Your Loved Ones

When someone dies, their loved ones often wish they had one more conversation, one more chance to hear their loved one’s voice or read their words. That’s why recording a Life & Legacy Interview is part of our planning process. It’s truly one of the most meaningful gifts you can give the people you love, and who love you.

This message isn’t just about saying goodbye—it’s about sharing your values, hopes, and life lessons. Consider what you want future generations to know about your life journey.

What wisdom do you want to pass down?

What family stories, or even recipes, should be preserved?

While you may think “generational wealth” is just about money, the truth is that people who can learn from the recorded history of past generations have true generational wealth that’s far more irreplaceable than any dollar ever could be.

Your words will become a treasured part of that legacy, offering comfort and guidance long after you’re gone.

Step 3: Learn About Tax Planning

Many people don’t realize that proper estate planning can help minimize or eliminate taxes their loved ones might otherwise have to pay. Without planning, they could lose a significant portion of their inheritance to estate taxes, income taxes, or capital gains taxes.

Strategic tax planning isn’t about avoiding your obligations – it’s about ensuring more of your hard-earned assets go to the people you love rather than the government. Working with a trusted advisor who understands both estate and tax law can help you identify opportunities to protect your loved ones’ financial future.

Step 4: Plan Your Final Farewell (and Your Last Days)

While it might feel uncomfortable to think about your funeral, planning and paying for it in advance is one of the most loving things you can do for the people you love. When you’re gone, they will be grieving. The last thing they need is to make difficult decisions about your funeral while trying to guess what you would have wanted.

By planning ahead, you ensure your wishes are honored and protect the people you love from emotional overspending during a vulnerable time. You can choose and pay for exactly what you want, locking in today’s prices and relieving your loved ones of this financial burden.

Even more importantly, consider how you want to spend your last years, months, or even days and discuss that with the people who will be responsible for your care now. This could be a conversation we can help facilitate if bringing it up or even thinking about it alone feels too challenging or if you keep putting it off. This courageous conversation is one of the best gifts you can give to the people you love.

Step 5: Create a Comprehensive Life & Legacy Plan

All these elements come together in our comprehensive Life & Legacy Planning® process, which guides you to understand the law and how it will apply to your unique situation, considering your family dynamics and assets, so you can make educated and informed choices to ensure your loved ones stay out of court and out of conflict when something happens to you. This isn’t just about creating legal documents – it’s about creating a plan, maintaining it, and ensuring your loved ones know who to turn to when something happens to you.

Creating a Life & Legacy Plan with me includes clear instructions about who gets what, who’s in charge of what, and most importantly, how to find and access everything when needed. It also includes specific directives about what happens if you become incapacitated. In addition, you’ll have the opportunity to outline your memorial service, and we’ll support you to record a Life & Legacy Interview that your loved ones will cherish for the rest of their lives.

The start of a new year is the perfect time to take these essential steps to protect the people you love. Don’t wait until it’s too late – the greatest gift you can give your loved ones is the gift of preparation and peace of mind.

How We Help You Get Started

We help you put these essential protections in place. Through our Life & Legacy Planning® process, we’ll guide you in creating a lasting message for your loved ones, implementing smart tax strategies, planning your final arrangements, getting your finances organized, and creating a comprehensive plan that ensures the people you love stay out of court and conflict. Most importantly, we’ll help you make informed decisions that align with your values and wishes. So don’t delay! Let us help you do the right thing for your loved ones.

Tags Estate Plan, Estate Planning, Financial Planning, Legacy, Tax Planning

Recent Posts

Recent Comments

Archives

Categories