fbpx

Tag: Personal Family Lawyer

Categories
Estate Planning

Shining a Light on Shelley Duvall’s Death and Estate Plan

Shelley Duvall, best known for her role as Wendy Torrance in The Shining, passed away recently at the age of 75. While her acting legacy continues to captivate fans, her passing reveals important lessons about estate planning that everyone can learn from. 

In case you haven’t read about what’s happened to her estate since she died, Duvall’s death left behind unresolved legal matters, especially concerning her long-term partner, Dan Gilroy. Without a will, Gilroy is now navigating a complex legal process to inherit a portion of Duvall’s estate, valued in the six figures. There are valuable takeaways from this situation for those who aren’t movie stars but want to protect their loved ones and assets. Let’s look at what you can learn from Dan Gilroy and Shelly Duvall’s story to ensure you avoid similar challenges in your life and after your death. Remember, these issues were entirely avoidable with the right planning. 

The Importance of a Life & Legacy Plan

The most striking takeaway from Shelley Duvall’s situation is the importance of having an estate plan, particularly a Life & Legacy Plan. This plan, unlike a traditional estate plan, not only outlines the distribution of your assets but also includes your personal values, life lessons, and any other non-financial legacies you wish to leave behind. Without such a plan, your state decides who will inherit your property, and your loved ones must go to court to figure it all out. Anytime you have to go to court, it can be a lengthy, stressful, and expensive process. In addition, someone else who’s a stranger to you and your loved ones (i.e., a judge) makes decisions for you and those you love. So, when you don’t have a Life & Legacy Plan, the distribution of your estate may not align with your wishes. In Duvall’s case, her partner of over 30 years, Dan Gilroy, is left in a position where he has to prove his right to inherit a portion of her assets.

Creating a Life & Legacy Plan ensures that your wishes are fulfilled after you’re gone. Whether you’re married, single, or in a long-term partnership, having a plan that clearly outlines who gets what can save your loved ones from confusion, frustration, and heartache. Contrary to what you may think, it’s especially important for those who don’t have children, as the distribution of assets can become even more complex. 

In Duvall’s case, her three brothers may end up with a significant portion of her estate, which may not have been what she wanted. You can prevent these uncertainties by making a will that reflects your true intentions.

Consider Your Unmarried Partner’s Rights

Life & Legacy Planning becomes even more critical for couples like Duvall and Gilroy, who lived together for over 30 years without being legally married. Gilroy is now trying to prove that he and Duvall were, in fact, in a common-law marriage so he can claim a share of her estate. 

Common-law marriage, recognized in Texas where they lived (but not in all states), requires specific legal standards to be met. These standards include proving that the couple agreed to be married, lived together as a married couple, and presented themselves as husband and wife to others. Without this proof, Gilroy may receive little to nothing from Duvall’s estate. I can’t imagine this is what Duvall wanted.

If you’re in a long-term relationship but not legally married, you should think carefully about what might happen to your assets when you pass away. When you work with me, I’ll help you make choices that are right for you. Then, together, we’ll create a Life & Legacy Plan that reflects your wishes. If you’re unmarried but have a partner you’d like to inherit your assets, we’ll create a plan that documents your relationship and makes it easier to prove if needed. In Duvall’s case, a Life & Legacy Plan would have simplified the legal process for Gilroy.

Address Mental Health and Capacity in Your Planning

Another issue that may come up in Duvall’s estate battle is her mental health. In the years leading up to her death, there was public speculation about her mental state, including a controversial interview with Dr. Phil in 2016, where she displayed erratic behavior. This may raise questions in court about whether she had the capacity to fully understand legal agreements, such as marriage, or whether Duvall had the legal capacity to make the decisions that might come with estate planning. This could be a reason she didn’t have a plan of her own.

If you or someone you love is struggling with mental health challenges, it’s essential to plan early while mental capacity is clear, and can be documented as part of the planning process. This can prevent future disputes about whether a person can make informed decisions. By working with me and creating a Life & Legacy Plan that reflects your wishes, you can help ensure that your estate is handled according to your desires, regardless of future health issues. Duvall’s case reminds us that waiting too long to address estate planning can lead to complications that leave loved ones vulnerable to long legal battles and uncertainty. The key is to start planning as early as possible to avoid such situations.

Don’t Leave Your Loved Ones in a Bind

Shelley Duvall’s passing highlights several vital lessons you can apply to your own life. Whether you have a large estate or not, it’s crucial to have a plan that protects your assets and provides for the people you care about most. By creating a Life & Legacy Plan, considering the rights of an unmarried partner, and addressing potential mental health issues early, you can make sure your wishes are respected after you’re gone. And the best time to protect your loved ones is now.

We help you create a comprehensive Life & Legacy Plan that ensures your assets are distributed according to your wishes and your loved ones are cared for—whether you’re married, in a long-term relationship, or navigating unique mental health concerns. With your plan in place, you can rest easy knowing that your legacy will be preserved and your family will stay out of court and conflict.

Schedule a complimentary 15-minute consultation to find out more. 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

Debunking 4 Common Estate Planning Myths

You might think estate planning is only for the wealthy or too complicated and expensive. These are just a few myths surrounding estate planning that I hear often. In reality, estate planning is critical for everyone, including you, regardless of age or financial status. 

Many people don’t understand what estate planning is – even attorneys sometimes don’t understand it. So, I’ll take this opportunity to set the record straight and debunk some common myths, then explore why you need an estate plan and how to get the right one at the right price.

Myth #1: Estate Planning is Only for the Wealthy

One of the most persistent myths about estate planning is that it’s only necessary if you have significant wealth or valuable assets. 

Estate planning isn’t about the size of your estate; it’s about making sure that when something happens to you – as it will – the people you love aren’t left with a big mess to deal with. 

Consider this: Do you have a bank account? A car? Personal belongings with sentimental value? A life insurance policy? If you answered yes to any of these, you have an estate. But even more importantly, do you have people you care about? Family members who depend on you? Or people you love who will be stuck dealing with your mess if you don’t care for these things while you can. If so, you need an estate plan.

Estate planning is about more than just distributing assets. It’s about making important decisions that will affect your loved ones. For instance:

  • Who will take care of your minor children if something happens to you? And how will they take care of them? 
  • Who will make medical decisions on your behalf if you’re incapacitated? How will they make those decisions?
  • Who will manage your digital assets, like email, social media accounts, or cryptocurrency?
  • Who will make sure your bills get paid?

These questions apply to everyone, regardless of their net worth. By creating an estate plan, you’re not flaunting wealth; you’re taking responsibility for your life and the people you care about. After all, someone will have to deal with these things. It’s unavoidable. You can do it now and make it easy on your loved ones (and have more control over outcomes), or you can procrastinate it or avoid it altogether and leave the people you love with a complicated and expensive mess to clean up if you become incapacitated or after you die.

Myth #2: Estate Planning is Complicated and Expensive

Another common misconception is that estate planning is overly complex and costly. While it’s true that estate planning involves legal documents and careful consideration, it doesn’t have to be overwhelming or break the bank. In fact, we promise to make it as easy as possible for you and within the right budget based on your family dynamics, assets, and needs. 

The complexity and cost of your estate plan will depend on your specific situation and goals. 

Myth #3: I’m Too Young to Need an Estate Plan

You might think estate planning is something you can put off once you’re older, but this is a dangerous assumption. Life is unpredictable, and having an estate plan in place is crucial regardless of your age.

If you’re a young adult, you might have yet to accumulate much wealth, but you still have important decisions to make. For instance:

  • Who will manage your social media accounts if something happens to you?
  • Who will take care of your pets?
  • What will happen to you if you have a small business or side hustle?
  • Who will be responsible for paying off your student loans or other debts?

Moreover, estate planning becomes even more critical if you’re a young parent. Your estate plan can designate guardians for your children and set up trusts to manage any assets they might inherit. These provisions are necessary for the court to decide who raises your children, leading to family disputes and potentially placing your children with someone you wouldn’t have chosen.

Even if you’re single with no dependents, an estate plan is critical, maybe even more so, because it’s up to you to determine who will care for you if you cannot care for yourself. You don’t want to leave that to a judge to decide. Your plan will ensure your wishes are respected if you become incapacitated, designate who will make medical decisions for you, and specify how you want your assets distributed. This can prevent conflicts among family members and ensure your hard-earned assets go to the people or causes you care about most.

Remember, estate planning isn’t about planning for your death; it’s about preparing for life and the uncertainties sure to come. It’s about taking control of your future and caring for the people and things you love, no matter your age.

Myth #4: Once I Create an Estate Plan, I’m Done

Another common misconception is that estate planning is a one-time event. In reality, your estate plan should evolve as your life changes. Major life events that might necessitate updates to your estate plan include:

  • Marriage or divorce
  • Birth or adoption of children
  • Death of a beneficiary or executor
  • Significant changes in your financial situation
  • Purchase of a home or other major asset
  • Starting a business
  • Moving to a different state

Even if you have yet to experience significant life changes, reviewing your estate plan at least every three years is essential. However, we recommend you review your assets and how they are titled annually. Laws change, and what was optimal a few years ago might not be the best strategy. 

Regular reviews also give you a chance to reconsider your choices. Keeping your estate plan up-to-date ensures it continues to reflect your wishes and provides the best possible protection for your loved ones. Think of it as a living document that grows and changes with you, rather than a static set of instructions. It’s so important that we include regular reviews at least every three years in all our Life & Legacy Plans, and have systems to keep your plan up to date. 

How We Help You Take Action Today

Estate planning is not a luxury for the wealthy, a complex process beyond your reach, or something you can put off until later in life. It’s a fundamental aspect of responsible financial planning that everyone should consider. 

Our Life & Legacy Planning process is specifically designed to start with getting you educated and organized, so we can support you in choosing the right plan for you and your loved ones. We’ll outline strategies for your assets, prepare for potential incapacity, and ensure your family is cared for, even if the unexpected happens. Our approach includes regular reviews to keep your plan current with life changes, and we even help capture family memories and traditions. With our guidance, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. 

When you consider the peace of mind and potential savings in time, stress, and money for your loved ones down the line, Life & Legacy Planning is often the best way to save your loved ones time and money while also creating optimal value and use of your resources during your own lifetime. Think of it as insurance for your legacy—a small cost now can save your loved ones significant trouble and expense later.

Take the first step towards peace of mind–schedule a complimentary 15-minute consultation and learn how we can help you create your personalized Life & Legacy Plan. 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

Navigating End-of-Life Care: Lessons from a Daughter’s Tragic Experience

In an aging society, you might face difficult end-of-life decisions for your loved ones sooner than expected. And when you do, you’ll realize the journey through end-of-life care is rarely straightforward. A recent and heartbreaking story from Maggie Schneider Huston in Newsweek illustrates this. In this article, I’ll highlight key insights from Maggie’s experience and offer practical advice for your situation. 

First, know that an advance directive is a legal document that outlines your wishes for medical care if you cannot decide for yourself. In most states, it also gives authority to a person or people you choose to act on your behalf and ensure your wishes are fulfilled. With that, let’s dive into Maggie’s story. As you read, consider how you might prepare for similar situations in your life or the lives of your aging relatives.

What Happened?

Maggie’s story begins in 2023. Her mom died, and shortly after, Maggie’s father, Terry, revised his will and created an advance directive. He wanted to be entirely prepared for a planned heart surgery he was to have less than three months later. 

His advance directive reflected his desires that he’d been clear about – that he did not want to suffer when his life was coming to an end. He did not want machines to keep him alive. He only wanted to be comfortable. Maggie and her siblings understood and supported their father’s wishes. They gave one of his doctors a copy of his advance directive before the surgery. That doctor later admitted that he hadn’t read it. Terry’s other two doctors did not know he had an advance directive.

After Terry’s heart surgery, his health declined rapidly. As he was lying in the hospital bed, his doctors arguing that he could live with the assistance of machines, he told them that’s not what he wanted. He repeatedly asked for hospice care. Despite Terry’s wishes, his doctors would not order hospice care for him.

Maggie and her siblings quickly got involved and read Terry’s advance directive to the doctors. And after repeated requests, the doctors finally relented. He died shortly after. Even though Terry’s wishes were finally honored, it wasn’t without frustration and heartache for Terry and his family. 

It’s easy to see why the doctors insisted on keeping Terry alive. Their job, after all, isn’t to facilitate death but to promote life (no doubt the fear of being sued for medical malpractice was a factor, too). So it’s not a leap to think that if Terry didn’t have an advance directive, he would still be alive today, subsisting on the assistance of machines at an extreme cost to the family.

So, as Maggie’s story illustrates, having an advance directive is just the first step. You must also ensure that the advance directive is readily available and that your chosen advocates are prepared to fight for your wishes if necessary. It also helps to have a trusted lawyer by your side. 

Advocating for Your Loved Ones

Maggie’s experience with her father shows how important advocacy can be. If you find yourself in Maggie’s situation with a parent or other loved one, here are some strategies you can take to ensure their wishes are honored:

Be prepared to speak up and ask questions. If you need help understanding something, ask for clarification. Don’t be intimidated by medical jargon or embarrassed about asking for explanations.

Ensure that all medical team members have read and understood the advance directive. Don’t assume that because one doctor has seen it, all of them have.

If your loved one’s wishes are ignored, don’t hesitate to escalate the issue to hospital administration or patient advocacy groups. Remember, you’re not just a visitor but an essential part of your loved one’s care team.

Keep a journal or log of all interactions with healthcare providers. Document who you spoke to, what was discussed, and any decisions made. This can be invaluable if there are disagreements or misunderstandings later.

Build relationships with the nursing staff. The nursing staff spends the most time with patients and can be powerful allies in advocating for your loved one’s care.

Consider bringing in outside help if needed. If you feel your loved one’s rights are being violated, this could be a patient advocate, a social worker, or even a lawyer. Read on, and I’ll show you how to get my help and support.

Take care of yourself during this process. Advocating can be exhausting and emotionally draining. Eat well, get enough sleep, and take breaks when needed.

Your role as an advocate can be challenging, but it’s crucial to ensure your loved one’s wishes are respected. You can also prepare for your future so your loved ones have the support they need to advocate for you if the time comes.

How to Help Your Loved Ones Avoid Similar Outcomes

To help your family avoid the challenges faced by Maggie and her siblings, consider the following steps:

Create a comprehensive advance directive and designate a healthcare proxy. This crucial first step involves clearly outlining your wishes for end-of-life care in a thorough Life & Legacy Plan. When you work with me to create your Life & Legacy Plan, I can help you get clear on specific treatments you do or do not want, choose the right people to be your representatives, and ensure they understand and are willing to advocate for your wishes. All these considerations are critically important.

Communicate your wishes openly and distribute your advance directive. Have frank discussions with your family members about your end-of-life preferences. Ensure all relevant family members understand and respect your decisions, proactively addressing concerns or disagreements. Once your wishes are clear, provide copies of your advance directive to your representatives, family members, and primary care physician. I will maintain a copy of your advance directive when you work with me. This wide distribution helps ensure your wishes are known and can be quickly accessed when needed.

Regularly review and update your Life & Legacy Plan. Life circumstances and health conditions can change, potentially affecting end-of-life care preferences. That’s why my Life & Legacy Planning process includes regular reviews of your plan so we can update your plan if needed. This ongoing process of review and update helps ensure that your end-of-life care plans always accurately reflect your current wishes and circumstances and that your plan will work when you and your loved ones need it to.

Finally, remember, end-of-life care isn’t just about how we die – it’s about how we live our final days, weeks, or months. Planning and being prepared to advocate can ensure that this time is as meaningful and comfortable as possible, aligned with your values and wishes. In doing so, you’re providing a final act of love and respect, honoring a life well-lived right up to its very end.

How We Help You Navigate End-of-Life Care

As Maggie’s story clearly illustrates, end-of-life situations can be complex and emotionally challenging. The best time to prepare for these difficult moments is now. We help you create a comprehensive Life & Legacy Plan that ensures your end-of-life wishes are respected, your loved ones are empowered to advocate for you, and your care aligns with your values when needed. Don’t leave your end-of-life care to chance. Let us help you create a plan that works when you and your loved ones need it most.

Schedule a complimentary 15-minute consultation to learn more. 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

A Power of Attorney May Not Be What You Think

If you’ve ever considered planning for your future or helped someone plan for theirs, you’ve probably heard the term “power of attorney.” But do you know what it is? The terms “power” and “attorney” carry weight but may not mean what you think. There are many misconceptions about what a power of attorney is and what authority it gives someone. And no, it doesn’t grant someone a temporary law degree. 

I’ll address the misconceptions about powers of attorney so you know what to do if someone appoints you as their power of attorney. Then, armed with this knowledge, you’ll understand your legal responsibilities so you don’t inadvertently make any mistakes or run afoul of the law.

What is a Power of Attorney?

Let’s start with some background info. If a power of attorney doesn’t confer attorney status, then why is it called that?

Generally speaking, a power of attorney is a legal document granting someone else the authority to act on your behalf regarding your financial life. The term “power of attorney” is a bit of a historical holdover. Originally, powers of attorney were primarily used to appoint lawyers to represent individuals in legal matters. However, the concept has expanded over time to include appointing someone to act on your behalf for various purposes.

So, while you don’t need to be an attorney to hold a power of attorney, the term has continued due to its historical origins. Granting power of attorney is a way to indicate that an appointed person has the authority to act as your agent or representative, similar to the way an attorney would act on your behalf.

There are times when it’s necessary to preserve your assets, especially if you reach a point in life when you are unable to manage your own financial, legal, or healthcare matters, whether from old age, a terrible accident, or simply being out of the country for an extended period. In each of these cases, it’s possible that if you don’t have someone acting on your behalf, problems could occur. Your financial institutions could charge extra fees on your accounts, a fraudster could drain them, and you wouldn’t know it happened; taxes could go unpaid, your property could go into foreclosure, or your credit could be ruined. So, to prevent these horrific outcomes, you want someone else to be able to maintain your financial life on your behalf.

Types of Powers of Attorney

We don’t need to get too much in the weeds here (if you want to get in the weeds, though, read to the end, and I’ll show you how to book a call with me); know that there are different types of powers of attorney, each with its specific purpose. Here are some examples:

General Power of Attorney: This grants the agent broad authority to act on your behalf, including managing your finances and signing legal documents, even if you can handle your affairs. It becomes effective as soon as you execute the document. When might you want this? Say you travel for work, and you and your spouse have decided to refinance your mortgage. You may want your spouse to sign the paperwork on your behalf rather than wait until you’re back in town.

Springing Power of Attorney: This also grants authority to someone to manage your financial and legal affairs. You can execute the document whenever you want, but it doesn’t kick in until you can no longer make your own decisions.

Durable Power of Attorney: This type of general power of attorney remains in effect even if you become incapacitated. Think of it as the General and Springing Powers of Attorney combined.

Limited Power of Attorney: This grants the agent authority to handle specific tasks only, such as managing your property or making healthcare decisions.

Healthcare Power of Attorney: This grants your named agent authority to make medical decisions on your behalf. 

Even though each of these documents operates differently, they all have one crucial thing in common: the agent’s power ends as soon as you die. 

What No One Told You About a Power of Attorney: It Ends With Death

You may mistakenly believe that a power of attorney gives someone the right to access your financial accounts indefinitely. However, a power of attorney is a temporary arrangement that ends when the person who granted the power dies. What does this mean, exactly?

Let’s say your aging mother can no longer manage her affairs, and she executed a Power of Attorney to give you the authority. While she’s living, you can access her bank accounts to ensure all her bills are paid and paid on time. But as soon as she dies, you no longer have the legal authority to access her accounts. If she had a Will or no estate plan, you would have to file paperwork with the probate court and wait for the case to make it through the court system until the judge grants you authority again. In the meantime, if you can’t afford to cover her bills along with your own, you may have to decide to let her bills go unpaid. If she still has a mortgage on her house, for instance, and you can’t pay her mortgage and yours, the bank could begin to foreclose, and you could lose any equity she had. This equity could have been a significant part of your inheritance. 

Going to court can be frustrating and time-consuming, and negative consequences can result if you haven’t planned appropriately. 

The Good News

With some careful planning ahead of time, you can ensure all your bills get paid, and your assets are preserved for your loved ones. The way to do that is by creating a Life & Legacy Plan with a living trust. A trust is a legal arrangement that allows you to transfer your assets to a trustee, who manages them to benefit your beneficiaries. Notably, a trust survives your death, so there’s no disruption in the ability of someone to manage your finances after you die.

You owe it to yourself and your loved ones to ensure your power of attorney, trust, and related estate planning tools are created correctly and updated over time and that you understand the benefits and consequences of your plan. 

How We Help You Preserve What Matters

Understanding the limitations of a power of attorney and the benefits of a trust is crucial for protecting your hard-earned assets. When you work with me to create a Life & Legacy Plan, I’ll empower you with the education you need so you can make the right choices for yourself and your family, that you fully understand how your plan works, and that your family has my support after you’re gone. Once your plan is in place, you can rest easy knowing that your wishes will be honored, your loved ones cared for, and your property protected.

Schedule a complimentary 15-minute consultation to learn more and start your journey toward a secure financial future.

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

Preventing Family Feuds Over Your Personal Belongings

The passing of a loved one is a heartbreaking event, filled with grief and sorrow. However, the aftermath can become even more painful if disagreements over their personal belongings tear your family apart. These disputes, primarily when centered around meaningful objects, can leave lasting wounds that may never fully heal.

But it doesn’t have to be this way. By understanding the emotional weight of possessions, the power of perception and taking proactive steps, you can prevent such heartache and foster a more harmonious grieving process for your family. We’ll explore practical strategies to ensure your final wishes are honored, and your loved ones stay united amidst loss.

Perception Is the Basis for Conflict 

Your personal belongings are so much more than just material objects. They are tangible reminders of your life, personality, and connection to the people you hold dear. These items can provide immense comfort and solace for your grieving family when you’re gone. However, the emotional ties to your possessions can also set the stage for conflict. 

Your family members may have very different ideas about the value and significance of your possessions and how your possessions should be distributed. Emotional attachments to personal property often run deeper than anyone realizes, reflecting unresolved feelings of love, guilt, or regret. These differences in perspective can create tension and resentment and even damage relationships that have lasted a lifetime.

The Value of Open Communication and Thoughtful Planning

To minimize the risk of family feuds over your personal property, one of the most effective things you can do is have open and honest conversations about expectations and preferences long before you’re gone. Here are some strategies to consider:

Start the Conversation Early. While it may feel awkward to discuss such sensitive topics, it’s far better to address them proactively. This allows for a more thoughtful and deliberate discussion of everyone’s wishes. Ideally, these conversations should occur when all parties are calm and emotionally prepared rather than amid grief.

Record Yourself. Don’t underestimate the value of getting on video. Recording yourself explaining your wishes and why can be very powerful, as well as provide clarity and decrease conflict for your loved ones. When you create your estate plan with my firm, we include a Life & Legacy Interview with every plan so that your decisions and their reasons are clear to your family. When there’s no ambiguity, the possibility of conflict lessens.

Make an Inventory. Make a comprehensive list of all your personal belongings, including their sentimental value and any specific requests or wishes you have associated with them. This inventory can be a crucial reference point for your family members after you’re gone. If possible, involve your loved ones in this process so that they understand your wishes and can ensure your voice is heard.

Create a Life and Legacy Plan. A Life and Legacy Plan can minimize disputes by clearly outlining your wishes regarding distributing your personal property. In addition to the Life & Legacy Interview, every plan includes a “personal property memorandum,” which provides additional clarity, specifying which items should go to which beneficiaries. We even help you update your plan to reflect changing circumstances or preferences and prevent family conflict.

Focus on Your Family’s Needs. Ultimately, the goal of your planning should be to honor your memory and support the well-being of your loved ones. Prioritize the needs of grieving people and try to find solutions that minimize conflict and pain. Sometimes, creating a process where each family member can express their attachment to specific items and why they matter can help others understand their emotional value rather than just their monetary worth.

Helping Your Family Sell Your Belongings with Care and Intention

Sometimes, your loved ones may need to sell your personal property, which may be necessary to settle your estate, pay debts, or ensure that your items are put to good use. Whether or not the items sold hold sentimental value, this can be another task ripe with conflict. Further, many family members don’t know what the process entails. But you can help make it easier for them by doing a lot of legwork now.

In your Life & Legacy Plan, you can specify how you want your items sold and outline the process for your loved ones. Here are the steps your family will need to take:

Assess the True Value of Your Items. Start by evaluating the worth of the items to be sold. This may involve hiring an appraiser, especially for valuable items such as antiques, artwork, or jewelry. An appraiser can objectively assess an item’s value, which can help prevent disputes over perceived worth and ensure a fair sale.

Choose the Right Selling Method. Depending on the type and value of your belongings, your loved ones must choose a selling method. A yard sale or estate sale might be appropriate for everyday household items. An auction house, consignment shop, or online marketplace may be the way to go for more valuable items. Your family should also be mindful of any fees or commissions associated with these approaches. 

Enlist the Help of an Estate Sale Company. Hiring a professional estate sales company can be a game-changer if your estate contains many items or your family is overwhelmed by the process. These companies handle everything from pricing items to advertising the sale, managing the event, and disposing of unsold items. They typically charge a percentage of the sales, but their expertise can make the process smoother and less stressful.

Understand the Legal Requirements. Depending on your jurisdiction, specific legal requirements for selling estate property may exist. For example, an executor may need court approval to sell certain assets or follow particular procedures for notifying beneficiaries. When you create your Life & Legacy Plan with us, we will be there for your family when you no longer can be, and we can advise them on all the necessary legal requirements. 

Plan for the Proceeds. Decide how the sale proceeds will be used and document your wishes in your Life & Legacy Plan. We can help you specify whether they will be distributed among your heirs, used to pay off estate debts, or donated to charity. 

Leave a Legacy of Harmony, Not Conflict

Your loved ones deserve to grieve with dignity and respect, not embroiled in bitter disputes. Take the time now to put the proper measures in place, and you can rest assured that your final wishes will be honored and your family will stay out of court and conflict after you’re gone.

This is the legacy you can leave behind – not just the material objects you’ve accumulated over a lifetime, but the gift of harmony, understanding, and compassion for those you hold most dear. 

Family disputes over personal property can cause significant pain and tension at a time when loved ones should come together. We help you create a Life & Legacy Plan that ensures your belongings are distributed according to your wishes without conflict or confusion. With careful thought, clear communication, and the right tools, your Life & Legacy Plan will unite your family, even amid grief. And you’ll gain the peace of mind knowing that your wishes will be honored and your loved ones will be supported long after you’re gone.

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

Matthew Perry’s Estate Plan Demonstrates the Benefits of Trusts

When Matthew Perry, the beloved star of Friends, passed away last year, the world mourned the loss of a comedic icon. However, as details of his estate began to emerge, a curious puzzle presented itself: despite his reported net worth of $120 million, his bank account held (only) $1.5 million. Admittedly, this seems like a whopping sum to most of us, but this amount appears off for a man who earned millions of dollars for just one episode of the show. Shouldn’t he have had much more money than that? The answer lies in the details of estate planning and using trusts as part of your plan.

In this article, we’ll look at Perry’s estate plan and pull out some valuable lessons. These lessons pertain to all of us, not just the rich and famous. To find out how trusts can benefit you, read on.

What is a Trust?

A trust is simply a legal arrangement where a person (sometimes called a “settlor”) transfers assets to someone ( a “trustee”) who manages those assets for the benefit of someone else (the “beneficiaries”). Many types of trusts can be used for various purposes, including estate planning, asset protection, and providing for loved ones.

The trustees appointed to manage a trust play a crucial role in fulfilling the settlor’s wishes. Choosing the right trustees is essential for the effective management of a trust. Trustees should be trustworthy, financially responsible, and knowledgeable about estate planning. They should also be willing to devote the time and effort required to manage the trust’s assets. 

In Perry’s case, it appears he established a trust during his lifetime. This trust, which seems to be named the Alvy Singer Living Trust—Woody Allen’s character in Annie Hall—presumably holds a significant portion of his wealth. In Perry’s case, the trustees were likely responsible for managing his investments, paying bills, and distributing money to the beneficiaries. 

Why would Perry have chosen to establish a trust? There are many benefits, which I’ll break down in greater detail now.

The Power and Benefits of Trusts

There are many advantages to using a trust for estate planning. Here are some of the most common.

Protection from creditors and lawsuits. If a beneficiary faced financial difficulties, their creditors would generally not have access to assets held in a trust. 

Ongoing support during life, incapacity, and after death. Trusts can provide for loved ones more flexibly than a will. A will is a legal document that outlines how your assets will be distributed after your death. However, a trust can be structured to provide support during your life and for your beneficiaries over time, ensuring their needs are met. If you have a will, your assets will usually be transferred to your beneficiaries – even if they are young or financially irresponsible. 

Minimization of estate taxes. Depending on the size of an estate, there may be significant federal and state estate taxes. A trust can reduce or eliminate these taxes.

Court avoidance. A court process called probate takes place after someone dies, and it can be expensive, lengthy, and conflict-laden. If you have a will or no estate plan, court is mandatory. However, the court process may be avoided if you have a trust. This results in less expense, less time, and a decreased probability of conflict. It’s also a public proceeding, and court filings contain personal and financial information you may not want others to see. 

Conflict avoidance. The court process is set up to give all heirs and creditors a claim to your assets. They are invited to file a claim and get to see information about your assets. 

Greater control over what happens to your assets and your family. When you have to go to court, someone other than you – a judge who’s a stranger to you and your family – will make all final decisions about your money, property, and family. But with a trust, you can make those decisions and exercise control over the outcomes.

Preserving assets when there’s a substance abuse issue. It’s no secret that Perry struggled with substance abuse for much of his life, and it’s possible that because of that, he was advised to create a trust to hold his assets. This was a wise decision. Substance abuse can have a significant impact on financial stability, and it is possible that Perry sought to protect his assets from loss, either by his actions or potential creditors and legal issues related to his addiction. You can do the same for a friend or relative if you want to support them and know they struggle to manage their finances responsibly.

These advantages apply to you, too! You do not need to be wealthy to want a trust. You do not have to be charitable or famous to take advantage of the benefits. 

The Appeal of Privacy

Remember when I mentioned above that the court process is public? I also noted that a trust can help you and your family avoid court and its very public nature. If you were wondering, “If it’s true Matthew Perry had a trust, then how come it’s public knowledge that he had $1.5 million in his bank account?” Then kudos! You caught on to something important.

Matthew Perry also had a will, and wills go through probate. Any assets not placed into a trust must be dealt with via your will and, thus, are subject to the court process. Remember when I mentioned that court filings must contain your personal and financial information? That’s how we know about Matthew Perry’s bank account. The funds in his bank account were ostensibly not placed into his trust and are subject to the public probate process. You can look up the court records and read his will – or any will – for yourself. 

His will mentioned that he had trust, which is also common. It doesn’t mention the terms of the trust, who the beneficiaries are, what his other assets are, and who gets what. Our public knowledge is limited to what’s in his will. And if his bank account had been placed into his trust, it would have been kept private, too.

In short, assets placed into a trust are kept private, as is your personal and financial information. Assets left out of a trust are public knowledge. So, when you create a trust, you mustn’t just draft and sign the document and call it a day. You must take the next step and correctly place your assets into the trust. If you don’t do that, you lose all the benefits the trust offers. 

How We Help You Protect What Matters Most

As more details about Perry’s estate emerge (and sadly, his death), we may better understand his intentions and the legacy he will leave behind. While his untimely passing is a tragic loss, his estate planning offers a fascinating look at the advantages of trusts and how you can also take advantage of them. 

We help you create a comprehensive Life & Legacy Plan that may include tools like trusts to protect your assets, maintain your privacy, and ensure your loved ones are cared for—without the headaches of court or the increased chances of conflict. By planning today, you can have peace of mind knowing your wishes will be honored, your family’s future will be safeguarded, and your legacy will be kept private.

Schedule a complimentary 15-minute consultation to learn more. 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

3 Questions to Ask Yourself Before Creating Your Estate Plan With AI

Have you jumped on the AI bandwagon yet? If so, you’ve probably used it to make your life easier. AI can be incredibly helpful, especially when the stakes are low. Need a personalized meal plan or an exercise routine? AI can handle that. But when it comes to estate planning, some people use AI for what they believe to be a simple and cost-effective solution. 

The allure of Do-It-Yourself estate planning through AI is strong, especially when you think your situation is straightforward. You may also think you have little money, so your circumstances aren’t complicated. Both of these beliefs are extremely common – and rarely true.

Here’s the truth: estate planning is not just about creating a set of documents, and it’s almost always more complicated than you think. To do it effectively, it must be personalized to fit you, your family dynamics, and the specific types of assets you have. But unless you’re an expert, you don’t know how your circumstances apply to the law and your values – or how your estate plan should be structured to fit the law and your values. AI cannot do any of this. And if you get it wrong, there are legal (as well as financial) consequences. You need a human to guide you, a human who understands you, your family, your assets, your wishes and desires, and how all these things work together with current law. 

So before you’re tempted to use AI for your estate plan, ask yourself the following three questions. Then, consider your answers before turning to AI or any other free or cheap legal service. If you’ve already done your estate plan, these questions are essential for you, too. 

Question No. 1: What Matters?

First and foremost, who or what matters most to you? When you’re creating a legal plan for what happens if you become incapacitated and when you die, the place to start is by getting clear on what matters. Is it the money you’ve worked hard to earn, or is it the people around you and the relationships you’ve nurtured? Most likely, it’s the people. 

Think about this. How are you affected when a loved one passes away? You’re probably filled with grief, and their absence leaves a void in your life. While their money can ease financial strain, the memories and the love you shared truly matter (this is their “legacy”). Your loved ones will feel the same way after you’re gone. What will your legacy be? 

Imagine that your family is left to deal with a significant legal and financial mess after you’re gone, all because you didn’t create an estate plan or created one that failed. Are you ok with that being your legacy? Does it matter that people must spend time away from work and their lives to manage your affairs? And what if they ended up fighting or estranged? Does that matter to you? 

What about your assets? Does it matter to you if your estate has to pay unnecessary taxes or if your assets get lost and turned over to your State’s Department of Unclaimed Property? Or do you care about supporting a cause you believe in or supporting a family member who needs help? 

When you create a Life & Legacy Plan with our office, you gain the power to influence these outcomes in a way that AI cannot do. But first, get clear on what truly matters to you.

Question No. 2: What’s It Worth?

Once you’re clear on what matters, the next question is: what are those things worth? How important is it to preserve your family’s relationships, for example? How important is it that your assets don’t get used to pay taxes when there’s an option to give them to your loved ones? It’s critical to know not only what’s important but how important it is so you know how much time, energy, attention, and money to dedicate to it. 

One of the main reasons people may use AI to draft their estate plans is that they think estate planning is simple. However, estate planning is much more complex than most people realize. Even licensed attorneys who practice estate planning often find themselves overwhelmed by the intricacies of the law, which changes regularly and varies from state to state. AI is a one-size-fits-all approach that doesn’t take into account the complexities. So, if you rely on AI, you’re leaving a lot to chance. Is it worth it to you to take a chance on what matters? There is no wrong answer here; it may be yes, or it may be no. The key is that you’re being true to yourself.

Question No. 3: Is AI Actually Cheaper and Easier?

And now we’re at the third and final question: is AI or Do-It-Yourself legal cheaper and more accessible than working with an expert? If the program makes a mistake in your estate plan and your family ends up in court, embroiled in conflict, with relationships irreparably broken, was it worth the supposed savings? What if your assets were lost to the government, eaten up by unnecessary taxes, or depleted by lawyers’ fees and court costs due to litigation? 

When you weigh the potential costs—financial, emotional, and relational—against the upfront savings you might achieve by using AI, the true worth of those things that matter to you becomes more apparent. You see that estate planning is about much more than just money; it’s about protecting the people you love and ensuring your legacy is honored as you intend. 

You and Your Family Deserve More Than a Quick and Cheap Fix

The way to ensure that your plan works when you and your loved ones need it to and saves you and your family money is by working with me to create a Life & Legacy Plan. With my Life & Legacy PlanningⓇ process, I’ll guide you to get clear on what matters; together, we’ll create a complete plan that honors your wishes and creates a loving legacy at a price that fits your budget. When it comes to something as important as your estate plan, it’s worth taking the time to do it right. Your legacy deserves more than a quick fix—it deserves the thoughtful attention of someone who understands your unique situation and can help you navigate the complexities of the law to achieve your goals.

We understand that estate planning isn’t just about the documents you sign or the money you leave behind. It’s about ensuring that the people and things that matter most to you are protected and honored in the way you intend. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your legacy preserved. 

Schedule a complimentary 15-minute consultation to learn more. 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 Relying On Beneficiary Designations Put Your Family at Risk (And How To Fix It!)

You’ve worked hard to build your assets and secure your family’s future. Like many responsible adults, you’ve named beneficiaries on your retirement accounts, life insurance policies, and maybe even your banking and investment accounts. It feels good to know you’ve put something in place for your loved ones. 

While beneficiary designations serve a purpose, they’re not a comprehensive estate planning solution. Relying solely on them can lead to unintended consequences and potential financial disasters for your loved ones. Let’s delve into why beneficiary designations fall short and the risks you may unknowingly take with your family’s financial future. 

The Dangers of Naming Minor Children As Your Beneficiaries 

You love your children and want to ensure they’re cared for if something happens to you. Naming them as beneficiaries on your accounts is a straightforward way to achieve this goal. However, this approach can backfire spectacularly when your children are minors.

Designating a minor as a beneficiary creates a legal and financial predicament. Financial institutions cannot hand over large sums of money to children, so the court will likely appoint a guardian to manage the funds. This process can be time-consuming, expensive, and may not align with your wishes.

Even more concerning is what happens when your child reaches the age of majority, typically 18 or 21, depending on your state. At this point, they gain complete control of the inherited assets. Ask yourself: Is your 18-year-old ready to manage a six or seven-figure life insurance policy? What about your retirement account? For most young adults, the answer is a resounding no.

Imagine your child receiving a windfall at an age when they’re still learning to navigate adult responsibilities. They might make impulsive financial decisions, fall prey to manipulative friends or partners, or simply lack the maturity to handle sudden wealth. By relying solely on beneficiary designations, you’re potentially setting your child up for financial mismanagement or even exploitation. It’s a sobering thought that underscores the need for comprehensive planning.

When a Beneficiary Dies Before You

Life is unpredictable, and tragedy can strike at any time. While it’s uncomfortable to contemplate, your named beneficiaries may predecease you or die with you in an accident. This scenario can throw your estate into chaos if you’ve relied entirely on beneficiary forms.

When a named beneficiary dies before you, the fate of those assets becomes uncertain. Some accounts may have provisions for contingent beneficiaries, but many people neglect to name backups. In other cases, the asset may revert to your estate, potentially subjecting it to probate – a time-consuming and potentially expensive legal process you likely wanted to avoid by using beneficiary designations in the first place.

The situation becomes even more complex if you and your primary beneficiary die simultaneously or in quick succession. In such cases, determining the order of death can have significant implications for how your assets are distributed. Without a comprehensive estate plan, your assets may go to unintended recipients or get tied up in lengthy legal battles.

Establishing a will or trust can create a chain of inheritance that accounts for multiple contingencies, ensuring your assets are distributed according to your wishes regardless of the circumstances. This level of control and reassurance is a key benefit of comprehensive planning.

The Risks of “Set-It-and-Forget-It” Planning

Life is dynamic and filled with changes, both big and small. Your financial situation evolves, relationships shift, and laws change. Yet, all too often, people treat beneficiary designations as a “set it and forget it” solution. This static approach to estate planning can lead to severe problems.

  • Consider how much can change over a few years or decades.
  • You may divorce or remarry, dramatically altering your family structure.
  • Children grow up, and your relationship with them may change.
  • Your financial situation could improve significantly, making previous designations inadequate.
  • Tax laws and regulations around inherited assets may be revised.
  • You might develop new philanthropic interests or want to include charitable giving in your legacy.

If you don’t regularly review and update your beneficiary designations, they may no longer reflect your current wishes or circumstances. It’s not uncommon for people to unknowingly leave substantial assets to ex-spouses or estranged relatives simply because they failed to update their beneficiary forms. 

In addition, beneficiary designations don’t allow for the nuanced distribution of assets that many people desire as their wealth grows. You should establish conditions for inheritance, protect assets from creditors, or provide for family members with special needs. These complex wishes simply can’t be accommodated through standard beneficiary forms.

The Peace of Mind That Comes From Careful Planning

To truly protect your legacy and ensure your wishes are carried out, you need a Life & Legacy Plan rooted in education about what would happen to you, your family, and your assets if you become incapacitated and when you die. From there, we craft a plan that reflects your wishes, works when needed, and fits within your budget. This might include a will, one or more trusts, powers of attorney, healthcare directives, and carefully considered beneficiary designations. When we complete your original Life & Legacy Plan, you’ll have peace of mind knowing that it will:

  • Protect minor beneficiaries and ensure assets are managed responsibly;
  • Provide for multiple contingencies, including the death of beneficiaries;
  • Minimize taxes and avoid probate when possible;
  • Reflect your values and complex wishes for asset distribution;
  • Adapt to changes in your life, finances, and the legal landscape.

Don’t leave your legacy to chance or expose your loved ones to unnecessary financial risks. Your family’s future security is worth the time and monetary investment in proper planning. Remember, a truly effective estate plan is a living document that grows and changes with you, providing peace of mind today and security for generations to come. 

Know, too, that if you’ve already created your Life & Legacy Plan with me, keep an eye out for reminders to review and update your plan. If you know that you need to update your plan before we remind you, don’t hesitate to call us immediately.

Schedule a complimentary 15-minute consultation to learn more about how we support you. 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

Would $23,000 Make a Difference to You?

Imagine discovering thousands of dollars that belong to you, only to be told you can’t have it. This frustrating scenario became a reality for a woman named Dale Benerofe, a Georgia resident when she found $23,000 in unclaimed property from her deceased parents. Her tragic story sheds light on a little-known issue that affects millions of Americans: unclaimed property. 

In this article, you’ll discover what unclaimed property is, how to find it, and why proper estate planning could have ensured Ms. Benerofe received her inheritance. But before we dive into her story, let’s clarify what unclaimed property is and how it could impact you and your family. 

What Is Unclaimed Property?

Unclaimed property refers to financial assets that have been abandoned or forgotten for a specific period, typically three to five years. The financial institutions can’t hold on to your money indefinitely. If no one comes forward to claim the assets, the law requires these assets to be turned over to the state for safekeeping. 

Typical forms of unclaimed property include:

  • Forgotten checking or savings accounts
  • Uncashed dividends or payroll checks
  • Abandoned stocks, bonds, or brokerage accounts
  • Unclaimed life insurance proceeds
  • Refunds and trust distributions
  • Forgotten certificates of deposit and annuities

It’s a startling fact that these assets often go unclaimed because someone dies and their loved ones have no idea that the assets exist. This is a more common occurrence than you might think, with approximately $60 billion across the US remaining unclaimed. 

Consider your reality for a minute. If something happened to you tomorrow, would your family know exactly what you have and where to find it? Are you confident they wouldn’t miss something? If you’re like most people, the answer is no, you aren’t sure. What you are likely specific about is that your family would overlook some of your assets if you were to become incapacitated or die tomorrow. And, if they did, those assets could either disappear entirely or end up in your state’s department of “unclaimed property.”According to the National Association of Unclaimed Property Administrators, approximately one in seven Americans has some form of forgotten property owed to them. As of this writing, the total amount of unclaimed property nationwide is between $50 billion and $70 billion. You read that right. Billions of dollars. With a sum that high, it’s easy to see how it’s possible you, too, may have unclaimed property belonging to you.

What the Process Looks Like

Finding out if you have unclaimed property can be an arduous process. Even though you can search online, you’ll go through many steps before (or if) you can receive your money. Here’s what the process looks like:

Step 1—Check multiple states. Search for your residence and any other states where you’ve lived, worked, or conducted business. 

Step 2 – Search variations of your name. Try different spellings and include your middle name or initial to ensure a thorough search. If your name has changed over the years, you must also check your former names. Again, search all variations of your name in states where you’ve lived, worked, or conducted business.

Step 3 – File a claim. If you find property owed to you, you must file a claim form (usually online) with the state holding your assets. You’ll need to file a form in every state where your assets are held; there is no one-form-to-rule-them-all.

Step 4 – Gather documentation to prove your identity and the identity of your loved one(s). Be prepared to provide documentation to prove your identity and your right to the property. This may include proof of address (at any address you’ve lived), proof of name change, or proof of marriage or divorce. You’ll need to provide similar documentation for your loved ones if you have a claim to their property.

Finally, be patient. Depending on your claim’s state and complexity, the claim process can take weeks, months, or even years.

A Real-Life Experience and Cautionary Tale

Even if you take the above steps to find the property and make a claim for it, you may need help to receive the money rightfully owed to you. This is what Dale Benefore’s story can teach us.

Ms. Benefore discovered $23,000 that had belonged to her parents and should have been passed on to her after their deaths. She was surprised and excited because that sum would have made a significant difference to her and her family. So, in May of 2023, she filed a claim for the money with the State of Georgia’s Department of Revenue. As requested by the State, she provided her parents’ death certificates and other documentation proving their deaths. However, when the department requested her father’s driver’s license, she couldn’t offer it. It had been long gone. 

As of this writing – more than a year since Ms. Benefore filed her claim – she’s still fighting for her money. She’s frustrated, saying the process has been time-consuming and disheartening and that this is not what her parents would have wanted for her. In a news interview, she claimed her “mom would be livid” if she knew what Benefore had been through.

The Easy Way to Ensure Your Assets Aren’t Lost 

There’s an easy solution to this problem and a way to ensure no assets get lost and turned over to the government. It’s called Life & Legacy PlanningⓇ, and it’s the type of estate planning I do. A well-crafted Life & Legacy Plan includes a comprehensive inventory of assets that stays updated so your loved ones know exactly what you have when something happens to you. If her parents had had a Life & Legacy Plan, Ms. Benefore would have received the $23,000 years ago, without the time and stress of fighting with the State of Georgia. This is a powerful tool that can empower you to take control of your financial future. 

My Life & Legacy Planning process starts with education about what would happen to the assets you have, and how you want them distributed after you die. From there, we’ll go through the many options available to you so you can pick the right plan that works for you and your family. 

We work with you throughout the planning process to create a thorough inventory of your assets kept private (maintained and updated throughout your life) until your family needs it. With a Life & Legacy Plan, you have peace of mind knowing that your loved ones can’t access your money while you’re alive (unless you want them to), but they’ll also be able to get to it quickly after you’re gone. No worrying about losing your hard-earned money to the government. 

If you’ve already created your Life & Legacy Plan with us, you know how important it is to keep your asset inventory updated, so keep an eye out for our reminders to review and update your plan. However, if you know now that you need to update your plan due to a life change or a change to your assets, don’t hesitate to call us immediately.

Ready to Secure Your Assets? We Can Help

There is way too much money in the State Treasury Departments not to take notice. But by reading this article and educating yourself, you’re already on the path to protecting your assets for your loved ones. We can guide you the rest of the way. 

We help you create a Life & Legacy Plan so that your plan works when your family needs it. Once you’ve made your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. It’s the last and greatest gift you can give to those you love most. 

Schedule a complimentary 15-minute consultation to learn more. 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

Would You Make This Million Dollar Mistake?

Imagine this: You’re in your twenties, just starting your career. You fill out a form at work, naming your live-in significant other as the beneficiary of your retirement account. You start contributing to your retirement account, and it begins to grow. Fast-forward 28 years—you’ve long since ended that relationship, lived a full life, and then died. But you never changed that beneficiary designation, and now that ex-partner is entitled to your million-dollar retirement nest egg, leaving your family with nothing. This situation, if not addressed, could lead to significant financial loss for your loved ones. 

Does this sound far-fetched? It’s not. This is precisely what happened in a high-profile lawsuit involving Margaret Losinger, her former boyfriend, Jeffrey Rolison, his estate, and Proctor and Gamble, the Company he worked for during those 28 years. The lawsuit, which gained national attention, serves as a cautionary tale about the importance of updating beneficiary designations.

Here’s a closer look at this shocking real-life story, the lessons we can learn, and how having a trusted advisor at every stage of life can protect you from making a million-dollar mistake like this or any other errors you might be overlooking. 

What Happened?

In the 1980s, Jeffrey Rolison dated Margaret Sjostedt, and the two lived together. Rolison worked at a Procter & Gamble (P&G) plant, where he signed up for a profit-sharing and savings plan. In 1987, he listed Sjostedt as the sole beneficiary of his retirement account. The relationship ended two years later, and both moved on. Sjostedt eventually married, taking on the last name Losinger. 

Rolison, however, never updated his beneficiary designation on his retirement plan. In 2015, Rolison passed away at age 59, single and childless, with no will and no guidance on who should inherit his assets. His retirement account, which had grown to $1.15 million, was still designated to Losinger, nee Sjostedt.

Rolison’s brothers, Brian and Richard, were shocked when they learned that Losinger was the beneficiary of Rolison’s retirement account. They believed their brother wouldn’t have intended for his long-ago ex-girlfriend to receive his retirement savings. The brothers filed a lawsuit against P&G and Losinger in 2017, trying to get the money directed to Rolison’s estate. 

On April 29, 2024, an appeals court issued an order, ruling that Losinger was entitled to the money. After fighting for four years, Rolison’s family lost their claim, the million dollars in Rolison’s retirement account, and all the legal fees and court costs invested in the fight. Because we have no doubt you wouldn’t want this to happen to your family, read on. 

Why Even “Simple Estates” Require Trusted Guidance

Before we go on, I’ll clarify estate planning, how beneficiary accounts factor in, and why you likely need the guidance of a trusted advisor, even if you think you don’t have an estate, your estate is “simple,” or you don’t really need an estate plan. Even if you don’t consider yourself wealthy or think your estate is straightforward, you still need an estate plan to ensure your assets are distributed according to your wishes. 

What estate planning is. Many people consider estate planning something only needed by the wealthy or the elderly. As you can see from this case, that’s just not true. Rolison wasn’t rich when he named Losinger as the beneficiary of his retirement account. And he probably wasn’t wealthy when they broke up. Nevertheless, not having an estate plan or the trusted guidance he would have needed to know what he needed, he made his ex-girlfriend a wealthy woman and cost his siblings a lot of time and money in the process.

At the most basic level, estate planning is about ensuring all of your assets pass to the people you want in the way you want, with the proper guidance and support to ensure that happens with the least effort, cost, and mess possible. It’s also about ensuring that if you become incapacitated, your wishes are known, honored, and able to be followed with the least cost and the most privacy possible. 

Most importantly, estate planning is about your choices and your freedom. So, how important is it to you that you have a say in what happens to you, your hard-earned assets, and your loved ones when the time comes? If it’s important, you need an estate plan. It’s truly as simple as that. Otherwise, the government gets to decide on your behalf. When you create an estate plan, your wishes override the government’s plan for you and your loved ones. 

How Beneficiary-Designated Accounts Factor Into Your Estate Plan

Beneficiary-designated accounts—like retirement accounts or life insurance—are part of your estate plan. Beneficiary designations override the government’s plan for you and, if you created one, whatever you might have written in your will or trust. 

From the case I shared here, we learn that Rolison did not have a will, but it would not have made a difference even if he had. Beneficiary designations come before any will or trust, even if you made the designations years ago. 

Beneficiary forms are powerful documents. They determine who gets your retirement accounts, life insurance policies, and bank accounts, often taking precedence over your will. If you filled out a beneficiary form years ago and still need to update it, the person named on it will likely receive the assets, regardless of your current wishes. So, the biggest takeaway from the Rolison/Losinger story is that beneficiary accounts are an integral part of your estate plan and should be reviewed regularly. This is why we include a review of your accounts, beneficiary designations, and an inventory of your assets – plus, we have to update programs for ongoing review – in all of our Life & Legacy Plans.

Why You Need Regular Reviews of Your Accounts and Beneficiary Designations

Rolison’s case highlights that it’s easy to forget about your beneficiary designations, especially if they were filled out years ago. However, the case also tells us that neglecting to update your accounts can lead to unintended consequences and legal battles for your loved ones. Regular reviews of your accounts and beneficiary designations can prevent such situations, making you feel proactive and in control of your financial future. 

In Rolison’s case, his brothers argued that P&G failed to inform him about his beneficiary designation adequately. They claimed the company provided insufficient warnings when it changed service providers and in its monthly statements. However, most companies do not remind you to review and update your beneficiary accounts. When was the last time your bank reminded you to review the beneficiary designations on your checking account (if ever)? What about your life insurance company? And if not, have you taken it upon yourself to check your beneficiary designations regularly? Your life is busy enough. Is this a priority? 

If not, it should be. In its decision, the court stated that it ruled in favor of P&G and Losinger because the individual is responsible for keeping beneficiary information current. 

How Accountability Makes All the Difference

Your life is busy. Sometimes, making it through the day with all your responsibilities can be challenging. Probably the last thing on your mind is planning for your death and incapacity. The second-to-last thing is reviewing and updating your beneficiary accounts. You’re probably thinking you can do it later.

But the truth is this: “later” could be tomorrow. We all know we will die; we just don’t know when. Death doesn’t care about your age or how busy you are. I’m not saying this to scare you. It’s a fact, and I want you to be prepared so that what happened to the Rolison family won’t happen to yours. Death doesn’t have to be scary. When you plan for it, you’ll find that you can live your life with more purpose and peace of mind, knowing you’ve done the right thing for your loved ones. 

If this sounds good, know that having a trusted advisor who is there for you throughout your lifetime can make all the difference. That’s why my Life & Legacy PlanningⓇ process includes regular check-ins and reviews of your plan, including your beneficiary accounts. The best part is you never have to think about it alone! Unlike most lawyers who do estate planning, I will remind you regularly to update your plan – and keep you accountable. I’ll also be there for you as life changes so your plan reflects your current wishes. Together, we’ll ensure your family inherits your accounts, not an ex-girlfriend you dated 40 years ago. 

We Do the Heavy Lifting, So You Don’t Have To 

When it comes to planning for your death and incapacity, we do the heavy lifting for you, freeing you to concentrate on your responsibilities to your family, your work, and yourself. We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and that your plan works when needed. Once you’ve made your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, your property protected, and your plan updated throughout your lifetime. 

If you’ve already created your Life & Legacy Plan with us, keep an eye out for our reminders to review and update it. If you know that you need to update your plan due to a life change, don’t hesitate to call us immediately.

Schedule a complimentary 15-minute consultation to learn more.

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.

The August Law PLLC team will work hard to deliver good quality information upon subscription. However, if you decide that you no longer want to receive emails from us, feel free to click the "unsubscribe" button at the bottom of the email received.

The August Law PLLC team will work hard to deliver good quality information upon subscription. However, if you decide that you no longer want to receive emails from us, feel free to click the "unsubscribe" button at the bottom of the email received.