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Estate Planning

Celebrity Estate Plans Series Part 4 of 4: Elvis and the Scammers

For the last few weeks, we’ve discussed celebrities and how they planned for their deaths. We started with the King of Pop, Michael Jackson, so ending our 4-part series with the King of Rock, Elvis Presley, seems fitting. 

Why discuss a man who’s been deceased since 1977? A recent case involving Graceland serves as a stark reminder of the audacity of scammers. This case is a wake-up call for property owners and potential heirs. Let’s delve into this unusual tale to understand how you can assert control over your assets and protect them from unscrupulous actors.

How It Went Down

You might think that a well-known property like Graceland would be untouchable, but that didn’t stop a mysterious company from trying to steal it. A group calling itself Naussany Investments and Private Lending claimed that Graceland’s owners owed them millions from an old loan. They even set a date to auction the property to the highest bidder. But there was just one problem – the whole thing was a scam.

Riley Keough, Elvis’s granddaughter and the current owner of Graceland, quickly fought back. She filed a lawsuit, saying her mother, Lisa Marie Presley, never borrowed money from this company or put Graceland up as collateral. The courts agreed, stopping the sale just in time. Keough’s swift action got the attention of the Tennessee Attorney General’s office, which then turned over the case to the FBI, and a federal investigation is pending.

Unfortunately, there’s been a rise in these types of scams, and they aren’t just targeted at the rich and famous. Scammers can take advantage of those who have never had a top-10 hit. A Wall Street Journal article published on June 3, 2024, breaks down a typical scenario, which is on point:

“Here’s how it works: A fraudster targets your house and assumes your identity, using tactics similar to identity thieves to acquire your personal information and create fake IDs. He or she then tries to sell it to an unsuspecting buyer by executing a forged deed in your name. An alternative scam is to submit a mortgage application in your name to get cash out of the house.”

Often, people don’t find out this has happened until the sale is complete, and by then, it may be too late to get the property back—or at least it would be very time-consuming and costly. Some people cannot fight back because they don’t have the financial resources to do so, and the results can be utterly heartbreaking.

If it can happen to Graceland, it can happen to anyone. So, how can you identify these scams before they escalate? The key is knowledge. Equip yourself with the right information to spot these scams before they become a threat.

Red Flags You Can’t Ignore

When you’re dealing with property, loans, and estate planning, keep your eyes peeled for these warning signs:

Paperwork problems: The documents in the Graceland case had many issues. The dates didn’t match up, the signatures looked fishy, and the notary said she never met Lisa Marie Presley. Always read the fine print and question anything that looks off. You should also consult with a lawyer immediately if you suspect something fishy. A lawyer can confirm your suspicions and help you take action right away. 

Ghost companies: According to the news articles, Naussany Investments was hard to pin down. They had no actual address, just P.O. boxes, and weren’t registered as a business anywhere. Do your homework before you deal with any company, especially for something as important as a loan. Look them up online, check with the Better Business Bureau, and be bold and ask probing questions.

Timing: The scammers waited until after Lisa Marie Presley passed away to make their move. Be extra cautious about any claims against a deceased person’s estate – fraudsters often target families when they’re most vulnerable. 

Steps You Can Take to Protect Yourself

Understand that you can take proactive steps to safeguard yourself and your loved ones before any warning signs appear. Here are some practical measures to ensure the protection of your property.

Keep good records: Make sure all your important documents are organized and easy to find. This includes property deeds, mortgage papers, and any loans you’ve taken out. If someone makes a false claim, you’ll have the proof to fight back as quickly as Riley did. Regular review and updates of these documents are crucial.

Be skeptical: It is if something sounds too good to be true. Be wary of unsolicited offers or demands, especially if they come with pressure to act quickly. 

Stay in the loop: If you’re inheriting or managing property for someone else, know what’s happening. Are the taxes paid? Is there a mortgage? The more you know, the harder it is for scammers to pull a fast one. Riley Keough was able to take action quickly enough to stop the sale because she was paying attention. 

You also want to make sure someone else is paying attention to your affairs in case you become incapacitated. In last week’s article, we discussed what can happen if you become incapacitated and you haven’t planned for it. If you missed it, here’s a sneak peek: it took months for Jay Leno to be able to manage his wife’s financial affairs once she was unable to herself. And as we’ve seen with the Graceland case, months could mean the difference between keeping your property and losing it. If you haven’t planned for your incapacity, book a call with me using the scheduling link below, and let’s talk about how we can get that taken care of for you.

This brings us to the most important thing you can do to protect yourself. Incapacity planning isn’t enough. You need a solid and thorough Life & Legacy Plan.

A Solid Estate Plan is the Key

A solid estate plan creates a legal framework that’s much harder for fraudsters to penetrate. The type of planning I do, called Life & Legacy PlanningⓇ, is solid and thorough. It covers all possible scenarios so you and your family are prepared for anything that can happen after your death or during your incapacity. It includes an inventory of all your properties and other assets, so you know exactly what you have, and your loved ones will also know if they need to step in and help. A Life & Legacy Plan also includes regular reviews and updates so your plan stays current with changing laws and circumstances, closing potential loopholes that scammers might exploit. 

Finally, we can help you ensure your loved ones are aware of these risks and familiar with your estate plan. As we’ve learned from Elvis’s estate, the more eyes watching out for fraud, the better.

How We Help You Not Fall Victim to a Scam

Scams are rising, and the best time to protect yourself is now. We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it to. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. 

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.

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Estate Planning

Celebrity Estate Plans Series Part 3 of 4: Jay Leno’s Case is No Laughing Matter

For the last two weeks, we’ve discussed celebrities and how they planned (or didn’t!) for their deaths. In this third installment of our four-part celebrity series, we discuss a topic that no one wants to consider as it may seem to be a fate worse than death: incapacity. Unlike death, not everyone will become incapacitated. Yet, it’s an essential part of your future planning because if you do become incapacitated, you want to have made your choices well before that occurs. To illustrate the importance of planning for incapacity, we’ll examine the real-life court case involving Jay Leno and his wife, Mavis. I assure you, it is no laughing matter. A comprehensive Life & Legacy Plan can provide reassurance and peace of mind, and we’ll explore its benefits in this context. 

The Leno case highlights what happens when you or a loved one becomes incapacitated and what can happen if you have not planned in advance. From the Leno case, we can learn several lessons, including 1) What incapacity is and what it is not, 2) What a spouse can and can’t do with the other spouse’s financial affairs, and 3) How you can end up in court with all your affairs becoming public knowledge. We’ll address all three topics here, emphasizing why these matter, even for tf us who have never hosted “The Tonight Show.”

Let’s start with the basics: what do we mean by discussing “incapacity”?

What Incapacity Is and What It’s Not

If you become incapacitated, you’ve lost the ability to make sound financial, medical, or legal decisions for yourself. You may even make harmful decisions or be unable to communicate at all. Incapacity can result from several circumstances, including a tragic accident, a serious, end-of-life illness, or aging-related challenges, such as dementia or Alzheimers. Like death, incapacity can strike at any time and any age. Once it does, it’s too late to get your affairs in order, and your loved ones will be stuck in a mess. This is why planning for incapacity is not just a good idea, it’s a necessity. 

This may seem obvious, but stay with me: It’s important to note that incapacity occurs while you’re alive. I say this because estate planning, to some degree, has much to do with timing. You can have a plan and create documents that deal with your incapacity. However, that plan and documents become null and void once you die, and another document is needed.

This matters to you: If you’re like many people, you’ve heard of a document called a Power of Attorney. You may even have authority for an aging relative under a Power of Attorney. In my practice, however, I’ve found that most people don’t realize that the authority granted under that Power of Attorney ends as soon as the person granting the power dies. So, while you may be able to access your loved one’s checking account to pay bills while they’re alive, that ends immediately at death if your access was under a Power of Attorney. You must then get separate authority – from a court if assets are not held in a trust – to handle the remaining assets after death. In simpler terms, the legal documents you have in place for incapacity may not be enough, and you could end up in court if you’re not prepared.

This means your incapacity planning and post-death planning must work together so the transition is handled smoothly and with as much ease for your loved ones as possible. And that brings us to the Leno case.

So, What Happened In the Leno Family? (And What It Means for You)

Mavis Leno, Jay’s wife of more than 40 years, is battling dementia and has reached the point where she can no longer handle her financial affairs. So, Jay had to go to court (essentially filing a lawsuit against his wife) to be able to manage her finances. After a few months, the court ruled and gave Jay the requested authority.

That’s essentially the entire story. But we can’t stop there! Even from just three simple sentences above, several key takeaways exist. 

Here are the highlights:

Even though they were married, Jay did not have automatic authority to manage Mavis’s finances. And neither will you if you’re married and your spouse has separate assets. Any assets or accounts you own are your property and your property alone. Marital status is irrelevant. And, if you don’t have advance planning in place, your spouse could need to go to court and sue your “estate” to get appointed and be able to take control of your assets. 

Leno had to file a lawsuit (against his wife) to gain control of his wife’s finances. That’s the process, no matter what State you’re in. If you don’t have advance planning and you become incapacitated, someone will need to go to court to get authority, even if you have powers of attorney in place. And it will cost time (a few months in most cases) and money. While waiting for the court to rule, you won’t be able to pay your spouse’s bills using their money (or they may spend away, unaware of what they’re doing). That leaves you with two options: 

You can pay the bills with your money and then get reimbursed later. This may be fine, especially if you have the financial means. But if you don’t have immediate access to cash, say your spouse paid all the bills from their account, this could mean trouble and potential asset loss. Or, bills simply go unpaid. Maybe you can explain the situation to the financial institution, and they will be patient while the court process plays out, but this doesn’t always happen. 

The court process is set up for conflict, and the more conflict there is, the longer the process will take. In Leno’s case, he and Mavis have been married for over 40 years, and it’s their first and only marriage (relationship goals, right?). Given this fact, it’s reasonable to assume that no one challenged Jay’s request. But what if one of them had been married before and had children from the prior marriage? And what if one of those children wanted to ensure they got their inheritance and didn’t want the step-parent to have any control over the money? Sadly, this happens all the time. When it does, the case can go on and on, meaning court costs go up, and the assets in question could be at risk due to the time delay. 

Leno’s personal and family information became public knowledge, but not because he’s famous. In most States, you must disclose your address, your family members and their addresses, and information about the financial assets. The Leno family’s story is available for all of us to read, not because he’s famous, but because they had to go to court. 

This can be problematic because scammers are paying attention. They tend to pay particular attention if you (or someone you love) are vulnerable, especially if you’re older. I could write books about how often older people fall prey to these scams. And they’re all disturbing.

So, what have you gleaned from these insights so far? If anything concerns you, know there is a much better way this could have been, and this better way lies within your reach. 

A Life & Legacy Plan Keeps Your Affairs Private and Your Family Out of Court and Conflict

A Life & Legacy Plan solves the problems that left Jay Leno having to sue his wife’s estate to get access to her accounts. With a Life & Legacy Plan in place, you would have a seamless transition from capacity to incapacity and then to death. There’s no time delay; assets can be immediately available if needed. A Life & Legacy Plan can also keep you and your loved ones out of court and conflict, saving time and money and keeping all your affairs private.

When you work with me to create your Life & Legacy Plan, we’ll ensure your plan stays updated throughout your lifetime. This is critically important because if your estate plan doesn’t reflect your current life circumstances, the time you need won’t work. That means you end up in court, just like the Leno family; for context, most attorneys ensure your plan stays current. But I’ve seen too many plans fail because of this; we’ll review your plan at least every three years and make updates as necessary. 

We’re Here for You Throughout All Of Life’s Changes

Incapacity planning is more crucial than ever, especially with cases of dementia on the rise. According to Alzheimer’s Disease International, over 55 million people worldwide currently have dementia, and that number is expected to increase to 78 million by 2030. Whether you’re diagnosed with dementia, another severe illness, or a terrible accident that results in your incapacity, a Life & Legacy Plan will help ensure you’re prepared, no matter what happens.

We help you create a Life & Legacy Plan so that your loved ones stay out of court and conflict and have a plan that works when you (and they) need it. Once you’ve created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your personal information kept private.

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

Celebrity Estate Plans Series Part 1 of 4: Michael Jackson

What is it about celebrities that always draws us in? For whatever reason, we just can’t resist a good, juicy celebrity story. So, for the next few weeks, we will look at the lives of 4 celebrities and see what we can learn from their stories. 

This week, we’re turning the spotlight on Michael Jackson. Even if you aren’t old enough to “Remember the Time” when Michael Jackson was dominating the charts, by the end of this article, you’ll see that he left holes in his estate plan that we can learn from.

Now, let’s dive in and learn how to avoid the same fate for your loved ones. 

It’s As Easy as “ABC” (and 1, 2, 3)

Before we look at the specifics of Michael Jackson’s story, let’s dispel a myth about estate planning: You need not be rich, philanthropic, or famous to need estate planning. You need estate planning if you own anything – even a bank account – and have people in your life you love. It’s as simple as that (dare I say it’s as simple as “ABC” and 1,2,3?). So, as you think about your estate planning, it’s time to “Beat It” past the misconceptions so your loved ones can empower you to do the right thing. 

Creating a Will Alone is a “Bad” Choice

So what happened in Michael Jackson’s case? His estate plan included a Will, which established trusts for his mother, Katherine, and his three children, Paris, Prince, and Bigi. 

Let’s stop because this setup already has an increased potential for conflict.

When your assets pass via “Will” (instead of via Trust), your assets must go through a court process called probate. Subjecting your assets and your family to probate can result in a long, time-consuming, public, and messy court process that can be unnecessarily expensive to resolve. 

A trust, on the other hand, bypasses the court process altogether as long as your assets are owned in the name of the trust when you become incapacitated or when you die. If your assets are appropriately transferred and retitled into the trust (called “funding” the trust), your estate can be administered privately and often takes less time than the court process. A trust can be set up and funded while you’re alive, thereby avoiding probate, or it can be a part of your Will. When it’s part of your Will, like in MJ’s case, it isn’t established or funded until after the court process. So, if you’re trying to keep your family from going through the court process, putting a trust in your Will completely defeats the purpose.

Since Michael Jackson’s assets passed via a Will, there have been ongoing legal matters in court, which still haven’t been resolved in the 15 years after his death. MJ’s family is embroiled in a dispute with the IRS, so the trusts he intended to create for his mother and children remain unfunded. Therefore, some of his assets cannot be transferred to them as he planned. It’s also highly probable that the legal disputes continue to cost the estate a lot of money. That’s money that otherwise would have gone to his mother and children. 

Taxes – A Potentially “Dangerous” Situation! 

The Jackson estate’s ongoing battle with the IRS is a stark reminder of the tax implications that can affect your plan and your loved ones. When it comes to taxes, you can’t think in terms of “Black or White.” If you intend to avoid as many taxes as possible, you don’t want to cut corners by doing your estate planning cheaply or independently. That could be “Dangerous!” 

Taxes can significantly reduce the value you pass on to your heirs, directly impacting your loved ones. So, our next lesson from Michael Jackson’s story is that the stakes are too high to attempt alone when it comes to saving money on taxes. Work with a professional who can advise you properly. We aren’t clear why Michael Jackson didn’t get the support necessary to minimize taxes and protect his estate from a long, drawn-out court process, but we know we can help you and your loved ones.

Avoiding the “Thriller” of Legal Disputes

The Jackson case also highlights the importance of choosing the right representatives for your estate. These are the people who handle your affairs after you’re gone (they’re called “executors” if there’s a Will or “trustees” if there’s a Trust). MJ’s family members have criticized the representatives for the way they’ve managed the estate. In particular, Katherine Jackson has alleged that the executors have been too frugal and are holding onto assets to maintain control. 

Conflict between your representatives and your loved ones is always possible. To help minimize the potential, we recommend you communicate your intentions to your representatives and loved ones during your lifetime. Consider holding a meeting so everyone knows your wishes and understands the intent behind your decisions. You may not be able to “Heal the World” on your own, but you can promote healing within your own family and prevent future conflict by opening the lines of communication now. 

Also, know that you don’t have to choose family members to be your representatives – even if you feel pressured. If you aren’t sure who the “right people” are, think about people you know who are trustworthy and capable of handling complex financial and legal matters. There’s also the option of choosing a professional representative, as Michael Jackson did, who might be more appropriate for your situation. 

Our two final lessons from Michael Jackson’s story are: 1) Communicate your wishes openly to your representatives and your family, and 2) Choose the right people to act for you when you no longer can. 

“You Are Not Alone” – We’re Here for You

By learning from the challenges faced by Michael Jackson’s family, you can ward off the possibility of a similar outcome for your loved ones. Your careful planning today can pave the way for a smoother transition of your assets in the future, ensuring that you can support your family after you’re gone rather than creating a mess for them to handle without you. 

It’s “Human Nature ” to want to avoid thinking about your death, much less plan for it. We get it. But we can live a more fulfilling life when we face our mortality. The good news is that you don’t have to deal with it alone. We’re here to support you every step of the way. 

We help you create a comprehensive Life & Legacy Plan from a place of education and intention so that your loved ones stay out of court and conflict and you can minimize taxes. 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

3 Strategies For Navigating Your Child’s Transition Into Adulthood

When your child turns 18, they’re legally an adult even though they have a lot more growing to do. Just like any other adult, their health and financial information is protected by privacy laws. But unlike any other adult, that’s still your child, and you want to support them in a crisis. Your role as a parent is crucial in this transition. Unless you’ve planned, you won’t be able to step in and support your child. 

As an estate planning attorney, I often see families caught off guard when I tell them this. Like those families, you may also assume that as a parent, you’ll always have a say in your child’s medical and financial matters. But you don’t. Under the law, you have just as much access to their medical and financial information as you do for Joe down the street (which is none).

The good news is that with proper planning, you can help your newly minted adult child navigate this transition and ensure you can step in if something happens. Here, I’ll share three strategies to help you and your child make the transition to adulthood as easy as possible. 

Strategy 1: Education

The first strategy for a successful transition to adulthood is education. At my firm, I start every client relationship with education. That’s because I believe that education equals empowerment, which supports you to make the right choices for yourself and your family. Young adults also need to be empowered through education. The more you can teach your child about their new financial and legal responsibilities, the more confident you’ll feel in their ability to make the right decisions.

If you haven’t already started talking with them about legal and financial matters, now is the time. Start with a kind of budgeting we call “money mapping.” Explain the importance of tracking their income and expenses, setting financial goals, and investing wisely, both now and in the future. 

Help them understand the basics of banking, such as how to use checking and savings accounts and the benefits of maintaining a good credit score, and assist them in setting up their bank account if they don’t already have one. Explain how to avoid overdrafts and the significance of keeping track of their balance. Introduce them to how to access credit and use it responsibly. Explain how credit cards work, the importance of paying off balances in full each month, when it’s okay to carry a balance, and the long-term benefits of building a positive credit history.

And let’s not forget your child’s new tax obligations. Teach them how to file taxes, what documents they need, and how to understand their W-2 forms or what it means to be a 1099. Explain the importance of keeping accurate records and navigating essential tax software.

Health care is another critical area where your child needs education. Let your child know that you can’t make medical decisions for them and that you won’t have access to their health records anymore—unless they give them to you. I’ll cover which essential documents they need in a minute, but first, let’s talk about the importance of communication in helping them document their wishes properly.

Strategy 2: Encourage Communication

Adulthood often involves having complicated conversations (as if I’m telling you anything you don’t know!). Two of those conversations with your child have to do with their healthcare and financial decisions in the event of an emergency. 

First off, I want to say that even thinking about your child being in an emergency medical situation is hard to think about, much less talk about. And it will probably be much harder for you than for them. It’s OK. Take a deep breath. You can do this!

After you’ve breathed your way to calm, have an open conversation about what your child would want to happen in various medical scenarios. If they become incapacitated, who would they want to make decisions on their behalf? Both parents or one of you first, then the other? Or do they want anyone else involved in the medical decisions if they cannot make them themselves? Be open to the possibility that they have different people in their lives that they may want to include, and be glad they are telling you about it if that’s the case. 

Do they know what a ventilator is and whether they’d want one if it became an issue? What about a feeding or hydration tube? And what about resuscitation? Talking about these things is necessary so your child’s wishes are honored. Who would need access to them in case of an accident or an illness? Once you know the answers to these questions, you can help your child create a health care directive and medical power of attorney.

Have the same conversations about finances. Do you know which and how many financial accounts they have? If they’re in college, how will you access their account to stop tuition or housing payments if necessary? Can you access their checking account if bills need to be paid? Your child may be reluctant to discuss these matters with you but assure them you have no intent to violate their autonomy. You simply want to be there for them if needed. 

Strategy 3: Legal Planning

Once you and your child have had these difficult conversations, emphasize the need for a legal plan so their wishes are documented and honored. This process may seem daunting, but it’s necessary to ensure your child’s future. At the least, your adult child’s legal plan should include the following documents:

Health Care Proxy and Advance Directive. A healthcare proxy grants someone, usually you, the authority to make medical decisions on your child’s behalf if they cannot. This document is crucial in ensuring that your child’s medical wishes are respected and followed, even if they are unable to communicate them. An Advance Directive complements this by outlining their medical treatment preferences in various scenarios, ensuring their wishes are respected even when they can’t voice them. It’s like a roadmap for their medical care, ensuring that their values and beliefs are considered in any medical decision. 

HIPAA Authorization. The HIPAA Authorization is equally essential. While HIPAA (Health Insurance Portability and Accountability Act) protects patient privacy, it can prevent you from accessing your child’s medical information without explicit permission. By signing a HIPAA Authorization, your child can ensure that you can speak with doctors and receive updates on their condition.

Living Will. A living will is another vital document to consider, as it outlines your child’s wishes regarding end-of-life care, such as whether they want to receive life-sustaining treatments. Documenting these preferences can provide clarity and guidance during difficult times, ensuring their wishes are honored.

Power of Attorney. A Power of Attorney allows your adult child to appoint someone (again, usually you) to manage their financial affairs if they cannot do so. Managing can include paying bills, managing bank accounts, and handling investments. With this document, you might find it easier to step in and help when needed.

It may also be necessary for your adult child to have a plan in place for what happens after death. If that’s the case, they need a will or trust. Reach out to me, and I can educate you and your child on whether post-death planning is necessary at this stage in your child’s life. 

Finally, life circumstances will change, so let your child know it’s essential to review their documents regularly and update them as needed. Encourage your young adult to revisit their decisions periodically, especially if they experience significant life changes such as getting married, moving to a new state, or starting a new job. At my firm, constant contact is part of our process, so our clients never have to remember to update their plans independently. We do the remembering for you. 

Your Next Step

Now that you have three strategies for navigating your child’s transition into adulthood, your next step is to book an appointment with our firm so we can support you in having these conversations and putting your child’s legal plan in place. 

Before you think that you don’t need an attorney and can use a cheap online tool or even AI, I encourage you to think about what’s at stake. Your child’s health and well-being. Your child’s growth. The opportunity to teach your child how to prioritize the things that matter most. When I work with you, one of the best things I can do is to get to know your children as they become adults. Ideally, it will be me (or my firm) that they’ll turn to for guidance throughout their lifetime and to be there for them when you can’t. No cheap legal plan can do that. 

The Support You and Your Child Need

We know that navigating the transition to adulthood can be challenging for you and your child. Understanding the legal changes that come with turning 18 and using the three legal documents (and the conversations that go with them) in this article can help you provide the support and guidance your child needs. But you don’t need to navigate this transition alone. We can educate you and your child about their new legal responsibilities, support you to have hard conversations, and help your child implement a legal plan. 

Schedule a 15-minute call to learn how our Life & Legacy Planning process can help your family make the best decisions about the things that matter most.

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

What Probate Is and How To Avoid It — Part 2

Unless you’ve created an estate plan that works to keep your family out of court, when you die (or become incapacitated) many of your assets must go through probate before those assets can be distributed to your heirs. Like most court proceedings, probate can be time-consuming, costly, and open to the public, and because of this, avoiding probate—and keeping your family out of court—is often a central goal of estate planning. 

In part one of this series, we explained how the probate process works and what it would entail for your loved ones. Here in part two, we’ll discuss the major drawbacks of probate for your family, and outline the different ways you can help them avoid probate with wise planning. 

What’s At Stake For Your Family 

Probate court proceedings can take months, and sometimes even years, to complete. In the immediate aftermath of your death, that’s the last thing you likely want your loved ones to have to endure. 

Without easy and immediate access to your assets, your family could face serious financial hardship at a time when they need the most support. Not only that, but to help them navigate the legal proceedings, your loved ones will almost certainly need to hire a lawyer, which can result in hefty attorney’s fees and the real risk of them hiring a lawyer who is uncommunicative, which only creates more stress for them. All of that is on top of the court costs, executor’s compensation, and all of the various other administrative expenses related to probate. By the time all of those costs have been paid, your estate could be totally wiped out, or at the very least, seriously depleted. 

Another drawback of probate is the fact that it’s a public process. Whether you have a will or not, all of the proceedings that take place during probate become part of the public record. This means that anyone who’s interested can learn about the contents of your estate, who your beneficiaries are, and what they will inherit, which can set them up as potential targets for scammers and frauds. 

Probate also has the potential to create conflict among your loved ones. This is particularly true if you have disinherited someone or plan to leave significantly more money to one relative than the others, in which case, a family member may contest your will. And even if those contests don’t succeed, such court fights will only increase the time, expense, and strife your family has to endure. 

How To Avoid Probate

Before we discuss the more advanced ways you can use estate planning to allow your loved ones to avoid probate, it’s important to point out that not all of your assets will have to go through the probate process—and that’s true even if you don’t have any estate plan at all. 

Assets That Do Not Require Probate

Certain assets will pass directly to the individuals or organizations you designated as your beneficiary, without the need for any additional planning. The following are some of the most common assets that use beneficiary designations and therefore, bypass probate:

  • Retirement accounts, IRAs, 401(k)s, and pensions
  • Life insurance or annuity proceeds
  • Payable-on-death (POD) bank accounts
  • Transfer-on-death (TOD) property, such as bonds, stocks, vehicles, and real estate

Outside of assets with beneficiary designations, other assets that do not go through probate include assets with a right of survivorship, such as property held in joint tenancy, tenancy by the entirety, and community property with the right of survivorship. These assets automatically pass to the surviving co-owner(s) when you die, without the need for probate. 

However, it’s critical to note here that if you name your “estate” as the beneficiary of any of these assets, those assets will go through probate before being distributed. The same goes if you overlook a beneficiary designation, or if you die at the same time as a joint property owner—each of those assets will also go through probate, even though they have beneficiary designations.

In addition, we generally recommend that you do not rely on beneficiary designations to handle the distribution of your assets. These designations give you little to no control over how your assets are distributed, and they can result in negative outcomes you did not intend, especially if you have a blended family with children from a prior marriage or if you have no children at all.

Although there are several different types of assets that automatically bypass probate, the majority of your assets will require slightly more advanced levels of planning to ensure your loved ones can immediately access them, without the need for any court proceedings in the event something happens to you. The primary estate planning tool for this purpose are trusts.

Avoiding Probate With A Revocable Living Trust

Trusts are a popular estate planning tool for avoiding probate. Although there are a variety of different types of trust, the most commonly used trust for probate avoidance is a revocable living trust, also called a “living trust.”

A trust is basically a legal agreement between the “grantor” (the person who puts assets into the trust) and the “trustee” (the person who agrees to manage those assets) to hold title to assets for the benefit of the beneficiary. With a revocable living trust, this agreement is typically made between you as the grantor and you as the trustee for the benefit of you as the beneficiary. You act as your own trustee during your lifetime, and then you name someone as a “successor trustee” to take over management of the trust when you die or in the event of your incapacity.

It might seem odd to make an agreement with yourself to hold title to assets for yourself in order to benefit yourself. Yet by doing so, you remove those assets from the court’s jurisdiction in the event of your incapacity or when you die. Instead, those assets transfer to your successor trustee, without any court intervention required. At that point, your successor trustee is responsible for managing the trust assets and eventually distributing them to your beneficiaries, according to the terms you spell out in the trust agreement. This is how a trust avoids probate, saving your family significant time, money, and headache.

The Key Benefits Of A Living Trust

Unlike a will, if your trust is properly set up and maintained, your loved ones won’t have to go to court to inherit your assets. Instead, your successor trustee can immediately transfer the assets held by the trust to your loved ones upon your death or in the event of your incapacity. And since you can include specific instructions in a trust’s terms for how and when the assets held by the trust are distributed to a beneficiary, a trust can offer greater control over how your assets are distributed compared to a will. 

For example, you could stipulate that the assets can only be distributed upon certain life events, such as the completion of college or marriage, or when the beneficiary reaches a certain age. And as long as the assets are held in trust, they’re protected from the beneficiaries’ creditors, lawsuits, and divorce—which is something else wills don’t provide. 

Finally, trusts remain private and are not part of the public record. So, with a properly funded trust, the entire process of transferring ownership of your assets can happen in the privacy of your attorney’s office, not a courtroom, and on your family’s time.

Transferring Assets Into A Living Trust

For a trust to function properly, it’s not enough to simply list the assets you want the trust to cover. When you create your trust, you must also transfer the legal title of any assets you want to be held by the trust from your name into the name of the trust. Retitling assets in this way is known as “funding” a trust.

Funding your trust properly is extremely important, because if any assets are not properly funded to the trust, the trust won’t work, and your family will have to go to court in order to take ownership of that property, even if you have a trust. In light of this, it’s critical to work with us to ensure your trust works as intended. We will make sure all of your assets are properly titled when you initially create your trust, and also ensure that any new assets you acquire over the course of your life are inventoried and properly funded to your trust. This will keep your assets from being lost, as well as prevent your family from being inadvertently forced into court because your plan was never fully completed. 

Living Trusts, Taxes, Creditors & Lawsuits

When you create a revocable living trust, you are free to change the trust’s terms or even completely terminate the trust at any point during your lifetime. Because you retain control over the assets held by a living trust during your lifetime, those assets are still considered part of your estate for estate tax purposes. Similarly, assets held in a living trust are not protected from your creditors or lawsuits during your lifetime. This is an important and often misunderstood point.

Again, a revocable living trust does not protect your assets from creditors or lawsuits, and it has no impact on your income taxes. However, as mentioned earlier, as long as the assets are held by a living trust or a Lifetime Asset Protection Trust, those assets can be protected from your beneficiaries’ creditors, lawsuits, and even divorce settlements. Be sure to ask us about the different trust-based estate planning options we offer to find one that’s best suited for your particular situation.

The primary benefit of a living trust is to pass your assets to your loved ones without any need for court or government intervention, and to ensure your assets pass in the way you want to the people you want.

Life & Legacy Planning: Do Right By Those You Love Most

Although a living trust can be an ideal way to pass your wealth and assets to your loved ones, each family’s circumstances are different. This is why we will not create any documents until we know what you actually need and what will be the most affordable solution for you and your family—both now and in the future—based on your family dynamics, assets, and desires.

Sitting down with us will empower you to feel 100% confident that you have the right combination of estate planning solutions to fit with your unique asset profile, family dynamics, and budget. We see estate planning as far more than simply planning for your death and passing on your “estate” and assets to your loved ones—it’s about planning for a life you love and a legacy worth leaving by the choices you make today.

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

What Probate Is and How To Avoid It — Part 1

Unless you’ve created a proper estate plan, upon your passing many of your assets must first go through the court process known as probate before those assets can be distributed to your heirs. During probate, the court supervises a number of different legal actions, all of which are aimed at finalizing your affairs and settling your estate. It’s open to the public, expensive, can take a long time, and be highly inconvenient, and sometimes, even downright messy.

By implementing the right estate planning strategies, however, you can help your loved ones avoid probate all together—or at least make the process extremely simple for them. Here in this two-part series, we’ll first explain how the probate process works and what it would entail for your loved ones, and then we’ll outline the different ways you can avoid probate with wise planning.

When Probate Is Required

As mentioned previously, if you fail to put in place a proper estate plan, your assets must go through probate before they can be distributed to your heirs. In general, this includes those individuals who have no estate plan at all, those whose estate plan consists of a will alone, and those who have a will that’s deemed invalid by the court. 

It’s important to point out that even if you have a will in place, your loved ones will still be required to go through probate upon your death. Therefore, if you want to keep your family out of court and out of conflict when you die, you cannot rely solely on a will, and you’ll need to put in place additional estate planning vehicles. 

If you die without a will, it’s known as dying intestate, and in such cases, probate is still required to pay your debts and distribute your assets. However, since you haven’t expressed how you wish your estate to be divided among your heirs, your assets will be distributed to your closest living relatives based on our state’s intestate succession laws. These laws typically give priority to spouses, children, and parents, followed by siblings and grandparents, and then more distant relatives. If no living heirs can be found, then your assets go to the state.

Some states allow estates with a relatively low value to bypass probate and use an abbreviated process to settle the estate. In those cases, beneficiaries can claim the estate’s assets using simpler legal actions, such as by filing an affidavit or other form. Additionally, when an individual’s debts exceed the value of their assets, or a person has no assets at all, probate is often not initiated, and the estate is settled using alternative legal processes.

How Probate Works

How probate plays out is largely determined by whether or not you had a valid will in place at the time of death. However, even in cases where no will exists, or the will is deemed invalid, the probate process is quite similar. Indeed, once the court appoints someone to oversee the probate process on your behalf, the process unfolds in a nearly identical manner, regardless if you had a will or not.

01 | Authenticating The Validity Of Your Will: 

Following your death, your executor is responsible for filing your will and death certificate with the court, and this initiates the probate process. From there, the court must authenticate your will to ensure it was properly created and executed in accordance with state law, and this may involve a court hearing. 

Notice of the hearing must be given to all of the beneficiaries named in your will, along with all potential heirs who would stand to inherit under state law in the absence of a will. This hearing gives these individuals the opportunity to contest the validity of your will in order to prevent the document from being admitted to probate.

02 | Appointing The Executor Or Administrator: 

If you created a will, the court must formally appoint the person you named in your will as your executor before they can legally act on your behalf. If you died without a will, the court will appoint someone—typically your closest living relative—to serve in this role, known as your personal representative or administrator.

In some cases, the court might require your executor to post a bond before they can serve. The bond functions as an insurance policy to reimburse the estate in the event the executor makes a serious error during probate that financially damages the estate.

03 | Locating & Valuing Your Assets: 

Once probate begins, the executor must identify, locate, and take possession of all of your assets, so they can be appraised to determine the total value of your estate. This includes not only those assets listed in your will and other estate planning documents, but also those you may have not included in your estate plan. This is why keeping a regularly updated inventory of your assets is so important. 

Any assets the executor is unable to locate will end up in our state’s Department of Unclaimed Property. Across the U.S., there is more than $58 billion of assets stuck in state Departments of Unclaimed Property.  

In the case of real estate, although the executor is not expected to actually move into your home or other residence, he or she is required to ensure that your mortgage, homeowners insurance, and property taxes are paid while probate is ongoing. These and all other debts can be paid from your estate. 

Once all of your assets have been located, the executor must determine their value, which is typically done using financial statements and/or appraisals. From there, the combined value of all of your assets is used to estimate the total value of your estate.

04 | Notifying & Paying Your Creditors: 

To ensure all of your outstanding debts are paid before your assets are distributed, the executor must notify all of your creditors of your death. In most states, any unknown creditors can be notified by publishing a death notice with your local newspaper. 

Creditors typically have a limited period of time—usually one year—after being notified to make claims against your estate. The executor can challenge any creditor claims he or she considers invalid, and in turn, the creditor can petition the court to rule on whether the claim must be paid.

From there, valid creditor claims are then paid. The executor will use your estate funds to pay all of your final bills, including any outstanding medical and funeral expenses.

05 | Filing & Paying Your Taxes: 

In addition to paying all of your outstanding private debts, the executor is also responsible for filing and paying any outstanding taxes you owe to the government at the time of death. This includes personal income and capital-gains taxes, as well as state and federal estate taxes, if your estate is valuable enough to qualify. 

That said, the federal estate tax exemption is currently set at $13.61 million for individuals and $27.22 million for married couples, so most families won’t have to worry about estate taxes. And for those who do exceed that threshold, there are several strategies you can use to reduce the size of your estate to avoid these taxes. Any taxes due are paid from estate funds. In some cases, this may require liquidating assets to raise the needed cash. 

06 | Distribution Of Your Remaining Assets: 

Once the court confirms all of your debts and taxes have been paid—which typically requires the executor to file an accounting of all transactions he or she engaged in during the probate process—the executor can petition the court for authorization to distribute the remaining assets in your estate to the beneficiaries named in your will, or according to state intestate succession laws, if you didn’t have a will.

Once all assets have been distributed, the executor must file a petition with the court to close probate. If all creditors and taxes have been paid, your assets have been distributed, and there are no other outstanding issues to be addressed, the court will issue an order formally closing the estate and terminating the executor’s appointment.

Keep Your Family Out Of Court & Conflict

One of our primary goals when creating your estate plan is to keep your family out of court and out of conflict no matter what happens to you. Yet, as you can see, if your family must go through probate, your estate plan falls woefully short of that goal, leaving your loved ones stuck in an unnecessary, expensive, time-consuming, and public court process.

Fortunately, it’s easy for you to spare your family the burden of probate with proactive planning. Next week, we’ll look at the ways you can do just that in the second part of this series. Until then, if you haven’t put an estate plan in place or have one that would force your family to go through probate, schedule a complimentary 15-minute consultation call.

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

Avoid These 4 Common Estate Planning Pitfalls

If you’re a parent, you’ve always strived to provide the best for your family, ensuring their well-being and securing their future. However, even the most well-intentioned plans can falter if you overlook the complexities of estate planning. Let’s explore some common pitfalls that parents often encounter, then offer practical strategies to navigate them successfully. 

Heads up before we dive in; I’ll provide some stories below that illustrate what happens when a parent hasn’t created an estate plan or hasn’t updated it over time. (The names of the people below are made up, but the scenarios I’ll describe are common.) 

Pitfall No. 1: Procrastination 

Even the most well-intentioned plans can fail if you overlook the complexities of estate planning. One of the most significant pitfalls is procrastination, or postponing the process under the assumption that you have ample time or that your assets are currently too modest to warrant formal planning. But the truth is that estate planning is crucial for individuals of all ages and asset levels! Unexpected events can occur at any time, leaving your loved ones in a bad situation if you haven’t properly documented your wishes.

Take for example, John, a 45-year-old father of three, who put off creating a will, thinking he had decades ahead of him. You can’t really blame him, can you? Many of us are in the same boat. However, he passed away tragically and unexpectedly, leaving his family to deal with his affairs in the court process called probate. The probate process was lengthy, and his assets were frozen and unavailable for his kids until the court process played out. In addition, probate drained his assets, so there wasn’t as much to leave his kids in the end. 

I doubt this is what John would have wanted.

So parents, to avoid the procrastination trap, it’s essential to approach estate planning with a sense of urgency. Start the process as soon as possible, and review your plan regularly to ensure it remains aligned with your evolving circumstances and family dynamics (keep reading for more information on how I can help!).

Pitfall No. 2: Failing to Update Your Plan Over Time

This brings us to another pitfall: failing to update your plan after significant life events, such as marriages, divorces, births, or deaths. Life is inherently dynamic, and your estate plan should reflect those changes. Your plan should reflect your life as closely as possible, otherwise it could become ineffective or even invalid. And if that happens, you end up like John, even if you already have an estate plan. 

Make a habit of reviewing your plan at least every three years, preferably annually, or whenever a major life event occurs. When you work with me, I will help you ensure your plan accurately reflects your current wishes and aligns with any changes in state or federal laws. 

Pitfall No. 3: Not Communicating With Loved Ones

Contrary to common belief, estate planning is not solely about legal documents, such as a Will, Trust or Power of Attorney. Documents are merely the byproduct of good estate planning. The real power of estate planning is in having open and honest communication with your loved ones. However, many parents make the mistake of keeping their estate plans a closely guarded secret, leaving their families in the dark about their intentions and wishes. This lack of transparency can breed misunderstandings, conflicts, and resentments that can undermine the effectiveness of your plan and strain family relationships.

Let’s look at Darla’s story for a greater understanding. Darla, a successful business owner and loving mother, always assumed her oldest son would take over the family business after her passing. So Darla’s estate plan included a provision wherein her oldest son inherited the business. When Darla died, however, her son revealed that he had different career aspirations and didn’t want to run the business. This led to family conflict – because Darla didn’t have a “Plan B” in her estate plan. 

As a result, the family had to go to probate court, spending lots of time, energy, attention, and money, to get the business transferred to the one family member who wanted to run the business. Had Darla discussed her wishes openly, the family could have addressed their concerns together and arrived at a mutually agreeable solution that would have saved them the unnecessary hassle of probate court.

So what can you learn from Darla’s story? Share your wishes with your family members, explain your reasoning, and address any concerns they may have. This open dialogue can foster a deeper understanding and strengthen the bond between you and your loved ones. It also allows your loved ones to provide valuable insights and perspectives that can help refine and improve your plan. What a loving gift to give your family!

Pitfall No. 4: Not Working With a Professional 

The last pitfall I’ll address is doing it yourself, or doing your plan cheaply online. As I pointed out above, estate planning is not just about creating a few documents and putting them away on a shelf until something happens. There’s much more to it. 

Instead, work closely with an estate planning firm like ours, who can help you craft a plan that fits your unique family dynamics, wishes and assets, as well as keep in touch over time to ensure your plan is updated and works when you need it to. At my firm, we support you with all this and more, including helping you structure your plan in a tax-efficient manner, minimizing the impact of taxes on your assets and ensuring your loved ones receive the maximum benefit from your estate. 

I also help you address any unique circumstances within your family, such as a family business, a child with special needs or a family member with addiction issues, ensuring that your plan is tailored to meet the specific needs of your loved ones. 

How We Support You to Avoid These Common Pitfalls

We understand that protecting your family goes far beyond just legal documentation. Our mission is to empower you to enshrine your hopes, values, and profound love for your children into a comprehensive plan that preserves your family’s integrity for generations to come. We take the time to truly understand what family means to you—the struggles you overcame, the values you hold dear, the future you envision. And then we help you craft a tailored estate plan that meets your needs and stays updated over time.

Book a call with our office to learn how we can support you, and by extension, your entire family.

Contact us today to get started.

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

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

Categories
Estate Planning

4 Reasons Why a Cheap Estate Plan Won’t Work For Your Family

Most people, regardless of stature and wealth, likely do not know how to evaluate estimates when shopping for an estate plan.

Shopping for an estate plan based on getting the lowest cost plan possible is often the fastest path to leaving your family with an empty set of documents (maybe in a beautiful binder, but not worth the paper they are written on) that won’t work for your family when they need it.

Unfortunately, we see the negative effects of cheap estate planning when grieving family members come to us with that fancy binder that sat on the shelf for years, full of out-of-date estate planning documents, and are shocked to find themselves stuck in what could have been an avoidable court process or even conflict when that’s exactly what their loved one thought they had paid someone to handle for them.

Here’s why selecting the cheapest estate plan is likely to leave you with a plan that won’t work for your family… and could leave them with a big mess instead.

01 | The least expensive plan isn’t worth the paper it’s written on once you’ve left the attorney’s office—your life changes, the law changes, and your assets change over time; your plan needs to keep up with those changes.

And the truth is, a lawyer can’t afford to provide anything more than documents that won’t get updated when you only pay a few hundred dollars for a plan. The business model doesn’t work for the lawyer and won’t work for you. 

An attorney who has built a practice specifically to serve your family in their best interests would not sell $399 (or even $1,500 or $2,000) Wills, Trusts, or estate plans. A lawyer selling you a cheap plan would only provide documents—not the long-term relationship, updates, and ensuring that assets are properly titled in a Trust. Buyer beware!

02 | Forms and documents won’t be there for your family when you can’t be—you want to leave your loved ones a relationship with a trusted advisor with whom you have built a relationship during your lifetime and who has met them and they already trust.

Working with a lawyer who focuses on “the best documents” at the “lowest price” or doesn’t charge enough for their services cannot provide more than form documents. These days, especially with the rise of AI, template form documents are free for anyone to use, which makes it difficult to know how those documents are handled when it comes to protecting the people you love.

Shopping around for the least expensive plan may get you the cheapest documents, but those documents won’t be there to guide the people you love when they need someone to turn to in a crisis or grief.

03 | You get what you pay for, but it’s your family that will pay the price. 

Traditional law firms usually use generic forms and documents. These firms are called “Trust mills” and are a firm that drafts plans but don’t ensure assets are owned correctly or stay up-to-date over time. You might think that’s malpractice, but it’s not. It’s common practice, leaving your family at risk if and when something happens to you!

04 | An estate plan isn’t a set-it-and-forget-it kind of thing; it needs to stay updated with changes in your life, the law, and your assets. 

There’s currently more than $50 billion in unclaimed property held in departments of unclaimed property across the United States. Yep, that is billion with a B.  Assets often land there when someone dies or becomes incapacitated, and their family loses track of it because it wasn’t tracked well during life.  And that’s just one way your family loses out if you’ve shopped around for the cheapest estate plan rather than having a plan that works for the people you love.

Is Something Better Than Nothing?

Sometimes, having something in place is better than nothing, but this is not one of those cases. In this case, having a “something” plan leaves your family holding the expensive, or even empty bag, when it’s too late for them to do anything about it. It’s risky business to leave your loved ones with a set of documents you aren’t sure are going to work, and our guess is that you love your people too much for that. 

Bottom line: don’t waste your time shopping around town for the cheapest plan possible. You don’t want the cheap plan; you want the plan that will work for the people you love when they need it.

If you already have an estate plan in place that you may have bought based on price, and are concerned you may have gotten a set of documents that won’t serve your family when they need it most, call us and ask about our 50-point assessment. We can help you save some money by giving it to you to do yourself, or you can pay us for a plan review to make sure your loved ones won’t get stuck with an expensive and painful and unnecessary court process or loss of assets.

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

Crafting Your Lasting Legacy With Estate Planning

Legacy and estate planning are often misunderstood and perceived as “only for the wealthy” and/or “philanthropic”. But that couldn’t be further from the truth. 

Legacy isn’t just about money or wealth. Legacy includes capturing your life stories, passing on your values, and ensuring your loved ones have a record of the essence of what matters to you.  These are the things you leave behind that mean the most to your loved ones. Money can’t even compare. Thinking of it this way, it’s easy to see that every human has a legacy to create and leave behind, including you! 

Estate planning, on the other hand, is something many people think they understand, but really don’t. It isn’t just about getting your Will done, or documenting what your end-of-life health care wishes are. Estate planning, like legacy, encompasses much more. It’s not about getting some documents signed. Estate planning is the vehicle that allows you to leave a legacy. 

So let’s dive in for more understanding on what “legacy” really means and how you can secure your legacy for the benefit of your loved ones. 

Understanding What Legacy Truly Is

Legacy, at its core, is about connecting the generations, and Life & Legacy Planning is the way to do it. Here’s an example. Consider a teacher who has spent her career fostering curiosity and resilience in her students. She may not have millions of dollars to give away, but she can use her estate plan to leave her personal library to a local school. She may even set up a small scholarship fund in her estate plan so she can continue supporting education long after she’s gone. And, if she has children or close friends she cooks for regularly, she may leave a book full of her recipes they all love.

Her legacy then becomes not just about the resources she left behind, but about inspiring future generations to value learning and perseverance, and nourishment. Similarly, your estate plan can be crafted to perpetuate the principles you deem most important, making your influence felt well into the future. 

So now, take a minute to reflect. What principles are most important to you? How do you want to use them to connect your generation to the next?

Estate Planning as a Form of Love

In emphasizing the value of estate planning as the vehicle that allows you to leave a legacy, know that estate planning should be tailored for each person, each person’s family dynamics, and each person’s values. No two people are the same, no two families are the same, and therefore, no two estate plans should be the same. This personal touch transforms estate planning from a mundane task, that most people put off because they don’t see the value, into a powerful act of love.

Proper and customized estate planning can also alleviate the potential for family conflict, which oftentimes results in irretrievably broken family relationships. But when you use estate planning as a vehicle for securing your legacy, it has the power to preserve these relationships and uphold family harmony. Estate planning is then transformed into an enduring gesture of care and love.

Consider as an example a devoted husband and father who deeply valued his family’s annual summer retreats to a beloved lakeside cabin. Understanding the special place the cabin held in his and his family’s hearts, he specifically detailed in his Will his wish for the property to remain in the family, passing down to his children and grandchildren.

He also set up a small fund to cover the cabin’s upkeep, ensuring that his family would continue to enjoy it without financial burden. In doing so, this loving husband and father not only preserved a cherished family tradition but also created a physical space for remembrance and togetherness, allowing future generations to share in the joy and serenity he found there. This thoughtful element of his estate plan demonstrates how such preparations are acts of love, weaving his memory and values into the fabric of his family’s future.

Take another minute to reflect. How would you craft your own legacy into a plan of action? 

Practical Steps to Create Your Legacy

Taking the first step in estate planning can feel daunting, but when you frame it as an act of love and legacy preservation, it becomes a deeply meaningful process. Start by identifying what matters most to you. This could be family traditions, a commitment to charity, a passion for art, or anything else that defines your personal story and values. Begin by listing these priorities and considering how they can be integrated into your estate plan. 

Next, consult with an estate planning attorney who understands the intersection of legacy and estate planning through a special process called Life & Legacy Planning. This type of planning will help you get clear on your values and goals, then together, you’ll create a customized plan that fits you and honors the legacy you wish to leave behind. Additionally, you’ll record a Life & Legacy Interview that your family will cherish for years. The Interview allows you to express your love, hopes, and reasons behind your decisions and is a comforting and clarifying piece for your loved ones, ensuring they understand your intentions and feel your presence in the provisions you’ve made. You can even record messages to send to beneficiaries that provide stories and details about a special possession or heirloom and why you chose to give it to them. 

By taking these steps, you’re not just planning for the future; you’re crafting a legacy that carries your values and love forward, ensuring that your impact on the world persists and that your memory continues to serve as a source of inspiration and unity for those you hold dear.

How We Can Help You Take Action Today

Through our Life & Legacy Planning, we don’t merely dispense legal counsel; we empower you to reflect on how you want to be remembered and how you want to pass on the values you hold dear. We take the time to fully understand what’s important to you, and then together, we’ll craft a thoughtful and holistic plan that results in the greatest gift you can leave your loved ones: your love.

To learn more about how we approach estate planning as the intersection of love and legacy, schedule a complimentary 15-minute call with our office.

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

10 Steps to Take Now to Secure a Comfortable Retirement – Part 2

Welcome back to our discussion on securing a comfortable retirement! In the first part of this series, we explored essential steps including estate planning, preparing for long-term care, and passing on your legacy. As we continue with the second part of our series, we’ll delve into additional areas that are crucial for ensuring your golden years are not only financially stable but also enriched with independence, health, and continued personal growth. So let’s pick up where we left off.

Step 6: Consider Your Housing Needs

Why It’s Important: Adapting your living environment to meet your changing mobility and health needs can enhance your independence and quality of life (and who doesn’t want that?!). As physical abilities change with age, a home that accommodates these changes can help maintain a higher level of independence, reduce the risk of accidents, and potentially delay or avoid the need for an assisted living facility. Moreover, comfortable and accessible living conditions contribute significantly to happiness and well-being in your later years.

Assess Home Accessibility: Evaluate your home for potential mobility issues and consider modifications like ramps, wider doorways, or bathroom grab bars.

Senior-Friendly Housing Options: If extensive modifications are too costly or impractical, consider moving to a senior-friendly community that offers additional amenities and services.

Finding an estate planning attorney who offers elder care planning can help you navigate your options and create a plan that preserves your assets for your loved ones, rather than draining them for housing and health care costs. 

Step 7: Embrace Technology for Independence

Why It’s Important: Modern technology can significantly improve the convenience and safety of daily life for seniors. Technologies that assist with daily tasks can extend independence, reduce caregiver burden, and enhance your overall quality of life. Additionally, health-monitoring technologies can alert caregivers and medical professionals to potential health issues before they become severe, ensuring timely medical intervention. 

Secure, Online Document Storage System: Using a secure, online system that houses your important legal and health care documents so they’re immediately available to doctors, hospitals, and caregivers is really important. Most people who have estate plans with health care documents have them stored on a shelf and aren’t accessible when they need them. That’s no good in the event of an emergency. 

Health Monitoring Technologies: Employ devices that can monitor vital signs and remind you to take medications. Your doctor may be able to help with this.

Smart Home Devices: You can automate lighting, heating, and security to manage your home environment easily. If you aren’t technologically savvy, ask a younger family member to help. Gen Z can figure that out in a heartbeat!

Step 8: Stay Active and Engaged

Why It’s Important: Active engagement in physical, social, and mental activities can significantly enhance your quality of life and health in retirement. Maintaining an active lifestyle helps prevent common age-related health problems, improves mental health, and provides valuable social interactions that can combat loneliness and depression. When you engage in a variety of activities you also keep your mind sharp and gain a sense of accomplishment and happiness.

Join Community Groups or Clubs: Engage in activities that match your interests, such as book clubs, gardening, or volunteering. If you’re active on Facebook, you can find groups there that meet in your local community. Joining online groups counts too!

Regular Exercise: Participate in senior-friendly exercise programs to maintain health and mobility.

Pursue New Learning Opportunities: Consider taking classes at local community colleges or online to keep your mind sharp and learn new skills.

Step 9: Develop a Sustainable Retirement Budget

Why It’s Important: A well-planned budget is crucial to ensure that your savings last throughout your retirement years. A sustainable budget helps you manage your finances effectively, avoiding overspending and ensuring that you have funds available for unexpected expenses. A good budgeting practice can also help you maintain a comfortable lifestyle while safeguarding against market volatility and economic downturns.

Identify Essential vs. Non-Essential Expenses: Consider making adjustments to your spending habits if needed to ensure you can cover necessary costs while still enjoying your retirement.

Plan for Unexpected Costs: Include a buffer in your budget for unforeseen expenses to avoid financial strain.

Organize Your Finances: Create a complete asset inventory, so you know exactly what you have and how long it will last. The inventory also ensures that your loved ones will be able to find your assets after you’re gone, so nothing is lost to the government. Check out your State’s Department of Unclaimed Property website and prepare to be shocked to see how much money has been lost! 

Step 10: Review and Adjust Your Estate Plan Regularly

Why It’s Important: Life changes, and so should your estate plan to ensure it continues to meet your evolving needs and circumstances. Regular reviews ensure your plan works when you and your family need it to, keeping them out of court and conflict after you’re gone. If your estate plan is current with the ever-changing estate and tax laws, chances are it will work and your wishes will be honored if you become incapacitated or when you die. Working with us, we will review your plan every 3 years at no charge. We will also review your asset inventory so that it stays up to date. This ensures your family will receive your assets, not the government. 

We Can Help Secure Comfort in Your Retirement

And now we’ve come to the end of our 2-part series on how to enjoy your retirement with ease and peace of mind. I hope you’ve found this information helpful and inspired you to take action right away because what matters most to me is your ability to live a fulfilling life and give your loved ones a legacy they will treasure. 

At our firm, we do more than just assist with your immediate retirement planning needs; we ensure that your future is as vibrant and secure as possible. The intricacies of adapting your living space, integrating modern technology for better health and independence, staying socially and physically active, and managing your finances can make retirement seem overwhelming. We simplify these aspects and tailor solutions to fit your lifestyle and aspirations, all within your time and budget.

If you want to explore how we can help you develop a retirement plan that not only safeguards your finances but also enriches your daily life, we encourage you to book a complimentary 15-minute call with us. Together, let’s make your retirement years as fulfilling and carefree as possible.

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.