Tag: Personal Family Lawyer

Avoid These 4 Common Estate Planning Pitfalls

Post author By Sara Thomas
Post date June 19, 2024
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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.

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

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

Tags Estate Plan, Estate Planning, Estate Planning Pitfalls, Personal Family Lawyer

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

Post author By Sara Thomas
Post date June 13, 2024
No Comments on 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.

Tags Cheap Estate Plan, DIY Estate Plan, Estate Plan, Estate Planning Lawyer, Personal Family Lawyer, Trust, Will

Estate Planning

Crafting Your Lasting Legacy With Estate Planning

Post author By Sara Thomas
Post date June 6, 2024
No Comments on 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.

Tags Estate Planning, Family Values, Legacy, Life Stories, Personal Family Lawyer

Estate Planning

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

Post author By Sara Thomas
Post date May 30, 2024
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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.

Tags Assisted Living, Downsize, Elder Law, Estate Planning, Legacy, Personal Family Lawyer, Retirement, Retirement Planning

Estate Planning

10 Steps to Take Now to Secure a Comfortable Retirement – Part 1

Post author By Sara Thomas
Post date May 23, 2024
No Comments on 10 Steps to Take Now to Secure a Comfortable Retirement – Part 1

Retirement is more than just an end to the working years; it’s an exciting new phase of life that requires thoughtful preparation and strategic planning. There’s no time like the present to explore 10 steps you can take now to ensure a comfortable and fulfilling retirement. In this article, we’ll discuss the first 5 steps, why they’re important, and how to implement them. Next week, we’ll continue with the remaining 5 steps.

Let’s dive in, shall we?

Step 1: Plan for the Transfer of Your Assets

Why It’s Important: Effective estate planning ensures that your assets are distributed according to your wishes, potentially reduces estate taxes, and can prevent a lot of legal complications for your heirs. Proper estate planning also helps to avoid the public, often lengthy and costly process of probate, ensuring that your heirs have quicker access to the assets you leave behind. Moreover, clear directives in estate planning can prevent family disputes (sometimes resulting in irretrievably broken relationships) and ensure that your specific instructions are followed, preserving your legacy exactly as you intend.

Life Insurance: Having adequate coverage to handle any debts and funeral expenses can provide a financial cushion for those who depend on you. As part of our Life & Legacy Planning process, we can educate you about how much insurance you need and how to pass the funds to the people you want, while avoiding unnecessary taxes and ensuring the funds are available as soon as possible.

Step 2: Prepare for Long-Term Care Expenses

Why It’s Important: As we continue to live longer, so does the probability of needing some form of long-term care. These services, whether in-home care, assisted living, or nursing facilities, can be costly and are not typically covered by Medicare. Without proper planning, the high costs of long-term care can quickly deplete retirement savings, potentially leaving less financial support for spouses or other family members. Furthermore, preemptive financial planning can significantly ease the emotional and logistical challenges of arranging for long-term care.

Long-Term Care Insurance: Investigate different policies early, ideally in your 50s or early 60s, before premiums rise significantly. Compare benefits, coverage limits, and the reputation of insurance providers.

Government Programs: Understand what Medicare covers and explore Medicaid eligibility for long-term care, which varies by state but generally requires spending down your assets.

Preparing for long-term care can be tricky because the laws are quite complicated. However, meeting with 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 health care costs.

Step 3: Pass on Generational Wealth

Why It’s Important: By ensuring that wealth passes effectively to future generations, you can secure their financial future and teach them how to manage and grow that wealth responsibly. Furthermore, generational wealth can enhance the lives of future family members and their communities by providing educational opportunities, fostering entrepreneurship, and supporting philanthropic efforts. It also instills a sense of responsibility and stewardship, which are crucial for maintaining family wealth over generations.

Educational Trusts: We can help you set up trusts that release funds for your children or grandchildren based on milestones such as graduation from college. These trusts also have tax benefits, and we can educate you about how they work.

Create a Family Investment Plan: Include younger family members in discussions about family investments to educate them about financial principles.

We will not only help you create an educational trust, but also asset protection trusts so you can create generational wealth for your family.

Step 4: Leave a Legacy

Why It’s Important: What your family will treasure most is not the financial gifts you leave, but your life lessons, values, and memories that define your family heritage. A well-planned legacy can inspire and guide future generations, providing them with a sense of identity and belonging to a greater family story. You can ensure that your philosophical and ethical beliefs continue to influence even when you’re no longer present, helping to shape the character and choices of your descendants.

Record Life & Legacy Interview: We include an interview as an important part of our unique Life & Legacy Planning process. The interview ensures your family has a piece of their family history they can hold onto long after you’re gone. They’ll also treasure being able to see you and hearing your voice whenever they want.

Step 5: Cultivate and Share Family Values and History

Why It’s Important: Continuing the idea of leaving a legacy, know that strengthening family bonds through shared history and values helps maintain a sense of continuity across generations. This cultural and historical continuity enhances their psychological resilience and emotional well-being. Additionally, a well-documented family history can serve as a valuable asset for educational and genealogical purposes, enriching the lives of current and future generations. Here are some steps you can take outside of recording a Life & Legacy Interview.

Create a Family Archive: Gather photos, letters and important documents in a digital format to ensure preservation and easy sharing. Enlist the help of a younger family member (Gen Z, anyone?) if you need to. Also consider writing down recipes, stories, and holiday traditions that can be passed down as family legacies.

Compile Family Histories: Write or record stories about family elders, significant events, and the origins of family traditions. Note that writing these down the “old school” way, i.e., pen and paper, will be meaningful to younger generations. They’ll love having a piece of paper with your handwriting on it.

Host Family Reunions: Regular gatherings not only help reinforce family bonds but also allow older generations to impart wisdom and traditions firsthand.

Let Us Help Secure Comfort in Your Retirement

So whether you’re a few years away or are about to retire now, it’s never too early (or too late!) to start planning. Be sure to check back next week for even more steps you can take to ensure peace of mind when the time comes.

At our firm, we do more than just guide you through estate planning; we provide you with peace of mind, knowing you are free to enjoy retirement. However, understanding the complexities of retirement—from estate planning to ensuring long-term care and preserving generational wealth—can be daunting. That’s why, as your heart-centered firm, we streamline the process, making it as easy on you as possible.

If you’re interested in learning more about how to create a Life & Legacy Plan that secures your comfort in retirement, we invite you to schedule a complimentary 15-minute call with our office. Let us help you live your best life, every step of the way.

Tags Elder Law, Estate Planning, Legacy, Long-term Care, Personal Family Lawyer, Retirement, Retirement Planning

Estate Planning

A Gift of Peace and Power for Every Parent

Post author By Sara Thomas
Post date May 16, 2024
No Comments on A Gift of Peace and Power for Every Parent

Parents spend their days and nights thinking about how to make sure their children are happy, healthy, and safe. If you’re a parent, you know. Every parent deserves the peace of mind and power to create financial security for themselves and their children with thoughtful estate planning.

Most people have a general concept of what “estate planning” means, but in reality, don’t fully understand it. Believe it or not, estate planning is far more complex than just drafting a Will, and it’s not just for rich people, though doing it will leave your family much more “rich” than if you don’t. Once you appreciate the power of estate planning, you’ll know why it has the power to “gift” you peace of mind.

So let’s start by parsing out what estate planning really is and why it matters for every parent you know, including yourself if you are a parent.

Why Estate Planning Matters for Parents

Imagine having a roadmap that clearly shows how your financial assets, the guardianship of your children, and even your most cherished possessions are handled should anything happen to you. Now imagine that your roadmap is a legal document and the people receiving that roadmap are required to abide by your wishes and are able to easily do so because your wishes are so clear and you’ve left a guide for your family along with the roadmap.

That’s what estate planning is: a legally enforceable plan for your future, and ideally a guide to help your loved ones navigate the plan. And contrary to what most people think, estate planning isn’t just for the wealthy or those who are nearing the end of life. It’s for everyone, including you! Thoughtful estate planning gives you the power to make decisions now that will impact your and your family’s future, giving you peace of mind to know you aren’t leaving a mess for the people you love.

Estate planning allows you to specify who will care for your children if you are unable to do so yourself. It’s undoubtedly a tough subject, but choosing a guardian you trust to raise your kids as you would brings immense comfort, and may even guide you to build deeper relationships with the people you’d call upon to care for your children, if you cannot. Knowing that your wishes are written down and legally protected can relieve a lot of stress, and relax any of those “stressful in the background” thoughts about that one person you would never want raising your kids.

Without a plan, a judge would decide who takes care of your children if you cannot, and they might not choose the person you would have wanted. Or worst of all, they may even choose the one person you’d never want raising your kids because maybe they look great on paper. Think about it: a judge knows nothing about you or your kids. They only know what they see in court filings. That’s it. They’d have to make decisions with no input from you. Kinda scary, right?

When done right, estate planning also lets you direct the distribution of your property and finances. Specifically, it ensures your assets are transferred to the people you choose without unnecessary delays, legal hurdles, or family conflict.

This not only secures your children’s future but also simplifies the administrative process at a time when your family should have space and time to mourn and heal, not get tangled in legal complexities. And if they do get tangled up in conflict, it’s highly likely that those relationships will be forever destroyed. That also happens. Again, more often than you may think.

Here’s the bottom line. When you get these things in order, you can die in peace, and that means you live life more fully.

Estate Planning Equals Empowerment

Estate planning puts the power in your hands. It’s a declaration of your values and your voice, legally secured to guide your family when you can’t be there. By setting out your wishes clearly, you prevent disputes and ensure your legacy lives on exactly as you intend. After all, someone will have to wrap up your affairs after you die, so it may as well be you, now, while you’re living. So step into your power, safeguard your children’s future, and cement your role as the heart and protector of your family.

Financial Protection In Case of Loss

Estate planning is especially vital if the unthinkable happens and your spouse or partner dies. Many parents face not only devastating emotional loss but also the potential for significant financial instability – especially if you aren’t the primary breadwinner in your family. An effective estate plan, however, includes setting up mechanisms such as life insurance, trusts, and instructions for pension or retirement benefits, which can provide you with financial support when it’s most needed. There’s absolutely no reason you and your children need to compromise your lifestyle should something happen to your partner.

Let Us Give You the Gift of Peace and Power

At our law firm, we don’t just give legal advice or draft documents. We take your power and peace of mind seriously. We also know that you’re busy. We have processes in place that make getting your estate plan in place as easy as possible, all while being thorough, thoughtful, and mindful of your time and budget.

If you want to learn more about how we can help you create an estate plan that gives you the gift of power and peace of mind – so you can live life to the fullest – schedule a complimentary 15-minute call with our office.

Tags Asset Protection, Estate Plan, Estate Planning, Personal Family Lawyer, Wealth Preservation

Estate Planning

Here’s What You Should Know About A Will

Post author By Sara Thomas
Post date May 9, 2024
No Comments on Here’s What You Should Know About A Will

Having a Will, otherwise known as a Last Will & Testament, is important—and all adults over age 18 should have this document in place. Yet for all but a few people, creating a Will is just one small part of an effective estate plan that works to keep your loved ones out of court and out of conflict. With this in mind, we’ll look at exactly what having a Will in place will—and will not—do for you and your loved ones in terms of estate planning.

What A Will Does

A Will is a legal document that outlines your final wishes in regards to how your assets are distributed to your surviving family members. Here are some of the things having a Will in place allows you to do:

1. Choose how assets are divided upon your death: A Will’s primary purpose is to allow you to designate how you want your assets divided among your surviving loved ones upon your death. If you die without a Will, state law governs how your assets are distributed, which may or may not be in line with your wishes. However, a Will only covers assets owned solely in your name. Other types of assets, such as those with a beneficiary designation and assets co-owned by you with others, are not affected by your Will.

2. Name an executor: In your Will, you can name the person, or persons, you want to serve as your executor, sometimes called a “personal representative.” Following your death, your executor is responsible for wrapping up your final affairs. This includes numerous responsibilities, including filing your Will with the local probate court, locating and managing all of your assets, paying off any debts you have outstanding, filing and paying your final income taxes, and finally, distributing your remaining assets to your named beneficiaries.

3. Name guardians for your minor children: If you are the parent of minor children, it is possible to name legal guardians for them in your Will. However, naming guardians for your children in your Will alone is seriously risky, and doing so may even leave your kids vulnerable to being taken into the care of strangers if something happens to you. This is true even if you’ve worked with another lawyer to create your Will, because most lawyers haven’t studied and been trained on what’s necessary for ensuring the well-being and care of minor children.

Fortunately, whether you’ve named guardians for your kids in your Will or have yet to take any action at all, you’ve come to the right place. We can put a full Kids Protection Plan® in place, and determine if there is anything else your family might need to ensure the well-being and care of your children.

4. Serve as a backup for a living trust: Because it can be difficult to transfer the legal title to every single one of your assets into a revocable living trust before your death, most trusts are combined with what’s known as a “pour-over” Will. This type of Will serves as a backup to a living trust, so all assets not held by the trust upon your death are transferred, or “poured,” into your trust through the probate process.

What A Will Won’t Do

While a Will is a necessary part of most estate plans, your Will is typically a very small part of a comprehensive estate plan. To demonstrate, here are the things you should not expect your Will to accomplish:

1. Keep your family out of court: Following your death, in order for assets in your Will to be transferred to your beneficiaries, the Will must pass through the court process known as probate. During probate, the court oversees the Will’s administration, ensuring your assets are distributed according to your wishes, with automatic supervision to handle any disputes. Probate can be time-consuming, costly, and open to the public. Moreover, there’s also the chance that one of your family members might contest your Will, increasing the time and cost in court.

2. Pass on certain types of assets: Since a Will only covers assets solely owned in your name, there are several types of assets that your Will has no effect on, including the following:

Assets with a right of survivorship: These types of assets automatically pass to the surviving co-owner(s) when you die.
Assets with a designated beneficiary: When you die, assets with a designated beneficiary pass directly to the individual, organization, or institution you designated as beneficiary, without the need for any additional planning.
Assets held in a trust: Assets held by a trust automatically pass to the named beneficiary upon your death or incapacity, so these assets cannot be passed in your Will. This includes assets held by both revocable living trusts and irrevocable trusts.

3. Pass ownership of a pet and money for its care: Because animals are considered personal property under the law, you cannot name a pet as a beneficiary in your Will. If you do, whatever money you leave it would go to your residuary beneficiary, who would have no obligation to care for your pet. This person could legally keep all of the money and drop off your pet at a shelter.

The best way to ensure your pet gets the care it deserves following your death is by creating a pet trust. We will help you set up, fund, and maintain such a trust, so your furry family member will be properly cared for when you’re gone.

4. Leave funds for the care of a person with special needs: There are a number of unique considerations that must be taken into account when planning for the care of an individual with special needs. In fact, you can easily disqualify someone with special needs for much-needed government benefits if you don’t use the proper planning strategies. For this reason, a Will should never be used to pass on money for the care of a person with special needs.

If you want to provide for the care of your child or another loved one with special needs, you must create a special needs trust. However, such trusts are complicated, and the laws governing them can vary greatly between states. We can make certain that upon your death, the individual would have the financial means they need to live a full life, without jeopardizing their access to government benefits.

5. Reduce estate taxes: If your family has significant wealth, you may wish to use estate planning to reduce your estate tax liability. However a Will is useless for this purpose. To reduce or postpone your estate taxes, you will need to set up special types of trusts. If you are looking to reduce your estate tax liability, consult with us to discuss your options.

6. Protect you from incapacity: Because a Will only goes into effect when you die, it offers no protection if you become incapacitated and are no longer able to make decisions about your financial, legal, and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a guardian to handle your affairs, which can be costly, time-consuming, and traumatic for your loved ones. And there’s always the possibility that the court could appoint someone as a guardian that you’d never want making such critical decisions on your behalf.

However, using a trust, you can include provisions that appoint someone of your choosing—not the court’s—to handle your assets if you are unable to do so. When combined with a well-prepared medical power of attorney and living will, a trust can keep your family out of court and out of conflict in the event of your incapacity, while ensuring your wishes regarding your medical treatment and end-of-life care are carried out exactly as you intended.

Get Professional Support With Your Estate Planning

Although creating a Will may seem fairly simple, you should always consult with an experienced estate planning lawyer to ensure the document is properly created, executed, and maintained. And as we’ve seen here, there are many scenarios in which a Will won’t be the right estate planning solution, nor would a Will keep your family and assets out of court.

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.

Tags Estate Plan, Last Will & Testament, Personal Family Lawyer

Estate Planning

Helping Your Teen Navigate Cryptocurrency

Post author By Sara Thomas
Post date April 17, 2024
No Comments on Helping Your Teen Navigate Cryptocurrency

In an era where digital innovation shapes every aspect of our lives, it’s no surprise that our teenagers are drawn to the allure of cryptocurrency. This digital form of money represents a shift away from traditional financial systems. If you are the parent of teens, understanding cryptocurrency is crucial so you can provide them with the guidance they need to navigate this new world safely and wisely.

What is Cryptocurrency, Exactly?

Cryptocurrency or “crypto”, is, in essence, virtual money that can be used to buy goods and services. It can also be traded for profit, much like stocks. However, unlike the dollars in your wallet, crypto exists only in the digital world. The crypto universe is vast, with thousands of digital currencies out there.

Crypto is based on blockchain technology, which ensures transactions are secure, transparent, and decentralized, so they’re not controlled by any government or financial institution (there are pros and cons to this that we’ll describe below). Imagine blockchain as a digital Lego tower where each block represents a piece of information, and once a block is added to the tower, it can’t be removed or altered, making it a super secure way to keep track of cryptocurrency transactions – kind of like a high-tech, unbreakable diary

A critical component of understanding cryptocurrency is the concept of a crypto wallet. Unlike a physical wallet, a crypto wallet doesn’t store currency; instead, it holds secure digital keys that allow access to cryptocurrencies.

What Parents of Teens Need to Know

To the younger, digital-native generation, cryptocurrency is an exciting and innovative concept. They’re not afraid of technology and investing online. They’re aware of the potentially significant returns on investments, stories of cryptocurrency millionaires, and the prospect of being part of a cutting-edge financial movement. This is why crypto is very attractive to teens.

Parents should know that while there are no laws specifically prohibiting teens from owning or trading cryptocurrency, most platforms and exchanges require users to be 18 years old. For eager and younger investors, custodial accounts present a solution. These accounts allow parents to oversee their teen’s investments, providing a controlled environment where teens can learn about digital currencies.

These accounts not only allow parents to monitor their teen’s investment activities but also offer a hands-on educational experience in managing and understanding digital currencies. It’s a balanced approach that combines the practical aspects of investing with the security of parental oversight.

Be Aware of the Risks

While learning how to invest in crypto can be a great learning activity for you and your teen, be aware of the risks involved. For one, the crypto market is highly volatile. Prices can surge or plummet within a short period, making investments speculative and risky. It’s crucial to have open discussions with your teen about the importance of not investing more than they can afford to lose, and about the reality of the speculative nature of digital currency. Teach your teen the importance of research, diversification, and long-term thinking and you’ll help instill responsible investment habits that will last a lifetime (and make you proud!).

Most importantly, ensure that you know how to get into their cryptocurrency accounts, in case something happens. And, that someone knows how to get into your accounts as well. The biggest risk to your cryptocurrency investments is that you haven’t documented them such that someone could access your accounts, when something happens to you. Contact us and let us help.

Alternatives and Best Practices

For families that find direct investment in cryptocurrency too daunting, there are alternative ways to engage with the digital economy. Encouraging your teen to learn about blockchain technology or exploring investments in crypto-related stocks and ETFs can provide a safer introduction to the concepts without the direct risks associated with cryptocurrency trading.

However, if you’re ready to make a go at it, here are some best practices to keep in mind:

Foster a Culture of Learning. The rapid evolution of digital currencies makes continuous learning essential. Encourage your teen (and take the opportunity yourself) to stay informed about the latest developments by reading reputable news sources, listening to podcasts, and even speaking with a financial advisor.

Establish Guidelines. Before your teen makes any financial investment, it’s important to establish clear guidelines. Discuss together how much time and money is reasonable to invest, the importance of privacy and security in digital transactions, and the expectations for responsible behavior. Setting these ground rules early on can lay a strong foundation for healthy financial habits.

Embrace the Future. Regardless of whether your teen decides to invest in cryptocurrency, understanding this new facet of the financial world is invaluable for you. The rise of digital currencies offers a unique opportunity for parents and teens to learn together about the future of money, technology, and personal finance. It’s a chance to explore new concepts, discuss values and responsibilities, and prepare for a future where digital currencies may play a significant role.

Prepare Yourself and Your Teen With Our Guidance

Whatever the future holds, we believe it’s important to educate your children about finances so you leave a legacy of fiscal responsibility when you’re gone. That’s why we help ensure that when you’re no longer here, your assets – including cryptocurrency – are passed on the way you want, easily, and without your family ending up in court and conflict. We do that by approaching estate planning as a relationship – a lifetime relationship with you as your and your family’s trusted advisor so you have someone to turn to in times of change and uncertainty, and in times of joy and excitement.

To learn more about how we can guide you and your family to secure the future you want, schedule a complimentary 15-minute call with our office.

Tags Cryptocurrency, Family Finances, Finance, Personal Family Lawyer

Estate Planning

How To Protect Your Legacy In a Blended Family

Post author By Sara Thomas
Post date April 4, 2024
No Comments on How To Protect Your Legacy In a Blended Family

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Anyone who’s seen an episode of “Modern Family” knows that families these days come in many different shapes and sizes. Long gone are the days when a “family” was defined as a mother, father and two children. The new normal is the blended family.

A “blended family” comes into being when a single parent remarries. While everyone may get along effortlessly while the parent is alive, that too-often doesn’t happen once the parent dies. Why? Because the law still hasn’t caught up to our modern definition of “family.” The law often favors the spouse, which works well when the spouse and the deceased have children together. But when the deceased parent has children from another marriage, the children can (and often are) cut out of their inheritance.

Other than the law being slow to catch up, there are a few more reasons why this happens:

The parent trusts the new spouse completely and can’t comprehend the spouse ever doing anything to harm the children;
The new spouse may place his or her own interest ahead of the children – or have children from a first marriage and want them to benefit instead; or
The parent has not been educated about what could happen when he or she dies, and hasn’t consulted with a competent attorney to get educated.

A True (and Common) Nightmare

In a recent marketwatch.com article, a woman wrote about her own nightmare scenario. Her father owned several properties, including the house she lived in as a child. He remarried, and when his health started to decline, her stepmother made financial moves so he could qualify for government health care benefits under the Medicaid program. Whereas Medicaid is a needs-based program (meaning, you only qualify if you can’t afford to pay), many people with means are able to take advantage of legal maneuvers and set their assets aside so they qualify. Doing this keeps assets protected for the next generation(s).

However, in order to qualify for Medicaid, Dad had to transfer his assets to someone else while he was alive. That “someone else” was Stepmom. Apparently, she convinced Dad it was the right move and that she could be trusted with his properties. Dad eventually died, and so at the time of his death, Stepmom owned all his properties, including the childhood home. Stepmom went on a selling spree, cashing in on them all.

And guess where the money went? If you guessed Stepmom and HER daughter, you’d be right. Dad’s children from his first marriage got nothing.

Surely That’s Not Legal…

You may be thinking that’s a horribly unfair outcome – so bad that it has to be illegal. But it’s not. It’s completely legal. Once Stepmom owned the properties, she was free to do anything she wanted with them. She deliberately chose to give her stepchildren none of the proceeds and under the law, she had the absolute right to do this. The children had no recourse; they’d lose in court.

And so we’re left to wonder: is this the outcome Dad wanted? Could he have foreseen Stepmom was capable of cutting out his children? And did he know there was another way he could have protected them and still qualified for government benefits? With education from a trusted lawyer, would he have done anything differently?

How to Ensure Your Children Are Spared From the Potential Consequences

If you want to avoid the same tragic consequences, there are some steps you can take:

1. Don’t Be Afraid of the Inevitable: Benjamin Franklin is quoted as saying, “Nothing is certain but death and taxes,” and he was half right (you can avoid estate taxes with careful estate planning but that’s a topic for another article). Death is certain. Yet we’re all uncomfortable talking about death, much less planning for it. Accept death as a reality then make plans while you can.

2. Hold a Family Meeting: Having a heart-to-heart about your wishes, values and goals can go a long way in preventing misunderstandings after you pass away.

3. Educate Yourself: Hands down the single most important thing you can do is educate yourself, and educate yourself now. Don’t rely on the internet. Laws are different from state to state, families are different, assets are handled in different ways, and the internet won’t take all this into account.

4. Work With a Lawyer Who Understands Your Family Dynamics: One size doesn’t fit all when it comes to planning for life and death matters like these! What works for one family might not work for yours. You need a tailored plan to fit your unique needs. You deserve, and your family deserves, to have a plan that works when your family needs it. That’s why you need a trusted, heart-centered attorney who will appreciate your unique situation and educate you so you’re empowered to put the right plan in place. Your family’s future literally depends on it.

We Can Help

Your loved ones don’t have to face tragic circumstances when you pass. With honest conversations, proper education, and guidance from a trusted attorney, you can put together a plan that keeps the peace and makes sure your loved ones are taken care of just the way you want.

To learn more about how we approach estate planning from the heart and yet with all the strategies you need to keep your assets in the family, schedule a complimentary 15-minute call with our office.

Tags Blended Family, Estate Planning, Modern Family, Personal Family Lawyer, Remarriage

Estate Planning

13 Ways to Show Your Finances Some Love This Year – Part 2

Post author By Sara Thomas
Post date March 14, 2024
No Comments on 13 Ways to Show Your Finances Some Love This Year – Part 2

Last week we explored seven ways to show your finances and your family some love with smart, tax-advantaged financial tips for the new year:

Make a Qualified Charitable Distribution (QCD)
Front-load Your 401(k) Contributions
Set Up a Roth IRA for a Child
Make Donations During Spring Cleaning
Give the Gift of Appreciated Stock Shares
Establish a 529 College Plan
Make a Roth Conversion

If you missed it, check out Part 1. This week, we are continuing the financial love with 6 more tips you can use to benefit your family this month and the year ahead.

Let’s dive in.

8 | Spread The Love With The Annual Gift Exemption

Do not underestimate the power of spreading love through financial generosity. By leveraging your lifetime gift tax exemption, you can minimize estate taxes and provide a significant financial boost to your heirs during your lifetime. Did you know you can gift up to $18,000 per person to an unlimited number of people each year without having to file a gift tax return? This allows you to share your wealth with family and friends in a tax-efficient manner. These gifts not only escape the estate tax but also foster stronger connections and deepen relationships with your loved ones. Whether it’s helping with educational expenses, supporting a dream vacation, or simply offering a helping hand, using this exemption allows you to share your wealth and make a lasting impact on those you cherish most. The current high exemption amount of $13.61 million is set to sunset in 2025, so if your estate is greater than $5M, now is the time to plan.

9 | Allocate More Funds To The Generation Skipping Tax Exemption

As you plan for the future, it’s essential to consider the next generation. By allocating additional funds towards your generation-skipping transfer tax exemption (of up to $13.61 million), you provide a seamless transfer of assets to your grandchildren or future beneficiaries. This strategic move not only minimizes tax implications but also lays the groundwork for preserving your family’s wealth for generations to come.

10 | Make an Extra Mortgage Payment

Your home is more than just a place to live—it’s also a valuable asset that can offer tax advantages. By making an extra mortgage payment on your primary home loan, you can increase your mortgage interest deductions on your tax return. Not only does this reduce your taxable income, but it also accelerates your path to homeownership, saving you money in the long run.

11 | Complete Repairs on Rental Property

Investing in your rental property not only enhances its value but also offers tax benefits. By completing repairs on your rental property, you can offset rental income on your tax return while providing a better living environment for your tenants. It’s a win-win situation that improves your property’s profitability and strengthens your relationship with your renters.

12 | Create a Lifetime Asset Protection Trust

Planning for the unexpected is an act of love towards your spouse and children, and when you know the right tools to use (like we do) you can make sure your family is provided for and protected for generations to come. One of my favorite ways to do this is using a Lifetime Asset Protection Trust. This tool allows you to protect the assets you leave for your children from any future financial trouble, like lawsuits or divorces.

13 | Create Your Estate Plan

Finally, don’t overlook the importance of estate planning in showing love to your family. By finalizing your Will, Revocable Trust, Power of Attorney, and Advance Medical Directive, you ensure that your wishes are carried out and that both you and your loved ones are protected in the event of incapacity or death. It’s a vital step towards providing peace of mind for you and your family, allowing you to focus on enjoying life’s precious moments together. And remember, a plan is more than a set of documents. It’s a lifetime of wise decisions about your life and legacy.

Show Your Love Where It Matters Most

It’s never too late to make loving financial and planning decisions for your loved ones – and yourself!

We know the value of planning for the future. But we also know the value of planning for the life you want today and the legacy that extends far beyond your assets.

Schedule a complimentary 15-minute call to learn how we can help you create a Life & Legacy Plan that will take care of everyone and everything you love.

Tags Annual Gift Exclusion, Estate Plan, Family Finances, Generation Skipping Tax Exclusion, LAPT, Mortgage, Personal Family Lawyer, Rental Maintenance

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