Estate planning is the process of arranging for the management and disposal of your estate in the event you become incapacitated and after your death.

Simply put, estate planning is about defining your legacy during your lifetime and leaving an impact on the people and organizations you support after you’re gone.

Myth #1: Estate planning is only for the rich.
If you have anyone that relies on you for care, if you have pets, money (no matter how small), investments, life insurance, house, furniture, a car, or anything of financial or sentimental value, have a plan.

If you are single, married, have blended families, or have a partner that you would like to gift after you’re gone, if you have children, grandchildren that you look after, a solid estate plan can make sure that the distribution of your things goes smoothly and there is less stress while they are grieving your loss.

Myth #2: Estate planning is only about distributing your assets after you are gone.
Your legacy includes so much more than deciding who will inherit your fancy china.
 – Authorize someone to make critical financial and healthcare decisions if you are unable.
 – Specify a church or charity that you want to receive your gifts.
 – Specify a guardian(s) for your children, dependents, and pets.

Myth #3: A Will oversees the distribution of your assets.
Some assets, such as life insurance policies, 401K, and IRAs, may be exempted because a Will does not override all your beneficiary designations (e.g., items left to an ex-spouse may still go to them no matter what your Will says).

Use a Healthcare Directive to designate someone(s) to make legal or financial decisions on your behalf. A Trust can accomplish a lot of things more efficiently than a Will can, even for those with modest estates, so don’t rule it out.

Myth #4: You only need to make an estate plan once.
Your preferences and goals change over time. Laws and tax rates change. Think about it, if you made an estate plan 10 years ago, chances are your decisions would look a little different than if you made one today. Maybe you’ve gotten remarried. Maybe your minor children aren’t so minor anymore. Maybe you have stepchildren now that mean the world to you. Whatever the circumstance, it’s important to revisit your estate plan often.

Myth #5: Taxes eat up the largest part of any estate.
Although it’s true that estate taxes are real and the rates are high, only people with estates worth millions of dollars are affected by federal estate taxes. Although there may be future changes, the general trend has been the federal estate tax affects only the very wealthy. Your estate planning attorney will keep abreast of any state laws that may change and impose a separate estate or inheritance tax.

Myth #6: I’m too young to need a Will.
This is one of the biggest myths of all, and honestly one of the most upsetting. Right now, you should specify how your possessions will be distributed after you are gone. If your situation changes later, you’ll already have a template in place which makes it so much easier to make changes to any beneficiaries. It is inexpensive and a thoughtful gift for those that you leave behind.

As an estate planning attorney with 40+ years of experience, I can help you create an estate plan that’s right for you. Give me a call.

Most of us have had the conversation with friends or family about the “what if” scenarios. “What if something happens to me and I’m incapacitated?” What quality of life would you want or how long would you want to remain in a coma? It’s a bit dark, but it’s a real-life situation.

I’m going to ask you to imagine the unimaginable. You’ve been in a car accident and you’re in a coma. Your doctors don’t know if you will ever wake up or what your quality of life will be if you do. That half-joking conversation you had with your mom a few years ago may not be what your brother wants for you. Now, there’s a rift as your family argues over what to do. Choose someone — a close friend, professional representative, even a lawyer or family doctor. You need someone with whom you would feel comfortable making decisions on your behalf. Your “Healthcare Power of Attorney” makes it legal.

In another scenario, your declining cognition or incapacitation makes you unable to pay bills that are due or make day-to-day decisions. Having a “Durable Power of Attorney” authorizes someone to do so on your behalf.

There are 3 other basic estate planning tools that can address unique obligations and wishes; a Will, a Living Will, and Revocable Trusts.

If you have a positive net worth (you own more than you owe) you need to create a last Will and testament. If you don’t name a beneficiary, your assets could be given to someone you may not even know – maybe that estranged Aunt you met once or twice. The state determines your “next of kin”.

Don’t think you own anything of value? Think again. While typical assets include things like your car, bank accounts, retirement accounts, and investments, those aren’t all that you can list in your Estate Plan. Even if you think your possessions aren’t worth much, they may have significant sentimental value to someone else.Think of that little wooden chair in your corner, creaking and barely holding together while you’ve shared drinks and laughs with a close friend while sprawled across the arms. That chair may have incredible value your friend once you’re gone. Or, the blanket you made when going through your “learning to crochet” stage. Maybe you want your dog to be able to curl up in that on cold nights. Everything has value.

Using your estate plan, you choose who receives your assets. Here are some options you may not have considered:

• Maybe you have a close friend that’s been there through thick and thin, you can name them in your Will as a beneficiary.
• How about a charity that’s close to your heart. You can name them as well.
• You can even leave your assets to a scholarship or educational fund.
• Is it just you and your pet? You can leave a trust to care for them once you’re gone.

Let’s schedule your video call or appointment to get things started. It is likely less expensive and easier than you think. I look forward to helping you get it done.