Estate Planning

July 8, 2025July 20, 2025

Critical Estate Planning Documents

Estate planning is something adults everywhere need to consider, especially when they have a spouse and/or children. I said, especially, but in reality, adults need an estate plan with details that they won’t be able to make. At the very least, there are three critical estate documents you should have while working on your full-blown estate plan. You will include all three documents in your plan and can complete them in an afternoon.

I center my recommendation of the three critical documents on a healthy adult property owner. If you’re not in the best of health, I also recommend adding a Healthcare Directive document. I center my recommendation of the three critical documents on a healthy adult property owner. If you’re not in the best of health, I also recommend adding a Healthcare Directive document. Let me list the three critical documents and the Healthcare Directive document. Here are the documents and a short description of what problem they solve.

Three Critical Estate Documents Benefits

Transfer on Death Deed (TOD): Upon your death, this document directs the person named in the document to receive the listed property. The passing of the title involves issuing a new title to the designated person(s). Where the value of the TOD lies is that it legally keeps the property out of the probate process. Probate is time-consuming, and the new deed names the new owner.
Power of Attorney (POA): A Power of Attorney (POA) is a legal document that allows one person (the principal) to appoint another (the agent or attorney-in-fact) to act on their behalf in legal and financial matters. It’s a way to delegate decision-making authority to someone you trust. This ensures that someone manages your affairs when you’re unable to do so yourself. This is important because at any time, we can become incapacitated and unable to make our own daily decisions. While the hope is that this is only a temporary condition. You risk losing a lot and must play catch-up.
Last Will and Testament (LWaT): A last will and testament is a legal document that outlines how a person’s assets and property should be distributed after their death. It also allows the individual to name a guardian for minor children and an executor to manage the estate. Having a will ensures that you carry out your wishes and can help you avoid potential disputes among family members. Without this document, EVERYTHING you own gets thrown into the Probate process. After all the legal proceedings, what remains is anyone’s guess. What remains could be something, it could be nothing, and heirs may have to foot the bill. It only takes a short amount of time to create a will.
Advanced Healthcare Directive (AHD): An Advanced Healthcare Directive is a legal document. This document outlines a person’s preferences for medical treatment, especially if they become unable to make decisions for themselves. It allows individuals to appoint a healthcare agent and/or provide specific instructions regarding their medical care, including end-of-life decisions. We sometimes take our health for granted and the assumption is this document kicks in when something happens to you precluding you from making your own decisions. The person identified will be able to make decisions in accordance with what you want.

The fourth instrument, the Advanced Healthcare Directive, is considered important but not listed as critical because the assumption is that you are still alive and making decisions. This should be considered if you are in bad health.

Probate is inevitable; preparing the appropriate documentation resolves challenges that only the courts will resolve. Give us a look and hopefully a call. We would love to discuss your questions and hopefully move forward with preparation..

These are personal decisions, and we will work with you to ensure you prepare the resulting documentation accurately. We recommend that everyone have the first three documents. Many want to make other decisions after the fact, but we highly encourage you to complete the first three. These three instruments have a high negative impact on your survivors should you pass away without them.

The documentation we deliver will withstand challenges made when you’re not here to defend your decisions. Because estate planning documents have registration requirements, we provide dates for notarization and filing. We also deliver instructions and locations for filing so that your Executor does not have to go looking for the appropriate offices.

May 16, 2025July 8, 2025

What Happens When Probating an Estate

Probating an estate involves a court-supervised process of validating a will, identifying and valuing assets, paying debts, and taxes. The last act is distributing the remaining property to beneficiaries. The personal representative, often the executor named in the will, is responsible for overseeing this process.

While this may sound like a straightforward process, let me assure you that probating an estate is anything but easy. Unless you have probated an estate, this process is like riding a mechanical bull with steel spikes everywhere you can fall. The best way I can describe this process is that it’s a multi-dimensional effort. The difficulty is dealing with how the estate was left. The size of the estate, available financial resources, the quality of the deceased’s instructions, and the heirs of the deceased.

Navigating the Estate Minefield

Let’s keep in mind what probate is and when Probate is necessary. The probate process is invoked after the death of a family member. Emotions are running high, and survivors are not always thinking rationally. Even when the deceased has put their affairs in order, there are always questions to answer and “things” to distribute.

Hopefully, with a thorough estate plan, an estate can be settled with minimal conflict, unlike depicted in the picture above. Probate issues can stem from various challenges, including family disputes, will contests, creditor claims, and complex assets. Delays in the process, costly fees, and the public nature of probate can also create complications. When there is no will or the will does not have a clear intent about estate distribution, obtaining the services of a probate attorney is crucial.

An attorney will help you navigate the state’s probate code and local probate process for scenarios in which there is no will. The attorney can also provide assistance to either challenge the will’s validity or prove the document is valid, depending on your position, the facts of the situation, and the probate code.

In any case, having a documented will or trust can’t be overstated. Your wishes are clearly stated and leave less room for dispute. Documents we produce will withstand challenges. Appointing an executor after a person’s death requires everyone to agree on that person. Keep in mind, the clock is ticking on the estate and things like taxes are going to hit at some point. Fighting challenges without a will or living trust after the fact may feel like you’re boiling yourself in oil. Give us a call, we can help.

May 16, 2025June 5, 2025

Failing to Plan is Planning to Fail

One of the most frequent reasons we hear for failing to plan is “I don’t have the time”. Another reason we hear is “It’s on my list of things to do”. I’ve never met anyone who didn’t want the best for their family. Leaving life is never on our time frame, so procrastination is never in our best interest. Not getting around to estate planning has serious consequences, especially when talking about estates.

Estate planning is crucial for ensuring your assets are distributed according to your wishes and for minimizing potential burdens on your loved ones. However, many common mistakes can undermine even the best-laid plans. One of the most significant estate planning mistakes is simply not having a plan. Whether due to procrastination or assuming that estate planning isn’t necessary, many people delay or neglect this critical task.

If you’ve experienced life changes, such as marriage, divorce, or childbirth, failing to update beneficiaries can lead to unintended consequences. Joint ownership of property and accounts can also lead to inequities if not planned effectively. Regularly review your joint accounts and beneficiary designations and ensure they align with your plan.

Review your estate plan at least every three to five years or after any major life event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning team whenever you have a significant life change. event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning attorney whenever you have a significant life change.

Failing to plan is at the top of most estate planners list of mistakes. Estate taxes (also known as inheritance or death taxes) can take a hefty chunk out of your estate, reducing the amount that will pass on to your heirs. This can be troublesome for estates that may exceed exemption limits or fail to take advantage of tax-saving strategies.

Failing to plan for these taxes could result in an unnecessary tax burden that could diminish your wealth, and in extreme cases, require the sale of valuable assets, such as real estate, business interests, or investments.

May 16, 2025May 16, 2025

Advantages of A Living Trust

Living trust advantages are above and beyond not having one when a person owns property. A living trust, AKA a revocable trust, is a legal arrangement where an individual transfers assets to a trustee. It is the trustee who then manages those assets for the grantor’s benefit. This happens during their lifetime and for beneficiaries after their death. It’s a way to manage and distribute assets in a structured way, often avoiding the probate process.

A trust allows for a smoother transfer of your home to heirs without the need for court, time, and expenses. Privacy: Probate is a public process, while a trust keeps matters private, protecting your family’s affairs from public scrutiny. There isn’t a specific net worth that dictates whether you need a trust. It depends on your individual circumstances and estate planning goals.

While a will is typically a good starting point, a trust might be beneficial if you have assets exceeding $100,000. Minor children or complex financial situations. Additionally, you want to minimize estate taxes, protect assets from creditors. Or ensure your wishes are followed regarding how and when your inheritance is distributed, a trust can be invaluable.

Pro’s / Cons of a Living Trust

Winding down a life where you have accomplished much, most people seek peace of mind. Those same people want to ensure that generational wealth is expanded. Proper distribution of wealth includes receiving benefits from the disposal of property. Trusts can be perceived as having negative aspects due to their complexity, potential costs, and lack of automatic judicial review, which can leave beneficiaries vulnerable to mismanagement. While they offer benefits like asset protection and control over distribution, trusts also come with drawbacks such as the need for ongoing record-keeping, potential tax burdens, and the possibility of disagreements among beneficiaries.

Here’s a good rule of thumb: If you have a net worth of at least $100,000 and have a substantial amount of assets in real estate, or have very specific instructions on how and when you want your estate to be distributed among your heirs after you die, then a trust could be for you. A trust is often preferred over a will because it offers more flexibility, control, and privacy. Clearly, living trust advantages are better protection against taxes and avoiding probate. Trusts can also avoid probate, which is a public court process that can be lengthy and expensive. While wills only take effect after death, trusts can be set up to manage assets during your lifetime, and offer more control over how and when assets are distributed.

Whatever choice you make, we stand ready to prepare living trust documentation for protecting your assets. We will walk with you from document creation to implementation.

May 16, 2025June 5, 2025

What is Estate Planning ?

Estate Planning is a process that captures your life’s accomplishments. The system packages these accomplishments gently into one or more legally binding documents. Traditionally, families transfer assets from one generation to the next, providing future generations with a financial advantage.. The planning includes the bequest of assets to heirs, loved ones, and/or charity, and may include legal tax avoidance.

While states may change rules and regulations, the fact remains that failure to plan is planning for failure. You have worked all your life, accumulated successes, but you can’t take any of it with you. Most people have acquired “things ” in their lives and have shared them with their loved ones. People use the term “Generational Wealth” to describe the passing of wealth to the next generation.. Generational Wealth refers to the accumulation and transfer of assets and resources. Keeping it in the family and minimizing negative financial impact is what financial planning is all about. Those assets can include cash, stocks, bonds, and other investments, as well as real estate and family businesses.

Estate Planning documents legally bind and explain to survivors how you will divide or not divide your assets. They also establish one of the most critical aspects of planning. The WHO, whose responsible for carrying out your instructions. The person whose assets are to be divided selects a trusted party and is called the executor. Best case scenario, this person executes your plan to fruition.

Estate Planning Value Proposition

Estate planning also removes the potential for having your estate go through Probate. In common law jurisdictions, the court of law “proves” a will through the judicial process of probate. Courts of law accept estate planning documents as a valid legal document.. That is the true last testament of the deceased. Unfortunately, for this thing called property, without a “Living Trust” the settlement of the estate can be tied up for years. The end result is a lot of cost and unnecessary money wasted in the courts. Court costs can exceed the value of the estate because often, there are warring parties. These parties have, different ideas regarding who should get what and how much they should get.

Bluntly, everyone is going to leave this earth, and death has done more to fracture families. While preparing these documents in advance may not avoid a full fracture, they can ease the pain of your transition.