Estate planning clients often seem to hold the misconception that once they have completed their estate plan, they are done. Nothing left to do but wait until they need to use it. Of course, for some, that “use it” date does not arrive for many, many years. In the interim, everything has changed, rendering their once state-of-the-art estate plan ineffective at best or harmful at worst. If you have a trust-based estate plan that was designed prior to a major change in estate tax law in 2012, ...
Squandered Opportunities
Many people scrimp and save in the hopes of having something left over for their children at their death. But as an estate planning attorney, I know that often times that hard-earned-by-mom-and-dad inheritance turns into a squandered opportunity for the kids. The money (much like lottery winnings) is quickly used on a new flat screen TV, that motorcycle they always wanted, a two-week cruise to the Caribbean, or the worst possibility: to fuel an addiction to drugs, alcohol, or ...
Legalzoom’s “$50,000 Peace Of Mind Guarantee” — The False Allure Of The Diy Legal Service
In my prior post, I talked about some dangers in using DIY estate planning services such as LegalZoom. One of those dangers is the fact that, if you use an insured estate planning attorney and he screws up, your survivors are protected by his malpractice insurance. Services such as LegalZoom, though, are not your attorney and therefore cannot commit malpractice. LegalZoom happily tells you, in its disclaimer: LegalZoom is not a law firm, and the employees of LegalZoom are not acting as ...
Create A Financial Cheat Sheet
In my last post, I urged you to write down your wishes for a funeral or memorial service. This week, I’m encouraging you to create a financial cheat sheet for use by your loved ones should something happen to you (either death or disability). Write down or type up the following: The location of important legal documents: will, trust, insurance policies, car titles, property deeds, etc.; A list of your financial assets including savings and checking accounts, stock accounts, IRAs, ...
Why Pay For A Lawyer? Can’t I Do It Myself Online?
When I speak on the topic of estate planning, I am frequently asked why someone should hire a lawyer to prepare an estate plan. “Why can’t I just do it online through someone like LegalZoom for a lot less money?” In my mind, this is a bit like trying to perform your own dental filling to save money on going to a dentist. Of course, as with the dental example, the answer is that you certainly can go the DIY route and, potentially, save yourself some money. But performing DIY legal services ...
Good News On The Medicare Front
A bipartisan bill has been introduced in the U.S. Senate that would create a new Medicare benefit known as “planning services.” Patients with an advanced or terminal illness who are on Medicare would be allowed to work with an interdisciplinary team to help the patient figure out his or her wishes for future treatment and to articulate those wishes in the form of an advanced directive. The doctors on that team can be reimbursed by Medicare for this service. (Right now, no such provision ...
Good Article
Here’s a quick post to share a good article from Bank of Idaho on why you should be thinking about estate planning, even if you aren’t an older person with tons of money. Chief reasons why younger, less well-to-do folks need estate plans include protecting your kids and dealing with your possible incapacity. If you don’t do it before the worst happens to you, bad things will continue to happen to your loved ones. ...
Time For A Do-Over
Estate planning is not a “one and done” affair. Over time, your estate plan gets stale due to change in law, change in family, change in assets, and change in attitudes. Is it time for you to have an estate planning do-over? If you haven’t reviewed your estate plan in the past few years, it is time for you to re-think your plan. And be warned: if you have a pre-2013 estate plan, it may actually cause more harm than good in the current post-ATRA environment, especially if you have a classic ...
Trust Fund Doggie?
When considering what should happen with a person’s financial resources after his or her death, many people do put something aside for the care of their pets, including naming “guardians” and setting aside funds in a “pet trust” for the benefit of the pet. However, pet trusts are usually just enough to pay a pet’s basic expenses: food, vet visits, etc. In that context, pet trusts are a sensible way to ensure that a beloved family member does not end up in a shelter in the event of the ...
Should I Take Steps To Avoid Probate? Yes!
One of the common sources of misunderstanding in the estate planning arena is the topic of probate. Simply put, probate is a legal proceeding that takes place after a person dies, to wrap up the financial affairs of that deceased person. Typically, the process involves a number of steps: establishing whether the person had a valid will; taking an inventory of the person’s assets at death; paying any debts and taxes owed; and distributing the remaining property under the will ...
