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Tag: trusts

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What Happens to Your Social Media Accounts After You Pass Away?

When we pass away, our social media accounts, repositories of personal memories, interactions, and expressions, don’t just vanish. Each platform has unique policies for handling the profiles of deceased users, from erasing them to turning them into memorial sites. It’s crucial for us to know these options to ensure our digital legacies are managed according to our wishes.

Platform Policies for Deceased Users

As of April 2024, here’s what you can expect from the major social media platforms:

  • Facebook: Users can choose to either permanently close their account or transform it into a memorial page where friends can continue posting memories. Facebook allows you to assign a “Legacy Contact” who can manage the memorialized profile by changing profile pictures and responding to friend requests, but they cannot access private messages.
  • Instagram: Similar to Facebook, Instagram offers options to either memorialize an account or have it permanently deleted. Memorialized accounts feature a “Remembering” label and are removed from public spaces like the Explore section. Proof of death must be provided to enact these changes.
  • TikTok: Currently, TikTok allows the deactivation of a deceased user’s account upon request by family members or legal representatives, provided they can show proof of death. There is no option to memorialize accounts at this time.
  • X (formerly Twitter): X permits family members to close a deceased user’s account by submitting necessary documentation, which leads to the permanent deletion of the account without a memorialization option.
  • YouTube: Managed by Google, YouTube falls under the Inactive Account Manager policy, which lets users set directives for their account in case of prolonged inactivity. Options include sharing data with trusted contacts or deleting the account altogether.
  • LinkedIn: Immediate family members or colleagues can request the removal of a deceased user’s profile by providing proof of death. LinkedIn focuses on maintaining a professional environment and does not offer a memorial option.

Managing Your Digital Afterlife

Directly logging into a deceased person’s social media account is generally discouraged due to privacy and security concerns. Instead, platforms require family members to follow specific procedures, providing the necessary documents to either close or memorialize accounts. This process can be cumbersome and emotionally taxing.

However, preparing in advance can make it easier for your loved ones. By consulting with an estate planning lawyer, you can create a digital asset plan that details your preferences for each account, whether to close or memorialize them.

Role of Estate Planning Attorneys

A competent estate planning attorney can guide you in drafting a comprehensive digital asset plan, appointing an executor, and preparing all necessary legal documentation to empower your executor to act on your behalf with digital platforms. They can also suggest secure methods to store your account information, ensuring it remains accessible yet protected until needed.

Our Commitment to Your Legacy

At Peaceful Warrior Law, we do more than just draft documents. We understand your unique needs and help you plan thoroughly, ensuring no detail is overlooked, including your digital footprint. Our approach prevents the stress and confusion often associated with managing digital legacies.

To find out more about how we can help you craft a plan that includes your digital assets, schedule a complimentary 15-minute call with our office today.

This article is a service of Brittany Cohen, a Personal Family Lawyer® Firm. We are dedicated to ensuring that you make informed, empowered decisions about your legacy and the well-being of your loved ones. Join us for a Family Wealth Planning Session to become more financially organized and confident in the choices you make for yourself and your family.

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As we continue to embrace the digital world, the increase in online scams and cyber threats is an unfortunate reality. These risks impact everyone, including legal professionals who handle sensitive client information. However, with the right precautions, you can protect yourself from these digital dangers. It’s equally important to understand how lawyers safeguard client data against these threats. Let’s explore effective strategies for personal security online and the protective measures legal professionals implement for their clients.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Seven Essential Tips to Shield Yourself from the Dark Side

  1. Confirm Identities: Always verify the identity of anyone requesting your personal details online. Scammers frequently pose as reputable companies. If a message seems suspicious, reach out directly to the company through official channels.
  2. Strengthen Your Passwords: Use long, unique passwords combining letters, numbers, and symbols. Avoid predictable patterns and consider using a password manager to keep track of your different passwords securely.
  3. Be Wary of Links and Attachments: Don’t click on links or download attachments from unfamiliar sources. These can redirect to fraudulent websites or download malware onto your device. If uncertain, it’s safer to avoid engaging.
  4. Update Regularly: Keep your operating systems and applications up to date to protect against vulnerabilities. Use reputable antivirus software to further safeguard your devices.
  5. Educate Yourself on Scams: Familiarize yourself with common scams like phishing. Awareness is your primary defense.
  6. Verify Unsolicited Calls: If contacted by someone claiming to be from a bank or a government agency, or even a relative in crisis, hang up and call back using a number you trust. Establish a family emergency code phrase to confirm identities in urgent situations.
  7. Never Allow Remote Access: Do not grant remote access to your computer unless you initiated contact with a legitimate tech support team yourself. Scammers often impersonate credible businesses to gain access.

What to Do if You Fall Victim to the Dark Side

Despite your best efforts, if you find yourself scammed, act swiftly. Notify your bank or service provider to secure your account if sensitive information was compromised. Change your passwords immediately, ensuring they are robust and unique. Report the incident to help prevent further fraud, whether it’s through local authorities, consumer protection agencies, or online platforms.

As we continue to embrace the digital world, the increase in online scams and cyber threats is an unfortunate reality. These risks impact everyone, including legal professionals who handle sensitive client information. However, with the right precautions, you can protect yourself from these digital dangers. It’s equally important to understand how lawyers safeguard client data against these threats. Let’s explore effective strategies for personal security online and the protective measures legal professionals implement for their clients.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Rest Assured, Your Legal Guardians are on Watch

At Peaceful Warrior Law, we go beyond merely dispensing legal advice; we serve as lifelong, trusted advisors. If you’ve been impacted by a scam, we’re prepared to help fortify your defenses against future incidents. We specialize in creating robust estate plans that not only secure your data but also safeguard your legacy. If your elderly relatives are without an up-to-date estate plan, we can assist in protecting their assets and information too.

We Can Help

Interested in learning more about how we can help you and your family establish a secure Life & Legacy estate plan? Schedule a complimentary 15-minute consultation with us today.

This blog serves as an educational resource from our Personal Family Lawyer® Firm, ensuring you’re well-informed about crucial decisions for your life and your loved ones. To start organizing your estate or to discuss further how to protect your legacy, please contact our office to arrange a Family Wealth Planning Session.

Note: This content, sourced for educational and informational purposes, should not replace specific legal advice tailored to your circumstances.

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For California’s real estate owners, weaving through the intricacies of estate planning can be akin to navigating a labyrinth. However, with strategic planning, understanding of tax laws, and adept utilization of estate planning tools, property owners can ensure that their assets are not only protected but also serve as a legacy for generations. This article will explore the comprehensive steps, legal considerations, and practical examples to optimize estate planning for real estate owners in California.

California Homeowners Should have a Living Trust

Table of Contents

  1. DETAILED PLANNING WITH RELEVANT LAWS
    • Understanding Proposition 19
    • Navigating Federal Estate Tax Laws
  2. HOW A TRUST PROVIDES PROTECTION
    • Benefits of Establishing a Trust
    • Why a Revocable Living Trust is Usually Best
    • Other Types of Trusts That Provide Different Types of Protection
  3. EXAMPLES OF HOW COMPLEX ASSETS SUCH AS REAL ESTATE ARE INTEGRATED INTO INTO ESTATE PLANS 
    • Incorporating a Living Trust
  4. HOW DO YOU KNOW WHICH TYPE OF TRUST IS RIGHT FOR YOU?
    • Revocable Living Trust
    • Irrevocable Living Trust
    • Domestic Asset Protection Trust
    • Medicaid Asset Protection Trust

1. DETAILED ESTATE PLANNING WITH RELEVANT LAWS IN CALIFORNIA

A) Understanding Proposition 19

Under Proposition 19, effective February 16, 2021, California homeowners who are 55 or older, severely disabled, or victims of wildfires and natural disasters can transfer their property tax base to a new residence of any value anywhere in the state up to three times during their lifetime California Board of Equalization.

Prior to Proposition 19, homeowners would be able to pass down real property to their heirs and preserve their tax basis, wholly discouraging people to sell their family property and istead, opt to continue to pass it down from one generation to the next.

Example:

Let’s consider John, a 60-year-old long-term homeowner in San Francisco. His home, purchased two decades ago, has an assessed value of $500,000, although its current market value is $2 million. His annual property taxes are based on the assessed value, leading to substantial savings.

With Proposition 19 in effect, John has the option to purchase a new home in Los Angeles, valued at $2 million, without seeing a spike in his property taxes. He can transfer the $500,000 assessed value (adjusted for the difference in the market price of the two homes) to the new property, resulting in considerably lower property taxes than if the new home were taxed at its full market value.

B) Navigating Federal Estate Tax Laws

As of my knowledge cut-off in 2022, the federal estate tax exemption is at $11.7 million for individuals and $23.4 million for couples, indexed for inflation IRS.

Example:

If Sarah, a homeowner in San Diego, has an estate valued at $10 million, including her real estate, she won’t owe federal estate taxes upon her death, safeguarding her heirs from this financial burden.

2. HOW A TRUST PROVIDES PROTECTION FOR HOMEOWNERS IN CALIFORNIA

A) Benefits of Establishing a Trust

In California, establishing a trust can offer significant protection for homeowners by ensuring their property is managed according to their specific desires and providing a shield against probate proceedings upon death. By placing your home into a trust, you maintain control over the property during your lifetime while designating a successor trustee to manage the property upon your passing. This strategy not only facilitates a smoother and faster transfer of property to your designated beneficiaries but also helps protect the asset from public scrutiny and the often lengthy and costly probate process. Trusts can also offer a layer of privacy and may provide some protection against creditors, making them a wise consideration for anyone looking to safeguard their most valuable asset—their home.

There are many different types of trusts, but the type of trust that is the most foundational for all homeowners in California is the “Revocable Living Trust.”

B) Why A Revocable Living Trust is Usually the Best Option

A revocable living trust is a legal entity created to hold ownership of an individual’s assets during their lifetime and to specify how those assets are to be handled after their death. This type of trust is called “revocable” because it can be altered or completely revoked by the trustor (the person who creates the trust) at any point during their life, as long as they remain mentally competent. The trustor typically acts as the trustee, managing the trust’s assets, which might include real estate, bank accounts, and investments. Upon the trustor’s death, the trust becomes irrevocable, meaning it can no longer be changed, and the successor trustee then steps in to manage or distribute the assets according to the trust’s terms. This setup helps bypass the often lengthy and costly probate process, provides privacy since the trust details do not become part of the public record, and can offer more precise control over the distribution of assets to beneficiaries.

C) Other Types of Trusts That Provide Different Types of Protection

  • Irrevocable Trust

An irrevocable trust is a type of trust where the terms cannot be modified, amended, or terminated without the permission of the grantor’s named beneficiaries once it has been created. Unlike a revocable trust, the grantor, once they transfer assets into an irrevocable trust, effectively removes all of their ownership rights over those assets. This transfer is permanent, providing significant benefits such as protection from creditors and legal judgments, as well as potential tax advantages. Because the assets no longer belong to the grantor, they are not included in the grantor’s taxable estate, potentially reducing estate taxes. Irrevocable trusts are often used for asset protection, to provide for a beneficiary who shouldn’t directly inherit assets due to incapacity or irresponsibility, and for charitable estate planning.

  • Domestic Asset Protection Trust

A Domestic Asset Protection Trust (DAPT) is an irrevocable trust established under specific U.S. state laws to shield a grantor’s assets from creditors and legal claims. By transferring assets into a DAPT, the grantor relinquishes ownership but can still potentially benefit as a discretionary beneficiary, managed by an independent trustee. This structure ensures that the assets are generally inaccessible to creditors and not included in the grantor’s personal estate, providing significant protection while allowing the grantor some level of access to the trust’s benefits. DAPTs are particularly appealing to high-net-worth individuals seeking effective asset protection strategies.

  • Medicaid Asset Protection Trust

A Medicaid Asset Protection Trust (MAPT) is a type of irrevocable trust designed to protect an individual’s assets from being counted for Medicaid eligibility purposes. By placing assets into a MAPT, individuals can safeguard their wealth, ensuring it is not depleted by the costs of long-term healthcare, while potentially qualifying for Medicaid benefits. The trust must be properly structured and adhere to strict regulations, including a look-back period, typically five years, during which assets transferred into the trust may still be considered by Medicaid in determining eligibility. The grantor of the MAPT relinquishes control over the assets and cannot be the trustee, but they can designate who will receive the trust’s assets after their death. This setup allows the assets within the trust to be protected from both Medicaid recovery and other creditors, ensuring that the grantor’s legacy can be preserved for their beneficiaries.

3. EXAMPLES OF HOW COMPLEX ASSETS (SUCH AS REAL ESTATE) ARE INTEGRATED INTO ESTATE PLANS

A) Incorporating a Living Trust

Living trusts are pivotal for California property owners. They ensure that real estate and other assets are passed on seamlessly without going through probate, which can be a public, time-consuming, and expensive process.

Example:

Matthew, owning a beachfront property in Malibu, places it in a living trust. Upon his passing, the property is transferred to his daughter, Lisa, without undergoing probate, ensuring privacy and expediency.

B) Utilizing Gift Deeds

While gifting property can be an efficient method of asset transfer, it’s pivotal to understand the tax implications. The annual gift tax exclusion and lifetime gift and estate tax exemption play a crucial role IRS.

Example:

David gifts a condo in Sacramento to his son, Alex. Given the current annual gift tax exclusion, if the property’s value is within the allowable limits, there will be no immediate tax implications for either party.

4. HOW DO YOU KNOW WHICH TYPE OF TRUST IS RIGHT FOR YOU?

Choosing the right trust for a California homeowner who currently lacks an estate plan depends on their specific goals, financial situation, and needs for asset protection. Here’s a brief guide to help determine the most suitable type of trust:

  1. Revocable Living Trust: Ideal for homeowners who desire flexibility and control over their assets. This trust allows the grantor to retain control over the assets during their lifetime, including the ability to amend or revoke the trust. It helps avoid probate, provides privacy, and ensures that assets are distributed according to the grantor’s wishes upon their death. It’s a good fit if the primary concern is simplifying the administration of the estate rather than asset protection from creditors.
  2. Irrevocable Living Trust: Suitable for those who are willing to relinquish control over their assets for the benefit of asset protection and potential tax advantages. Once assets are transferred into this trust, the grantor cannot modify the trust without the beneficiaries’ consent. This trust offers stronger protection against creditors and can reduce estate taxes, making it a good choice for individuals with significant assets who are also concerned about future liabilities and estate tax implications.
  3. Domestic Asset Protection Trust (DAPT): Appropriate for individuals with substantial assets who seek to protect their wealth from potential future creditors while maintaining some beneficial interest in the trust. This type of trust is particularly effective in states that allow for DAPTs, providing strong creditor protection while allowing the grantor to remain a discretionary beneficiary.
  4. Medicaid Asset Protection Trust (MAPT): Best suited for individuals concerned about future medical costs and the possibility of depleting their estate through long-term care expenses. This trust protects assets from being counted for Medicaid eligibility, but it requires careful planning to comply with Medicaid’s look-back period and other eligibility criteria.

For a California homeowner starting an estate plan, a revocable living trust often serves as a foundational component due to its flexibility and the control it offers. However, if the homeowner is particularly concerned about protecting assets from creditors or ensuring Medicaid eligibility, considering an irrevocable trust, DAPT, or MAPT might be more appropriate. Each type of trust serves different purposes and comes with its own set of legal and financial considerations, so it’s essential to evaluate the homeowner’s individual circumstances and objectives thoroughly. Consulting with a specialized estate planning attorney can provide tailored advice and ensure that the chosen trust aligns with the homeowner’s overall estate planning goals.

Conclusion

Owning real estate in California presents both an opportunity and a responsibility. Through comprehensive estate planning infused with an intricate understanding of state and federal tax laws, property owners can turn potential complexities into streamlined, cost-effective processes that ensure asset preservation and legacy building.

Key Takeaways

  • Stay updated with the evolving tax landscape, including state-specific propositions and federal tax laws.
  • Incorporate specialized estate planning tools like living trusts to facilitate efficient asset transitions.
  • Regularly review and adapt your estate plan, considering the dynamic nature of the real estate market, tax laws, and individual asset portfolios.

It’s crucial to remember that estate planning is about more than just documents; it’s about informed decisions that shape your future and the future of your family. To take your financial organization to the next level and make the best choices for your loved ones. Click here to schedule a Family Wealth Planning Session™ with us. Mention this article, and you can access this valuable $750 session at no charge.

As always, we’re here to support you on your journey toward financial security and peace of mind. Financial planning is a dynamic process, and with the right strategies in place, you can confidently navigate the ever-changing financial landscape and achieve your long-term goals.

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July is National Family Reunion Month and the perfect time to reconnect with family from near and far, share life’s updates, and reminisce about the wonderful memories you share together. If you’re getting together with family this month, it’s also a perfect time to talk to your loved ones about your shared goals, family resources, and the legacy you want to leave behind for the next generation.

You might think that estate planning is too somber a topic for a happy family reunion, but it can actually be an opportunity to bring you closer to your loved ones by giving everyone time to speak openly about their wishes for the family and can help everyone feel unified by working together toward the family’s future wellbeing.

Not sure how to bring up estate planning in a way that makes your family feel empowered? Keep reading to learn how to navigate the conversation without scaring away party guests!

Invite Your Loved Ones to the Conversation In Advance

No one wants to be that party guest who won’t stop talking about a sad news story or their personal troubles. Don’t get me wrong, it’s important to share the good and the bad with our loved ones, but pushing a mellow topic at a happy occasion is sure to dampen the mood and turn off the other guests.

Instead of bringing up the topic on the spot at your reunion, reach out to your relatives in advance and let them know that you’d like to set aside some time during the reunion to talk about your family’s legacy and how you can work together to take care of each other in the future.

Everyone likes to feel they’re being looked after and that their input in family matters is wanted and valued. Any ongoing concerns with your family, such as an aging relative’s declining memory or your upcoming knee surgery, are great lead-ins to bring up the topic in a way that feels natural.

If anyone is resistant to the idea of talking about estate planning, don’t push them. Instead, keep your energy warm and empathetic, and keep the invitation to the discussion open in case they change their mind.

Be Vulnerable and Explain Why Estate Planning Is Important to You

Assure everyone that the goal of the conversation is to make sure the family’s future security and well-being are taken care of no matter what happens – not to try and pry into anyone’s finances, health, or relationships. Instead, it’s about ensuring everyone’s wishes are clearly understood and respected, and not about finding out how much money someone stands to inherit.

Be sure to tell your family that talking about these issues now is also a good way to avoid future conflict and expense. When family members don’t clearly understand the reasoning behind one another’s planning choices, it’s likely to breed conflict, resentment, and even costly legal battles in the future.

Instead, tell your loved ones that you’d like to start the conversation about estate planning early and continue it as an open dialogue with the whole family for years to come. Positioning the conversation as one about planning for the future health and well-being of your family rather than as a conversation about dividing assets at someone’s death will help your relatives will feel more at ease, and some may even be eager to be involved in the conversation.

If you haven’t yet handled your own planning, now would be a great time to start. You can have the conversation with your loved ones by sharing about your personal experience and how handling your own estate planning has helped you to think more deeply about what matters to you, how you want to live out the rest of your life, and how you’d love to share this experience with your whole family.

Set a Time and Place for the Conversation

Rather than trying to find the right moment to bring up the topic, set a time and a place with your family in advance of the get-together. Be sure to schedule a specific time, but don’t feel like the meeting invite needs to sound too serious or foreboding. Asking if everyone can meet around the fire pit at 6:00 pm or meet at your house for coffee at 9:00 am is perfect.

I also recommend giving everyone an end time for the discussion as well. By doing this, your loved ones will know what to expect and won’t feel worried that the conversation will eat up too much of their time.

Setting boundaries for the conversation will also help motivate members of your family to participate and stay on topic.

To make things even easier, come to the meeting with a list of the most important points you’d like to cover and encourage your family members to do the same. But keep the list short so you don’t go over the time you’ve set aside for the discussion.

If there are too many things to cover in the time allotted, that’s okay. Talk about the most important topics and agree as a family to get together again on a specific date either in person, on the phone, or via video chat to continue the discussion and flesh out any details that were left for later.

Focus on Your Family’s Legacy

While talking to your loved ones about estate planning, remember to talk about your family’s legacy and your desire to pass on your cumulative stories, memories, values, and lessons to the younger generation and beyond. A family reunion is a wonderful way to come together, and estate planning can be an amazing tool for memorializing your family’s most important assets – your human assets.

You and your loved ones have generations of stories, traditions, and triumphs worth protecting and celebrating. Let your family know that estate planning isn’t just about planning for death – it’s also about planning ahead so you can enjoy your life to the fullest knowing that everything and everyone you love will be taken care of if you become ill or when you die.

For my clients, it’s also a unique opportunity to capture your family’s most valued memories and stories through a process I call the Family Wealth Legacy Interview. During the interview, I help my clients record the things that mean the most to them and the things they want to pass on that are far more valuable than money.

What would be more precious than being able to share and watch this recording of our loved ones at future family reunions for generations to come?

If you would like more advice on how to talk to your family about estate planning or are interested in beginning your own estate planning journey so you can ensure your family is taken care of and share your personal planning experience with your family, give me a call at (858) 427-0539.

It’s my passion to guide you through every stage of planning your life and legacy, and when there’s an opportunity for an entire family to come together on their estate planning goals, love and happiness are bound to follow

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

858-427-0539

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Including a trust as part of your estate plan is a smart decision. It allows you to avoid probate, maintain privacy, and distribute your assets to your loved ones while also providing them with a lifetime of asset protection, if you choose it for them. But, here’s the thing you might not know, and is critically important to remember: simply creating a trust is not enough. For your trust to work, it has to be funded properly and may need to be updated over time.

Funding your trust means transferring ownership of your assets from your own name into the name of your trust. This can include bank accounts, investments, real estate, and other valuable possessions.

By funding your trust properly, you ensure your assets are managed according to the terms of your trust and will be distributed according to your wishes when you die or if you become incapacitated.

But, if you fail to fund your trust, it becomes nothing more than an empty vessel. Your assets won’t be protected or distributed as intended, at least partially defeating the purpose of creating a trust in the first place! While your assets can still get into your trust and be governed by your trust after your death, that means that your family still goes to court to get your assets there, and that’s a costly endeavor.

To make sure your trust works for you, avoid these funding fiascos and work with an attorney who will ensure that everything that needs to get into your trust does.

Forgetting to Update Your Account Beneficiaries

Many people mistakenly believe that a will or trust alone is enough to dictate how their financial accounts should be distributed after they die. However, this isn’t the case. Without proper beneficiary designations on your accounts, your wishes may not be honored and your assets could end up in the wrong hands.

Remember, the beneficiaries you designate on your accounts supersede any instructions in your will or trust, so this step is vitally important. 

Take a moment to review your various accounts, such as bank accounts, retirement plans, and life insurance policies. Ensure that each account has your trust named as your designated beneficiary, unless you’ve made different plans for that specific account.

When you’re working with a lawyer, make sure your lawyer has a plan for each one of your beneficiary-designated assets, communicates that plan to you, and that the two of you decide who will handle updating your beneficiary designations. Then, make sure you review your beneficiary designations annually. In our office, we support our clients to do all of this with well-documented asset inventories, and a regular review process built into all of our plans.

Your Attorney Didn’t Move Your Home Into Your Trust

For many of us, our home is our most important and valuable asset. But if your attorney doesn’t deed your home into your trust, your home won’t be included under the terms of your trust if you become incapacitated or pass away.

That means your home could end up going through the long and expensive probate court process in order to be managed during an illness or passed on to your loved ones after you die. If you own a $300,000 home, that means your family could lose up to $15,000 or more just to transfer your home to your trust and then distribute your home pursuant to the terms of the trust – and that’s not including any other assets that would have to go through probate.

A knowledgeable estate planning attorney shouldn’t miss this step, but it happens. And if you’re using a DIY service online to create a trust without the help of any attorney at all, it’s bound to happen!

That’s why it’s so important to work with a lawyer who takes the time to make sure every asset you own is in your trust before they say their farewells.

Not Reviewing Your Plan and Accounts Every Three Years

You might wonder how not reviewing your estate plan every few years could really make your plan worthless. Well, the good news is that failing to review your plan is unlikely to completely eliminate the benefits it provides you because an estate plan is made up of a number of moving parts, not just a will or a trust.

But, failing to keep your financial assets up to date and aligned with your estate plan can result in huge issues for you and your family and can even make the trust you invested in worth little more than the paper it’s printed on!

That’s because your trust can’t control any assets that don’t have the trust listed as the owner or beneficiary. By reviewing your accounts every 3 years, you can help catch any accounts that don’t have your trust listed in this way.

For example, it’s very common for clients to open a new bank account and forget to open the account in the name of their trust or add their trust as a beneficiary.

Thankfully, by comparing my clients’ financial accounts to their estate plan at least every 3 years, I’m able to catch simple oversights like this that could cause their assets to be completely left out of their trust.

Make Sure All of Your Assets Are Included In Your Plan with Help From Your Personal Family Lawyer

Getting your legal documents in place is an important step, but it’s equally important to know that the documents themselves are not magic solutions (as magical as they may seem!). Merely creating a trust or naming beneficiaries on your accounts doesn’t guarantee that your wishes will be carried out unless all of the pieces of your plan are coordinated to work together.

If you aren’t experienced in the area of estate planning, trying to coordinate all these pieces yourself can be a recipe for disaster.

That’s why I work closely with my clients to not only create documents but to create a comprehensive plan that accounts for all of your assets and how each one needs to be titled to make sure your plan works for you the way you intended.

Plus, I offer my clients a free review of their plans and financial accounts every three years to ensure that their plans accurately reflect their lives and their wishes for their assets and loved ones.

If you want to know more about my process for funding your trust and making sure nothing is ever left out of your plan, reach out to me at (858) 427-0539. I can’t wait to hear from you.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

858-427-0539

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Vacations are a time to relax, unwind, and create beautiful memories with your loved ones. But before you set off on your adventure, it’s essential to ensure that your legal affairs are in order so you can fully relax during your travels.

Can’t imagine doing one more thing before you take some much-needed time away?

Don’t worry! I’m here to guide you through these important tasks so you can enjoy your vacation worry-free. Plus, these steps only take a little time to complete and can provide you with peace of mind knowing that you have made proper arrangements if the unexpected happens to you or your family while you’re away.

Let’s dive in! (No pool puns intended!)

1.     Create Powers of Attorney

Whether you’re traveling overseas or just a few hours away, it’s crucial to have powers of attorney in place for both health care and financial matters before you leave.

A healthcare power of attorney designates someone you trust to make medical decisions on your behalf if you become incapacitated during your vacation. While no one plans to become incapacitated, a slip on the diving board, an injury while boating, or a parasite caught from local cuisine can happen.

Similarly, a financial power of attorney empowers a trusted individual to manage your financial affairs for you. With a financial power of attorney, you can give someone the authority to manage your investments or pay your bills away while you’re gone, or just have it as a safety net in case you become incapacitated or can’t be reached while traveling.

By having these documents prepared ahead of time, you can ensure that no matter what hiccups you run into on your travels, your wishes for your health will be respected and your financial affairs will be handled according to your instructions, even when you’re away.

2.    Nominate Permanent Legal Guardians for Your Kids

As a parent, naming a permanent guardian for your children is one of the most important decisions you can make. While it’s a difficult topic to consider, designating a permanent legal guardian ensures that your children will be cared for by someone you trust if the unexpected happens while you’re on vacation.

It’s a good idea to take a little time to choose someone who shares your values, loves your children, and is willing to take on the responsibility of raising them. However, anyone you trust to raise your kids is a better choice than leaving the decision up to a judge who doesn’t know you or your family.

By documenting your chosen guardian, you make sure your children will be cared for by someone who loves them and knows them if the unthinkable happens to you, and you can always update your choice at any time in the future as your children and their relationships change over time.

3.    Designate Short-Term Guardians for Your Kids

In addition to naming a permanent guardian, it’s equally crucial to designate short-term legal guardians for your children. Short-term guardians step in when the permanent guardian lives far away, or in case of a short-term, immediate emergency.

You can give multiple people the authority to be your child’s short-term guardian, including relatives, neighbors, or nannies. When planning a vacation, it’s a good idea to name any adults who your child will be staying with while traveling with you or staying home.

For example, if your child is spending the week at their grandparents’ house, you should name their grandparents as short-term guardians and give them medical power of attorney for your minor child. If your child is traveling with you, naming any adult travel companions as short-term guardians and giving them medical powers of attorney is a wise choice in case a guardian or medical POA is needed for your child while on your trip.

Discuss this arrangement with the individuals you’ve chosen and make sure they’re aware of their roles and responsibilities. By establishing short-term guardians and medical POAs, you can ensure that your children are well-cared for in the event of an emergency.

4.    Tell the People You Trust About Your Plans

Last but not least, make sure that the people you trust know about your travel plans and the preparations you’ve made, including where you’ll be staying and how to get in contact with you.

Let them know about any legal documents you’ve put in place, and how to access them if needed. Share this information with your chosen guardians, family members, and close friends. By keeping everyone in the loop, you can ensure that your wishes are known and your loved ones can act swiftly and effectively in case of an emergency.

You should also provide your loved ones with my contact information in case they need copies of your powers of attorney or kids’ guardianship documents or need them delivered digitally.

Estate Planning for The Life (And Vacation) You Deserve

As you pack your bags and prepare for your vacation, don’t overlook the importance of handling your legal affairs. Taking the time to create powers of attorney, permanent and short-term legal guardians for your children, and communicating your plans to trusted individuals can provide you with peace of mind and save your family incredible stress if there’s an emergency while you’re away.

To ensure that these documents are prepared correctly and in accordance with your state’s laws, I encourage you to contact me at (858) 427-0539. I start by guiding all of my clients through a unique process I call the Family Wealth Planning Session. During the session, I get to know you and your family on a personal level and review exactly what you own and who you love to make sure everything and everyone is protected and cared for in the best way possible when you pass away or if you become incapacitated.

If we find that things wouldn’t go the way you wanted if something happened to you, I can help you create a custom estate plan that leaves no rock unturned.

Don’t let the joy of vacation be overshadowed by the “what if’s.” Contact me today to learn more.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

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Get ready for an interesting twist in the world of legal and business news. You may already be familiar with the upcoming Corporate Transparency Act, set to kick in next year. If you aren’t, it’s time to get in the know because it could impact you, and if it does, you’ll need support.

Starting January 1, 2024, every small business will be obligated to submit an annual report revealing the names of their major owners. Now, here’s where it gets intriguing. If you happen to have a trust that holds partial or full ownership in a business, that business might be required to disclose private details about your trust, including details about the name of your trustee or beneficiaries, in your annual corporate report to the government. But how do you figure out if your trust needs to be reported?

What Is the Purpose of the Corporate Transparency Act and What Does It Require?

Enacted in 2020 and set to take effect on January 1, 2024, this Act aims to tackle money laundering and terrorism financing schemes involving “shell” corporations—companies that exist merely on paper and don’t engage in actual business or trade (like “Vamonos Pest” in Breaking Bad).

Under this Act, small companies will now have to disclose the names of any owners who hold 25% or more ownership in the company, as well as any individuals who exercise significant control over the company’s activities. The goal is to identify and expose shell corporations that are frequently involved in money laundering, as such illicit activities tend to occur within small businesses rather than large corporations.

To comply with the requirements, businesses must submit an annual report to the Financial Crimes Enforcement Network (FinCEN) containing the following details about each owner or controller:

  • Business name
  • Current business address
  • State in which the business was formed and its Entity Identification Number (EIN)
  • Owner/controller’s name, birth date, and address
  •  Photocopy of a government-issued photo ID (such as a driver’s license or passport) of every direct or indirect owner or controller of the company

Failing to file an annual report could result in serious repercussions, from paying a fine of $500 for every day the report is late up to imprisonment for two years.

Does My Trust Need to Be Disclosed?

Since a trust can own a business or a share of a business, trusts are also involved in the Corporate Transparency Act, but under more limited circumstances.

So how do you know if your trust information will need to be disclosed?

The new rule applies to any company that is created by filing a formation document with the Secretary of State or a similar office, such as corporations and limited liability companies (LLCs).

Non-profits, publicly traded companies, and regulated companies like banks and investment advisors are exempt from the rule. Large companies are also exempt if they have 20 or more full-time employees in the US and generate $5 million in sales. So, if your trust owns a share of any of these types of companies, it doesn’t need to be reported.

If you have an LLC or corporation you created but aren’t actively using to run a business, that company is exempt from reporting due to its inactivity, so your trust wouldn’t be reported in that instance, either.

But if your trust owns a share of a small, for-profit company (like a small family business or local investment), the beneficial owner of the trust will need to be reported to the Financial Crimes Enforcement Network.

The beneficial owner is the person or people who benefit from the trust or have the power to make major decisions about the trust assets. Depending on how your trust is written, this is usually the trustee, but it can also be the beneficiaries of your trust.

Make sure to contact us at (858) 427-0539 to have your trust reviewed before 2024 to make sure you report the correct beneficial owner of your trust.

Does the Corporate Transparency Act Affect My Trust’s Asset Protection?

One of the best things about creating a trust is that it provides you and your family with an extra level of privacy and provides asset protection from divorce or lawsuits for your trust’s beneficiaries after you’re gone.

Thankfully, having a trust that owns a business or a share of a business doesn’t take away from the trust’s ability to provide asset protection to your heirs.

While the new Corporate Transparency Act rule reduces some of the privacy benefits that come with owning assets in a trust, the names of your trust, trustees, and beneficiaries aren’t made public and are only used by the government for the specific purpose of investigating financial crimes.

Because of this, trusts remain an excellent tool for providing privacy, avoiding probate, and setting up your family with a lifetime of asset protection and financial security.

Guidance for Your Family Now and For Years to Come

If you have a trust or are curious about creating an estate plan for your family, you may be wondering how changes in the law will affect your plan in the future and how you can possibly plan for them.

Unlike many estate planning attorneys who serve their clients once and never see them again, I see estate planning as a life-long relationship. Your life and the world around you are constantly changing, and your estate plan should too.

That’s why I keep my clients informed about any changes in the law that may affect their estate plan and offer to review your plan for free every three years to make sure that your plan still works for you just as well as it did on the day you created it.

If you’re ready to create a custom plan for the ones you love or have questions about how the Corporate Transparency Act might affect you, give me a call today.

I can’t wait to serve you now and for years to come.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

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Last week we started the discussion of why it’s so important for LGBTQ+ families to invest in custom estate planning. While major strides for LGBTQ+ rights have been made in recent years, estate planning law is still written with hetero, cisgender couples in mind, which means that your wishes and your rights may not be respected when you die or if you become incapacitated without proper planning in place.

This week, I’m covering two more reasons why every LGBTQ+ family needs custom estate planning.

And if you missed last week’s blog, make sure to read it here to get the full scoop.

Let’s get started!

Most Traditional Lawyers Aren’t Well Equipped to Serve LGBTQ+ Families

Although same-gender and LGBTQ+ relationships are more publicly recognized now than ever, creating effective estate plans for LGBTQ+ clients is still new territory for many traditional lawyers.

Some lawyers simply lack experience serving LGBTQ+ families because these families didn’t have the same rights as cisgender couples until just eight years ago – and while that’s nearly a decade, it’s only a fraction of most lawyers’ practicing careers. For traditional lawyers who are in their 30th year of practice, new developments in LGBTQ+ planning are still fairly foreign.

The same is true for many LGBTQ+ families. In addition to same-gender marriage being relatively new, many LGBTQ+ families haven’t pursued estate planning due to a lack of knowledge about its importance or its availability to them. After all, only 30% of American adults have an estate plan (yikes!), and only a small portion of that 30% are in a LGBTQ+ relationship.

For lawyers who create cookie-cutter plans for their clients (which is more lawyers than you’d like to think), the amount of custom estate planning language necessary to make an effective plan for an LGBTQ+ family is more than many lawyers know how to do or want to do.

That leaves a shocking number of traditional attorneys who simply aren’t prepared or experienced enough to serve LGBTQ+ families in a way that creates effective plans and also honors their family and their legacy.

Sadly, some traditional lawyers don’t feel comfortable serving LGBTQ+ families and don’t even accept them as clients!

Because of this, it’s crucial to work with an attorney who isn’t just comfortable working with LGBTQ+ families, but is passionate about getting to know your family on a personal level and creating a plan that celebrates all that you’ve done and all that you hope for your family in the future.

Keep Your Kids with the Ones They Love

If you’re in an LGBTQ+ relationship, you know that family isn’t just about bloodlines – it’s also about your chosen family and the bond and love you share for each other.

And if you have children, you know that ensuring their well-being and protection is of the utmost importance.

In the event that something happens to you, it’s crucial to have a plan in place that addresses who will be your children’s legal guardian, and this is especially true if the children in your family aren’t biologically related to one of the parents, such as step-children or children born to same-sex parents who aren’t married.

Not only can these situations create some unique legal planning, but LGBTQ+ parents may also face resistance from family members who may not support children living with a biologically unrelated guardian or an LGBTQ+ guardian, whether you and your partner were married or not.

Similarly, if your family is resistant to certain lifestyle or parenting choices you’ve made – such as gender fluidity in how you raise your child or the topics you discuss within your family – it’s incredibly important to name guardians who align with your beliefs and who will honor your wishes for how you want your children to be raised.

Legal Guardians Are Even More Important for LGBTQ+ Families

To avoid potential disputes and ensure the continuity of care for your children, it’s essential to designate legal guardians for your children explicitly in your estate plan. By doing so, you can legally establish who you want to care for your children in your absence regardless of the guardian’s relationship to your children or their sexual orientation.

By documenting who you would want to raise your children clearly and legally, you help ensure that your children will always be raised by the people you choose and the people your children love.

Otherwise, you leave space for relatives who don’t agree with your beliefs to try to take over the position of guardian and raise your children in a way you wouldn’t agree with – possibly even keeping them away from the other parent figures in their life.

Choose a Lawyer Who Understands and Honors Your Unique Family

Finding a lawyer who truly understands your unique situation is crucial in making sure your loved ones are taken care of by people who love and respect them, regardless of biology or sexual orientation. You deserve a plan that celebrates your love, family, and future.

This Pride Month, celebrate all that you are by protecting everything you love. I understand the unique challenges that LGBTQ+ families face. That’s why I don’t practice law in the traditional way.

Instead, I put heart at the center of my practice – making sure to truly get to know you, your loved ones, and your needs so you can not only protect your family and document your wishes but create a legacy and a story for your loved ones that they’ll cherish for years to come.

To learn more about how I serve LGBTQ+ families differently, schedule a free 15-minute discovery call.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

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If you’re going to take investment and estate planning advice from anyone, Warren Buffett is likely one you want to consider. As one of the most successful investors in history, his track record speaks for itself. However, his wisdom goes beyond picking stocks and making money.

At this year’s Berkshire Hathaway annual shareholder meeting, Buffett shared several pieces of financial advice but also provided insights on the importance of personal growth and estate planning when seeking to grow wealth. While many of us may feel overwhelmed by the thought of estate planning or building our wealth, Buffett’s advice reminds us of two key but simple steps we can take to create financial and generational wealth.

Focus on Your Human Assets to Build Your Wealth and Your Legacy

In almost every interview Buffett provides, he stresses the importance of investing in yourself. “The best thing you can do is to be exceptionally good at something,” said Buffett. “Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you. So the best investment by far is anything that develops yourself, and it’s not taxed at all.”

Your earning power is the greatest determiner of your financial well-being, and the one thing you can count on no matter what’s happening in the external economic environment. If you have a highly valuable skill, and you know how to get paid well for that skill, market your services, and sell your services to those who need them, you’ll never have to worry about money. That doesn’t mean you won’t worry about money; but it does mean you don’t have to worry about money.

If you don’t have a highly valuable skill or if you have a skill that will soon be replaced by AI, that’s the first place for you to invest. You may need to get retrained, or uplevel your skills to be more human or relational so you can use AI, but not compete with it, and all that may take investment. Don’t shy away from investing in additional training to get even better at your service, or even get the additional support to learn to market and sell your services. Those investments will always pay off, whereas the stock market is out of your control.

Investing in yourself not only leads to financial success, but also personal fulfillment and a clear sense of purpose that will organically become your legacy. At the end of the day, you likely won’t be remembered for your financial success (though it’s a nice bonus if you are!). Even Warren Buffett, who is renowned for his wealth and investment skill, is even more often acclaimed for his wisdom, humility, and generosity than for his money.

Raising Kids Well is Key in Effective Wealth Planning

During a Q&A session with an estate planning attorney, Buffett stressed the importance of talking to your children about your estate planning well before your death. Buffett stated, “If the children are grown when the will is read to them and it’s the first they’ve heard about what the deceased thought about things, the parents have made a terrible mistake.”

Leaving your family in the dark about your personal and financial wishes until you die or become incapacitated due to an accident or illness can lead to large amounts of confusion and conflict among family members. If you don’t want to leave a mess, don’t wait to talk to the people you love.

As we recommend and build into our Life & Legacy Planning Process, Buffett recommends involving your heirs in the planning process. By doing so, you can ensure that everyone is on the same page and that your wishes are understood and respected far in advance. Additionally, this provides an opportunity to discuss your values and beliefs with your heirs, which can have a lasting impact on their lives. Buffett expressed that if you really want your heirs to act responsibly with their inheritance, you must live out your values and instill them in your heirs.

How to Start the Conversation About Estate Planning With Your Heirs

So how do you start the conversation about estate planning with your heirs? We recommend you do it directly and with an invitation to meet with you and your lawyer together. This is something we love to do with our clients, and we’d love to support your family in this way too. You might say something like: “I want to make sure that we’re all taken care of, both now and in the future. That’s why I’d like to talk to you about my wishes for our family resources, and how we can ensure that everything is handled smoothly when I can’t be here.”

If your loved ones aren’t immediately open to having a conversation about estate planning with you or are resistant to how you want your assets managed after your death, don’t worry. Talking about estate planning can be uncomfortable at first, but as you normalize the topic, the conversation will become easier and more open.

Or, if you’re worried that filling your heirs in on what they’ll receive will cause harm, please call us at (858) 427-0539. This is a place we can really help by supporting you to get prepared to have a conversation with your heirs and also supporting them to be ready to receive their inheritance.

When you talk money and inheritance with your heirs during your lifetime, you have the opportunity to truly pass on not just the money, but your values too. If you wait until you’re incapacitated or have died, it’s simply too late.

Finally, if you’re the future heir of a parent who hasn’t yet talked with you about estate planning, you can jumpstart the conversation by getting your own planning done, and then talking with your parents about the choices you made, why you made them, and letting them know you’d like to help them feel comfortable talking to you about the choices they’re making. If you aren’t sure how to handle any of this, please reach out to us at (858) 427-0539.

Thoughtful Guidance to Build Your Personal and Financial Life and Legacy

Warren Buffett’s advice on building and preserving wealth is timeless and valuable no matter the size of your family or your estate. By involving your heirs in your estate planning and investing in yourself, you can set yourself and your loved ones up for long-term financial success and create a legacy that spans not only through your life but through the generations that follow you.

If you aren’t sure where to start or how to talk about your wishes with your family, reach out to me. I’d be happy to guide you and your loved ones through the process of creating an estate plan that focuses on the needs and hearts of everyone it involves, so you can build a life you love today knowing that your loved ones and your community will be impacted by your legacy for years to come.

To learn more about my heart-centered approach to estate planning, reach out to me to learn about my Family Wealth Planning Session process.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

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When you think of estate planning, a will is usually the first thing that comes to mind. In fact, most people who contact me tell me they don’t need anything complicated for their estate- just a will. Indeed, wills have a reputation as the number one estate planning tool and can be seen all over TV shows and movies, from the dramatic “reading of the will” (which rarely happens in real life) to characters plotting how best to defraud their billionaire uncle’s will in order to inherit his lavish estate.

But although wills are a key part of your estate plan – and a big part of the movies – relying on a will alone won’t solve your estate planning needs – no matter what Hollywood says. Instead, using just a will to plan your final wishes is likely to leave your loved ones with an expensive mess that won’t distribute your assets in the way you intended.

What’s more, a will alone won’t ensure that you’re taken care of in the event of incapacity, and contrary to what you might think, relying on only a will actually guarantees that your family will need to go to court when you die.

If you don’t want to leave your family with a mess if something happens to you, it’s important to know how a will works and when it can be used to benefit you and your family.

What Exactly Is a Will and How Does it Work?

A will is a written document that directs how the creator of the will wants their possessions disposed of after their death. The creator of the will is called the testator or testatrix. In your will you can name someone you trust to manage the distribution of your assets, called your personal representative or executor. You can also write out what you want to have happen to your property, what charitable gifts you want to make, and who will receive them.

A will can be a complex document or a very simple document. You can even write your will on a napkin if you really want to!

With that said, a will isn’t a legally binding document unless it’s executed according to the laws of the state where you reside. In general, you need to sign your will in front of a witness, and sometimes a notary.

Some states have laws that allow you to create a will that isn’t witnessed at all so long as it is handwritten by the testator themselves. But because every state has different laws for the creation of a will, it’s important to consult with an experienced estate planning attorney (like me) to create your will rather than trying to write your own.

A Will Requires Probate Court

One of the biggest estate planning myths I hear from clients is the belief that by having a will, their loved ones won’t need to go to court after they die.

This is sadly the opposite of the truth.

If you use only a will as your main method of estate planning, you are actually guaranteeing that your loved ones will go to court after you die because a will is required by law to go through the court system called probate before any of your assets can be distributed. In fact, a will is only effective within the probate court.

Once your will is admitted to the court after your death, your personal representative or executor will be given official authority to move your assets under the court’s supervision. This ensures your property is distributed according to your wishes and that the court can intervene if there are any disputes over who gets what.

While court oversight can be helpful if there is any confusion or disagreement about your estate, the probate process is long and expensive. For very small estates, the process may take about 6 months, but for most estates, the process can take 12 – 18 months or sometimes even more.

Due to the length and complexity of the process, going through probate can easily cost your family tens of thousands of dollars. Some states even require that probate cost a certain percentage of your estate’s value.

In addition, because probate is a public court proceeding, your will becomes part of the public record upon your death, allowing everyone to see the contents of your estate, who your beneficiaries are, and what they’ll receive. Unfortunately, it’s not uncommon for scammers to use this information to try to take advantage of young or vulnerable beneficiaries who just inherited money from you.

A Will Does Not Apply to All of Your Assets or All of Your Needs

Although movies make it seem like you can and should leave all your property to your loved ones through your will, a will actually only covers certain items of your property, including any property owned solely in your name and any property that doesn’t have a beneficiary designation.

A will doesn’t cover property co-owned by you with others listed as joint tenants or owned as marital property, meaning you can only give away your share of any property you own with others, not the entire property.

Any assets that have a beneficiary designation, like retirement accounts or life insurance, aren’t controlled by your will at all but will instead be paid out to the person listed as your beneficiary on each account. Because of this, it’s especially important to make sure your account beneficiaries are up to date.

In addition, a will has no power until you die, so you can’t use it to give someone you trust the power to make decisions for you if you’re incapacitated due to illness or injury. Even if you named someone in your will to manage your estate or watch over your children, that person will have no authority to do so while you’re alive.

Don’t Just Get a Will, Get an Estate Plan

With all the issues that using a will for estate planning can create, you might be wondering why a will is even used at all. The thing is, a will isn’t the one-and-done solution that most people are led to believe by TV shows and even some lawyers.

Instead, a will should be used as a piece of your overall estate plan, not as the entire plan itself.  And ideally, your will shouldn’t even need to be used at all.

How can that be? Well, an estate plan isn’t just one or two documents – it’s a range of tools and coordinated planning that makes sure everything and everyone you love is taken care of.

And by using better tools like a trust instead of a will as your main tool for estate planning, you can direct what happens to your property while avoiding probate court entirely and ensuring the people you trust can step in and manage your assets immediately if you become incapacitated because of an illness or injury.

In addition, any assets you put in the name of your trust are entirely private, meaning the court and the public will never know what you own or who will inherit it after you’re gone.

When using a trust-based estate plan, you’ll still have a will, but your will should only need to serve as a backup and safety net to make sure that any assets that are accidentally left out of your trust at your death are added back into your trust.

And, even more important than both a will and a trust, is an inventory of your assets so your family knows what you have, where it is, and how to find it when you become incapacitated or die. Without an inventory of your assets, your family will be literally lost when something happens to you. A comprehensive inventory updated throughout your lifetime is a critical, and often overlooked, piece of an estate plan that is not “just a will.”

If you’re ready to see how having an estate plan for your family is different than having “just a will,” schedule your Family Wealth Planning Session today. During the session, we’ll review an inventory of everything you have and everyone you love, and together look at what would happen to your possessions and loved ones when something does happen. Then I’ll help you develop a plan to make sure your loved ones are taken care of when you can’t be there and that your plan works for you, and for them, exactly as you want it – at your budget and within your desires.

Most importantly, I don’t just create documents. I guide you and your family through every step of the process, now and at the time of your passing. I even help all of my clients pass on something more valuable than their money – their values, stories, and wisdom – through a Family Legacy Interview.

To get clear on what you really do need for yourself and the people you love, schedule a call with us so you can get on the road to your Family Wealth Planning Session today.

This article is a service of Brittany Cohen, Personal Family Lawyer. 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 Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

[email protected]

858-427-0539