How Much Should We Tell the Children About Our Estate Plan?

Estate Planning, Health Care, Inheritance, Living Will, Power of Attorney / Advance Directive, Estate Planning Attorney, Healthcare Power of Attorney, Heirs, Inheritance, Living Will, Power of Attorney, St. Petersburg Estate Planning Attorney

Congratulations, if you have finished your estate plan. You and your estate planning attorney created a plan that is suited for your family, you have checked on beneficiary designations, signed all of the necessary documents and named an executor to carry out your directions when you pass away. However, have you talked about your estate plan with your adult children? That is the issue explored in the recent article entitled “What to tell your adult kids when planning your estate” from CNBC. It can be a tricky one.

There are certain parts of estate plans that should be shared with adult children, even if money is not among them. Family conflict is common, whether the estate is worth $50,000 or $50 million. So, even if your estate plan is perfect, it might hold a number of surprises for your children, if you don’t speak with them about your plan while you are living.

Even the best estate plan can bequeath resentment and family conflicts, if family members don’t have a head’s up about what you’ve planned and why.

If you die without a will, there can be even more problems for the family. With no will—called dying “intestate”—it is up to the courts in your state to decide who inherits what. This is a public process, so your life’s work is on display for all to see. If your heirs have a history of arguing (especially over who deserves what), dying without a will can make a bad family situation worse.

Not everything about an estate plan has to do with distribution of possessions. Much of an estate plan is concerned with protecting you, while you are alive.

For starters, your estate planning attorney can help you with a Power of Attorney. You’ll name a person who will handle your finances, if you become unable to do so because of illness or injury. A Healthcare Power of Attorney is used to empower a trusted person to act as a surrogate and make medical decisions for you, if you are incapacitated. Some estate planning attorneys recommend having a Living Will, also called an Advance Healthcare Directive, to convey end-of-life wishes, if you don’t want to be kept alive through artificial means.

These documents do not require you to name a family member. A friend or colleague you trust and know to be responsible can carry out your wishes and can be named to any of these positions.

All of these matters should be discussed with your children. Even if you don’t want them to know about the assets in your estate, they should be told who will be responsible for making decisions on your finances and health care.

Consider if you want your children to learn about your finances during your lifetime, when you are able to discuss your choices with them, or if they will learn about them after you have passed, possibly from a stranger or from reading court documents.

Many of these decisions depend upon your family’s dynamics. Do your children work well together, or are there deep-seated hostilities that will lead to endless battles? You know your own children best, so this is a decision only you can make.

It is also important to take into consideration that an unexpected large inheritance can create emotional turbulence for many people. If heirs have never handled any sizable finances before, or if they have a marriage on shaky ground, an unexpected inheritance could create very real problems—and a divorce could put their inheritance at risk.

Talk with your children, if at all possible. Erring on the side of over-communicating might be a better mistake than leaving them in the dark.

Reference: CNBC (Nov. 11, 2020) “What to tell your adult kids when planning your estate”

Planning for Long-Term Care

Elder Care, Estate Planning, Financial Planning, Health Care, Living Will, Long Term Care Planning, Power of Attorney / Advance Directive, Caregiving, Cognitive Decline, Continuing Care Community, Elder Care, Estate Plan, Long Term Care, Nursing Facility, Retirement Savings, St. Petersburg Estate Planning Attorney

Starting to plan for elder care should happen when you are in your 50s or 60s. By the time you are 70, it may be too late. With the median annual cost of a private room in a nursing facility coming in at more than $100,000, not having a plan can become one of the most expensive mistakes of your financial life. The article “Four steps you can take to safeguard your retirement savings from this risk” from CNBC says that even if care is provided in your own home, the annual median cost of in-home skilled nursing is $87.50 per visit.

There are fewer and fewer insurance companies that offer long-term care insurance policies, and even with a policy, there are many out-of-pocket expenses that also have to be paid. People often fail to prepare for the indirect cost of caregiving, which primarily impacts women who are taking care of older, infirm spouses and aging parents.

The best time to start planning for the later years is around age 60. That’s when most people have experienced their parent’s aging and understand that planning and conversations with loved ones need to take place.

Living Transitions. Do you want to remain at home as long as is practicable, or would you rather move to a continuing care retirement community? If you are planning on aging in place in your home, what changes will need to be made to your home to ensure that you can live there safely? How will you protect yourself from loneliness, if you plan on staying at home?

Driving Transitions. Knowing when to turn in your car keys is a big issue for seniors. How will you get around, if and when you are no longer able to drive safely? What transportation alternatives are there in your community?

Financial Caretaking. Cognitive decline can start as early as age 53, leading people to make mistakes that cost them dearly. Forgetting to pay bills, paying some bills twice, or forgetting accounts, are signs that you may need some help with your financial affairs.

Healthcare Transitions. If you don’t already have an advance directive, you need to have one created, as part of your overall estate plan. This provides an opportunity for you to state how you want to receive care, if you are not able to communicate your wishes. Not having this document may mean that you are kept alive on a respirator, when your preference is to be allowed to die naturally. You’ll also need a Health Care Power of Attorney, a person you name to make medical decisions on your behalf when you cannot do so. This person does not have to be a spouse or an adult child—sometimes it’s best to have a trusted friend who you will be sure will follow your directions. Make sure this person is willing to serve, even when your documented wishes may be challenged.

Reference: CNBC (Jan. 31, 2020) “Four steps you can take to safeguard your retirement savings from this risk”

Start the New Year with Estate Planning To-Do’s

Estate Planning, Executor, Health Care, Power of Attorney, Trustee / Advance Directive, Beneficiary, Directive, Estate Planning Attorney, Executor, Joint Tenancy With Right of Survivorship, JTWROS, Medical Power of Attorney, Online Accounts, St. Petersburg Estate Planning Attorney, Successor Trustee

Families who wish their loved ones had not created an estate plan are far and few between. However, the number of families who have had to experience extra pain, unnecessary expenses and even family battles because of a lack of estate planning are many. While there are a number of aspects to an estate plan that take some time to accomplish, The Daily Sentinel recommends that readers tackle these tasks in the article “Consider These Items As Part of Your Year-End Plan.”

Review and update any beneficiary designations. This is one of the simplest parts of any estate plan to fix. Most people think that what’s in their will controls how all of their assets are distributed, but this is not true. Accounts with beneficiary designations—like life insurance policies, retirement accounts, and some bank accounts—are controlled by the beneficiary designation and not the will.

Proceeds from these assets are based on the instructions you have given to the institution, and not what your will or a trust directs. This is also true for real estate that is held in JTWROS (Joint Tenancy with Right of Survivorship) and any real property transferred through the use of a beneficiary deed. The start of a new year is the time to make sure that any assets with a beneficiary designation are aligned with your estate plan.

Take some time to speak with the people you have named as your agent, personal representative or successor trustee. These people will be managing all or a portion of your estate. Make sure they remember that they agreed to take on this responsibility. Make sure they have a copy of any relevant documents and ask if they have any questions.

Locate your original estate planning documents. When was the last time they were reviewed? New laws, and most recently the SECURE Act, may require a revision of many wills, especially if you own a large IRA. You’ll also want to let your executor know where your original will can be found. The probate court, which will review your will, prefers an original. A will can be probated without the original, but there will be more costs involved and it may require a few additional steps. Your will should be kept in a secure, fire and water-safe location. If you keep copies at home, make a note on the document as to where the original can be found.

Create an inventory of your online accounts and login data for each one. Most people open a new account practically every month, so keep track. That should include email, personal photos, social media and any financial accounts. This information also needs to be stored in a safe place. Your estate planning document file would be the logical place for this information but remember to update it when changing any information, like your password.

If you have a medical power of attorney and advance directive, ask your primary care physician if they have a means of keeping these documents, and explain how you wish the instructions on the documents to be carried out. If you don’t have these documents, make them part of your estate plan review process.

A cover letter to your executor and family that contains complete contact information for the various professionals—legal, financial, and medical—will be a help in the case of an unexpected event.

Remember that life is always changing, and the same estate plan that worked so well ten years ago, may be out of date now. Speak with an experienced estate planning attorney in your state who can help you create a plan to protect yourself and your loved ones.

Reference: The Daily Sentinel (Dec. 28, 2019) “Consider These Items As Part of Your Year-End Plan”

What is an Advance Directive and Do I Need One?

Estate Planning, Health Care, Living Will, Power of Attorney / Advance Directive, Agent, Durable Power of Attorney, Estate Planning Attorney, Health Care, Incapacity, Power of Attorney, St. Petersburg Estate Planning Attorney

These are difficult questions to think about. However, as every estate planning attorney knows, the questions “What is an Advance Directive?” and “Do I need one?” are very important. Should you ever become unable to speak for yourself, reports the Enid News & Eagle in the article “Veteran Connection: What you should know about advance directives,” there is a way to make a plan, so your wishes are known to others and by legally conveying them in advance, making sure you have a say, even when you don’t have a voice.

Everyone needs Advance Directives — Everyone over the age of 18 should have an Advance Directive so family and doctors know your wishes.

The advance directive helps family members and your doctors understand your wishes about medical care. The wishes you express through these two documents described below, require reflection on values, beliefs, views on medical treatments, quality of life during intense medical care and may even touch on spiritual beliefs.

The goal is to prepare so your wishes are followed, when you are no longer able to express them. This can include situations like end-of-life care, the use of a respirator to breathe for you, or who you want to be in the room with you, when you are near death.

It should be noted that an advance directive also includes a mental health component, that extends to making decisions on your behalf when there are mental health issues, not just physical issues.

There are two types of documents: a durable power of attorney for health care and a living will.

The durable power of attorney for health care lets you name a person you trust to make health care decisions when you cannot make them for yourself. This person is called your health care agent or surrogate and will have the legal right to make these decisions. If you don’t have this in place, your doctor will decide who should speak for you. They may rely on order of relationships: a legal guardian, spouse, adult child, parent, sibling, grandparent, grandchild or a close friend.

A living will is the document that communicates what kind of end of life health care you want, if you become ill and cannot communicate with your doctors. This helps your named person and your doctor make decisions about your care that align with your own wishes.

Another very important part of this issue: the conversation with the people who you want to be on hand when these decisions have to be made. Are they willing to serve in this capacity? Can they make the hard decisions, especially if it’s what you wanted and not what they would want? Do you want a spouse to make these decisions on your behalf? Many people do that, but you may have a trusted family member or friend you would prefer, if you feel that your spouse will be too overwhelmed to follow your wishes.

For additional information about Advance Directives and estate planning, download our free books and reports.

Reference: Enid News & Eagle (March 13, 2019) “Veteran Connection: What you should know about advance directives”

Get Estate Planning Details Done in 2019

Estate Planning, Health Care, Living Will, Power of Attorney, Trusts, Wills / Advance Directive, Assets, Estate Planning, Health Care, Living Will, Power of Attorney, St. Petersburg, Titling, Trusts

Are you ready to resolve some of the things in 2019 that you really, really, did plan on doing in 2018? This article from the Pittsburgh Post-Gazette, “As a new year closes in, resolve to get those pesky estate details resolved,” offers to act as a reminder—or a kick in the pants—to get you to take care of these frequently overlooked estate planning details.

Health Care Plans. If you’ve got health care issues or a chronic condition, get your advance directive for health care done. The name of the documents vary by state (in Florida they’re called a Designation of Healthcare Surrogate and a Living Will), but whatever you call it, work with your estate planning attorney to create the documents that convey your wishes, if and when you are not able to communicate them yourself. That means your end of life wishes, so if you end up in the hospital’s intensive care unit your family or health care providers aren’t making decisions based on what they think you might have wanted, but what you have actually declared that you want.

Power of Attorney for Financial Affairs. You’re not giving up any power or control over your finances in having this created. Instead, you are preparing to allow someone to act on your behalf for financial matters, if for some reason you are unable to. Let’s say you become injured in an accident and are in the hospital for an extended period of time. How will your bills be paid? Who will pay the mortgage?

For both of these documents, talk with the people you want to name first, and make sure you are both clear on their responsibilities. Have at least one backup, just in case.

A will and if appropriate, trusts. If you don’t have a will or a trust, why not? Without a will, the state’s laws determine who will receive your assets. Your family may not like the decisions, but it will be too late. Speak with an experienced estate planning attorney to get your will and other documents properly prepared.

Check how your assets are titled. Are they in your name only, jointly titled, etc.? If you have trusts, have you retitled your assets to conform to the trusts? If you have beneficiaries on certain accounts, like life insurance policies and 401(k)s, when was the last time you reviewed your beneficiaries? Don’t be like the doctor who did everything but check beneficiaries. His ex-wife was very happy to receive a large 401(k) account, and there was no recourse for his second wife of 30 years.

Make a list so assets can be located. To finalize these details, you’ll need a list of assets, account numbers and what financial institution holds them. The information will need to be gathered and then organized in a way so key people in your life—your spouse, children, etc.—can find them. Some people put them on a spreadsheet in their home computer, but if your executor does not have a password, they won’t be able to access them. If they are in a safe deposit box that only has your name, they won’t be accessible.

Reference: Pittsburgh Post-Gazette (Dec. 24, 2018) “As a new year closes in, resolve to get those pesky estate details resolved”

What Happens in Your World After You Die?

Estate Planning, Trusts, Wills / Advance Directive, Elder Law Attorney, Estate Organization, Estate Planning Lawyer, Inheritance, Power of Attorney, St. Petersburg, Trustee, Trusts, Wills

We’re not talking about what happens to your soul, or if you are headed to a peaceful place, or even what happens to your physical remains. Have you thought about what happens to the world you leave, your family and friends and your possessions, after you die?

Let’s say you don’t believe in anything in particular. Or you’re deeply spiritual and believe that death will be a wonderous journey. Either way, you should devote time and energy to what happens right here on earth after you die, says Forbes in the article, “What Will Really Happen After You Depart?”

No, not just because it’s the right thing to do and not just because you’re curious. It’s because you want your family to remember you for the awesome legacy you plan on leaving, not because of the horrible hot mess you left behind that they spent three years trying to figure it out, while trying to live their lives.

Estate organization is not the exact same thing as estate planning. An experienced estate attorney or elder law attorney can help you draft your will, your advance directive, your power(s) of attorney and a trust, if you need it. Your attorney most likely also has a copy of those documents.

However, the attorney has no power over what you do with your original estate planning documents, once you leave their office.

One idea is to develop a guidebook or “game plan” for your family and loved ones, while you’re alive. It’s known that there’s a strong correlation between how we face death and prepare our families—and their ability to survive, adjust and start the recovery process. Organizing your estate has been called a “gift of love” that goes far beyond when you can be around to take care of your family.

Answer these questions to start the estate organizing process:

Does a family member know where to find your advance directive, if you end up in the hospital?
Where are your legal documents and who in your family knows where to find them?
Who has access to your bank accounts and knows your login data?
Are you now caring for someone? Who’d assume that responsibility, if you’re unable to do so?
Have you made final arrangements for your death, funeral and burial or cremation?
Who knows about the plans and where the paperwork is located?
Where are your insurance documents, and who knows where to find them?
Who’ll take care of your pets, when you are no longer able?

Let’s also keep in mind that getting all these plans and documents in place is just the first step. They don’t do anyone any good, if you don’t talk with your family and loved ones about them. You have to make sure that they understand your wishes to avoid misunderstandings or family feuds, after you’re not around to correct them. The more you can discuss these matters in a calm, caring fashion, the better their grief process will be. Think of this as your opportunity to show how much you care about them. You want them to remember you with love, grieve in a healthy manner and be able to incorporate your loss, as their lives continue. Memories are a powerful force, and how you prepare for your passing, will also be a memory for them.

Reference: Forbes (September 13, 2018) “What Will Really Happen After You Depart?”

What Goes into a Good Will?

Estate Planning, Wills / Advance Directive, Estate Planning Attorney, Interstate, Wills

If you are a parent, you need a will that names guardians for your minor children. Anyone who is an adult, should have a will.

If you are an adult, you need a will. If you are a parent, you need a will that names guardians for your minor children. Anyone who is an adult, should have a will.

The core of an estate plan is a document known as a will, the legal document that tells your heirs and the court how you want your assets handled upon your death. If you don’t have a will and you die, decisions about the distribution of your possessions and property are made by a judge, who likely doesn’t know who you are, or what you might have wanted to happen to your assets. If you have minor children and have not had a will created, then a judge will also be the one making the decisions about your children. That’s probably not what you or your family want to have happen.

Health Day’s recent article, “Wills & Living Wills,”provides some general rules for writing a will:

In most states, you must be 18 years of age or older.
The testator (author) of the will must be of sound mind for the will to be valid.
The document must clearly state that it’s your will.
You must name an executor–that’s the individual who will see that your estate is distributed, according to your wishes.
You must sign the will in the presence of at least two witnesses.
In many instances, notarizing or recording your will is not required. However, it can protect against any claims that it's invalid.
You and your spouse should have separate wills.

You should also review your will regularly and consider making changes if:

The value of your assets changes.
You marry, divorce, remarry, or expand your family with another child.
You move to a different state.
Your executor passes away or becomes incapacitated, or your relationship changes.
One of your heirs or a loved one dies.
The probate and tax laws affecting your estate change.

It’s also important to draft an advance directive. This includes a living will with directions on what medical care you do or don't want, if you're unable to speak.

Your best course of action is to meet with an experienced estate planning attorney and let him or her guide you through the estate planning process. Because every state has different rules, your estate planning attorney will know what your state does and does not allow.

Reference: Health Day (March 21, 2018) “Wills & Living Wills”

How Much Should We Tell the Children About Our Estate Plan?

Planning for Long-Term Care

Start the New Year with Estate Planning To-Do’s

What is an Advance Directive and Do I Need One?

Get Estate Planning Details Done in 2019

What Happens in Your World After You Die?

What Goes into a Good Will?

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