The Real Cost to Your Family: Relying Upon Only a Will

This is the second in an ongoing series of articles discussing the true costs and consequences of failed estate planning. The series highlights a few of the most common — and costly — planning mistakes we encounter with clients. If the series exposes any potential gaps or weak spots in your plan, meet with your Personal Family Lawyer to learn how to properly address them.

Whenever the topic of estate planning comes up, people invariably mention creating a will. And with good reason — having a will is a foundational aspect of your estate plan.

However, a will is only one small part of effective planning. In fact, if your plan consists of a will alone, you’re guaranteeing your family will have to go to court when you die. There’s a saying in the lawyer world of estate planning: “Where there’s a will, there’s a probate.” And it’s no laughing matter.

In our view, a primary goal of estate planning is to keep your family out of court and out of conflict no matter what happens to you. Yet with only a will in place, your plan can fall woefully short of that goal, leaving your loved ones — and yourself, if you become incapacitated — susceptible to getting stuck in an unnecessary, expensive, time-consuming, and public court process.

Estate PlanningStephen PennerJuly 13, 2023Wills, Probate, Creditors, Incapacity

The Real Cost to Your Family: Not Planning for Incapacity

This is the first in an ongoing series of articles discussing the true costs and consequences of failed estate planning. The series highlights a few of the most common — and costly — planning mistakes we encounter with clients. If the series exposes any potential gaps or weak spots in your plan, meet with your Personal Family Lawyer to learn how to properly address them.

When it comes to estate planning, most people automatically think about taking legal steps to ensure the right people inherit their stuff when they die. And these people aren’t wrong.

Indeed, putting strategies in place to protect and pass on your wealth and other assets is a fundamental part of the planning equation. However, providing for the proper distribution of your assets upon your death is just one part of the process.

And it’s not even the most critical part.

Planning that’s focused solely on who gets what when you die is ignoring the fact that death isn’t the only thing you must prepare for. You must also consider that at some point before your eventual death, you could be incapacitated by accident or illness.

Four Ways Wise Planning Can Protect Your Family's Assets

While most people assume only the uber wealthy need to worry about asset protection, those with less wealth and fewer assets may be at even greater risk. For example, if you’re a multi-millionaire, a $50,000 judgment against you might not be that big of a burden. But for a family with a modest income, home, and savings, it could be catastrophic.

Asset protection planning isn’t something you can put off until something happens. Like all planning, to be effective, you must have asset protection strategies in place well before something happens. Plus, your asset protection plan isn’t a one-and-done deal: It must be regularly updated to accommodate changes to your family structure and asset profile.

There are numerous planning strategies available for asset protection, but four of the most common include the following:

Estate PlanningStephen PennerJuly 12, 2023Insurance, Exemptions, Business, Asset Protection

Vacation Ready: Essential Legal Preparations for a Worry-Free Getaway

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! Our Personal Family Lawyer® is 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.

Estate Planning Pitfalls - 3 Mistakes That Could Make Your Estate Plan Worthless

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 will not 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 is 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.

Estate PlanningStephen PennerJuly 11, 2023Family Wealth Inventory

Have a Trust? How the Corporate Transparency Act Affects You

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 hold on, you might be wondering, how do you figure out if your Trust needs to be reported? Fear not, for we have some answers. Keep reading, and you'll soon uncover all the essential details!

Awakened Planning: How to Talk About Estate Planning at Your Family Reunion

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!

Four Reasons Why You Can't Afford to Go Without an Estate Plan

When it comes to putting off or refusing to create an estate plan, your mind can concoct all sorts of rationalizations: “I won’t care because I’ll be dead,” “I’m too young,” “That won’t happen to me,” or “My family will know what to do.”

But these thoughts all come from a mix of pride, denial, and above all, a lack of real education about estate planning and the consequences to your family of not planning. Once you understand exactly how planning is designed to work and what it protects against, you’ll realize there is no acceptable excuse for not having a plan.

Indeed, the first step in creating a proper plan is to thoroughly understand the potential consequences of going without one. In the event of your death or incapacity, not having a plan could be incredibly traumatic and costly for both you and your family, who will be forced to deal with the mess you’ve left behind.

While each estate and family are unique, here are some of the things most likely to happen to you and your loved ones if you fail to create a plan.

Seven Important Things To Do With Your Parents Before They Die

Time is fleeting and life is short. You have only one life. It is far far too easy to forget the important things, and to miss opportunities in the short moments that they appear before slipping away. In the context of estate planning, it is our privilege and honor to help families establish the legal planning area of their lives for the good of their loved ones. But, in doing so, it is very frequent that we speak to children after their parents have passed away, and we hear regrets about their not having spent time or commitment with their parents.

Those we love are only with us for a short time. We all too often allow many petty grievances or personality conflicts to distract us. In his Facebook post “Processes to go through with your parents before they die,” Daniel Schmachtenberger, founder of the Critical Path Institute, outlined seven simple exercises to use with your parents that can offer significant healing and completion for their life and yours.

While Daniel shared these processes in the context of the impending death of a parent, the reality is that your parents are heading toward death, even if there is no official diagnosis. And starting these processes when mortality isn’t immediately on the table is even better. Here are the six processes that Daniel outlined, along with our commentary and suggestions:

The Six Things You Should NOT Include In Your Will

A will is one of the most basic estate planning tools. While relying solely on a will is rarely a suitable option for most people, just about every estate plan includes this key document in one form or another.

A will is used to designate how you want your assets distributed to your surviving loved ones upon your death. If you die without a will, state law governs how your assets are distributed, which may or may not be in line with your wishes.

That said, not all assets can (or should) be included in your will. For this reason, it’s important for you to understand which assets you should put in your will and which assets you should include in other planning documents like trusts.

While you should always consult with an experienced planning professional like us when creating your will, here are a few of the different types of assets that should not be included in your will.

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