Estate Planning
David Postic
Top 7 Reasons People Delay Making An Estate Plan

According to a survey conducted earlier in 2019, only 40% of American adults have a Will or Trust. That percentage drops dramatically for younger age groups. For example, only 19% of people ages 18-34 have a Will or Trust.

So what’s the big deal?

As Baby Boomers pass away, experts predict that over $68 trillion (with a ‘trill’) in wealth will be transferred over the next 25 years. And the estate planning of those Boomers will control where all that wealth goes.

Despite the hugeness of those numbers and the importance of estate planning, it is easy to procrastinate when it comes to actually setting your affairs in order. Here are the top 7 reasons (in no particular order) people give us to explain why they delay estate planning:

1. “I’m too young.”

First of all, you are never too young to have an estate plan. I wrote a series of articles specifically geared toward estate planning for Millennials. (Or you can substitute “Millennials” for “Gen Z” or whatever weird thing we are on now.)

Whenever young people say “I don’t have enough assets for an estate plan” or “I’m going to wait until I have a family,” what they are really saying is, “I don’t plan on going anywhere anytime soon.” Because young people don’t die, they live forever.

Top 7 Reasons People Delay Making An Estate Plan
Estate Planning, Taxes
David Postic
Everything You Wanted To Know About Estate ...

The Internal Revenue Service (IRS) recently announced that the estate and gift tax exemption is increasing in 2024 to $13.61 million per person, up from $12.92 million in 2023.

The IRS also confirmed that the annual gift exclusion amount is increasing from $17,000 per person in 2023 to $18,000 per person in 2024.

Read more: IRS Rev. Proc. 2023-34

Okay great, you might be saying to yourself. But what does that mean, and why does it matter?

Great questions.

There are a lot of misconceptions about estate taxes and gift taxes — often referred to as “death taxes.” What they are, who has to pay them, how to avoid them.

This article is my attempt to demystify the topic for you and to help you figure out how these tax changes could affect your estate plan.

Everything You Wanted To Know About Estate & Gift Taxes
Estate Planning
David Postic
8 Questions to Prepare Your Estate Plan for 2024

2023 is almost over.

The end of the year is a time for people to gather together with family and friends, to look back on the past 365 days, and to look forward to better, happier things.

People usually don’t want to think about things like—oh, I don’t know—their mortality. Death. Stuff like that.

However, it is crucial to regularly review and, if needed, update your estate plan. The end of the year is the perfect time to do that.

So before you completely wipe 2023 from your memory, ask yourself these 8 questions to make sure your estate plan is ready for whatever 2024 throws at you.

1. Will the right people get my “stuff”?

First, make sure your will or trust correctly states who will inherit your assets.

You should then review your pay-on-death (POD) beneficiaries on insurance policies, retirement accounts, and other assets.

Do they match the beneficiaries in your will or trust?

Related post: 7 Mistakes to Avoid When Naming Beneficiaries

Many people incorrectly believe that a legal document such as a will or a trust controls what happens to all of their assets.

However, beneficiary designations can override those documents.

For example: Your trust may say that your son John will receive your entire estate and that you are disinheriting your other son, David.

But if your insurance policy lists David as beneficiary, he will still get part of your estate.

You should therefore coordinate your beneficiary designations with your will or trust to make sure all of your assets are distributed the way you want.

8 Questions to Prepare Your Estate Plan for 2024
Estate Planning
David Postic
What's the Difference Between a Will and a ...

Lawyers love to be confusing.

We use insane-sounding words from Latin and Greek and some other languages that I’m pretty sure are completely made up.

Words such as testator, force majeure, per stirpes, and inter vivos.

Our words are so weird, we have to italicize them.

So I’m not surprised when someone asks me whether a Last Will and Testament and a Living Will are the same thing.

After all, both documents have “Will” in their names, right? It would only be reasonable to think that they are similar.

But they are not similar. They are very, very different.

So I’m going to cut through the legal jargon and explain the differences between Wills and Living Wills — and help you decide which one might be best for you.

Last Will and Testament vs. Living Will

Before diving into specifics, it’s first helpful to know how to define estate planning:

An estate plan ensures (1) that the right people are able to care for your SELF in the event you become incapacitated and (2) that the right people are able to get your STUFF in the event of your death.

Every estate planning tool fits into one of those two categories, and a good estate plan should address both areas of focus.

And as luck would have it, I will be discussing both categories in this post.

What's the Difference Between a Will and a Living Will?
Estate Planning
David Postic
3 Magic Ingredients in a Great Letter of ...

So you’ve got some nifty estate planning documents?

You are awesome.

Formal estate planning document can ensure your family is cared for after your death, avoid court, and minimize the burden your loved ones will face when you are gone.

But legal documents are only one part of the equation.

Your estate plan is not complete just because you signed some fancy papers.

Because while formal estate planning documents can avoid legal obstacles after your death, they do not eliminate the myriad other tasks necessary to settle your affairs.

Think of it this way:

If you died today, would your family know what to do?

If they couldn’t remember anything you told them about your estate, would they be able to easily find all the information they need?

Read more: Why You Need to Have an Estate Planning Fire Drill

If you answered “no” to either of those questions, then your estate plan is not complete.

To make things easier on your loved ones after your death, the best thing you can do is create an estate planning letter of instruction.

3 Magic Ingredients in a Great Letter of Instruction

No Kids? Why You Still Need an Estate Plan

No Kids? Why You Still Need an Estate Plan

Many young couples think that, if they don't have kids, they don't need an estate plan. After all, if you die, everything is going to your spouse anyway, right? Not always.

What happens if we don't have an estate plan?

If you are married with no kids, and you do not have an estate plan or prenuptial agreement providing otherwise, the law in Oklahoma says that everything you have goes to your spouse. However, as we have discussed before, your spouse must still go through probate before he or she can actually get your assets. This is the case even if you have a Last Will and Testament providing that your spouse gets everything.

Single? There Are 2 Simple Reasons You Need An Estate Plan

Single? There Are 2 Simple Reasons You Need An Estate Plan

I'm single with no kids. Do I need an estate plan?

The short answer: yes.

Having an estate plan is a good idea no matter your family situation. But when you are single with no children, planning is all the more important to ensure your wishes are followed.

While the law provides clear “default” options in some areas when you are married (e.g., spouses often have the ability to get certain medical information), those defaults are not applicable when you do not have a spouse.

For that reason, it is important for single adults to consider both sides to estate planning: What happens to your STUFF when you die and who takes care of your SELF when you become incapacitated.

What will happen to my STUFF?

Every state has a framework (called "intestacy laws") essentially providing an estate plan by default.

In Oklahoma, for instance, if you are unmarried and have no kids, the law says that, unless you have an estate plan directing otherwise, your estate will go to your parents or, if they are deceased, to your siblings in equal shares. End of story.

That might sound fine to many people. However, intestacy laws are rigid and do not take into account other desires you may have for your property. For example:

Estate Planning for Millennials

Estate Planning for Millennials

With hitting the work force and starting families (not to mention destroying entire industries), Millennials have a lot on their minds. Estate planning may not even be on your radar.

Besides, isn't estate planning just for older, richer folks? Do you even need an estate plan when you're young and poor?

Do Millennials Need an Estate Plan?

Estate planning is beneficial for everyone, including Millennials.

Different types of plans may be better suited for people of different ages or different stages of life. However, any adult will benefit from having an estate plan.

So, what should a Millennial's estate plan look like? What documents should you have? What things do you need to consider before deciding on an estate plan?

Family is one of the most important factors to consider when developing an estate plan. For that reason, we are using our next few blog posts to discuss estate planning considerations for Millennials in a variety of family situations. You can read each article by clicking the links below:

Cryptocurrency: The New Frontier of Estate Planning

Cryptocurrency: The New Frontier of Estate Planning

What if millions, or even billions, of dollars in wealth suddenly disappeared? What if some of your assets are lost after your death and your heirs are unable to recover them? With the rising popularity and value of cryptocurrency, these scenarios are now a very real possibility.

What Is Cryptocurrency?

A cryptocurrency is a digital asset designed to work as a virtual medium of exchange. The "crypto" part of the name comes from the fact that the currency uses cryptography to secure transactions. Think of it like wiring money or trading stocks (all ones and zeros), except that cryptocurrency is not regulated by a central bank or securities commission.

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Estate Tax Portability in a Nutshell

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Estate Tax Portability in a Nutshell

In a world of computers that fit in your pocket and phones on your wrist, "portability" is all the rage. And for the last six years, it has been all the rage in estate planning circles as well — except "portability" in this context has nothing to do with how small something is.

What is estate tax portability?

As of January 1, 2018, the estate tax exemption for individuals is $11.2 million, adjusted for inflation. In other words, if your assets are worth $11.2 million or less at the time of your death (and you have not used any of your combined estate and gift tax exemption), your estate owes no estate tax. But upon the death of the first spouse, the surviving spouse can elect to use the deceased spouse's unused exemption amount (also known as "DSUE"), effectively doubling the estate tax exemption for married couples to $22.4 million. This election is known as estate tax portability.

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