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

Estate Planning

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Do I Need to Pay Inheritance Taxes?

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Do I Need to Pay Inheritance Taxes?

Do you want to pay less in taxes?

Of course you do. I would be worried if you wanted to pay more in taxes...

The question is HOW you can pay less in taxes. Here's one way: estate planning.

A good estate plan can help you minimize your tax burden. Specifically, estate planning can impact (1) income taxes, (2) inheritance taxes, and (3) estate taxes.

Most people are familiar with income taxes. However, they are less familiar with estate taxes; and many people have no idea that inheritance taxes even exist. So it comes as no surprise that one of the most common questions I get from prospective clients is:

"Do I need to pay inheritance taxes?"

It is a good question and is usually accompanied by a number of other, related questions:

  • What, exactly, is an inheritance tax?

  • Is an inheritance tax the same thing as an estate tax?

  • How can I avoid having to pay an inheritance tax?

This blog post will answer these questions, give you a better understanding of the difference between inheritance taxes and estate taxes, and explain how those laws operate in Oklahoma.

The Ultimate Guide to Lawsuit-Proofing Your Estate Plan

The Ultimate Guide to Lawsuit-Proofing Your Estate Plan

Here's a scary question:

Does your estate plan actually protect your estate?

You spent all that time and money to make sure that your estate will be protected from taxes, from probate, and from creditors — but you may have forgotten one major thing:

You forgot to protect your estate from your heirs.

The sad truth is that children and other heirs often fight over the estate of a deceased loved one, even if the decedent left a valid estate plan. And fighting often means lawsuits.

Heirs can contest an estate plan for a number of reasons: jealousy, greed, sibling rivalries or disagreements. Regardless of why a lawsuit is filed, it means trouble for everyone involved.

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Anthony Bourdain and Estate Plans for Separated Spouses

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Anthony Bourdain and Estate Plans for Separated Spouses

In the wake of celebrity chef and TV personality Anthony Bourdain's tragic death last week, many articles have been written about his complicated family situation, specifically that Bourdain and wife were permanently separated (but not divorced) at the time of his death.

Like death, divorce and separation are topics nobody likes to talk about. However, they have very different effects on an estate plan. In Anthony Bourdain's case, that leaves a host of estate planning issues unresolved — and millions of dollars up for grabs.

This blog post will discuss the impact of divorce and separation on estate planning, focusing on the following topics:

What is the difference between divorce and legal separation?

Why choose legal separation over divorce?

Can a spouse still inherit after a legal separation?

How can I protect my estate from a separation?

What's the Difference Between a Will and a Trust?

What's the Difference Between a Will and a Trust?

Estate planning is a very broad (and often confusing) topic.

There are countless estate planning options available, and the “best” estate planning option for you may depend on hundreds of different factors.

At bottom, though, estate planning can be boiled down to a simple definition:

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

The second part of that equation — what happens to your stuff, i.e., your assets — is what most people have in mind when they think about estate planning.

And when it comes to deciding what happens to your stuff, there are two main options:

  • a Last Will and Testament

  • a Living Trust

While there are other estate planning options that can control what happens to your assets after your death, I will save those topics for another day.

For now, let’s focus on the main differences between Wills vs. Trusts.

Why Do You Need an Estate Plan?

If you died today, what would you want to happen to your assets?

Top 12 Estate Planning Myths

Top 12 Estate Planning Myths

According to a 2015 Harris poll, 64% of Americans don’t have a Will. Why? Maybe it's just procrastination, or maybe it's the fact that there are a lot of myths about estate planning. Very likely, it's a combination of both.

Yet estate planning is not nearly as scary as some people believe it to be. So to help put your mind at ease, here are the 12 most common estate planning myths, debunked.

Myth #1: If I have a Will, I can avoid probate. 

Having a Will does NOT avoid probate. If you die with a Will, that document must be filed in court along with a probate petition, verified and validated by the court, creditors paid, assets inventoried, and all the other wonderful parts of probate completed before your heirs get anything. While there are ways to avoid probate, merely having a Will is not one of them.

Myth #2: Estate planning is only for the wealthy.

Remember our definition of estate planning: An estate plan says what happens to your STUFF when you die and who takes care of your SELF when you become incapacitated. So even if you do not have many assets, an estate plan can be beneficial to provide for your (or a loved one's) medical care or for the care of your children in the event something happens to you.

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