beneficiaries

7 Reasons People Delay Estate Planning

7 Reasons People Delay Estate Planning

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.

What's on Your Estate Planning “Bucket List”

What's on Your Estate Planning “Bucket List”

Everybody knows what a “bucket list” is, right?

It’s a list (duh) of things you want to do before you die (i.e. “kick the bucket”). I won’t get into the weeds about the concept, so if you want to learn more about bucket lists and also ugly-cry through two boxes of Kleenex, watch the 2007 film The Bucket List with Morgan Freeman and Jack Nicholson.

But back to the blog.

Just as you and Morgan Freeman and Jack Nicholson have a bucket list for life, you should also have a bucket list for estate planning. Ask yourself: What do I need to do to arrange my affairs before I die?

Estate planning is about more than just legal documents. A good plan means accounting for your assets and providing the information, documents, and knowledge necessary to ensure a smooth transfer of those assets to the people you want to have them.

To help you create your own estate planning bucket list, here are 10 tips you can use to organize your estate before you die:

1. Get a Will or Trust.

Of course the first item on the bucket list is to create an actual estate plan. I’m an estate planning attorney writing on an estate planning blog. What did you expect?

Formal estate planning documents such as a Last Will and Testament or a Living Trust are crucial to make the administration of your estate as easy as possible. Without them, your estate could be tied up in messy probate — in some cases for years.

7 Mistakes to Avoid When Naming Beneficiaries

7 Mistakes to Avoid When Naming Beneficiaries

“Probate” is a dirty word to most people.

Sure, sometimes it can be helpful. But you generally want to avoid it.

Think of it like the raw broccoli that for some reason is included on every party platter everywhere, but without the dip. No dip, just raw broccoli. Avoid. It.

One of the ways to avoid probate is by naming beneficiaries on your financial accounts and contractual policies.

In estate planning, a beneficiary is a person or entity who receives part of your estate after your death. You can name a beneficiary through your estate planning documents OR through a contract such as a life insurance policy, IRA, or agreement with your bank.

If you designate a beneficiary on an account or policy, then the assets or proceeds of that account or policy will pass directly to the named beneficiary, probate-free, after your death.

Sounds cool, right?

Right. It is very cool.

However, sometimes beneficiary designations can have unintended (and undesirable) consequences. Here are some mistakes to avoid when naming beneficiaries:

1. Not naming a beneficiary

This one seems obvious, but it’s worth mentioning because it is so easy to avoid.

If you do not name a beneficiary (or take other steps to avoid probate), you are virtually ensuring that your estate will be probated. And although probate is not the worst thing in the world, it is costly and time consuming. It is also usually avoidable.

Even if you believe all your accounts and policies have named beneficiaries, double check. Triple check. Check once a year. Do everything you can to make sure you don’t make the silly mistake of forgetting to name a beneficiary.

However, designating beneficiaries is not always as easy as it sounds…

Estate Planning for Young Professionals

Estate Planning for Young Professionals

If you are a young professional, estate planning is probably not even on your radar.

And why on earth should you have to think about it?

You’re young.

You don’t have many assets.

You’re single (and your grandma keeps reminding you about it).

Your family knows what you want.

You have other things to worry about.

You’re going to live forever.

However, estate planning is just as important (if not more important) for single young professionals as for older, wealthier, married-ier individuals.

But how do you create an estate plan? Where should you start? It’s a big question. Lucky for you, we have already done the heavy lifting. Here are 4 quick estate planning tips for young professionals:

1. Get a Durable Power of Attorney

In short, a Durable Power of Attorney is an estate planning document that gives someone (your “Attorney-in-Fact”) the ability to act for you in certain financial and/or medical situations.

“Why is this useful?” you may be yell-asking at your computer screen. And that’s a great question.

11 Estate Planning New Year's Resolutions

11 Estate Planning New Year's Resolutions

There’s nothing quite like the new year to make you think of fresh possibilities and new beginnings.

There’s also nothing quite like way too much turkey, wine, and football over the holidays to make you realize that you should maybe consider some lifestyle changes.

You have probably already started on your list of new year’s resolutions for 2019: read more, get a gym membership (and actually use it this time), spend more time with family, etc. And those are great resolutions. “New year, new me” and all that jazz.

But there is one more goal you should add to your list: organize your estate plan.

While most resolutions are about helping your self, an estate plan is about helping your loved ones. To make it easier for you to set your affairs in order, we created this handy list of 11 Estate Planning Resolutions for 2019:

1. Execute a Trust and/or a Will

You, like a majority of Americans, may not have a living trust or a last will and testament. You may not even know what those documents are. Which one is better? Which one is right for you? What are the differences between a will and a trust?

Both a trust and a will control what happens to your estate — your property, your “stuff” — after your death. However, there is one huge difference between the two: a trust avoids probate, while a will does not.

Yes, even if you have a will, your estate must still go through probate after your death.

Remember that there are two main sides to estate planning: (1) What happens to your “stuff” when you die and (2) who takes care of your self when you become incapacitated. You can solve the first part of that equation in 2019 by creating a trust or a will.

Get Our FREE 2018 Estate Planning Checklist

Get Our FREE 2018 Estate Planning Checklist

Prepare yourself to be shocked: 2018 is almost over.

If you’re like me, you’re looking forward to a few weeks of Christmas carols, football, family, bowl games, presents, and (best of all) football.

This is also a great time to look back on the year that was:

Perhaps you started a new job or got a raise; maybe you made an addition (by birth or marriage) or subtraction (by death or divorce) to the family; or maybe you purchased a house, received a windfall inheritance, or started a new business.

Life can change a lot in a year.

But do those life changes mean you need to make changes to your estate plan?

To help you answer that question, we have put together a 10-question checklist to review your estate plan.

Do I need to pay inheritance taxes?

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.

What is the difference between a Will and a Trust?

What is the difference between a Will and a Trust?

Estate planning is a very broad (and sometimes confusing) topic. But when you push past all the legalese and statutes, there are two main sides to estate planning: What happens to your STUFF when you die and who takes care of your SELF when you become incapacitated. This blog post will focus on the first part of that equation.

When it comes to deciding what happens to your STUFF, most people are familiar with the two main estate planning options:

Option 1: a Last Will and Testament.

Option 2: a Living Trust.

There are, of course, other estate planning options that can control what happens to your assets after your death, but we will save those topics for another day.

Wills vs. Trusts

If you died today, what would you want to happen to your STUFF? Maybe you want your family to get everything. Or maybe you don't want a particular family member to get anything. Whatever your preferences, most people care about what happens to their STUFF after their death.

5 Estate Planning Tips for Unmarried Couples

5 Estate Planning Tips for Unmarried Couples

Like it or not, marriage is a business proposition.

"But isn't it also about love?" Yes, yes. Love and feelings and all that stuff. But marriage can also have a huge financial impact on a family.

Marriage (or, rather, not being married) can have an equally huge impact on an estate plan.

According to U.S. Census Bureau data, the number of adults in cohabiting (unmarried) relationships relationships is up 29% since 2007. That's about 18 million adults, roughly half of which are younger than 35.

With this rising trend of cohabitation among Millennials, it is important — perhaps more now than ever — to understand the estate planning implications for unmarried couples.

Do unmarried couples need an estate plan?

Remember that there are two sides of estate planning: What happens to your STUFF when you die and who takes care of your SELF when you become incapacitated. 

Those goals do not change when you get married, so an estate plan for an unmarried couple usually looks about the same as an estate plan for a married couple. It is just much more important that an unmarried couple has an estate plan in the first place.

Married With Children: Estate Planning for Young Families

Married With Children: Estate Planning for Young Families

When you have a kid, everything else usually takes a back seat. There's often no time for fun things like hobbies or other activities and definitely no time for un-fun things estate planning.

But what would happen to your child if you and your spouse suddenly died or became incapacitated? Who will take care of your child's medical needs and daily care? Who will manage your assets until your child reaches adulthood?

A well-crafted estate plan can address these issues and more, and ensure that your kids are taken care of after you are gone.