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

representatives

Coronavirus: Why You Need a Power of Attorney

Coronavirus: Why You Need a Power of Attorney

Unless you have been living in a bubble (which might actually be a good idea), you have heard about the novel Coronavirus, or COVID-19, which the World Health Organization has declared to be a pandemic.

It’s a scary time in the world, and this article isn’t intended to make things scarier.

On the contrary.

My goal is to help you get some peace of mind. Because even though this health crisis has left many of us feeling helpless, there are a few simple — yet incredibly important — legal tools that can make a HUGE difference for you and your loved ones.

Estate Planning Matters Now More Than Ever

Coronavirus is not an ordinary virus.

It can ultimately cause respiratory failure, requiring patients to be intubated and put on a ventilator. (You know, that thing hospitals are running low on?)

For many, that’s the most frightening aspect of this pandemic: it can cause temporary or permanent incapacity, i.e., the inability to care for or make decisions for yourself.

Does a Name Change Mean I Should Update My Estate Plan?

Does a Name Change Mean I Should Update My Estate Plan?

Most people have the same questions about estate planning. What is the difference between a will and a trust? or do I need to go through probate? or will I need to pay estate taxes?

Since one of the goals of this website is to help you learn more about estate planning, I figured that I would share one of those common questions recently sent to me by a client:

I created a trust several years ago which provides that my daughter will receive 1/2 of my estate. But since my trust was created, my daughter gotten married and changed her last name. Do I need to update my trust in order for her to receive her inheritance?

It is not uncommon for people to change their names. A name change is most often due to marriage or divorce, but as the hit TV show Friends taught us, you can also change your name whenever you feel like it. (Author’s note: The episode where Phoebe changes her name to Princess Consuela Bananahammock and Mike changes his name to Crap Bag is pretty accurate. That is actually a legal thing that people can do.)

Considering all the time and care and money you have spent on your estate plan, it is important to make sure that name changes (for whatever reason they happen) do not mess it up.

Durable Powers of Attorney: Explained

Durable Powers of Attorney: Explained

Kanye West once said that no one man should have all that power. Fortunately for 'Ye, one man doesn't have to have all that power if he has an essential estate planning document called a Durable Power* of Attorney. (*This was most likely the "power" Kanye was referring to in his hit song, "Power".)

What does a power of attorney do?

Generally speaking, a power of attorney gives someone (your "attorney-in-fact") the ability to act for you in financial and/or medical situations. In other words, one man doesn't have to have all that power — he can share it with someone else. This authority can be limited in scope, e.g., a single real estate transaction; or it can be broad, e.g., any and all healthcare and financial decisions.

The Definitive Guide to Advance Directives

The Definitive Guide to Advance Directives

An advance directive for health care is a legal document that allows you to express your wishes for end-of-life care in the event you are unable to communicate those wishes to your doctor. In Oklahoma, an advance directive covers three topics: (1) the living will, (2) the health care proxy, and (3) anatomical gifts.

Part One: The Living Will

The main portion of an advance directive is the “living will,” by which you state your preference for the use of certain treatments under certain conditions. This is the most technical part of the document, so it is important to understand what these terms mean.

Why You Need to Have an Estate Planning Fire Drill

Why You Need to Have an Estate Planning Fire Drill

Remember fire drills when you were in school?

An alarm goes off.

There’s a certain sense of panic, but you walk — in an orderly fashion — to the exit and meet your classmates outside.

The teacher takes attendance, the coordinator makes sure everyone is accounted for, and then you go back inside and move on with your day.

Most students probably think fire drills are a waste time, and surely teachers would prefer to not have their lessons interrupted while their students go outside.

So why have fire drills?

To make sure we know what to do if and when a real fire occurs. Because if there is a real fire, there can be dire consequences if you don’t have a plan.

What is an estate planning fire drill?

For similar reasons, we encourage our clients to conduct a “fire drill” regarding their estate plan.

In other words, pretend you have died and walk your family through the process of what they must do to set your affairs in order.

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