Not exactly material for scintillating conversation. In fact, I’d bet most of us like to avoid this topic because it can be confusing, and it requires lots of decision-making. And, well, yes, it forces one to think about one’s own mortality. Estate planning, after all, is a roadmap about what you want to happen after you move on from this life. While it may not be a fun topic, it is indeed a necessary one.
ESTATE PLAN: YOU ALMOST SURELY NEED ONE
Almost everyone needs some kind of estate plan. If you’re young, healthy, unmarried, have no children, and have no significant or unusual assets . . . perhaps you could talk me into the idea that you don’t entirely need an estate plan. Even in such (rare) cases, I strongly recommend making sure your beneficiary designations are completed and up to date (for example, on your bank/credit union savings accounts and retirement benefit plan). But, if you are married, and/or have kids, and/or have significant or unusual assets, and/or own part or all of a business, you most definitely need an estate plan!
WHAT IS AN ESTATE PLAN, ANYWAY?
What do we talk about when we talk about estate planning? There are six documents that should be part of most everyone’s estate plan and you should keep each updated and current. Also, don’t forget about assets with your beneficiary designations. For most Iowans, that’s good – six documents, keeping them current, and also remembering about those assets with beneficiary designations.
Sure, estate planning is complicated, but not that complicated. I’ll show you.
SIX “MUST HAVE” DOCUMENTS OF YOUR ESTATE PLAN
There are six documents that should be part of most everyone’s estate plan:
We’ll go through each document briefly, so you have a sense of what each entails.
ESTATE PLAN QUESTIONNAIRE
Estate planning involves facing heavy questions and, depending on the amount of assets and beneficiaries you have, may take quite a bit of time and thought. I recommend clients (and even those who aren’t my clients) complete an estate plan questionnaire.
An estate plan questionnaire is an easy way to get all of your information in one place, and it should help you understand and prioritize estate planning goals. (I must also admit a questionnaire makes it easier for your attorney to build your estate plan!)
As with any project, it helps “to begin with the end in mind.” A questionnaire can help get you there.
LAST WILL AND TESTAMENT
Now let’s get to the will. The will is the bedrock document of every estate plan, and it’s a little more complicated than other documents.
With your will, you’ll be answering three major questions:
Who do you want to have your stuff? A will provides for orderly distribution of your property at death according to your wishes. Your property includes both tangible and intangible things. (An example of tangible items would be your coin collection. An example of an intangible asset would be stocks.)
Who do you want to be in charge of carrying out your wishes as expressed in the will? The “executor” is the person who will be responsible for making sure the will is carried out as written.
Who do you want to take care of your kids? If you have minor children (i.e., kids under age 18), you’ll want to designate a legal guardian(s) who will take care of your children until they are adults.
POWER OF ATTORNEY FOR HEALTH CARE
A power of attorney for health care designates someone to handle your health care decisions for you if you become unable to make those decisions for yourself. This essentially gives another person the power to make decisions on your behalf. For example, if you don’t want to be kept alive with machines, you can clearly outline that in your power of attorney for health care. But keep in mind that power of attorney for health care isn’t just about end-of-life decisions – it can cover any medical situation.
POWER OF ATTORNEY FOR FINANCIAL MATTERS
The power of attorney for financial matters is similar, only your designated agent has the power to make decisions and act on your behalf when it comes to your finances. This gives them the authority to pay bills, settle debts, sell property, or anything else that needs to be done if you become incapacitated and unable to do this yourself.
It might be obvious by now, but I’ll say it just in case: choosing an agent for a power of attorney requires that you think long and hard about who would be best suited for the job and who you trust.
DISPOSITION OF PERSONAL PROPERTY
Now, let’s get to the disposition of the personal property. This is where you get specific about items you want particular people to have. If you’re leaving everything to one or two people, then you may not need to fill this out. But, if you know you want your niece Suzie to have a specific piece of jewelry, and your nephew Karl to have that antique bookshelf he loved, then you’d say so in this document.
DISPOSITION OF FINAL REMAINS
We come to the disposition of final remains. This document is where you get to tell your loved ones exactly how you want your body to be treated after you pass away. If you want a marching band and fireworks shooting your ashes into the sky (that’s a thing, by the way), then this is where you make it known. It can be as general as simply saying “I want to be cremated,” or it can be specific and include details of plots you’ve already purchased or arrangements you’ve already made.
If you undergo a major life event, you may well want to revisit with your estate planning lawyer, to see if this life event requires changing your estate planning documents.
What do I mean by a major life event? Some common such events would include:
The birth or adoption of a child or grandchild
Marriage or divorce
Illness or disability of you, your spouse, or other family member
Purchasing a home or other large asset
Moving to another state
Large increases or decreases in the value of assets, such as investments
If you or your spouse receives a large inheritance or gift
If any family member, or other heir, passes away
This is just a short list of life events that should cause you to re consider your estate plan. There are many others.
DON’T FORGET ABOUT YOUR BENEFICIARY DESIGNATIONS
There are six “must have” estate planning documents, plus you need to keep them current. Also, don’t forget about your beneficiary designations. For example, savings and checking accounts, life insurance, annuities, 401(k)s, pensions, and IRAs are all transferred via beneficiary designations. These beneficiary designations actually trump your will.
Regarding assets with beneficiary designations, you must make sure that designations are correctly filled out and supplied to the appropriate institution.
WHAT OTHER DOCUMENTS MIGHT YOU NEED BESIDES THESE SIX “MUST HAVE” ESTATE PLANNING DOCUMENTS?
For many Iowans, what I’ve outlined above is enough. There may be folks who have, say, more than $1 million in assets, or who have complex assets (for example, more than one piece of real estate), or own part or all of a robust business, or otherwise have unusual situations. In such cases, a trust may be helpful. But that will be more “advanced” estate planning. What I’ve described above is an excellent start.
There it is in a nutshell. This is what goes into an estate plan.
Whether it’s complicated or simple, it does require some thought and time. But it’s worth the investment – a proper estate plan can save you and your estate costs and fees; help your family and friends; and provide you peace of mind.
Perhaps most importantly, through proper estate planning, you can help your favorite charities in ways large and small. Really, without estate planning, it’s not possible, at your death, to help nonprofits you care about. With an estate plan, you can be a real-life charitable superhero!
https://www.gordonfischerlawfirm.com/wp-content/uploads/2021/05/scott-graham-OQMZwNd3ThU-unsplash.jpg13352000Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2021-06-01 09:00:212022-01-10 14:35:50Everything* You Need to Know About Estate Planning (Day 1)
A trust really isn’t as complicated as it first may seem. After all, there are only three parties to a trust.
A Settlor, Trustee, & Beneficiary
A trust is created when a property owner transfers the property to a person with the intent that the recipient holds the property for the benefit of someone else. So, there are three parties to a trust: (1) the owner who transfers the property (the settlor, or sometimes called the donor or grantor); (2) the person receiving the property (the trustee); and (3) the person for whose benefit the property is being held (the beneficiary).
Note that although a trust involves three parties, it does not require three persons. One person can play multiple roles. For example, in a typical revocable inter vivos trust, it is quite common for the person establishing the trust to be the initial trustee and the principal beneficiary. In this situation, one person is all three parties—they are the settlor, the trustee, and the beneficiary.
There is one limitation to the rule of one person wearing multiple hats. The same person cannot be the sole trustee and the sole beneficiary of the trust. In such an event, it is said merger occurs, and the trust is terminated. Why so? The essence of a trust is that it divides legal title from beneficial ownership, and merger ends this division.
In practical terms, however, merger is rarely an issue. “Wait!” you shout. You just said that in a typical revocable inter vivos trust, the person establishing the trust can be trustee and beneficiary. Yes, in this situation one person is all three parties—the settlor, the trustee, and the beneficiary. But, in almost all situations, one person isn’t the sole beneficiary. Such a trust will designate other beneficiaries who will benefit from the property after the settlor’s death. So, one person can indeed wear three hats.
Trusts aren’t that difficult to understand and also can be an effective estate planning tool to meet your wealth transmission goals. Want to learn more? Email me at gordon@gordonfischerlawfirm.com. I offer a free one-hour consultation to everyone, without any obligation. I’d be happy to talk to you at any time.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/08/charles-deluvio-271640-e1502532277316.jpg18873648Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-05-12 09:40:232020-05-18 11:28:29Three Parties to a Trust & the Doctrine of Merger
To all the moms out there (including my own!), happy Mother’s Day! We all have our own unique relationships and therefore unique lists with an endless number of things we can and should thank our moms for. But the one thing we all have in common is there are not enough words and never the perfect gifts that fully encompass how thankful we are for all they’ve given us. Bath salts, candles, and lotions are nice. A massage or pedicure sounds even better! These gifts are kind, but they pale in comparison to all the tangible and intangible things your mother has given you over the years.
That’s why I propose this year you give your mom a gift that’s unconventional, yet incredibly valuable…an estate plan! Why is this one of the greatest gifts for a loved one?
An estate plan leads to peace of mind. Your mom can feel good knowing if the unexpected happens, then the legal “stuff” surrounding your life is accounted for.
Estate planning means that you (the testator) get to make the decisions about who you want to have what stuff and when.
Estate planning isn’t just about death. Documents like financial and health care powers of attorney play an important role if your mom were to be incapacitated by a debilitating accident or illness. Everyone wants the ability to choose the people they want to make important decisions regarding their money and health instead of a court-appointed guardian or conservator.
Estate planning means your mom can plan for her estate to benefit the causes and organizations she cares for through charitable bequests.
Estate planning saves your mother’s family (like you!) time and money in attorney’s fees and court costs in the probate process.
By encouraging your mom to execute an estate plan, you are recognizing that you want her wishes to be heard on important matters like disposition of final remains and a living will. (It makes up for all the times you didn’t follow her directions as a kid!)
Estate plans can also be seen as a representation of your everlasting love for your mother, because estate plans never expire! They need to be reviewed regularly and updated when goals or big life-changing events happen, but a valid estate plan will last as long as your mom wants it to. What other Mother’s Day gifts can you say that about?
How do you gift someone an estate plan you ask? Well, you certainly can’t buy one at a store, but this is your chance to get creative.
Gift the gift of information. Even sharing the benefits and educating her on the main components of an estate plan is an amazing present.
Connect her with an estate planning attorney. Sometimes the hardest part of estate planning is simply getting started. When you work with an estate planning attorney (in lieu of something with a high potential for negative unintended consequences like a DIY will off the internet), they help guide and consult you through the process on top of writing the actual documents.
Give a storage container. This is a gift you could actually put a bow on! There are many different ways you can choose to store your estate plan, so take stock of what your mother has in terms of secure storage. Is there a locked file cabinet readily available or does she need a water-proof, fire-proof place to keep her original estate plan? The storage container could be a sort of representative for the estate plan that is to come.
Help her gather her information to fill out the Estate Plan Questionnaire. An Estate Plan Questionnaire helps you and your attorney collect all the important details related to your estate in one place.
Gift your assistance. Let your mom know that when she’s ready to discuss her planning decisions that you’ll be there to listen, and if necessary, bring your siblings (if any) and other family members to the table so that everyone is on the same page.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2018/07/flower-pink.jpg8541280Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-05-10 09:40:522020-05-18 11:28:30Happy Mother's Day! Give Your Mom a Gift That Lasts a Lifetime
Everything* You Need to Know About Estate Planning (Day 1)
Estates & Estate Planning, Powers of Attorney, Trusts, Wills, Wills, Trusts & EstatesEstate planning.
Not exactly material for scintillating conversation. In fact, I’d bet most of us like to avoid this topic because it can be confusing, and it requires lots of decision-making. And, well, yes, it forces one to think about one’s own mortality. Estate planning, after all, is a roadmap about what you want to happen after you move on from this life. While it may not be a fun topic, it is indeed a necessary one.
ESTATE PLAN: YOU ALMOST SURELY NEED ONE
Almost everyone needs some kind of estate plan. If you’re young, healthy, unmarried, have no children, and have no significant or unusual assets . . . perhaps you could talk me into the idea that you don’t entirely need an estate plan. Even in such (rare) cases, I strongly recommend making sure your beneficiary designations are completed and up to date (for example, on your bank/credit union savings accounts and retirement benefit plan). But, if you are married, and/or have kids, and/or have significant or unusual assets, and/or own part or all of a business, you most definitely need an estate plan!
WHAT IS AN ESTATE PLAN, ANYWAY?
What do we talk about when we talk about estate planning? There are six documents that should be part of most everyone’s estate plan and you should keep each updated and current. Also, don’t forget about assets with your beneficiary designations. For most Iowans, that’s good – six documents, keeping them current, and also remembering about those assets with beneficiary designations.
Sure, estate planning is complicated, but not that complicated. I’ll show you.
SIX “MUST HAVE” DOCUMENTS OF YOUR ESTATE PLAN
There are six documents that should be part of most everyone’s estate plan:
We’ll go through each document briefly, so you have a sense of what each entails.
ESTATE PLAN QUESTIONNAIRE
Estate planning involves facing heavy questions and, depending on the amount of assets and beneficiaries you have, may take quite a bit of time and thought. I recommend clients (and even those who aren’t my clients) complete an estate plan questionnaire.
An estate plan questionnaire is an easy way to get all of your information in one place, and it should help you understand and prioritize estate planning goals. (I must also admit a questionnaire makes it easier for your attorney to build your estate plan!)
As with any project, it helps “to begin with the end in mind.” A questionnaire can help get you there.
LAST WILL AND TESTAMENT
Now let’s get to the will. The will is the bedrock document of every estate plan, and it’s a little more complicated than other documents.
With your will, you’ll be answering three major questions:
POWER OF ATTORNEY FOR HEALTH CARE
A power of attorney for health care designates someone to handle your health care decisions for you if you become unable to make those decisions for yourself. This essentially gives another person the power to make decisions on your behalf. For example, if you don’t want to be kept alive with machines, you can clearly outline that in your power of attorney for health care. But keep in mind that power of attorney for health care isn’t just about end-of-life decisions – it can cover any medical situation.
POWER OF ATTORNEY FOR FINANCIAL MATTERS
The power of attorney for financial matters is similar, only your designated agent has the power to make decisions and act on your behalf when it comes to your finances. This gives them the authority to pay bills, settle debts, sell property, or anything else that needs to be done if you become incapacitated and unable to do this yourself.
It might be obvious by now, but I’ll say it just in case: choosing an agent for a power of attorney requires that you think long and hard about who would be best suited for the job and who you trust.
DISPOSITION OF PERSONAL PROPERTY
Now, let’s get to the disposition of the personal property. This is where you get specific about items you want particular people to have. If you’re leaving everything to one or two people, then you may not need to fill this out. But, if you know you want your niece Suzie to have a specific piece of jewelry, and your nephew Karl to have that antique bookshelf he loved, then you’d say so in this document.
DISPOSITION OF FINAL REMAINS
We come to the disposition of final remains. This document is where you get to tell your loved ones exactly how you want your body to be treated after you pass away. If you want a marching band and fireworks shooting your ashes into the sky (that’s a thing, by the way), then this is where you make it known. It can be as general as simply saying “I want to be cremated,” or it can be specific and include details of plots you’ve already purchased or arrangements you’ve already made.
KEEP UPDATED AND CURRENT
OK, so you’ve gone to an estate planning lawyer, and these six “must have” estate planning documents have been drafted and signed. What else? You need to keep these documents updated and current.
If you undergo a major life event, you may well want to revisit with your estate planning lawyer, to see if this life event requires changing your estate planning documents.
What do I mean by a major life event? Some common such events would include:
This is just a short list of life events that should cause you to re consider your estate plan. There are many others.
DON’T FORGET ABOUT YOUR BENEFICIARY DESIGNATIONS
There are six “must have” estate planning documents, plus you need to keep them current. Also, don’t forget about your beneficiary designations. For example, savings and checking accounts, life insurance, annuities, 401(k)s, pensions, and IRAs are all transferred via beneficiary designations. These beneficiary designations actually trump your will.
Regarding assets with beneficiary designations, you must make sure that designations are correctly filled out and supplied to the appropriate institution.
WHAT OTHER DOCUMENTS MIGHT YOU NEED BESIDES THESE SIX “MUST HAVE” ESTATE PLANNING DOCUMENTS?
For many Iowans, what I’ve outlined above is enough. There may be folks who have, say, more than $1 million in assets, or who have complex assets (for example, more than one piece of real estate), or own part or all of a robust business, or otherwise have unusual situations. In such cases, a trust may be helpful. But that will be more “advanced” estate planning. What I’ve described above is an excellent start.
There it is in a nutshell. This is what goes into an estate plan.
Whether it’s complicated or simple, it does require some thought and time. But it’s worth the investment – a proper estate plan can save you and your estate costs and fees; help your family and friends; and provide you peace of mind.
Perhaps most importantly, through proper estate planning, you can help your favorite charities in ways large and small. Really, without estate planning, it’s not possible, at your death, to help nonprofits you care about. With an estate plan, you can be a real-life charitable superhero!
BEGIN TODAY
Why not start right now on your own plan for the future with my free estate plan questionnaire? It’s provided to you free, without any obligation. I would love to discuss your estate plan with you; reach out at any time by email, gordon@gordonfischerlawfirm.com, or cell phone, 515-371-6077.
*OK, not everything. But many things, let’s say, an excellent start.
Three Parties to a Trust & the Doctrine of Merger
Trusts, Wills, Trusts & EstatesA trust really isn’t as complicated as it first may seem. After all, there are only three parties to a trust.
A Settlor, Trustee, & Beneficiary
A trust is created when a property owner transfers the property to a person with the intent that the recipient holds the property for the benefit of someone else. So, there are three parties to a trust: (1) the owner who transfers the property (the settlor, or sometimes called the donor or grantor); (2) the person receiving the property (the trustee); and (3) the person for whose benefit the property is being held (the beneficiary).
Note that although a trust involves three parties, it does not require three persons. One person can play multiple roles. For example, in a typical revocable inter vivos trust, it is quite common for the person establishing the trust to be the initial trustee and the principal beneficiary. In this situation, one person is all three parties—they are the settlor, the trustee, and the beneficiary.
What a Merger Means
There is one limitation to the rule of one person wearing multiple hats. The same person cannot be the sole trustee and the sole beneficiary of the trust. In such an event, it is said merger occurs, and the trust is terminated. Why so? The essence of a trust is that it divides legal title from beneficial ownership, and merger ends this division.
In practical terms, however, merger is rarely an issue. “Wait!” you shout. You just said that in a typical revocable inter vivos trust, the person establishing the trust can be trustee and beneficiary. Yes, in this situation one person is all three parties—the settlor, the trustee, and the beneficiary. But, in almost all situations, one person isn’t the sole beneficiary. Such a trust will designate other beneficiaries who will benefit from the property after the settlor’s death. So, one person can indeed wear three hats.
Let’s Talk More About Trusts
Trusts aren’t that difficult to understand and also can be an effective estate planning tool to meet your wealth transmission goals. Want to learn more? Email me at gordon@gordonfischerlawfirm.com. I offer a free one-hour consultation to everyone, without any obligation. I’d be happy to talk to you at any time.
Happy Mother’s Day! Give Your Mom a Gift That Lasts a Lifetime
Estates & Estate PlanningTo all the moms out there (including my own!), happy Mother’s Day! We all have our own unique relationships and therefore unique lists with an endless number of things we can and should thank our moms for. But the one thing we all have in common is there are not enough words and never the perfect gifts that fully encompass how thankful we are for all they’ve given us. Bath salts, candles, and lotions are nice. A massage or pedicure sounds even better! These gifts are kind, but they pale in comparison to all the tangible and intangible things your mother has given you over the years.
That’s why I propose this year you give your mom a gift that’s unconventional, yet incredibly valuable…an estate plan! Why is this one of the greatest gifts for a loved one?
How do you gift someone an estate plan you ask? Well, you certainly can’t buy one at a store, but this is your chance to get creative.
Already got your mom a gift? That’s cool. I’m sure she would love it in addition to the estate plan!
Questions, concerns, or otherwise from you or your mother? Contact me at any time via email or phone (515-371-6077).