Paul O. Dillon, Attorney at Law

What Is the Great Wealth Transfer?

Without the right estate planning, a lot of the expected inherited money may go to taxes and legal fees instead of heirs hoping for a windfall, says a recent article from Morningstar, “Looking forward to the great wealth transfer? Expect an $84 trillion mess instead.”

Most people who could potentially leave assets to their heirs or a charity don’t have an estate plan. They might also spend all their money before they die. The big inheritance predicted by personal finance pundits is more likely to consist of life lessons, personal values, or a collection of salt and pepper shakers than the family home or big chunks of cash.

After COVID, people started taking a last will and testament and estate plan more seriously. So many families lost loved ones unexpectedly and were stunned not only by their loss but also by the complexity and cost of settling estates without estate plans, wills, or trusts. That seems to have faded, which will burden another generation.

Some assets can be passed along through a beneficiary designation, like bank or retirement accounts. However, if you intend to pass the family home or a vacation home to the next generation, you’ll need to plan for it.

At the very least, an estate plan should include a will. To make the transfer of property like a home easier and less costly for heirs, you’ll want to meet with an estate planning attorney and have a trust created.

If you die without estate planning, your heirs must go to court to determine how your estate should be distributed. Most people hire an estate planning attorney to manage this process—the same attorney who could have created an estate plan to avoid the time, stress and cost of not having an estate plan.

As of this writing, the current federal estate tax exemption of $13.99 million per person is still scheduled to expire at the end of 2025. If Congress doesn’t act, it will be cut in half, meaning many more Americans will pay federal and state estate taxes. Whether or not this exemption will be extended is yet unknown. High net-worth families have already taken steps to prepare. However, many are still sitting on the sidelines waiting to see what happens. Waiting may turn out to be an expensive decision.

Families with less wealth may lose their retirement nest eggs because of healthcare spending and increased longevity.

The chances of spending down your assets and leaving nothing behind depend on your estate planning. If you want to leave your children and grandchildren an inheritance, make an appointment with an estate planning attorney to learn how to make this happen.

Reference: Morningstar (Feb. 25, 2025) “Looking forward to the great wealth transfer? Expect an $84 trillion mess instead”

How to Address Cryptocurrency in Your Estate Plan

Cryptocurrency has become an increasingly prevalent part of personal wealth. This new asset class requires traditional tools, like wills and trusts, to be updated to account for the decentralized nature of digital assets. The many stories of people who lost millions, because they didn’t secure their own crypto, should serve as a warning to anyone who wants to bequeath their digital wealth. What to do is addressed in a recent article from Kiplinger, “Heirs Inheriting Crypto? Don’t Make It a Headache for Them.”

Probate is a genuine concern for crypto. Probate is the process of a court validating a will and distributing assets. It often takes a long time and can be expensive. The volatility of crypto makes the lengthy process of probate a serious concern. Delays in probate could create dramatic losses.

Access to cryptocurrency is another challenge. Ownership of digital assets is tied to private keys. A lost key means lost wealth. Since crypto, like Bitcoin or Ethereum, are decentralized and operate on blockchain technology. As a result, there’s no financial or trading institution to call for help. If the access is lost, so is the asset.

With traditional assets, designating beneficiaries is the simplest way to pass assets directly to heirs and skip probate entirely. To do this with crypto, you must log into your account and see if the platform allows beneficiary designations.

Some cryptocurrencies call this a Transfer on Death or TOD form. Fill out the form correctly and keep hard and digital copies for your records. Even if you never print any other documents, you may want to print these and keep them in a secure location.

Digital wallets are also part of crypto estate planning. Digital wallets store private keys required to access, send and receive digital assets. Some digital wallets don’t offer beneficiary designations, so you’ll need to be very diligent about keeping a record of access credentials and secure private keys.

You’ll need to include detailed instructions on accessing a digital wallet, including passwords, recovery phrases, or locations of physical devices, including your phone, tablet, or computer. Consider using an encrypted file or hardware wallet for private keys. Custodial services are available. However, be sure they offer the security you need.

Estate planning attorneys may recommend using a trust for digital assets to be sure that they are managed and transferred without court involvement. Your estate planning attorney will explain how a revocable living trust may help you retain control of your crypto while you are living and provide directions for how you want it to be distributed after your death.

Just as you need to fund the trust by retitling assets for a traditional asset, you’ll need to move your cryptocurrency to a wallet owned by the trust. You may need to create a new wallet under the trust’s name if you can’t transfer funds to an existing wallet.

The trust will need a successor trustee. This trustee must know how private keys and recovery works for digital assets. They’ll oversee keeping your private keys and other information safe and how to access wallets or exchanges holding your wealth.

Your will should not include account numbers or wallet addresses, as they become part of the public record during probate. You’ll need another document to contain the information for your trustee to access the digital assets. If you own crypto or less well-known types of digital assets, providing access information and specific directions will be even more critical.

Speak with an estate planning attorney who has experience with digital assets. They’ll help you protect these assets, so they aren’t lost if the unexpected should occur.

Reference: Kiplinger (Feb. 16, 2025) “Heirs Inheriting Crypto? Don’t Make It a Headache for Them”

Does an Estate Plan Improve Retirement?

Estate planning is more than determining who you want to inherit your worldly goods. It’s about planning for taxes, protecting yourself while alive and making life easier for heirs by streamlining asset transfers. A recent article from Kiplinger, aptly titled “Here’s How Estate Planning Can Make Your Retirement Easier,” explains it in detail.

Trusts are used to protect assets and are widely considered the most effective tools for estate planning. Timing matters in estate planning. If you might need to apply for Medicaid for long-term care, keep in mind there is a five-year look-back period. Trusts need to be funded for at least five years before assets are considered exempt for Medicaid purposes.

Let’s say you establish a trust when you turn 70 but need long-term care at age 73. Medicaid won’t consider you eligible until age 75. We can’t know when we will need long-term care. However, planning ahead makes applying for Medicaid better than dealing with an application during a health crisis. Talk with your estate planning attorney about a Medicaid Asset Protection Trust to see if this might be a good fit.

Life insurance is often used to help with estate taxes. While most of us aren’t likely to worry about estate taxes while the federal exemption remains high, there are still state estate taxes and some state inheritance taxes to consider. The federal estate tax exemption may not sunset in 2026. However, a life insurance policy may be an option for your family if it does. Today’s life insurance policies are often combined with long-term healthcare coverage, which is always a wise option as we age.

Beneficiary designations are an often-overlooked estate planning pitfall with costly consequences. If you’ve named someone on an account as the beneficiary, they will receive the asset, regardless of what your will says. If you neglect to update your beneficiary designations, it will be next to impossible for other heirs to get the assets, even if they do go to court. This is an easy thing to fix. Review beneficiary designations every time you review your estate planning documents.

Estate and retirement planning doesn’t end once you have a plan in place. Both estate plans and retirement plans need to be monitored and updated. Tax laws change, markets fluctuate and personal circumstances change.

Regular reviews of your estate planning with your estate planning attorney every three to five years will allow you to ensure that your wishes are current, and no opportunities have been missed. Regular updates will ensure that beneficiaries are correct, trusts are funded properly and your will is still aligned with your state’s laws.

Reference: Kiplinger (Feb. 18, 2025) “Here’s How Estate Planning Can Make Your Retirement Easier”

How Estate Plan Protects Your Family

Estate planning is one of many ways to make a difference to your family’s future. Whether starting from scratch or revising a will created many years ago, your estate plan gives you control over your assets and secures your loved ones. The title of a recent article from Florida Today says it all: “Your family’s future is important to you. These estate-planning tips can help secure it.”

If you don’t have a will, get started on this part right away. A will outlines how you want assets to be distributed upon your death. Without one, the probate court in your jurisdiction will determine who receives your property, and while you may not be around to see the results, your family will. If you have a will but haven’t reviewed it in a while, you’ll want to know if it still makes sense for you. Life is all about changes, good and bad, and your will should reflect your current life.

Living trusts keep assets in the family and pass from one person to the next without court involvement. Property owned by a trust goes directly to the beneficiaries without going through the probate process. Even better, trusts are used to appoint a trustee who will manage the assets if you become incapacitated. A trust works while you are living and after you have died. Families with significant assets, blended families and anyone looking for a smooth way to pass assets to loved ones rely on trusts.

People underestimate the importance of a Power of Attorney. A durable power of attorney gives a person of your choosing the legal authority to act on your behalf in financial matters. If you are too sick to pay bills or manage investments, an agent (the person named in the POA) can act on your behalf. Without this document, your family must petition the court to appoint someone to manage your life. The court has no obligation to name a family member or even someone you know to oversee your life. It’s far better to simply have an estate planning attorney create a POA suited to your needs.

You’ll also want an advance healthcare directive, sometimes called a living will, to express your wishes for healthcare in case you can’t. This document includes your wishes regarding life-sustaining treatments, organ donation and end-of-life care. The healthcare directive serves two critical purposes: it allows you to state your wishes and spares your family from not knowing what you want during a healthcare crisis. An emergency is no time for your children to guess what Mom wants.

Beneficiary designations are used in many financial accounts to allow the asset to go directly from the original owner to the beneficiary without going through probate. Beneficiary designations override your will. If you want your nephew to inherit your IRA but your IRA’s beneficiary designation is your spouse, your nephew gets nothing. People who have been divorced need to be extra careful about making sure their beneficiary designations are updated.

Parents of minor children must designate a legal guardian in their estate plan. Establishing a trust to own an inheritance for healthcare, education and living expenses ensures that their guardian will have funds to care for the children. Minors may not inherit property, so making a trust is the best way to protect and control their inheritance.

An estate plan, including a will, power of attorney, healthcare directive and trusts, is central to protecting your family and their future. An experienced estate planning attorney will help identify your concerns and know how to address them in a legally enforceable manner.

Reference: Florida Today (Feb. 8, 2025) “Your family’s future is important to you. These estate-planning tips can help secure it.”

Don’t Procrastinate on Estate Planning Moves

Planning for wealth transfers, whether you are the person doing the giving or the recipient, is essential to avoid expensive surprises, says a recent article from Go Banking Rates, “Wealth Transfers: 9 Unexpected Obstacles to Plan For Before It’s Too Late.”

Wealth transfers fall into two categories. Beneficiary wealth is wealth passed from your estate to beneficiaries. The second is legacy wealth, which is when entities, like trusts, are created to pass wealth on in perpetuity. The first step in planning for wealth transfer is deciding what you want to happen to the wealth you’re passing on.

The next step is figuring out the tax implications of the wealth transfer. A traditional IRA or 401(k) account is tax-advantaged, while non-qualified assets include stocks, bonds, investment accounts and Certificates of Deposit (CDs). Unless they fall into certain categories, an heir receiving an inherited traditional IRA must empty the account within ten years with Required Minimum Distributions and pay income taxes on those distributions. For this and many other reasons, estate planning includes tax planning.

Estate planning includes articulating your wishes for how wealth is to be passed. Without having a will prepared by an estate planning attorney, you risk your entire estate being tied up in court probate proceedings for months or even years. Fights among family members are more likely to occur when your wishes aren’t made clear through enforceable legal documents.

You’ll also want to discuss your estate plan with your family. A sudden inheritance, if not expected, could create tax issues, sow discord between family members and lead to expensive litigation if some feel they were treated unfairly.

People think they don’t need an estate plan because they are too young, still healthy, or don’t have enough assets to warrant taking the time to create an estate plan. This is simply not true. Anyone over the age of 18 will benefit from having an estate plan. An estate plan includes preparing for incapacity and creating documents, like a Power of Attorney and Healthcare Proxy, so someone else can take care of you if you are injured or too sick to communicate your wishes. As you accumulate more assets and age, these documents need to be reviewed and updated to reflect changes in status.

A commonly overlooked and often expensive mistake in estate planning is to neglect to check and update beneficiary designations. This lesson is learned when people get divorced or remarry. When the spouse passes, the new spouse is stunned to discover the recipient of these accounts goes to the prior spouse.

Don’t forget to leave specific instructions in writing for tangible assets. This may include real estate property, cars and houses. Some people want to give their children the family home but have them sell it immediately to take the cash. If your wishes aren’t expressed, don’t expect them to be followed.

Speak with an estate planning attorney before it’s too late to put your wishes into an estate plan. Talk with your family about your estate plan. Making sure everyone knows what you want and putting it down on paper will protect your wishes and your loved ones.

Reference: Go Banking Rates (Jan. 24, 2025) “Wealth Transfers: 9 Unexpected Obstacles To Plan For Before It’s Too Late.”

Money Tips for the Coming Year

A fresh start for 2025 should include your financial life and your health and wellness resolutions. A recent article from USA Today, “Start 2025 off right with these 9 money moves,” offers good suggestions to make this new year a good one.

Get out of debt. If you have high-interest debt and high-earning investments, you’re only treading water and not getting ahead. Take care of the high-interest debt first if you want to see your net worth grow.

Try living below your means. Too many of us spend more than we bring in and then try to catch up (See “Get out of debt” above). The more significant the difference between what you earn and spend, the better your savings accounts will grow. If you’re saving for retirement and your kid’s education, changing spending from what you want to what you need will help.

Build an emergency fund. Unless you are lucky enough to have untapped wealth, you need an emergency fund in cash ready to pay for at least three months of non-negotiable expenses. This means taxes, housing, food, transportation, medical expenses, etc. Few people are ready to deal with the economic impact of losing a job, having to replace a car, or needing major surgery. Having an emergency fund protects you from needing to use retirement funds or take on debt to deal with a short-term financial crisis.

Revaluate your portfolio. Investing in great companies for the long haul is how most people set their investment portfolios. However, it makes sense to look at a rebalance every now and then. People who are in their high-earning years may be okay with a 60/40 split between stocks and bonds. However, as you get closer to retirement, you may want to change this. After a few years, when stocks grow faster than bonds, your 60/40 split from a few years ago might have become an 80/20 split.

Maximize retirement accounts. If you can make use of tax-advantaged retirement funds, your future self will thank you. Use IRAs and 401(k)s to build long term wealth. If your company has a matching program, make sure to maximize your contributions using what is essentially free money. Your retirement withdrawals will be tax-free, if you can use a Roth account and pay taxes when you make contributions.

Check beneficiary designations. Make a list of all the financial accounts with beneficiary designations and check to see if the people you named to receive the assets on your death are still the right people. This is especially true if you’ve gone through a divorce, moved, or married.

Get your estate planning documents in order. If you don’t have a will, durable power of attorney, healthcare power of attorney, living will, or advanced directive, make an appointment with an estate planning attorney now to get these documents in order. If you have these documents but they are more than four years old, you’ll want to update them to be sure they still reflect your wishes. If you have young children, be sure your will includes naming a guardian.

Celebrate the New Year by organizing your estate planning and financial life. Next year at this time, you’ll be glad you did.

Reference: USA Today (Jan. 5, 2025) “Start 2025 off right with these 9 money moves”

Avoid Common Estate Planning Mistakes

Otherwise sound estate plans can be undermined by critical mistakes. A recent article from The National Law Journal, “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast],” outlines how to avoid a number of common mistakes and protect the estate plan and the family from the effects of these missteps.

Not providing complete and accurate information. Transparency is critical when creating an estate plan. There are times when life’s circumstances may be sensitive and difficult to share with a professional.  However, secrets can tear estate plans to bits. If assets are being hidden to avoid paying taxes or if there is an unacknowledged biological child, the integrity of the estate plan could be jeopardized.

This is especially relevant in a blended family. If a prior marriage or a child from a prior marriage is not disclosed, the result could be litigation between heirs. Hidden debts or undisclosed assets may surface after death, leaving executors and heirs with tax liabilities and family strife.

Failure to coordinate estate and financial instruments. Financial investments, life insurance policies and estate plans are rarely all started and completed at the same time. However, these and other accounts need to be coordinated so they work together. If a will says all three children should receive equal shares of an estate, but only one child is named as a beneficiary on a life insurance policy, the three are not going to receive equal shares. Provisions with different instructions in trusts, wills and beneficiary designations will only lead to trouble.

This is a relatively easy problem to solve; it just takes time and attention. Review estate planning documents every few years, including wills, trusts, any account with a beneficiary designation, power of attorney documents and life insurance policies. An estate planning attorney is always willing to speak with a financial advisor and CPA to ensure that the estate plan and financial tools will work together.

Talk with your family about your estate plan. A lack of trust and communication leads to estate plan failure and family fights. If you are uncomfortable talking with family members, consider setting up a family meeting with your estate planning attorney. If the family is spread across the country, an online video meeting can be coordinated.

Even the best of intentions can lead to problems. If one family member is struggling financially while the others enjoy robust earnings, parents may wish to leave more of their estate to the child having money problems. Talking about this openly with all of the siblings while parents are still living is far better than giving the family a major jolt when expectations aren’t met. If the conversation doesn’t happen, a painful legacy may be created.

Relying on Joint Tenancy to transfer assets. It may seem like joint tenancy is an easy way to transfer assets upon death. However, it can undo the intentions of a will or a trust. Assets held in joint tenancy pass directly to the surviving tenant, transferring outside of the estate plan. If a parent puts one child’s name on a joint account but not others, the child on the account is under no legal obligation to share the asset with their siblings, setting the stage for family discord and often, litigation.

Joint tenancy should be reviewed along with all other ownership and estate planning documents to consider how it will impact the estate plan. Revocable trusts may offer the same flexibility, while also ensuring that assets are distributed according to the intent of the overall estate plan.

Relying on informal agreements. A verbal promise between close family members may feel good. However, it won’t be enforced if one party fails to live up to their promise. This situation arises frequently when family heirlooms or personal possessions are promised but end up in another person’s hands. Documenting these promises and discussing decisions with heirs can avoid disputes and damaged relationships.

Effective estate planning requires attention to detail, communication and the guidance of an experienced estate planning attorney. Ensuring that the estate is properly planned has the added bonus of protecting the relationships between family members, which is the most valuable legacy of all.

Reference: The National Law Journal (Dec. 17, 2024) “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast]”

Avoid Common Estate Planning Mistakes

Otherwise sound estate plans can be undermined by critical mistakes. A recent article from The National Law Journal, “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast],” outlines how to avoid a number of common mistakes and protect the estate plan and the family from the effects of these missteps.

Not providing complete and accurate information. Transparency is critical when creating an estate plan. There are times when life’s circumstances may be sensitive and difficult to share with a professional.  However, secrets can tear estate plans to bits. If assets are being hidden to avoid paying taxes or if there is an unacknowledged biological child, the integrity of the estate plan could be jeopardized.

This is especially relevant in a blended family. If a prior marriage or a child from a prior marriage is not disclosed, the result could be litigation between heirs. Hidden debts or undisclosed assets may surface after death, leaving executors and heirs with tax liabilities and family strife.

Failure to coordinate estate and financial instruments. Financial investments, life insurance policies and estate plans are rarely all started and completed at the same time. However, these and other accounts need to be coordinated so they work together. If a will says all three children should receive equal shares of an estate, but only one child is named as a beneficiary on a life insurance policy, the three are not going to receive equal shares. Provisions with different instructions in trusts, wills and beneficiary designations will only lead to trouble.

This is a relatively easy problem to solve; it just takes time and attention. Review estate planning documents every few years, including wills, trusts, any account with a beneficiary designation, power of attorney documents and life insurance policies. An estate planning attorney is always willing to speak with a financial advisor and CPA to ensure that the estate plan and financial tools will work together.

Talk with your family about your estate plan. A lack of trust and communication leads to estate plan failure and family fights. If you are uncomfortable talking with family members, consider setting up a family meeting with your estate planning attorney. If the family is spread across the country, an online video meeting can be coordinated.

Even the best of intentions can lead to problems. If one family member is struggling financially while the others enjoy robust earnings, parents may wish to leave more of their estate to the child having money problems. Talking about this openly with all of the siblings while parents are still living is far better than giving the family a major jolt when expectations aren’t met. If the conversation doesn’t happen, a painful legacy may be created.

Relying on Joint Tenancy to transfer assets. It may seem like joint tenancy is an easy way to transfer assets upon death. However, it can undo the intentions of a will or a trust. Assets held in joint tenancy pass directly to the surviving tenant, transferring outside of the estate plan. If a parent puts one child’s name on a joint account but not others, the child on the account is under no legal obligation to share the asset with their siblings, setting the stage for family discord and often, litigation.

Joint tenancy should be reviewed along with all other ownership and estate planning documents to consider how it will impact the estate plan. Revocable trusts may offer the same flexibility, while also ensuring that assets are distributed according to the intent of the overall estate plan.

Relying on informal agreements. A verbal promise between close family members may feel good. However, it won’t be enforced if one party fails to live up to their promise. This situation arises frequently when family heirlooms or personal possessions are promised but end up in another person’s hands. Documenting these promises and discussing decisions with heirs can avoid disputes and damaged relationships.

Effective estate planning requires attention to detail, communication and the guidance of an experienced estate planning attorney. Ensuring that the estate is properly planned has the added bonus of protecting the relationships between family members, which is the most valuable legacy of all.

Reference: The National Law Journal (Dec. 17, 2024) “Estate Planning Mistakes—2025 Annual Refresher—Part 3 [Podcast]”

How to Balance Love and Legacy in a Second Marriage?

Getting married for the second or even third time presents many challenges for estate planning, finances and family dynamics. A thoughtful strategy can build a harmonious family and protect legacies, according to a recent article from The Street, “Love and Legacy: Balancing the Two in a Second Marriage.”

Finances can be a flash point for subsequent marriages, especially if spouses have different levels of assets. Mature couples typically come to a second marriage with children, houses, retirement accounts, alimony and credit card debt. How will assets be distributed, what will inheritances look like and how will the couple plan for the future? These are just a few questions to address when marrying again.

Other issues to consider:

Home ownership. Should the new spouse be added to the deed if one spouse owns a home and the other spouse moves in? This has implications for estate planning. If both spouses are on the deed, what is the plan upon the death of the first spouse? If the home automatically passes to the surviving spouse, the children of the deceased spouse may be excluded from their share of the home ownership.

Beneficiary designations. Marrying again with healthy retirement accounts requires looking ahead. If the new spouse is named a beneficiary, are the deceased’s children disinherited? What if a spouse wishes to leave money to their biological children only. However, the surviving spouse won’t have enough money to live on?

Inheritance rights. Balancing the inheritance of biological children while ensuring that the spouses have protected each other takes advance planning. Without it, a surviving spouse could be left homeless or dependent upon adult children for support. An estate planning attorney may recommend a marital trust to provide for the surviving spouse, while ensuring an inheritance for the children.

Social Security benefits. For those who counted on the higher benefit level of their first spouses, remarrying may impact SSI, surviving spouses, or divorced surviving spouse benefits. This is something to explore before marriage, since it can’t be undone.

These issues may feel overwhelming. However, tackling them before marriage can prevent friction between the couple and stepchildren. Among the many plans for a wedding, an appointment with an estate planning attorney should be made to create a personalized estate plan to address your unique situation, including children from prior marriages.

Your meeting should also include a complete review of all wills, trusts, beneficiary designations and retirement plans. Ensure that your documents reflect your new marriage and distribute assets according to your wishes.

Blended families are complicated and require personalized estate, tax, and financial planning. The increasing numbers of people choosing to love again and blend their families show how much people value being part of a family. Protecting your family with a well-thought-out estate plan can start a new marriage on the right foot.

Reference: The Street (Dec. 19, 2024) “Love and Legacy: Balancing the Two in a Second Marriage”

What Happens If Aging Parents Won’t Discuss or are Ill-Informed about Estate Planning?

For the past 10 years, a librarian in southern California has lived in a no-win situation. Andre, one of four siblings, agreed to serve as executor—but their parents won’t say anything about their assets, their wishes, or their estate plan. This situation, detailed in the article “Estate Plan Crisis: What To Do When Your Parents Won’t Communicate” from next avenue, is common and will test sibling relationships unnecessarily.

The only thing Andre knows is that each parent has a financial and medical Power of Attorney for the other. This legal document names a person, referred to as the “agent,” who can fulfill the person’s wishes if they become incapacitated. If you have a POA, you should also have a successor POA. In the case of Andre’s parents, where both parents are elderly, having a backup is paramount, as it’s entirely possible both parents could be incapacitated at the same time. In keeping with their closed-door policy, Andre’s request for an alternate POA was denied, with parents claiming the executor would automatically have power of attorney if they become incapacitated. This is simply wrong. The POA dies with the person.

Conversations with Andre’s siblings were as fruitless as the conversations with their parents. They didn’t want to get involved, even though they may be more qualified than Andre to manage an estate.

Why would parents do this to their children? Many elderly people say they don’t want to create an estate plan to be a burden on their children. However, this is completely backwards. Having an estate plan created by an experienced estate planning attorney reduces the burden, giving offspring the tools to carry out their parent’s wishes and making life easier for them.

Another common mistake: people think children or spouses have the automatic right to make medical or legal decisions in a crisis. Without the correct legal documents (POA, HIPAA Release, Advanced Directive or Living Will, Healthcare Proxy and others), spouses and children have no right to speak with physicians or be involved with medical decisions.

If the correct estate planning documents are not in place, someone else makes a host of decisions. Doctors may make life-or-death decisions. A guardian will be in charge of an incapacitated person’s finances. Courts will appoint administrators to distribute assets. Minor children will be raised by whoever the court believes will be their best caretakers.

Estate planning need not be complicated. It starts with a consultation with an estate planning attorney, who will explain what is needed in your state. Their guidance will prevent disasters, like the one facing Andre.

• A few pointers:
• Be consistent with beneficiaries, titles and deeds. All estate planning documents, including wills, beneficiary designations, trusts and transfer-on-death designations, need to work together. For instance, if you name a nephew as the beneficiary designation on your IRA and then name your niece to receive the same IRA in your will, the designation on the IRA will override your will. Your niece and nephew may not speak to each other again.
• If you move to another state, you may need to revise estate documents, since these are state-specific laws.
• Most importantly, meet with an estate planning attorney, have an estate plan created and talk with your executor and your heirs about your plan. More communication, not less, is a worthy legacy.

Reference: next avenue (Dec. 2, 2024) “Estate Plan Crisis: What To Do When Your Parents Won’t Communicate”