Paul O. Dillon, Attorney at Law

How Young Is Too Young to Have a Will?

Being young and healthy is unfortunately no protection against an early death, which is why all adults aged 18 and up and especially parents need to have an estate plan, including a will, says a recent article, “You’re Young and Barely Making Ends Meet. Why You May Need a Will,” from Barron’s.

Only about 22% of young adults aged 29—44 and nearly 15% of adult Gen-Zs, aged 19—28, have estate plans. This poses risks for their spouses, if they are married, and their children, if they are parents.

A last will and testament is used to distribute your assets upon death. This is the best-known aspect of estate planning. Still, it’s only one of several documents, including a living will, also known as an advance directive, which designates who may make medical decisions on your behalf in the event of incapacity. While someone in their 20s or 30s may not have children, they may still enjoy activities like rock climbing, bungee jumping and engaging in physically demanding pursuits. People in their 20s and 30s are statistically more likely to be injured in car accidents, skiing, or while travelling.

This doesn’t mean anyone should limit their activities. However, it does mean young adults need to have estate plans in place to express their wishes in case of incapacity or death and protect themselves and their loved ones. Once these documents are prepared and executed, parents or the individual named in the living will are allowed to communicate with doctors, access medical records and be involved in a young adult’s care. Otherwise, decisions may be made by doctors and not family members.

Young adults with small children need a will to name a guardian who will be responsible for raising their children in the event both parents die unexpectedly. If there is no will, or if the will doesn’t include a guardian, a court will decide who will raise the children.

Every adult should also have a power of attorney. This gives a person of your choice the legal ability to manage your finances, including paying bills. A power of attorney can be customized to permit your agent—the person named in the POA—to perform specific actions but not others. For instance, you may want the person to be able to access accounts and pay bills, but not to sell your Pokémon card collection.

Another important aspect of an estate plan is to verify the beneficiaries named on various types of accounts. Any assets with a named beneficiary, such as an IRA, investment account, or insurance policy, will not need to go through probate and can be transferred directly to the beneficiary. However, if the IRA you opened at your first job named your last girlfriend as the beneficiary and you’ve since broken up, make sure to change the name on the account. The beneficiary designation overrides the will, so it won’t matter if you left all your assets to your fiancé; your former partner will still inherit the account.

Estate planning attorneys assist individuals at all ages and stages of life with their estate planning needs. The estate plan you need in your 20s and 30s differs from the one you need in your 60s. However, at any age, an estate plan is essential for being a responsible adult.

Reference: Barron’s (March 15, 2025) “You’re Young and Barely Making Ends Meet. Why You May Need a Will”

Making Your Own Decisions Through Estate Planning

Estate planning is often set aside in favor of more fun activities, like vacation planning and preparing for family holidays. However, once done, it provides great peace of mind. A recent article from MLT News, “Estate planning—making personal choices,” looks at what an estate plan encompasses.

Durable Power of Attorney for Finances and Health Care. These documents allow you to name the person you choose to make financial or health care decisions if you cannot because of illness or incapacity. They can take effect immediately upon being executed or created as “springing” documents that take effect when you are deemed incapacitated. However, springing POAs may lead to delay, so most people choose Durable Powers. Your estate planning attorney will explain the best options for you.

Advanced Directives focus on your wishes for medical care when you are unable to communicate and are nearing end-of-life or likely not to live without artificial means. Your advanced directives can be very specific about what kinds of treatment you want or when you would prefer to be taken off life-support.

Disposition Authorizations are used to convey your wishes for burial, cremation, memorial services, or other terms for what you want to happen to your body after you die. These vary by state, so check with your estate planning attorney. While difficult to consider, if you have strong preferences, it’s best to have them in a written document.

Last Will and Testament direct how you want your assets to be distributed after death. A will is also used to nominate a personal representative or executor who will settle your estate. If you have minor children, your will nominates a guardian to raise them. This is a highly personal choice you can make with a will. Otherwise, the court will decide who will care for your children.

Trusts are used to manage assets during life and after death. A trust is a separate legal entity created to hold assets and distribute them to beneficiaries. A revocable trust allows the person who establishes the trust (the “grantor”) to control the assets held in the trust. However, the trade-off for continued control of assets is that they don’t have the same level of protection as an irrevocable trust. An Irrevocable Trust requires the grantor to give up control of the assets. However, the assets are better protected against creditors and are not countable for Medicaid purposes.

Your estate plan should also include checking on beneficiary designations, which are used in a variety of financial and investment accounts, IRAs, 401(k)s and insurance policies, to pass assets directly to beneficiaries upon your death.

An estate plan includes tax planning to address tax liability by taking assets out of an estate and placing them inside trusts or LLCs (Limited Liability Companies), depending on the family’s circumstances.

For families with members who are disabled, Special Needs Trusts are used to safeguard funds to plan for the individual’s future while maintaining their eligibility for means-tested government benefits.

By creating a comprehensive estate plan with an experienced estate planning attorney, you get to be the one making decisions about your future and your legacy. Without it, the laws of your state and the courts will make decisions about what will happen to you during serious illness, who receives the assets you’ve saved and who will raise your children. We know you’d rather make these decisions than have them made for you.

Reference: MLT News (March 4, 2025) “Estate planning—making personal choices”

Making Your Own Decisions Through Estate Planning

Estate planning is often set aside in favor of more fun activities, like vacation planning and preparing for family holidays. However, once done, it provides great peace of mind. A recent article from MLT News, “Estate planning—making personal choices,” looks at what an estate plan encompasses.

Durable Power of Attorney for Finances and Health Care. These documents allow you to name the person you choose to make financial or health care decisions if you cannot because of illness or incapacity. They can take effect immediately upon being executed or created as “springing” documents that take effect when you are deemed incapacitated. However, springing POAs may lead to delay, so most people choose Durable Powers. Your estate planning attorney will explain the best options for you.

Advanced Directives focus on your wishes for medical care when you are unable to communicate and are nearing end-of-life or likely not to live without artificial means. Your advanced directives can be very specific about what kinds of treatment you want or when you would prefer to be taken off life-support.

Disposition Authorizations are used to convey your wishes for burial, cremation, memorial services, or other terms for what you want to happen to your body after you die. These vary by state, so check with your estate planning attorney. While difficult to consider, if you have strong preferences, it’s best to have them in a written document.

Last Will and Testament direct how you want your assets to be distributed after death. A will is also used to nominate a personal representative or executor who will settle your estate. If you have minor children, your will nominates a guardian to raise them. This is a highly personal choice you can make with a will. Otherwise, the court will decide who will care for your children.

Trusts are used to manage assets during life and after death. A trust is a separate legal entity created to hold assets and distribute them to beneficiaries. A revocable trust allows the person who establishes the trust (the “grantor”) to control the assets held in the trust. However, the trade-off for continued control of assets is that they don’t have the same level of protection as an irrevocable trust. An Irrevocable Trust requires the grantor to give up control of the assets. However, the assets are better protected against creditors and are not countable for Medicaid purposes.

Your estate plan should also include checking on beneficiary designations, which are used in a variety of financial and investment accounts, IRAs, 401(k)s and insurance policies, to pass assets directly to beneficiaries upon your death.

An estate plan includes tax planning to address tax liability by taking assets out of an estate and placing them inside trusts or LLCs (Limited Liability Companies), depending on the family’s circumstances.

For families with members who are disabled, Special Needs Trusts are used to safeguard funds to plan for the individual’s future while maintaining their eligibility for means-tested government benefits.

By creating a comprehensive estate plan with an experienced estate planning attorney, you get to be the one making decisions about your future and your legacy. Without it, the laws of your state and the courts will make decisions about what will happen to you during serious illness, who receives the assets you’ve saved and who will raise your children. We know you’d rather make these decisions than have them made for you.

Reference: MLT News (March 4, 2025) “Estate planning—making personal choices”

Retirees Need Six Legal Documents

Around half of all retirees surveyed have a last will and testament. Most are without crucial legal documents, according to a recent article from MSN, “6 Legal Documents That Most Retirees Need—but Don’t Have.” Here’s what you need to know about these critical documents.

Medical Power of Attorney or Healthcare Proxy. This document gives another person the authority to make medical decisions for you if you can’t make the decisions and communicate them yourself. People wrongly assume their spouse or adult children will automatically be permitted to talk with healthcare providers. This is not true, and you don’t want to find out about this in the middle of an emergency. If you are seriously injured and want your loved ones to be involved in your care, your estate planning attorney can create a medical power of attorney with your wishes clearly expressed. A downloaded form may not be valid in your state, since each state’s rules are different. You may also have wishes different than standardized forms, so you’ll want a personalized POA.

Advance Directive or Living Will. This legal document helps medical professionals and your loved ones. It needs to be very clearly prepared to reflect your wishes for end-of-life care if you can’t express yourself. The document is used when an accident, illness, or other condition prevents you from responding. Do you want to be placed on a ventilator, be attached to an artificial heart and lung machine, or receive nasal feeding? These are not easy to contemplate. However, consider what your family will go through if they have to guess what you would have wanted. An estate planning attorney should create this document to be sure it is valid when it’s needed.

Financial Power of Attorney. The financial POA allows a person of your choosing to make financial decisions for you. No one likes to give up control of their assets. However, if you aren’t able to manage and there is no POA, the family will need to go to court and petition the court to have a guardian appointed. This takes time and can be costly. Having your estate planning attorney create a financial POA while preparing the rest of your estate plan is better than going to court.

The POA documents can be as specific or as general as you wish. Your estate planning attorney will have recommendations to best suit your situation.

HIPAA Waiver. Rules on sharing medical information are strict, and healthcare providers are trained to follow the rules, or their employer may face fines or lawsuits. A HIPAA Waiver or Release allows doctors and insurance companies to share information with the person you designate.

Funeral and burial arrangements. If you don’t outline your wishes, your family will do what they think is best, which may not be what you want. Some people don’t care. However, if you do, making these arrangements in advance will give you peace of mind and, in some cases, a sense of control over your final wishes.

Trusts. A trust is used to own assets designated for beneficiaries. It is used to move assets out of the probate estate, so they go through probate and can go directly to the named beneficiaries. Many people have trusts, so they have better control over their assets while living and after passing.

Like a last will, these documents must be reviewed and updated every three to five years. There are changes in our lives and tax laws. Make sure your wishes are reflected in your estate plan with regular reviews.

Reference: MSN (Feb. 24, 2025) “6 Legal Documents That Most Retirees Need—but Don’t Have”

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.”

What Kind of Trust Helps a Family with Young Children?

Trusts are not just for wealthy people. They are used when a family has young children and wishes to ensure that there is a plan in place to care for the children in case the parents die or become incapacitated. A recent article from Business Insider, “I asked an estate planning attorney the best way to establish a trust for my 2-year-old daughter,” explains what parents can do to protect their youngest loved ones.

There are a few different trusts to consider, depending on your situation:

Revocable Living Trust. The revocable trust is the most flexible. It is a separate legal entity with language directing how assets will be used for different scenarios. For instance, if someone dies or becomes disabled and their beneficiaries are all children, the trustee will manage and allocate necessary financial resources to support the children. Many estate planning attorneys consider a trust even more important than a will, since it doesn’t require the estate to be settled before trustees can access the assets.

An IRA Trust. You may want to consider creating an IRA trust if you own an IRA. This allows a minor child to be the beneficiary of the retirement account. On the death of the IRA owner, assets go into the trust, which has a trustee who manages the asset until the person comes of age or whenever the original owner wants them to receive the money.

When a regular IRA account is left to a minor, the family must petition the court to obtain a court-appointed guardian to manage the account until the minor is of legal age. With an IRA trust, you’ve clarified who the trustee should be and when the child will receive the money. If the money is not needed and can remain in the trust, it is a protected asset for their future.

A Trust for Minors. This allows you to leave assets to a child until they reach a certain age, which you articulate in the trust. You can leave all or a portion of the money to the beneficiary to be distributed when you feel they can manage it. You decide when to release the funds, who the trustee should be, the rules for how the money is to be spent and when the minor may receive income.

An Education Trust. In addition to creating a 529 College Account for a minor child, it’s a good idea to create an Education Trust to be sure the funds will be used for education. You can assign a certain amount for education and state the age you’d like the beneficiary to receive any leftover funds.

An estate planning attorney can help you create a plan for your children or grandchildren to ensure that they have the funds they need in case of tragedy and place guardrails on the money so it’s protected.

Reference: Business Insider (Jan. 31, 2025) “I asked an estate planning attorney the best way to establish a trust for my 2-year-old daughter”

How to Create an Estate Plan That Works

An estate plan tells your loved ones and the courts how you want to divide your property, as well as protecting heirs from the expenses and stress created when there is no estate plan. According to a recent article from AOL, “Estate planning checklist: 7 key steps to making a successful plan,” an estate plan also saves your family from months, even years, of dealing with courts and government bureaucracies in settling your estate.

How to start? Follow these steps.

Make a complete inventory of your assets, both tangible and intangible. This means real estate, cars, financial accounts, digital assets, life insurance, retirement accounts, pension accounts and personal property. Save your heirs from a scavenger hunt and protect assets from being lost.

Decide who you want to care for your family. If you have children who are underage, name a guardian in your will. The guardian often serves as the conservator, managing the children's financial assets. Check on your life insurance policies, which provide funds for your family after you’ve passed.

Ask potential executors if they are willing to do the work. The executor carries out directions in your will. It can be a big responsibility. They’ll need to gather and manage assets, notify heirs, Social Security, Medicare, pay estate taxes, secure and possibly sell your home, and more.

Have an experienced estate planning attorney set up at least three key elements: a will, power of attorney and advance healthcare directive.

The Will names a guardian and an executor and gives directions for distributing assets. The biggest estate planning mistake people make is not having a will. When this happens, the court assigns someone to manage your estate, and your family will have to live with whatever the court-appointed person decides.

A Power of Attorney allows someone to care for your business affairs if incapacitated. A Medical Power of Attorney, or Healthcare Proxy, will enable you to name someone to be involved with your healthcare, speak with your doctors and health insurance company and help make decisions for you. These documents should be customized to convey your wishes as to how much or how little you want these people to be able to do.

An advanced healthcare directive is used to state your wishes if you are incapacitated about what kind of treatment you do or don’t want to receive if you are at the end of your life. For instance, if you don’t want to be resuscitated or if you don’t want CPR to be performed, this information goes into the AHD. This document can be challenging to consider. However, it is a blessing to spare your family from having to guess your wishes during a time of crisis.

Discuss the use of a trust with an estate planning attorney. Trusts are not just for wealthy people. Some trusts take assets from your taxable estate and distribute them directly to beneficiaries outside of probate. Many kinds of trusts serve different purposes, so your estate planning attorney will help you understand which is best for your purposes.

Determine who to leave your assets to and how to structure your estate. If you have young children and you don’t establish the correct trusts, they may inherit everything when they turn 18 or 21. This is rarely a good idea.

Tax planning is a part of estate planning. While you may not face federal taxes, your state may have its estate tax, and some states still have inheritance taxes. Rates and exemptions are different in every state.

The incapacity planning part of an estate plan is for you. However, the rest is for your family, to take care of them and show them how much you care about them and their futures.

Reference: AOL (Feb. 4, 2025) “Estate planning checklist: 7 key steps to making a successful plan”

Why Is Estate Planning Important?

Estate planning is part of long-term planning, no matter what the size of a person’s investment portfolio or their total net worth. It protects the individual and their property, which is why everyone needs an estate plan. Estate planning is an umbrella term used to refer to everything from asset allocation after death to planning for incapacity and end-of-life healthcare decisions, according to a recent article in The Daily News, “What to know about estate planning.”

Typical components of an estate plan include a last will and testament, power of attorney, healthcare directives and trusts. Most surveys conducted in the last few years show only a third of all American adults have a will, and more than half think they don’t need an estate plan because they don’t own enough assets.

Here’s all you need for an estate plan to protect yourself and your loved ones:

A will is the document used to distribute assets after your death. Working with an estate planning attorney who knows the laws of your state is the best way to ensure that your wishes are followed. Trying to do this on your own or with an online platform puts your will at risk of being deemed invalid by the court, which would put your entire estate into the hands of your local probate court.

The will is used to name an executor to carry out the directions you’ve expressed in the will. It is also used to name a guardian if you have minor children. Without a will, or if a will is found to be invalid, the court will name someone to take over distributing your assets. If you have young children and both parents are deceased, the court will decide who should raise your children.

Trusts are used to protect assets, minimize taxes and safeguard assets for beneficiaries. There are many different types of trusts, and an experienced estate planning attorney will know which type is best for your family. For instance, if a family member is disabled, you may need a Special Needs Trust. Your estate planning attorney will also discuss whether you need a Revocable or Irrevocable Trust.

Trusts are used to shield assets from creditors and may be part of Medicaid planning. Another benefit is that assets in a trust don’t go through the probate process. If you are concerned about disgruntled family members poring over your will—which becomes a public document after it is entered into probate—you may wish to use a trust to keep your estate and your assets private.

Planning for incapacity is an integral part of an estate plan. Suppose you become incapacitated without any estate planning. In that case, your family will need to go to court to be able to speak with your doctors, talk with the health insurance company and take part in your healthcare decision-making. Court proceedings are costly and take time; they are not something you want to be embroiled in during a health emergency.

Your estate plan should include a Power of Attorney, which names another person to act on your behalf if you are incapacitated. You’ll also want a Healthcare Proxy to permit another person to make medical decisions on your behalf. An Advanced Directive will express your wishes for what kind of care you want if you can’t communicate your wishes.

Having an estate plan expresses your wishes for more than your property distribution. If you don’t have an estate plan, contact an estate planning attorney to discuss your intentions for assets, beneficiaries and your future. Most people are surprised at how relieved they feel once this task is taken care of. The peace of mind knowing you and your family are protected is well worth the effort.

Reference: The Daily News (Jan. 30, 2025) “What to know about estate planning”

Think of Estate Planning as a Gift to Loved Ones

When you think of a gift for your family, you might think about matching sweaters or a family vacation. However, the gift of an estate plan will be remembered because it demonstrates your ability to take care of your family and could help build wealth across generations. A recent article from CNBC Money Report, “Here’s why estate planning is a gift to your family,” explains how this works.

Remember, there’s no relationship between creating a will and signing documents and something happening to you immediately afterward. This notion keeps many otherwise responsible adults from taking care of their estate plans. Don’t fall prey to it.

Another point is that families fight over money and possessions, even when relationships are good. Without clear instructions provided in an estate plan, a family undergoing the loss of a parent is vulnerable to fighting and litigation.

You’ll want to have a Last Will and Testament and, depending on your situation, possibly trusts, a Power of Attorney for financial and legal matters if you are incapacitated and a Healthcare Proxy (sometimes called a Healthcare Power of Attorney), so someone can make medical decisions and talk with treating doctors in case you can’t communicate.

What happens when there is no estate plan? The courts will make all of your decisions, regardless of the wishes of your loved ones. Your entire estate will go through probate, and a stranger could be named to take charge of it, with a hefty fee to compensate them for their services.

If you have minor children and no will, the court will name a guardian to raise your children. Will it be someone you would have picked or your distant cousin who lives hundreds of miles away? There’s no way to know.

Assets titled properly or those with a named beneficiary will go directly to those named on the accounts without going through probate. This is one of the attractions of trusts, which never become public.

Part of creating an estate plan includes reviewing your accounts and beneficiary designations to ensure that the people named as your beneficiaries are still correct. If you have any old accounts you haven’t looked at in decades, now is the time to ensure that you’re not leaving your pension to an old college pal—unless that’s your intention.

Estate planning is about empowering the present and planning for the future. Chances are you’ve read many news articles about celebrities with massive estate problems because they failed to plan. Leaving a mess for your family to deal with is probably not the legacy you had in mind.

Give yourself and your loved ones the peace of mind knowing you’ve taken care of your estate plan. Be remembered as someone who cared enough to do the right thing. Consult with an experienced estate planning attorney today.

Reference: CNBC Money Report (Jan. 7, 2025) “Here’s why estate planning is a gift for your family”

Keep Your Life Private with a Trust

Jacqueline Kennedy Onassis signed a will in March 1994 after receiving a cancer diagnosis and died two months later. Her will is readily available on the internet since it becomes a public document when submitted for probate, according to an article from the American Legion, “Living Trusts vs. Wills.”

She remembered family members and friends in the will and also planned to make a large transfer to a Charitable Lead Trust. However, things didn’t work out the way she wanted. Her two children received her personal property and quickly put the items up for sale, netting $35 million. The rest of the estate was needed to pay taxes, and the CLT was never funded.

Bing Crosby, an American singer and celebrity, had a trust created for his estate plan. When his first wife died in 1952, she had a will transferring her separate and community property, which became public because of the probate process. After marrying again, Crosby created several trusts for his children from his first marriage, his new wife and the children from his second marriage. He wanted his privacy back.

There are many reasons to have a will. The will is used to name an executor for your estate, a guardian for minor children and express wishes for asset distribution. A last will and testament is a good starting point for an estate plan. If you are young and don’t have a lot of assets, a will may be all you need to distribute assets and plan for your children’s future.

As one moves through life and acquires property and perhaps wealth, it may be time to consider the use of trusts. Some people find a living or revocable trust to be the right solution. It allows the person creating the trust, the grantor, to retain complete control over the trust. You can change the terms, add and subtract beneficiaries and make changes whenever you want.

A living trust names a successor trustee. If you become incapacitated, the successor trustee can step in and manage the property owned by the trust. They can use the funds in the trust to pay for Long-Term Care or medical expenses.

If you own property in more than one state, a trust is an excellent means of avoiding having to go through probate in each state. With a living trust, your estate won’t have to go through multiple probate processes.

The privacy a trust offers can reduce the risk of someone contesting the estate. When a document about your property becomes public, distant relatives, creditors and thieves can connect the dots of your wealth and target your estate via litigation or scams.

Talk to your estate planning attorney about whether a trust is right for you and your family. If you do go forward with a trust, remember that the final step is to fund the trust. Don’t leave this out, or your trust won’t perform as planned.

Reference: American Legion (Jan. 15, 2025) “Living Trusts vs. Wills”