Paul O. Dillon, Attorney at Law

What Should Be Included in Your Estate Plan?

Estate planning attorneys often have clients who are more than 100 years old. However, those clients have usually made all their estate planning decisions while they were far younger, like in their 70s or 80s! A recent article, “Guidelines for estate planning, from a Golden Valley attorney,” from Sun Post, explains what your estate plan should include and why.

People should have their estate plans in place long before they turn 100, to provide peace of mind for themselves and for their heirs and executors, who will need to take over their affairs in case of incapacity or when they ultimately die.

Everyone should have a healthcare directive, sometimes called a Power of Attorney for Healthcare or Healthcare Proxy. This allows another person to have access to medical information and acts to express your wishes if you can’t communicate your wishes because of illness or an injury.

One person should be appointed to follow your healthcare and end-of-life instructions. Making your wishes clear in a legally binding document ensures that your loved ones know what you want and will help them make decisions for your care during a healthcare crisis.

You’ll also want a financial power of attorney in place so someone else can manage your financial life. Some people opt to make their bank accounts payable to a trust or retitle the bank as a “Transfer on Death” (TOD) account. This lets someone gain access to your finances. Let’s say you needed to be hospitalized for an extended period—having these documents in place will allow bills to be paid, your home maintained and avoid penalties for late or non-payment.

Many people today have trusts to prevent the estate from going through probate. When a will goes through probate, it becomes part of the public record. Probate takes time and can be costly. While probate in some jurisdictions isn’t as bad as in others, it can delay settling your estate by months or years.

Everyone who is over 18 needs to have a will. A will describes how your assets are to be distributed. If you have family heirlooms, for instance, your will can clarify who you want to receive a necklace or piece of art. The will instructs your executor, so they know exactly what you want to happen.

Your will is also used to nominate a guardian for minor children. Parents should always have a will, so they can name the person they want to raise their children in case both parents die.

Not having an estate plan leads to all kinds of problems for families. For one thing, the distribution of assets, and who should be the guardian for children and executor of your estate, are all decided according to the state’s laws. You may not have wanted your first cousin to raise your children. However, the court will make the decision for you. It’s better to have a will.

If you already have a will but haven’t updated it in more than three years, it’s time to dust it off and have it reviewed by an experienced estate planning attorney. Changes in your life and tax laws could mean that your will isn’t going to work the way it once did.

A final note: ask your estate planning attorney about how to store your estate planning documents. If your documents are stored at a safe deposit box, they will be sealed upon death and won’t be accessed until a court order has been obtained. This can delay settling the estate and create complications for loved ones.

Reference: Sun Post (March 20, 2025) “Guidelines for estate planning, from a Golden Valley attorney”

How Estate Planning Can Transfer Ownership of the Family Home

Starting and finishing an estate plan will not only provide peace of mind but also save your heirs from the stress and expense of going through the probate process. This is especially true if your plan is to bequeath the family home to loved ones, says a recent article from Cleveland Jewish News, “Estate planning simplifies inheriting a home.”

If no estate planning is done, the amount of time and paperwork to pass the home to a family member can become overwhelming. Planned correctly, the transition is far more efficient and less costly.

There are a few different ways that this can be accomplished. An estate planning attorney will know the best way for your unique situation. For instance, if you own the home with a spouse, typically Jointly With Rights of Survivorship (JWROS), each owner has an undivided interest in the house. The surviving spouse will follow the rules in their jurisdiction. This usually requires filing a document with the county recorder’s office with an affidavit of survivor and death certificate, and the interest of the decedent will pass to the surviving tenant.

If two or more people own the home together but not JWROS, when one of the owners dies, their interest in the house will need to go through probate. This can get sticky, especially if their heirs have a different plan for their share of the house than the other person or persons who own the home. This is a common estate planning disaster, often leading to litigation.

Another way to protect the inheritance of a home is to have a Transfer-on-Death (TOD) designation affidavit. The owner can sign the document, and the house ownership will be transferred upon their death without going through probate. If you have a straightforward estate plan, ask your estate planning attorney if this option is permitted in your jurisdiction.

If you have a more complicated estate, significant wealth, minor children, or adult children with disabilities, it’s time to discuss trusts with your estate planning attorney.

If a trust is used, the deed for the home must be retitled so the trust owns the home. Upon the death of the original owner, the home is dealt with in accordance with the provisions of the trust.

These are just a few ways home ownership can be transferred to another person and remain outside of probate. Estate planning is a highly personal process, where many factors need to be taken into consideration before the best solution can be determined.

To find the best solution for your own situation, meet with an experienced estate planning attorney in your community. They’ll be able to prepare an estate plan to achieve your wishes for the future, protect your family and give you the peace of mind of knowing you’ve taken care of those you love.

Reference: Cleveland Jewish News (March 25, 2025) “Estate planning simplifies inheriting a home”

Gene Hackman and Betsy Arakawa Relied on Trusts in Estate Plans

The wills of actor Gene Hackman and his wife, Betsy Arakawa, were obtained by USA Today from their probate estate in Santa Fe shortly after their deaths. However, because the couple had engaged in estate planning and used trusts, how the trust’s assets will be distributed remains private—one of the primary reasons for establishing a trust.

An article from USA Today, “Gene Hackman and wife Betsy Arakawa named each other in their wills,” states that both estates will be placed into a trust. The terms of the trust will bind the trustee and require them to carry out the directions in the trust, which will occur privately and without court involvement.

In his will, executed in June 2005, Hackman appointed the remainder of the trust estate of a separate trust, dating back to September 1994, to the GeBe Revocable Trust. He also acknowledges three children from his prior marriage, Christopher Hackman, Elizabeth Hackman and Leslie Allen.

Julia Peters was named as the second successor of Hackman’s estate and has been appointed the personal representative of both Hackman’s and Arakawa’s estates. She took over the duties because the first successor, Michael Sutin, predeceased both Hackman and Arakawa. The day after the court agreed to her appointment and admitted Hackman’s will to probate, notices of her appointment were mailed to Hackman’s three children.

A successor trustee is the person who assumes the responsibility of managing a living trust in the event the original trustee dies or becomes incapacitated. A personal representative is responsible for managing the decedent’s estate. They are responsible for paying debts and taxes, collecting assets and distributing the remaining property to heirs or beneficiaries. This is an unfortunate but accurate illustration of why it is crucial to appoint more than one trustee.

The court documents state the trust assets in the GeBe Revocable Trust and the Gene Hackman Living Trust are to be administered, and the GeBe trust passes through the will to the Gene Hackman Living Trust.

Arakawa’s will details her wishes for her own estate. She wanted all tangible personal property to be distributed to the designated individuals listed in a separate document from her will. The remainder of her estate was then to be transferred to the trustee for Hackman’s trust, if she outlived him.

While the couple certainly expected Hackman, 30 years older than his wife, to die first, their estate plan served them well. So far, this is an excellent example of an estate plan that maintains privacy and honors wishes after death.

Reference: USA Today (March 15, 2025) "Gene Hackman and wife Betsy Arakawa named each other in their wills"

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”

Should You Have a Revocable Trust?

There are many good reasons to include a revocable trust as part of your estate plan, according to a recent article from Columbus Monthly, “Planning Ahead: When to Consider a Revocable Trust.” You might think trusts are only for the wealthy. However, that’s not true. An experienced estate planning attorney can easily establish a trust to protect assets and direct their distribution. Distribution can occur while you’re living or after you’ve passed away.

Trusts also distribute assets to beneficiaries outside of probate, which avoids the delays and costs associated with probate and, even better, keeps your private business confidential between you and your beneficiaries. When a will is probated, many courts require an inventory of assets. The will becomes part of the public record, and anyone—including ex-spouses, local realtors, thieves and angry relatives—can read your will and learn about your bequests.

A tip from the professionals: ensure an estate planning professional establishes your trust. Every state’s laws are different and what your brother-in-law in Idaho did might not work in Virginia.  You should also ensure that the trust is properly funded. If you don’t fund the trust, it won’t work as you intended.

Revocable trusts are used to pass assets after you’ve died. The language of the trust is tailored to your specific wishes. For instance, you may want your children to inherit a certain amount of money every year or only when they have reached goals, such as completing college.

Trusts can be created to fund education, serve as a deposit for a home, or initiate distributions upon reaching a specific age. This is especially beneficial for parents of young adults, who understand that giving a twenty-five-year-old their entire inheritance all at once may not be as beneficial as making partial distributions over a twenty-year period.

One example of a well-structured trust is a woman who owns land that has been in her family since 1947. There are two houses on the property. The land has been placed in a trust to manage the property, and the trust language stipulates that multiple generations can continue to reside there until there are no family members who wish to live on the property. At that point, the trust allows the trustee to sell the property and distribute the proceeds to the living beneficiaries.

Trusts are also useful when a person becomes incapacitated and needs someone else to access the assets owned by the trust to manage the person’s financial affairs. A home, bank account, or all a person’s assets can be placed in a trust, and then the trustee can manage the person's affairs without needing to go to court and file for guardianship.

Whether or not you need a trust should be discussed with an experienced estate planning attorney. It has applications for protecting heirs in the event of a second marriage, incapacity and controlling assets. Your attorney will determine the type of trust that best suits your unique situation.

Reference: Columbus Monthly (March 10, 2025) “Planning Ahead: When to Consider a Revocable Trust”

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”

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.”

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”

Should Your Estate Plan Include a Trust?

Estate planning is like getting an oil change for your car or going to the dentist. There are other things you’d rather be doing. However, you know these are things you must do to avoid far more expensive problems later on. Estate plans are personalized, based on your needs and situation. One strategy you may want to consider is a living trust, as explained in a recent article from MSN, “3 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family.”

One of the reasons for having a living trust is to avoid the probate process. This is a legal process where a court decides if the will is valid, approves the executor and oversees the distribution of assets left through the last will and testament. If a person owns property in multiple states, probate must take place in each state. Probate can take months or, in the case of complicated estates, years. A living trust distributes assets to beneficiaries without the court's involvement.

Passing assets through trusts provides more privacy than going through a will and, hence, through probate. When a will goes through the probate process, it becomes a public document, and anyone can read it. This means your will could be read by disgruntled family members, creditors, an ex-spouse, or thieves looking for victims.

Details about a living trust, including assets, beneficiaries and terms of the trust, aren’t part of the public record. This is useful for two reasons—avoiding potential conflicts with those who did and those who did not receive inheritances and shielding recipients from potential scammers. Sadly, there are numerous cases of families who fought bitterly over inheritances after they obtained the will from the local courthouse.

Living trusts offer a great deal of flexibility. They can be modified in any way desired by the grantor (the person creating the trust) if they are living. The trust can be modified to reflect life events like marriage, divorce, death, or financial changes. Having the ability to make these changes works well for those concerned with aligning their wishes with their estate plan.

One final note: when you create a trust, you must place assets in the trust to fund it. This usually occurs by retitling the asset to be owned by the trust and not by the grantor. Your estate planning attorney can help make sure you do this last step. Failing to fund the trust is critical for it to perform as you want.

Discuss your overall estate plan with your estate planning attorney. There are many different types of trusts. The attorney will be able to help you decide which one is best suited for you. You’ll also want to be sure any trusts created align with your estate plan.

Reference: MSN (Feb. 3, 2025) “3 Reasons to Seriously Consider Using a Living Trust to Pass an Inheritance to Your Family”