It's National Estate Planning Awareness Week

In September of 2008, HR1499 was adopted, setting aside the third week in October of each year as National Estate Planning Awareness Week.

While it seems logical that we should want to get our ducks in order to protect our family and loved ones, all of us have a different reaction when it comes to talking about “The Big Inevitable”. Here are 8 reasons why people put off the conversation:

#1. Talking about death is unsettling.
Of course it is, but you can actually get peace of mind today by planning ahead. We recently wrote about what separates good estate plans from those that are great.

#2. The kids just want my money!
Maybe, or maybe not. Did you know that who you are beyond your finances -- your legacy -- the ethics, personal history, life advice and important stories -- is also an important component of your estate? Try approaching the conversation with your adult children from the non-financial or administrative side. Our quiz for future executors can help.

#3. Shh! Money talk is supposed to be secret
Your information is power. Without access to it, your executor -- typically the family member who'll have to settle your estate -- will have to reconstruct all of the details of your life. Why not make it easier for them? Knowing what you have, where associated paperwork is located and who to contact is essential. While you're at it, why not provide this person an overview of the responsibilities they'll have when the time comes? Our posting on an executor's responsibilities can help.

#4.  Estate planning is for “rich” people
Do you own a vehicle? How about life insurance? Do you have a bank account? Congratulations -- you've got an estate!

#5. It's too hard because my family isn't "normal"
Dysfunctional may very well be the new normal. Don't let complex family situations intimidate you. In fact, planning done right today can help your family steer clear of troubled waters in the future. If you work with a financial advisor, ask him or her for help. Here are 10 questions to get you started.

#6 It’s 9 p.m. – do you know where your assets are?
Do you remember the old phrase “It’s 9 p.m. – do you know where your kids are?” This is a twist on that – only to say that some feel overwhelmed by trying to identify all of their assets, liabilities, personal items of importance and even digital assets (e.g., email accounts, social media accounts, personal photo websites). Try our easy-to-use checklist and set your own pace.

#7 I don’t know what I’m doing – I’m afraid I’ll make a mistake

This reason tends to be the common source of paralysis in moving forward. Fortunately, there is a wide variety of resources and experts available to provide the help you need. You can start by reviewing our tips on how to find an estate attorney.
 
#8 Queen of “denial”
There of those of us who just can’t believe that one day, our time will be up. If this is you, may we recommend that you make some incremental progress by starting with the legacy aspects of your estate? Collect your favorite personal stories, assemble old photos or family videos, inventory the personal items that are important to you today. We're betting you'll warm up to wanting to protect these mementos by ensuring they stay within your family.


So come on, join the conversation. Do you feel confident that you have things squared away? If not, why not? Tell us your reasons for putting off your planning for The Big Inevitable.

5 Great Estate Planning Tweets

Do you follow @EstateLogic on Twitter? If you don't, you may be missing out.  Twitter is a great way to be in the know on current information when it comes to estate and legacy related topics. Here are 5 estate planning Tweets we think are worthy of further mention.

1. @RitaAtNCLife -- 6 Common needs for Life Insurance  -- Do you have people who depend on you? – http://ow.ly/2wXWX

2. @EstateLogic -- 70% of widows leave their financial advisors after their husbands' death. Advisors, gr8 article: http://bit.ly/dtKf2b

3. @EstateLogic -- Know what your worth and who owns what: http://bit.ly/c2vqOO
4. @BlackLewisLaw -- Why #Estate #Planning Is Important For Women http://ht.ly/2IkHH

5. @feeonlyindy -- Testing Software to Write Wills on the Home Computer - http://nyti.ms/95yAen

Are You Prepared? A Quiz for Future Executors

By Executor's Resource, Inc.

Have you been an executor?  If you haven't, chances are you will be.

The majority of Americans typically choose a close family member or friend for the role.  Most of us accept without thinking about what it really means. Will you be up for the job when the time comes? Take this quick quiz to find out:

1. As the future executor for your loved one, do you know where to find the following:

      a. Final instructions (i.e., funeral arrangements and preferences)
      b. Will or trust agreement, and other legal documents (e.g., powers of attorney)
      c. A key to residence(s) and the passcode to the home alarm system
      d. Insurance policies, banking accounts and other assets and liabilities
      e. A listing of digital assets - passwords for computers and online accounts
      f. Valuables and collectibles
      g. Family photo albums and other important personal and heritage information
      h. Safe deposit box key(s)
      i. Contact information for the estate attorney who drafted the will
      j. Contact information for other professionals (e.g., financial advisor, insurance agents)

2. Are you aware of any hidden items of importance in the home or elsewhere?

3. Do you talk with your loved one about this information at least once a year or when there are updates?

If you answered yes to many of the questions, serving as executor, personal representative or trustee should be easier for you. If you marked "no" more times than "yes", it's time for you to have the talk with your loved one. We'll address how you go about doing that in our next posting.

In the interim, tells us how you fared on this quiz by submitting a comment.

Top 5 Estate Planning Tweets for June 2010

By Executor's Resource, Inc.

In case you missed the action in June, here’s a listing of the Top 5 Estate Planning tweets (from our perspective) for June 2010:

1. @Jack65203 Banks are offering comprehensive care to their clients as a way to deepen ties with their clients. Via @wsj http://ht.ly/2452s #estate planning

2. @EstateLogic From good to great: your #estate #plan. http://bit.ly/azpqpO

3. @BlackLewisLaw 5 #Property Types that Cannot Be Left in a #Will http://ht.ly/22LPo #estateplanning #estate #planning

4. @trustlawgroup RT @lichtermanlaw Cost of raising a child: $475,680 - this is why life insurance and proper estate planning is critical http://ow.ly/1WqGg

5. @FAmagazine Financial Advisors Spending More Time On Clients' Kids: Advisors are dedicating more time to the spending and savi... http://bit.ly/cszh5N

Take your estate plan from good to great

By Executor's Resource, Inc.

Many people seem to think that having an estate plan simply refers to having legal documents. While it’s absolutely true that the right legal documents are critically important, we believe that there are four components overall that when addressed, can take an estate plan from good to great and make it a true gift to your loved ones:

1) The power to carry out your wishes. Appropriate, up-to-date (e.g., reviewed every two years and modified as needed) legal documents for your situation including:

• Last Will and Testament
• Living Will
• Healthcare Power of Attorney
• Financial Power of Attorney
• Trusts, for some individuals (If you are interested in determining whether a trust is right for you, contact your estate attorney to discuss your goals and options.)

2) The legend to your life's details. A well-organized catalogue of all of your important personal information (e.g., documents, financial assets, online accounts, personal items of importance) and instructions for your executor, personal representative or trustee to access upon your incapacity or after your death.

3) You’re more than your money. Documenting your legacy – all the important personal stories, accomplishments, and heritage information that you want passed to the next generation. Some studies show that this component is often more important to many people than financial assets.

4) Talk. Listen. Repeat. Some people may find this step to be the most difficult of all. However, the true measure of a plan is in how well it can be implemented. Periodic and ongoing communication to tell your executor, personal representative or trustee about your preferences, viewpoints and wishes is critical in smoothing the often troubled waters of settlement.

We want to hear from you.

How does your estate plan stack up in light of these four components?

Leave a comment and let's get the dialogue started.

Why have an estate plan?

By Executor's Resource, Inc.

A recent study showed that in today's economy, more and more people see estate planning as "discretionary" - something that can be put off until times are better. Unfortunately, disaster doesn't know the difference between a bullish or bearish stock market, or an employed versus unemployed person. Simply put, the benefits of having a current, up-to-date estate plan far outweigh what happens if you don’t.

Let's start with addressing what an estate plan does. An estate plan helps to see that your loved ones are provided for after your death in accordance with your preferences and instructions. People create estate plans for a variety of reasons.

Some people have a strong desire to avoid probate. Remember, probate is simply the legal process whereby a court appointed person – typically a close family member or friend, but sometimes an attorney or other professional – identifies all of your assets and liabilities and their value, pays your final bills, and distributes what’s left your assets to your heirs according to law.

In Colorado where Executor's Resource is headquartered, it’s actually quite a simple process. In some other states it can be a little more complex.

If you want to know what strategies will help you better manage probate, a qualified estate planning attorney can assist you. This could include making sure your beneficiary designations on your financial accounts and insurance policies are completed properly to even considering various types of trusts. For more information, read our prior posting called Probate 411.

Some people create an estate plan to make sure that their assets will be transferred in a tax efficient manner. This year, there is no federal estate tax; however, unless Congress acts, next year the federal estate tax will apply for estates with over $1 million in assets. 

Historically, only a small percentage of the population has paid federal estate tax, but this will be something for us all to keep our eye on. For those of you who own a house, have a 401(k) plan, modest insurance coverage and personal property, it may not be hard to surpass $1 million. As an important note, the residents of 15 or so states also may owe a state estate tax.

Others who may be worried about creditors or the privacy of their estate settlement might find value in having a trust. Again, you'll want to seek qualified legal assistance in creating an advanced technique like a trust.

Most importantly, an estate plan helps to ensure that your wishes and instructions are carried out in the manner you specify, that family harmony is maintained, and that your loved one's burden in settling your affairs is minimized in their time of grief.

Simply put, your death will be much easier on your family if you have a plan. In our next posting, we'll discuss the four components of a good estate plan.

Without a will, there’s no way

By Executor's Resource, Inc.

Millions of Americans don’t have basic estate planning documents. A recent study showed that only 35% have a Last Will and Testament, and only 29% of us have financial or healthcare power of attorney documents. Some reasons offered by the study for not having these documents:

• 1 in 5 people (20%) thought that their assets would automatically transfer to their spouse or family

• Another almost 20% thought it was too expensive

• 11% didn’t believe it was necessary

• 9% thought it just took too much time.

If you die without a will

Each state has its own laws that govern what happens to your property and your dependents. If you own property in multiple states, both sets of laws will need to be followed, and they could be different. The legal term for this type of law is “intestacy laws”.

Generally, intestacy laws specify a ranking or order for which your assets will be distributed after you pass. A general rule of thumb in thinking about these laws and the ranking or order that typically exists is:

 Assets will transfer to your spouse first.

 If you don’t have a spouse, then your children are next in line.

 If you have no children, then your parents – if they are still alive -- receive your assets.

 If you have no living parents, then your brothers and/or sisters.

 If you were an only child or your siblings aren’t alive, then your nieces and nephews stand next in the order to receive assets.

How does this sound to you? Many people would probably agree that this order isn’t well-aligned with their actual intent. This not only applies to your financial assets but also to your precious items of personal importance.

Another major issue is applicable for those with minor children. If you and your spouse/partner pass at the same time and there is no will, the court will appoint a guardian. Most, if not all loving parents would agree that this would be a highly undesirable situation. This has an even greater impact for unmarried couples with minor children.

Bottom line
Bottom line? Without a will or appropriate legal documents, there’ll be no way to identify or honor your intentions.

For those of you out there who lack these basic documents, check out our posting on 7 ways to find an estate planning attorney, and what questions to ask to identify the right professional for you.

Get it together!
Starting to gather and organize all of your important documents and thinking through your preferences now can save you time and money in the estate planning process. Our EstateLogic® program helps you do just that. Watch our 2-minute video tour to see how we can help.