Estate Planning Myths

There are many misconceptions about estate planning, and any one of them can result in costly mistakes. Understanding who needs an estate plan and what it should cover is key to creating a plan that is right for you.

A properly crafted estate plan allows you, while you are still living, to ensure that your property will go to the people you want, in the way you want, and when you want. It permits you to save as much as possible on taxes, court costs, and attorneys’ fees; and it affords the comfort that your loved ones can mourn your loss without being simultaneously burdened with unnecessary red tape and financial confusion.

The following are some common myths that people have about estate planning:

My estate isn’t big enough to need planning . It is true that if you have a small estate, you may not need a complicated will or trust, but even if you have only a few assets, your estate plan can direct where you want those assets to go. In addition, a will allows you to name a guardian for your young children. Estate planning is not just about the will, however. A thorough estate plan also includes a power of attorney and a medical directives, both of which protect you while you’re still alive. A power of attorney allows you to appoint someone to handle your finances in the event that you are ever unable to do so yourself. A medical directive allows for the appointment of someone you trust to make medical decisions for you in the event of your incapacity.
I’m too young for an estate plan . No one likes to think about death, but it is important to be prepared at any age. Unfortunately, accidents can happen to anyone. As described above, an estate plan not only allows you to dictate where your assets should go, it also allows you to name a guardian for young children and plan for incapacity.
My will takes care of everything . A will is a legally-binding statement directing who will receive your property at your death. It also appoints a legal representative to carry out your wishes. However, the will covers only probate property. (Probate is the court process by which a deceased person’s property is passed to his or her heirs and people named in the will.) Many types of property or forms of ownership pass outside of probate. Jointly-owned property, property in trust, life insurance proceeds, and property with a named beneficiary, such as IRAs or 401(k) plans, all pass outside of probate.
It is cheaper to create a will on my own . It is tempting to try to save money by using a do-it-yourself online will service or just writing something up yourself, but these poorly drafted documents may only cost additional money in the end. It is impossible to know, without a legal education and years of experience, what the right legal solution is to any particular situation and what planning opportunities are available. If there is anything about a family situation that’s not commonplace, using a DIY estate planning program means taking a large risk that can affect one’s family for generations to come. Without clear instructions, your assets may not go where you want and can lead to problems that drag out your estate administration, cost money, and create headaches for your heirs.
Once a plan is in place, I’m done . Once you have a plan in place, you need to review it every few years or whenever you have major life changes. Circumstances change over time and your estate plan needs to keep up with these changes. Major changes that may affect your plan include getting married or divorced, having children, or experiencing an increase or decrease in assets. Even if you don’t have any major changes, you should review your plan periodically to make sure it still expresses your wishes.

If you need help getting started on an estate plan. contact Jayde Law PLLC.

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Estate Planning: An Overview

by James Saintvil • 15 February 2023

Estate planning entails preparing your affairs for the future, including death and other life events. While older adults might give more thought to estate planning, it is an essential tool at any age.

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Three Things to Know About Being an Executor

by James Saintvil • 1 February 2023

An executor (or personal representative) is a person or entity you choose to carry out your last wishes outlined in your will. Your executor should be someone you trust is responsible enough to manage your estate after you pass away. Choosing an executor is a big decision when it comes to estate planning. So, what should you know about an executor? What should you consider before naming an executor? Here are answers to three common questions about executors.

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Overriding a Power of Attorney

by James Saintvil • 18 January 2023

A power of attorney is a legal agreement that gives a person (“attorney-in-fact” or “agent”) the ability to act on behalf of another person (“principal”). A common question asked about a power of attorney is under what circumstances one be overridden. A power of attorney can be overridden. However, the “who” and “how” depends on whether the principal is of sound mind. First and foremost, the principal can override a power of attorney at any time as long as they are of sound mind. The term “sound mind” refers to the state of mind and memory a person has at the time in question. So, as principal, you could override your power of attorney if you have sufficient mental capacity to understand what you are doing.

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Does Power of Attorney End at Death?

by James Saintvil • 4 January 2023

A power of attorney is a powerful planning document that enables you (the principal) to give another person (the agent or attorney-in-fact) the power to act for you while you are alive. Because powers of attorney are often prepared in the context of estate planning, many believe they give their agents the power to continue acting after their death. Although every state’s laws and forms vary, most power of attorney forms specify that the agency relationship created by a power of attorney ends upon a person’s death.

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ESTATE SALES

by James Saintvil • 21 December 2022

Following the death of a family member, you may find yourself needing to sort through many possessions accumulated over the deceased’s lifetime. An estate sale is one way to distribute those items that you do not want or need quickly and efficiently. While selling someone’s furniture, jewelry, artwork, antiques, and other belongings yourself can mean a great deal of time and effort on your part, there are companies that help families sell items. An estate sale company will do all the work in exchange for a percentage of the proceeds—typically anywhere between 25% and 50%. The company usually handles organizing the inventory, staging the house, appraising the value of items and setting prices, promoting the sale to the public, and hiring workers to run the sale. You may need to pay a separate fee to the liquidator for cleaning up following the sale, including donating or disposing of any goods that do not sell. Keep the following in mind when getting ready for an estate sale: