King & Wood, P.A.

How Dying Without a Will Leaves Heirs an Extra Dose of Grief

“People can avoid messy family fights by preparing a will. It needn’t be a complicated document.”

Don’t delay having a will prepared by an experienced estate planning attorney, warns a frank article from Barron’s, “What Happens if You Die Without a Will? You Could Leave Heirs—and Pets—With Even More Grief.”

If you die without a will, a probate court will name heirs to receive assets and guardians to raise children. However, no one will be required to protect your pets. In worst-case scenarios, assets with no designated beneficiaries, including bank accounts, real estate property and retirement accounts, can end up in the state’s unclaimed property department.

If you’d rather choose who will be your heir, assign a person you know and trust to raise your children and want to ensure that your beloved animal companions live comfortably after you’ve passed, then you need a will.

A family member embarking on a search to identify property might be able to glean some information from the prior year’s tax returns. They’ll still first have to find the tax returns and then go to court to be appointed administrator of your estate. If you have digital assets, including cryptocurrency, and haven’t made a plan for someone to take control and manage those assets, your family may never see those assets.

Having assets titled with preferred beneficiaries is as important as having a will. Retirement accounts with named beneficiaries, including 401(k)s, supersede directions in a will. If most of your wealth is in a 401(k) or other accounts with the ability to name a beneficiary, make sure that those names are correct.

In community property states like California, spouses are entitled to community property, and asset distribution follows state law.

If you have children, and especially if they are still minors, you want to have a will to explicitly state who you want to raise your children if both parents die. While other family members can petition the court for guardianship, your children could become the center of a family blowup if more than one person wants to take custody.

If you care about what will happen to your pet, you must also plan for them. Even the most well-intentioned family member isn’t required to take your pet into their home. Shelters have many senior dogs and cats left behind when their owners die and are less likely to be adopted than kittens or puppies. Most states allow you to create a pet trust, where you set aside funds for the care of your pet and name a person to be the pet’s guardian and another person to be in charge of the trust. You can name the guardian to be the same person as the trustee, or you can keep the roles separate.

Unless you want to create a maelstrom for your family and let other people make important, life-altering decisions for those you love, schedule a meeting with an estate planning attorney to review your estate and create a will, along with other necessary estate planning documents.

Reference: Barron’s (Dec. 6, 2024) “What Happens if You Die Without a Will? You Could Leave Heirs—and Pets—With Even More Grief”

What Is a Living Trust?

“A popular option is a living trust, which many people consider one of the better routes to take.”

Estate planning isn’t a one-size-fits-all process. Every family situation is different. What works great for your brother-in-law, may not work for you and your spouse. Living trusts pass wealth on to the next generation. However, they are one of many ways to accomplish estate planning goals. A recent article from msn, “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?” takes a closer look.

A living trust is created to be a legal entity separate from the person who creates it, known as the “grantor.” Sometimes referred to as a “revocable trust,” it can be changed or dissolved at any time as long as the grantor is alive. Trusts are created by estate planning attorneys and tailored to the specific needs of the individual.

There are many benefits to using a trust. Assets placed in a trust pass directly to beneficiaries without going through probate. When someone dies, their will is submitted to the local court and reviewed by a judge who determines whether or not the will is valid and if the executor is acceptable to the court. Until the court approves the will and the executor, the estate is in limbo, and nothing can move forward.

Depending on how complicated the estate is and how well the local courts perform, it can easily take six months to a year for the court to approve the will. If the decedent owned property or other assets in different states, these all have to go through probate in each state.

A trust has a trustee and a successor trustee. If the decedent was the trustee, the person in charge of the trust, then the successor trustee can step in and manage the trust. If assets were placed in the trust to pay bills while the estate is being settled, the successor trustee can do this without waiting for probate to be completed. Beneficiaries can be given their inheritance upon the death of the decedent without delays from the probate process.

Most people don’t know this. However, a will becomes a public document in the probate process. Estranged relatives, ex-spouses, creditors and thieves can all view the will. This is why families who have suffered a loss are targets of scammers and recipients of phone calls and direct mail from people seeking to buy the decedent’s home or serve as financial advisors, assuming an inheritance is being received.

A living trust also allows for great flexibility to respond to changes in life. If a family member gets divorced or married, welcomes a new baby, or dies, the trust can be changed easily to adapt to new circumstances. The same is true for financial changes in life. If the grantor needs access to the assets in the trust, they can be taken out, or the trust can be dissolved. You can’t do this with an irrevocable trust.

Meeting with an estate planning attorney is the best way to determine if your circumstances warrant a trust and which is best suited to your goals. There are trusts to protect blended families, structure donations to charity, pass wealth to grandchildren and trusts for disabled individuals. A conversation with an experienced estate planning attorney will answer questions about trusts and provide peace of mind, knowing that you’ve done the right thing for your family.

Reference: msn (Dec. 1, 2024) “Is a Living Trust Really the Best Way to Pass an Inheritance to Your Family?”

How to Help Heirs Prepare for an Inheritance

“Inheritances can certainly be life-altering events. However, they can cause challenge. Therefore, it is important to have your heirs prepared.”

If your family doesn’t talk about estate planning, including incapacity, death, or money, your heirs aren’t likely to know what to do if and when you become incapacitated, when you die or how to manage your assets when they become their inheritance. This is all too often the case, but it doesn’t have to be; according to a recent article from Madison Daily Leader, “Are your heirs ready to receive an inheritance?”

When an inheritance arrives, it’s accompanied by emotional, financial and legal issues. Having everyone prepared and informed can make the difference between a squandered inheritance, an inheritance consumed by taxes, or an inheritance wisely managed and benefiting one or more generations.

There are key issues to discuss, including matters to cover with an estate planning attorney.

Communicate with your family about your estate plan, which is more than a will. Incapacity planning includes a Power of Attorney and Healthcare Power of Attorney, two documents allowing you to name someone else to act on your behalf if you cannot express your wishes. A living will tells loved ones your wishes regarding end-of-life care. With it, your family will know if you want to be kept alive by artificial means. Without it, they’ll have to guess.

Sharing the contents of your will allows loved ones to know what to expect. They may not all be happy with your decisions. However, it won’t be a surprise and will be less likely to spark disputes after you have passed.

Do your heirs know how to manage money or other assets? If you’re leaving your heirs wealth in the form of stocks, real estate, IRAs, 401(k)s, cash, or cryptocurrency, they’ll need to be prepared to accept the assets. If your estate includes a vacation home, is there a plan for sharing it among heirs? These issues will be more manageable, if heirs understand what they are inheriting and what they’ll need to do.

An estate plan should address taxes for the people creating the plan and their heirs. While your family may not have to worry about federal estate taxes, some states still have inheritance and estate taxes. Withdrawals from certain types of inherited accounts may incur state and federal income taxes, which could take a bite out of their inheritance. If inherited assets are sold for more than they were worth at the time of inheritance, there may be capital gains taxes.

Every estate has some expenses to be considered, including funeral costs. If the decedent has a mortgage and the home is left to heirs, they may need to sell it quickly before expenses mount. The estate plan should include an inventory of all liabilities and assets, so the executor can address any outstanding debts.

There’s a lot to unpack when managing an estate. Start by having an estate plan created with an experienced estate planning attorney or update an existing plan to be sure that it still achieves your wishes. Talk with heirs so they understand your intentions. Leaving a legacy of caring takes many forms, and this is one of them.

Reference: Madison Daily Leader (Nov. 23, 2024) “Are your heirs ready to receive an inheritance?”

Is Your Estate Plan Ready for 2025?

“While retirement policy is always in flux, the outlook shaping up for 2025 is particularly dynamic.”

Talk about a possible third version of the SECURE Act, elimination of Social Security taxes and a host of other potential changes combined with rules and regulations already set to take effect in 2025 adds a lot of complexity to estate planning for the coming year, says a recent article from Think Advisor, “7 Big Unknowns That Could Shake Up Retirement Planning.”

Possible changes to the SECURE Act. The Setting Every Community Up for Retirement Enhancement was initially passed in 2019, followed by SECURE Act 2.0 in 2022. Both made many changes to retirement and estate plan rules. One former Labor Department official has said a third version is beginning to form.  However, details are sketchy. Republicans in Congress are expected to be eyeing tax cuts. However, reducing government revenue may be problematic.

Historically high estate tax exemptions. The high estate tax exemption created by the 2017 Tax Cuts and Jobs Act may be extended. However, the exact path forward for federal budget negotiations and tax reform is riddled with many unknowns. Can a “core TJCA extension” occur, while avoiding a filibuster in the Senate? Stay tuned.

Social Security taxes. Some states tax Social Security benefits. Campaign promises to eliminate taxes on Social Security may be a bit harder to implement than the extension of federal estate tax exemptions. It would have to be done through stand-alone legislation requiring Democratic support. It is possible, yes, but not certain.

Possible elimination of the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The House passed the Social Security Fairness Act on November 12 by a wide margin. The Senate may act in the coming lame-duck session to do away with these two policies, which reduce Social Security benefits for government workers. As of this writing, the Senate version of the bill is still in committee, so the legislation will probably need to be reintroduced in 2025.

Will the Full Retirement Age (FRA) be lifted for Social Security? Depending on who you ask, the insolvency date for Social Security is 2033 or 2034. Increasing the FRA from 67 to 68 or 69 could increase funding. According to the Congressional Budget Office, this change is expected to reduce annual yearly benefits by about 13% for people who fall into this older FRA category. Experts think this may not happen in the next Congress but expect to see a change to the FRA in 2025 or 2026.

Changes to ERISA. Two rulings from federal courts in Texas temporarily halted a new fiduciary rule under the Employee Retirement Income Security Act. The rule seeks to minimize conflicts of interest when financial advisors work with clients on tax-qualified retirement accounts. It was set to take effect on September 23. However, it is now in limbo. Until a Labor Secretary is appointed, it will be hard to determine when the ruling will be reinstated.

Roth accounts. Whether more tax revenue will be needed because of estate tax extensions is followed by transforming more retirement accounts from tax-deferred to Roth-style, where taxes are paid when the assets go into the account. Forcing taxpayers to save for retirement on an after-tax basis could help with collecting tax revenue.

Regardless of these and more changes, an estate plan is still the best means of protecting your family and yourself, managing tax liabilities and preparing for the future.

Reference: Think Advisor (Nov. 26, 2024) “7 Big Unknowns That Could Shake Up Retirement Planning”

Discussing Estate Planning in the Holiday Season

“Estate planning can be a tricky topic to bring up with loved ones, especially when distance is part of the equation.”

With so many families living in distant states, the holiday season is often the only time everyone is together. A family gathering can provide a chance to talk about major life changes and plans for the future, including estate planning issues. It can be tricky to navigate. However, some conversations are simply better in person. A recent article from Independent Record, “How to tackle estate planning with loved ones this holiday season” outlines topics to cover.

Beneficiary Designations. Upon opening savings, investment and retirement accounts, an option is usually provided to name a beneficiary. This tells the financial institution who is to receive the asset upon the owner's death, similar to how a beneficiary is named on a life insurance policy. There are often contingent beneficiaries if the primary has died or does not want to receive the assets.

Beneficiary designations should be checked every few years and when certain triggering life events occur, like death, divorce, or marriage. Some financial institutions have default beneficiary designations, so the owner should also have this information. The beneficiary receives these assets outside of the will, avoiding probate in most cases. Tax treatments of these instruments may differ, so they should be reviewed with an estate planning attorney to see how they work with the estate plan.

Power of Attorney. The POA is a document allowing an individual to name someone to make decisions on their behalf if they are incapacitated. This document should be discussed with the chosen person, usually a spouse, adult child, trusted friend, or an estate planning attorney, with their consent. If there are issues with family members, a non-family member may be a better choice.

There are different types of POA. A durable POA takes effect immediately and doesn’t expire. A non-durable POA is valid for only a specific period of time. The healthcare POA, also known as a healthcare proxy, is also needed for another person to be involved in medical care: spouses are not automatically given these rights. A HIPAA release form should also be in place, so the POA can talk with doctors and others involved in medical care.

Wills and Trusts. If there is no will, the person’s assets are distributed according to the laws of the state, which, in most cases, is decided based on kinship. Most people opt to have a will to decide how their assets are distributed.

Trusts establish a separate legal entity managed by a trustee, who also oversees distribution at the time indicated in the language of the trust. Unlike a will, assets in a trust are distributed privately and outside the court system, meaning they don’t pass through probate. An experienced estate planning attorney creates a trust to meet the specific needs of the grantor.

It’s a good idea to talk about these issues while the family members are well and able to discuss them with a clear head. An estate planning attorney will help with guidance and could also help figure out how to navigate issues when potential conflict exists. During and after the holiday season, estate planning protects loved ones and ensures that wishes are followed.

Reference: Independent Record (Nov. 25, 2024) “How to tackle estate planning with loved ones this holiday season”

Can You Transfer Co-op to a Trust as Part of Estate Plan?

“The primary motivation behind these transfers is straightforward: Shareholders want to spare their family members the burden of navigating surrogate court after their passing.”

Real estate is often one of the more significant parts of an estate. Whether the property is a single-family home, a condo, or a co-op (cooperative), it needs to be addressed in the estate “plan. A recent article from Habitat, “Trust Transfers in Co-ops: Balancing Estate Planning and Building Interests,” explains how co-op boards view these transfers, providing useful insight for those considering putting real estate property into a trust.

The board will watch how maintenance payments are handled once the transfer occurs. In a co-op, you don’t own the apartment or townhouse. You instead own shares in the building. When individual shareholders fail to stay current on maintenance payments, the board has a straightforward path to dealing with the issue of non-payment. It can pursue the shareholder’s personal assets or foreclose on the shares.

When a trust owns the co-op, the board has less control over who lives in the unit, so recovery is unclear. The question of the voting rights for a trust versus an individual also has to be clarified. If three siblings now own the co-op through a trust, who has the right to vote in a shareholder meeting? Someone must be designated to participate in the board’s annual meeting and vote on the trust’s shares to maintain quorum requirements.

Determining who pays the co-ops’ legal fees to review the trust request is another issue the board will address. When the owner is an individual, the transfer cost falls on the shareholder making the request, not the building. This occurs with current shareholders who seek to transfer their shares into a trust and new purchasers who want to buy into a unit owned by a trust.

When faced with a request to transfer a unit into a trust, the board also considers whether or not it will permit heirs to automatically be allowed to live in the co-op. Most co-ops have rigorous review processes to protect the financial well-being of the building. Beneficiaries should not expect to move in without going through the same approval process as any new purchaser, whether they plan to live in the unit themselves or if they are going to sell the unit to someone else.

Condominiums are owned differently, so the transfer process will be different than for a co-op. Most condos don’t give their boards as much control as in a co-op. Some condos try to impose similar restrictions when a property is transferred to a trust. However, they don’t typically have the right to do this. A local estate planning attorney should be consulted to review the condo bylaws before moving the property into a trust.

Understand the condo may not have the legal right to prevent a property from being transferred into a trust. However, they might make life uncomfortable for beneficiaries trying to move into a unit or trying to sell the unit. An experienced estate planning attorney should be involved with the transaction before the trust is created and executed.

Another issue to be considered concerns an existing mortgage. Transferring co-op shares into a trust includes surrendering the current stock certificate and lease. To do so, the lender has to approve this process. A new stock certificate is then issued to the trustee on behalf of the trust. There may be tax implications, as units owned by a trust might not qualify for any co-op/condo tax abatement, which could impact the overall estate plan.

This trend appears to be growing, and while some boards may initially refuse the request, many now understand that trust transfers can facilitate the shareholder’s estate plan, while maintaining the building’s best interests.

Reference: Habitat (December 2024) “Trust Transfers in Co-ops: Balancing Estate Planning and Building Interests”

Does Talking with Heirs About Estate Plans Keep Families Closer?

“Warren Buffet shared advice on discussing inheritance with children in a nearly 1,500-word letter.”

Warren Buffet believes parents should read their wills to their children before they are signed, reports a recent article from yahoo! finance, “Warren Buffet has advice for parents on inheritance planning.” This level of transparency can prevent families from being torn apart after the parents have passed and can serve to bring children closer.

Buffet’s advice is one frequently given by estate planning attorneys to their clients: talk to your heirs about their inheritance while you are living to address issues, clear up any confusion and avoid a lifetime of misunderstandings.

Buffet makes an annual gift to four of his family foundations every Thanksgiving, and this year, he presented a letter on his plans to distribute his wealth. Both Buffet and his late wife Susan believed extremely wealthy parents should be careful to leave their children with enough money to “do anything, but not enough that they can do nothing.”

The three Buffet heirs will not inherit his entire fortune, but they have been put in charge of donating 99.5% of it.

Buffet also has wisdom for families with more modest assets. He said there should be ongoing conversations about the estate plan as soon as children are old enough to understand the concept of an estate plan and the family’s financial situation.

Heirs should be given an opportunity to ask questions. If their suggestions are reasonable, they should be adopted, he said. All three of Buffet's children had questions. Buffet said he often took those requested changes and incorporated them into his will.

The goal is to avoid confusion about decisions while you are still living and can resolve the issues. Many families are pulled apart when parents pass, and their decisions about wealth distribution come as a surprise, creating turbulence among siblings.

While the average American inheritance is more like $46,000, according to the most recent Federal Reserve data (2016-20919), and not the $10 million left to the Buffet children from their mother’s estate, the advice is still good.

Buffet also discussed making sure his children knew early on they would always be asked for donations from sincere people and those who are not. His will contains a provision requiring all three children to approve any donations made by the foundation. They must also give an immediate and definitive response to grant seekers, allowing them to say no because one of their siblings would never agree to the request.

While most people don’t face the challenges of overseeing billions in inheritance or foundations, Buffet’s wisdom in investment and company building appears to extend to his parenting. For the rest of us, a meeting with an experienced estate planning attorney to create an estate plan is the start of a plan to distribute our wealth among heirs.

Families, especially those with many children and the means to be philanthropic, often hold regular meetings with their estate planning attorney and other advisors to discuss wills, trusts and charitable giving to create a legacy.

Reference: yahoo! finance (Nov. 26, 2024) “Warren Buffet has advice for parents on inheritance planning”

Does Talking with Heirs About Estate Plans Keep Families Closer?

“Warren Buffet shared advice on discussing inheritance with children in a nearly 1,500-word letter.”

Warren Buffet believes parents should read their wills to their children before they are signed, reports a recent article from yahoo! finance, “Warren Buffet has advice for parents on inheritance planning.” This level of transparency can prevent families from being torn apart after the parents have passed and can serve to bring children closer.

Buffet’s advice is one frequently given by estate planning attorneys to their clients: talk to your heirs about their inheritance while you are living to address issues, clear up any confusion and avoid a lifetime of misunderstandings.

Buffet makes an annual gift to four of his family foundations every Thanksgiving, and this year, he presented a letter on his plans to distribute his wealth. Both Buffet and his late wife Susan believed extremely wealthy parents should be careful to leave their children with enough money to “do anything, but not enough that they can do nothing.”

The three Buffet heirs will not inherit his entire fortune, but they have been put in charge of donating 99.5% of it.

Buffet also has wisdom for families with more modest assets. He said there should be ongoing conversations about the estate plan as soon as children are old enough to understand the concept of an estate plan and the family’s financial situation.

Heirs should be given an opportunity to ask questions. If their suggestions are reasonable, they should be adopted, he said. All three of Buffet's children had questions. Buffet said he often took those requested changes and incorporated them into his will.

The goal is to avoid confusion about decisions while you are still living and can resolve the issues. Many families are pulled apart when parents pass, and their decisions about wealth distribution come as a surprise, creating turbulence among siblings.

While the average American inheritance is more like $46,000, according to the most recent Federal Reserve data (2016-20919), and not the $10 million left to the Buffet children from their mother’s estate, the advice is still good.

Buffet also discussed making sure his children knew early on they would always be asked for donations from sincere people and those who are not. His will contains a provision requiring all three children to approve any donations made by the foundation. They must also give an immediate and definitive response to grant seekers, allowing them to say no because one of their siblings would never agree to the request.

While most people don’t face the challenges of overseeing billions in inheritance or foundations, Buffet’s wisdom in investment and company building appears to extend to his parenting. For the rest of us, a meeting with an experienced estate planning attorney to create an estate plan is the start of a plan to distribute our wealth among heirs.

Families, especially those with many children and the means to be philanthropic, often hold regular meetings with their estate planning attorney and other advisors to discuss wills, trusts and charitable giving to create a legacy.

Reference: yahoo! finance (Nov. 26, 2024) “Warren Buffet has advice for parents on inheritance planning”

Do You Have a Large IRA You Don’t Need for Retirement?

“Meet John and Sally, a 70-year-old couple who own an IRA with an account balance of $1,000,000 that they don’t intend to use for retirement income.”

John and Sally’s problem is a nice one to have. However, it is still a problem. They are rightfully concerned about the taxes generated by Required Minimum Distributions and any taxes heirs may face.

Their two adult children would currently be required to empty the IRA within ten years of their parent’s death. Depending on their ages, these taxable withdrawals could hit during their peak earnings years. The $1 million IRA could potentially lose 40% of its tax value. If John and Sally’s estate exceeds the federal or state tax exemption levels, their heirs could pay a combined estate and income tax burden of 60%-70%.

A recent article from Forbes, “Don’t Need That IRA For Retirement? Here’s What You Can Do With It Instead,” provides several options to consider.

IRA Disclaimer to Pass Assets to Grandchildren. Adult children could disclaim part or all of the IRA, passing all or a portion to grandchildren instead of the children. The grandchildren would still have to be content with the ten-year rule for withdrawals. They are in a far lower tax bracket than their parents. The original IRA owners would need to set up a special IRA trust to restrict how funds could be used. They might specify the funds to be used for education, a down payment on a first home, or medical care. An experienced estate planning attorney can help set up a trust to reduce the tax impact on the family and enhance the grandchildren’s lives.

Create a Testamentary Charitable Remainder Trust. The IRA could be left to the trust to create a lifelong income stream for the children. The benefits are twofold: steady income while protecting the principal and spreading tax liability over many years. Upon the death of the heirs, the balance in the trust is donated either to a charity of the parent’s choice or a Donor Advised Fund. If the couple wishes to replace the amount of money given to charity, they can buy a life insurance policy for their children to benefit the grandchildren.

Buy a Guaranteed Life Insurance Policy. Purchasing a life insurance policy with the RMDs would add an asset outside the probate estate. The income tax-free proceeds could be used to pay taxes on the remaining IRA or become an inheritance. The IRA could also be bequeathed to a charity, and life insurance proceeds would replace the IRA inheritance.

Qualified Charitable Distributions During Life. For philanthropically minded families, a QCD allows IRA owners to contribute funds directly to qualified nonprofits once they turn 70 ½. The QCD does not count as income, so John and Sally can keep taking the standard tax deduction.

Early Distributions Before Reaching Age 73. John and Sally could take their distributions before they reach the required minimum distribution age, spreading withdrawals over extended periods of time. The tax burden would be evened out over time.

These options should be reviewed with an experienced estate planning attorney to be sure they don’t undo other estate planning strategies created to pass wealth across generations and support their future.

Reference: Forbes (Nov. 25, 2024) “Don’t Need That IRA For Retirement? Here’s What You Can Do With It Instead”

How to Avoid Estate Planning Mistakes in 2025

“If these things get overlooked, you risk leaving your loved ones with extra challenges during what’s already a tough time.”

Even if you could remove all of the emotions about estate planning, like considering your eventual demise and the possibility of incapacity, it can still feel a bit overwhelming. Having an experienced estate planning attorney on your team makes the process far easier, with the knowledge you’re in good hands. A recent article from GO Banking Rates, “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025,” explains how estate planning helps to avoid family fights, lost assets and legacies.

Estate Planning encompasses your entire life. Wills express how you want assets to be distributed, and trusts minimize taxes by taking assets out of the probate estate. However, an estate plan is more than these two pieces. Estate plans include incapacity plans, caring for children and transferring wealth in a number of ways.

If someone becomes incapacitated and hasn’t created a Durable Power of Attorney, no one can manage non-healthcare matters, from paying utility bills to maintaining their home. A family member must go to court to obtain guardianship to do anything.

Every estate plan should include a Healthcare Power of Attorney and HIPAA release authorization so a designated person can be involved with their loved one’s healthcare, talk with their doctors and be involved in any medical decision-making.

Keeping beneficiary designations up to date. Beneficiaries aren’t just the people you name in a will. Designated beneficiaries are those listed on retirement accounts, investment accounts, life insurance policies and other documents to receive assets when you die. Make sure these names are up to date, especially if you haven’t reviewed them in years. Any account with a beneficiary designation does not go through probate, and your will has no control over these assets.

Things will get messy if beneficiaries on your accounts are no longer in your life. Assets could go to an ex-spouse, an estranged family member, etc.

Choosing your executor with care. Many people get stuck when there is no obvious person to manage this task. An experienced estate planning attorney can help you work through this issue, since a poor choice could put your entire estate plan at risk. Whoever you choose to serve as executor—the person who manages your estate—will need to deal with financial institutions, family members, government agencies and every facet of your life. Many automatically name their eldest child or best friend, which might lead to disaster if they are not available, good with details, fiscally knowledgeable, or able to manage your family’s personalities. Ensure that they are up for the task and also have a backup executor named.

Introduce your family to your estate planning attorney, financial advisor, CPA and other professionals in advance. The people who help you manage the business side of your life will be able to help you better if family members know who they are, how to contact them and have already met them. They don’t have to be friends. However, making introductions in advance can make their work together easier.

Reference: GO Banking Rates (Nov. 17, 2024) “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025”