Estate planning isn’t just about passing on your assets when you die. In fact, some of the most critical parts of planning have nothing to do with your money at all, but are aimed at protecting you while you’re still very much alive.
Even if, or maybe especially if, you don’t have kids, you need to do estate planning in order to name health care decisions-makers for yourself and provide instructions on how you want decisions made.
As with health-care decisions, if you become incapacitated and haven’t legally named someone to handle your finances while you’re unable to do so, the court will pick someone for you. The way to avoid this is by naming someone you trust to hold power of attorney for you in the event of your incapacity.read more
It’s a common misconception to think that if you don’t have children, you don’t need to worry about estate planning. But the fact is, it can be even MORE important to do estate planning if you have no children.
Thinking that you do not need estate planning ignores several basic facts about both estate planning and life in general. Regardless of your marital status, if you don’t have children, you face potential estate-planning complications which those with children do not. And this is true whether you’re wealthy or have very limited assets.
Without proper estate planning, you’re not only jeopardizing your personal property, but you’re putting your life at risk, too. And that’s not even mentioning the potential conflict and expense you’re leaving for your surviving family and friends to deal with.read more
There are many ways to own your assets. When you die, it is only natural that you want your family to share in the bounty of your hard work. As a way to simplify the transfer process and avoid probate, you may be tempted to add a child or other relative to the deed or bank account utilizing the ownership type of joint tenancy with right of survivorship (JTwROS). However, while this type of ownership delivers a lot of potential benefits, it may also be masking some dangerous pitfalls.
Under JTwROS, when one owner dies, the other owner(s) inherit the deceased owner’s share of the property proportionately.Take note that the words “with right of survivorship” do not need to be explicitly spelled out because the survivorship right is automatic with joint tenancy, unlike other forms of ownership types, such as tenants in common. With JTwROS, its benefits are specific: ownership is transferred automatically without entering probate. Because the property is transferred outside of probate, it is possible to keep this inheritance out of the clutches of creditors of your estate. On the surface, this seems like a smart way to streamline the inheritance process, sidestep creditor baggage, and bureaucratic charges. But the risks may outweigh the benefits.read more
Selecting and naming the right guardians for minor children in the event that something happens to you is a critical component of your estate plan. Last week I’ve outlined some basic steps to select and name a legal guardian in Part One of this two part series. Regardless of whether you own any other assets or wealth, it’s vital to complete this process immediately, so you know that who you care about most—your kids—will be cared for the way you want, no matter what. While it’s rare for something to happen to both parents of a minor child, it does occur, and the consequences are simply too severe to not take a few simple steps to select and legally name guardians the right way. Even if you don’t have any minor children at home, please consider sharing this article with any friends or family who do—it’s that important!read more
One of your most important responsibilities as a parent is to select and legally document guardians for your children. This doesn’t mean just naming godparents or trusting the grandparents will step in if necessary. It means consciously deciding who would raise your children if you cannot. And then it means legally documenting your choices and making sure the people you’ve chosen know what to do if they’re ever called upon.
However, most people have no idea how to even start this process, much less create a legally binding plan. Because of this, many parents simply never get around to doing it. And those who do often make one of several common mistakes—even if they’ve worked with an Attorney. Why? Because most lawyers haven’t been trained properly to help parents with this vital issue.
As a result, unless you’ve worked with me or another trained Personal Family Lawyer®, it’s likely your children are extremely vulnerable to being taken out of your home and placed in the care of strangers. This might be temporary, while the authorities figure out what to do, or they could end up being raised to adulthood by someone you’d never choose.read more