Following the death of a loved one, close family members are sometimes surprised to learn that they didn’t receive the inheritance they were expecting and that the deceased instead left most of their estate to an individual they only recently met, who wasn’t even a relative. While it’s not always the case, in some situations, this can mean your loved one was taken advantage of by a bad actor, who manipulated him or her into cutting out close family members from their plan and leaving assets to the bad actor instead. 

This is called “undue influence,” and it’s not only unethical, it’s illegal and considered a form of elder abuse. Given the growing number of seniors, the prevalence of diminished capacity associated with aging, and the concentration of wealth among elderly Baby Boomers, we’re likely to see a serious surge in the number of cases involving undue influence in the coming years. READ MORE

Roughly two-thirds of Americans do not have an estate plan. If you are among the minority of US adults who have prepared a will, living trust, and other end-of-life documents, you may think your estate plan is settled. But you might want to think again. An estate plan is a living set of documents that should be regularly reviewed and updated. Even if you are vigilant about changing your estate plan over time, there may be aspects that you have missed, such as beneficiary designations for retirement accounts or life insurance policies.

Because your estate plan relies on others, such as designated decision-makers and beneficiaries, it is important to consider not only what might happen to you but also what might happen to them. There may be other aspects of your estate plan that you have overlooked as well. The best-laid plans often go awry, but paying attention to the smallest details can help keep your final wishes intact. READ MORE

As we noted in part one, one alternative way to save for your offspring’s higher education is by using an irrevocable trust. Although there isn’t any income tax deferral on income earned by the assets held by these trusts, it is possible to structure a trust, so your beneficiaries could qualify for financial aid that they may otherwise be ineligible for with a 529 plan. Depending on your situation, qualifying for financial aid may prove even more valuable than savings on the income taxes owed on income earned by the trust.

Here in part two, we’ll further discuss how these trusts work and why they may be an attractive alternative to 529 plans if you are looking to save for your loved ones’ education – whether that education is college or some other form of learning. READ MORE

Creating an estate plan is a personal and often emotional undertaking, making the selection of your estate planning attorney of the utmost importance. Here are some questions you should ask your estate planning attorney to determine if they are the right person for the job.

At its core, estate planning is a personal endeavor. Many estate planning attorneys have personal experiences that influenced their decision to specialize in this area. Asking this question can help you get to know your attorney and their reasons for practicing the way they do. These attorneys are passionate about their work and happy to share their background and the experiences that brought them to choose estate planning as their practice area. If the attorney you are considering has no particular reason for choosing estate planning, then perhaps you should keep looking. READ MORE

Since the pandemic’s start, college enrollments have declined by over one million students over the past two years. With college tuition getting more and more expensive, many students are considering alternatives to the traditional higher education path.

Gap years, travel, trade programs, and online training are replacing the traditional college education path for many. If you want that to be an option for your children or grandchildren, you should be aware that the traditional college savings plans may not be the right fit for your family. READ MORE

The first step is to catalog your artwork, including pieces that you have sold. Make sure to specify to whom they were sold and for how much. This information can be helpful in valuing artwork that has not sold and providing a list of potential buyers for when you pass away. You should also include any pieces of artwork that you have lent. This knowledge will be helpful for your loved ones to determine who has the artwork and under what circumstances it will need to be returned. Your list should also include any pieces that have been licensed to someone else. It will be important for your loved ones to know about this stream of income, which could continue after your death. Also, consider including a list of pieces that you have gifted to individuals or donated to charities. Be sure to include any pieces that you have kept for yourself.

After you have compiled a list of your artwork, it will then be important to determine the value of any piece that has not already been appraised, and that is still considered yours (having been neither donated nor sold). This process can help you understand the value of everything you own (an important step in the estate planning process) and determine if you have adequate insurance to cover your artwork’s value. Just like other pieces of tangible personal property, your artwork can be susceptible to theft and destruction and needs to be protected. READ MORE

When a person dies and leaves behind frozen sperm, eggs, or embryos, who owns the genetic material after the person’s death, and who can use it? While the answers vary from state to state, in general, there is a distinction between who owns and controls gametes (i.e., eggs and sperm) as opposed to embryos. Your sperm or eggs are generally considered your own individual property, and therefore your intent as to how gametes are to be used controls their disposition after your death, so if you intend to allow your frozen genetic material to be used for reproduction after your death, you should make your intent clear in your estate plan. 

State laws that address the issue of embryos vary substantially. As discussed above, in Louisiana, an embryo is considered a legal person and cannot be intentionally destroyed. In Florida, however, any written agreement controls the disposition of the frozen genetic material. In the absence of an agreement, the person who provided the gametes controls their disposition, whereas a couple jointly decides the disposition of their embryo. If one member of the couple dies, the surviving member makes all decisions about the embryo’s disposition. READ MORE

As anyone who has dealt with loss knows, when a loved one dies, those left behind face significant challenges, not only emotional and logistical but financial as well. Empathy was designed to help manage and streamline these responsibilities for grieving families. In addition to the app, in March 2022, Empathy released its first-ever Cost of Dying Report, which surveyed more than 2,000 Americans – each of whom had lost a loved one in the last five years – to get a clearer picture of dying’s the actual cost to families.

Last week, in part one of this series, we discussed some of the Cost Of Dying’s most notable findings and explained how proactive estate planning could dramatically reduce many of the financial, logistical, and emotional challenges for your loved ones following your death. Here in part two, we wrap up our summary of the report and outline more of the ways proactive planning can relieve the burden of your death for your family. READ MORE