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3 Simple Ways to Avoid Probate Costs

The bad news: When a person dies owning property in their sole name without a beneficiary, their loved ones will have to go through a court-supervised process called probate to transfer the property out of the deceased person’s name and into the name of intended beneficiaries or heirs at law. Going through probate court may lead to various expenses, including fees for attorneys, executors, appraisers, accountants, court filings, and other costs required by state law. Depending on the probate’s complexity and the estate’s value, fees can easily run up to tens of thousands of dollars. The good news: Many costs can be reduced by avoiding probate altogether. It is that simple. Here are three ways to avoid probate and its related costs. 1. Name a beneficiary. The probate process applies only to accounts and property in a person’s sole name that do not have a beneficiary, payable-on-death (POD), or transfer-on-death (TOD) designation at the time of their death. Accounts and property with ...
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While You Are Working on Your Golf Game, Don’t Forget to Work on Your Estate Plan

The course stretches out around you, lush and perfectly manicured. You step up to the ball, take a few practice swings, and inhale the morning air. It is a shot you have made hundreds of times. But years of playing golf have taught you that there is no guarantee you will hit it right this time. Golf, like life, has a way of humbling even the most experienced among us. Conditions change. Variables shift. What worked last time might come up short today. Estate planning is no different. It is about knowing the terrain, making smart choices with the tools you have, and adjusting as life throws you its fair share of water hazards, wind gusts, and bunker shots. August is National Golf Month. While you are out there working on your game, remember that in the game of life, you should also be developing your estate plan. Golf game preparation is important, but so is ensuring your legacy is protected. As with golf, an estate plan takes careful preparation and continual refinement for the best...
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Why a Trust for Your Child Should Mature with Your Child

From the moment a child is born, a parent feels an instinctive drive to protect and nurture. We childproof our homes, carefully choose schools, offer guidance through adolescence, support their careers, and watch with pride as they start their own lives. The desire to be there for them extends beyond emotional and physical care. Finances also play a crucial role, and without proper planning, even the best intentions—yours or theirs—can fall short. With the future in mind, you may have established a trust for your child at birth or shortly after, knowing that you would not always be there to financially support them. However, just as children outgrow toys, clothes, and bedtime stories, they can also outgrow the terms of the inheritance you created for them in their early life. A trust that worked when your child was 5 years old may no longer meet their needs and protect them effectively at 25, 35, or 45. Like your living, breathing child, the trust you create for them must grow as t...
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How to Choose a Conservator for Yourself

Every day we make hundreds of decisions for ourselves—from what to eat for breakfast to where to vacation. But what happens if you cannot make decisions for yourself? Choosing a conservator for yourself means deciding who you want making day-to-day decisions on your behalf. If you have recently created or reviewed your estate plan, you probably discussed and signed a financial power of attorney. For those of you on the fence about completing your estate plan, this important tool allows you to authorize an individual of your choice to manage your financial affairs (for example, sign checks in your name, open a bank account, manage your real property, enter into contracts on your behalf, etc.). This can be very beneficial if you are no longer able to do these things for yourself; someone else can legally step in and handle these tasks for you immediately. However, you may run into situations in which third parties will require the nominated individual to have explicit authority to comp...
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Who Needs an Estate Plan?

If you’re wondering who needs an estate plan, the answer is simple: you do. Why? Because everyone age 18 and older needs one. It doesn’t matter whether you’re old or young, have built up considerable wealth, or are just entering adulthood—you need a written plan to control what happens to the things you own and to protect yourself and those you love. The Key Takeaways Every adult, regardless of their age or the amount of wealth they have accumulated, needs both a lifetime incapacity plan (a plan for if they are alive but are unable to manage their own affairs) and an after-death estate plan. Planning for incapacity keeps you in control of who will make decisions for you if you are unable to and allows your trusted loved ones to care for you without court interference—and without the potential loss of control over important decisions or expenditures for your benefit and the added expense of a guardianship or conservatorship proceeding. Every adult needs up-to-date healthcare direct...
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Should I Buy a Home with Someone Other than a Spouse?

Rising housing costs, the desire for companionship, and the need to share resources are increasingly leading buyers to consider co-owning a home with someone other than a spouse, such as a friend, relative, or significant other. Although this arrangement can be beneficial on several levels, it should be approached with open communication, careful planning, and a clear understanding of the financial and legal implications. Co-Ownership Challenges and Legal Considerations While co-ownership offers many benefits, it also comes with potential challenges. Even the strongest relationships can be strained by the pressures of shared living and financial responsibilities. In addition to disagreements over lifestyle choices, finances, and property maintenance that may arise in a co-ownership situation, owning a home with a nonspouse can raise legal issues. Expectations should be set from the start of the co-owning relationship—ideally, in a written agreement—and regularly communicated throu...
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Handling a Loved One’s Debts After They Die

As a general rule, a person’s debts do not go away when they die. Some types of debt, such as federal student loans, are typically forgiven upon the debtor’s death, but private loans and cosigned accounts may still be owed after the debtor has passed away. State laws also play a role in handling a loved one’s debts after death, impacting the settlement process. While nearly half of Americans think they will pass on their debts when they die, you can take proactive steps now to protect your loved ones from inheriting or becoming responsible for your debts. If you are an estate’s executor/personal representative or have been contacted by a debt collector about handling a loved one’s debts after death, it’s crucial to understand your rights and obligations. What Happens to Your Debt when You Die You are probably familiar with the expression “buried in debt.” It might hit close to home if you are like most Americans struggling to pay off existing loan balances. However, do you know wha...
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