My Blog
Nina Stillman: Posted on Tuesday, November 01, 2011 1:38 PM
 "I am too young to have a will". or "Really, Me??? I don't have anything to plan for. These are the most common excuses I hear when younger people meet me and I tell them that I am an estate planning attorney. Business owners always tell me that they will take care of that when they make their money"! I have take n the liberty of adapting from a Wall Street Journal Blog an article about estate planning for all ages. "There’s a misconception that estate planning is mainly something for seniors and grandparents, that younger families can just put it off until they are nearing death’s door. But every adult should at least have a basic estate plan – even if you’re 20 and single. If you have young children or are expecting a baby, there’s no excuse not to have a basic plan in place.So what should you have, at minimum? Here’s a chart, adapted from my new book, The Wall Street Journal Complete Estate Planning Guidebook*, outlining estate-planning steps to take at various stages of your life: If you’re: *Over 18: Since incapacity can strike at anytime, all adults should have a power of attorney for finances and health care and an advance medical directive specifying your wishes if you become critically ill. (Powers of attorney allow other people to make health care or financial decisions for you if you’re unable to do so.) This is particularly important for college students who may be living far away from their parents. Also make sure to fill out beneficiary forms on your retirement accounts, since these assets pass directly to heirs without a will. *Young and single: In addition to the documents named above, you should write a will so that any wealth or material possessions you leave behind will go to whomever you choose (such a your parents, your significant other, siblings, relatives, friends or charity) rather than as designated by state law. (Typically state law would designate your parents, then siblings, then “next of kin.” This website allows you to see state “intestate” laws in your state: http://www.mystatewill.com/.) *Part of an unmarried couple: If you are committed to a partner but not legally married, you need a will if you want your property to pass to your partner at your death. (Without a will, your partner may get nothing.) If you share valuable property, such as a house, consider owning the property jointly with “rights of survivorship,” which means that if one of you dies, the jointly-held property will automatically pass to the surviving partner. If you are not married there can also be issues with who is entitled to make health care decisions for you or take care of your property if you are living but incapacitated. This is a very big issue for same gender couples. A Health Care Directive and Power of Attorney designating your partner as your decision maker is critical. *Married: Because you’re legally married, your estate can pass to your spouse estate-tax free (though the surviving spouse may still have a taxable estate.) Also consider buying life insurance so your spouse is provided for financially in case you die prematurely. be Aware of the size of your estate - particularly if you are a business owner. If your estate exceeds your state's or the federal allowances for Estate Taxes, passing everything to your spouse can cause you to lose out on important tax advantages. *Married with children: You and your spouse should each have your own will, naming guardians for your minor children, in case both of you were to die while they are minors. (If you fail to name a guardian, a court will name someone who may not be the person you would prefer: It really varies who courts name from parents to siblings to siblings-in-law.) You may also want to create a trust to manage your children’s assets if you and your spouse die while they are young. You should also buy life insurance to provide for your family. *Wealthy. If you are worried you may have a taxable estate, talk to an estate- planning lawyer who can advise you on smart tax strategies, such as making annual gifts to family members or directly paying relatives’ tuition or medical expenses, to reduce the size of your estate. *A senior citizen or are ill. Make sure to update your will, powers of attorney and health care directives. Also consider a revocable living trust, naming a trustee who can manage your assets if you are unable to. Talk to your family about your wishes and make sure they have copies of your important estate- planning and financial documents.Readers, what estate-planning steps have you taken, if any? What’s holding you back?
*The chart in the book was adapted from the California Society of CPAs (www.calcpa.org) article end |
Attorney, Wills, Estate Planning, intestate, married, minor children, no will, single, Life Insurance, succession planning, taxes, guardians, power of attorney, Trust, aging parents, asset management
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