Roth IRAs are getting a lot of attention these days. I get a lot of questions about how to use a Roth IRA in an estate plan if you want to take advantage of tax-free growth your account will enjoy when you leave it to your children or grand children. Some retirees convert their IRAs to Roths even if they’re not convinced the move will pay off for them. Why? It will almost certainly pay off for their heirs. A Roth Read More
Estate Planning When You Have a Stepfamily
Ideally, when a second marriage joins two families together, should be a joyous occasion that creates one bigger family unit - the "blended family." Unfortunately, it too often also creates inheritance fights between stepparents and children. A good estate plan is necessary to help avoid these types of family squabbles. Complications can arise when two people who both have children from previous relationships marry. Read More
Does Your Will Name an Alternate Beneficiary?
If your will does not name an alternate beneficiary, what will happen to your estate if your primary beneficiary does not survive you? If your will does not name an alternate beneficiary, your estate will be divided according to state law. The way the state divides your estate may not agree with your wishes. Your money may go to someone you don't like or to someone who is unable to handle it. For example, suppose Read More
Back to Black: Amy Winehouse Didn’t Have a Will After All
Following the death of my all-time favorite singer Amy Winehouse (ok, after Sinatra) from alcohol poisoning in July 2011, it was reported that not only did the 27-year-old have a will but that she had recently updated it to ensure that her ex-husband, Blake Fielder-Civil, would not inherit any of her estate. That the troubled singer could be organized enough to plan her estate seemed somewhat incongruous, but news Read More
What Can Jim Morrison’s Simple Will Teach Us About Estate Planning?
It’s a bit of ancient history, but Jim Morrison’s will highlights a misunderstanding in estate planning that is still common today: What happens to the balance of a bequest when the beneficiary dies? When The Doors lead singer died in 1971 at age 27, his will provided that his entire estate would pass to his girlfriend, Pamela Courson, provided she survived him by three months. If Courson, his "primary Read More
When Does a Will Become Outdated?
Estate planning is an important part of every family, no matter the size or structure. You should work with an attorney early on to make sure your wishes are carried out when you or another member of the family passes away. It’s imperative, however, to understand a will is not a “set it and forget it” situation. You will need to update your will as time passes. Your Family Structure Changes This should be the most Read More
Your New End of the Year Estate Planning Habit
Last month, we wrote about the life events where you need to update your Estate Plan. If you’ve recently gotten divorced, welcomed a new child into your family, or even moved to a new state, you need to update your Estate Plan to reflect that. Estate Planning is the process of working with an attorney to create a legally-binding plan for what will happen to your remaining belongings, property, and money after you Read More
5 Times When You Need To Update Your Estate Plan
Estate Planning is the process of working with an attorney to create a legally-binding plan for what will happen to your belongings and property (known as your estate) and your remaining money (known as your assets) after you pass away. If you don’t create an Estate Plan, these decisions are made by a Judge in probate court, not by your family or loved ones. Estate Planning encompasses a lot of different methods, Read More
Wills vs. Trusts: What’s the Difference?
When most people think of Estate Planning, they think of a Will. Whether it’s written on a napkin, on a file on your laptop, or hastily told to someone you love when you get sick, a Will is the full extent that most people will think through their Estate Plan. However, these hand-written Wills often don’t hold up in court - and Wills are just one method of creating an Estate Plan. Estate Planning is the process of Read More
Estate Planning is Easier Than You Think
Most people know they need to make time for Estate Planning, but keep pushing it to the back of their To Do list. Especially if you have never done it before, Estate Planning can feel intimidating. Working with an attorney is something people normally only do if they’re in trouble, and seeking one out feels like a lot of work. Here’s the secret: Estate Planning is a lot easier than you think. Estate Planning is the Read More
