The Secret to Setting Your Family Up for Success
Estate planning can seem intimidating and unnecessary, and is something many people push off until later in life; however, it is an important way to set yourself and your family up for success, and with the right attorney, it can be easy.
I’ll let you in on a little secret: many attorneys will try to talk people into unnecessarily complicated estate plans. Some people do need wills and trusts, but most people only need the basics: a way to pass on their house, land, personal property, and financial accounts. These can all be set up without a trust, and sometimes without even a will!
I love to use beneficiary deeds as much and as often as possible — in Arkansas, beneficiary deeds facilitate the easiest transfer of assets to heirs after the death of the owner, and protect the property, usually the family house and the land it sits on, from Medicaid estate recovery. With beneficiary deeds, you retain full ownership and control until your death, and can change your mind about who you want to receive the property or sell it if you wish. Doing a beneficiary deed instead of a regular quitclaim or warranty deed means that your beneficiaries receive the property later rather than now, which could potentially save your family hundreds of thousands of dollars in capital gains taxes as well. If you’re interested in learning more, feel free to check out this article on beneficiary deeds.
Financial accounts such as savings accounts, retirement accounts, life insurance, etc. can all be taken care of by designating a “pay on death beneficiary” to receive the funds after you pass. With this method, you retain full ownership and control until your death. Sometimes folks will elect to add a spouse or someone else as a joint owner to their accounts, which is another way to take care of that if you feel totally comfortable with the other person having full access to that account over your lifetime as well.
Cars and boats can also be taken care of by designating someone to receive the property after you pass. All this requires is a visit to your local DMV office and some easy paperwork to request title registration with the beneficiary of your choice.
But enough about property. Let’s talk about what’s most important: people. How do you take care of yourself and make sure that you and the people you love are able to get the medical care you need and support each other in emergency situations where someone lacks capacity to make important decisions about their medical care or finances? Powers of attorney are another incredibly easy and cost efficient way to set yourself and your family up for success. A healthcare power of attorney is a document that allows you to designate someone you trust to make decisions about your medical care in case you become incapacitated, such as getting in a car accident and becoming unconscious. I often suggest clients accompany this with a Living Will, which gives instructions to your doctor and healthcare power of attorney about what how you would like them to make these kinds of decisions. A financial power of attorney is much the same — you designate someone you trust to make financial decisions and actions on your behalf if you are unable to do so yourself, such as continuing house payments from your checking account if you were in an accident. If you want to learn more, you’re welcome to read this article I wrote on powers of attorney.
A free consultation can help you understand what you and your family need to be protected and set up for success, without the extra fluff you don’t need and shouldn’t pay more for. Call my office today, I’m happy to help!
