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- Hopeful Ever After #003
Hopeful Ever After #003
November 2024
Carolyn Howard, CFP®
November 25, 2024 • Estimated Reading Time: 7 minutes
Hello all my hopeful people!
I was just remembering the year that our family decided to spend Thanksgiving in Plymouth, MA, and visit a museum where they do a reenactment of the very first Thanksgiving.
One of the “pilgrims” was running around, trying unsuccessfully to catch one of the live chickens that were roaming through the grounds.
My late husband, Jack, who grew up on a farm in Kentucky, caught the chicken easily and handed it to the surprised – and slightly embarrassed – role-player.
Needless to say, my kids thought their Dad was the greatest hero who ever set foot in that museum!
It’s often the little things that make the warmest memories. Funny how that goes.
Appreciate you all and wish you a wonderful Thanksgiving.
Ever hopeful,
Carolyn
❝
Grief is not a disorder, a disease or a sign of weakness. It is an emotional, physical and spiritual necessity, the price you pay for love. The only cure for grief is to grieve.”
Earl Grollman
Just What Is Estate Planning, Anyway?
When it comes down to it, estate planning is simply a pre-prepared collection of your desires and instructions for life decisions and the distributions of your assets in the event of your disability or death.
There are several specific parts to an estate plan, including:
Will: a list of your general personal wishes
Durable Power of Attorney: someone to manage your affairs if you’re incapacitated
Health Care Directive/Proxy: details how you would like your health care handled
Living Will (not applicable in all states): how you want your end-of-life wishes managed
IMPORTANT: Wills go through the court system (probate) before your assets can be delivered to your heirs. This also makes all of the information about your estate PUBLIC.
I’ll show you how to avoid this a little further down.
This Month’s Financial Tip
Don’t Put Off Your Estate Planning
Let’s be honest: no one want to think about death. But ignoring the inevitable guarantees that your family will experience more pain, frustration, and financial pressure when that day finally comes.
Taking the time to create a proper estate plan is one of the greatest gifts you’ll ever give to your family. They won’t be left guessing about your wishes, wrestling with unnecessary legal proceedings, or paying more inheritance taxes than they need to.
Your estate plan will take all of those things into account and help clear up much of the complexity and expense that often accompany the distribution of inheritance.
And since every state has its own rules around how estates are handled, it’s very important that you work with an estate attorney who understands the details and can help you set everything up correctly.
If you don’t currently have an estate plan (or have questions about your existing one), schedule a complimentary call with me below.
A Lesson from Archie
A client of ours had a friend, Archie, who left his entire estate to her when he passed. While he did have a will, he didn’t take into account that everything would automatically be forced to go through probate before it could be distributed according to his wishes.
It’s now been two years, and the estate is STILL tied up in probate, meaning that our client is still waiting to receive the inheritance from her friend. This is certainly not something Archie would have wanted, but there’s nothing that can be done about it now.
If Archie had been given better estate planning guidance, he would likely have been shown that a Revocable Living Trust - in conjunction with his will - would have ensured that his assets were transferred to our client directly and avoided probate altogether.
Takeaway
A will is great, but without a trust, your estate will almost certainly be forced to go through probate.
Financial Jargon Made Easy
Revocable Living Trust
An RLT is a legal arrangement that allows you to pass your assets directly to your heirs without the need for probate.
When correctly created and funded, an RLT is an excellent tool for efficiently carrying out your wishes and ensuring that your money and other assets go directly to the people and organizations you intended.
You can also make any changes you wish during your lifetime, so it’s very flexible.
Gif by fleischerstudios on Giphy
Oof. I know. If you want to understand more about how an RLT can become a central piece of your estate plan, get in touch with me and we can look at the options together.
You can also call me at 941-841-6564 or email me at [email protected] if you prefer.
