The holiday season often brings families together, making it an opportune time to discuss significant topics, including estate planning. While such conversations can feel delicate, having them in person allows for clarity and mutual understanding. A recent Independent Record article, “How to tackle estate planning with loved ones this holiday season,” highlights key areas to cover during these gatherings.
When opening savings, investment, or retirement accounts, individuals are typically asked to name a beneficiary who will inherit the assets upon their death. Contingent beneficiaries can also be designated in case the primary beneficiary cannot or does not wish to receive the assets.
It’s essential to periodically review beneficiary designations, especially after life events like marriage, divorce, or the death of a loved one. Some financial institutions apply default designations, so account holders should verify their records. Beneficiary designations generally bypass probate, transferring assets directly to the named individuals. Consulting an estate planning attorney ensures these designations align with the overall estate plan and considers potential tax implications.
A POA grants someone the authority to make decisions on behalf of another individual if they become incapacitated. This decision should be made thoughtfully and discussed with the chosen person, whether a spouse, adult child, trusted friend, or professional advisor.
There are different types of POAs:
In families where conflict might arise, a non-family member or professional may be a more impartial and effective choice for POA.
If no will exists, state laws dictate how assets are distributed, often defaulting to next of kin. Creating a will ensures that an individual’s assets are distributed according to their wishes.
A trust establishes a separate legal entity, managed by a trustee, to distribute assets privately without going through probate. Trusts offer flexibility and privacy, allowing the grantor to customize how and when distributions occur. An estate planning attorney can tailor a trust to meet the specific needs of the individual or family.
Discussing these issues while family members are healthy and clear-headed fosters better understanding and reduces the potential for conflict later. With the help of an estate planning attorney, families can navigate these sensitive topics effectively, ensuring that loved ones are protected and wishes are honored.
The holidays provide a meaningful opportunity to connect with family and address essential matters like estate planning. At The Werner Law Firm, our dedicated estate planning attorneys can assist you with reviewing beneficiary designations, establishing powers of attorney, and creating wills and trusts tailored to your unique needs. Let us help you make informed decisions that bring peace of mind.
If you have any questions, schedule a free appointment with us through our online appointment page.
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Reference: Independent Record (Nov. 25, 2024) “How to tackle estate planning with loved ones this holiday season”
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