Read more about the article Top Benefits of Estate Planning – Annapolis and Towson Estate Planning

Top Benefits of Estate Planning – Annapolis and Towson Estate Planning

Despite the hard lessons learned during the COVID pandemic, surveys repeatedly show most Americans still don’t have an estate plan in place. According to the article “Five benefits of estate planning” from The Aspen Times, a comprehensive estate plan ensures your assets are distributed according to your wishes when you die, minimizes taxes on your estate and protects your loved ones, especially those who depend on you financially. In addition, estate planning protects you while you are living and ensures that your wishes are followed, if you become incapacitated.

Protect Yourself and Your Assets During Your Lifetime. No one likes to consider themselves at risk of incapacity. However, this happens. If you become mentally or physically incapacitated during your lifetime, you might not be able to earn income, or make decisions for yourself. Part of an estate plan includes documents to address these risks to protect yourself, your family and your assets.

Designating a health care proxy and a power of attorney gives people you choose the ability to make decisions on your behalf. Otherwise, the responsibility for your medical, legal and financial decisions may go to someone you don’t even know.

Asset Distribution. Without a last will, your home state’s laws govern the distribution of your assets. Your intentions to care for certain individuals won’t be relevant, as the law itself decides who gets what. A last will is used to state exactly how you want assets to be distributed. Your last will should be updated as your financial situation and/or family dynamics change. You should also review designated beneficiaries on investment accounts and insurance policies regularly and especially after any major life changes.

Minimize Transfer Taxes. While there’s no way to predict what taxes will take effect in the future, it’s safe to assume there will be taxes on your estate. If you hope to leave wealth of any size to your family, proper estate planning is crucial. There are many different strategies to minimize taxes on inherited wealth, including life insurance, Roth IRA conversions, lifetime giving and trusts. Your estate planning attorney will be able to create a plan suited for your unique situation.

Protect Family Wealth. As people accumulate wealth, they often become the targets of frivolous lawsuits. For this reason, placing assets in certain types of trusts can ensure efficient wealth transfer, as well as protecting assets from predators and creditors.

Create and Continue a Legacy. Legacy planning is part of the estate planning process. Many people donate money or assets on their death to causes they supported during their lifetime. These goals can be achieved by contributing to a donor advised fund, creating a family foundation or setting up a philanthropic trust.

Creating an estate plan is also a useful tool for having candid discussions with the family about the future, avoiding future conflicts and making your estate administration easier for loved ones.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: The Aspen Times (Jan. 24, 2023) “Five benefits of estate planning”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Giving to My Favorite Charity in Estate Plan – Annapolis and Towson Estate Planning

Giving to My Favorite Charity in Estate Plan – Annapolis and Towson Estate Planning

If you’d like to leave some or all of your money to a charity, Go Banking Rates’ recent article entitled “How To Leave Your Inheritance to an Organization” provides what you need to know about charitable giving as part of your estate plan.

  1. Make Sure the Organization Accepts Donations. Unless you have a formal agreement with the charity stating they’ll accept the inheritance, the confirmation isn’t a binding commitment. As a result, you should ask the organization if there’s any form language that they may want you to add to your will or trust as part of a specific bequest. If the charity isn’t currently able to accept this kind of donation, look at what they will accept or if other charities with a similar mission will accept it.
  2. Set the Amount You Want the Charity To Receive. Some people want to leave the estate tax exemption — the maximum amount that can pass without tax — to individuals and leave the rest to charity. Because the estate tax exemption is subject to change and the value of your assets will change, the amount the charity will get will probably change from when the planning is completed.
  3. Have a Plan B in the Event that the Charity Doesn’t Exist After Your Death. Meet with your estate planning attorney and decide what happens to the bequest if the organization you’re donating to no longer exists. You may plan ahead to pass along the inheritance to another organization and make sure it receives the funds. You could also have the inheritance go back into the general distributions in your will.
  4. State How You Want Your Gift to Be Used. If there is a certain way that you’d like the charity to use the inheritance, you can certainly inquire with the organization and learn more. Find out if the charity accepts this type of restriction, how long it may last and what happens if the charity no longer uses it for this purpose.

As you draft charitable planning provisions, make sure you do so alongside an experienced estate planning attorney.

The provisions in your will should be specific about your desires and provide enough flexibility to your personal representative, executor, or trustee to be modified based on the conditions at the time of your death.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: Go Banking Rates (August 26, 2022) “How To Leave Your Inheritance to an Organization”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Estate Planning Mistakes to Avoid – Annapolis and Towson Estate Planning

Estate Planning Mistakes to Avoid – Annapolis and Towson Estate Planning

One reason to review your estate plan is to make sure people you’ve assigned roles to, like executor or guardian, are still living and willing to perform these tasks, according to the article “Five common estate planning mistakes to avoid” from the Idaho Press. Another is to be sure your estate plan is not missing out on any advantages created by new tax laws.

Biggest estate planning mistake: not having an estate plan. Each state has its own laws for distributing property when a person dies without an estate plan. These generally involve leaving a percentage of the decedent’s assets to family members, based on kinship. If the decedent and their partner are unmarried, no matter how long they have been together, the partner receives nothing. Spouses and biological children typically receive a share. This may leave the surviving spouse without enough money to live on. If the children are minors, the court will control their inheritance and when they reach the age of majority, the children receive the entire inheritance.

Second worst mistake: failing to name a guardian and giving no guidance for how you would like minor children to be raised. A guardian must be named in a will, or the court will name a guardian. Wise parents also create a letter to the guardian outlining their values, how they would like their children raised and whatever personal information a guardian should know about their children’s personalities, preferences and interests. This is a kindness to the children and the guardian.

Third is relying on joint ownership to avoid probate. This doesn’t work as well as you might think. Many people add an adult child to the title of assets like their home, and it creates more problems than it solves. Jointly owned assets are vulnerable to the co-owner’s creditors, divorce proceedings and even misuse of the assets. The co-owners must agree to all actions concerning the property, so if the parent wants to sell the house and the co-owning offspring does not, the parent may not be able to sell their own home. To make things more problematic, if there’s more than one child and only one is named co-owner, there is no legal requirement for the co-owner to share with their siblings. If the value of an asset fluctuates and the intent was to give all children equal shares, this can be undone as well.

Fourth is failing to plan for incapacity. People think of estate planning as planning for death but planning for incapacity is an equally important part of estate planning. If a person is too sick or injured to manage their personal business, only a court appointee can act on their behalf, unless a Power of Attorney exists. The POA is used to appoint a person to act as your agent when you cannot do so. Don’t rely on standardized forms: a POA can be assigned powers to act on everything from investments to bill paying to selling a home, or it can be limited to specific tasks. Your estate planning attorney can create a POA to reflect your needs.

You’ll also want a Power of Attorney for Health Care, sometimes called a Medical Power of Attorney. This allows your health care agent to speak with your doctors and be actively engaged in your medical care. Your estate planning attorney will prepare a Living Will, used to document your wishes for end-of-life care. You should also have a HIPAA form prepared, so your agent can access your medical records.

The fifth mistake is not keeping an estate plan up to date. Tax laws aren’t the only things to change and impact your estate plan. A friend from two decades ago may not want to serve as your executor or may have died or moved to another country. Your children may have had children of their own or divorced their spouses. Life changes and your estate plan needs to reflect these changes.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: Idaho Press (Nov. 26, 2022) “Five common estate planning mistakes to avoid”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Does Estate Plan Need a Trust? Annapolis and Towson Estate Planning

Does Estate Plan Need a Trust? Annapolis and Towson Estate Planning

Many people dismiss trusts as only needed by wealthy people. However, they actually can be used to solve many different issues. A recent article from The Mercury titled “Planning Ahead: How do you know when you need a trust?” examines the different reasons for using trusts.

Family Members with Special Needs. If your family includes a family member with special needs, you’ll want to use a Special Needs or Third-Party Supplemental Needs Trust to protect the individual’s eligibility to receive government benefits. Most benefits are means-tested, so a disabled person is not permitted to have more than a minimal level of assets. A well-intentioned family member may feel they are doing a good thing by bequeathing assets to an individual with special needs. However, they would instead be putting the person’s benefits at risk.

Special Needs planning is complex, since it usually involves several different benefit programs as well as services. An estate planning elder law attorney is often involved in helping families navigate benefits and planning for the future, when parents are deceased.

When money management is needed. The average person isn’t accustomed to managing million-dollar portfolios. Therefore, when a large inheritance is in the future, a trust with an experienced financial manager as a trustee can be a better alternative. This is good ‘future-proofing.’ For an example, a woman with a large estate dies unexpectedly, leaving adult children with an equally unexpected large inheritance. The children are suddenly tasked with managing complex investment vehicles and tax liabilities. Had the estate been in a trust with a skilled money manager, their interests would have been better protected.

Real estate in multiple states. Real estate in more than one state gets complicated for estate management. It might be easier to place all of the assets in one trust to make management easier.  If the goal is to keep the property in the family, like a vacation home, a trust is an easier way to own the property and define the rights and responsibilities of the beneficiaries.

Do you need tax protection? Placing assets in trusts can remove them from the taxable estate. Tax planning is a common reason to use trusts, and many different types of trust are available for this purpose.

Do you want a trust to manage funds during your life and after you’ve passed? A revocable living trust can be used to hold your assets during life and postmortem. A revocable trust does not remove assets from the taxable estate but are used for other purposes. This type of trust is usually used in conjunction with a “pour-over will,” where assets held in your name at the time of death are “poured over” into a living trust.

Your estate planning attorney will be able to determine which of the many different types of trusts will be right for you and your family’s unique circumstances.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: The Mercury (Nov. 23, 2022) “Planning Ahead: How do you know when you need a trust?”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Is an Estate Plan Battle Looming? Annapolis and Towson Estate Planning

Is an Estate Plan Battle Looming? Annapolis and Towson Estate Planning

Some people don’t create an estate plan before they die. Or, if they do, they failed to have an estate plan created with an experienced estate planning attorney and their will is unclear, or even invalid. They might die with debts conflicting with their wishes. These and other situations can lead to a long and expensive probate period, as described in the article “In-fighting Families, Wills, Laws & Other Things That Could Hold Up Probate” from yahoo!.

How long does it take for an estate to move through the probate process? It depends upon the complexity of the estate and how well—or poorly—the estate plan was created.

What is probate? Probate is the process where the court oversees the settlement of an estate after the owner dies. If there is a will, the court authenticates the will and accepts or denies the executor named in the will to carry out its instructions. The executor is usually the decedent’s spouse or closest living relative.

How does probate work? Probate is governed by state law, so different states have slightly different processes. The first thing is authenticating the will and appointing an executor. The court then locates and accesses all of the property owned by the decedent. If there are any debts, the estate must first pay off the debts. When the debts have been paid, the court can distribute the remaining assets in the estate to heirs.

If there is no will, the person is said to have died intestate. The court may then appoint an administrator to carry out the necessary tasks of paying debts and distributing assets. The administrator is paid from the estate.

How long does it take? It depends. If the decedent had placed most of their assets in trust, those assets are not subject to probate and are distributed according to the terms of the trust. If there are multiple properties in multiple states, probate has to be conducted in all states where property is owned. In other words, probate could be six months or three years.

Estate size matters. Certain states use the total value of the estate to determine its size, rather than examine individual properties. Possessions subject to probate usually include personal property, cash and cash accounts, transferable accounts with no named beneficiaries, assets with shared ownership or tenancy in common and real estate.

Possessions not typically subject to probate include insurance proceeds, accounts owned as Joint Tenant with Rights of Survivorship, accounts with a beneficiary designation and assets owned in trusts.

Probate varies from state to state. Probate is not nationally regulated, and state-level laws vary. An estate could be swiftly completed in one state and take a few months in another. Some states have adopted the Uniform Probate Code (UPC), designed to streamline the probate process by creating standardized laws. However, only 18 states have adopted this code to date.

Fighting among heirs makes probate take longer. Even small disputes can extend the probate process. If there are estranged family members, or someone feels they deserve a larger share of the estate, conflicts can lead to probate coming to a full stop.

An experienced estate planning attorney can help structure an estate plan to minimize the amount of assets passing through probate, while ensuring that your wishes are followed and loved ones are protected.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: Yahoo (Nov. 21, 2022) “In-fighting Families, Wills, Laws & Other Things That Could Hold Up Probate”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Do I Need a Last Will and Testament? Annapolis and Towson Estate Planning

Do I Need a Last Will and Testament? Annapolis and Towson Estate Planning

Estate planning encompasses everything from planning for property distribution at death to preparing for incapacity, tax planning and guardian planning for minor children. An experienced estate planning attorney is involved with far more than a last will and testament. However, this is what most people think of when they sit down for their first meeting.

A recent article titled “Last Will and Testament” from mondaq examines what the last will and testament does and how it differs from trusts. These two are only part of a comprehensive estate plan.

A will is only effective upon death.  Its directions are not followed while living or if a person becomes incapacitated. A will does not avoid probate, rather it ensures assets go to the people as directed by the person making the will. Without a will, assets are distributed according to the laws of the state, usually determined by kinship. A certain percentage will go to a spouse and another percentage will go to biological children. Unmarried partners and stepchildren have no legal right of inheritance.

The will is also the legal document used to name an executor, the person responsible for carrying out the directions in the will and managing the estate. The executor has a long list of duties, from making sure the will is validated by the court during probate to applying for an estate tax identification number with the IRS, opening an estate bank account, notifying Social Security of the decedent’s passing, paying debts, paying taxes for the individual and for the estate and distributing property,

The will is used to name a guardian for minor children. When planning has been done correctly, the guardian is provided with information about the children’s lives and financial planning has been done for the children’s support and for their education. A trust is usually used to hold assets for the benefit of the children, with a trustee named to manage funds.

Wills go through probate, which varies by state. Once the will is filed in court, it becomes a public document. Heirs must be notified, even those not included in the will. An alternative is creating and placing assets in a trust to protect privacy and manage and distribute property.

Trusts are not just for wealthy people. They are used to maintain privacy, as the assets in the trust do not pass through probate. The trustee is in charge of the trust and making distributions to beneficiaries. There are many different types of trusts; an experienced estate planning attorney will be able to recommend the optimal one for each client based on their situation.

The trust is effective upon its creation and is a separate legal entity and is also used to protect assets from creditors. Trusts are more complicated than traditional bank accounts. However, their ability to protect assets and maintain privacy make them a valuable part of any estate plan.

If a person becomes incapacitated, the trust remains in effect. If the trust is a revocable trust, meaning the grantor is able to change its terms as long as they are living and the grantor becomes incapacitated, a successor trustee can step in and manage the trust without court intervention.

Trusts do require diligence to create. Trust must be funded, meaning assets need to be retitled so they are owned by the trust. New accounts may need to be open, if retitling is not possible. Beneficiaries need to be established and terms need to be set. The trust can be created to fund a college education or for general use. However, terms need to be established.

A comprehensive estate plan protects the individual while they are living and protects the family after they have passed. It is a gift to those you love.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: mondaq (Nov. 16, 2022) “Last Will and Testament”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article What’s a Bequest? Annapolis and Towson Estate Planning

What’s a Bequest? Annapolis and Towson Estate Planning

 

Yahoo’s recent article entitled “Bequests vs. Gifts: Which One Do I Need?” explains that a bequest is the personal property given to beneficiaries through the terms of a will when the original owner dies. A bequest can be cash, stocks, bonds, art, jewelry, or other personal items. However, it can’t be real estate: when real estate is given to another person through a will or trust, it’s known as a devise.

There are four distinct types of bequests: specific, general, demonstrative and residuary. A specific bequest is the transfer of a particular asset, like jewelry, artwork, or automobiles, to a specific person. A general bequest is a gift, typically money, given from the person’s general assets (rather than from a specific asset). A demonstrative bequest is a gift that comes from a stated source like a bank account or retirement fund. Finally, a residuary bequest is a gift made after all debts are paid by the estate and other bequests are made.

You can also direct assets to be left to a nonprofit organization, like a religious or educational institution, as a charitable bequest. Charitable bequests can be specific, general, demonstrative, or residuary.

What distinguishes a bequest from a gift is when and how it’s given. While a bequest is property a person leaves to a beneficiary through a will following their death, a gift is given when someone is still alive.

When a person dies, their estate may be subject to one or more taxes called “death taxes.” These include the federal estate tax, state estate taxes and state inheritance taxes. However, most Americans don’t have to worry about paying federal estate taxes because they only apply to estates worth more than $12.92 million per individual ($25.84 million for married couples). Estates below this are exempt from this tax. Estates that exceed the exemption limit are taxed based on how far over the cap they go.

In addition to the federal taxes, some states charge their own estate taxes with separate exemption limits and rates. These states are Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, Washington and the District of Columbia.

Finally, a few states have inheritance taxes, which are paid by beneficiaries who inherit property. This is different from estate taxes, which are paid by the estates themselves before property is transferred to beneficiaries. The states with inheritance taxes are Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. The Iowa state legislature voted to repeal its inheritance tax in 2021, and the tax will be gradually phased out until it is fully repealed in 2025.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: Yahoo (Jan. 16, 2023) “Bequests vs. Gifts: Which One Do I Need?”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article When Is Life Insurance Taxable to Beneficiaries? Annapolis and Towson Estate Planning

When Is Life Insurance Taxable to Beneficiaries? Annapolis and Towson Estate Planning

When people purchase life insurance policies, they designate a beneficiary who will benefit from the policy’s proceeds. When the life insurance policyholder dies, the policy’s beneficiary then receives a payout known as the death benefit.

Yahoo Finance’s recent article entitled “Will My Beneficiaries Pay Taxes on Life Insurance?” says the big advantage of buying a life insurance policy is that, upon death, your beneficiaries can get a substantial lump sum payment without taxation, unless the amount of the life insurance pushes your estate above the applicable federal estate tax exemption. In that case, your estate will need to pay the tax.

While death benefits are usually tax-free, there are a few situations where the beneficiary of a life insurance policy may have to pay taxes on the lump sum payout. When you earn income from interest, it’s typically taxable. Therefore, if the beneficiary decides to delay the payout instead of receiving it right away, the death benefit may continue to accumulate interest. The death benefit won’t be taxed. However, the beneficiary will typically pay taxes on the additional interest.

If a life insurance policyholder decides to name their estate as the death benefit beneficiary, the estate could be subject to taxation. When you don’t designate a person as your beneficiary, the proceeds from the life insurance policy are subject to Section 2024 of the IRS code. That says if the gross estate incorporates proceeds of a life insurance policy, the value of a life insurance policy must be payable to the estate directly or indirectly or to named beneficiaries (if you had any “incidents of ownership” throughout the policy term).

The proceeds of a life insurance policy may also pass to the estate if the beneficiary dies, and there are no contingent beneficiaries. If you have a will in place, the proceeds will be paid out according to the terms of the will. If there’s no will in place, the probate court decides the way in which to distribute your assets.

The individual insured on a life insurance policy and the policyholder are usually the same person. The policyholder then names a beneficiary. However, a gift tax may apply if the insured, the policyholder and the beneficiary are three different parties. Because the IRS assumes the death benefit was a gift from the policyholder to the beneficiary, you might have to pay gift taxes on the death benefit.

Beneficiaries usually won’t have to pay taxes on life insurance proceeds. However, some situations can result in a taxable event. Be sure that your beneficiary designations are clearly outlined in the policy to avoid taxation.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: Yahoo Finance (Jan. 17, 2023) “Will My Beneficiaries Pay Taxes on Life Insurance?”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Why Everyone Needs an Estate Plan – Annapolis and Towson Estate Planning

Why Everyone Needs an Estate Plan – Annapolis and Towson Estate Planning

 Estate planning means making plans to manage and distribute assets and caring for loved ones in the event of a person’s death or incapacity.  It also involves the creation of legally binding documents to outline a person’s wishes for health care and financial matters. Estate planning ensures your wishes are carried out and is also used as a means to minimizes taxes, as explained in the article “Why Estate Planning Is Important Even If You Don’t Have Assets” from The LA Progressive. 

Even if you don’t have significant assets, you still need to make decisions about your health care, which is done as part of an estate plan. Here are the fundamentals to get you started.

Will. This is a legal document with specific instructions regarding how your assets are to be distributed after death and who should be named as a guardian to care for minor children. The will is also used to name a person to serve as executor of your estate to carry out your wishes and manage distribution of assets.

Trust. A trust is a legal entity holding property or other assets on behalf of another person, known as the beneficiary. There are many different types of trusts, including revocable, irrevocable and charitable trusts.

The revocable trust allows you to maintain control over assets in the trust during your lifetime. After death, the assets in the trust are distributed according to the terms in the trust. An irrevocable trust can’t be changed or amended once it’s established. Charitable trusts are used to provide for a nonprofit organization.

Trusts are used to manage and distribute assets during a person’s lifetime and after their death. They are also used to remove assets from the taxable estate and can also be used to manage expenses associated with the distribution of one’s estate.

Healthcare Power of Attorney. This document allows you to name someone to make medical decisions on your behalf if you are incapacitated and can’t make decisions for yourself. These should be created with your personal situation in mind; a standard form may not permit the nuances you want to convey to another person. With a customized healthcare POA, you can specify the type of decisions your healthcare agent may make and describe any limitations you want over their authority.

Financial Power of Attorney. The financial POA allows you to name a person, called your “agent” or “attorney in fact,” to manage finances if you are too sick or injured to do so. This should also be a customized document, as you may want to limit your agent’s authority to pay bills or allow them to do everything from paying bills to managing investment accounts. The POA expires upon your death and the agent can’t perform any tasks once you have passed away.

Without an estate plan, the care of minor children and distribution of assets takes place according to state laws, which isn’t how most people want their decisions made. The solution is actually quite easy: talk with a local estate planning attorney and get started on creating your estate plan.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: LA Progressive (Jan. 11, 2023) “Why Estate Planning Is Important Even If You Don’t Have Assets”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys

Read more about the article Steps to Take for End-of-Life Planning – Annapolis and Towson Estate Planning

Steps to Take for End-of-Life Planning – Annapolis and Towson Estate Planning

Most people don’t consider anything about planning for incapacity or death to be joyful. However, if you consider estate planning documents as a way to share your wishes and make your departure easier for those you love, as well as a means to express your thoughts and feelings, it could make these tasks a little cheerier. A recent article from The Washington Post, “6 joyful steps for end-of-life planning,” could help reframe how you think of estate planning.

From a practical standpoint, death and incapacity are complicated for loved ones. They will appreciate your preparing an advance health directive, which should be created when a person is healthy, and not when they are in a hospital bed. The same goes for funeral arrangements, which are costly. There are so many choices and decisions to make—do your loved ones even know what you want? Leaving instructions and paying in advance will remove the burden for adult children trying to know what you wanted and dealing with the expense of paying for a funeral.

Digging through a loved one’s credit card bills, cellphone accounts, bank accounts and internet passwords is a big challenge in today’s digital world. It was far easier when there were stacks of paper for every account. Today’s executors need to have all of this information to avoid lost assets, avoid identity theft and prevent roadblocks to wrapping up your estate.

Here’s a checklist to help get your estate plan moving forward.

1 Create a crisis notebook. One binder with all estate planning documents will make it easier for loved ones. You should make additional copies but keep originals in one place—and tell your executor where the binder can be found. Create a worksheet of your many documents, so loved ones will know what they are looking for.

2 Have an advance directive created while you are having your estate plan made. This tells your loved ones what you want in case of incapacity and end-of-life decisions.

3 Have a will created with an experienced estate planning attorney. Without a will, the laws of your state determine how your property is distributed and who raises your minor children. Wills are state-specific, so a local estate planning attorney is your best resource. Be wary of online documents—if they are deemed invalid, it will be as if you didn’t have a will.

4 Make a digital estate plan. No doubt you have more than one email account, shopping accounts with more than a few retailers, credit cards, car leases or loans, home mortgage payments, social media, cloud storage, gaming accounts and more. Without a complete and comprehensive list of all accounts, your executor won’t know what needs to be closed, where your personal documents or photos live or how to retrieve them.

5 Plan your funeral. Yes, it is a little morbid, but do you want your loved ones to have to incur the cost and the emotional burden of planning, when you can do it for them? You’ll feel better knowing your wishes will be followed, whether it’s for a “green” funeral or a cremation, with a long period of mourning following your faith’s tradition or a short memorial service.

6 Write a letter of intent and any final farewells. This is an opportunity to share your thoughts with those you love, with healthcare providers and anyone else who matters to you, about healthcare decisions at end of life, or to convey your values, hopes and dreams for those you love.

When your wills, advance care directives, power of attorney, digital estate plan and funeral plans are all completed, you’ll be surprised at the sense of relief you feel.

Contact us to review your estate plan with one of our experienced estate planning attorneys.

Reference: The Washington Post (Jan. 5, 2023) “6 joyful steps for end-of-life planning”

 

Sims & Campbell, LLC – Annapolis and Towson Estate Planning Attorneys