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Estate Planning

Nine Reasons to Do Estate Planning in 2021

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This year, we have experienced the unexpected. 

COVID-19 (Coronavirus) has ripped through the fabric of our nation, wreaking havoc on our lifestyle. Even with a vaccine just being released as we write this blog, there will still be a time of transition and readjustment. ***

This transitional period is the perfect time for you to re-examine your estate. In our busy lives today, it is easy to prioritize other items and let estate planning slip to the bottom of the list of things to do. The pandemic has provided a time-sensitive reason to prioritize estate planning back to the top of the to-do list. There is a lot outside of our control these days. One thing you can control is making sure that your loved ones are provided for with estate planning. 

Here are some tips on estate planning as we enter 2021: 

  1. Life and Disability Insurance: If you have insurance, be sure to update your beneficiaries. If you don’t have life insurance or disability insurance, then buy some this year. Your employer may provide it. If not, research local insurance agents and brokers to see the best policy for you. This is a crucial decision because when you die, you are leaving funds for your spouse and loved ones to pay funeral expenses and other bills. 
  2. Pet Care: Have someone designated to walk and feed your dog or cat. Provide a key and vet name. 
  3. Funeral and burial arrangements: Make your specific funeral service wishes known, including who you want the eulogy, speakers, music, pallbearers, etc. Also, have your burial plot chosen and purchased. 
  4. Retirement accounts: Your beneficiaries should be updated so your savings and investments go to the right person. 
  5. Bank accounts and investments: Your bank should provide a “Transfer on Death” beneficiary of your accounts. Following your death, whoever you have chosen will automatically receive the account. It is good for smaller accounts and assets. 
  6. Digital assets: Someone should be designated to handle your email accounts and any other online accounts such as social media and websites. Have your Financial Power of Attorney keep all your user names and passwords in a file. Keep them updated when you have changed any of the passwords or closed any account. 
  7. Have a “Family Convo”: Get together with all of your immediate family and discuss what happens if you get sick or die. Make arrangements for your spouse and children. Give them the names of your power of attorney and any documents they may need for future arrangements. 
  8. Health Care Directive: Make your final health care plans known to your loved ones. If you want a DNR (Do Not Resuscitate) write it down. That and any end-of-life care needs should be expressed clearly.
  9. Last Will and Testament: This may be last on the list but it should be first on yours. Create a will that spells out specifically any and all property and who should get it.  

One of the best gifts you can give your loved ones is security. You reduce intra-family fighting, lawyer expenses, and hard feelings by covering all estate issues before you die. Your family will be grateful to you forever.

At A.K. Burton, PC, our experienced estate planning advisors can help you through every step of the way. Call us at (301) 365-1974 for a consultation. Our office is open! We serve Bethesda, Rockville, and Montgomery County. MD area.

*** For more information on how COVID-19 has affected Americans’ finances, see this Forbes magazine article.

Estate Planning

Estate Planning under Siege: How to resolve estate issues with family members

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You’ve heard the stories, or even worse lived through it. Family members fighting each other for the inheritance of their deceased parents. Fights over homes, cars, jewelry, clothing or even, pets ensue.  

These spats get so nasty that the heirs get ‘lawyered up” and take their siblings to court. Sometimes these legal disputes span decades and end up in the national news. Remember the infamous Anna Nicole Smith/J. Howard Marshall case? Other infamous inheritance cases such as Howard Hughes, James Brown also come to mind. a man's hand with a silver pen writing "My Last Will..."

Granted, these are sensationalized court cases; however, they highlight the necessity of estate planning to “regular people”, like us. If your family doesn’t get its arrangements in order, they may have a messy and regrettable experience, too.

Estate Planning may not be a topic you want to discuss, but it is one that every family needs to have. It doesn’t matter what you may be worth or what possessions you may own. Here are a few steps that you can take to avoid probate (and hopefully hard feelings among your heirs) which could last a lifetime:

  1. Leave a list of personal property: Your cars, home, clothing, jewelry, artwork and any other pieces of property that you own needs to be itemized. Then, next to each item of property, put the name of who you want to have it. You may even want to put a sticker with the name of the person on each item to help keep track of who gets what.
  2. Open a line of communication with all heirs: Ask them if they want anything in particular. Keep a record of the conversations and make a list of specific requests.
  3. List any gifts or loans to family members: Parents may make loans or give gifts to children to help them through difficult times. List the names of the children and the loans and/or gifts that were given them.
  4. Avoid joint ownership: In this case, “joint ownership” is where a child jointly owns assets with their parents. An added beneficiary (such as real estate) exposes the parent donor to the co-owner’s liabilities and limits the donor to change his mind in the future.
  5. List spouse as primary and sole fiduciary: Your husband or wife should be the first and primary fiduciary.
  6. Balance needs of spouse and children: Your family members have different needs. One strategy is to assign most of the life insurance money to your spouse, while other property items (i.e. autos, clothing, etc.) go to your children.Consider your individual family member’s needs upon your death to achieve the best balance possible.
  7. Transition the family business: You can gradually hand over the family business while you and your spouse are still alive. Think about grooming your successors by giving them more responsibility and authority.
  8. Keep estate planning confidential: Your finances are your business only. Avoid discussing your estate plan at a dinner with friends or posting plans on social media. Also, don’t give a copy of your estate plan to your children or grandchildren. Once you share your plan, any changes you make to it may be questioned. Avoid the drama. Life changes and with those changes, your estate planning. Only you, your spouse and your estate lawyer should discuss your estate plans.
  9. Make funeral arrangements: Choose where you and your spouse will be buried, the funeral program, interment plans, and other detailed funeral instructions. If you’re choosing to be cremated, iron out all the details and make a clear plan for your remains. These arrangements will save a lot of headaches and embarrassment for your heirs.

You have seen what happens when estates aren’t planned well: family fights, hard feelings, embarrassment, fraud, and litigation. All of these outcomes can be avoided with a solid estate plan. Estate planning is a difficult task and easier if you don’t procrastinate. Don’t delay any longer!

A.K. Burton, PC, which serves the Washington,D.C. and Bethesda, MD area, has experienced and licensed individual estate planning advisers who can help you create a will that will meet you and your family’s needs. Contact us at (301) 365-1974 for more information or email us at info@cpa-maryland.com.