Larry Scott Auerbach, Esquire

3 tips for talking to your parents about estate planning

2024-08-12T12:49:16Z

As you get older and understand the benefits of an estate plan, it's normal to want to know if your parents have one. But how can you bring up such a sensitive topic? If you approach this subject from an informed angle, you may have a productive conversation. Below are three tips to help you achieve this:

Plan what to say

Plan what to say before you meet your parents. If you have siblings, agree on this together. One of the things you should be ready to inform your parents of is why you want to hold the conversation. For example, you want to see if they need help or you witnessed another family go through a challenging court process due to the lack of a will and would not wish that on your family. Or you would like to know if you have been appointed to a crucial role, such as a health care agent, and wish to start preparing.

Choose the right time

It can be impossible to determine a perfect time for such a conversation, but you should not wait until it's too late or after a major event like a health scare happens. Have the conversation once you and your siblings are on the same page. And when you choose a day and time, let your parents know sooner.

Ask about what they have done

When you sit down with your parents and have informed them of the purpose of the meeting and your reasons behind it, learn what they have done first. This way, you can know how to steer the conversation. Talking to your parents about estate planning is not necessarily about "protecting your inheritance." You can initiate the conversation without painting such a picture. You should also help your parents get legal guidance to make their work more manageable.

What is a living will?

2024-07-26T10:26:16Z

A living will is a legal document that tells others what your personal choices are about end-of-life medical treatment. Without a living will, your family members must make important end-of-life decisions on your behalf should you suddenly fall ill or have an accident that renders you incapable of making decisions for yourself. Regardless of age, it is a good idea to have a living will in place due to the unpredictable nature of life. This way, you can choose which procedures or medications you wish to have or abstain from to extend your life if you cannot communicate with your physicians.

What issues are addressed in a living will?

Your living will should address whether you want the medical team to perform life-saving measures if you are incapable of making the decisions yourself. These include:

Performing CPR/Cardiac resuscitation
Putting you on a ventilator to breathe
Feeding you through a tube or an IV
Pain management or palliative care preferences

If you have any specific health issues, you should make your wishes clear. For example, if you have COPD, do you want breathing treatments to be administered? You should also address whether or not you wish to donate your organs if you pass away.

Choosing a healthcare proxy

When you create your living will, you must designate a healthcare proxy. This person may be your spouse, your parent or sibling, your child or your friend. In other words, this should be someone whom you trust to ensure your wishes are carried out, make any decisions you didn't address beforehand and provide specific instructions regarding treatments. Seek assistance with drafting a legally binding, thorough and clear living will. This will prevent any potential future issues that may arise when you are unable to provide or refuse permission for medical procedures that will have a substantial impact on your life.

Is your family ready for the Great Wealth Transfer?

2024-07-09T22:58:42Z

No generation in American history has acquired as much wealth as Baby Boomers, according to Merrill Lynch. They note that this wealth has now reached roughly $84 trillion. Over the next two decades, it will be passed down to future generations. Most of them will be either be Gen X or Millennials, although grandchildren in Gen Z may also benefit. The movement of this amount of money from one generation to the next is being called the Great Wealth Transfer. If you and your family are heading toward this transfer, it’s important to be ready, and that means making an estate plan. Here are a few ways that planning can help at this time.

Making your intentions clear

First of all, an estate plan makes your intentions clear to your family members. This lowers the odds of estate disputes. You can help keep future generations on good terms while distributing your assets as you see fit.

Deciding how to use the money

Another benefit of estate planning is that you can take action if you already know how you want the money to be used. Maybe you’d like it to pay for the college education of some of your beneficiaries, for example, because you know how high college tuition costs have climbed. You could put the money in a trust with this specific purpose.

Managing expectations

Working on an estate plan in advance can also be helpful if you talk with your family members. In some cases, complications arise when there are mismatched expectations – such as two beneficiaries who both thought they would inherit the same item. By discussing the process in advance, you can provide explanations for your decisions, tell heirs what they should really expect, and find out who is even interested in certain assets – from a family home to a business. The above are just a few examples of how estate planning can help as the Great Wealth Transfer approaches. Take the time to look into all of your legal options.

Can you use estate planning to prevent future guardianship?

2024-06-26T02:00:06Z

Adult guardianship, a legal mechanism designed to protect individuals who cannot make decisions for themselves, can be a double-edged sword. While it offers protection, the process and consequences of establishing a guardianship can be fraught with challenges and risks. Guardianship can strip individuals of their autonomy, placing their affairs and decisions in the hands of another. The pitfalls are significant. It can cause deep family rifts and expose the vulnerable to financial exploitation. Perhaps the most heart-wrenching risk is the potential loss of personal freedom and independence.

Legal documents that may reduce risks

Sound estate planning can be instrumental in lowering the risk of adult guardianship. The following documents can help you proactively address many issues that lead to guardianship concerns.

A durable financial power of attorney (POA) authorizes a trusted individual to manage your finances if you become incapacitated, showing you have taken responsible financial measures.
A health care POA empowers a chosen person to make medical decisions for you if you cannot, possibly reducing or eliminating the need for guardianship due to medical concerns.
A living will outlines your end-of-life care choices and can prevent the interference a guardianship might invite.
A living trust can strengthen the protection a financial POA provides, potentially helping prevent guardianship while preserving autonomy.

These documents help form a comprehensive estate plan that safeguards your independence and dignity alongside your family and assets. With strategic estate planning that anticipates potential risks and hurdles, you can create documents in the present that preserve your rights in the future. It’s important to have experienced estate planning guidance.

Tips for including your digital assets in your estate plan

2024-06-11T19:50:17Z

Most times when we think of estate planning, the focus tends to be on tangible assets like homes, cars and personal belongings as well as financial assets like banking accounts, stocks and life insurance policies. However, in today's digital age, it's equally important to consider your digital assets. Digital assets come in various forms and it is important to identify, manage and plan for them appropriately to make sure they are protected and transferred according to your wishes.

Digital estate planning tips

Here are some tips for incorporating your digital assets in your estate plan:

Maintain an inventory of the assets: Generate a thorough list of all your digital assets. This includes online accounts (such as email, social media, cloud storage and subscription services), digital currencies, digital photos and videos, domain names, blogs and any other online or electronically stored property.
Document access information: For each digital asset, record the necessary access information, such as usernames, passwords, security questions and PINs. Store this information in a secure manner, such as using a password manager or keeping a physical document in a secure location.
Get a digital executor: You should have a designated trusted individual to act as your digital executor. They will manage your digital assets in accordance with your instructions after your death. Make sure to legally appoint this individual in your estate planning documents.
Provide clear instructions: Clearly outline your wishes for each digital asset. For instance, specify whether you want certain accounts to be deleted, memorialized or transferred to someone else. Be detailed about how you want digital files, cryptocurrencies and online accounts handled.
Include digital assets in legal documents: Make sure estate planning documents explicitly mention your digital assets. This inclusion will help ensure they are legally recognized and properly managed during the estate settlement process.
Keep your plan updated: Regularly review and update your digital asset inventory and access information. As you acquire new digital assets or change account information, make sure your estate plan reflects these updates.

Be sure to seek legal guidance to understand how to effectively include digital assets in your estate plan and better ensure that your wishes are clearly documented and legally enforceable.

Estate planning tools to prepare for possible future incapacity

2024-05-24T18:23:25Z

As life unfolds, we often focus on our achievements, milestones and dreams. Yet, it is equally essential to prepare for the unexpected – times when we may be unable to make decisions due to illness, injury or aging. Incapacity planning empowers individuals to safeguard their healthcare autonomy and financial interests when they cannot speak for themselves.

Safeguard your healthcare preferences

A top concern for older Pennsylvanians is what could happen to them if they become unable to express their medical care wishes. Two critical documents – the living will and the healthcare power of attorney – play pivotal roles in safeguarding your healthcare autonomy. These advance directives allow you to express your preferences for:

Life support measures like artificial respiration or dialysis
Pain management and palliative care
The use of medical interventions at the end of your life
End-of-life spiritual or religious concerns

These planning tools allow you to always have a say in your medical care, regardless of your condition.

Protect your assets and financial matters

Now that you know how to address medical issues for possible incapacitation, it is time to protect your assets for future generations. Along with a well-drafted will, these two financial documents ensure you are off to a good start.

Financial power of attorney. This estate planning document grants a trusted agent the authority to control financial matters on your behalf, such as paying bills, managing investments, filing tax returns and more.
Revocable living trust. With this tool, you maintain full control and management of your assets while alive and healthy. Upon incapacitation, it allows your designated agent to take over asset control, ensuring no court intervention or gaps in financial protection.

These are just two ways to address potential future incapacity. Seek legal guidance to learn more.

A serious diagnosis needs to be addressed in an estate plan

2024-05-14T10:34:23Z

As people age, there is always the chance that they will experience a serious medical diagnosis. An example of this could be Alzheimer’s, which is a degenerative brain disease that gets worse with time. Another example could include a specific type of cancer. When this diagnosis is made, it needs to be addressed in the estate plan. For some, this means drafting a brand new plan entirely because they didn’t have one until the diagnosis was made. For others, it just means updating the plan they already crafted. Below are two areas to keep in mind when doing this.

Considering mental capacity

One thing to remember is that some diseases could impact a person’s mental capacity. This could change their ability to update their state plan. Even if they do make these updates, they could be challenged later by beneficiaries who claim that the elderly person lacked the testamentary capacity to make those changes at the time. It’s best to make any alterations as soon as possible to lower the odds of a dispute.

Making medical decisions

Additionally, someone may just have a very basic estate plan that distributes their assets. But the diagnosis means that it’s time to update that plan to make medical decisions. They may want to do this with an advance directive or other specific instructions for the medical team. They may also want to consider a medical power of attorney, allowing an agent to make those healthcare decisions. The medical side of aging is very important when it comes to estate planning. Those involved in this process need to carefully consider all of their legal options.

Tips for updating your estate plan after having a baby

2024-05-06T14:18:37Z

Welcoming a new baby into your family is a joyous occasion, but it also comes with new responsibilities. One important task many parents overlook is updating their estate plan to protect their children.

Here, you can learn more about updating your estate plan after bringing a new baby home.

Reviewing existing documents

Before making any changes, review your existing estate planning documents, including your will, trust and any powers of attorney, and determine whether they need to be updated to reflect your new parental status. You may need to add your new child to the documents or make other related changes.

Naming guardians

One of the most critical decisions you'll make as a new parent is choosing a guardian for your child in the event of your incapacitation or death. Discuss this decision with your partner and select someone you trust to raise your child according to your wishes.

Updating beneficiaries

With the arrival of a new baby, you may want to revise the beneficiaries listed in your will, trust, retirement accounts and life insurance policies. Ensure that your child is included as a beneficiary and consider how assets will be distributed to them.

Establishing a trust

Creating a trust offers additional protection for your child's inheritance. Consider creating a trust that specifies how the assets should be managed and distributed. You can even set an age or date when your child can access the assets themselves.

Updating healthcare documents

Review and update your healthcare directives and powers of attorney. Make sure they reflect your wishes regarding medical care for yourself and your child. If you cannot do so, designate someone to handle healthcare decisions for you.

Updating your estate plan after having a baby is crucial in safeguarding your child's future. By reviewing and revising your documents, you can provide peace of mind, knowing that your child will be taken care of based on your instructions.

What should you know about irrevocable trusts?

2024-04-23T03:28:16Z

Creating an estate plan is something all adults need to do. If you die without an estate plan (at least a will), your assets will distributed according to the state’s intestacy laws, which may or may not be what you had in mind. A comprehensive estate plan has more than one component. You can pass some assets down using your will, but there are times when a trust might be necessary. One type of trust if the irrevocable trust. An irrevocable trust can’t be changed once it’s set up and funded because you give up control of the assets. The only exception to this is if the court orders a change or the beneficiaries agree to it. That means you need to ensure that you have the terms set exactly as you intend.

The benefits of an irrevocable trust

The benefits are what draw many people to establish an irrevocable trust as a way to pass assets to their beneficiaries. One of the biggest benefits is that the contents of the trust can’t be touched by creditors. Since you don’t have control of the assets, they aren’t considered your property for collection purposes. Irrevocable trusts also have tax benefits. This type of trust is not considered part of your taxable estate, so it could save your loved ones money. Because trusts don’t go through probate, beneficiaries can enjoy privacy. This means nobody has to know the terms of the trust unless they want to share them. Setting up a trust must be done precisely. Having experienced estate planning guidance is critical. Ultimately, the goal of estate planning is peace of mind for you and your beneficiaries.

The inherent risks of estate planning with a DIY will

2024-04-09T10:20:09Z

You might think that a do-it-yourself (DIY) will could save you a lot of money and unnecessary hassle when planning for the future of your estate, especially with the abundance of online resources and software available today. However, in utilizing this kind of will, you could be setting your estate plans up for potential problems down the road. Your legacy may be at risk if things go south. One of the main risks of a DIY will is the potential for errors or omissions. A legally valid and enforceable will in Pennsylvania must meet some requirements specified by the law. For instance, the will must be in writing, signed and witnessed by at least two individuals who are not beneficiaries. A DIY will may not meet these legal formalities, which can lead to the will being contested or even declared invalid in court.

A DIY will may be prone to ambiguity

It’s easy to get the wording wrong with a DIY will, which can create issues during the probate process. Ambiguity or a lack of clarity in a will may arise from unclear language or insufficient details that can lead to confusion about your intentions. This can result in disputes among your heirs and beneficiaries, potentially setting the stage for costly legal battles.

Failure to address complex family situations or unique assets

A will should be tailored to your unique situation and desired objectives. For example, a generic DIY will may not suffice if you have a blended family, minor children or beneficiaries with special needs. Similarly, a DIY will may not fully address the distribution of complex assets like intellectual property, collectibles or business interests. These and other risks of a DIY will underscore the need for qualified legal guidance when crafting your estate plans. There is too much at stake to take your chances and leave your loved ones in limbo when you are gone.