Kansas and Missouri Estate Planning

Should I DIY My Own Estate Plan?

People tend to make mistakes when "freelancing" their own estate planning.

You are finally doing it.

You are buckling down and creating an estate plan.

Congratulations!

Where do you start?

According to a recent New Hampshire Union Leader article titled “Estate planning is important and may require help from a professional,” you should start with the securing your experienced estate planning attorney.

Even a simple plan requires would benefit from a professional.

Some situations demand more care.

What are they?

If you have an estate exceeding the federal gift or the federal estate tax exclusion level, you should seek assistance.

In 2019, this amount was $11.4 million.

If you have minor children, you will need to take care of their guardianship and protect their inheritance should something happen to you.

If you have a loved one with special needs, you will need to take care not to disqualify him or her from important government benefits.

Owning your own business requires its own "succession" planning should you become disabled, retire, or "be retired," so to speak.

If you own property in more than one state, you may need help from attorneys in each state.

Prioritizing your charitable donations is important and needs to be done as efficiently as possible.

Any collectibles or artwork will require extra care in your planning.

If you have specific thoughts concerning health care, you must include these in your estate plan.

If avoiding probate is a priority, you may or may not need more complex estate planning.

What if you do not know what you need?

What if you just do not know what you do not know?

Discussing your situation with an experienced estate planning attorney can help.

He or she will help you determine and establish goals for your estate plan, then create the necessary tools to achieve them.

Once plan is established, be sure to review and update it as laws and family situations change.

Reference: New Hampshire Union Leader (July 27, 2019) “Estate planning is important and may require help from a professional”

Are "Handwritten" Wills a Good Idea?

Handwriting a will can be problematic.

You see handwritten wills in movies and read about them in books.

They seem to work fine.

Surely you could manage to draft a handwritten will successfully.

Right?

Not so fast.

According to a recent Fox Business article titled “Aretha Franklin's handwritten wills found: Big estate planning no-no,” you may want to think twice.

The article sites the Aretha Franklin estate as a cautionary tale.

At the time Franklin died, it was believed she had no will.

In the following months, three different wills have surfaced.

All three were handwritten, or holographic, wills.

These have since been submitted to the court to see if any of them has legal standing.

This process will cost her estate in both time and money.

How do you avoid making the same mistake?

First, do not try to save money with a handwritten will.

These wills are not valid in all states.

Kansas and Missouri are among the ranks of states where handwritten wills are not recognized.

I know what you are thinking.

"I can just download a will on the cheap off the interweb."

True.

You can.

Just because you can do something does not mean you should.

This option may be inexpensive upfront, but it often will cost far more in legal fees when the will is probated and there are "complications" with the document itself, its execution, or its distributions.

The best option is to work with an experienced estate planning attorney.

He or she will help you to create a plan to meet your needs and the laws of your state.

Once you have created a will, you should review it regularly with your attorney.

This ensures that the will is at all times current with changes in state and federal laws and up-to-code when it comes to inevitable life changes such as marriages, deaths, divorces, or births in the family.

These steps will protect you, your assets, and your loved ones far more than a handwritten will.

And peace of mind is priceless.

Reference: Fox Business (May 22, 2019) “Aretha Franklin's handwritten wills found: Big estate planning no-no”

What Are Some Common Estate Planning Mistakes?

Mistakes are costly in estate planning.

You have created an estate plan.

You managed to do it all by yourself.

You feel good.

According to a recent Dedham Wicked Local article titled “Five big estate planning ‘don’ts,’” you could have a false sense of security if you are not an experienced estate planning attorney.

Why?

Estate planning blunders are common when people attempt to take estate planning law into their own hands.

What are common estate planning mistakes?

Selecting minors as beneficiaries.

You have minor children or grandchildren.

You want them to inherit.

Easy.

You simply name them as heirs in your will or as beneficiaries to a policy.

Do not do this.

Minors cannot own assets.

The minor will not be named as an owner.

Instead, a conservator will be named by the court to receive the inheritance for the child.

This conservator must hold the asset and use it for the benefit of the child until the child comes of age, which is age 18 in Kansas and Missouri.

The conservator must file reports and account for how the funds were used for the child each year.

This is costly in both time and money.

How might you fix this?

Create a trust to benefit the child.

Drafting a will yourself.

Yes, there are templates available online.

Using one of these template more often than not invites disaster.

Why?

Oftentimes, the templates do not take into account laws unique to each state.

For example, if you execute it improperly, it will be invalid.

In the end, you will lose more money from your estate than you would have saved from seeing an experienced estate planning attorney.

Naming joint owners to bank accounts.

If you name a child to a bank account as an owner, your funds could be subject to their personal issues.

If they are poor at handling funds or are untrustworthy, they could take your money.

If they are divorced, sued, or in debt, your money could be lost to an ex-spouse or creditors.

Yikes!

It can also cause confusion in terms of where the money passes when you die.

Two possible solutions would be to create a trust or draft powers of attorney so your financial affairs can be handled should you become incapacitated.

Not funding revocable living trusts.

Creating a revocable living trust is just one step.

In terms of probate avoidance, it does not benefit you one whit if there is nothing in the trust.

You must change ownership of assets to the trust or name the trust as a beneficiary for certain assets.

When this is done, these assets will bypass probate proceedings.

You need to make these arrangements before you die or the assets will become part of your probate estate.

Selecting your children as co-fiduciaries.

Do your children argue?

If yes, you probably do not need all of them making your financial or health care decisions together.

If you do, one of two things could happen.

They could be driven to irreconcilable disagreements and division.

The other result is nothing would get done.

Neither is desirable.

What should you do instead?

Evaluate who among your loved ones would best be able to carry out your wishes on your behalf both efficiently and effectively.

Finally, once you have your affairs in order with the help of an experienced estate planning attorney, you are not necessarily done.

Circumstances change.

The result?

You should review your estate plan every few years or after major life changes to ensure that it still meets your goals and situation.

Reference: Dedham Wicked Local (May 17, 2019) “Five big estate planning ‘don’ts’”

Are There Any Drawbacks to Online Estate Plans?

Doing your own estate planning can be dangerous.

Are you an experienced estate planning attorney?

If yes, ignore this blog.

It does not apply to you.

If no, keep reading.

According to a recent Next Avenue titled “The Problems With Do-It-Yourself Online Wills,” doing your own estate planning is risky business (and we all know "Risky Business" is the domain of a younger Tom Cruise).

Those with no experience often turn to online DIY services for estate planning.

At least one of these programs had a number of typos and errors.

It also was missing essential documents or packaging the same documents as different plans.

Yikes!

If you were to use this program, would you know what was wrong?

Would you be blissfully unaware until it was too late?

Many who choose to do their own estate planning never know ... but their loved ones eventually will.

What if the site you are using has attorneys on staff?

Often these attorneys do not offer specific help on your personal documents.

If they do, it will often cost you significant fees.

Perhaps you are thinking, “But I do my own taxes and they turn out fine most of the time.”

They may.

If something goes wrong, you and the IRS get to find and fix this issue together.

In estate planning this is not the case.

If the government finds something wrong with your will, trust, or power of attorney, it is sorry Charlie.

You are either dead or incapacitated.

Either way, the both you and your plan will be powerless.

While you can use a DIY program to get a plan cheap and quick, you may actually be paying for nothing.

To avoid this, work with an experienced estate planning attorney to create a plan to meet your specific goals.

Your peace of mind and a successful estate plan is well worth seeking and paying for these services.

Reference: Next Avenue (March 29, 2019) “The Problems With Do-It-Yourself Online Wills”

Is Doing My Own Estate Planning a Bad Idea?

Some projects are okay to do yourself, but estate planning is not one.

You know you need an estate plan.

You are just a little wary about spending money to get one made.

According to a recent Axcess News article titled “The Very Real Dangers Of Doing Your Own Estate Planning,” estate planning is not a journey you should embark on yourself.

Unless you are planning to get a law degree and years of subsequent specialized training, that is.

Honestly, hiring an attorney is less expensive.

Why is doing your own estate plan so dangerous?

Template documents online can be costly.

Although the price tag may look nice, it could cost your estate and loved ones far more in the long term.

Why?

The estate plan may be defective or not satisfy the needs of you family, let alone state law.

An experienced estate planning attorney can help you create a functional plan to meet your goals.

Your situation may require more complex planning.

True, some people can get away with a simple plan.

But not everyone can.

Has your spouse passed away?

Do you have children?

Do you own real estate?

Are you divorced?

Are you remarried?

If you said "yes" to any of the above, then your estate plan may require more specific planning.

You may need a trust.

This is a sophisticated legal tool.

It will require the work of someone experienced in the field.

One mistake and the trust will not work.

More money means a greater risk.

Do you have wealth?

Is your estate worth millions of dollars?

You probably do not want to risk doing an estate plan alone.

An experienced estate planning attorney will be able to create a plan to maximize tax savings on your estate.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").

Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

Two helpful online resources are just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com.

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Axcess News (August 2017) “The Very Real Dangers of Doing Your Own Estate Planning”

Do I Really Need an Experienced Estate Planning Attorney?

If you want estate planning done right, then do not do it yourself.

Are you living and breathing?

If so, you need an estate plan.

Unfortunately most people live in denial of this fact of life.

According to a recent Dough Roller article titled “The Truth About Why You Need a Last Will and Testament,” you need do more than merely tell a family member your wishes.

A will is invaluable.

You declare beneficiaries, select an executor, can name guardians for your minor children, and arrange for "testamentary trusts" to protect their inheritance for them and from them.

You likely also have assets outside of the purview of your will, too.

Like what?

• Checking accounts with “payable-on-death” beneficiaries
• Insurance policy payouts
• Property with joint tenancy with rights of survivorship
• Retirement accounts

In addition to asset distribution, you will likely want and need a durable power of attorney designating someone your trust to make financial should you become incapacitated. Same goes for your health care decisions, except that would require an advance health care directive (that includes a durable power of attorney for health care decisions).

Does the will not do this?

Nope.

A will only has teeth after your death.

Estate planning is multifaceted and constantly changing.

As such, online or do-it-yourself documents become outdated ... or are not customized to your unique needs.

In addition, you may never know whether a change in law affected your plan as time passes.

Work with an experienced estate planning attorney to create a specific and comprehensive estate plan to fit your needs, then review it with him or her periodically for any necessary updates.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "Estate Planning Anytown MoKan").

Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

Two helpful online resources are just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com.

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help in other areas of law or for matters in jurisdictions outside Kansas or Missouri.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: Dough Roller (July 29, 2017) “The Truth About Why You Need a Last Will and Testament”

What Common Estate Planning Mistakes should I Avoid?

That is an excellent question. Just the fact you are concerned is, well, encouraging.

Estate planning mistakes can truly burden your loved ones when they are grieving and most vulnerable anyway.

A recent CNBC article, titled “Don't drop the ball when planning your estate,” offers five common estate planning mistakes that can thwart your ability to provide for your loved ones as desired.

While you will want to click over and read the original article, here is a summary of the five:

No will. A 2016 survey found that 64% of American adults have no will, and about half of them either said they did not need one or just have not gotten around to it.

Depending on the state in which you live and your personal situation, not having a will can result in assets going to people other than those you intend.

A will is the document that states your wishes. Get one.

No updated will. The good news is that you have a will; the bad news is that you have not reviewed it in a decade.

In our office, the average age of wills brought to us for review is equal to the age of a given couple's eldest child.

Too many folks think their wills are “set-it-and-forget-it” documents that never need to be changed.

However, our lives change. It seems the only "constant" is change.

We marry, divorce, adopt children, have grandchildren … and the list is endless.

Rule of thumb? You should review your will every two years.

Unrealistic ideas about your heirs. When you draft your will, you should consider if your heirs are financially and emotionally able to handle the responsibility of money.

They may not have the appropriate maturity and financial knowledge or may even have an addiction issue. Any of these issues may be a serious problem when giving them a large sum of money.

Consider taking to your attorney about adding provisions in your will to protect your children from the inheritance and the inheritance for them.

No trust documents. Wills help with the division of assets upon death, but trusts can live on for a set period of time to govern the distribution of assets.

A trust can restrict the timing of asset distribution and add conditions for heirs to receive bequests.

Not naming the right executor or trustee. Many people will opt for a relative or old friend in their wills as their trustee.

However, they may be your contemporaries and may not outlive you.

They also may not have the time or inclination to take on the responsibilities of an executorship. Plus, appointing a relative or family friend can increase the odds of friction between heirs.

Instead, you might think about naming a professional executor or trustee.

You hear about websites that can set you up with a will. Nevertheless, these “do-it-yourself” tools have lots of limitations.

While you may never be aware there is a problem with your DIY estate plan during your lifetime, but your heirs likely will when you are gone.

If you are seeking "estate planning peace of mind," then that is reason enough to hire an experienced estate attorney to draft your will and help you update it periodically.

Some people do not want to spend the money, but it is worth it in the long run.

You tend to get what you pay for, yes? 

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.

Reference: CNBC (September 13, 2016) “Don't drop the ball when planning your estate”

For Wont of an Estate Plan, the Inheritance was Lost

I have seen various statistics over the years regarding the number of adult Americans without even a simple will. The American Bar Association reports the percentage at around 55 percent, Rocket Lawyer about the same, and Lawyers.com is a bit less optimistic at 70 percent.

What about you? 

If you die without a will (or other estate planning by design), then statistics will matter little to your loved ones ... especially if some of your loved ones are little ones.

According to a recent article in The Denver Post, titled “How estate plans protect family assets far better than a will,” no estate plan = no guarantee regarding who will inherit your assets.

But what about any minor children (under age 18 in most states)?

They could end up in Child Protective Services or in the custody of someone you would not dream of babysitting your hamster, let alone parenting your children. 

"If you don't have an estate plan, you have a 'plan' written by the state," notes the original article.

Consequently, by default you are relying on the state to decide what happens with your children and your hard-earned assets.

It means your family will be required to go through the courts, and probate may take months or even years, according to the American Bar Association.

Most states have waiting periods for creditors to respond and during that time the probate estate cannot be be distributed.

However, in my experience, the biggest impediment to a successfully administered estate is a total lack of information left behind by the decedent.

Problem: When someone dies, so does all of the information concerning the whereabouts of their important paperwork (legal and otherwise) and the details of their assets.

Depending on the state, probate can be expensive.

In some states it can cost between 5 to 7 percent of your estate.

Yikes!

Missouri is a known offender in terms of probate fees, by default applying "minimum percentage" fees set by statute and based on the value of the assets passing through probate.

Kansas, on the other hand, follows a "reasonable fee" approach based on the actual work done and the person doing the work. For example, an attorney making photocopies is limited to what he or she would pay hourly "after school" clerical help, not the attorney's hourly rate.

Solve: Whether my clients are in Kansas or in Missouri, I cap the attorney and personal representative fees at the "lesser" of a minimum percentage fee or a reasonable fee.

I have found this approach especially helpful since clients in the metropolitan Kansas City area seem to jump back and forth over state line road for a variety of reasons.

What about doing your own will and other estate planning legal documents?

According to the original article, completing an estate plan on the web or through a lawyer who charges only a few hundred dollars to set up a basic will often leaves too much to interpretation. 

Instead, the article counsels you to become educated on how assets are titled and how beneficiaries are designated—the two most critical and least understood concepts in estate planning. 

There is one often overlooked benefit to planning your estate with an experienced estate planning attorney versus a do-it-yourself online form.

What is it?

Your attorney will likely help you update your plans as laws change and keep in touch with you throughout your life.

[At your initial consultation, be sure to ask him or her how they will help you "maintain" your estate plan once inked.]

In contrast, your online will is less likely to tell you if you need a change or modification.

We recommend reviewing your own estate plan at least every two years and update it whenever there is a major life event.

Think deaths, births, marriages, or divorces. 

As you live your life, make sure your estate plan reflects the needs and wants of your family.

So, how do you find an "experienced" estate planning attorney?

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "estate planning Overland Park KS").

Third, either way, verify! Check out the education, experience, ratings and client reviews of any attorney before you contact him or her.

How?

There are two helpful resources just a mouse click away to assist with your due diligence:  Avvo.com and Lawyers.com. 

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website. 

Reference: The Denver Post (June 20, 2015) “How estate plans protect family assets far better than a will”

A Man Who Represents Himself ... Has a Fool for a Client?

"A man* who represents himself has a fool for a client." While the origin of this proverb is uncertain (it is often ascribed to Abraham Lincoln), it begs an important question: 

When do you need a professional to provide a service and when can you do-it-yourself?

Here are a few common tasks to tackle. But should you tackle them by yourself or leave them to a professional?

• Should you stain or paint your cedar deck?
• Should you mow your own lawn?
• Should you replace your own garbage disposal unit?
• Should you cut your own hair?
• Should you drill and fill your own teeth?
• Should you remove your own appendix?
• Should you represent yourself on capital murder charges?
• Should you repair the brakes on your family automobile?
• Should you prepare your own will and trust?

Which of these tasks bears potentially disastrous consequences, if you totally botch it?

For example, the difference between a "good haircut" and a "bad haircut" is about two weeks anyway.

On the other hand, if you fail to fix the brakes on the family "grocery-getter," then you could imperil the lives and limbs of those you love most.

By the way, have you ever been tempted to create your own estate plan?

I suggest you just say "no".

In fact, The Meridian (MS) Star agrees (not that it is following my lead).

In a recent article, titled “Reasons not to write your own will,” the Star notes some common mistakes made when serving as your own estate planning attorney.

Some of these mistakes include: 

State law differences. Many online wills and trusts are generic. In other words, they are not state law-specific.

By contrast, an estate planning attorney admitted to practice law in your state knows its unique laws (and the exceptions) and can make sure your will or trust is street legal.

• Super software. While off-the-shelf software ("lawyer-in-a-box") and online forms can help you draft a will, there is no guarantee the technology will ask specific, unique questions that an estate planning attorney would ask about your estate and your wishes for it.

Earlier wills. Most wills have boilerplate language that will revoke a preceding will. If you write your will totally on your own, you may not realize that you need this clause.

Assumptions. What if you will property to your child and you outlive him or her? What if you will an asset to a friend, and that asset is gone when your will is executed? Things to think about that most people writing a will have not even considered.

Vagueness. Sometimes executors are not given enough power by the language of a will and some agents are given too much authority under a power of attorney. 

When it is all said and done, wills, trusts and estate plans should be created with in collaboration with an experienced estate planning attorney.

So, how do you find an "experienced" estate planning attorney? 

First, ask around. Friends, family and other professional advisors are trustworthy sources.

Second, conduct an "organic" search on "Google" for "estate planning" near you (e.g., "estate planning Overland Park KS".

Third, either way, verify. Check out the education, experience, ratings and client reviews of any attorney before you contact him or her. 

How?

There are two helpful resources just a mouse click away to assist with your due diligence: Avvo.com and Lawyers.com. 

Check any Avvo ratings, client ratings/testimonials and attorney endorsements on Avvo.com  and any "peer ratings" by judges/other attorneys and any client ratings/testimonials on Lawyers.com.

In fact, I use both of these services to thoroughly vett attorneys before referring members of our "client" family for legal help. 

Now, after you mow the lawn this week, make "that" estate planning call a priority to get the ball rolling. 

*I am sure this proverb applies equally to both genders, although Gretchen is the only one in our household permitted to use power tools. No, really.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel. 

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.

Reference: The Meridian (MS) Star (June 7, 2015) “Reasons not to write your own will”

Are Trusts Still a Good Idea?

I read the news today, oh boy. About the lucky taxpayers who have a new estate tax exemption. And though the news was rather sad (for the IRS). Well I just had to laugh ... because, yes, trusts are still a very good idea estate planning tool.* 

A very good idea, indeed.

If you are in any profession or line of work long enough, you see a lot of changes. In fact, change, it has been said, is the only constant in life.

So it is with the federal estate tax and the legal tools we deploy when planning client estates.

When I prepared my first client estate plan in January 1985, the federal estate tax exemption was $400,000.

Today, it is $5 million, as indexed for inflation. Consequently, for 2014 the amount is $5.34 million and for 2015 the amount rises to $5.43 million.

On the one hand, this serious increase in the exemption over the years has obviated "estate tax planning" for all but about one percent of the population. (Emphasis added.)

On the other hand, the need for proper "estate planning" has increased with the prospects of larger inheritances now that the IRS has been disinherited. (Emphasis added.)

Some Americans planning their estates for the first time or are revisiting their current estate plans are confused regarding whether trusts remain an important estate planning tool. This is a legitimate issue.

Recently, Cincinnati.com addressed their confusion in an article titled “Trusts remain useful tool in estate planning.”

One very popular estate planning tool, the revocable trust, remains very much the foundation for many estate plans and is used frequently. In this arrangement, the maker of the trust (the person planning his or her estate) retains total control over the assets, but bypasses probate should the trust maker become incapacitated or die.

Trusts can be funded with a wide variety of assets, too. For example, securities, life-insurance proceeds, and real estate, as well as tangible personal property, are commonly used to fund trusts.

A common use of a trust is to administer the eventual inheritance for loved ones of the trust maker is ways recognize their varying and unique needs. For instance, the trust could first provide just for the surviving spouse until he or she passes away, then for the children and perhaps the grandchildren. Alternatively, the trust could provide for the spouse and children at the same time, with distributions sprinkled among them as needed.

As for the children, a trust can be structured based on the children’s needs now and in the future. These needs may include providing funds be paid out at specific ages or on specific occasions, like when college tuition is due, the birth of a child or the downpayment for a first home.

Sometimes it is prudent to give sole discretion to the trustee as to when to make payments to the beneficiaries. Guidelines for discretionary payments can be detailed in the trust document.

Another reason trusts are used is asset protection. The trustee is the legal owner of the trust property and the beneficiaries are only beneficial owners. When the beneficiaries (other than the trust maker of a revocable trust) have no right to demand the property, then the creditors of the beneficiaries can’t get to the assets. 

Asset protection is essential at times, too. Think substance abuse or a family member with special needs who is on public assistance.

Questions about trusts?

Caveat emptor! Do not rely on a book of forms and boilerplate documents, and do not try to find a reliable answer on the Internet.

Your circumstances are one of a kind and your family is like no other.

[Warning: Apparently self-serving, but truly genuine advice based on nearly 30 years of experience, follows.]

Accordingly, find a local, experienced estate planning lawyer for specific legal advice. It is worth the time, cost, and peace of mind.

*Actually, this is not "news today," but part of the "American Taxpayer Relief Act of 2012." I just could not resist opening this blog post by borrowing loosely from the opening of "Day in the Life" from the final cut on the Beatles "Sgt. Pepper's Lonely Hearts Club Band" album.

Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.

For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.

Reference: Cincinnati.com (November 21, 2014) “Trusts remain useful tool in estate planning”