Kansas and Missouri Estate Planning

How Should I Pick a Guardian for My Children?

Selecting a guarding is no small task.

You love your children.

You want what is best for them.

How do you determine who should take your place if you die?

Should you prioritize fiscal responsibility or loving support?

What if you did not have to choose one at the expense of the other?

According to the NJ 101.5 article “Choosing guardians for your minor children,”  you could have both.

How?

You can name one person to be guardian and rear your children to adulthood (i.e., age 18).

In addition to this, you can designate another individual to manage the estate and oversee the use of the inheritance left for your children.

If you have any minor children, assets are usually placed in a trust for their benefit.

Why is this a good idea?

A trust protects the assets on behalf of the children.

You can restrict the amount distributed to your children at certain ages.

When all the inheritance distributions have been made to (or for the benefit of) your children upon reaching a certain age you designate, then the trust can be terminated.

The guardian of these finances is called the trustee.

The trustee will make decisions based on your directions in the trust to provide for the needs of your children—whether for their health, education, maintenance or support needs.

By dividing these responsibilities, you can create a checks and balances system to truly providing what is best for your children.

What should you consider when naming separate guardians and trustees?

First, they should each be well-suited to the position you desire them to fill.

Second, you should pick two individuals who are willing and able to work together under the limits set by the trust.

No matter who you choose, it is always wise to discuss your intentions with the selected individuals before making it "legal" in your estate plan.

A letter recording your wishes for each of your children would also be beneficial.

Meet with an experienced estate planning attorney to create a comprehensive plan for your minor children.

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: NJ101.5 (October 24, 2016) “Choosing guardians for your minor children”

What Financial Planning Steps should I take as a Single Parent?

For starters, I applaud your taking the proverbial "bull by the horns" here.

In reality, it is even more important for single parents to have their "ducks in a row" financially and legally than their two-parent counterparts.

Okay, I will stop with the idioms.

For now. 

Recently, the Parent Herald provided five pertinent pointers for single parents in its article titled "5 Financial Planning Tips For Single Parents For Your Family's Protection."

Here is a quick take on these tips:

Create a safety net.

Have you set aside enough cash so a flat tire, broken washing machine or unexpected (and uncovered) medical emergency does not send you into panic mode?

This cash cushion is commonly called an "emergency fund."

So, how much should you set aside?

You should have enough cash (or easily tapped account) to cover household expenses for six months.

Make insurance a priority.

No one wants to be "insurance poor," but two forms of insurance are simply must-haves for single parents.

What are they?

Medical insurance and life insurance.

Unforeseen medical emergencies can be a big drain on your family cash flow.

Look for health insurance plans that include regular check-ups for parents and their dependents.

Prevention is always better than treatment ... and cheaper, too.

How would your child or children make it financially if you were deceased?

That is where life insurance comes in.

It is a financial miracle that provides an "instant estate" to care for your loved ones.

Work with an insurance professional to determine the right type and amount of insurance for your unique circumstances.

For example, what will be needed to cover the day-to-day needs of your children, let alone their education needs?

While you are at it, strongly consider "disability income" insurance to help replace your income if an illness or injury removes you from the workforce (and your income from the household).

Adhere to a cash flow plan.

Do you have a budget?

If no, then you will want to create a budget to determine your household cash inflow and outflow.

This free online guide can get you started.

Once your budget is in place, you can treat yourself and children once in a while, but avoid giving in to impulse purchases.

Your family budget also will educate your children about money and may help them understand why you may not be able to afford some things.

This is a perfect opportunity to teach them the difference between "needs" and "wants," as well.

When it comes to parenting, more is caught than taught.

Do your estate planning.

If your children were orphaned, who would rear them to adulthood?

Should they have a "surviving parent," do you really want him or her managing the inheritance you leave behind?

These issues and others illustrated why you need to do comprehensive estate planning.

At a minimum, single parents need to prepare a will to designate the backup parents (assuming there is no fit surviving parent) and inheritance manager.

Plan for retirement.

No, really.

Do not neglect your own future retirement stability by trying to meet your all of your child's immediate needs and wants.

Think of it this way - if you are financially secure and independent in retirement, then you will not be living in their basement.

Although I have heard parents joke that they "want to live long enough to be a burden on their children," no one really wants to end up there.

In the end, solid financial and estate planning will provide your children with the protection they need and you with priceless peace of mind. 

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: Parent Herald (April 6, 2016) "5 Financial Planning Tips for Single Parents for Your Family's Protection"

Why do I Need Life Insurance?

Simple answer: To create an instant "estate" for your loved ones before you have had time to build one.

In fact, a recent Forbes article goes further ... and thankfully so.

The article, titled "10 Things You Absolutely Need To Know about Life Insurance," notes that there is still a lot of confusion and skepticism about life insurance.

Why?

Perhaps it is because life insurance is seen by many as complex, the unfair image of those who sell it, or because it requires us to consider our own mortality.

Regardless, armed with the proper information, you can simplify the decision-making process and arrive at the right choice for you and your loved ones.

While you will want to click over to the original article yourself, here are some of the 10 things you absolutely need to know about life insurance according to the original article:

You really need it if you are someone's spouse or the parent of dependent children. 

Only if you are retired or financially independent and no one would suffer financially if you were not around, then you may not need life insurance.

All others, however, should get insured.

That noted, you will never ever hear a widow complain about the life insurance her husband had.

Life insurance does not simply set an arbitrary monetary value on your life. 

No, life insurance helps compensate for the financial consequences that accompany the loss of a wage earner's life. It can help those left behind cover the costs of final expenses, outstanding debts and lost income.

After an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are struggling and dealing with great loss. Life insurance can also give peace of mind to you, the policy holder.

Life insurance is a risk management tool, not an investment.

There are some life insurance policies that have an investment feature, but they are not really an optimal investment. There are usually better and more efficient strategies. 

On the other hand, if you are a Kansas resident, the cash value of any policy you have had for more than one year is beyond the reach of your creditors.

There are two kinds of life insurance—term and permanent, also known as whole life insurance.

Term life is the simplest, the least expensive, and the most widely applicable. The life insurance company bases the policy premium on the probability the insured will die within a stated term—typically 10, 20 or 30 years.

The term premiums are guaranteed for the length of the term, then the policy becomes cost-prohibitive to maintain (or you can decide to let it lapse). This means that you could pay premiums for decades and "get nothing out of it." 

That is good news because it means you are still alive and were protected during the time protection was needed.

Permanent life insurance includes the same probability-of-death calculations, but it also includes a savings mechanism, often referred to as "cash value."

This cash value is designed to help the policy exist into perpetuity.

Whole life has an investment component, and variable life has investment options more like mutual funds. Universal life is a less expensive permanent life insurance alternative with added flexibility but increased interest rate risk for the owner.

Choosing the right life insurance policy does not have to be complicated.

It is better to set up something you can understand than to postpone such an important decision due to the policy's intimidating complexity.

In many circumstance, a good rule of thumb is to purchase enough life insurance to replicate all or most of the insured's income for a term as long as the household expects to need that income.

Open and honest discussions about planning for an unexpected death can be surprisingly life-giving.

Purchasing life insurance sets a solid foundation for your long-term and comprehensive financial plan. 

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: Forbes (January 5, 2016) "10 Things You Absolutely Need To Know About Life Insurance"

Do I Need to Update My Will Now that I Have a New Baby?

First, congratulations!

Normally, if you have a new baby and you already had your estate planning documents completed after your first child was born, then there should be no need to update your will.

However, it may be a good idea to review the estate plan.

This was the subject of a recent New Jersey 101.5 post titled "Will another baby affect your current will?"

The post advises that you confirm whether your will identifies your "children" or "descendants" as your beneficiaries ... and then defines those terms to include afterborn children.

If it does, then yaay!

It will not be urgent to update your will to include your new child's name.

Unfortunately, if the will was drafted without that flexibility and only identifies your first child by name as the beneficiary, then you need to have your will updated.

The new "arrival" should also trigger a review your of the beneficiary designations for your life insurance policies and retirement plans.

In those documents, you may have named your first child specifically as a beneficiary. If yes, then an update may be necessary.

Also, be careful of naming your "estate" as the beneficiary of any retirement assets.

If you do, then it can have unintended adverse income tax consequences after your death.

Say you have significant retirement assets and want a testamentary trust created under your will to serve as the "beneficiary" for the benefit of your children.

Before doing so, consult with an experienced estate planning attorney who can counsel you regarding the requisite ins and outs in terms of taxes and asset protection.

Again, congratulations on the new addition, but remember: estate planning is not a DIY project.

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?

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 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: New Jersey 101.5 (January 12, 2016) "Will another baby affect your current will?"

What Should I do Now that I Am an Unmarried Father?

Dude, just marry the girl!

While every child has a "father" (it's biology 101) by default, every child deserves to have a "dad" by design.

Statistics (and common sense) confirm that a child who grows up in a traditional two-parent household is more likely to stay out of trouble and grow up to have a better life.

All that noted, what if you do not take Uncle Kyle's advice? 

A recent article from New Jersey 101.5 provides some guidance for you in an article titled "Having a baby, but not married? Some financial advice."

The article notes that in many states the rights of unmarried couples are different than those of married couples.

When it comes to a minor child born into such circumstances, child custody issues are the same regardless whether you are married. In fact, courts make decisions based upon the "best interest of the child" standard.

What if one parent dies?

In that case the surviving parent will be the default guardian.

What if both parents die?

That can get tricky indeed, especially if neither had a will appointing a guardian (back up parent).

Do you really want a probate judge (who does not know you and the families involved) making that decision?

In addition to an unforeseen death, you also need to consider what could happen if you and your partner split up.

Did you know that the distribution of property is very different between married and unmarried couples who break up?

Well, it is.

If you are married, almost all property will be distributed equitably and alimony can be awarded.

On the other hand, when unmarried couples split up any individual property is retained by the original owner. Only jointly-owned property, like a home with both names on the deed, is divided between the parties. Further, neither party of an unmarried couple gets alimony, but this may be addressed by an unmarried couple if they sign a Cohabitation Agreement.

Also, the laws in most states treat married and unmarried couples differently if you die without a will.

When you die without a will, you are subject to the intestacy laws of your home state. This means property typically goes to a surviving spouse and surviving children before passing to parents and other relatives.

If you have a will, then you can specify who inherits your assets and how they are inherited.

This is especially important when you have a minor child.

Not so when you are unmarried. 

If you hold title to the home you share with your partner and child, then your child inherits the home ... not your partner. This can lead to further legal excitement.

Oops.

There are also federal and state estate taxes to consider.

If you are not married, planning for the tax-efficient transfer of assets at death (especially important for a high net worth unmarried couple) is tougher than planning for a married couple.

A married couple will not have any estate tax due upon the first death if the estate plan fully utilizes the unlimited marital deduction. However, this deduction does not apply to the survivor of an unmarried couple.

Plus, some states have both an estate tax and an inheritance tax. (Fortunately, this does not include Kansas or Missouri.)

What about making decisions regarding your final wishes?

If you are not married, there will be problems.

Whether the final decisions are regarding your health care, funeral or disposition of your remains, many state laws provide control to a surviving spouse.

If you are not married, then your closest surviving adult family member gets to decide these issues.

That could be a parent or your siblings.

Again, you can simply a lot of your life for yourself and your child ... if you just marry the girl.

Either way, contact an experienced estate planning attorney to help you navigate these waters whatever you decide. 

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: New Jersey 101.5 (December 28, 2015) "Having a baby, but not married? Some financial advice"

I Just Became a Parent ... How do I Appoint Backup Parents?

Congratulations. As a new parent you just embarked on the adventure of a lifetime.

Literally.

Understatement aside, there are new responsibilities attending this new arrival beyond blankets, bottles and (stuffed) bears.

Yep, you must consider and address the care and upbringing of your little one in a world without you and the other parent. What if your child were suddenly orphaned?

Oh, by the way, experts estimate the average cost of rearing a newborn to age 17 at about $250,000.

And that does not include college costs.

Yikes.

A recent Investor's Business Daily article, titled “When Couples Have Their First Baby, Advisors Deliver,” counsels young couples to consult with an estate planning attorney to address these "guardianship" responsibilities, let alone prepare related legal instruments.

I could not agree more.

Here is the problem: if you do not appoint the backup parents of your own choosing, then by default a probate judge will make the call for you.

Do you really want your crazy sister-in-law (and her sketchy current husband) rearing your kiddo ... just because she "cleans up" better than more responsible family members?

Oh, if she is appointed as guardian, then the judge likely will appoint her to manage the inheritance, too.

If these considerations are not enough to spur you to take action, then I do not know what will. 

While you are appointing a guardian and creating a "trust" to manage the inheritance according to your instructions, be sure to address your long-term disability coverage and life insurance.

For example, some otherwise responsible parents believe their employer-provided disability insurance at work would be adequate in the event of a career-killing disability. This may not be enough to keep groceries on the table.

Do I really need to say more about the absolute necessity of increasing your life insurance coverage with a new little one in the home?

[Feel free to contact me for some real life horror stories, if you need additional motivation to get with your life insurance professional without delay.]  

As advised in the original article, contact an experienced estate planning attorney to help you protect (and provide for) your family if life zigs when you expect it to sag.

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: Investor's Business Daily (September 12, 2015) “When Couples Have Their First Baby, Advisors Deliver”

Why Do I Need an Estate Plan?

Fair question. You do not need an estate plan, if you are the only human being on the planet ... without an expiration date.

Not likely odds, my friend.

Given that death is 100% on the actuarial tables of every life insurance company, not to mention plenty of anecdotal evidence in support, why do fewer than 35% of adult Americans have even a will?

According to a recent CBS Boston article, titled “Where There’s A Will There’s A Way!”, estate planning is a common personal responsibility that falls prey to procrastination.

Unfortunately, many of those who procrastinate have minor children to protect.

While most parents are keen to focus on providing for their children every day, they rarely make plans to provide for and protect those very children if orphaned.

If this sounds like you, then you need a will to appoint guardians (i.e., backup parents) for your children without delay!

Without a will you leave it up to a court to appoint someone of its choosing to fill this essential role.

Plus, when there is life insurance involved, plenty of relatives tend to come forward and offer to rear you children (and manage their inheritance). 

Not good.

Assuming you make a will to appoint the guardian of your own choosing for your minor children, what about their inheritance. How do you protect it "from" them and "for" them"?

One solution is to create a "testamentary trust" for the children as part of your will.

Naturally, you will need to designate a "trustee" to manage and distribute the trust property per your instructions.

Again, here is where procrastination rears its ugly head.

Well-meaning folks become paralyzed when selecting the guardians and trustees for their children.

However, the real challenge behind the procrastination may be facing the potential reality of a future for your children without you in it.

Bingo.

I get that, but you must move past these feelings.

So, who are likely candidates for the guardian and trustee roles?

Typically, the include an adult sibling, cousin or a friend who lives close.

You should discuss all of this with family members and friends before making it official. 

In the end, proper estate planning makes things easier for those you leave behind if something should (and will) happen to you.

Consulting an experienced estate planning attorney is the smartest move you can make. He or she can guide you through the entire process (and help you avoid land mines along the way).

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: CBS Boston (August 27, 2015) “Where There’s A Will There’s A Way!” 

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”

Estate Planning Lite - What Everyone Needs at a Minimum

My grandfather used to tell me the "the old must die ... but the young may die." If estate planning is something on your "someday" list, then may I encourage you to at least move it to your "pre-Bucket List"?

Depending on your unique circumstances, your estate plan may be complex or simple. Only a consultation with an experienced estate planning attorney can determine what ought be done.

That noted, there are certain "basics" common to everyone planning his or her estate. For starters, you need to have a plan, or the state will provide one for you.

This fact of life (and death) was recently confirmed in a post on the CBS Boston website titled “Estate Planning For All.” 

Yes, you read that correctly.

Your state has its own "default" estate laws they may decide who will inherit your assets. More significantly, if you have minor children who are orphaned, then a probate judge will even appoint a guardian (i.e., "backup parent") for them.

Is that really what you want? 

Most likely the field of candidates will come from your family tree (and that of the other parent).

Who knows the strengths, weaknesses and idiosyncrasies of your family tree better than you?

Some family members may be nuttier than a tree full of owls!

Perhaps there are some members to whom you would not entrust the rearing of your Chia Pet.

Well, you get the picture. This is not a responsibility your want to punt to a judge who does not know you or your family.

The best practice is to consult any potential guardians before your appoint them in your legal documents. Confirm their parenting style (if any, how have their own children turned out?), basic values and beliefs, and willingness to serve. 

Again, estate planning need not be crazy complicated. On the other hand, you do not want to underplan, especially when it comes to protecting an inheritance both from and for your loved ones.

A lifetime of hard work, savings and thrift can disappear into depreciating consumer goods and debauchery in very short order, if not properly protected under your inheritance plan.

The original article makes the following suggestions:

• Draft a will. Name an executor/executrix to execute your wishes and distribute your assets. Again, if you have minor children, then nominate a guardian for them and a successor or two.
• Sign a Durable Power of Attorney. This lets you to appoint an individual to act on your behalf legally and financially should you ever be incapacitated.
• Sign Advance Health Care Directives. This fundamental documents appoints someone you know and trust to make medical decisions when you are unable to make them. Be sure to have a discussion with your "agent" regarding how you feel about death, dying, and life support. Make sure he or she understands your wishes. 

I cannot stress enough that proper estate planning is not a do-it-yourself project. Contact an experienced estate planning attorney who "has been there and done that" before. 

Reference: CBS Boston (May 1, 2015) “Estate Planning For All”

Picking Back-Up Parents for Your Minor Children

If you do not have a will, then you are not alone. Some 70% of adult Americans are passengers in that same boat.

If you are single, have no children and limited resources, then I (kinda) get that.

While you still need to have basic estate planning to avoid "living probate" if you become incapacitated, you probably have no one actually depending on you for care and support.

All that changes if (or when) you have minor children.

Then, a will is an absolute must.

If you do not believe me, then check out a recent article in New Hampshire Magazine titled “Don't put off writing down your last words.”

The original article concedes that the risk of two people who share at least one child under the age of 18 dying simultaneously is quite low.

However, for too many young parents, death seems even too remote to consider. 

This can be a tragic mistake, as "lightening" can strike anyone.

Nevertheless, parents of all ages should have their affairs in order—including guardianship for minor children. 

According to the original article, you should nominate two people. That way one can serve as guardian of the children and a second as trustee over the inheritance of the children. 

I would further recommend adding back-ups to this starting lineup. In estate planning as little redundancy is a good thing.

So, who are likely candidates for these fundamental and essential responsibilities?

Some parents feel they must choose from among family members.

Not necessarily.

In many instances a close friend may be a better fit than a family member.

In addition to selecting from among family members or close friends with children at about the same age as yours ...  here are a few other things to ponder when selecting a guardian: 

Does your guardian have a similar parenting philosophy, religious, and personal values?

Do they live close to you?

Do they have children, and how will your child(ren) fit in that situation?

Is the household stable?

Is age of the guardian an issue? 

The article also advises not to exclude someone because they are not well off.

Why?

Because you can create a trust funded through assets or life insurance to ensure the day-to-day care, health care needs, and the college expenses of your children.  

Finally, when you have decided on a guardian, review your plans and expectations with them (including the trust created by your estate planning attorney) and give them some time to think about assuming this role.

As I have noted before, this is not a DIY (do-it-yourself) project. Be sure to work with an experienced estate planning attorney who has been there and done that.

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: New Hampshire Magazine (May 2015)“Don't put off writing down your last words”