Common Estate Planning Myths Debunked

myths, Wheaton estate planning lawyerA survey conducted by the American Association of Retired Persons (AARP) shows that only about 40 percent of Americans have a will, trust, power of attorney, or other estate planning document in place. There are countless reasons that so many adults have neglected to create their estate plan. One reason is that many people do not understand the benefits that estate planning can offer them and their families. Some may only have a vague notion of what estate planning even entails and feel too overwhelmed by legal jargon to research estate planning further. Television and movies have not presented estate planning in a very positive light either. There are many myths and misunderstandings surrounding estate planning which are simply not true.

Myth: I Do Not Need to Worry About Estate Planning Until I am Older

When most people imagine someone writing a will, an image of an elderly or sick person comes to mind. The truth is that waiting until you are older to start formulating estate plans is a poor idea for several reasons. The validity of a will can be questioned if the person writing the will, called the testator, is not of sound mind due to advanced age or cognitive decline.

Secondly, estate planning does not only deal with what happens to a person’s debts and assets after they die. For example, some estate planning instruments can allow you to choose a guardian for your minor children if anything should happen to you and your children’s other parent. While it is unpleasant to think about, accidents happen every day and it is better to be safe rather than sorry.

Myth: Only Rich People Need Estate Plans

While it is true that higher value estates and estates containing complex assets require more extensive estate planning, the reality is that every adult can benefit from some type of estate planning – regardless of wealth or status. For example, many people have strong beliefs about end-of-life medical care. They do not want to be kept alive via a ventilator or feeding tube if they are in a vegetative state. Others wish to sign a “do not resuscitate” order, or a “DNR,” for personal reasons. Still others wish to dictate exactly what types of death-delaying medical treatment they consent to and what they do not want if they ever become incapacitated. Estate planning allows you to make these types of decisions in advance.

Myth: I Do Not Need to Worry About Estate Planning Because My Loved Ones Can Handle it

Losing a relative or close friend is one of the most heartbreaking life events a person can experience. When an individual does not have any estate plans to dictate what happens to their assets and debt upon passing away, this responsibility falls to their surviving loved ones. This can be a difficult burden for them to bear, especially when they have just experienced a loss. Making decisions about your healthcare and finances in advance saves your family from having to make these decisions on your behalf.

Contact a Wheaton, Illinois Estate Planning Lawyer

If you want to learn more about how estate planning can benefit you and your family, contact an experienced DuPage County estate planning attorney at Stock, Carlson, Oldfield and McGrath LLC. Schedule a confidential consultation by calling 630-665-2500 today.

Sources:

https://www.aarp.org/money/investing/info-2017/half-of-adults-do-not-have-wills.html

https://www.moneycrashers.com/legal-myths-estate-planning-wills-trusts/

Wills and Trusts – Understanding the Difference and Why It Matters

DuPage County wills and trusts lawyersIt can take decades to build wealth, so it only makes sense for guarantors to want a say over how their assets will be distributed upon their death. Wills and estate plans are valuable estate planning tools that can allow you to do just that. There are some distinct differences between these two options, however, and a variety of factors can dictate which option is most appropriate for your situation. Learn more, including how our seasoned estate planning lawyers can help protect your heirs, and your estate, immediately and long into the future. 

What is a Will? 

A will is a written document that explains how a guarantor’s assets should be distributed, upon their death. A guarantor can retract or amend a will at any point in their lifetime, and an update is recommended any time that a guarantor experiences a significant change in their situation (i.e. marriage, divorce, children, etc.). Wills can also be used to name guardians for minor children. 

What is a Living Trust? 

Living trusts are meant to designate control over a guarantor’s assets. You can name yourself, but most guarantors assign a trustee to their estate. The trustee would have the power to manage any assets to which they have been assigned, should you become incapacitated. Living trusts can also  reduce the tax-load of an estate, and it allows heirs to avoid the probate process (in most situations). Another distinct benefit of a living trust is the anonymity that it grants your heirs; under this document, your financial affairs remain a private matter. 

Which Estate Planning Tool is Right for You?

Living trusts allow guarantor’s the most control over their assets, even after death, but they are not appropriate for every situation. Often costly and typically complex, these documents are generally reserved for more complex estate planning situations. Examples include an estate with:

  • A significant tax-load; 
  • Multiple heirs;
  • Minor children that must be supported until they come of age;
  • Children, grandchildren, or other dependents with special needs;
  • Heirs who poorly manage money; and
  • Assets or property that should be maintained or held within the family.

Because no two situations are exactly alike, and the estate planning process is complex and multi-layered, it is advised that guarantors seek skilled legal guidance when determining which estate planning tools are best suited for their needs. Stock, Carlson, Oldfield & McGrath, LLC is the firm to trust. Our experienced Wheaton wills and trusts lawyers offer more than 40 years of estate planning experience. Call 630-665-2500 for your consultation. 

Source:

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2117&ChapterID=61

 

 

 

Estate Planning for College – Why Every Young Adult Needs a Will

DuPage County wills and trusts attorneyMost people assume that estate planning is only needed when you are old and nearing death or retirement. Quite the opposite is true, however. In fact, adults of all ages – even those just heading off for college – should have a comprehensive estate plan in place. Learn why, discover what estate planning documents are important, and see how an experienced estate planning attorney can help you get started.

Why Estate Planning is Important for Young Adults

Young adults may not have a lot of assets or possessions to speak of; they may not even have an income, but they still need an estate plan. The reason for this is simple: like everyone else, they still run the risk of incapacitation, should an accident or injury occur. Without the proper documents in place, parents may be unable to obtain pertinent medical information about their adult child's condition or prognosis; they may also be denied the ability to make medical decisions for their child. Parents may also be denied access to their child's financial accounts, which could endanger the student's ability to return to school or dorm.

Meeting the Estate Planning Needs of Young Adults

Estate planning is different for young adults. They do not typically need things like living trusts, special protection clauses, or transfers upon death. Instead, the focus needs to be on ensuring that the young adult has someone listed as their medical and financial proxy. Young adults are also encouraged to consider what life-saving measures they are comfortable with receiving, and when so that they can outline this in an advanced directive.

It is important to understand that the process is not necessarily easier, simply because there are fewer documents. If anything, the estate planning needs of young adults can be both confusing and complex. Expanding circles, newfound independence, and concerns over parental access to grades and other pertinent information may create special needs or requirements. Furthermore, it is important that all aspects of a young adult's life are considered, should a death over occur. Some elements can be easy to miss, especially when one considers the amount of digital information that most millennials have.

Contact Our DuPage County Wills and Trusts Lawyers

With more than 40 years of experience, Stock, Carlson, Oldfield & McGrath, LLC is the firm to trust with your estate planning needs. Regardless of your age, circumstances, or wealth, our DuPage County wills and trusts attorneys provide comprehensive and attentive services. Schedule a personalized consultation to get started. Call 630-665-2500 today.

Source:

https://www.wsj.com/articles/why-your-collegeage-children-need-an-estate-plan-1379810952