Death is the elephant in the room when we talk about estate planning. We often use phrases like pass away and pass on to make our meetings feel more comfortable and avoid being overly macabre, but the not-so-subtle subtext of an estate plan is death’s inevitability. If death is the elephant in the room in estate planning discussions—the obvious issue nobody names out loud—then incapacity is what is obscured behind the elephant, sometimes so obscured that you do not even know it is there. Incapacity can happen at any age and can have many causes. An estate plan that addresses ...

You wake up and check your investments over a cup of coffee. That tech stock you have been eyeing continues to trend upward, so you log in to your online brokerage account and buy some shares. Later in the day, you get a notice that your mortgage payment has been withdrawn. Sticking to your budget, you review your monthly spending and see that you have enough saved for an extra payment that month. That afternoon, you redeem some credit card cash back points to pay for a work lunch. That evening, you schedule an estimated payment to the IRS and ...

It might be a stretch to say that if you have your health, you have everything. However, to some people, decisions about their health are arguably more personal in nature and more important to their overall well-being than financial decisions. This leads to the question of who will step in and make healthcare decisions for you if you are incapacitated (unable to make or communicate your medical wishes). You may have estate planning documents that allow someone else to manage your finances during a period of incapacity. But have you also appointed someone to step in and manage your medical ...

Most people understand that having an estate plan benefits them and their loved ones. However, many individuals do not initiate the estate planning process because they do not fully understand the nuances of foundational estate planning tools such as a will and a trust and the full implications of dying without either in place. Here are three scenarios illustrating what will generally happen when you die, whether you pass away intestate (without a will or trust), with a will, or with a revocable living trust (sometimes referred to simply as a trust). For this discussion, let’s assume you have two ...

My last blog post of each year always provides updates on any upcoming estate tax law changes for the new year.  Before we get to the facts and figures, I just wanted to take a moment to wish all of you a happy new year and to say a sincere thank you to all of my clients and centers of influence for the continued trust that they place in me. The success of Canarick & Canarick is based on the relationships we have built over the years, and we really would not be where we are without you.  In addition, I ...

Americans are known for their “work hard, play hard” mindset. On average, we work 1,789 hours per year.[1] However, even with our play-hard mentality, many of us do not stay up to see the ball drop on New Year’s Eve.[2] Less than one-third of Americans plan to either attend or host a New Year’s Eve party,[3] while more than half will spend the evening at home.[4] Whether your plans involve a night on the couch with family or celebrating into the wee hours with fellow partygoers, here are some fun New Year’s trivia questions and factoids to stimulate the mind ...

There are times, like the holiday season, that we think about and prepare for, for much of the year. However, when they arrive, we may still feel unprepared. The holidays serve as a reminder of how quickly life happens. It can also feel this way when we get the news that family is counting on us—and not just to bring the rolls to this year’s holiday dinner. Perhaps you found out that your mother’s health has deteriorated and she needs somebody to take care of her, or your father has passed and you have been named executor of his estate ...

“He’s making a list. He’s checking it twice. He’s going to find out who’s naughty and nice . . . .”[1] The estate planning process can sometimes be similar to Santa’s process. You decide who should receive your money and property (the nice people on your list) and who should not (the naughty ones). Gathering with friends and family this holiday season can serve as an important reminder for you to ensure that the right people are included in your estate plan. Reflecting on the Past, Acknowledging the Future There is a great deal on your plate this time of year. Between making lists, shopping, ...

The results from the 2024 election are in, and although we still have weeks remaining before the 119th Congress takes office and the new president is inaugurated, there is some clarity about an election that has been called the most important in our lifetime and even in US history. Each election brings about the possibility of change. Indeed, it is no exaggeration to say that the 2024 election has significant implications for estate planning due to potential proposed changes in estate taxes, capital gains, and wealth transfer regulations.  Estate Planning Issues That a New Administration and Congress Could Address According ...

According to a Centers for Disease Control and Prevention survey, there were more than 670,000 divorces[1] and more than 2 million marriages in 2022. Divorce is a common life event that many Americans face during their lifetime. Some states have laws that automatically end an ex-spouse’s appointment as decision-maker in their spouse’s estate plan with the ending of their marriage, as well as their right to any inheritance to which they may have been entitled. However, what happens if you die after you file for divorce but before it becomes final? Shannen Doherty faced this same question. In her case, ...

A special needs trust (SNT) allows an individual to provide for a disabled beneficiary without jeopardizing the beneficiary’s eligibility for needs-based government benefits. SNT funds can generally be used to pay for almost anything that falls outside the basic support that programs such as Supplemental Security Income (SSI) and Medicaid provide. This includes many goods, services, and experiences that these programs do not cover. Rules around SNTs are complicated, and a trustee’s unauthorized use of SNT funds may result in a penalty or reduction of government benefits for the trust beneficiary. How SNTs Work: First-Party versus Third-Party There are two ...

You regularly check the balances of your retirement, bank, and investment accounts. But when was the last time you checked the beneficiary designations on these accounts (and really, all the other accounts that allow you to name a beneficiary)? It may have been years since you first opened an individual retirement account, bought a life insurance policy, or started putting money into a health savings account. At the time, you named someone—most likely your spouse, if you were married, or another loved one if you were single—who will inherit the money when you pass away. However, you might have since ...

Many members of the next generation are banking on a sizable inheritance as part of an unprecedented intergenerational wealth transfer occurring in the United States right now. However, research shows a growing disconnect between how much children expect to receive and how much their parents plan on leaving them. You generally have no right to be included in your parents’ estate plan and usually cannot challenge their will or trust in court just because you think it was unfair. However, if you believe something nefarious happened, such as somebody taking advantage of a parent and convincing them to change their ...

While the term fiduciary is a legal term with a rich history, it generally means someone who is legally obligated to act in another person’s best interest. Trustees, executors, and agents are examples of fiduciaries. When you select people to fill these roles in your estate plan, you are picking one or more people to make decisions in the best interests of you and your beneficiaries and in accordance with the instructions you leave. You should also choose multiple backups for each of these roles in case your first choice is unable or unwilling to act when the time comes. ...

If you have overheard any estate planning discussions, you have likely heard the words “guardian” or “trustee.” In estate planning, deciding who will ultimately be tasked with caring for your minor child or managing funds for their benefit is an important decision that requires consideration of many factors. Although there is no substitute for you as a parent, a guardian is someone who steps in when you pass away to assume your parental role and raise your minor child through legal adulthood. Conversely, a trustee manages the financial legacy you leave behind for your minor child. As a parent, you ...