Understanding Estate Planning

Estate planning is the process of deciding and documenting what will happen to your assets after you die. Although many of us don’t realize it, an “estate” isn’t something that only the wealthy have. Quite the contrary. Even people of modest means own homes, cars, real estate and other property. They have bank accounts, investment accounts and personal possessions such as jewelry, art, coin collections, furnishings and such. These days, almost everyone also has digital assets, which Nolo defines as “any ‘electronic record’ that you own, license or control.” This includes virtually everything that you store or access online, including the following:

• Cloud storage (photos, music, online files)
• Social media accounts
• Websites and blogs
• Email accounts
• Marketplace accounts 
• Bitcoin

While many of these things have no monetary value, they are nevertheless part of the estate that you will leave behind when you die. 

In legal terms, an estate is “everything comprising the net worth of an individual, including all land and real estate, possessions, financial securities, cash and other assets that the individual owns or has a controlling interest in,” Investopedia explains. However, in the real world, even items with no or very little monetary value can be an important asset if they have sentimental value to people you love. That’s one reason why it’s very important to document in a legally drafted will how you want your possessions distributed among your beneficiaries after you die. 

Jump Ahead to

• Why Estate Planning Is Important
• Do You Need an Estate Planning Attorney?
• Creating a Will
• How to Write a Will
• Designating Beneficiaries
• What Is a Trust?
• Conclusion

Why Estate Planning Is Important

In addition to helping you decide and document what will happen to your assets when you die, estate planning offers individuals an opportunity to put together a comprehensive end-of-life plan. This includes not just creating a will, but also designating a property power of attorney to manage your assets should you become ill or incapacitated. You can also designate a healthcare power of attorney (also known as a healthcare proxy or healthcare surrogate) to make decisions about your medical care if you are unable to make them yourself. If you do not already have one, estate planning can also afford the opportunity to create an advance healthcare directive or living will, which is a document that outlines the care you do and do not wish to receive should you become incapacitated by illness and cannot speak for yourself. 

Another important goal of estate planning is to minimize the tax burden on your estate. Federal estate tax is levied only on assets that exceed a certain threshold. As of 2024, that amount is $13.61 million per individual ($27.22 million for a married couple) and includes all assets you own, including:

• Real property
• Stocks, bonds and mutual funds
• Personal retirement accounts such as a 401(k)
• Health savings accounts
• Personal property, including cars, boats and other vehicles, clothing, jewelry, household furnishings, etc. 
• Checking and savings accounts and certificates of deposit
• Ownership in a business

Additionally, some states impose an estate tax on estates valued over a specific dollar amount. As of this writing, these include: 

• Washington
• Oregon
• Minnesota
• Illinois
• Vermont
• Maine 
• Rhode Island
• Connecticut 
• New York
• Maryland
• District of Columbia

Tax rates and exclusions vary considerably between states, so check with an estate planning professional if you live in one of these states. 

By taking inventory of your assets, you can determine if you need to decrease your net worth now in order to avoid paying estate taxes when you die.You can accomplish this in a number of ways, including giving some assets to a charitable organization, or setting up an irrevocable trust. You can also gift some assets to your children or loved ones. Just make sure the amount is under the current gift-tax threshold, which is $18,000 per individual in 2024. You can also shield some assets through political contributions or paying qualified medical or educational expenses directly to a provider. 

Do You Need an Estate Planning Attorney?

Because estate planning can be complicated, it is always wise to consult a professional to help you devise an estate plan that makes the most sense for you and your family. This can be an attorney, a CPA or a financial advisor. What’s most crucial is that you hire someone who has expertise and experience in tax law, including federal and state statutes, IRS rulings and recent opinions handed down by the courts. Generally, this means that the person should have specific credentials in addition to a law or accounting degree. According to Investopedia, this may include the following designations: 

• Chartered trust and estate planner (CTEP)

A designation awarded by the Global Academy of Finance and Management, a CTEP is a financial advisor, usually for high-net-worth clients, who holds an undergraduate degree in finance, tax, accounting or financial services or an advanced degree in a related field (e.g. MS, MBA, JD) from an accredited school. They must also have a minimum of three years of experience in estate planning or trusts and be certified in at least one area of estate planning.

• Accredited estate planner (AEP)

Awarded by the National Association of Estate Planners & Councils, the designation of AEP requires that an individual have the following credentials:. 

• A law or CPA license or 
• Designated as a chartered life underwriter (CLU), chartered financial consultant (ChFC), certified financial planner (CFP), or certified trust and fiduciary advisor (CTFA)
• A minimum of five years of experience in estate planning 
• A minimum of 30 hours of continuing education during the previous 24 months, of which at least 15 hours must have been in estate planning

Additionally, professionals with less than 15 years experience in estate planning must have completed at least two graduate level courses through The American College of Financial Services.

• Certified Trust and Fiduciary (CTFA)

Also known as certified trust and financial advisor, a CFTA certification is awarded by the American Bankers Association and requires:

• At least three years experience in wealth management 
• Completion of an approved wealth management training program
• Successful completion of a certification exam and submission of an ethics statement 
• 45 hours of continuing education credit every three years.

Choosing an estate planner with one or more of these designations, helps to ensure that you receive the best, most up-to-date information and advice about planning your estate. 

Creating a Will

A will is a legal document that outlines your wishes regarding the distribution of your assets and the care of your dependents after you die. Also called a “last will and testament,” a will serves several key functions:

• It names the beneficiaries you wish to inherit your property after your death
• It names an executor — the person who will administer your estate 
• It designates guardians for your minor children and their property
• It designates a guardian for any other dependents (for example, an elderly parent)
• It provides for the care of pets

Notably, there are also a number of functions a will is not intended to fulfill. According to Nolo,  a will cannot be used to do the following:

• Transfer property that you own in joint tenancy with someone else or in “tenancy by the entirety” or “community property with right of survivorship” with a spouse
• Transfer property you have placed in a living trust 
• Bequeath the proceeds of a life insurance policy for which you have already named a beneficiary
• Bequeath money in a retirement plan such as an IRA or 401K if you named a beneficiary on paperwork filed with the account administrator 
• Transfer property held in beneficiary (transfer-on-death or TOD) form. This may include stocks, bonds, and — in some states — real estate or vehicles. These assets will automatically be transferred to the named beneficiary upon your death. 
• Bequeath money in a payable-on-death bank account

Additionally, a will cannot be used to leave a bequest that is contingent on the recipient getting married, divorced or changing their religious affiliation. Nor, despite what you may have read about the bequests of certain Hollywood celebrities, is it possible to leave money to your beloved pet in your will. Pets can’t own property, so doing so can create legal problems for your other beneficiaries. It’s a better idea to leave your pet to someone you trust and leave that person some money to care for the animal after you’re gone. 

Having a will is important for almost everyone and should be a priority for anyone of legal age (18 in most U.S. states.) Even if you don’t have many assets, a will relieves your surviving loved ones of the responsibility of trying to sort through and distribute your possessions after you die. Further, if you die without a will and you have cash assets, investment accounts or a substantial amount of property, these assets will be distributed according to the “intestate succession” laws of the state where you resided at the time of your death. Based on the 1990 Uniform Probate Code, these laws are designed to closely resemble how the state believes most people would want their assets distributed. Obviously, however, they may not reflect the actual wishes of the person who died. 

How to Write a Will

A will is the cornerstone of estate planning, so it is imperative that it is created in a way that is legally binding in your state. The surest and most “hassle-free” way to accomplish this is to hire a professional such as an attorney or CPA who specializes in estate planning. These professionals can not only help you draft your will but can also advise you on other issues, such as:

• Setting up a living trust
• Mitigating or avoiding estate taxes
• Protecting your assets from your beneficiaries’ creditors 
• Naming a durable power of attorney who will manage your financial affairs should you become incapacitated before your death

With that said, it is not absolutely necessary to hire a professional to help you draft your will, especially if you have a fairly simple estate (for example, all assets go to the surviving spouse). Some states, including California, Maine, Michigan, New Mexico and Wisconsin, offer “statutory will forms” created by the state legislature. These forms are easily accessible online and simple to use. You simply print out the form, fill in the blanks and execute the will in accordance with state law. 

Another source of form wills and other estate planning tools are “legal advice” websites such as Findlaw, Nolo, Legal Zoom, and LawDepot. These “will kits” are typically accompanied by detailed instructions and priced between $90 and $200, depending on the complexity of your estate and the type of instruments you want to create. 

Be aware, too, that there are some circumstances under which you should not draft your own will. According to AARP, these include the following situations:

• You have a large estate and/or multiple beneficiaries
• You want to disinherit a spouse
• You are concerned that someone may contest your will, claiming that you were not of sound mind or unduly influenced when you created it
  

In these circumstances, you should probably hire an estate planning professional to help draft your will. 

After you write your will, you will need to sign it in the presence of adult witnesses (usually two). Although the will itself does not need to be notarized in most states, it should be accompanied by a notarized statement known as a “self-proving affidavit” — a statement signed by your witnesses in which they swear that they saw you sign the will and that you appeared to have the mental capacity to execute it. This document, while not strictly necessary, will simplify the process of getting your will through probate after your death. (Note: Self-proving affidavits are unnecessary in California, Illinois, Indiana, Maryland and Nevada and not accepted in Ohio and the District of Columbia.)

Designating Beneficiaries

In addition to persons you designate in your will as heirs to certain parts of your estate, it is important to designate beneficiaries on all of your insurance policies and financial accounts. This typically includes life insurance policies and individual retirement accounts. It’s not unusual that these beneficiary designations fail to reflect an individual’s current life circumstances. For instance, the beneficiary on a life insurance policy purchased many years ago may still indicate that the beneficiary is an ex-spouse or a person who has since died. For this reason, it’s important to update the beneficiaries on your insurance policies and financial accounts at least 10 years and whenever you have a significant life event.  

Remember, too, that your life insurance needs may change with time. A $50,000 policy may have been adequate to provide for your spouse’s needs when you were childless and both of you were employed. But it might be completely inadequate to provide for two children and your spouse should you die while the children are still young. When considering how much insurance you will need, it’s important to take into account your family’s:

• Day to day living expenses
• Mortgage payment or rent
• Debts and other financial obligations
• Children’s educational needs

It is also important to factor in the cost of your funeral and burial. 

What Is a Trust?

According to Fidelity, a trust is a fiduciary arrangement that allows a third party (a trustee) to hold assets on behalf of a beneficiary or multiple beneficiaries. There are a number of ways to organize a trust and to spell out how assets will be distributed to the beneficiaries. One of the main benefits of a trust is that it is not subject to probate, so beneficiaries avoid the costly and time-consuming process of waiting for the courts to sign off on a person’s will. 

Trusts come in many forms, which are broken up into two main categories: revocable and irrevocable. 

• Revocable Trust

A revocable trust allows the grantor (the owner of the trust) to retain control of the trust during their lifetime. When you set up a revocable trust with yourself as trustee, you have the ability to move assets in and out of the trust at any time and to change the terms or beneficiaries of the trust if you wish. You can also designate an alternate trustee who will manage the trust in the event you become incapacitated. 

A revocable trust is not subject to probate. However, any assets held in the trust may be subject to estate taxes after you die. Furthermore, the trusts’ assets are viewed in the same way as any other asset you own while you are still alive. (e.g. subject to state and federal tax). A revocable trust typically converts to an irrevocable trust upon your death. 

• Irrevocable Trust

An irrevocable trust is an instrument that is generally used to protect your assets from estate taxes after you die. When you place assets in an irrevocable trust, you effectively remove them from your estate and hand over control to a third-party trustee. In this way  you avoid generating any tax liability from the income they earn while you are alive. You may also protect them from any legal judgments rendered against you. 

Setting up a trust can be complicated, and laws vary a great deal from one state to another. For this reason, we recommend that you contact an attorney or other estate planning professional to help you decide if a trust is right for you. 

Conclusion

The importance of estate planning cannot be understated. Estate planning is essential in ensuring that your wishes regarding the distribution of your assets and personal possessions are respected when you die. Assembling a team of professionals and implementing the right legal documents can ensure that your family is taken care of in the way you want. Estate planning should be done sooner rather than later, allowing individuals to control their own destiny and rest assured that their legacy will remain intact after they’re gone.

For additional information on estate settlement and distribution of assets, see our Comprehensive Step-by-Step Planning Guide: Settling the Estate.

Sources

“What Are “Digital Assets”?” Nolo. https://www.nolo.com/legal-encyclopedia/what-are-digital-assets.html

“Understanding Estates: Planning and Writing Your Will Effectively”. Investopedia. https://www.investopedia.com/terms/e/estate.asp

“Power of Attorney of Property: Definition, Use, and Application”. Investopedia. https://www.investopedia.com/terms/p/powerofattorneyproperty.asp

“Types of trusts: Choosing the right one for you”. U.S. Bank Wealth Management. https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/types-of-trusts-which-should-i-choose.html

“Certifications for Estate Planning”. Investopedia. https://www.investopedia.com/articles/financialcareers/09/estate-planning-certifications.asp

“Chartered Life Underwriter: Key Benefits and Qualifications”. Investopedia. https://www.investopedia.com/terms/c/clu.asp

“Chartered Financial Consultant (ChFC): Comprehensive Guide and Benefits”. Investopedia. https://www.investopedia.com/terms/c/chartered-financial-consultant-chfc.asp

“What Is a Certified Financial Planner (CFP)?” Investopedia. https://www.investopedia.com/terms/c/cfp.asp

“What Is a Will?” Nolo. https://www.nolo.com/legal-encyclopedia/what-is-will.html

“What a Will Won’t Do”. Nolo. https://www.nolo.com/legal-encyclopedia/what-will-wont-do-29767.html

“Property Titles: Tenants by the Entirety”. The Balance. https://www.thebalancemoney.com/tenants-by-the-entirety-3505608

“What’s the Difference Between Joint Tenancy and Community Property?” Amity Law Group. https://www.edmundvincentlaw.com/blog/difference-between-joint-tenancy-and-community-property-estate-planning

“Transfer on Death Deed: What It Is and How It Works”. LegalZoom. https://www.legalzoom.com/articles/understanding-the-transfer-on-death-deed

“Uniform Probate Code”. Cornell Law School. https://www.law.cornell.edu/uniform/probate

“Understanding Intestacy: If You Die Without an Estate Plan”. FindLaw. https://www.findlaw.com/forms/resources/estate-planning/die-without-estate-plan.html

“What is a Durable Power of Attorney, and How does it Work?” LegalZoom. https://www.legalzoom.com/articles/what-is-a-durable-power-of-attorney

“Self-Proving Affidavits”. Nolo. https://www.nolo.com/legal-encyclopedia/self-proving-affidavits.html

“What Is a Trust?” Fidelity. https://www.fidelity.com/life-events/estate-planning/trusts

The average cost for estate planning typically ranges from $1000 to $5000, but some experienced lawyers charge up to $700 per hour when developing complex estate plans. Cost often varies depending on the complexity of the plan and the services that are required to create the appropriate plan to meet the individual’s unique needs. Additionally, a variety of estate planning fees can influence the total amount paid. 

Estate attorneys have different methods of pricing their services, so initial quotes and estimates will vary. Understanding these pricing systems and anticipated fees makes it easier to determine which attorney’s services will address all of the core components of the estate plan while remaining within budget. Many attorneys offer flat fees, which are specific amounts that cover the preparation of important documents in the plan, such as a power of attorney. If opting to work with an attorney using a flat fee, it’s important to clarify which services and documents are covered by the fee, since some attorneys may offer add-on services or other components for a complete estate plan. 

Attorneys who do not work based on flat fees may offer hourly rates instead, which is common when working with particularly complex estate plans. Hourly rates may vary depending on the complexity of the plan or even the specialized knowledge of the estate attorney who is providing the service. It is also important to note that the final cost of any estate planning services may fluctuate if there are unexpected concerns or additional tasks that need to be addressed during the planning process. A general best practice is to schedule an initial consultation with potential estate attorneys to learn more about all of the potential additional fees that may be included to achieve a finalized plan. 

While estate planning can easily become costly under some circumstances, it is an important investment in the future management of assets and making provisions for those who are listed as beneficiaries. Additionally, although there are numerous do-it-yourself services and kits available for estate planning, these typically are not able to accommodate complex or unique needs. For best results, individuals are encouraged to work with a reputable estate attorney who can provide professional legal advice and guidance regarding all aspects of the planning process. 

Sources

“What is the Average Estate Planning Cost?” Rilus Law. https://www.riluslaw.com/blog/what-is-the-average-estate-planning-cost 

“Breakdown of Estate Planning Costs”. SmartAsset. https://smartasset.com/estate-planning/estate-planning-costs 

The average cost for setting up a trust with an attorney ranges around $1,500 to $2,500. The cost can vary based on a variety of factors, such as the state you reside in, your marital status, and the overall complexity of the trust. You might also pay additional fees for the time spent consulting with the probate or estate planning lawyer, along with drafting and filing the documents that will transfer your assets and property into the trust. These fees can cost anywhere from hundreds to thousands of dollars, so it’s a good idea to get a general estimate of potential expenses when meeting with your lawyer. 

If you decide to set up your trust on your own using a digital service, it may only cost around $100 to $250. Although this is noticeably cheaper in comparison to working with a lawyer, it may not be an ideal solution for complex needs or if there are aspects of your estate that are unclear. Setting up your own trust is generally not recommended if any of the following apply:

• You may owe estate taxes
• You owe large amounts of debt 
• There may be family conflict over your estate 
• You want to place conditions based on different assets
• You don’t know who to name as your successor trustee 
• You own property in or live in another country
• You aren’t certain of what assets you own 

If any of the above criteria might be relevant to your trust, it’s best to hire an estate planning lawyer instead of pursuing the do-it-yourself approach. Additionally, you should be aware that the cost of a trust can also be influenced by where you currently reside. Estate planning lawyers may charge more if you live in a metropolitan area in comparison to a less populated location. Different jurisdictions also have different requirements for setting up a trust, which means trusts created in some states may incur additional fees.

Sources

“How Much Does It Cost to Set Up a Trust?” SmartAsset. https://smartasset.com/estate-planning/how-much-does-it-cost-to-set-up-a-trust 

“Making a Living Trust: Can You Do It Yourself?” NOLO. https://www.nolo.com/legal-encyclopedia/making-living-trust-yourself-29736.html 

The average cost of hiring an attorney to create a will typically ranges from $300 to $1,500. This can vary depending on where you live, the complexity of your estate, and whether your attorney charges a flat or hourly fee. If the attorney charges a flat fee, it will typically fall within the average range listed here. However, if the attorney charges an hourly fee, that may range from $100 to $400. In that case, the costs of creating your will can quickly accumulate if additional time is needed based on the complexity of your estate. 

In some instances, working with an attorney to create your will can cost as much as $8,000 if you have a particularly complicated estate or have many questions regarding your property and assets. If you reside in a major city, attorneys will have higher fees than those operating out of suburban or rural locations. For example, while an attorney in a rural area might be willing to charge $100 an hour, an attorney in a major city will likely charge up to $400. Additionally, hiring an attorney who specializes solely in estate planning will be more expensive than hiring an attorney who is more of a generalist. 

Although hiring an attorney to create your will may seem expensive, balancing the costs against the potential consequences of having an incorrectly drafted will or not having a will at all is crucial. If you do not have a will, state law will determine how your assets are distributed, which may not align with your wishes. If your will is drafted incorrectly because you bypassed an attorney, it can be costly to make corrections later by drafting additional legal documents. A professionally drafted will reduces the risks of disputes among family members and facilitates a smooth transfer of your assets following your death. Ultimately, consulting with an experienced attorney will help you better understand the costs of drafting your will and tailoring it to your needs. 

Sources

“How much does a will cost? 6 options and their prices”. FreeWill. https://www.freewill.com/learn/cost-of-a-will 

“How much does it cost to make a will? Average cost of a will in 2025”. Business Insider. https://www.businessinsider.com/personal-finance/investing/how-much-does-it-cost-to-make-a-will 

“How much does it cost to make a will?” Thumbtack. https://www.thumbtack.com/p/will-creation-cost 

“What’s the Average Cost of Making a Will?” Investopedia. https://www.investopedia.com/ask/answers/033116/what-average-cost-making-will.asp 

As the principal, as long as you have the capacity to make decisions, you can revoke your power of attorney at any time. A power of attorney can be revoked by preparing a new power of attorney, signing a Notice of Revocation, or destroying all of the copies of the previous power of attorney if they have not been distributed to the agent. Whether a Notice of Revocation or a new power of attorney should be prepared depends on the legal requirements in your state.  

Reasons you might consider revoking a power of attorney can include: 

• The incapacity or death of the agent
• Lack of agent availability 
• Per the request of the agent 
• Relationship changes, such as marriage or divorce
• The signed power of attorney document is lost 
• Moving to another state 
• Changing the terms 

A Notice of Revocation must be signed, dated and notarized. While witnessing is not typically required, it is recommended for individuals who are concerned about being challenged regarding their mental competence at the time of revocation. Notice of Revocation forms can be recorded or unrecorded, and the type of form used depends on whether the original power of attorney was recorded. If the original document was not recorded, you have the option of recording the Notice of Revocation form to prevent your former agent from taking action without proper authorization. 

Once the Notice of Revocation is signed, copies must be provided to your former agent and any person or entity that may have interacted with that agent in the past or may potentially interact with them in the future. All parties must receive a copy of the Notice of Revocation in order for the revocation to be effective. The purpose of this notification is to prevent any potential transactions from occurring between your former agent and other people or entities. This is particularly important since it is possible that you may be held liable for actions taken by your former agent despite your efforts to revoke the power of attorney. 

Individuals who are considering revoking their power of attorney are encouraged to consult with an attorney to ensure all necessary legal precautions and requirements are met. While there are programs and services that enable individuals to revoke a power of attorney on their own, it is highly advisable to work with a legal professional to ensure that the process is completed correctly. In working with a legal professional, you can also have the assurance that if your power of attorney or capacity is ever questioned, you have the appropriate representation to defend your rights. 

Sources 

“Revoking Your Durable Power of Attorney for Finances”. Quicken. https://www.willmaker.com/legal-manual/durable-powers-of-attorney-for-finances/revoking-your-durable-power-of-attorney-for-finances.html 

“How to Revoke a Power of Attorney”. Just Great Lawyers. https://www.justgreatlawyers.com/legal-guides/how-to-revoke-a-power-of-attorney 

A guardianship is a legal arrangement for an individual to make decisions on behalf of someone else. The guardian is appointed by a court and is tasked with responsibly managing various affairs of the ward, also known as the “protected person,” who is unable to make decisions for themselves. The ward may be a child or an incapacitated adult. A guardianship may be temporary (including during emergencies) or permanent, and can be limited in scope depending on the type granted, i.e., managing only a ward’s medical decisions or only their finances. In some states, guardianship may be known as a conservatorship (there is no standard legal definition for either).

Reasons for Guardianship

For children, a court may appoint a guardian if there is no parent to care for the child. In some cases, parents may name a guardian in their will to plan for childcare in the event of the parents’ untimely death. 

When an adult cannot make sound decisions — whether due to mental illness, deficiency or decline; mental or physical incapacitation; or disease — a court may appoint a guardian. 

Types of Guardianship

There are several different types of guardianship that may vary by state. The most common ones are: 

• Guardian of the Person: A more limited guardianship, excluding financial matters. The guardian is responsible for managing the ward’s daily welfare, including providing proper care, basic needs and necessities; making decisions about medical care; providing for special needs; and protecting from harm. 
  
  
• Guardian of the Estate (or Property): Tasked with managing the ward’s financial matters, the guardian oversees income, assets, property and spending. The guardian must file an annual report with the court detailing their management of the estate. If a financial power of attorney exists, a Guardian of the Estate is generally unnecessary. 
  
  
• Guardian of the Person and Property: A full guardianship in which the guardian manages the estate and the daily well-being of the ward.
  
  
• Guardian ad litem: When a ward cannot come to court or protect their interests in a court case, a judge can appoint a guardian to act on a ward’s behalf until the matter is resolved.

Guardianship account 

When a person is deemed unable to manage their finances (whether a minor or an adult), the court may order a guardian to oversee a ward’s financial assets by placing them into a guardianship account. The guardian is responsible for managing the account according to the ward’s best interest, often with specific instructions from the court, and must ensure that any income from investments or other sources is used for the ward’s benefit. The appointing court monitors the management of the guardianship account to confirm that funds are used appropriately. 

Sources 

“Purpose and Types of Guardianship”. Family Law Self-Help Center. https://www.familylawselfhelpcenter.org/self-help/guardianship/overview/purpose-and-types-of-a-guardianship 

“Conservatorship vs. Guardianship”. Legal Zoom. https://www.legalzoom.com/articles/conservatorship-vs-guardianship 

“Types of Guardianship & What Will Work for You”. Legal Shield. https://www.legalshield.com/blog/different-types-guardianship 

“Guardianship Basics”. New York State Unified Court System. https://nycourts.gov/courthelp/Guardianship/basics.shtml 

It is generally advisable to have a financial power of attorney in addition to a trust or will. A financial power of attorney is a legal document that designates a trusted individual to make financial decisions on your behalf if you are incapacitated or unable to manage them on your own while you are still alive. In contrast, a trust or will is a legal document that addresses the distribution of your assets after your death. These documents should be used together to ensure that your assets are protected in life and after you die.

Examples of situations where it would be beneficial to have a financial power of attorney in place can include severe illness, injury or changes in decision-making capacity due to aging. In these circumstances, having a financial power of attorney means that your designated agent will be able to pay bills, manage your finances and make other important financial decisions on your behalf in alignment with your preferences. If you do not have a financial power of attorney, your loved ones might have to take legal action to manage your assets. 

Since a financial power of attorney is only applicable while you are alive, your designated agent will not be able to make financial decisions or manage your finances after your death. This is another reason why a will or trust becomes necessary, since these legal documents ensure that your finances and assets can continue to be managed by someone you trust. By filing all three of these documents, you can form a comprehensive estate plan that will provide both you and your loved ones with peace of mind. 

Sources

“How Do a Last Will and Power of Attorney Work Together?” Legal Zoom. https://www.legalzoom.com/articles/how-do-a-last-will-and-power-of-attorney-work-together 

“Financial Power of Attorney: Definition, Required Forms, and Example”. Investopedia. https://www.investopedia.com/terms/f/financial-power-attorney.asp 

A financial power of attorney (FPOA) is a legal document allowing someone to appoint another person, such as a trusted family member or friend, to make decisions regarding finances and other assets on their behalf. Hiring a lawyer to draft an FPOA is unnecessary, and many states have simple forms that can be filled out online to create the document. It becomes legally binding after the form is signed, witnessed and notarized.

The scope of an FPOA can be broad or very specific. It can be used when someone cannot manage their affairs due to illness, geographical distance or incapacity. The person who grants authority is known as the principal, while the person who receives authority is known as the agent or attorney-in-fact. In certain states, a financial power of attorney is also automatically a durable power of attorney (DPOA), which means it remains in effect if the agent becomes incapacitated.

The financial power of attorney enables the appointed person — who is legally required to act in the principal’s best interest — to manage their assets, investments or other accounts as defined in the agreement. This may include paying bills, making deposits or withdrawals from accounts, collecting insurance payments, managing investments and trust accounts, making gifts or other transfers, and engaging in other financial activities.

If you appoint someone as financial power of attorney, choose someone you trust to manage your finances responsibly. This could be a family member, friend or professional such as an attorney or financial advisor. You can also name more than one person to manage different aspects of your finances.

Once you choose your agent and are ready to create the FPOA, there are a few key points to keep in mind:

1. Learn about your state’s requirements and if there are state-specific documents you should use. It’s also prudent to see if your financial institution has preferred forms.
2. Put your FPOA in writing, sign it and have it witnessed and notarized. It’s not usually necessary to file the document with a particular agency. Still, it is a good idea to share a copy with the named agent and friends or family members you want to be aware of the arrangement.
3. It’s a good idea to review the FPOA periodically to confirm everything outlined is still suitable.

With a carefully drafted financial power of attorney in place, you can have peace of mind that your finances are being taken care of even if you’re unable to do so yourself.

Sources 

“Financial Power of Attorney: Definition, Required Forms, and Example”. Investopedia. https://www.investopedia.com/terms/f/financial-power-attorney.asp 

“5 Things You Didn’t Know about Financial Power of Attorney”. Trust & Will. https://trustandwill.com/learn/financial-power-of-attorney 

A will can’t override an existing trust and cannot be used to manage assets already held in a trust. Assets placed in a trust belong to the trust rather than the estate of the person who died, which means they do not have to meet the terms indicated in a will. The terms of the will are only applicable to assets that remain in the estate. Assets in a trust are legally owned by the trust and are not impacted by the terms of the will. It is important to note that someone can indicate in their will that they would like certain assets from their estate to be transferred into a trust, whether the trust already exists or a new trust needs to be established. 

Although wills and trusts are generally used together in estate planning, it is possible for them to conflict in certain circumstances. When conflicts exist between a will and a trust, the instructions in the trust will prevail over the will. For example, suppose the will indicates that the person who died wishes property such as the family home to be distributed to specific relatives or loved ones. If that same property is included in the trust, the property would be distributed according to the instructions of the trust since it would be a legally owned asset of the trust rather than belonging to the estate. 

Wills and trusts are not intended to supersede each other. Individuals who are in the process of estate planning are encouraged to work with experienced professionals to avoid any potential legal conflicts. Working with an established estate planning lawyer will ensure that trust, will and other important documents are formulated in a consistent manner that will reduce the risk of conflict. 

Sources

“Does a Will Override a Trust?” SmartAsset. https://smartasset.com/estate-planning/does-a-will-override-a-trust 

“What Happens When a Will and a Revocable Trust Conflict?” Investopedia. https://www.investopedia.com/ask/answers/060915/what-happens-when-will-and-revocable-trust-conflict.asp 

A trust can be challenged or contested if someone has legal standing and a valid reason. Individuals are considered to have legal standing if they are directly affected by the execution of the trust. This means that individuals such as trust beneficiaries or successor trustees can potentially contest a trust. If the individual who created the trust, known as the trust grantor, has any heirs who were not included in the trust, they may also be eligible to contest the trust in court. 

If an individual has legal standing, they can only move forward with contesting the trust if they have a valid reason. They cannot contest the trust due to being displeased with elements such as selected beneficiaries or the distribution of assets. Some examples of valid reasons for contesting a trust can include: 

• If the trust was created by coercion or undue influence
• If the grantor was not mentally sound when the trust was made or changed 
• If the trust documents were forged by another individual 
• If the trustee is misusing trust assets 

Contesting a trust is subject to time limitations, which vary by state. For instance, under California law, beneficiaries must contest within 120 days of receiving notification of their inheritance. Similar practices are observed in other states, although some jurisdictions allow several years for trust contestation. 

If you’re considering contesting a trust, it is highly recommended to seek guidance from experienced legal counsel. They can help you understand the terms and restrictions of the trust in your state and navigate any potential complexities in trust litigation.

Sources

“Can a Trust Be Contested?” SmartAsset. https://smartasset.com/estate-planning/can-a-trust-be-contested 

“The 16061.7 Code: A Guide to Trust Beneficiary Notices in California”. Clear Estate. https://www.clearestate.com/en-us/blog/beneficiary-trust-notice-california 

After you have created a trust, the next step is to fund the trust, or legally transfer all of the assets to the trust. Depending on what kinds of assets are going into the trust, this is usually accomplished in one of several ways. 

Note: These are general guidelines for transferring personal property, not business interests, which are subject to different rules. Always consult with your attorney to discuss your specific situation and address any questions you may have.

Personal property without deeds or titles

Personal property in this category can be transferred to the trust by simply creating a general transfer document that says the assets are now the property of the trust. The document can list the assets in broad categories (furniture, jewelry, clothing, etc.) rather than listing each item separately. With that being said, if you are transferring property that is particularly valuable or unique (for example, an heirloom piece of jewelry or a work of art), it’s a good idea to list those items separately. When the document is complete, sign it and keep it with the other trust records. 

Bank accounts and other financial accounts

To transfer financial assets from your name to the trust, you will need to provide the financial institution with certain documents, which it will supply. They may also ask for a 

“Certificate of Trust” form to provide details about the trust or, in some cases, a complete copy of the trust documents. You will also need to request that the accounts be titled in the name of the trust. Usually, the account numbers will stay the same, but some banks may assign new account numbers when the accounts are titled in the name of the trust.  

Real estate

Transferring real estate is a little more complicated than transferring personal property because it involves transferring ownership with a deed. The process also differs from state to state, and each county may have different requirements. Thus, your first step should be to contact your County Recorder to learn exactly what you need to do. They may be able to provide you with a blank deed template or tell you how to format the deed. 

Once you have created a deed transferring ownership to the trustee of the trust, you will also need to record the deed in accordance with the requirements of the county where you live. This will probably include filling out certain forms, including a document that identifies the beneficiaries of the trust. You can typically record the deed in person or submit the original through the mail. 

Life insurance policies

As a rule, the ownership of any life insurance policies does not need to be transferred to the trustee of the trust. However, you may want to give some thought as to whether to designate the trust (versus individuals) as the beneficiaries. This may be useful if the current beneficiaries are young children and you want the proceeds protected by the terms of the trust. 

Sources

“How to Fund a Trust: A Step-By-Step Guide”. Trust & Will. https://trustandwill.com/learn/how-to-fund-a-trust

An “AB” trust can help reduce exposure to estate taxes for married couples with joint trusts. Under an AB trust, the estate’s assets are allocated to two separate trusts upon the death of a spouse. The first trust, sometimes referred to as the “A trust” or the “survivor’s trust,” remains revocable, and the assets are controlled by the surviving spouse. The second trust, sometimes referred to as the “B trust,” “decedent’s trust,” “bypass trust” or “credit shelter trust,” becomes irrevocable after the death of the first spouse.

The assets of the B trust typically can be used by the surviving spouse during his or her lifetime. However, sometimes the B trust only benefits other people, such as the children from the first marriage, rather than the spouse of the second marriage. After the surviving spouse dies, the assets of the B trust are then distributed to third-party beneficiaries, such as the couple’s children. 

The assets of the bypass trust are not considered part of the surviving spouse’s estate. They pass to the third-party beneficiaries free of estate tax by using the estate tax exemption of the first spouse. 

Keep in mind, however, that a large portion of your assets may not be subject to estate taxes at all. As of 2020, only assets in excess of $11.58 million were taxable by the federal government, and that amount increased to $11.7 million in 2021. (Double those amounts for married couples.) The tax rate for amounts above that threshold is as high as 40%, but that number only applies to very large estates. 

Additionally, most states don’t levy an estate tax, although those that do have much lower thresholds than the IRS. Before investing the time and money to set up an AB trust, you may want to consider speaking with a tax professional to determine exactly what your exposure may be. 

Sources

“A-B Trust: Definition, How It Works, and Tax Benefits”. Investopedia. https://www.investopedia.com/terms/a/a-b-trust.asp 

“Joint Trusts or Separate Trusts: Advice for Married Couples”. Kiplinger. https://www.kiplinger.com/retirement/estate-planning/601782/joint-trusts-or-separate-trusts-advice-for-married-couples 

“Estate Tax: Definition, Tax Rates and Who Pays”. NerdWallet. https://www.nerdwallet.com/article/taxes/estate-tax

Whether you need a trust or not depends on what assets you own, the total size of your “probate” estate, state law and the unique circumstances of your family. A trust can be beneficial for people in a variety of situations. You should at least consider setting up a living trust under any of the following circumstances:

• You have minor children
• You own real property (a house, a condo, land)
• You have accounts over $50,000 or $100,000 (depending on what triggers a probate in your state)
• You are in a state where the probate process is particularly complex or time-consuming
• You and your spouse have total assets (including proceeds of life insurance) over $2 million
• You have family or beneficiaries on public benefits or with creditor problems
• You want to protect the assets inherited by your children or beneficiaries from their current or future spouses or future lawsuits

Keep in mind, however, that if your main reason for setting up a revocable living trust is to avoid probate, you may be able to accomplish the same end without the time and expense of setting up a trust. For instance, any asset that has a named beneficiary, such as a retirement account or insurance policy, is exempt from probate, so some of your assets may be shielded in that way. Real estate can be titled in joint tenancy, so that ownership automatically transfers to the surviving owner upon your death — no probate involved. You can also set up a payable upon death account, which will be paid out to the named beneficiary upon your death. 

Living trusts have become quite fashionable in recent years, and for some people, they make a great deal of sense. However, they should always be created with the help of an attorney, which can be a rather steep expense (from $500 to several thousand dollars or more, according to AARP). With that being said, most attorneys offer a 30-minute consultation at low or no cost. So it may be worth consulting a lawyer who specializes in wills and trusts to find out whether or not a living trust makes sense for you.

Sources

“What Is Joint Tenancy in Property Ownership?” Investopedia. https://www.investopedia.com/terms/j/joint-tenancy.asp 

“The Pros and Cons of Living Trusts”. AARP. https://www.aarp.org/money/retirement/living-trust-uses/

A living trust is an agreement, set up and in effect while you are still alive, where you (the grantor or settlor) give property to a trust to be managed by a trustee. It also names beneficiaries who will receive the assets of the trust after the grantor’s death. 

Any kind of property may be placed in a living trust, including the following:

• Real estate
• Vehicles
• Investment property
• Bank accounts
• Digital assets such as intellectual property or Bitcoin

Irrevocable versus revocable living trust

There are two types of living trusts: revocable and irrevocable. By far the most common is the revocable living trust, in which the grantor has the ability to designate themselves as the trustee and retain control of the assets placed in the trust. They also retain the right to make changes to the trust — for example, by moving assets in or out of the trust or by changing beneficiaries. Importantly, when the grantor appoints themselves as trustee, the assets of the trust remain part of that person’s estate, and may be subject to estate taxes if their value exceeds the exemption allowed by the IRS. Any income earned by the trust must also be reported on the grantor’s tax return. 

In the event that the grantor of a revocable living trust becomes incapacitated, a successor trustee whom the grantor names would take over and administer the trust assets while the grantor is still alive. After their death, the successor trustee would then distribute the trust assets to the trust beneficiaries. 

An irrevocable living trust, on the other hand, is a trust that is legally owned and controlled by the trustee. The grantor relinquishes most of their rights to control the trust and cannot make changes once the trust agreement is signed. Because the grantor has no control over the trust assets, they are not subject to estate taxes when that person dies.

One benefit of a living trust is that property held in the trust at the time of the grantor’s death is not subject to probate, so a living trust may save the beneficiaries thousands of dollars in legal expenses and more quickly expedite the distribution of assets. A living trust will not, however, shield assets from creditors except in some cases of an irrevocable trust. However, setting up such a trust must be done very carefully to comply with tax regulations and laws against fraudulent conveyances (e.g., laws that prevent debtors from defrauding creditors). If you have questions about setting up creditor-protected trusts, please consult with an attorney.

Sources 

“What Is a Living Trust?” Investopedia. https://www.investopedia.com/terms/l/living-trust.asp

If a person was a member of a labor or trade union they may have had a pension or annuity plan in preparation for retirement. In the event the person dies, named beneficiaries such as a spouse or dependent child may receive financial assistance from union death benefits. This can include ongoing monthly payments known as survivor benefits or a lump-sum payment. The benefit amount tends to vary based on the union and the employment status of the person who died, such as if they were already retired or working part-time or full-time. 

Some unions extend these death benefits to burial and funeral benefits. Union partnerships with specific funeral homes can provide surviving beneficiaries with more affordable pricing and special services accessible only to union members. If the person died in a work-related accident, some unions also cover burial expenses. Since death benefits vary among different unions, the best practice is to contact the union’s local chapter where the person who died maintained membership and ask for assistance in claiming benefits. 

Ultimately, union death benefits are a source of financial and practical support for the family of the person who died. These benefits provide monetary support for honoring the legacy of the person who died and can provide ongoing support in the care of the surviving family. Gaining more insight into which death benefits are available and how to claim them can ensure that responsibilities like making final arrangements or covering general costs are less stressful to manage after the loss. 

Sources

“Claiming Pesions, Veterans, and Other Benefits: Information for Executors and Beneficiaries.” Nolo. https://www.nolo.com/legal-encyclopedia/claiming-pensions-veterans-other-benefits-32435.html 

“Union Benefits for Survivors.” Empathy. https://www.empathy.com/benefits/union-benefits-for-survivors 

Gifts in a will are known as bequests, and there are four different types. When someone is named as a beneficiary, the assets that are distributed to them are categorized into one of these four types of bequests. They include:

• Specific bequests 
• General bequests
• Demonstrative bequests 
• Residuary bequests 

When a bequest names a specific asset and the beneficiary who should receive that asset, it is known as a specific bequest. This type of gift might range from a cherished personal item or even a house. It is becoming increasingly common for digital assets to be named. The person who died, known as the testator, can generally name whatever they want in a specific bequest as long as they own the asset. 

General bequests are most frequently monetary gifts such as cash, but could include cryptocurrency. The testator may choose to give a specific amount of money to a beneficiary, but may not be specific enough to the source account where the funds are located. This means that the money can be taken from different sources in the estate as long as the indicated amount is provided to the beneficiary. 

When the source of the money is indicated, it is considered a demonstrative bequest. For example, if the testator indicates that the sum of money should be retrieved from a specific checking account or cryptocurrency wallet, this would be a demonstrative bequest. The testator may also indicate that certain assets can be sold and the proceeds from those sales can be used to pay the designated amount to their beneficiary. 

Sometimes the testator might indicate that specific beneficiaries can receive whatever assets remain after all debts, expenses and gifts have been paid and distributed. This is considered a residuary bequest and means that those named beneficiaries receive any assets that are not already accounted for in other bequests. In some states, any specific gifts that were intended for named beneficiaries will be moved to residuary beneficiaries if the original beneficiaries die before the testator. However, state laws regarding residuary bequests can vary, so it’s important to check what is applicable where the testator resides. 

There is a wide variety of assets that can be distributed to beneficiaries and designated as each of these gift types. Each type of gift in a will has a specific purpose and clarifies how the associated assets should be distributed to the beneficiaries. Understanding the differences between these types of gifts ensures that those who are navigating estate planning can accurately communicate their last wishes to their intended beneficiaries through their will. 

Sources

“Gifts in a Will: Early Inheritance & Gift Tax in Canada”. Willful. https://www.willful.co/learn/all-about-specific-gifts 

“Personal Gifts In a Will”. Legal Match. https://www.legalmatch.com/law-library/article/personal-gifts-in-a-will.html 

“Types of Gifts In a Will”. Empathy. https://www.empathy.com/will/types-of-gifts-in-a-will 

A legal minor typically should not be named as a beneficiary in a will or other legal documents as the sole method of ensuring the distribution of assets. However, every state has its own estate and property laws, and the definition of a legal minor varies between states. By definition, legal minors are children who are unable to handle legal matters or enter into contracts since they have not reached the age of majority (typically 18 -21 years). Due to these limitations, legal minors cannot receive assets through legal documents or contracts except through trusts. 

The best way to ensure that legal minors receive assets is to name them as beneficiaries in a trust. Legal minors can be listed as beneficiaries on a trust, but not in legally enforceable documents such as wills, because trustees manage all of the assets in the trust and distribute them according to the terms of the trust. Also, trustees handle these distributions on behalf of the beneficiaries named in the trust. This means the trust’s beneficiaries never participate in financial or contractual transactions. 

Although it is possible to list a legal minor as a beneficiary for some estate planning components, such as life insurance, this does not mean the minor will receive the assets or benefits following the parent or guardian’s death. A legal minor listed as a beneficiary in these contexts will typically have an adult custodian responsible for managing the assets until the minor has reached the age of majority. Thus, a legal minor will not receive any proceeds unless they have attained the age of majority by the time the death has occurred and the will has been filed for probate. 

While most experts recommend transferring assets to minor children through a trust, every situation is different, and additional considerations may need to be addressed. It is highly encouraged to work closely with a legal professional to ensure all estate planning components are complete. Additionally, working with legal professionals specializing in estate planning will guarantee that the guidance and actions taken are specific to the estate’s circumstances, which is especially helpful for those with extensive assets or who need assistance navigating complex arrangements. 

Sources

“Can a Minor Be a Beneficiary?” SmartAsset. https://smartasset.com/estate-planning/can-a-minor-be-a-beneficiary 

“Beneficiary Strategies: Your Children”. Fidelity. https://www.fidelity.com/life-events/estate-planning/beneficiary-strategies/child 

“Can a Minor Be a Life Insurance Beneficiary?” Aflac. https://www.aflac.com/resources/life-insurance/can-a-minor-be-a-life-insurance-beneficiary.aspx 

In estate planning, an executor is responsible for ensuring that the last wishes of the person who died are carried out according to the terms listed in their will. The executor is responsible for handling the responsibilities associated with the estate, including the probate process, and managing the distribution of assets. Sometimes, an executor may also be referred to as a personal representative.

The role of the executor comes with many responsibilities and expectations, so it is important to appoint a trusted individual to fulfill these duties. Some of the responsibilities associated with being an executor can include:

• Accounting for all assets 
• Gathering and organizing important documents
• Taking inventory and evaluating assets 
• Determining if probate is necessary 
• Filing the petition with the probate court
• Managing assets during the probate process
• Ensuring outstanding taxes and debts are paid 
• Contacting government agencies 
• Handling disputes
• Publishing an official notice to creditors 
• Distributing assets to beneficiaries
• Closing the estate 

Individuals typically become executors in one of two ways. It is common for the person who died to name an executor in their will. If someone dies and they don’t have a will or their will is invalid, the probate court may name someone to become the executor. Additionally, if the person who died has named an executor, the court has the power to override the current executor and name someone else. This can only be done if the named executor meets any of the following criteria: 

• Previous criminal history 
• Mental illness 
• Substance use 
• Considered a legal minor 

Ultimately, the executor’s role is crucial in managing the estate of the person who died. Due to the volume of expectations and the importance of this role, it is vital to select an individual who is trustworthy and has the time to focus on assuming all of the responsibilities. Whether seeking to select an executor or learning how to navigate the tasks associated with the role, working closely with a legal professional for guidance is highly recommended. 

Sources

“Executor of Estate: What Do They Do?” Forbes. https://www.forbes.com/advisor/mortgages/real-estate/executor-of-estate/ 

“What Are the Full Responsibilities of a Personal Representative?” Bogin, Munns, & Munns. https://www.boginmunns.com/faq/what-is-the-role-of-an-executor-in-estate-planning 

You can plan for what happens to your digital assets when you die by completing several steps, including:

• Take an inventory of your current digital assets
• Review the terms of service
• Secure and backup digital assets using the appropriate storage method
• Provide your consent in legal documents so your beneficiaries can access these assets 

The regulations and laws surrounding certain types of digital assets are still relatively new, so it is important to remember to revisit your plans consistently in case any changes are needed. 

The first step in planning for your digital assets is to take inventory of all of the digital assets that you currently own. This includes accounts, contact lists, collections, websites and more. It is essential to list all of your digital assets on this list since your beneficiary may not be aware of anything that isn’t on the list. As you add assets to the list, you should also note any login details you need to share with the beneficiary. Potential digital assets that you may want to list can include: 

• Email accounts
• Social media accounts
• Online bank accounts
• Credit card accounts
• Photo and video storage accounts
• Utility accounts 
• Charity or non-profit organization accounts
• Subscription services 
• Contact lists 
• Cryptocurrency keys and associated digital wallets
• Digital collections for assets such as NFTs
• Cloud data 
• Websites 
• Domain names 
• Blogs 
• Online stores or marketplaces 
• Files and other digital intellectual property

Additionally, you should be aware that although you will document all of your digital assets on this list, not all will be passed to your beneficiary through your will. Digital assets you don’t fully own or are not worth money, such as domains or social media accounts, cannot be included in your will. However, you should still transfer them to your beneficiary or someone you trust to maintain them after your death.  

Reviewing and understanding the terms of service for your digital assets is also important. While you may have paid for access to a digital asset, that doesn’t always mean you own it. Sometimes, what you have purchased is a nontransferable license. If this is the case, you might not be able to share this asset with your beneficiary since you don’t fully own the asset. 

After listing your digital assets and reviewing their terms of service, they should be secured and backed up using a reliable storage method. You may use options such as an online storage platform or a private server. You can provide your attorney access to it for additional protection and ease of access. Finally, you will need to work with your attorney to ensure that you provide consent for access to these digital assets in the proper legal documents. This includes providing consent for your attorney, beneficiaries, or other trusted individuals to have access to your assets following your death.  

Sources

“How to Prepare a Digital Estate Plan”. U.S. Bank Wealth Management. https://www.usbank.com/wealth-management/financial-perspectives/trust-and-estate-planning/digital-estate-plan.html 

“Leaving Digital Assets Through Your Will”. Quicken. https://www.willmaker.com/legal-manual/wills/leaving-digital-assets-through-your-will.html 

“Estate planning for the digital era”. Fidelity. https://www.fidelity.com/viewpoints/wealth-management/estate-planning-for-digital-assets 

“Digital Property Frequently Asked Questions”. American Bar Association. https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/digital-property/ 

Provisions for pets in your will should include a designated caregiver to take responsibility for them, a clear indication of financial support through a pet trust, and instructions or requests for their care in your absence. These components are included in the pet clause of your will. Each of these components should be explained in detail in your will to reduce the risk of misinterpretation. 

Designating a caregiver is important since this individual is usually responsible for managing the financial support that you have provided for the care of your pet. This individual will ultimately become responsible for the well-being of your pet after you have died, so it is crucial to select a trustworthy person who can provide the love, attention and support necessary for proper pet care. You should have an open conversation with the designated caregiver to ensure that they are willing and capable of taking on this responsibility in your absence. You can also use this time to communicate any specific requests or instructions that you would like them to be aware of in regard to your will.

Your will should also clearly indicate any financial support that will be provided after your death. Consulting with an estate planning attorney can help you navigate the process of establishing a pet trust. The pet trust will be used to manage funds for your pet’s care, such as vet expenses, supplies, food and any other important needs that have an associated cost. By establishing a pet trust, you have created a legal arrangement that will ensure that your financial support is only used for the indicated purposes of pet care. If your pet dies, the remainder of the funds in the trust will be given to the designated caregiver as the beneficiary. 

Additionally, you should outline information about your pets that would be important for other people to know about when they take action on your will. This can include the names of your pets, their healthcare needs, important instructions for their care, or even details about the level of interaction and attention that they’re accustomed to receiving from you. Any information that will help the designated caregiver provide quality care for your pets should be included. After you have established your will, you should review it and update it on a regular basis if there are any significant changes to your expectations or circumstances. 

Sources 

“Pet guardians: How to provide for pets in your will”. FreeWill. https://www.freewill.com/learn/what-is-a-pet-guardian 

“Providing for Your Pet’s Future Without You”. Humane Society. https://legacy.humanesociety.org/documents/h/humane-society-of-the-united-states/pets_in_wills_factsheet.pdf 

“Including Animals in Your Will”. Animal Legal Defense Fund. https://aldf.org/article/including-animals-in-your-will/ 

“Estate Planning for Pets”. NOLO. https://www.nolo.com/legal-encyclopedia/estate-planning-pets.html 

Whether your state will recognize a will depends on state law. Even if you are using a state-sanctioned statutory form or a form that you downloaded from a reliable source, the will must be properly executed in the state where you live in order to be recognized as valid. States vary as to the number of witnesses required, whether the will needs to be notarized, and who can contest a will and under what circumstances. Some states may allow the will to be proven via a self-proving affidavit, while others have no such requirement or even bar its use. You may research your state’s legal requirements at FindLaw, which offers a state-by-state directory of the legal requirements to execute a will. However, be aware that laws change regularly, so it’s always a wise idea to investigate your state laws at the time you are creating a will.

After you have drafted your will, ask an attorney to review it for you. (Many attorneys will do so for a nominal fee.) If you do not have it reviewed, and you have failed to include some important provision, it’s unlikely that anyone will notice the problem until after you have died and your will has gone into effect. At that point, it will be too late to remedy the problem, and the probate court judge will be left with the task of determining your intent. This could lead to a long and expensive probate, conflict among your loved ones, and possible litigation should one or more of your potential heirs decide to contest the will.

An attorney can also help you decide if further estate planning is necessary, such as the establishment of a living trust, special needs planning for people on public benefits, planning for minor children, or advanced estate tax planning. 

Sources 

“State Wills Laws”. FindLaw. https://www.findlaw.com/state/estate-planning-laws/wills.html 

In general, you can change an existing will in one of three ways: 

• Create a will codicil: A codicil is a legal document that changes specific provisions of your will while leaving the rest of the will intact. It is best used for small changes, such as adding or deleting a specific bequest, changing your executor, or updating the name of a beneficiary who has married or divorced. It’s important to note that codicils must be executed in the same manner as a will. In most states, this means it must be signed by two adult witnesses who attest to your identity and your state of mind (e.g., that you are mentally competent and not under duress.)
  

• Create a personal property memorandum: A personal property memorandum is a document that details how you want certain personal items to be distributed upon your death. For example, you may wish to divide your assets equally among your children, but want a particular piece of jewelry to go to your youngest daughter or a family heirloom to go to your oldest son. Rather than list these items separately in your will, you can simply write them down on a personal property memorandum and attach it to your will. You must also mention the memorandum in the body of the will. Nolo recommends a statement to this effect:

“If I leave a writing separate from this will that disposes of some or all of my tangible personal property, whether the writing is executed before or after I execute this will, I direct that the writing be incorporated into this will and followed by my personal representative. If my personal representative cannot find any such writing within thirty days after my death, my personal representative may presume that no such writing exists and shall distribute my tangible personal property in accordance with the provisions of this will.“

Unlike a codicil, a personal property memorandum doesn’t need to be witnessed. You can simply sign it and attach it to your will. Should you change your mind about the distribution of your property at some point in the future, you can simply remove the old memorandum and attach a new one. However, you cannot add a memorandum after the fact. It has to be mentioned in the original will. 

Remember, too, that a personal property memorandum should only be used to bequeath tangible property that does not require a title to convey ownership (for instance, a car, a boat or real estate). Bequests of cash, securities and business interests should be enumerated in your will. 

Note: According to Nolo, a personal property memorandum is currently not valid in the following 20 states:

• Alabama
• Connecticut
• Georgia
• Illinois
• Kentucky
• Louisiana
• Maryland
• Mississippi
• New Hampshire
• New York
• North Carolina
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• Tennessee
• Texas
• Vermont
• West Virginia

If you are making any substantive changes to your will, creating a new will is often the safest and easiest approach. You should also create a new will when you experience a significant life event, such as getting married, having a child or getting divorced. You want your will to reflect your current life situation, not what was true 5 or 10 years ago. 

To ensure that only your new will is honored after your death, state in your new will that you are unequivocally revoking any previous wills and codicils, and list them by date. It’s also a good idea to destroy your old will, preferably in front of witnesses. The courts can’t honor something that no longer exists. 

Sources

“What Is a Codicil?” The Balance. https://www.thebalancemoney.com/what-is-a-codicil-3505182 

“Using a Personal Property Memorandum With Your Will”. NOLO. https://www.nolo.com/legal-encyclopedia/using-personal-property-memorandum-with-your-will.html

“What Is the Best Way to Update My Will?” NOLO. https://www.nolo.com/legal-encyclopedia/what-the-best-update-will.html 

To find a lawyer to draft your will, begin by asking trusted friends or family members for a referral.

If this doesn’t work out, contact your local bar association and ask them to give you the names of a few estate planning attorneys near you. You can find the contact information for the American Bar Association in your state by using this interactive map.

If you don’t have the financial resources to hire an attorney, there are a number of sources that may be able to help. These include the following: 

• Legal Aid: Legal Aid is a service directed by the Legal Services Corporation of America. It provides legal assistance to low-income people of all ages, and is available in all 50 states and the District of Columbia. To find a Legal Aid office near you, consult this interactive map.
  
  

• The American Bar Association: The American Bar Association provides a directory of attorneys who provide pro bono (free) services to low-income clients at FreeLegalHelp.org.
  
  
• LawHelp.org: Developed and maintained by ProBono.net, LawHelp.org provides referrals to local legal aid and public interest law offices as well as basic information about the court system and your legal rights. Consult this interactive map to find a pro bono attorney near you.
  
  
• National Disability Rights Network: If you or your spouse are disabled, the National Disability Rights Network may help you find legal assistance through its Protection and Advocacy System and Client Assistance Program. Visit the NDRN website to find legal assistance in your state. 
  
  
• AARP: If you are an AARP member, you are eligible for a free 45-minute consultation with an attorney through the AARP Legal Services Network. You will also receive a 20% discount on other legal services you may need. To schedule an appointment, call the Legal Hotline at 202-434-2120 or visit Legal Counsel for the Elderly to learn more.

Your family is not responsible for your debt after you die in most instances. These debts are typically paid with the funds or assets from the estate. However, family members may be responsible for your debts if any of the following exceptions apply: 

• They are listed as the executor or administrator of the estate, and the state law requires them to pay outstanding debts through property with joint ownership by the deceased and surviving spouses
• They are a surviving spouse and reside in a community property state that requires them to pay debts of a deceased spouse with jointly-held property
• They are a surviving spouse, and state law requires them to pay specific types of debt 
• They are listed as co-signers on loans with outstanding debts 
• They are listed as joint account holders on credit cards with outstanding balances

If these exceptions do not apply, your family is not responsible for your debts when you die. If your estate is unable to pay for your debts and there aren’t any family members with shared responsibility for your debt, the debts will likely remain unpaid. Although your family is not responsible for paying these debts, they may still be targeted by debt collectors. The Fair Debt Collection Practices Act (FDCPA) indicates that debt collectors may only contact and discuss outstanding debts with certain people after your death. These individuals include: 

• Spouse 
• Legal guardian
• Parents 
• Lawyers 
• Confirmed successor in interest 
• Administrator, executor or personal representative

If family members are contacted by debt collectors after your death, they do not have to speak with them, and they are not required to pay for any debts if they do not have shared responsibility under the previous exceptions. Instead, they can provide the contact information for your personal representative. Additionally, if they would prefer not to receive further communication from the debt collector, they can send a letter requesting that all future contact cease. 

Sources

“Who Is Responsible for a Deceased Relative’s Debt?” Find Law. https://www.findlaw.com/estate/estate-administration/paying-the-debts-of-a-deceased-relative-who-is-responsible.html 

“Debts and Deceased Relatives”. Federal Trade Commission. https://consumer.ftc.gov/articles/debts-and-deceased-relatives#whocan 

“Does a person’s debt go away when they die?” Consumer Financial Protection Bureau. https://www.consumerfinance.gov/ask-cfpb/does-a-persons-debt-go-away-when-they-die-en-1463/# 

When a parent dies without a will, the surviving spouse and children are usually prioritized as primary beneficiaries by the state’s intestate succession laws. In most instances, the surviving spouse will receive most of the assets, and the children will receive the remaining assets. However, every state has laws to determine who receives assets and how much they will receive, and some states have laws that split the assets between the surviving spouse and the children. 

The probate court may have unique considerations regarding children when a parent dies without a will. If minor children do not have a guardian, the court may appoint one and make them responsible for managing the inherited assets. This guardian will pay for common expenses such as healthcare, education, and other necessities until the child transitions to adulthood. Adopted children have the same rights to inherit assets as biological children. Still, they are not entitled to any assets from their biological parents’ estate if the parent dies without a will. Likewise, stepchildren aren’t entitled to any assets unless they have been adopted or a will was created before the stepparent’s death. 

It is important to note that adult children have complete control over their inheritance when assets are distributed and are allowed to use them according to their preferences. In contrast, minor children will always need a legal guardian to manage the assets until they are older, and some may also have assets transferred to a trust. How much of the inheritance is awarded to the children tends to vary by state. For example, California law indicates that if the person who died had children from previous partners, half of their estate would be distributed among the children. The other half would be distributed to the surviving current partner. 

Although minor and adult children have rights to assets when a parent dies without a will, the implementation of those rights will differ due to state laws. It can also be difficult to discern the amount of inheritance that adult and minor children are entitled to since it can vary based on court decisions, state laws, and whether a surviving spouse or relative is available. Similarly, some children may not be entitled to receive anything if they are stepchildren. This ultimately underscores the overall importance of creating a will to ensure that children are taken care of in the manner that the parent intended. 

Sources 

“Dying without a will – What happens?” Trust & Will. https://trustandwill.com/learn/dying-without-a-will 

“What is a child entitled to when a parent dies without a will?” Legal Zoom. https://www.legalzoom.com/articles/child-rights-if-parents-die-without-will 

When someone dies without a will, their assets are distributed based on the intestate succession laws of their state of residence at the time of death. The court system will freeze the assets of the person who died and review their estate before determining how the assets will be distributed. A personal representative will be appointed in the probate court to maintain oversight of the distribution and will handle any remaining debts before allocating money to the surviving members of the family. This representative may be a surviving spouse, adult children, or adult grandchildren of the person who died. 

If the person who died was married, their surviving spouse will receive a portion of their assets. The amount of distributed assets tends to vary based on state laws. If they were in a domestic partnership prior to death, whether their partner receives any of the assets will depend on state regulations since not all states legally recognize domestic partnerships. In states where domestic partnerships are recognized, the surviving partner generally has the same rights as a surviving spouse. If the person who died was single, their assets are usually distributed to their children. However, if the person didn’t have any children, the assets may be distributed to their parents, siblings or the children of their siblings. 

Ultimately, the state takes responsibility for asset distribution when someone dies without a will, and this can result in outcomes that don’t align with the wishes of the person who died. Since only 32% of Americans report having a will, it is crucial for individuals to focus on estate planning proactively to avoid undesirable consequences from intestate succession. Without a will, it can be difficult to ensure that surviving loved ones will maintain financial security in the event of a death.

Sources

“Intestate: Definition and state rules”. Investopedia. https://www.investopedia.com/terms/i/intestate.asp 

“Uniform probate code”. Cornell Law School. https://www.law.cornell.edu/uniform/probate

The individual named the executor in a decedent’s will is responsible for handling the distribution of inheritances. The executor must file the will with the county probate court before the inheritance process can begin. The probate court will then review the will and transfer any designated assets to the beneficiaries named in the document. Generally, a court hearing is conducted to allow a judge to validate the will and provide an opportunity for concerned parties to object to the probate process. Some common reasons why an objection may occur during the probate process can include: 

• Concerns that the will was drafted inappropriately 
• An updated will has been identified 
• There is a request to change the executor 

In most cases involving a will, the named executor will move forward with distributing assets after probate is complete.  If there is a request to change the named executor or a will doesn’t exist, the judge must appoint an executor during the probate process. This will usually be the next of kin, such as a spouse or the oldest child. The probate court will then issue letters of authority or administration so that the executor can make transactions on behalf of the estate. 

If the person who died owed any debts at the time of death, the executor is responsible for using the assets to settle these debts before the inheritance can be transferred to the beneficiaries. The executor is also responsible for having the assets appraised and filing final tax returns before moving forward with the distribution of inheritances. Once ownership of the assets has been transferred to the beneficiaries, they can legally divide the assets amongst themselves or sell them if they prefer. 

Sources 

“How Does Inheritance Work and What Should You Expect?” SmartAsset. https://smartasset.com/investing/how-does-inheritance-work 

“A Guide to Understanding the Inheritance Process”. Inheritance Funding. https://www.inheritancefunding.com/inheritance-process-guide/ 

“How are inherited properties distributed?” Empathy. https://www.empathy.com/property-assets/how-are-inherited-properties-distributed 

If a will exists, the executor is usually aware of the will’s location and will take the required action to ensure it is executed. That person should contact you when the will has been probated. This will usually happen a month to two after your loved one died. 

If the will cannot be found or if you believe that you have not been contacted regarding an existing will, there are actions you can take. The first option is to contact local law firms that your loved one previously worked with. Most law firms now keep copies of the will in their client’s files for easy reference in case the original will cannot be found. 

Another option is to contact the probate court in the county of your loved one’s former residence. When someone dies, their will is filed at the probate court in their county. You can contact the county probate court via phone or in person. The clerk will likely ask you for some identifying information, such as your loved one’s full name and date of death. You may also be able to find a record of the will online if the state’s probate court maintains an online database. However, the availability of online databases varies from state to state. 

Overall, determining whether your loved one had a will is a critical step in the administration of their affairs, but it is typically not as complicated as it may initially seem. Assuming that other beneficiaries are not aware of the location of the will, options such as contacting legal professionals in the area or the county probate court can usually determine if a will exists. If a will is identified, it is important to keep in mind that it is the executor’s responsibility to take action on it moving forward. Most likely, the executor will contact you in the near future. 

Sources

“How to Find Out if a Loved One Had a Will”. Aging Care. https://www.agingcare.com/articles/how-to-find-out-if-a-loved-one-had-a-will-210723.htm 

“How to Find Out if Someone Has a Will”. LegalShield. https://www.legalshield.com/blog/how-to-find-out-if-someone-has-a-will 

When someone dies, their will is executed through a process known as probate. During probate, the will is validated, and the estate of the person who died will be inventoried so that the assets can be distributed to the intended individuals. If someone has a small estate, the probate process typically isn’t necessary. The probate process typically includes the following steps: 

• The designated executor files the will in a probate court
• The executor obtains the assets from the estate to inventory and account for them 
• Financial institutions, the IRS, creditors, the Social Security Administration, employers, life insurance policy issuers and beneficiaries are notified 
• A notice to creditor advertisement is published by the executor 
• Assets are used to settle any remaining taxes and debts that are owed
• Remaining assets are distributed to beneficiaries according to the will
• The estate is closed by petitioning the court after beneficiaries and creditors have been paid 

When the executor files the will with the probate court, they will usually present additional documentation such as a death certificate to confirm that the owner of the estate has died. When it is time to distribute the remaining assets to beneficiaries, the executor may need to take additional action. For example, some assets may be sold for cash to pay for outstanding debts or for further distribution to beneficiaries. The executor of the will is also responsible for filing the final income tax return for the person who died and any additional related reports prior to closing the estate with the court. 

In most instances, the probate process takes around six to nine months for completion, although this can vary by state. If the will is contested or if the person who died didn’t have a will, the probate may be significantly delayed. Additionally, the size of the estate can affect the time associated with probate proceedings, especially if the person who died had a large estate or complex circumstances surrounding their assets. 

Sources 

“Wills: How They Go From Probate to Public Record”. Investopedia. https://www.investopedia.com/ask/answers/101915/when-are-beneficiaries-will-notified.asp 

“Estate Administration: The Will After Death”. FindLaw. https://www.findlaw.com/estate/estate-administration/estate-administration-the-will-after-death.html 

“How to probate a will: A step-by-step guide”. FreeWill. https://www.freewill.com/learn/how-to-probate-a-will 

Generally speaking, there isn’t a specific age when someone should make a will since this decision is largely personal and dependent on individual circumstances. However, many advisors recommend that individuals should either establish a will as soon as they are of legal age or as soon as they have assets, dependents, debts or an increased risk of death. Even if someone does not have extensive assets, it can be beneficial to have a will since it helps establish key decisions regarding guardianship and assets. 

Most states recognize the age of 18 as the minimum legal age to make a will. However, the legal age can vary by state. For example, 16 years of age is acceptable in Louisiana and 14 years of age is acceptable in Georgia if the individual has mental capacity. While individuals at these ages may not have extensive assets or related financial concerns, establishing a will can address the distribution of digital assets such as photos, websites, blogs, personal accounts and beyond. 

Life events and circumstances can be good indicators of the need to create or update a will. Example events can include getting married, having children or starting a business. As additional major life events occur, individuals should revisit and update their will to reflect these changes to ensure that all of their assets are appropriately addressed. Although many people typically think of creating a will once, never to return to it again until it is necessary after their death, wills can be revised and updated throughout a lifetime. 

Sources

“Requirements for Making a Will”. Upcounsel. https://www.upcounsel.com/lectl-requirements-for-making-a-will 

“Why you are never too young to make a will”. The National News. https://www.thenationalnews.com/business/money/2023/07/11/why-you-are-never-too-young-to-make-a-will/ 

“The Earliest Age You Can Create a Will: A Guide to Early Estate Planning”. Wills.com. https://learning-center.wills.com/the-earliest-age-you-can-create-a-will-a-guide-to-early-estate-planning/ 

It is absolutely possible to leave a gift to a designated charity or charities in your will. Known as an endowment, legacy gift or planned giving, such testamentary bequests not only support causes that are important to you but may have financial benefits as well. For example, if you take out a life insurance policy with the charity as the beneficiary, you can usually deduct the premiums for that policy as a charitable donation while you are still alive. Charitable donations may also decrease the amount of any estate tax owed after your death. An estate planning attorney can help you determine if this is a wise course for you based on the value of your estate and your state laws.

In general, legacy gifts fall into four broad categories:

• General gifts: a specific amount of money or a percentage of your estate
• Residuary gift: any remaining assets after all other bequests and claims (for example, unpaid debts, taxes and administrative expenses) have been fulfilled 
• Specific gift: the donation of a particular item, such as a piece of art or a car
• Contingent gift: a donation based on certain conditions being met, such as your main beneficiary passing away before you

Very often, legacy gifts are monetary — for example, an annual endowment of a certain amount of money to the charity of your choice. However, you may also make other charitable bequests in your will, including the following:

• Real estate, such as land or residential property you own
• Personal property, such as jewelry, antiques works of art or automobiles
• Stocks or bonds
• Proceeds of a life insurance policy or an individual retirement plan
• Partnership interest in a business

When planning your testamentary bequest, make sure to determine the correct name of the charity and, where applicable, the fundraising entity that collects donations on its behalf. (The names and addresses may be different, so contact the charity’s headquarters to make sure.) It may also be helpful to decide what you would like your gift to accomplish. For example, if you want to donate a certain amount of money to Habitat for Humanity to renovate 10 homes in your hometown, you will need to speak with an administrator at the charity to learn how much that will cost.

Sources

“Essential Estate Planning Documents”. LawDepot. https://www.lawdepot.com/estate-planning/?loc=US#.YGdoRWjYpD8 

Since a will serves as the primary source of documentation that outlines an individual’s wishes regarding how their estate should be handled after their death, many key components define the distribution of these assets. Most estate planning experts consider the following as major components of a will: 

• The testator’s full legal name and marital status 
• Residence 
• Children, if any 
• Debts, taxes and which assets should pay them
• Disposition of assets
• Guardian of the person and estate of children 
• Information about the executor and trustee, as well as their powers
• General provisions
• No contest provisions 
• Definitions 
• Trusts, if any 

In addition, there should be a place for two witnesses and the testator to sign and date the will. General provisions are included based on state laws and circumstances specific to the testator, such as what would happen to the estate if a divorce occurred. The ‘no contest provision’ is used to prevent opposition towards the provisions and probate of the will. Other potential provisions can include a statement revoking all previous wills or a residuary clause that addresses what should happen to any properties that are not specifically mentioned in the will. 

Ultimately, multiple components of the will have a pivotal role in determining how a testator’s assets are distributed after their death. Some wills are simple and only have a few general provisions in addition to these components, whereas more complex wills may have numerous provisions and specialized clauses that are specific to the wishes of the testator. Individuals are encouraged to work closely with an estate planning expert to ensure that the appropriate components are included to fully account for all aspects of their estate. 

Sources

“The 10 Must Have Parts of a Will”. The Ashmore Law Firm. https://www.ashmorelaw.com/library/the-10-must-have-parts-of-a-will.cfm 

“Key Provisions to Include in Your Will”. King Law. https://kinglawoffices.com/blog/estate-planning/wills/key-provisions-to-include-in-your-will/

Only individuals who have legal standing can contest a will. An individual must meet specific criteria to have legal standing. Any of the following can make someone eligible to contest a will: 

• The individual is already a beneficiary named in the will 
• The individual is a beneficiary who was named in a previous will, and:
  • was removed from the most recent version of the will, or 
  • has a reduced share of the estate in the most recent version of the will 
• The individual is not named in the will but would be eligible to inherit the estate based on intestacy laws if the will didn’t exist (i.e.,a child, spouse, or next of kin) 

If the person who died owed significant debts, sometimes creditors may have the right to contest the will to collect on those debts if they have a right to the property. Additionally, any will may be contested if the individual has legal standing and valid reasons. Reasons for contesting the will can include any of the following:

• If the person who died did not have the capacity to make decisions at the time that the will was created 
• If there are multiple wills and the most recent version of the will was created directly prior to the death of the individual who originally owned the estate
• If the will does not meet state requirements regarding the information that is included, who the witnesses were, or how it was signed, it may be invalidated 
• If the individual who made the will may have had their signature forged, was subjected to creating the will under duress, or they were deceived into signing the will 
• If the will was created in another state where the person who died did not reside 

Some individuals may opt to include no-contest clauses in wills to discourage beneficiaries from contesting the will. Including a no-contest clause means that if a beneficiary or an heir attempts to contest the will and loses, they will not receive their inheritance at all. However, these clauses are not enforced equally in all states, and some states do not enforce them at all. If the clause is not enforced, then the beneficiary will still receive the inheritance that was listed in the will. Alternatively, some states enforce no-contest clauses but maintain an exception if the individual who has contested the will has a probable cause for suing, which can include any of the aforementioned valid reasons. 

Sources

“Who Can Challenge a Will?” FindLaw. https://www.findlaw.com/estate/wills/who-can-challenge-a-will-.html

“Contesting a Will? You Might Not Need a Lawyer”. Yahoo!Finance. https://finance.yahoo.com/news/contesting-might-not-lawyer-105500366.html 

“No-Contest Clauses in Wills and Trusts”. NOLO. https://www.nolo.com/legal-encyclopedia/no-contest-clauses-wills-trusts.html 

A will can only take effect after an individual dies and must go through the probate process, but a trust can be used to manage the individual’s assets in the event that they are incapacitated. It is also exempt from probate. Both are legal documents intended to distribute an individual’s estate after death; however, they address different purposes and have key differences. Understanding these differences is an important step in making an informed decision about estate planning. Some individuals choose to have a living trust and a will to ensure that their estate is fully accounted for in life and death. 

Generally speaking, a will is a legal document that indicates someone’s wishes regarding how to distribute their assets and property after death. It is required to go through a probate process for validation and execution in order for those assets to be distributed. The person who creates the will, known as a testator, must indicate who they want to act as the executor of the will, which is the individual who is responsible for ensuring that the wishes and instructions are followed appropriately. The beneficiaries in the will won’t receive any assets until the probate process is completed. Depending on the size and complexity of the estate and associated will, it may take months or years to complete probate. 

In contrast, a trust is another type of legal arrangement that can be used to transfer assets to beneficiaries. The person who creates the trust, known as the grantor, transfers their assets to a trust account that will be managed by a third party on behalf of that individual. The grantor designates a trustee to act on the trust document and distribute the assets accordingly, which may happen after death or even while the grantor is still alive if they are incapacitated for some reason. A trust can be revocable to allow the grantor to make changes during their lifetime, or it can be irrevocable to prevent any changes from being made. Since a trust doesn’t involve the probate process in court, the beneficiaries can receive the assets shortly after the grantor has died. 

Sources

“Living Trust vs. Will: Key Differences”. National Council on Aging. https://www.ncoa.org/adviser/estate-planning/living-trust-vs-will/ 

An electronic will, sometimes referred to as a digital will or e-will, is the digital format of a legally binding document that outlines an individual’s preferences for the distribution of their estate and other important personal requests following their death. Electronic wills contain all of the same information and details that are noted in a traditional paper will. The main difference is that the creation, storage, maintenance and execution of electronic wills relies solely on digital technology and can involve other elements such as the use of electronic signatures, online platforms and various digital tools. 

Although there are aspects of electronic wills that are more convenient in comparison to traditional wills, electronic wills are still met with skepticism due to the requirements necessary to establish the validity of a traditional will. Lawyers frequently have concerns about electronic wills since so much of the process can be completed in the privacy of someone’s home rather than in direct collaboration with a legal entity. When traditional wills are created, the maker has to be of sound mind and the will must meet all of the following requirements: 

• Made in writing 
• Signed and dated by the maker 
• Signed by witnesses

Although nearly all states require two witnesses to sign the will, most additionally require that the witnesses are present when the maker signs the will as well. It can be argued that since electronic wills are created and stored on a computer or smart device rather than being typed, printed, and signed, they may not meet the first requirement for the will to be “made in writing.” Electronic signatures typically include a timestamp when the signature was placed on the document, so the second requirement can typically be fulfilled without concern. 

Similarly, the witnesses could sign the document in this manner, but the larger concern would be whether they can be considered to be “present” when the maker signs the will if they are only viewing the process via video conferencing rather than being in the same room. Another consideration under these circumstances pertains to whether remote notarization needs to occur and if a notary public needs to be present during the video call. Since there are still many states that have yet to specifically allow electronic wills by law, the legality of these scenarios can vary by state based on the interpretation of each state’s current legislation. 

Sources 

“What Is an Electronic Will?” NOLO. https://www.nolo.com/legal-encyclopedia/what-is-an-electronic-will.html 

“The Pros and Cons of Electronic Wills.” Forbes. https://www.forbes.com/sites/christinefletcher/2019/10/25/the-pros-and-cons-of-electronic-wills/?sh=5c21843e5457

A will typically remains valid indefinitely after death and does not have an expiration date. This means that a will could be created over 40 years ago and still be valid. However, wills can become outdated if they are not consistently updated to reflect preferences or changes based on major events in the willmaker’s life or other influencing factors. It is important to note that although a will cannot be invalidated by time, it can be invalidated in specific scenarios. These scenarios can include:

• If the will is marked up with handwritten notes or interlineations
• If someone’s spouse attempts to write them out of the will
• If a divorce occurs 
• If a prenuptial agreement exists and conflicts with the will 
• If witnesses weren’t present when the will was signed 
• If the original will cannot be found and only copies are available 

In any of these scenarios, the probate court can decide that the will is invalid and no further action will be taken to act on the will. If the original will cannot be found, it is generally assumed that it was destroyed by the willmaker or a relative unless otherwise proven, which is viewed as revoking the will and ultimately invalidating it. Overall, while there is no specific expiration date for a will that can invalidate it over time, it is important to ensure that this document is kept updated and reviewed with an attorney to avoid other factors that may result in invalidation.

Sources

“How Long Does a Will Last?” Stone Arch Law Office. https://stonearchlaw.com/how-long-does-my-will-last/ 

“Do Wills Expire? 6 Things to Know”. Trustworthy. https://www.trustworthy.com/blog/do-wills-expire 

Once your will is drafted and properly executed, it is important to keep the original in a safe, secure place. If the original cannot be found after your death, a copy of the will may not be recognized, depending on your state’s law. At minimum, your next of kin will need to go through a time-consuming process to have the copy certified before it can be entered into probate, delaying the settlement of your estate. 

Some law offices store original estate plan documents on behalf of their clients, but some return the originals. If you have your original will, one option is to store it in your safe deposit box. However, this is typically not a wise choice because only someone who is a joint title holder can open the box without a court order after your death. Access to the box is also limited to normal banking hours. So if you die at 7 p.m. on a Friday night, your survivors won’t have access to your will until Monday morning at the earliest. That being said, if you do choose this option, make sure that a trusted individual is a joint title holder of the safe deposit box and knows where the key is kept. You will also want to keep a copy of the will in a more accessible location so it can be accessed quickly upon your death. 

Another option for storing your will is to keep it in a locked, fireproof safe or filing cabinet in your home. Again, make sure someone you trust knows where it’s kept and where you keep the key. You may also choose to ask a close friend or the person you have chosen to appoint as your executor to store your will for you if you would rather not keep it in your home.

Whatever you choose to do with your will, be sure that at least one of your loved ones knows the following:

• That you have a written will
• Where the will is kept
• How to access the will (for example, where you store the key)
• If you worked with an attorney to create the will, how to reach them upon your death

Sources

“I can’t find an original will, I only have a copy. What can I do?” Suzanne R. Fanning, PLLC. https://www.annarborprobate.com/q-a/cant-find-original-will-copy-can/ 

Legally, wills are divided into three main types, each of which will be subject to different legal requirements. According to family, estate and elder law attorney Randy Michel of College Station, Texas, these include holographic (handwritten) wills; standard, formal, typed wills; and partially typed and partially handwritten wills. 

• Holographic wills: In most states, handwritten wills are considered valid only if they are written completely in the handwriting of the testator — that is, the person creating the will. The signatures of witnesses typically are not necessary as long as it can be reliably established that the handwriting belongs to the person executing the will, and there is evidence of “testamentary intent.” (This is usually established with words such as “I, John Doe, declare this to be my last will and testament” or “I, John Doe, hereby bequeath….”) The person writing the will must also have testamentary capacity — the mental ability to understand what they are writing and the extent of the bequests being made. Lack of testamentary capacity (for example, a diagnosis of dementia or psychosis or proof that the person making the will was under the influence of alcohol or drugs) is a legal basis for challenging the validity of a will. 
  
  
• Standard typewritten or printed wills: Any printed or typewritten will must be signed by the testator and witnessed by two or more adults (the number depends on state law). As with handwritten wills, a standard will must include a statement of testamentary intent, and the person executing it must have testamentary capacity. In most cases, these wills are considered “self-proved” — that is, the signatures of the witnesses prove the validity of the will. However, it may help move the will more quickly through probate to include a “self-proving affidavit” signed by the witnesses stating that they saw the person sign the will and that the testator had the capacity to do so. (Note: Ohio and the District of Columbia do not offer this option; all wills must be proved in probate court after the person’s death.)
  
  
• Partially handwritten, partially typed wills: Because partially handwritten wills can’t be proven without witness signatures, they must meet the statutory requirements of a standard, typewritten or printed will. That is, they must be signed by the testator, and the signature must be witnessed by the appropriate number of persons as outlined in state law. 

In addition to these three types of written wills, some states recognize the validity of oral (spoken) or nuncupative wills. Also known as a “deathbed wills,” such wills are looked upon with skepticism by probate courts, although some states allow them under very limited circumstances. In New York, for example, a nuncupative will may be recognized if the oral declaration was heard by at least two witnesses and was made by one of the following: 

• A member of the U.S. armed services while deployed during wartime (declared or undeclared) 
• A person accompanying an active duty service member to a war zone or an area where armed conflict is taking place
• A mariner at sea

In North Carolina and a few other states, the rules are somewhat more lax, in that an oral will can be considered valid if the speaker is in the final stages of a terminal illness or in “imminent peril of death” and does not survive. The oral statements must also be made in the company of two competent witnesses who the will-maker has asked to witness his or her will. 

Sources 

“3 Types of Wills”. Law Office of Randy Michel. https://www.randymichel.com/blog/2019/06/15/3-types-of-wills-200799/ 

“Testamentary Intent Law and Legal Definition”. US Legal. https://definitions.uslegal.com/t/testamentary-intent/ 

“Testamentary Capacity”. Cornell Law School. https://www.law.cornell.edu/wex/testamentary_capacity 

“Invalidating a Will Because of a Lack of Testamentary Capacity”. Schklar & Heim. https://www.atlantalawfirm.net/invalidating-a-will-because-of-a-lack-of-testamentary-capacity/ 

“Self-Proving Affidavits”. NOLO. https://www.nolo.com/legal-encyclopedia/self-proving-affidavits.html 

“Is an Oral (Spoken but Not Written) Will Valid?” All Law. https://www.alllaw.com/articles/nolo/wills-trusts/oral-spoken-not-written-will-valid.html 

Though easy to do, it’s a mistake to take the security of an estate for granted. A sudden accident or an unexpected death can bring about a cascade of legal proceedings. Without adequate preparation, surviving loved ones may find themselves overwhelmed by unforeseen taxes and legal expenses. A carefully prepared will or living trust can help to minimize such responsibilities. Additionally, drafting a will can be a far less difficult process than you might expect. This section of SevenPonds will attempt to aid you in the process.

What is a will or testament? What is a living trust? What are the benefits of a will? How much does an estate tax account for? How do you prepare a will? Do you need an attorney to prepare a will?

DISCLAIMER: This page contains general information about issues and should not be construed as legal advice. Every case must be analyzed independently, based on the specific facts of the case. If you have questions or concerns about your particular situation, please consult an attorney.

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Things to Know:

• If you die without a will, some or all of your possessions go into probate and may be dispersed according to the laws of your state.
  
• Not everyone needs a living trust. Whether a living trust makes sense for you depends on what assets you own, the size of your estate, your estate planning goals, and the laws of your state. 
  
• Ordinary living trusts do not provide protection from creditors. If you wish to set up a creditor-protected trust, please consult with an attorney. 
  
• If you have a living trust, you still need a will — but a much simpler will, called a “pour-over” will.
  
• Whether your estate will be subject to estate tax depends on the applicable federal and state estate tax exemptions in the year in which you pass away and the size of your taxable estate.

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What is a will?

Your last will and testament serves two key functions. First, it names the beneficiaries you wish to inherit your property after death. Second, it nominates who you want to serve as your Executor, the person who will administer your estate.

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Do I need a will?

If you’re wondering who needs a will, the short answer is: just about everyone. If you pass away without a will, your estate will be distributed according to the “intestate succession” laws of the state where you reside at the time of death. These rules set forth which of your family members will receive your property. In other words, state law will choose your beneficiaries for you.

In your will, you can choose your own beneficiaries. You can decide how much you would like to leave to whom, and you can stipulate your choice for charities or institutional donations that your family members may not have been aware of otherwise.

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How do I find an attorney to prepare my will? 

To find a lawyer who can draft your will, you can begin by asking friends for referrals or by referencing our Local Resources section. You can make your initial visit to a lawyer more productive by bringing along a completed will worksheet.

If you cannot afford an attorney’s legal fees, contact the local bar association in the state or county where you live. Ask for referrals to attorneys who can prepare wills at a reduced cost or on a “pro bono” (for free) basis.

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Should I draft my own will?

Drafting your own will may sound like a daunting process, but there are a wide variety of so-called “will kits” and state-issued forms to direct the process. If you are able to do this correctly, you can save yourself a considerable amount of money in attorney fees. However, you MUST be sure that your will is in accordance with state law.

If you decide to draft your own will, you have a few options. Some states issue “statutory form” wills. If you print out the form, fill in the blanks, and execute the form in accordance with state law, such state-issued forms should be recognized as valid wills at the time of death. 

Another source of form wills are off-the-shelf sources like Nolo Press will kits, which can be purchased at book stores or office supply stores. These will kits are similar to statutory forms, except that they are prepared by private companies.

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Will my state recognize my form will?

Whether your state will recognize an off-the-shelf will kit depends on the laws of the state. Even if you are using a form will, it must be properly executed in the state where you live in order to be recognized as valid.

After you have drafted your will, ask an attorney to review it for you. If you do not have it reviewed, and you have failed to include some important provision, no one will notice the problem until after you have passed and your will has gone into effect. At that point it will be too late to remedy. This could lead to litigation and conflict among your loved ones.

An attorney can also help you decide if further estate planning is necessary, such as the establishment of a living trust, special needs planning for people on public benefits, planning for minor children, or advanced estate tax planning. Be advised, if you choose to draft your own will and an attorney alerts you to crucial issues that you missed, you may end up having an attorney revise or draft your will anyway. Therefore, follow any instructions in your will forms or statutory forms very carefully.

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Can I leave part of my estate to charity? 

Yes. However, note that leaving lifetime gifts or testamentary bequests to charity raises unique tax and estate planning issues. For more information about charitable donations, reference our upcoming article on Preplanning a Legacy Donation.

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Once my will is complete, what should I do with it?

Once your will is drafted and properly executed, it is important to keep the original in a safe, secure place. If the original cannot be found after your death, a copy of the will may not be recognized, depending on your state’s law.

Some law offices store original estate plan documents on behalf of their clients, but some return the originals. One option is to store the will in your safe deposit box. Another option is to keep it in your home in a locked safe or filing cabinet, preferably one that is fireproof and waterproof.

Whatever you choose to do with your will, be sure that your loved ones are aware of your decision. Make sure that they know the following: (a) that you have a will; (b) where you keep it; (c) how to get access (e.g., where you keep the key); and (d) if you worked with an attorney on any part of the will, how to reach that attorney.

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When does my will go into effect? 

Your will is effective immediately, but it only governs what happens at the time of your death. Until you pass away, you may rewrite or amend your will at any time. 

Keep in mind that to be valid, a new will or an amendment to your will (also called a “codicil”) must meet the execution formalities of state law. Never mark up your existing will. Depending on state law, such markings may not be recognized. To make matters worse, they could actually invalidate your will.

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What is probate? 

Probate is the court process for administering your estate after you pass away. The probate process is handled by the “probate court.”  The probate process can take anywhere from a few months to a few years, depending on state law and the size of your estate. Unfortunately, it can be expensive and time-consuming.

After death, the will has to be lodged with the probate court of the county where you were residing at the time of death. The probate court appoints an Executor (usually the person nominated in the will) and oversees the administration of the estate by the Executor. 

The main purpose of probate is to make sure that the people you intend to receive your property actually receive it. Another goal of probate is to notify potential creditors of your death. The Executor is responsible for filing final tax returns, identifying and notifying creditors, paying final debts and taxes from the assets of your estate, and finally, distributing your assets to your beneficiaries.

If you have property in states other than where you live, typically, there also has to be an “ancillary probate” proceeding in the state where the property is located.

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What is a “living trust?”

A living trust is an agreement, set up and in effect while you are still alive, where you (as the “Grantor,” the person creating the trust), give property to yourself (as Trustee, the person who manages the trust), for the benefit of the trust beneficiaries (including you during your lifetime). 

Property held in a living trust, at the time of death, typically avoids probate court, depending on state law. In this way, a living trust can save the beneficiaries thousands of dollars (in some states, tens of thousands) in legal expenses and more quickly expedite the distribution of assets.

As the Trustee of your own living trust, you can continue to use and control all of the trust assets for your own benefit. You may revoke or amend the living trust at any time, which is why these trusts are sometimes called revocable living trusts. While you are living, income generated in the trust would be reportable on your personal income tax returns; no separate tax return for the trust is generally required.

In the event that you become incapacitated, a successor trustee whom you name would take over, and administer the trust assets for you while you are still living. After your death, the successor trustee would then distribute the trust assets to your beneficiaries.

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What about joint trusts for married couples?

Married couples can set up joint trusts for their assets. However, same-sex couples who are married or have entered into a marriage-equivalent status in their home states could face additional taxes by setting up joint trusts, because same-sex relationships are not currently recognized by the federal government under the federal Defense of Marriage Act. If you have a same-sex partner, please consult with an attorney for advice on your estate planning.

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Who needs a living trust?

Whether you need a trust or not depends on what assets you own, the total size of your “probate” estate, state law, and the unique circumstances of your family. A trust can be beneficial for people in a variety of situations. People who should at least consider setting up a living trust include:

• Parents with minor children; 
• People who own real property (house, condo, land);
• People who have accounts over $50,000 or $100,000 (depending on what triggers a probate in your state); 
• People in states where the probate process is more complex or time-consuming;
• Married couples, either same sex or opposite sex, who have total assets, including proceeds of life insurance, over $2 million; 
• If you have family or beneficiaries on public benefits, or with creditor problems;
• If you want to protect the assets inherited by your children or beneficiaries from their current or future spouses or future lawsuits.

Consider consulting a lawyer who specializes in wills and trusts to find out whether or not a living trust makes sense for you.

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Do living trusts shield my assets from creditors? 

No. Ordinary living trusts do not provide protection against creditors. 

Some types of irrevocable trusts (trusts that cannot be amended once completed) can provide creditor protection, but setting up such a trust must be done very carefully to comply with tax regulations and laws against fraudulent conveyances (i.e., laws that prevent debtors from defrauding creditors). If you have questions about setting up creditor-protected trusts, please consult with an attorney.

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If I have a living trust, do I also need a will?

Yes. When you have a trust, you still need a special type of will, called a “pour-over” will. Essentially, a pour-over will is a safety net, and is simpler and shorter than an ordinary will. If any of your property is accidentally left out of your trust at the time of your death, the pour-over will state that it should be delivered to your trust. Your trustee can then administer it along with all of your other property.

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What happens to my living trust when I die?

When you set up your living trust, you are typically the “Trustee,” or the person who is in charge of managing everything in the Trust. This responsibility is similar to the one you have in managing all of your personal accounts when you do not have a trust.

Your living trust should also name someone as “successor Trustee”, usually a spouse, another relative, a close friend, or a professional, such as a fiduciary or an attorney.

At the time of your death, the successor Trustee acts like the Executor under a will. The Trustee collects trust assets, pays debts and taxes, and distributes the remaining trust assets to the trust beneficiaries. The Trustee does all of this without the cost and expense typically associated with a full-scale probate proceeding.

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Are there scams related to living trusts?

If anyone tries to “hard sell” your need for a living trust by overstating the cost or delay of probate fees or making other claims that are hard to verify, please consult with an attorney and ask whether a trust is right for you. 

The most common type of “scam” are people who undersell, e.g. people who offer to set up a trust at a fraction of what a law office would charge. Whereas a professional attorney may charge $2,000, these salesmen offer their service for only $800. Such trusts are often drafted by non-attorneys and reviewed by attorneys in other states. Attorneys call these “trust mills.” They will draft trusts based on templates that are sometimes applicable to your situation – and sometimes not applicable. And they usually do not help transfer any of your property into your trust. 

To avoid falling prey to a trust “scam”, you can follow some of the tips listed in this blog post.

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What is an “AB” trust?

An “AB” trust can help reduce exposure to estate taxes for federally recognized married couples with joint trusts. Upon the death of the first spouse, the estate’s assets would be allocated to two separate trusts. The first trust, sometimes referred to as the “A trust” or the “survivor’s trust,” remains revocable, and the assets are controlled by the surviving spouse. The second trust, sometimes referred to as the “B trust,” “decedent’s trust,” “bypass trust,” or the “credit shelter trust,” becomes irrevocable after the death of the first spouse.

The assets of the B trust can typically be used by the surviving spouse during his or her lifetime, although sometimes the B trust only benefits other people, like the children from the first marriage, instead of the spouse of the second marriage. After the surviving spouse later passes away, the assets of the B trust would then be distributed to third-party beneficiaries, such as the couple’s children.  

The assets of the bypass trust are not considered part of the surviving spouse’s estate. They pass to the third-party beneficiaries free of estate tax by using the estate tax exemption of the first spouse.

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Will I have to pay an estate tax?

Whether you will have to pay an estate tax depends on the size of your estate. 

As of January 1, 2011 (pursuant to the law signed by President Obama on December 17, 2010), the federal estate tax exemption was set at $5 million. Thus, if you passed away in 2011 with a taxable estate of less than $5 million, you would not owe an estate tax. If the taxable estate is greater than $5 million, estate tax would be due at a maximum rate of 35% for the amount above $5 million. 

IMPORTANT NOTE: The $5 million exemption is only in effect for 2011-2012.  On January 1, 2013, the federal estate tax exemption will return to $1 million, and the maximum tax rate will increase to 55%. Congress could change the law before 2013, but if not, many more people will end up with taxable estates.

Your estate may also be affected by the estate taxes of your state: some states “piggyback” on the federal estate tax law, and some states levy estate taxes independently of the federal law. Therefore, it is possible for an estate to be exempt from the federal estate tax but still be subject to state estate tax.

If you have questions about whether your estate will be subject to federal or state estate taxes or whether you should set up an “AB” trust to make full use your and your spouse’s estate tax exemptions, please consult with an attorney.

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In addition to a will and/or a trust, do I also need a financial power of attorney?

You will need a financial power of attorney. A will provides for the distribution of your estate to your beneficiaries after your death. If you become temporarily or permanently unable to manage your financial affairs before your death, a financial power of attorney, also called a durable power of attorney for finances, will designate someone to manage your financial assets in your place.  

Your financial power of attorney designee, called an agent, can pay your bills, collect your income, and manage your personal investments. If you are a business owner, you may authorize this person to manage your business if you are unable to do so.

If you have a trust, assets in your trust are managed by your trustee in the event that you become incapacitated. However, you still need a durable power of attorney for finances, because assets outside of your trust (such as life insurance policies and retirement accounts) could only be managed by the designated agent in a durable power of attorney for finances document.

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Do I need a financial power of attorney if I am married?

A financial power of attorney is useful even if you are married. If you are incapacitated, depending on state law, your spouse may be unable to sell or refinance joint property or otherwise manage your property without a power of attorney.

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How do I create a financial power of attorney?

To ensure that the durable power of attorney meets your needs and complies with state law, consult an attorney licensed to practice law in the state where you live.

If you decide to draft your own power of attorney, your public library may have books with forms and instructions on how to prepare your own financial power of attorney document. Office supply stores and financial institutions may have preprinted forms available, typically designed for a standard power of attorney to be used in the event that you become incapacitated.

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For more information:

Forbes’ 7 Major Errors in Estate Planning

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SevenPonds recommends the following resources for our readers who need more information or assistance in estate planning.

National Organizations

The American Bar Association

The American Bar Association provides a detailed overview of the many facets of estate planning in its website section Estate Planning Info & FAQs. The ABA also offers the public a state-by-state directory of bar associations, which can assist you in finding an estate planning attorney in your area. 

The American College of Trust and Estate Counsel

Established in Los Angeles in 1949, the American College of Trust and Estate Counsel is a nonprofit association of lawyers and law professors with expertise in the preparation of wills and trusts; estate planning; and probate procedure and the administration of trusts and estates. Its website offers consumers free estate planning tools, including an extensive video library.

The National Academy of Elder Law Attorneys

Established in 1987, the National Academy of Elder Law Attorneys is a non-profit association dedicated to helping the elderly and their families plan for long-term needs, including incapacity and long-term care, Medicare and Medicaid coverage, and healthcare decision-making. The organization has about 5,000 members in the U.S., the U.K., Australia, and Canada, and provides an online directory where you can search for an elder law attorney in your area. 

Education and Planning 

ACTEC Estate Planning Essentials 

The American College of Trust and Estate Counsel provides a strong educational video library covering wills, trusts, tax planning, asset protection, retirement assets, and charitable giving.

Attorney Directories

Martindale Hubbell

Martindale Hubbell provides a directory of over 1 million attorneys throughout the United States and is the only national organization that provides peer and consumer reviews for most of the attorneys listed on the site. You can search by area of expertise and location to find an estate planning attorney near you. 

Nolo 

One of the most extensive and respected consumer resources for legal advice online, Nolo began as a publisher of do-it-yourself legal guides in 1971. In the 40 years since its inception, it has evolved into a robust online platform with articles on nearly every aspect of U.S. law, including wills, trusts and probate. It also offers an interactive guide to finding a lawyer that allows you to search by area of expertise and location to find an estate planning attorney near you. 

FindLaw

Similar to Nolo, FindLaw is an extensive online resource that provides consumers with accurate and up-to-date information on most aspects of U.S. law, including estate planning, wills and trusts. It also offers a lawyer directory that allows you to search for an attorney by practice area and/or location and many DIY legal forms, which can be downloaded for a small fee. 

State Bar Association

SevenPonds also recommends that you find your state bar association. Many state bar associations offer free or low-cost legal information, forms, or lawyer referral services for estate planning. Your local bar is often one of the best starting points for state-specific rules.

Notable Estate Planning Experts

Trusted Legal Experts (ACTEC Leadership)

Margaret G. Lodise
As the 2026–2027 President of the American College of Trust and Estate Counsel (ACTEC), Lodise is at the top of her profession. ACTEC is a highly selective, peer-elected national organization of top trust attorneys, and her presidency cements her status as an industry-wide thought leader.

Peter S. Gordon
As the outgoing 2025–2026 ACTEC President, Peter S. Gordon has spent decades shaping national trust law. Based in Delaware and widely recognized as one of the most progressive and business-friendly trust jurisdictions in the United States, Gordon utilizes unique state statutes to shield generational wealth from external liabilities.

Carrie M. Leontitsis
Carrie Leontitsis represents the modern evolution of estate planning. Rather than operating in a traditional legal vacuum, her practice focuses heavily on the integration of legal document drafting (Wills and Trusts) with long-term, proactive wealth advisory and financial planning. She leverages her legal credentials alongside advanced wealth planning designations (like the Accredited Estate Planner® designation) to bridge the historical gap between an individual’s lawyer and their financial planner.

How to Verify an Expert

If you are looking for a local expert with national standing, use these three directories:

ACTEC “Find a Fellow”
The American College of Trust and Estate Counsel (ACTEC) is an invitation-only organization of lawyers recognized as preeminent in trusts and estates law. Becoming a Fellow is considered the most rigorous peer-reviewed credential in the field—candidates are vetted for exceptional skill, integrity, and substantial contributions to the area. Using the “Find a Fellow” directory connects you with attorneys who have met the highest bar of professional recognition, not just a basic license.

NAEPC (National Association of Estate Planners & Councils)
The National Association of Estate Planners & Councils awards the Accredited Estate Planner (AEP®) designation to professionals (often attorneys, CPAs, or financial advisors) who already hold a recognized estate planning credential and have completed advanced graduate-level coursework. Earning the AEP® signals a broad, multidisciplinary commitment to estate planning, demonstrating that the advisor meets rigorous experience and continuing education standards beyond their initial certification.