Avoiding Common Estate Planning Mistakes: A Message from Jeff Bellomo

When that extra bit of money from your tax refund lands in your bank account, (kinda feels like Christmas, doesnt it?)  it's easy to start dreaming about all the ways you can use it. Financial experts may tell you that it's a chance to pay off debts, tuck away savings for an emergency, or add to your retirement savings. You, on the other hand, may want to splurge on something special. However, there's an often-overlooked option that not only provides immediate satisfaction but ensures long-term benefits for both you and your loved ones: estate planning.Estate planning might sound like a complex and daunting chore reserved for the wealthy, but it's actually a straightforward and crucial process for everyone. In its most basic terms, estate planning involves making a plan for what happens to your belongings and finances after you're gone, or if you become incapacitated. Think of it as creating a roadmap for your loved ones to follow, ensuring they're taken care of and know exactly how to handle your estate according to your wishes. After all, someone will have to do something with your stuff after youre gone, and if youre the one who takes care of it while you can, you can save your loved ones a lot of pain. And, make sure you are cared for in the way you want, by the people you want, if you become incapacitated.And by the way, proper estate planning covers much more than just money and personal belongings, but well delve into that in just a bit.Why You Need an Estate PlanNot only do you need a plan for what happens with your finances and personal items after youre gone or become incapacitated, but you also need an estate plan if any of the following are true:You care about the people in your life who will handle things for you, if you cannot. First and foremost, estate planning isnt something you just do for yourself, its truly an investment you make for the people you love. If it feels daunting to you, imagine how they will feel left with a big confusing mess when something happens to you. And, its one of those things that you must get handled before you need it because by the time you need it, its too late, and youve just left the people you love the most with a big mess.Thats why we say that estate planning is about protecting your family. It's about protecting their time, energy and attention, and leaving them with a gift of love. Its a way of saying "I love you" that goes beyond words, providing them with security and guidance during a difficult time. By making your wishes clear, you can keep them out of court, prevent potential conflicts and ensure your loved ones are supported exactly as you intend.You want your wishes to be honored. With an estate plan, you have the power to dictate exactly how you want to be cared for if you are incapacitated, or who makes decisions for you if you cannot. If you would not want to linger in a hospital bed for years like Terry Schiavo did before her death, you must create a plan. Otherwise, the people you love could get stuck in a court process fighting over your care. You also get to say who inherits your assets, from your home and savings to sentimental items. Planning ensures there isnt any confusion and guarantees that your possessions end up in the right hands. Planning also makes it clear who should handle things after you are gone, and it makes it as easy as possible for the people you choose. You want to save money and time (for yourself and your family). Dealing with the court if you become incapacitated or when you die is time-consuming, can be expensive and is totally public. Without a clear plan in place, you or your family may face costly legal battles and time-consuming administrative hurdles. Your careful planning now can save them from this stress and financial strain, making the process as smooth as possible. In addition, careful planning ensures that you save yourself money by avoiding unnecessary costs if you are unable to care for yourself. You have minor children. If you have minor children, consider who is home with them when you arent. Would that person know what to do if you didnt make it home? Or would the authorities show up at your house and have to take your children into the care of protective custody/strangers while they figured it out? If the idea of this terrifies you like it does most parents, you need an estate plan. Most parents of minor kids are overwhelmed with the demands of everyday life and dont stop to think that estate planning applies to them. A common misconception is that planning is only for older folks who know their mortality is staring them in the face, and young parents think thats too far off to warrant any consideration. Thats a mistake. Death happens to everyone and incapacity can happen before it, no matter how old you are right now. Dont leave your kids at risk.So now you know you need an estate plan but arent sure what to do next. If you feel like the process seems daunting, dont worry. Taking that first step is easier than you might think. Put Your Tax Refund To Work You might consider using your tax refund to do your estate plan on your own or opt for a cheap online service. While these options can seem cost-effective at first glance, they dont offer the comprehensive coverage and personalized advice that your unique situation requires. Instead, investing your refund in working with a heart centered, holistic attorney with a process in place for ensuring that your plan works throughout your lifetime is a much wiser choice. We will get to know you, your family dynamics, and your assets, and then help you choose the right plan for you both now, and into the future. Creating a will or a trust isnt a one and done thing you do, and then put it on a shelf or in a drawer and never look at it again. When you do that, your plan is almost guaranteed to fail when the people you love need it. In that case, its almost better to do nothing because then at least you have it on your to-do list. False security is one of the greatest risks of estate planning.We will help you navigate the law, and also help you tailor your estate plan to fit your specific needs, as well as provide peace of mind knowing that your estate plan is thorough and legally sound. Remember, when it comes to safeguarding your family's future and ensuring your wishes are accurately reflected, the value of expert guidance is well worth the investment.At the very least, your attorney should help you create the relevant documents, including:Creating a Will: A will is a document in which you detail the distribution of your assets and designate guardians for any minor children. It serves as your voice, ensuring your assets are allocated as you desire. Setting Up a Trust: For greater control over the distribution of your assets, a trust is invaluable. It not only allows for precise management of how and when your assets are distributed but can also offer tax advantages and circumvent the lengthy and public probate process. In addition, and maybe more importantly, a trust will help your loved ones avoid a lengthy, expensive,  and totally public court process, which can cost your family significant amounts of time, energy and attention. Selecting Guardians and Executors: A key component of estate planning is choosing individuals who will execute your wishes and look after your children if you are unable to do so. These crucial choices help safeguard your family's future. And if you want to go beyond merely choosing people to raise your kids, you need a thorough Kids Protection Plan, which takes into account anything that could happen (i.e., youre in a car accident and theyre with a babysitter at home). A Kids Protection Plan also ensures your kids are raised by the people you want in the way you want, that someone youd never want to raise your kids is able to, and that the right people are able to get emergency care for them if youre traveling without them.Managing Taxes and Expenses: Effective estate planning can significantly lessen the tax load on your beneficiaries, allowing a larger portion of your assets to benefit them directly instead of going towards tax settlements.These are all undoubtedly important, and what most estate planning attorneys will do for you. However, a Estate Planning Lawyer will go a few steps further, ensuring that investing your tax refund in an estate plan is the very best investment youll make all year. In fact, every Estate Planning Lawyer promises to deliver a plan to clients that works throughout your lifetime. They do this by: Empowering you to choose the right plan that fits your unique family situation, values, and budget (most lawyers will tell you what you need); Ensuring your assets are inventoried and dont end up lost (most lawyers wont tell you that this happens - a lot - to the tune of billions of dollars every year); Creating a Kids Protection Plan, a comprehensive plan outside of your will for what happens to your kids if something happened to you (most lawyers dont even think to do this); Being a trusted advisor for your family, so they have someone to turn to for help when something happens to you (most lawyers dont ever make contact with your family after youve completed your estate plan);  Capturing your memories, stories, values and family traditions so they are passed down to the next generations (most lawyers dont think to do this either); and A system for updating your plan at least every three years to make sure your plan stays up to date so as your life changes and the law changes, your plan works when you need it to (most lawyers treat their clients as a one and done transaction, never checking in again and letting your plan go stale). What If I Didnt Get a Refund This Year?Now you may be thinking, bummer, I didnt get a refund this year. Know these two things: 1) Estate planning is always a wise investment whether you get a refund or not; and 2) A Estate Planning Lawyer, using a unique process called Life & Legacy Planning, can help you organize your finances so you are more likely to get a refund next year, or at least not have a big unexpected tax bill, if thats what happened this year.. A Estate Planning Lawyer will also help you get more financially organized than youve ever been before, so that you make the very best decisions about the allocation of your resources for yourself and the people you love. Estate Planning: The Ultimate Expression of LoveAmong all the ways to use your tax refund, estate planning with a Estate Planning Lawyer ensures that your love and care for your family endure long after you're gone. It's an act of foresight that not only secures your family's financial future but also leaves a legacy.Contact Entrusted Legacy Law at 412-347-1731 or click here to schedule a complimentary 15-Minute call. This article is a service of Entrusted Legacy Law. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice.

If youre a father, you've always strived to provide the best for your family, ensuring their well-being and securing their future. However, even the most well-intentioned plans can falter if you overlook the complexities of estate planning. So, this Fathers Day, lets celebrate all of you dads and explore some common pitfalls that fathers often encounter, then offer practical strategies to navigate them successfully.Heads up before we dive in; Well provide some stories below that illustrate what happens when a dad hasnt created an estate plan or hasnt updated it over time. The names of the people below are made up, but the scenarios well describe are common. Pitfall No. 1: ProcrastinationAs a father, the weight of responsibility for your family's well-being often rests heavily on your shoulders. However, even the most well-intentioned plans can fail if you overlook the complexities of estate planning. One of the most significant pitfalls is procrastination, or postponing the process under the assumption that you have ample time or that your assets are currently too modest to warrant formal planning. But the truth is that estate planning is crucial for individuals of all ages and asset levels! Unexpected events can occur at any time, leaving your loved ones in a bad situation if you haven't properly documented your wishes.Take for example, John, a 45-year-old father of three, who put off creating a will, thinking he had decades ahead of him. You cant really blame him, can you? Many of us are in the same boat. However, he passed away tragically and unexpectedly, leaving his family to deal with his affairs in the court process called probate. The probate process was lengthy, and his assets were frozen and unavailable for his kids until the court process played out. In addition, probate drained his assets, so there wasnt as much to leave his kids in the end.We doubt this is what John would have wanted.So dads, to avoid the procrastination trap, it's essential to approach estate planning with a sense of urgency. Start the process as soon as possible and review your plan regularly to ensure it remains aligned with your evolving circumstances and family dynamics (keep reading for more information on how we can help!). Pitfall No. 2: Failing to Update Your Plan Over TimeThis brings us to another pitfall: failing to update your plan after significant life events, such as marriages, divorces, births, or deaths. Life is inherently dynamic, and your estate plan should reflect those changes. Your plan should reflect your life as closely as possible, otherwise it could become ineffective or even invalid. And if that happens, you end up like John, even if you already have an estate plan.Updating your estate plan over time is crucial. So, make a habit of reviewing your plan at least every three years, preferably annually, or whenever a major life event occurs. When you work with me, we will help you ensure your plan accurately reflects your current wishes and aligns with any changes in state or federal laws. Pitfall No. 3: Not Communicating With Loved OnesContrary to common belief, estate planning is not solely about legal documents, such as a Will, Trust or Power of Attorney. Documents are merely the byproduct of good estate planning. The real power of estate planning is in having open and honest communication with your loved ones. However, many fathers make the mistake of keeping their estate plans a closely guarded secret, leaving their families in the dark about their intentions and wishes. This lack of transparency can breed misunderstandings, conflicts, and resentments that can undermine the effectiveness of your plan and strain family relationships.Lets look at Davids story for a greater understanding. David, a successful business owner and loving father, always assumed his oldest son would take over the family business after his passing. So, Davids estate plan included a provision wherein his oldest son inherited the business. When David died, however, his son revealed that he had different career aspirations and didnt want to run the business. This led to family conflict - because David didnt have a Plan B in his estate plan.As a result, the family had to go to probate court, spending lots of time, energy, attention, and money, to get the business transferred to the one family member who wanted to run the business. Had David discussed his wishes openly, the family could have addressed their concerns together and arrived at a mutually agreeable solution that would have saved them the unnecessary hassle of probate court.So, what can you learn from Davids story? Share your wishes with your family members, explain your reasoning, and address any concerns they may have. This open dialogue can foster a deeper understanding and strengthen the bond between you and your loved ones. It also allows your loved ones to provide valuable insights and perspectives that can help refine and improve your plan. What a loving gift to give your family! Pitfall No. 4: Not Working With a ProfessionalThe last pitfall Ill address is going at it alone or doing your plan cheaply online. As we pointed out above, estate planning is not just about creating a few documents and putting them away on a shelf until something happens. Theres much more to it.Instead, work closely with a life and legacy firm like ours, who can help you craft a plan that fits your unique family dynamics, wishes and assets, as well as keep in touch over time to ensure your plan is updated and works when you need it to. At our firm, we support you with all this and more, including helping you structure your plan in a tax-efficient manner, minimizing the impact of taxes on your assets and ensuring your loved ones receive the maximum benefit from your estate.We also help you address any unique circumstances within your family, such as a family business, a child with special needs or a family member with addiction issues, ensuring that your plan is tailored to meet the specific needs of your loved ones.So, dads, after reading this, we hope its clear that estate planning is a profound expression of your love and responsibility as a father. By taking action now, you can navigate the pitfalls and create a lasting legacy that transcends your lifetime. Remember, your knowledge and attention to detail today can shape the future of your loved ones for generations to come.How We Support You to Avoid These Common PitfallsAs a Estate Planning Law Firm, we understand that protecting your family goes far beyond just legal documentation. Our mission is to empower you to enshrine your hopes, values, and profound love for your children into a comprehensive plan that preserves your family's integrity for generations to come. We take the time to truly understand what family means to youthe struggles you overcame, the values you hold dear, the future you envision. And then we help you craft a tailored estate plan that meets your needs and stays updated over time.So this Fathers Day, give yourself and your children the greatest gift: your love. Book a call with our office to learn how we can support you, and by extension, your entire family. Simply click on the scheduling link here:Contact Entrusted Legacy Law at 412-347-1731 or click here to schedule a complimentary 15-Minute call. This article is a service of Entrusted Legacy Law. We dont just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life and Legacy Planning Session, during which you will get more financially organized than youve ever been before, and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life and Legacy Planning Session and mention this article to find out how to get this $750 session at no charge. Please note this is educational content only and is not intended to act as legal advice. 

As an estate planning and elder law attorney, I am becoming increasingly frustrated to see how the long term care system is failing our seniors. I had a conversation with a client this week, who feels that the government programs supporting seniors are broken. My clients mom is in a nursing home and we are assisting them to get Medicaid eligibility to pay the nursing home. What he said really resonated with me, because people are continuing to go broke due to the long term care system.In a recent podcast, I discussed the article that was published in the news, about the baby boomers being the wealthiest generation in history. However, 70% of the wealth is concentrated in 7% of the population. Most of the people we work with are the middle-class baby boomers, who are part of the other 93% population. They own their house and have some money in the bank. Most of them have worked for 40-50 years trying to save a nest egg for their retirement. They have been sold this story that they will have healthcare coverage with Medicare when they retire at 65, and believe they will be taken care of should they get sick.Medicare Wont Pay for Long Term CareUnfortunately, Medicare wont pay for long term care. We help many families every month, going through the process of trying to gain eligibility for Medicaid benefits to pay for long term care. This requires some dramatic legal moves and I can appreciate why my clients feel so frustrated.On the long term care website, I read that around 70% of baby boomers are going to need some form of long term care if they get dementia or Alzheimers. Added to that, 20% of those seniors will need long term care for more than five years. Given the cost of nursing homes in this country, which is $150,000 a year, this is unaffordable for most families.The Future is Uncertain, But We Can Still PlanWe dont know what the future holds, and we cannot prevent the likelihood of getting dementia. However, we can take steps to protect ourselves and avoid going broke. If I end up with dementia, I want to make sure my wife has a house to live in and some money in the bank. We meet many families who want to protect themselves from this system, and ask us to advise them. Some people tell us they already have a will and want to know why they need an estate plan. I understand their confusion when I advise my clients that they need more than a Will. It is unfortunate that the attorney they worked with previously, only offered them a Will. This could be because they met with attorneys who work with clients that have a high net worth. They may also have gone to a general practice law firm, who deals with divorces, traffic tickets and Wills, and not estate planning. The attorneys, financial advisors, tax man and nursing homes know that there are ways to avoid seniors going broke, but none of them are doing anything to help.A Will Is Not EnoughA Will only states who will get your stuff when you pass away. Estate planning is not only about who gets your stuff when you pass away but it helps to provide a sense of security, by protecting your house and money. You have worked for your money, and you should keep it not the government or the nursing home. I want to ensure you have a peaceful retirement, without worrying about going broke to pay for long term care. If you need more than five years of long term care, you definitely want to protect your assets.Many of my clients like to use trusts, and I recommend putting your house and some money into an irrevocable asset protection trust. This means that after five years, the house is safe from any claims from the nursing home. You would have to give up access to the equity of the house, assuming of course you wont need to do a reverse mortgage. You also wont receive a distribution from the trust. However, you can still live in your home, but the difference is your house is now protected from the nursing home if you get sick.You Can Avoid ProbateIf you have IRAs, they will need to be beneficiary designated, and will avoid probate. You can put any other money you have that you want access to, in a revocable trust. Having your house in the asset protection trust and money in a revocable trust, will allow you to avoid probate. Your life wont change, but a large percentage of your net worth is protected from long term care costs. This in my opinion is a much better estate plan for you.We will help you to establish a Power of Attorney, as well as health care planning. The result of planning like this, is that you dont have to worry about the nursing home, or probate. We also teach your children, who are the future executors and trustees, about their future roles and responsibilities. Handing legal documents to your adult child and expecting them to know what to do is unfair and unrealistic. Do The Right Thing Get An Estate Plan To learn more about doing good planning for your family, come to one of our Three Secrets Workshops. I am sure you want to have a good retirement without worrying about anything intercepting your inheritance to your kids. Our free workshops will teach you all you need to know to make informed decisions. You will then be able to have the best estate plan for you and your family. By offering the education in a classroom setting, it makes it more affordable for you to do estate planning. Visit sechlerlawfirm.com/workshops to register for a workshop now.