Biggest Mistakes In Special Needs Planning

Have you ever heard horror stories about families fighting over Grandma's jewelry or getting stuck in a never-ending legal battle after someone passes away? Or about how long it can take to sell a house tied up in the court process? What about family members being denied their inheritance completely? Unfortunately, these situations happen every day. Not even the rich and famous are immune! A simple Google search will pull up dozens of celebrity stories about all the conflict that ensues after they die. But most people dont realize these things are avoidable - if you understand the process. So, if youve thought about creating a will or trust to avoid these outcomes, lets ensure youre fully aware of whats at stake first. Well use a food analogy throughout this article, so our apologies if we make you hungry.Lasagna as an Example of the Difference Between a Will or Trust and an Estate Plan Lets start by getting really clear on what were talking about. Youve probably heard the term estate planning numerous times, but do you really know what it is? Contrary to what you may have heard or read about, estate planning and The documents involved - such as a will or trust - are not quite the same thing. Think of your favorite recipe. Well use lasagna as an example. A lasagna recipe includes a few different components: the ingredients needed to make the dish, how much of each ingredient you need, and the steps you have to take to transform the ingredients into a dish. Without the steps, the ingredients are just ingredientsthey dont create anything.  Estate planning is similar. Your estate plan is the recipe, and the documents are the ingredients. A will or trust may be the pasta or the sauce, but they are not the lasagna. Sure, theyre necessary components of the lasagna, but without the other ingredients and steps, theyre just pasta and sauce. Same with estate planning. If you just create a will or trust, you have documents that are just documents. They dont do anything by themselves. That most people think the documents ARE the estate plan is a common misconception based on a lack of knowledge. Too many people are focused on the documents, even many lawyers, and so think all they need to do is create those documents, sign them, and call it a day. Even so-called financial experts will tell you this. And theres a whole new tech industry based on this premise, with do-it-yourself programs like LegalZoom. AI has even joined the fold. Every single one of these people and companies is talking about the documents, or the ingredients. They are not telling you about the recipe. They are not showing you how to make the lasagna, but rather, theyre telling you about some (not even all) of the ingredients you need. What results are the big messes mentioned above: families in court and conflict, fights over sentimental items, long wait times to sell a house or distribute any of the assets, and even big, unnecessary tax bills.  To truly protect your loved ones and ensure your wishes are carried out the way you want, as easily as possible for the people you love, you need a comprehensive estate plan, not just the documents. The plan lays out not only the ingredients you need, but also in what amounts, and what actions must be taken to make the lasagna. If you havent created a comprehensive plan of your own, or your current plan fails for any reason, know that theres a plan already made for you. Its a plan laid out in your States law, and it may be very different from what you want.  Your States Recipe for Lasagna May Be Gross To illustrate the difference between the States plan for you and one you can create for yourself, lets get back to our lasagna example. Lets say the States recipe for lasagna includes spicy sausage, but you cant tolerate spicy foods. The states plan may contain meat, but youre a vegetarian. Or, it could be that the States recipe includes mushrooms, but your child is allergic to mushrooms. Some ingredients may be missing altogether, and the recipe will probably tell you that you cant even cook the lasagna for months, or even years (goodness, your family will be hungry!). Whatever the situation, its possible that the States plan includes some component that you dont like, or even one that could be disastrous to your family.  In reality, your states plan says how your assets will be distributed, who will get them and in what amounts. It requires a court process, which can be lengthy and expensive, and sometimes assets are frozen until the court process is over. Its also set up for conflict, as your family members - even if youre estranged - are required to get notice of the court proceeding, what assets you have, and are invited to make a claim for your assets. You may not like any of this. If not, heres the good news. The law also says you can create your own plan and decide on your own who you want to inherit your assets and how. If you create your own plan, you get to decide to give money to charitable causes that Matter to you, which the States plan does not allow for. And if you create your own plan, you can also decide whether you want your loved ones to go through the court process. Yes, the court process can be optional.  What Recipe Do You Want to Use? By creating your estate plan, you get to choose your lasagna recipe. You get to choose whether you want meat or veggie, mild or spicy sausage. You get to exclude ingredients your family members may be allergic to. You even get to decide if you want to share your lasagna with someone else. And you get to decide when to cook the lasagna, whether you want it to be eaten tonight or assembled, frozen and saved for another day.  Its entirely possible that you dont think the States recipe is gross and you wouldnt change a thing. But you wont know that until you know the details of the States plan and how those details pertain to you, your assets, and your family. Or it could be that you think the States recipe is completely gross and you want to pick one that you and your family like. Either way, know what you want to create and be clear on how to do it, and do it correctly. Luckily, we can help.  How We Help You Get it Right Weve seen too many families suffer negative, yet unnecessary, consequences after a loved one dies. And if you havent experienced it yourself, chances are you probably will. But with the proper education, beginning with correcting the misconception that estate planning and the documents involved are one and the same, we believe we can break the cycle of strife.  As an Estate Planning Law Firm, we start with education so you are clear on what the States plan is for you, and what you can do to create your own plan that aligns with your values, your goals, your family, and most importantly, that it works when you need it to.  We call it Life & Legacy Planning, and once youve created your Life & Legacy Plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. Book a call with us today to learn more. Contact Entrusted Legacy Law at 412-547-9855 or click here to schedule a complimentary 15-Minute call.

When most people think about estate planning, they focus on their will or trust. But theres a silent saboteur that could completely derail even the most thoughtfully drafted estate planbeneficiary designations. Thats right. If the beneficiaries listed on your retirement accounts, life insurance policies, or bank accounts dont match your estate plan, the law says those designations take priority. That means your assets might go to someone you didnt intendno matter what your will says. Lets break this down and help you avoid one of the most common (and costly) estate planning mistakes. Why Beneficiary Designations Matter More Than Your Will Beneficiary designations are legally binding and are treated as contracts between you and the financial institution. So even if your will says one thing, if your life insurance policy says the money goes to your ex-spouse guess what? Thats who gets it. This is why we always say: Your estate plan is only as strong as your beneficiary designations. Common Examples of Conflicts Here are a few real-life scenarios weve seen: You updated your will to leave everything equally to your kids, but your 401(k) still names your oldest child as the sole beneficiary. You named a now-deceased or estranged relative as a beneficiary and forgot to change You created a trust for asset protection, but your life insurance still lists your children individuallyexposing them to probate or legal challenges. What You Should Do (Right Now) To make sure your estate plan works the way you want it to, here are 3 quick steps you can take today: Review all beneficiary designations. This includes life insurance, IRAs, 401(k)s, pensions, bank accounts, and brokerage accounts. Make sure they match your estate planning goals. If your will says everything goes to your trust or certain individuals, your designations should reflect that. Work with an estate planning attorney. Well help ensure your documents and beneficiary designations are working togethernot against each other. Your Legacy Deserves Alignment Its easy to overlook the fine print, but something as simple as an outdated name on a form could cost your family peace, money, and time. At Entrusted Legacy Law, we specialize in building estate plans that are holistic and heart-centeredbecause your legacy deserves to be protected with care and clarity Dont let mismatched paperwork undo your planning.  Schedule a free consultation with our estate planning team today: https://book.entrustedlegacy.law/#/introcall

One of the most common misconceptions about estate planning is the belief that having a will avoids probate. Unfortunately, this is far from the truth. In reality, a will does not prevent probateit simply provides instructions for how your assets should be distributed through the probate process. Understanding this pitfall can help families make informed decisions and protect their loved ones from unnecessary delays, costs, and stress. What Is Probate? Probate is the legal process that occurs after someone passes away. It involves validating the deceaseds will, settling debts, and distributing assets according to their wishes. This court-supervised process can be lengthy and expensive, often taking months or even years to complete. Additionally, probate proceedings are public, meaning that anyone can access the details of your estate. Why a Will Alone Doesnt Avoid Probate A will serves as a roadmap through probateit tells the court how to handle your assets, but it does not allow your family to bypass the process altogether. Many people assume that once they have a will, their estate is protected and their heirs will receive their inheritance quickly. However, relying solely on a will often leads to unintended consequences, such as: Delays in Asset Distribution  Probate can be time-consuming, often taking several months or even years before assets are distributed. Costly Legal Fees  Court fees, attorney fees, and other administrative costs can significantly reduce the value of your estate. Public Exposure  Since probate is a public process, anyone can access information about your estate, including creditors and potential disputing parties. Family Disputes  The probate process can sometimes lead to conflicts among family members, especially if there are disagreements over the wills terms. If you want to spare your loved ones the burden of probate, consider implementing estate planning strategies beyond just a will. These include: evocable Living Trust  A trust allows you to transfer ownership of your assets into a legal entity that bypasses probate. When you pass away, the assets in the trust go directly to your beneficiaries without court intervention. Beneficiary Designations  Retirement accounts, life insurance policies, and payable-on-death bank accounts can pass directly to named beneficiaries, avoiding probate. Joint Ownership with Right of Survivorship  Property held jointly with another person (such as a spouse) automatically transfers to the surviving owner upon death. Transfer-on-Death (TOD) or Payable-on-Death (POD) Accounts  Naming a TOD or POD beneficiary on your accounts ensures a smooth transfer without probate. Gifting Assets During Your Lifetime  Reducing the size of your estate by gifting assets while you're alive can minimize probate exposure. Take Action Now Understanding the limitations of a will is crucial for effective estate planning. A will alone is not the right solution for most peopleit does not prevent probate, protect assets, or streamline the inheritance process. If you want to ensure that your loved ones avoid unnecessary legal battles and financial burdens, it's essential to have a comprehensive estate plan. At Entrusted Legacy Law, we specialize in creating customized estate plans that help families avoid probate and secure their legacy. Contact us today for a free consultation to discuss your best options. Schedule a consultation now by calling 412-547-9855.