If you think that estate planning is something that can wait until your more “mature” years, you’re not alone. Unfortunately, many people share this same impression. After all, what is there to plan for if you have no spouse, no children, and only modest assets?
Plenty!
There’s much more to estate planning than merely deciding who gets your assets and other possessions when you die — putting it off until your later years isn’t a sound approach. Change is part and parcel of living, and as we move through life, we experience changes that can thoroughly alter our circumstances and require an entirely different approach to the future.
In the newest episode of A Place of Possibility, Richard and Angela will be talking to estate planning attorney Kelly Balamuth. Together they will discuss some key life stages that warrant a closer look at your legacy planning preparations to ensure that they accurately reflect your wishes. And, if you’re still of the opinion that estate planning isn’t necessary until you get married or reach your golden years in life, we’re confident that Kelly will change your mind.
A Glance at this Episode:0:00 Introduction2:06 Before we get started, here’s some insight on our country’s rapidly approaching debt ceiling deadline, including our recommendations for weathering any jolts in the financial markets that may result from it. 10:34 Please join us in welcoming our special guest, trust attorney Kelly Balamuth to the show! She has been named a super lawyer every year for over a decade – Wow! 12:34 Wondering when you should start your estate plan? You should think about it as soon as you’re an adult! 13:27 Many people feel that an estate plan isn’t necessary when you’re single. But who would make decisions for you if you were incapacitated? 14:38 While what happens to your material possessions in the event of your death might not be a pressing concern, but if you don’t have an estate plan, whoever inherits from you will have to go through an expensive court process. 14:56 When a child reaches the age of 18, their parents’ rights change dramatically. Here’s what Kelly recommends doing to accommodate this change. 17:06 Are you single and have a 401k? Did you know the default beneficiary would be the nearest relative under the law if you don’t name one yourself? 18:01 Getting married brings about a number of new considerations, like who do you want to make legal or medical decisions for you? Listen in as Kelly talks through the most critical estate planning concerns. 19:09 Having a trust is crucial because it says what happens to your stuff when you die, but also if you become incapacitated. 20:32 All too often, well-meaning people create their trusts but neglect the very important step of funding the trust! 21:58 Prenuptial agreements don’t just protect the interests of a wealthy spouse entering a marriage. They’re also important to help ensure children from a first marriage aren’t left out. 23:52 Having children will have a direct impact on your estate plan. Here are some factors to consider. 25:03 In order to discourage potentially self-destructive financial behavior, parents structure their children’s inheritance like this example Kelly shares. 26:13 Kelly puts together a “kids’ protection plan” for her clients, including essential details many parents wouldn’t consider. 27:53 Guardians and trustees assume vastly different, but symbiotic roles. They can be the same person, but you may not want them to be. 28:51 Getting divorced limits your ability to move assets around, but here are some steps to minimize your future ex-spouse’s control over important aspects of your life — financial and otherwise. 31:58 Don’t ever name a minor as a beneficiary on your life insurance policy! Have it paid to a trust instead. 32:37 Entering retirement doesn’t always mean you’ll need to make changes in your estate plan, but you might need to update if there were significant life changes or law changes. 34:19 The death of a spouse triggers the need for a thorough examination of your estate plan. You may have to update beneficiaries if you didn’t list more options. 36:16 It’s fairly common for a trust to afford a surviving spouse quite a bit of latitude, but a marital trust requires an entirely different approach to estate planning. 38:05 There are pending changes to the estate tax exemption limit, but you need to call Kelly if you’re nearing the $13 million limit. Here’s what you need to know. 39:05 If you’re moving to a new state, reviewing your trust may not seem necessary, but it is important because of different state laws. 40:43 Kelly takes an extra step with her clients by videotaping a message post-planning, which helps their legacy and memory live on.
