If you have gone through or are currently going through a divorce, your to-do list may seem overwhelming.  However, it is important to make sure you consider updating your existing estate plan as you work through this process.  There are a few quick changes that can be made during the divorce process, while other changes may need to wait until your divorce is finalized.

1. Revoke your existing financial and health care powers of attorney and renew with updated designations.  You likely do not want your former spouse managing medical and financial decisions on your behalf.  These changes can be made even before your divorce has been finalized.

2. Update beneficiaries on retirement accounts and life insurance policies.  Many times, these designations cannot be altered during the course of the divorce process, but it is a good idea to check to make sure.  Once your divorce has been finalized, you should be able to move forward with changes as you wish.

3.  Update your existing will or trust to appoint a new executor or trustee, beneficiaries, and a backup guardian if you have minor children.  If you have an existing will or trust, you likely appointed your spouse to the role of executor or trustee.  Now that you have decided to divorce, you may wish to select a different individual to manage your assets upon your death.  You will also likely leave your assets to your children or other family and friends once your divorce is finalized.

For more tips on managing your estate plan during and after divorce, a recent article in Forbes provides a helpful checklist.

A will is an essential element of any estate plan.  The will takes care of transferring only probate assets.  This means that the will directs how assets that do not transfer automatically upon the owner's death should pass.  Non-probate assets, however, transfer according to how they are titled.  For instance, your life insurance policies and retirement accounts pass automatically to the beneficiaries you have designated upon your death.  Additionally, if you hold assets jointly with your spouse or child, those assets pass automatically to the surviving joint owner upon your death.  Some accounts and real estate can also be designated to automatically "transfer on death" to a beneficiary.  Generally speaking, your will then catches and distributes all other assets through the probate process.

For more information on how titling your assets can impact your estate plan, check out this article in Daily Local News.

Do you really need an estate plan?  Is it really that important?  In a piece contributed to Forbes, Certified Financial Planner® Joel Johnson describes the three main reasons individuals create estate plans:

1. Minimizing probate fees and taxes after death.  There are many tools available to transfer assets outside of the probate process such as designating homes, cars, and bank accounts to transfer automatically upon one's death, setting up beneficiaries on retirement accounts and insurance policies, and transferring assets prior to death.  While Indiana and Ohio do not collect estate taxes, gifts during life and irrevocable trusts can be utilized to avoid federal estate taxes for large estates.

2. Protecting assets during life.  While Johnson's piece specifically refers to planning ahead for the cost of a nursing home (often referred to as "Medicaid planning"), this point can be expanded to include protection of one's interests during life through the use of financial and medical powers of attorney.  While Medicaid planning can be an important part of an estate plan, determining who will handle your financial affairs and medical decisions in the event that you are incapable of doing so is a crucial function of an estate plan as well.

3. Controlling assets.  Controlling how one's assets will be distributed after death is typically the main goal of an estate plan.  In order to have confidence that your assets will be distributed as you wish upon your death, it is imperative that you establish some sort of estate plan.  Without an estate plan, you relinquish control over your assets which often leads to court and familial battles that are less than ideal.

Is the fear of upsetting family members holding you back from completing your estate plan?  You are not alone.  Many of us worry that relatives will disagree over bequests made by will.  On the other hand, some individuals incorrectly assume that no argument will occur.  The behavior of friends and family after a death occurs can never be predicted.  A recent article in the New York Times provides a few helpful tips to prevent fighting among family members after you pass away:

1. Have difficult conversations ahead of time.
2. Think through the trusteeship appointment and any possible conflicts that could arise.  Consider appointing a trustee outside of your circle of friends and family.
3. Include trustee replacement provisions in your trust if you have one.
4. Consider separate trusts for each beneficiary.
5. Provide ethical guidance to beneficiaries in your will.

So, you have gone through the motions, you have made the decisions, you have finalized your will, living will, powers of attorney, and other estate planning documents.....but do you remember where you put them?  A lost estate plan is as effective as no estate plan at all.  Unfortunately, lost estate plans are all too common and can lead to big headaches for your loved ones down the road. 

A vital part of the estate planning process is storing your documents in a safe place and making sure your friends or loved ones know where to find them.  Where should you store your estate planning documents?  While any safe place will do, below are a few good options:

• A fireproof safe in your home.  Make sure your family or executor know how to access the documents.
• A safe deposit box.  Again, make sure family members or appointed agents have full access to the safe deposit box.
• Your lawyer's office.  Some attorneys will store wills on behalf of their clients.  Make sure your loved ones know how to get in touch with your lawyer to access your documents.
• Your local probate court.  By filing your will with your local probate court prior to your death, you can eliminate the risk of losing your will.
• Your doctor's office.  By keeping copies of your health care power of attorney and living will on file with your doctor's office, you save your loved ones time and energy needed to search for these documents when they become necessary.

The most important part of storing your estate plan is letting your friends and loved ones know where these documents can be found for ease of access when the need arises.  It is also a good idea to store a list of your bank accounts, contact information for your financial planner and attorney, email and social media accounts, and all passwords in a safe place that can be accessed by your loved ones in the event of your incapacity or death.  As always, the best way to ensure proper execution of your estate plan is to plan ahead.

You have surely heard about the new tax legislation signed into law by President Trump at the end of 2017, but what does it mean for your estate plan?  Below are a few key changes to the tax law that can impact estate planning:

• The annual federal gift tax exemption increases to $15,000 this year, to be adjusted for inflation each year thereafter.  This means that each individual can give up to $15,000 in gifts to as many individuals as they would like in 2018 without touching their lifetime exclusion amount.
• The lifetime gift and estate tax exclusion amount increases to $11,200,000 for each individual as of January 1, 2018, and will increase with inflation each year through 2025.  This means that each individual can pass assets worth up to $11,200,000 during life and/or at death without incurring federal gift or estate taxes.
• The lifetime exclusion amount is still portable, meaning a deceased individual's unused portion can be utilized by a spouse.  As such, the exclusion amount for a married couple for 2018 is effectively $22,400,000.
• On January 1, 2026, the lifetime exclusion amount will drop back to the 2017 level ($5,490,000 adjusted for inflation) per individual.
• The federal estate tax rate remains 40% for those who exceed the lifetime exclusion amount.

Wishing you all the best for a happy and healthy 2018!

This week marks my fourth year in business, and I could not be more grateful for my friends, family, and clients who have made this endeavor so fun and rewarding!  Over the past four years, I have had the opportunity to assist over 280 individuals with their estate planning needs.  Thank you to everyone for your support and referrals along the way.  I am looking forward to year five!

For new parents, developing an estate plan can seem like a daunting task.  Where do you even begin to make sure that your little ones are taken care of if the unthinkable happens?  The four special considerations below provide a good starting point for parents of young children who are ready to get their estate plan in order:

1. Appoint a guardian in your will to take over parenting responsibilities in the event that you and your children's other parent pass away.  Although this is typically the hardest decision for parents to make, a court will choose an individual to take over if you fail to name a guardian on your own.

2. Select a trusted individual or financial institution (a trustee) to handle your assets on behalf of your children if you pass away while they are still young.  This could be the guardian you have appointed, or you may choose another individual to act as trustee if you prefer to keep powers separate.

3. Choose an age or life event or achievement at which time you would like your children to receive your assets outright without the involvement of a trustee.  Many parents prefer to withhold outright distribution of assets until children exceed college age, but distribution could also be contingent upon milestones such as graduation, marriage, or purchase of a home.

4. Check your listed beneficiaries on life insurance, retirement, and other types of accounts to make sure your primary and alternate beneficiaries are up to date.  Any such beneficiary designations will occur automatically upon your death and will trump gifts made in your will.

If you take the time to think through these four considerations, you are well on your way to making sure your children are taken care of by your estate plan.

What is the biggest mistake people make when putting together an estate plan?  We forget that an estate plan should not only be about writing a will to decide who gets our assets when we die, but it should also be, possibly more importantly, about handling our personal affairs while we are still alive in the event of incapacity.

A recent piece in Forbes outlines a concise list of documents to consider creating in addition to a will when setting up your estate plan.  These include:

• Medical Power of Attorney
• Living Will
• Durable Power of Attorney
• Revocable Trust
• HIPAA Release
• Organ Donation Authorization

Don't forget, your estate plan should not just take care of others - it should also take care of you!

Thinking about an estate plan, but not sure where to start?  If you are in the early stages of establishing your estate plan, below is a checklist of the major decisions you will need to make:

-Beneficiaries: Who will get your assets (house, cars, personal property, money, etc.) when you pass away?  Your spouse, children, siblings, friends, a charity, a combination of these?  Are there any specific items such as jewelry or family heirlooms that you would like a particular individual to receive?  If you are married with children, consider where you would like your assets to go in the unlikely event that your spouse and children predecease you.

-Trustee: If you have young children, it may be beneficial to appoint a trustee to manage and distribute assets on behalf of your children until they reach a certain age.  This trustee will be in charge of a testamentary trust that will be established in your will.  Your trustee will distribute assets for the benefit of your children until your children reach an age or life stage as determined by you.  Once your children reach the threshold you establish, the trust will terminate and your assets will be distributed to your children free of trust.

-Guardian: If you have at least one minor child, you will want to appoint a guardian in the event that you and your spouse or your child's other parent pass away before your child reaches age 18.  Otherwise, you leave this decision up to a court.

-Executor/Personal Representative: Testators typically appoint their spouses or close family members to this role which involves distributing your assets according to your will.  It is always a good idea to list a backup friend or relative just in case your first choice is unable or unwilling to serve.

-Power of Attorney for Medical/Financial Decisions: Typically, spouses serve as agents for each other when it comes to making medical or financial decisions in the event of incapacity; however, this does not have to be the case.  Naming an alternate agent for such decisions is a good idea in the event that your preferred agent is also incapacitated or otherwise unable to serve when needed.  You can select different individuals to make medical and financial decisions on your behalf, these powers do not need to be held by one individual.

Once you start thinking about these major decisions, you will be well on your way to putting together an effective estate plan.

If you are like many Americans who do not have an estate plan in place, your hesitance to move forward with a plan may stem from a lack of understanding of the probate process and from feelings of intimidation related to the gravity of the decisions to be made.  A recent article on financial news website MarketWatch can help to boost your understanding of the probate process and make you feel more confident as you start thinking about your estate plan.  In this piece, estate planning experts provide a comprehensive summary of information to guide individuals through the three common estate planning questions below:

1. How do I avoid probate?

2. Do I need a lawyer to write a will?

3. How do I pick an executor for my will?

While the idea of constructing an estate plan can be overwhelming, developing your understanding of the estate planning and probate processes will make it seem less formidable.

Of all people, it would seem that celebrities and the ultra-wealthy would have access to every resource they might need to establish an elaborate and air-tight estate plan.  Unfortunately, that is not always the case.

Most recently, Alan Thicke of "Growing Pains" fame passed away with a seemingly solid plan to split his assets between his children and his third wife, Tanya Callau Thicke.  However, an ugly battle has erupted between the parties stemming from disagreements related to Thicke's prenuptial agreement with Callau and the trust Thicke had established during his lifetime.  For more on this story, check out this piece from CNN.com.

The process of creating a will can be intimidating, but it doesn't have to be.  Kiplinger's Personal Finance has provided a simple six-step approach to creating a good will:

1) Sort out all of your assets including real estate, financial assets, personal items, and other possessions such as automobiles to help you get started.

2) If you have minor children, then select a guardian who will take care of your children if you pass away.

3) Designate beneficiaries who will receive your assets once you pass away.  This could include family members, friends, or charities.

4) Select an executor who will be in charge of distributing your assets according to your wishes.

5) Meet with an estate planning attorney to make sure your wishes are properly reflected in your documents.

6) Update your will from time to time as you go through life changes.

While thinking about death is probably not at the top of your to-do list, breaking down the pieces of a will into these six simple steps can make the process of creating a will much less daunting.

Thinking about creating an estate plan?  The Vanguard Group, Inc., recently released a helpful piece listing five facts that everyone should know about estate planning:

1. If you own anything, you have an estate.

2. Your estate plan comes into play if you are incapacitated or if you pass away.

3. If you fail to plan, your state's laws will make decisions for you.

4. Update your estate plan regularly, as your plan is not final until you become incapacitated or pass away.

5. Although DIY estate planning can save money now, generic forms may be inappropriate for your situation, costing your loved ones in the long run.

Whether you are planning a wedding this year, or you have been married for 50 years, this helpful article from A Practical Wedding outlines four major planning discussions you should have with your spouse.  Writing your wills, purchasing life insurance, preparing living wills, and documenting various aspects of life can go a long way toward making an unexpected situation much simpler for your spouse or other loved ones to manage.

Thank you for a wonderful 2016, and best wishes for a safe and happy 2017!

After this month's election of Donald Trump as the next President of the United States, many Americans anticipate changes to the tax code.  On the campaign trail, President-elect Donald Trump vowed to eliminate the estate or "death" tax.  So, what does this mean for you?

For 2016, the unified credit (sometimes referred to as the estate and gift tax exemption) is $5.45 million per person, or $10.9 million for a married couple (this will increase to $5.49 million per person, or $10.98 million for a married couple in 2017).  This means that only assets held at the time of death above this threshold are subject to estate taxes as the law currently stands.

If enacted by Congress, Donald Trump's proposal would eliminate the current estate tax, but would impose a capital gains tax on assets valued at over $10 million at the time of death.  A recent article in Forbes provides a synopsis of Donald Trump's proposal.  What will actually happen remains to be seen, as an overhaul to the entire tax code requiring compromises will likely be necessary before any changes will be made by Congress.

A HUGE thank you to all of my family, friends, and clients as I celebrate three years in business this week!  I feel very lucky to have the opportunity to do what I love, and I am truly grateful for all of the support, advice, and referrals you have provided over the past three years.  During these three years, I have had the pleasure of helping nearly 200 individuals with their estate planning needs!  I look forward to meeting and working with many more wonderful people in the years to come.  THANK YOU!

Summer is winding down, kids are heading back to school, and sports, clubs, and other activities are starting up again.  As the new school year begins, now is the perfect time to think about your estate plan.  Respected personal finance publication Kiplinger recently shared five important reasons to establish an estate plan:

1. Maintain control over what happens to your assets after you pass away.

2. Minimize the negative impact your death could have on a business you own.

3. Prevent information about your assets from becoming public after you die.

4. Prepare in advance for an unforeseen disability.

5. Take inventory of your finances to plan for the future both during your lifetime and after your death.

Click here to read further.

School is out and summer is finally here!  For many, that means it's time for a long-awaited vacation away from home.  Whether you are heading to Disney World, taking a cruise, or relaxing at a nearby lake this summer, make time to review your estate plan before you take off.  Below is a quick and easy checklist to make sure your plan is ready to go:

1. Review Beneficiary Designations - If you have a will, you have probably designated beneficiaries to receive your probate assets (meaning assets that will pass through the probate process instead of automatically) if you pass away.  Keep in mind that non-probate assets such as retirement accounts, life insurance policies, and other financial assets may include beneficiary designations as well.  Transfers to these beneficiaries will occur almost automatically and outside of the probate process upon your death.  Take a quick look at your probate and non-probate beneficiary designations to make sure your assets will transfer according to your current wishes if something happens to you.

2. Update Powers of Attorney - It is important to make sure you have powers of attorney established in the event that you are in an accident and need someone to make medical or financial decisions on your behalf.  If you have not established powers of attorney and something happens to you, a court will intervene to appoint someone to handle these decisions on your behalf.  This process can be expensive and time consuming for your loved ones.  Planning ahead will save time, money, and headaches for everyone involved.

3. Designate a Guardian - If you have young children, you will want to make sure you have made a guardianship appointment in your will.  If you do not select an individual to take over guardianship of your children in the event of your death, a court will make a selection instead.  Additionally, you will want to select a trustee to manage any assets you plan to pass to young children should something happen to you.  This includes assets passed by will, or through life insurance polices, retirement accounts, and other non-probate assets.

4. Make Documents Accessible - Before you leave for vacation, store your estate planning documents in a safe place, and let your loved ones know where they can be found and how they can be accessed if necessary.  A lost or hidden estate plan will be of no use to anyone.

5. Don't Wait! - You have spent months or even years planning and saving for your vacation, so why put off updating your estate plan until minutes before you leave?  Updating your estate plan doesn't have to be arduous - get started today!

Have a safe and happy 4th of July weekend!

After the shocking news of Prince's death and subsequent reports that he appears to have died without a will or other estate plan in place, you might be wondering what this all means.  Reuters recently published a comprehensive piece on the impact Prince's inaction could have not only on the distribution of his assets, but on his legacy for years to come.