A Power of Attorney is used to appoint someone to make financial decisions on your behalf in the event you are unable to do so for yourself. Our finances are often the part of our life that we hold close and are reluctant to let go of. Perhaps that’s the reason that deciding on a who will make those decisions is so difficult. But as with all estate planning, some sort of decision is better than no decision.

We’ve discussed the important of a will in determining who gets your assets when you die. However, your 401(k)* or IRA, along with other assets like life insurance and annuities, often have a Beneficiary Form.

This form will take precedence over what your will says - hence the subject line. Because of that, often the beneficiary form is the most crucial document - and with that comes the opportunity for costly mistakes…

One of the most common questions I get on the topic of estate planning is “Do I need a trust?”

When I talk about a trust here, I am talking about a standard Revocable Living Trust. I am not talking about the more complicated irrevocable trusts. One of the main purposes of an irrevocable trust is to avoid estate taxes. With the federal exemption currently over $11 million per person, this is not as big a concern as it used to be. 

So why might you need a trust?

“I would just love to spend a few hours this evening having hard conversations about what happens if I die.” – No one ever

This is not a fun or enjoyable topic. It involves planning for an event that you hope doesn’t happen prematurely and is a long way off, so it gets booted to the bottom of the to-do list. From experience, improper planning can have dire consequences even for families that seem to have simple family situations.