Estate Planning
Estate planning is planning for life and death. Since we're all a little squeamish about death, especially when we're the ones involved, there is a natural tendency to avoid the Estate Planning process. It is this discomfort that leads to procrastination and results in the fact that only about two out of every five Americans have a will.
The fact that so few Americans have a will is ironic. We spend most of our lives working hard to earn enough money and property to make the lives of our children and spouses, friends and business associates happier, wealthier, and more secure than our own. Yet, most of us fail to do the one thing that's essential to make sure those we care about receive the fruits of our labor - we fail to plan for them because we fail to plan our estates.
Estate planning pays real dividends in results achieved, in dollars saved, and most important, in security and peace of mind. Moreover, estate planning doesn't have to be expensive, traumatic, or even especially time-consuming. Estate planning often saves money by reducing taxes and the expenses of death. It saves time by speeding the process by which property passes from you, at your death, to your family, friends, or anyone else you want to have it. Finally, estate planning allows you to make the critical decisions about the disposition of your property and the care of your family. In a very real sense, estate planning makes you the Boss.
ESTATE PLANNING BASICS
I . What is an "estate?"
Almost everyone, single or married, has an estate. It consists of all your property, including for example:
* real estate, for example, a home;
* personal property such as cars and furniture;
* intangible property such as bank accounts, stocks and bonds, and pension and social security
benefits, and the face value of your life insurance policies.
An estate plan is your instructions for the distribution of all your property after you die.
II. Isn't a will all I need'?
Not necessarily. While a will often is the most important piece of an estate plan, it's not the only part. A Will distributes your assets upon your death. Yet, there are a number of options in addition to, or in place of, a will for distributing property. Beneficiary designations, joint ownership, and trusts can also be used to transfer property upon your death. In addition to other estate planning objectives of the client, choosing an appropriate asset transfer method is a crucial part of a properly planned estate.
III. How can an estate plan distribute my property quickly?
Everyone's estate is different and requires individual attention. Many people need to control, or even stagger, payments to their loved ones for various reasons. Some people want their beneficiaries to receive the property left to them as quickly as possible. The various factors in each individual's life need to be considered when planning your estate.
Estate planning can also minimize expenses by keeping the cost of transferring property to beneficiaries as low as possible. For example, choosing a competent executor for your estate and giving the executor the necessary authority to carry out your directives can save money and simplify the administration of your estate.
IV. Would an estate plan help if I become mentally or physically incapacitated?
Absolutely. Estate planning deals with more than just what happens when someone dies. It involves planning for our lifetime as well. During estate planning, most people should plan for possible mental or physical incapacity during their lifetimes. This planning is especially important for a single person who may wait to designate someone other than a relative to manage his or her property and affairs in the event of incapacity. A living will or a durable heath-care power of attorney can enable you to pick someone to make decisions for you about medical treatment, including decisions about using or terminating life support systems.
Moreover, you can select someone to direct your financial affairs in the event of your incapacity by executing a durable power of attorney for financial affairs. This type of power of attorney gives a specific named individual access to your assets and the authority to manage those assets, to pay bills, and to take any other act ion needed to keep your financial house in order during your incapacity.
V. I have a business. Should I account for it in my estate plan?
The answer is a resounding "Yes". As most business owners know, planning is a key element of success. An estate plan can make sure your business is not thrown into chaos upon your death or incapacity. You can provide for an orderly succession and continuation of its affairs by spelling out in your plan what will happen to the business, your ownership interests and your loved ones, upon your death or incapacity.
VI. Can I help a favorite cause through my estate planning?
Yes. Your estate plan can help support religious, educational, and other charitable causes, either during your lifetime or upon your death, while at the same time allowing you to take advantage of tax laws designed to encourage philanthropy.
VII. Can an estate plan help reduce taxes on my estate?
Again, a resounding "YES". Every dollar your estate pays in estate taxes and/or administration expenses is a dollar that your beneficiaries won't receive. A good estate plan gives the maximum allowed by law to your beneficiaries and the minimum to state and federal taxing authorities.
VIII. Isn't an estate plan just for old people?
EMPHATICALLY NOT. One glance at the news demonstrates that far too many young and middle age people die suddenly or, what is even more likely, become mentally or physically incapacitated. An estate plan can be tailored to anticipate these contingencies.
IX. When should I plan my estate?
The time to plan for death or disability is NOW, when you're healthy. As a general rule, people make better decisions when they feel good and tend to make worse decisions when coping with illness or physical stress, strain, or illness. Moreover, a so-called deathbed will, or one made by someone whose mental competence is questionable, may invite a legal challenge.
It's important not to procrastinate. Don't put off making your estate plan until your estate reaches a certain level or value. Even if you don't have as many assets now as you expect to have someday, it's easy to update the plan every few years as your assets increase and your life circumstances change. If you put in a few hours now learning the basics and setting up your plan, you'll be covered in case of an unexpected event.
X. My spouse doesn't like to talk about finances or estate planning. What should I do?
You can't plan your estate if you don't know all the facts about your family's assets. Yet many people don't have basic information about their spouse's income, how much is earned, what benefits he or she is entitled to, what his or her assets and debts are, and where assets are invested.
You need to know this information when planning your estate. It's especially important to know who holds title to real estate and what is known as titled personal property (For example, automobiles, boats, and recreational vehicles.) It is also important for you to know the beneficiaries of your spouse's insurance policies, pension plans, retirement accounts, and other similar assets.
XI. What can I do to minimize the costs of estate planning?
A lawyer or other professional often charges by the hour for the amount of work put into the estate plan. Ask about fees at your first consultation and inquire about how much your total estate plan might cost. If your legal advisor charges by the hour, the more time you invest in locating relevant documents and putting your wishes in writing, the less preparatory work your advisor will have to do. This should go a long way toward reducing the final cost of your estate plan.
In other circumstances, the lawyer charges a flat fee for certain estate planning services. This arrangement allows you to know, at the beginning of the relationship, how much it will cost you to achieve a properly planned estate. As pointed out above, the money spent planning your estate will result in much greater savings for you and your loved ones in the future.
XII. Should I consult an attorney as I plan my estate?
ABSOLUTELY. Even if you have a modest "Estate", professional advice is needed to achieve all of your objectives. Consultation with an experienced estate planning lawyer to make sure that your property is distributed exactly where you want it to be, that your loved ones are fully protected, and that you are assured of proper care in the case of incapacity is highly recommended.
XIII. How do I find a lawyer to help me plan my estate?
The various professionals you normally use (i.e. Financial Planner, Accountant, etc.) may be able to refer you to a reputable lawyer to assist you in the process. Additionally, the trust department of your local bank can give you the names of one or more attorneys experienced in estate planning. If you have a friend or relative who has executed a will recently, ask for the name of the attorney. Another source is your local bar association's referral program, which lists attorneys knowledgeable in estate practice.
Attorneys often offer an initial consultation without charge. At this get-acquainted session, you can ask about the attorney's experience in estate planning and get a firm idea of fees.
Be comfortable with the attorney you choose! A good estate attorney will have to ask questions about many private matters; it's important for you to be comfortable discussing these personal considerations. Frank and open communication with your attorney is important in ensuring that you get an estate plan that fits your needs.
XIV. How does the process of estate planning work?
Don't just expect to pile some papers on your lawyer's desk and have a will or trust magically appear in a few weeks. Preparing these documents is seldom as simple as filling in blanks on a form. Most people will meet with their attorney several times, with more extensive estate requiring more consultations.
At the first meeting, be prepared to tell your lawyer about some rather intimate details of your life: like much money you have; how many more children you plan to have; which relatives, friends, or other associates you want to get more or less of your estate. After talking with you, your attorney will explain the options for accomplishing your estate-planning goals. This information will assist your attorney in preparing the finalized estate planning documents that, upon signing, will become legally effective to distribute your estate.
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DEATH AND TAXES.
I. I'm not rich. Do I have to worry about federal estate taxes?
Under current law, your estate isn't liable for federal estate taxation unless it exceeds a certain amount. For married couples the threshold is different. In deciding what your estate is worth, the IRS generally uses the fair market value of property you own at your death, not what you originally paid for it. In many cases, especially if you've owned your home, stocks, or other assets for many years, the appreciation in value of large assets could put you over the federal estate taxation limit. Assets subject to tax at death may include the family home, the family farm, life insurance, household furnishings, benefits under employee benefit plans, and other items that produce no lifetime income. In short, you may be richer than you think.
II. What should I do if I may be liable for the estate tax?
Although the federal estate tax misses most people, those it hits, it hits hard. So if you are in jeopardy of exceeding the threshold, see your lawyer for some tax-planning advice.
Warning: Tax laws change frequently. Be sure to review your estate plan periodically.
III. What about state death taxes?
What is taxed and at what rate depends on state law, not only of the state in which you live but also the state where the property is located. Unless your state has an inheritance tax, your beneficiaries don't pay tax when they receive money or other property from your estate. But they will have to pay income tax on any earnings after they invest the bequest. In addition, death itself may produce numerous tax consequences, including taxes on insurance (if paid to the estate) and employee benefits.
IV. What if I receive a bequest and don't want it?
Because of taxes or other reasons, those named as beneficiaries in a will or trust document may not want the property left to them. For example, if you go bankrupt and then your father dies, your creditors may be entitled to the first shot at the property he left to you. You might want to give up this property so that it will go, for example, to your sister instead of to your creditors. Or you may receive property that is subject to liens and mortgages greater than its market value, so it is a burden you would rather not have. Most states permit beneficiaries to disclaim (that is, refuse) an inheritance or benefit. The Internal Revenue Code describes how a beneficiary may disclaim an interest in an estate for estate-tax purposes. See a knowledgeable tax lawyer if you intend to disclaim any gift.
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PROBATE
I. What is probate?
Probate is the court-supervised legal procedure that determines the validity of your will. Probate affects some, but not all of your assets. Non-probate assets include things like a life insurance policy paid directly to a beneficiary. The term probate is also used in the larger sense of administering your estate. In this sense, probate means the process by which assets are gathered, applied to pay debts, taxes, and expenses of administration, and distributed to those designated as beneficiaries in the will.
II. I've heard that probate is expensive, time-consuming, and bureaucratic. True?
Probate used to be all that and more. But times have changed and so has the probate process in most states. While Probate is seldom as costly and time-consuming as it once was, it still makes sense to avoid the process wherever possible to minimize expenses and expedite the time in which your loved ones receive their portion of your estate.
III. How much does probate cost?
The expenses of probate (which can include court and appraiser fees) depend on the state where you live and the size of your estate. According to the American Association of Retired Persons (AARP), the typical cost of probate runs $1,500. But this is a very rough estimate. If there are complications-for example, an invalid will or a will contest-all bets are off. Good estate planning can minimize expenses by passing most of your property through a living trust or by joint tenancy or some other means that avoids probate, so that very little property is left to be distributed through your will. The smaller the size of the probate estate, the lower the costs, especially if it is small enough to qualify for expedited processing.
IV. What if my estate doesn't quality for such simplified probate?
If your estate is relatively small or uncomplicated and your will is well-drafted, your spouse or other executor may not need a lawyer to help with the probate process. If things get more complex, the need for a lawyer becomes greater. The more complex the probate process, the more hours the lawyer will have to put in-and the more it will cost.
V. How long does probate take? How does my family survive before my estate is freed up?
The average estate completes the probate process in six to nine mouths, depending on the state's probate laws. The current probate procedures in many states now make it possible for your survivors to obtain funds to live on while your estate is being probated.
VI. Should I plan my estate to try to avoid probate?
Yes. Even for people with moderate assets, probate can be expensive and time-consuming, tying up money and property that could go directly to your beneficiaries. Probate is also a public process. For these reasons, probate avoidance should be an element of an estate plan.
VII. Who is involved in the probate process?
The main players are the probate court and your personal representative. The probate court's involvement varies depending on what kind of probate procedure exists in your jurisdiction. There are various degrees of court supervision required in different areas. If you have a will, the personal representative is called your executor-the person you appointed in your will to administer your estate. The executor named in the will is in charge of this process, and probate provides an orderly method for administration of the estate. If you don't have a will, the court will appoint someone to handle these tasks, usually at more expense to your estate than if you had appointed an executor and given him or her the necessary powers to settle the estate.
VIII. Is a lawyer necessary for probate?
It depends largely on what state you live in and the size of your estate. Even though probate laws have become simpler in most states, the process can be complex and time-consuming. As a result, it may be more expensive for a non-lawyer to negotiate than it is for an experienced estate lawyer. Some states even prohibit executors from handling probate without a lawyer's assistance. On the other hand, a few states (California, Wisconsin, and Maryland) have simplified probate procedures so much that it is often possible for a non-lawyer to probate a small estate. There is good news if you are in one of the categories of people who can profit from probate avoidance techniques like a revocable living trust or other non-probate transfers of property, such as joint tenancy or life insurance. Even though in these cases you still need a will to dispose of residual property (most of your assets will be distributed in other ways), the cost and time to probate such a simple will is minimal, even with a lawyer's assistance.
IX. What can my family do to reduce the costs of probating my estate?
For most estates, you can appoint a non-lawyer as executor (usually a family member) to do most of the work such as gathering information and records. The executor files the required forms, figures and pays the taxes, and distributes the estate's assets. If the executor has any questions, he or she can consult an experienced estate lawyer.
X. What does it mean when a will is contested?
Human nature being what it is, some people who don't receive what they consider a fair share from a dead relative's will may want to challenge, that is, contest, the will. Chief among the grounds for a will contest is that the will was not properly executed; the testator lacked "testamentary capacity" (the ability to make a will-for example, he was senile when he left his estate to the named beneficiary); undue influence (the evil sister hypnotized her dying brother into leaving her the whole estate); fraud (the evil brother retyped a page of the will to give himself the Porsche collection); or mistake (you will your million dollar Summer home to "my cousin John" and it turns out you have three cousins named John).
XI. How can I plan to avoid a will contest?
There's an old saying that you never really know someone until a Will is read. However, if your Will conforms to legal requirements, a challenge is unlikely to be successful. It's also another reason to consult with an experienced estate-planning lawyer and to update your Will periodically. There are other concrete steps you can take to reduce the chances of a Will contest as well.
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WILLS
I. Why should I go to the trouble of writing a will?
A Will lets you control what happens to your property. If you have minor children, a Will enables you to designate the best available person to care for them after your death. Through a Will you can nominate a legal guardian for your children and name an executor to handle the distribution of your estate to your designated beneficiaries.
II. What happens if I die without a will?
If you die without a Will, your property still must be distributed. The probate court in your area will appoint someone (who may or may not be the person you would have wanted to comb through all your affairs) as the administrator of your estate. This person will be responsible for distributing your property in accordance with the law of your state. The probate court will closely supervise the administrator's work and may require the administrator to post bond to ensure that your estate will not be charged with the costs of any errors made by the administrator. Of course, this involvement may be much more expensive than administering an estate under a Will-and these costs come out of your estate before it is distributed. Some of your property may have to be sold to pay these costs, instead of going to family or friends.
III. Who gets my property if I die without a will?
By not leaving a valid Will or trust, or by not transferring your property in some other way before death, you've left it to the law of your state to write your "Will" for you. In the absence of a Will, the law of your state has made certain judgments about who should receive your property. Those judgments may or may not bear any relationship to the judgments you would have made if you had prepared a Will and/or executed a trust.
IX. Does a Will cover all my property?
Probably not. It is easy to think that a Will covers all of your property. But because property can be passed to others by gift, contract, joint tenancy, life insurance, or other methods, a Will might best be viewed as just one of many ways of determining how and to whom your estate will be distributed at your death. The various methods of distributing your estate are discussed in this section. In the meantime, keep in mind the kinds of property that a will may not cover and include them in your estate planning.
X. Where should I keep my Will?
Keep it in a safe place, such as your lawyer's office, a fireproof safe at home, or a safe deposit box. If you do keep your Will in a safe deposit box, make sure to provide that the executor can take possession of the Will when you die. Also, keep in mind that some jurisdictions require a decedent's safe deposit box to be sealed immediately after death until certain legal requirements have been satisfied.
XI. What other estate documents should I keep with the will?
You should also keep a record of other estate planning documents with your Will, such as trust documents, IRA's, insurance policies, income savings plans such as 401(k) plans, stocks and bonds, and retirement plans.
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TRUSTS
I. What is a trust?
A trust is a legal instrument used to hold and manage real property and tangible or intangible personal property, for example, antiques (tangible personal property) or the right to royalty payments (intangible personal property). Putting property in trust transfers it from your personal ownership to the ownership of a legal entity called a "trust" which holds the property for your benefit or the benefit of anyone else you might name. There are several different types of trusts that may be beneficial, depending upon your own individual circumstances and estate planning objectives.
II. What is a living trust?
A living trust is simply a trust established while you are still alive. It can serve as a partial substitute for a Will. Therefore, upon the death of the person creating the trust, his or her property is distributed as specified in the trust document to beneficiaries also specified in the document.
There are three parties to a living trust:
· the creator of the trust (also referred as the grantor, settlor, or donor);
· the trustee (the person who holds and manages the property for the benefit of the creator or other
beneficiaries);
· and one or more beneficiaries (the person or persons named to receive the benefits of the trust).
III. Why do people use trusts?
The reasons vary. Parents, for example, might use a trust to manage their assets for the benefit of their minor children in the event the parents die before the children reach the age of legal adulthood. The trustee can decide how best to carry out the parents' wishes that the money be used for education, support, and health care. Others may use trusts to avoid inheritance taxes, or to place assets out of the reach of potential future creditors. A trust is an excellent method of managing your property and assets after you have died so that your loved ones are still taken care of in your absence.
IV. Can you change a trust after you set one up?
It depends. A trust can be revocable-that is, subject to change or termination; or irrevocable-that is, difficult to change or terminate. A revocable trust gives the creator great flexibility but no tax advantages. An irrevocable trust is the other side of the coin-less flexibility but considerable tax benefits. It's wise to consult with an estate-planning attorney before you proceed to explore the benefits and costs of a trust.
V. Should I consider setting up a trust?
Most likely, yes. While it may depend on the size of your estate and what you want to do with it, trusts provide various benefits to even moderate estates. For example, if you are primarily interested in protecting yourself in the event you become unable to manage your estate, a revocable living trust is a good option. It can avoid the expense and delay of a court hearing on your mental or physical condition and the appointment of a legal guardian to oversee you and your estate in the event you are declared legally incompetent. If you want to provide for minor children, grandchildren, or a disabled relative, a trust might be appropriate. Before making a decision, consult an estate-planning lawyer.
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OTHER ASSETS AND TOOLS
I. My wife and I own our house in joint tenancy. Can't I use joint tenancy to pass property without having to draw up a will?
Yes. Joint tenancy is a form of co-ownership. If you and your wife buy a house or car in both your names and as joint tenants, each of you is considered a joint tenant and has co-ownership. When one of the co-owners dies, joint ownership usually gives the other co-owner instant access to the jointly held property. However, you should consult with an attorney regarding other aspects of joint tenancy.
II. What's the difference between joint tenancy and tenancy in common?
In joint tenancy, you and your spouse, or other co-owner, own the property, for example, a home. Joint tenancy means, among other things, that each owner must agree on such issues as whether to sell the home. In tenancy in common, on the other hand, each owner owns an equal share of the property. In some states a tenant in common may sell his or her share of the property without the consent of the other owners. Keep in mind, however, that few buyers are interested in purchasing what amounts to part of a home. In tenancy in common, different partners can own unequal shares of the property.
If you own an asset in joint tenancy with anyone and you die, ownership of that asset passes to the other joint tenant automatically. In a tenancy in common, your share passes as provided in your will or trust, with possible consequences of probate, estate taxes, and so on.
III. Is there another way to give money to minor children besides a will or trust?
Yes. The most common way is through the Uniform Gift to Minors Act or Uniform Transfers to Minors Act, which are straightforward enough that you nay be able to make a gift without consulting a lawyer. These statutes allow you to open an account in a child's name and deposit money or property in it.
IV. How can I use life insurance in my estate plan?
Life insurance is often a very good estate planning tool, because you pay relatively little up front, and your beneficiaries get much more when you die. When you name beneficiaries other than your estate, the money passes to them directly, without probate.
Life insurance is often used to pay the immediate costs of death (funeral or hospital expenses), set up a fund to support your family so they won't have to return to work while still under stress from your death, replace your lost income, pay for children's education, and so on.
V. How do retirement benefits affect my estate plan?
Many of us are entitled to retirement benefits from an employer. Typically, a retirement plan will pay benefits to beneficiaries if you die before reaching retirement age. After retirement, you can usually pick an option that will continue payments to a beneficiary after your death. In most cases, the law requires that some portion of these retirement benefits be paid to your spouse. IRAs (Individual Retirement Accounts) provide a ready means of cash when one spouse dies. If your spouse is named as the beneficiary, the proceeds will immediately become his or her property when you die. Like retirement benefits (and unlike assets inherited via a Will), they will pass to the named beneficiary without having to go through probate. Check with a lawyer to see how such plans can best be coordinated with your estate plan.
VI. Do prenuptial agreements play a role in estate planning?
Any couple in a situation where one partner has a lot more money or property than the other or where one partner is substantially older than the other, should consider entering into a prenuptial agreement as part of their estate planning.
Older people with grown children from another marriage may want their property to go to their own children after they die, rather than to the new spouse and his or her children. A prenuptial agreement can accomplish this purpose.
VII. Should I give some of my property away before I die?
Making gifts during your lifetime can be a good idea, especially if you have a large estate. They can help you avoid high estate and inheritance taxes. In some states, they might enable you to reduce a relatively small estate to one that is small enough to avoid formal probate procedures. Another advantage of giving property away before you die is that you get to see the recipient's appreciation for your generosity. But watch out for a few pitfalls. These gifts will be subject to gift taxes if they're larger than the amount provided by law.
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CHANGING YOUR MIND
I. Once I've planned my estate, do I have to worry about it again?
Yes. Life doesn't stand still. After you've crafted your initial estate plan, your circumstances are likely to change-you may have more children, acquire more assets, have a falling out with your spouse, other relatives, or friends you've named as beneficiaries. These and other life changes may require changes to your estate plan.
It's a good idea to review your will or trust document along with your inventory of assets and list of beneficiaries every three or four years to make sure your past decisions continue to meet your current needs. Think of estate planning not as a one-time transaction, but as a process that works best if periodically reviewed.
II. How do I change my Will after it has been executed?
You can change, add to or even revoke your Will any time before your death as long as you are physically and mentally competent to make the change. An amendment to a Will is called a Codicil.
You can't simply cross out old provisions in your Will and scribble in new ones if you want the changes to be effective. You have to formally execute a Codicil, using the same procedures as were used when you executed the Will itself. The Codicil should be dated and kept with the Will. It's a good idea to check with your lawyer before signing a Codicil or revoking your Will.
III. When should I update my Will?
You may need to modify your present Will by executing a Codicil or preparing an entirely new Will to account for major changes in your life or in your financial situation-for example, the purchase of a new house, divorce or remarriage, moving to another state, big jump (or decline) in income, birth of children, death of relatives, etc. In fact, it's a good idea to periodically review your Will and update it as necessary.
IV. When and how should I revoke my Will entirely?
Sometimes, when you have a major life change, such as a divorce, remarriage, winning the lottery, having more children, getting the last child out of the house, it's a good idea to rewrite your Will from scratch rather than making a lot of small changes through Codicils. You can do this by executing a formal statement of revocation and executing a new Will that revokes the old one.
V. What happens if I fail to keep my Will up-to-date?
Some life changes may be accommodated by the law, regardless of what your Will provides. For example, if you have a new child, and don't explicitly say you don't want him or her to inherit anything, the law will give the child his or her legal share of your estate. Likewise a new spouse will be entitled to inherit a portion of your estate even if you fail to specifically name him or her in your estate plan. Moreover, if you come into property that is not accounted for by the Will, it becomes part of your "residuary estate"- that is, it will pass to the person or institution who gets everything not specifically identified in the Will.
However, it's always best to modify your Will periodically to account for such life changes or "after-acquired assets." If you don't, you run the risk of paying higher taxes, giving property to people you don't want to have it, or creating confusion (and possibly probate delays or even litigation) among your grieving relatives after you're gone.
Other estate-planning documents you should take care to keep up-to-date include IRAs, insurance policies, income savings plans such as 401(k) plans, government savings bonds (if payable to another person), and retirement plans. You should keep a record of these documents with your Will and update them as needed when you update your Will.
VI. What if I set up a revocable living trust, then change my mind about it?
You modify a trust through a procedure called an amendment. You should amend your trust when you want to change or add beneficiaries, take assets from the trust, or change trustees.
You don't have to write a formal amendment to the trust to add property to it, because a properly drafted trust will contain language giving you the right to include properly acquired after the trust is drafted. Just make sure the new property is titled as being owned by the trust and list it on the schedule of assets in the trust. You do have to amend the trust if the newly acquired property is going to a different beneficiary than the one already named in the trust or if the trust has more than one beneficiary listed.
You should revoke, not amend, your trust when making major changes. You revoke a trust by destroying all copies of it or writing "revoked" on each page and signing them. When you create a new trust to replace a revoked one, give the new trust a different name, usually one containing the date the new document was executed.
In short, regardless of what assets you have, who you choose to receive your assets, and how you choose to give them to them, you need estate planning. At RESNICK & MOSS, P.C. we can assist you in gaining the piece of mind and tranquility that a properly prepared estate plan allows.
