Where should I keep estate planning documents?

It is important to keep estate planning documents in a safe and secure place where they can be easily accessed when needed. Here are some options for where to keep estate planning documents:

1. Safe deposit box: You can keep your estate planning documents in a safe deposit box at a bank or other financial institution. This provides an extra level of security, but it can make it more difficult to access the documents when needed, as the bank may have limited hours or require advance notice to access the box.

2. Fireproof safe: You can keep your estate planning documents in a fireproof safe in your home. This provides easy access to the documents, but it may not be as secure as a safe deposit box.

3. Attorney's office: You can keep a copy of your estate planning documents in your attorney's office. Many attorneys in Oregon will not keep original documents but will retain copies in their files.

4. Online storage: You can keep digital copies of your estate planning documents in an online storage service or with your attorney. This can provide easy access to the documents from anywhere, but it may raise security concerns if the documents are not properly encrypted or stored.

Regardless of where you choose to keep your estate planning documents, it is important to ensure that your executor, trustee, or other trusted individual knows where to find them and how to access them in the event of your incapacity or death. You may also want to consider providing copies of your estate planning documents to family members or other individuals who may be involved in the estate planning process.

How do I talk to my elderly parents about estate planning?

Talking to elderly parents about estate planning can be a difficult conversation to have, but it's an important one to ensure that their wishes are met, and their assets are protected. Here are some tips to help you approach the conversation:

1. Choose the right time and place: Estate planning is a sensitive topic, so choose a time and place where your parents will be comfortable and have time to discuss the issue without feeling rushed or pressured.

2. Show respect and empathy: It's important to approach the conversation with respect and empathy for your parents' feelings and wishes. Acknowledge that the topic may be difficult, but that it's important to have a plan in place.

3. Focus on their goals: Start by asking your parents about their goals for their estate and their wishes for their assets. This can help to frame the conversation in a positive and productive way. Remember, it is their estate, and they may decide to not leave anything to you.

4. Offer your help: Offer to help your parents with the estate planning process but be careful to not unduly influence their decision making.

5. Be patient: Estate planning can be a lengthy and complex process, and it may take time for your parents to come to a decision. Be patient and supportive throughout the process.

Remember that estate planning is a personal decision, and your parents may have their own reasons for delaying or avoiding the conversation. Be patient, respectful, and empathetic, and focus on the positive benefits of having a plan in place to protect their assets and ensure their wishes are met.

How do I get started in estate planning?

Planning for your estate can seem overwhelming. Here are some steps to help you get started in estate planning:

1. Determine your goals: Think about what you want to accomplish with your estate plan. Do you want to minimize taxes, ensure your assets are distributed according to your wishes, provide for your loved ones, or support a charity? Your goals will help shape your estate plan.

2. Take stock of your assets: Make a list of your assets, including your home, bank accounts, retirement accounts, investments, and personal property. Consider their values and how they should be distributed after your death.

3. Choose a personal representative: A personal representative is responsible for administering your estate after your death. Choose someone you trust who is capable of managing your affairs.

4. Choose a guardian: If you have minor children, you will need to choose a guardian to care for them in the event of your death.

5. Consider creating a will: A will is a legal document that outlines how your assets should be distributed after your death. It can also name an executor and guardian for your children.

6. Consider creating a trust: A trust is a legal arrangement in which a trustee manages assets for the benefit of beneficiaries. A trust can help you avoid probate, minimize taxes, and provide for your loved ones.

7. Review your beneficiary designations: Many assets, such as retirement accounts and life insurance policies, pass directly to beneficiaries outside of probate. Review your beneficiary designations to ensure they are up-to-date and reflect your wishes.

8. Consult with an estate planning attorney: An experienced estate planning attorney can help you create an estate plan that meets your goals and protects your assets. They can also advise you on strategies to minimize taxes and avoid probate.

Estate planning can be complex, but taking these steps can help you get started. Working with an experienced estate planning attorney can help ensure that your estate plan is properly structured and meets your individual needs and goals.

What questions should I ask my estate planning attorney?

Here are some questions that you may want to ask your estate planning attorney:

1. What estate planning documents do I need? A good estate planning attorney should be able to evaluate your individual needs and help you determine which documents are necessary to achieve your estate planning goals. This may include a will, trust, power of attorney, and healthcare directive.

2. What is the cost of estate planning services? Estate planning can be expensive, so it is important to understand the costs upfront. Your attorney should be able to provide you with a clear estimate of the costs involved in your particular situation.

3. What is the process for creating an estate plan? Your attorney should be able to explain the steps involved in creating an estate plan, including any meetings, document preparation, and reviews.

4. How will my assets be distributed? Your attorney should be able to explain how your assets will be distributed after your death and how any taxes or fees will be paid.

5. How often should I update my estate plan? Your attorney should be able to advise you on how often your estate plan should be reviewed and updated to ensure that it continues to meet your needs and reflects your current wishes.

6. What happens if I become incapacitated? Your attorney should be able to explain what will happen if you become unable to make decisions for yourself and how your healthcare and financial affairs will be managed.

7. Can you help me with asset protection strategies? Your attorney should be able to explain what steps you can take to protect your assets from potential creditors or other risks.

8. What experience do you have in estate planning? You should feel comfortable with your attorney's experience and qualifications in estate planning.

Overall, it's important to find an estate planning attorney who can answer your questions and provide you with personalized advice to help you achieve your estate planning goals.

How often should an estate plan or will be updated or reviewed?

It is a good idea to review and update your estate plan or will periodically to ensure that it continues to meet your needs and reflects your current wishes. There is no set schedule for updating your estate plan or will, as the need for updates can vary depending on your personal circumstances and changes in the law. However, here are some general guidelines to consider:

1. Major life events: You should review and update your estate plan or will following major life events such as the birth or adoption of a child, marriage or divorce, the death of a spouse or beneficiary, or a significant change in your financial situation.

2. Changes in the law: Changes in the tax laws, estate planning laws, or other relevant laws can affect the effectiveness of your estate plan or will. It is a good idea to review your estate plan or will periodically to ensure that it remains up-to-date and in compliance with current laws.

3. Time: It is a good practice to review your estate plan or will every three to five years, even if there have been no major changes in your life. This can help ensure that your estate plan or will continues to meet your needs and reflects your current wishes.

In general, it is a good idea to review your estate plan or will periodically to ensure that it continues to meet your needs and reflects your current wishes. You should consult with an estate planning attorney if you have questions or concerns about updating your estate plan or will.

Why is estate planning so expensive?

Estate planning can be expensive because it involves a number of complex legal and financial issues that require the expertise of professionals such as attorneys, accountants, and financial advisors. The cost of estate planning can vary depending on a number of factors, such as the size and complexity of the estate, the types of assets involved, and the specific estate planning strategies being used.

Here are some of the reasons why estate planning can be expensive:

1. Attorney's fees: The primary cost of estate planning is typically the fees charged by attorneys to draft legal documents such as wills, trusts, and powers of attorney. Attorney's fees can vary depending on the complexity of the estate planning documents and the experience and expertise of the attorney.

2. Appraisal fees: If the estate includes assets such as real estate, business interests, or collectibles, it may be necessary to have these assets appraised to determine their value for tax purposes. Appraisal fees can be significant, especially for unusual assets.

3. Tax preparation fees: Estate planning may involve tax planning strategies to minimize estate and gift taxes. Tax preparation fees can be significant for high-net-worth individuals with complex tax issues.

4. Financial advisor fees: Depending on the estate planning strategies being used, it may be necessary to work with a financial advisor to manage investments, set up trusts, or create other financial instruments.

Despite the potential expense of estate planning, it is important to keep in mind that the cost of not planning can be even greater. Without proper estate planning, your estate may be subject to higher taxes, probate costs, and other expenses that could significantly reduce the value of the estate and burden your loved ones with additional costs and legal hassles.

What are some estate planning steps that can ease financial burdens following the death of a loved one?

Estate planning can be an important step in easing the financial burdens following the death of a loved one. Here are some estate planning steps that can help:

1. Create a will: A will is a legal document that outlines how your assets will be distributed after your death. By having a will, you can ensure that your assets go to the people or organizations you want, rather than leaving it up to the probate court.

2. Consider a trust: A trust can provide additional control over how your assets are distributed after your death. It can also help avoid the probate process, which can be time-consuming and costly.

3. Name beneficiaries: Many financial accounts, such as retirement accounts and life insurance policies, allow you to name beneficiaries. By doing so, you can ensure that these assets go directly to your chosen beneficiaries without going through the probate process.

4. Consider life insurance: Life insurance can provide a source of income for your loved ones after your death. It can help cover expenses such as funeral costs, outstanding debts, and living expenses.

5. Plan for incapacity: In addition to planning for your death, it's important to plan for incapacity. This may include creating a durable power of attorney, which allows someone to make financial decisions on your behalf if you become incapacitated.

6. Work with an estate planning attorney: An estate planning attorney can help you navigate the legal complexities of estate planning and ensure that your wishes are carried out after your death.

Overall, estate planning can provide peace of mind and help ease financial burdens for your loved ones after your death.

How can I leave money to my son but not his wife?

If you have worked hard to accumulate wealth and want to pass it on to your children, you may have some concerns about how your son-in-law or daughter-in-law will handle your inheritance. You may worry that they will squander it, use it for their own benefit, or claim a share of it in case of divorce. You may also have personal reasons for not wanting them to inherit your money.  

Fortunately, there are ways to protect your legacy and ensure that only your children benefit from it. In this blog post, we will discuss some of the estate planning strategies that can help you leave money to your kids but not their spouses.  

Trusts 

 One of the most common and effective ways of shielding your assets from your children's spouses is setting up a trust. A trust is a legal entity that holds and manages property for the benefit of one or more beneficiaries. You can create a trust during your lifetime or through your will and name your child as the beneficiary. You can also appoint a trustee who will be responsible for distributing the trust income and principal according to your instructions. 

A Trust can offer several advantages over leaving money directly to your child. For example: 

1.  A trust can protect your assets from creditors, lawsuits, and bankruptcy claims against your child or their spouse. 

2. A trust can provide income for your child while preserving the principal for future generations. 

3. A trust can specify how and when your child can access the funds, such as for education, health care, or retirement. 

4. A trust can prevent your child's spouse from influencing or interfering with their financial decisions. 

5.  A trust can avoid probate and reduce estate taxes. 

 There are different types of trusts that you can choose from depending on your goals and circumstances. Some of the most common ones include: 

1.  Revocable living trusts: These are trusts that you create during your lifetime and retain control over. You can change or revoke them at any time. They become irrevocable upon your death. 

2. Irrevocable trusts: These are trusts that you create during your lifetime or through your will and cannot change or revoke once they are established. They offer more protection but less flexibility than revocable trusts. 

3. Testamentary trusts: These are trusts that are created by your will after you die. They are subject to probate but allow you to control how your assets are distributed after death. 

4. Spendthrift trusts: These are trusts that prevent beneficiaries from transferring, selling, pledging, or assigning their interest in the trust to anyone else. They also protect beneficiaries from creditors and predators.  

Prenuptial Agreements 

Another way of leaving money to your kids but not their spouses is by having them sign prenuptial agreements before they get married. A prenuptial agreement is a contract between two people who intend to marry that outlines how their assets and debts will be divided in case of divorce or death. 

 A prenuptial agreement can help you protect any inheritance that you plan to give to your child by: 

1. Stating that any gifts or inheritances received by either spouse during marriage remain separate property and not subject to division upon divorce. 

2. Waiving any rights or claims that either spouse may have on the other's separate property. 

3. Establishing how any joint property acquired during marriage will be divided upon divorce 

 A prenuptial agreement must be signed voluntarily by both parties after full disclosure of their financial situation and with independent legal advice. It must also be fair and reasonable at the time of signing and at the time of enforcement.  

Postnuptial Agreements 

If your child is already married but did not sign a prenuptial agreement before tying the knot, they may still be able to sign a postnuptial agreement with their spouse after marriage. A postnuptial agreement is similar to a prenuptial agreement except that it is executed after marriage instead of before. 

 A postnuptial agreement can help you safeguard any inheritance that you plan to give to your child by: 

1.  Confirming that any gifts or inheritances received by either spouse during marriage remain separate property and not subject to division upon divorce. 

2. Modifying any existing rights or claims that either spouse may have on the other's separate property. 

3. Revising how any joint property acquired during marriage will be divided upon divorce 

A postnuptial agreement must also be signed voluntarily by both parties after full disclosure of their financial situation and with independent legal advice. 

If you have any questions, please feel free to contact us or leave us a comment. 

What is a power of attorney?

A power of attorney is a legal document that grants someone the authority to act on behalf of another person in legal or financial matters. The person granting the authority is known as the "principal," while the person receiving the authority is known as the "agent" or "attorney-in-fact."

There are several types of power of attorney, each with its own specific purpose. A general power of attorney grants the agent broad authority to act on behalf of the principal in all legal and financial matters. A limited power of attorney grants the agent authority to act only in specific situations, such as a real estate transaction or a medical decision. A durable power of attorney remains in effect even if the principal becomes incapacitated, while a non-durable power of attorney terminates if the principal becomes incapacitated.

A power of attorney can be an important estate planning tool, as it allows the principal to designate someone they trust to manage their affairs in the event that they are unable to do so themselves. This can be especially important in situations where the principal becomes incapacitated, such as due to a medical condition or injury. A power of attorney can also help avoid the need for a court-appointed guardian or conservator, which can be a time-consuming and expensive process.

It's important to note that granting someone power of attorney is a serious decision, as it gives the agent the authority to act on behalf of the principal in legal and financial matters. It's important to carefully consider the person chosen as the agent, and to work with a qualified attorney to create a power of attorney that meets the specific needs of the principal.