david edwards estate planning elder law

Stop Thief! 10 Things That Can Steal From Your Estate

If you’ve ever been robbed like I have, you know that awful feeling of violation and loss of control. More than the material things that are stolen, the loss of peace of mind and sense of security can have lasting effects.

When I had just started practicing law, I came home one night and saw muddy footprints on the carpet. I thought, “When did I track in mud?” Then it hit me — someone had broken a window and robbed my apartment! They didn’t get much; I didn’t have much for them to take. When it comes to your estate, there is a lot at risk.

As estate planning attorneys, we can’t protect your home, but we will work to protect your wealth and your legacy — protect it from thieves who could steal it.

What Is Robbery?

Robbery is when something of value is taken. When talking about estate planning, you can be robbed of money, but also so much more. You can be robbed of peace of mind, relationships, or even memories. There is a lot at stake if you don’t plan ahead.

Ten Thieves That Can Rob Your Estate

When creating a plan, it’s important to keep in mind these ten things that can do real damage to your plan:

  1. The IRS — Will your heirs pay unnecessary taxes? Well qualified estate planning attorneys should make sure your assets are set up to avoid issues like double taxation.
  2. Lack of organization — If you don’t have a plan for your wealth, you can’t control what happens to it.
  3. A spouse’s remarriage — If your spouse marries again, what will happen to your children’s inheritance? If your spouse has more children, will your wealth be divided among them as well?
  4. Your kids not being ready for wealth — If you were to die tomorrow, would your children be able to manage their newfound wealth? A thorough plan includes how much your kids get and when.
  5. Your kid’s divorce later in life — Estate planning attorneys make sure your wealth goes where you want it to go, regardless of the marital status of your children.
  6. A lack of training and communication with your family about your plan — I knew of a woman in her 70’s who lived by herself. Her husband had passed away a few years earlier. She had a daughter and two sons. One day she fell, broke her hip and had a mild stroke. She could no longer care for herself. The daughter who lived in town began to help her out. This daughter was never very good with money, but the family thought it made sense to grant her the Power of Attorney because the other kids lived out of town. As the daughter continued to care for her mom, many items from the house disappeared. Her brothers thought she was taking the stuff, but she adamantly denied it. Unfortunately, after the mother’s death, the siblings never spoke again.
  7. A lack of professional guidance you can trust — A very blessed man had been married 30 years to the love of his life. She was never considered a “stepmother” but a truly loving mom to his children. He completed a “do-it-yourself” estate plan. When he passed away, the family found his plan vague, confusing and lacking detail. His wife remembered him saying, “You’ll never want for anything.” His kids remembered hearing, “You will be treated fairly.” As the plan unfolded, both his wife and his kids thought the other side was being greedy and not honoring his wishes. On the brink of court, after two years and lot of legal fees, they compromised and settled the dispute. Sadly, the stepmom and the step kids never spoke again.
  8. Future lawsuits or liability — If you own a business, is your liability insulated from the business’ liability? What happens if your beneficiaries are ever sued? Estate planning attorneys can provide answers and solutions for these types of issues.
  9. Nursing home costs — The skyrocketing costs of aging in America necessitate your plan include provisions for long-term care for you and/or your spouse.
  10. Outdated legal documents — Effective estate planning attorneys help you keep your plan current so it can do what you intend for it to when the time comes.

What Would You Do If You Knew a Thief Was Coming?

When my old apartment was robbed, I didn’t expect it. It just came out of the blue. I have a friend who was in a different situation a while back. She lived in a great neighborhood. It was always very safe and quiet. But there was a time when houses started getting burglarized. Week after week, it was someone else. Would her house be next? She couldn’t know for sure, but she took steps to protect herself by installing a security system.

Nobody likes to think about it, but Benjamin Franklin told us only death and taxes are certain in this life. You know the time will come eventually. What estate planning “security system” do you have in place? If something isn’t right with your plan, would you even know it? Effective estate planning attorneys create and review existing plans to protect all you’ve worked so hard for.

How Innovative Legal Help Saved the Relationship of Two Sisters

This is the real life story of two sisters, an annuity, nursing home costs, and why Medicaid Planning matters.

Mom did not have a lot, but she owned her home, had a steady retirement income, and had purchased two annuities. Each in the amount of $50,000.

Each daughter was named the beneficiary of “their” annuity and would, therefore, receive the $50,000 from the annuity when Mom passed away.

The older daughter fell on hard times and asked her mother if she could cash-in the $50,000 annuity. Mom agreed and the older daughter received her $50,000 “inheritance.”

The younger daughter, not needing her money, left her annuity in place as Mom had originally intended.

Unfortunately, several years later, Mom had a stroke and had to enter a nursing home. She privately paid for the nursing home costs until nothing was left but the home and the younger daughter’s $50,000 annuity.

But the annuity wasn’t truly the daughter’s. Mom was listed as the owner because she was still alive and would, therefore, have to spend the younger daughter’s inheritance before she could apply for Medicaid.

Of course this was very upsetting to the younger daughter. She was the one who hadn’t requested her money early. She was the one following Mom’s original plan for the money to pass upon her death. And yet, she was the one “being punished” financially by her Mom’s stay in the nursing home.

A Resolution

One of our attorneys sat down with the sisters for several hours listening to their story and devising a plan. In the end, we were able to develop a strategy that would allow an immediate transfer of the house to the daughter (thereby equalizing the daughters’ inheritances) while qualifying Mom for Medicaid several months later.

The mother continued to get the care she needed as she aged, and the daughters got a resolution to a very sticky situation. It was a very satisfying experience for our attorney and the two sisters!

We work with families everyday to find solutions to the challenges of estate planning — complicated family circumstances, business and farm succession planning, paying for a nursing home. It is our greatest pleasure when we can help families figure out legal solutions for complicated problems.

What Should You Do Next?

If you want to learn more about planning for exorbitant nursing home costs, check out the following resources:

  1. Download a copy of our Medicaid FAQ (that ran in a local publication) to learn more about paying for nursing care, qualifying for Medicaid, etc.
  2. Sign up for our Medicaid Planning e-course. This series of emails will teach you the basics about planning for Medicaid and applying for the benefit, plus provide you tangible steps to get started.
  3. Attend a free workshop to learn more about effective planning. At our workshop, How to Protect Your House and Life Savings from the Nursing Home, you’ll learn the five ways to pay for care, how benefits like Medicaid or VA can help get the care you or your loved ones needs, and the three keys to creating a “Good Care Roadmap” to protect your family and life savings. Check for upcoming dates here.
  4. If you need help right away, just give us a call at 217-726-9200. We understand that many cases like these are urgent. Our Benefits Coordinator, Melissa Coulter, will be more than happy to discuss your situation and what immediate actions should be taken.

5 Big Risks of Adding Your Kids to Your Bank Account

The Truth About Adding Your Kids to Your Bank Account

Many parents think that “adding their children’s names to their bank account” is an easy way to be sure their kids can help if something unexpected happens, but it can cause some unintended consequences. Legally, what you are doing is naming a child as a joint owner of the account. This can have big legal implications that you might not intend. Despite friends or bankers telling you it’s a good idea, this sort of “coffee shop” legal advice can cause big problems down the road.

While naming your child(ren) as joint owner of your bank account could insure that bills and other obligations can be taken care of without you, it is best to understand what other problems you may be creating for yourself and your child by adding them to your bank account.

5 Risks of Simply Adding Your Child’s Name to Your Bank Account

There are many potential issues that could come up later if you add your child to your bank account now. Here are just a few to think about:

  1. If you die, the child on the account gets all the money in the account. This can be a real problem if there are several children in your family, but you only named one of them on the account. Even if you intended for all the children to share the money upon your death, legally the money belongs to the child whose name is on the account.
  2. If the child on your account gets sued or divorced, YOUR money in your bank account could be at risk.
  3. If your child becomes disabled (through a car accident or a stroke) after you are already disabled, then their spouse will gain control of the account and your money.
  4. If creditors come after your child, they could come after YOUR money in the “joint account.”
  5. If your child is on the account as a joint owner, then they have every legal right to come and take ALL the money from the account anytime they want. And there is not much you could do legally to stop them from doing so. You’re probably thinking, “My child would NEVER do that.” But money makes people do strange things. We see it nearly everyday.

2 Solutions That Can Prevent Future Problems

1. Power of Attorney

If you want a child to be able to pay your bills if you are sick, then name them a Power of Attorney instead of adding them as a joint owner of your bank account.

2. Payable Upon Death

If you want your money to go to your child or children at death, use a payable on death designation or give instructions in your will or trust.

Experienced Estate Planning and Elder Law Attorneys Can Help

Ultimately, you need to find solutions to accomplish your goals without creating unintended problems down the line. This is why it’s important to have the help and advice of an experienced estate planning and elder law attorney. Attorneys use legal tools like Powers of Attorney, trusts, wills and payable upon death designations to make sure things will go smoothly upon death or disability.

The most effective attorneys can help you solve problems without causing extra stress and unwittingly creating more problems down the road. Experienced estate planning and elder law attorneys should be able to anticipate the potential problems that your current actions may cause and prevent them through the use of legal solutions.

To continue learning more on the topic, download our free report, 12 Reasons Not to Give Your Property or Your Money to Your Kids Right Now. We also offer free monthly workshops for the community — Wills & Trusts: How to Get Started and How to Protect Your House and Life Savings from the Nursing Home. You can find upcoming dates for those workshops here or give us a call at 217-726-9200 to save yourself a spot.

Cinderella and estate planning

7 Important Things Cinderella’s Father Could Have Done Better

The secret to avoiding disaster in the Magic Kingdom — plan ahead.

So much of parenting is about planning and anticipating problems BEFORE they happen. And trips to Disney World are no exception. We know from experience that our kids get worn out if they days are too long. So, now we purposely build in days to quit early and have some down time back at the pool. On our most recent trip, I was reminded once again of how disastrous bad estate plans can be when minors are involved. Cinderella’s father made her life even more difficult by not anticipating what would happen if he died. Keep reading to find out what he could have done differently.

7 Important Things Cinderella’s Father Could Have Done Better

You’re probably familiar with the age-old story — Cinderella’s mother dies when she’s a young child, leaving just her and her father. Sadly, while Cinderella is still a minor, her father dies after remarrying a woman with two children of her own. His estate is left to his widow. (A regular occurrence in the real world.) And we all know what happens next: the wicked stepmother takes control of the estate of the benefit of herself and her own daughters. Treated as a servant in her own home, Cinderella is reduced to befriending rodents and birds.

Unfortunately, attorneys see these sorts of real life disasters everyday. The parents of modern day Cinderella’s aren’t bad people. They just failed to properly plan. They certainly didn’t wish for bad things to happen to their children. But that’s what happens when you don’t plan for things that are common to the human experience. (Like death.)

Here are 7 estate planning actions Cinderella’s father could have taken to better protect her once his wife died:

  1. Name guardians who share his values. See our Child Raising Priorities Checklist to help you decide what’s most important to you.
  2. Leave instructions for the guardian about how he wants her raised. This could include schooling preferences, where he wants her to live, religious upbringing, etc.
  3. Don’t think of planning as “all or nothing.” All of the father’s assets didn’t have to go only to the second wife OR only to his child. He should have considered dividing the assets between the spouse and Cinderella.
  4. Name an “outside” helper. Even in the best of circumstances, putting a stepparent in control of the stepchild’s money (or vice versa) can lead to frustration or awkwardness. A professional trustee (such as a bank, CPA or attorney) could have better balanced the interests of both Cinderella and her stepmother.
  5. Prioritize key needs for Cinderella such as future educations costs, wedding expenses, a down payment for a home, etc. Setting aside priority funds in a trust will make sure they are not spent on other things.
  6. Pass on a non-financial legacy. Cinderella’s father could have done a better job in transmitting his values, traditions, stories, faith and experiences, and this should have been especially important because Cinderella was so young when her mother died. By passing on a non-financial legacy, he could have insured that her mother’s things — photos, jewelry and other important “belongings” or memories were passed to Cinderella and not the stepmother. Read about 10 Non-financial Planning Issues You Should Consider here.

The type of planning that best protects minors when the unthinkable happens requires attorneys to act as counselors for the client. This also often involves collaboration with other professional advisors. By working as a team, these professionals who deal with real life Cinderella stories everyday can develop solutions for issues such as a creditor protection, remarriage protection, guardianship and special needs.

An estate plan is not really about YOUR DEATH. It’s about your CHILDREN’S LIFE if you’re not there to protect them anymore. You do everything you can to protect them right now — bike helmets, the best car seats, safe cars, healthy food, etc. but what if the unthinkable happens? Will all your protection go away if you go away? Preparation now avoids extra heartbreak and tragedy later. Read a real life story about lack of planning and the death of a young mother here.

Oftentimes, this is the single hardest activity a parent will engage in. We give guidance in person when clients go through this process with us. As always, feel free to give us a call at 217-726-9200 if you have any questions!

david edwards estate plan

Secrets: 5 Things Your Adult Children Need to Know About Your Estate Plan

Parenting often involves keeping secrets, especially when the kids are little — remember all the secrecy surrounding Christmas or birthdays?

Back when my daughter was 4 years old my wife and I kept a big secret from her. For her 5th birthday we surprised her with a trip to Disney World in conjunction with an estate planning conference! (She was excited about the first, while I was pretty excited about the second.) It was hard to keep the secret at times, but it sure was a fun surprise when we pulled it off.

Estate Plan Secrets

Secrets can be fun. But where estate planning is concerned, they most definitely are not. Sometimes it’s hard to know what our kids may or may not know about our plan. Walt Disney’s daughter was once asked by kids at her school what it was like to be his daughter: She came home that night indignant, telling her dad, “You never told me you were Walt Disney!” Sometimes things that seem obvious to us might not be so obvious to our kids.

5 Things Your Kids Need to Know About Your Estate Plan

What do your kids know or not know about your estate plan? Here’s a quick checklist to consider:

  1. Burial — Do your kids know whether you want to be cremated or buried? If you want to be buried, where do you want to be buried? Have you already purchased a cemetery lot?
  2. Who to Call — Do your kids know who your attorney is or how to get a hold of him/her? Can he help tie up loose ends or was he only used to fill out forms and make them official during planning?
  3. Assets — Do your kids and/or family know what your assets are? If you suddenly have a stroke or heart attack can they easily find that information?
  4. End of Life — Are they clear about your wishes for ending treatment and “pulling the plug?” Do they know how you feel about organ donation?
  5. Your Plan — Do they know where to find your will, trust and/or powers of attorney? (And if they’re in your safe deposit box or home lock box, can they get in? Do they have the key or the combination?) Will your kids be surprised by your plan? (How you divided assets or whether you gave to charity…) Unfulfilled expectations can mean conflict between your kids or lifelong heartache for a child who misreads a plan as being a symbol of how the parent felt about them.

5 Tips to Make Sure There are No Secrets About Your Estate Plan

  1. Talk. Have conversations with your kids about aging, death and what will happen. There are good conversation starter resources at EngageWithGrace and The Conversation Project. You can also read our post on the subject HERE. The holidays, when families gather together, are a good time to get these conversations started.
  2. Find an experienced attorney. Work with an attorney who keeps your plan up to date through a membership program or a maintenance plan. That way, even if you don’t want to share all of your financial information with your kids now, the attorney will have it to provide them with later. Read about our program HERE.
  3. Don’t assume. Recognizing if your kids will know what to do or how to do it once you are gone can be really hard. Tell them what you expect now. Things like which advisor to rely on or “take care of your little sister” can go a long way.
  4. No surprises. Give your kids the overview of your plan, so they know what to expect. News such as, “I’m going to leave your brother the farm,” is better with an explanation from you now. Your attorney can help with this, providing as much or as little detail as you want.
  5. Don’t just fill out a form. Include purpose statements in your will or trust. Tell why you did what you did, or explain that “it is my intent” that the plan work a certain way.

Estate planning works much more smoothly when there are no secrets or surprises. Save your family a lot of money and heartache by doing a little work now. Read about how to avoid an estate battle after you’re gone HERE.

I just ate a cheeseburger.

At this point in the year, many of us are abandoning our New Year’s resolutions, but there’s still hope…

by Chris Flynn, Attorney

Well, we’re a few months into 2016, which means we’re also past the point where many people have abandoned their New Year’s resolutions. (I’ve started eating cheeseburgers again despite the 15 or 25 pounds I’d planned to lose this year.)

Estate Plan Organization

A common resolution in the beginning of the year is to “get organized.” I have file cabinets at home that I’ve been mindlessly throwing documents into for years. I keep meaning to clean them out. I know they hold important papers, but can’t imagine trying to actually locate any one of them. With no immediate need to know where specific paperwork is, it’s always easy to put it off for another day instead of taking a couple hours to make sure the big things are in place.

And sadly, if I never do take care of those file cabinets? My family will be left to dig through the piles of junk I’ve gathered over the years trying to figure out what’s important and what’s been left for them.

Would it help your children to know where stuff it? To easily know what bank accounts, investment accounts and insurance policies you own? To get things handled quickly and privately and as automatically as possible when you die?

We can help with this! In just a few meetings, you can know what you have, where your accounts are, where your assets are going when you die, and have it all in one place so that you or your loved ones can access it whenever it’s neededBig Red Binder web version

When you set up a trust with Edwards Group LLC, you’ll leave with The Red Binder. In it, we’ll have all the documents needed to ensure easy administration of your accounts and assets during your disability or after your death.

The Red Binder

Some of the contents of The Red Binder include:

• A Trust, stating what happens with all of your assets upon your disability or death.

• A Will, ensuring that any “straggling” assets get handled in accordance with your trust.

• Powers of Attorney, ensuring that the right people (of your choosing) have the ability to help you when you need it.

• End-of-life and burial wishes, so your family knows what you want and can avoid disputing it later.

• A summary of your plan and a summary of your assets.

In our office, Senior Asset Coordinator Laura Peffley (pictured above with clients), is constantly helping clients get their assets consolidated into one trust. If you simply have an account statement or can print one, she can usually work with that. If you can’t find a deed to your house, she can help you track it down. And ultimately, we can map out a plan together to ensure all of your assets go where you want, when you want.

Procrastination is the Enemy of Estate Plans

Even if you’ve already abandoned some of your resolutions at this point in the year, we can still help you tackle this one today. Procrastination is the single greatest threat to an effective estate plan. Don’t put it off any longer. Planning protects those things most important to you, and we make it easy to take the first step with the following options:

  1. Attend one of our free workshops. We have two regular workshops, one of which is an introduction to estate planning. It’s a great, no-pressure way to get started. And you’ll receive $200 off your Initial Meeting fee just for attending.
  2. Give us a call at 217-726-9200. Tarina, our Client Coordinator, loves helping people and answering their questions. In fact, she was a client before she ever started working at Edwards Group, so she has a unique perspective that many find helpful.
  3. Schedule an Initial Meeting. If you know you’re ready to get started and want to stop putting it off any longer, just give us a call to schedule a 45-minute meeting where an attorney will review your concerns and goals. The attorney will also help you understand the unique risks that your family faces. By the end of the meeting, you should understand your planning options, what they will cost and if Edwards Group is the right firm for you. Clients find this meeting to be very valuable in helping them understand their options.

Get back on board with getting organized by calling us at 217-726-9200 to RSVP for a workshop, ask questions or schedule an Initial Meeting.

Is Your Estate Plan Old and Clunky?

David Edwards loves what he does, and it’s obvious because he can connect just about anything to estate planning! In this post, Dave and his dad explore how estate planning is like… old tennis rackets. 

Estate Planning is Like… Old Tennis Rackets

When my parents were first married (around 1967 or so), my mom’s parents gave them each a tennis racket. They were nice sturdy wooden rackets with the frames that you could screw down to keep them from warping.

My parents used them a little, but not too much before they ended up in storage in the attic above the garage. When I was in the 10th grade, I signed up for tennis at the YMCA one summer. Since I needed a racket, my dad proudly offered, “We have a couple of nice ones up in the attic. Barely been used.”

I came home after that first lesson and said, “Dad, the coach said that I need a new racket.” As we shopped for the new racket, my dad later told me he realized just how much things had changed in the past 20 years or so. That wooden racket was really heavy and clunky compared to the new, lightweight metal ones.

Dave and the Taylorville Boys Tennis Team

David Edwards and the Taylorville Boys Tennis Team around 1989

David Edwards and the Taylorville Boys Tennis Team around 1989

Dave’s Dad Tells Us How Old Rackets are Like Estate Planning (And No, Estate Planning is Not a Racket!)

Recently my dad reminded me of this story and thought it would be a good topic for a newsletter or a post. And he was right!

Old tennis rackets are like estate planning… if we’re not careful, our estate plans can become “clunky old wooden rackets” and be really out of date. They just won’t get the job done.

But there’s another great lesson in here, too, concerning our children —

Don’t send them out into the world with “clunky old wooden rackets.” Be sure to give them the training and the tools they need to face what lies ahead.

Our firm is pretty unique in that we work with the whole family to draft an estate plan that is effective. That means that when the time comes to put your plan into action, your kids will already have met us, know who to call, and we will help guide them through the process during one of the most stressful times of their life. What better tool to get the job done?

If you’re new to Edwards Group and wondering if we’re the right estate planning firm for you, please check out our FREE workshop, Intro to Edwards Group: Wills and Trusts Orientation. We hold them every month and they are great for:

  • Those who know they should plan but are intimidated by the process.
  • Those who already have an estate plan, but are unhappy with it.
  • Those considering Edwards Group for estate planning.

Call 217-726-9200 to save your spot at an upcoming workshop or to request more information. Just for attending, you’ll receive $200 off your initial meeting fee if you decide to work with us.

A Lesson from Robin Williams: Having “The Conversation”

One way in which you can minimize fighting amongst your family after you’re gone is by having “The Conversation” before you go…

Does Your Family Have Trust Issues Like Robin Williams?

After his death last year, it appeared that Robin Williams did everything right when it came to estate planning. The bulk of his wealth was transferred through well-thought-out (and private) trusts that distributed his belongings to his three children while also providing for his current wife, so she could stay in the house they shared. And yet, his third wife and his three children still got involved in a court case with each other. So what happened? And what can we learn from this situation?

Effective Estate Planning Anticipates Emotions Will Run High

The first thing people should know is that all bets are off when someone dies. In the extremely emotional  environment of grief and loss, even the best families experience some stress and disagreement. It’s just hard to avoid. Every estate planning attorney could fill a book with unbelievable real life stories about this very thing.

Effective estate planning attorneys work hard to mitigate this risk and prevent these issues from tearing families apart. And that’s where “The Conversation” and the “Special Stuff List” come in. Over the next two weeks, we’ll look at two important actions you can take to minimize fighting in your family.

“The Conversation”

Just like the birds and the bees talk you once had with your kids when they were younger, this next conversation can bring up almost as much anxiety. Many times it’s “easier” to start a conversation about inheritance and estate planning during family gatherings or holiday get-togethers. I know. I know. That sounds like a real downer of a conversation for a family event, but let me assure you, it will be a lot less unpleasant than what your family will experience after you’re gone if you DON’T have “The Conversation” with them.

Here are 5 tips for talking about inheritance:

1. Share your own reasons or motives for bringing up the issue. Then try to clearly convey what values are really important to you. What’s important to accomplish with your assets after your death? What does fair mean to you? What does it look like? What items do you think have special meaning? What stories about those items need to be written down and shared with your family?

2. Ask “what if” questions to find out how your family feels about certain scenarios. “What if Mom had to go in a nursing home and I was already gone? Would you want to keep the house? What would you do with the stuff in the house?” Or “what if Mom and I downsized. What would you want us to keep?”

3. Clearly convey choices you’ve already made, like who is in charge of making decisions after you’re gone (or incapacitated). For example, if your will says that the children should share your estate 50/50, then one child may understand that to mean keeping the house and sharing it. The other child may see it as an opportunity to sell the house and get some money. Bam. Now you have a big fight and your children never speak to each other again. (This is a TRUE story.) It is vitally important to talk to your kids about how you want things done before you’re gone (and then make sure to tie it down legally, as well.)

4. Look for natural opportunities to talk about the issue. Sometimes the death of a neighbor or a friend can provide better timing for this conversation. Celebrity deaths like Robin Williams can also present good times to bring up the topic, especially if their estate is presenting problems you would like to avoid.

5. Listen. Remember that listening is an important part of communication and any conversation. Take time to listen to your family’s perspective and opinion throughout the course of “The Conversation.”

Having “The Conversation,” along with detailed and effective legal planning will go a long way in avoiding the problems that Robin Williams’ family is now having. Read more tips on having “The Conversation” here.

In our next blog post we’ll talk about creating your “Special Stuff List.” This special list further clarifies your wishes and intentions with regards to certain special pieces of property. (Like your paperweight collection or the antique shotguns you inherited from your grandfather.)

As always, if you have any questions, please feel free to call us at 217-726-9200. We will be more than happy to help you in any way possible.

Estate Planning is Like… Birthday Cake

Much like your favorite birthday cake flavor, everyone likes different things when it comes to estate planning.

Well, as of March 5, I’m another year older! And to celebrate I got to have the best birthday cake in the world — spice cake with chocolate icing! What kind of cake do you request on your birthday?

Dave Bday cake 2015

In our family, everyone seems to have their own favorite. For my wife Michelle, it’s spice cake with white icing. (And she is forever trying to talk me into changing the icing on my birthday cake!) 8-year-old Bailey asks for white cake with white icing, and I’m not sure 4-year-old Cole has settled on a choice yet. My dad likes yellow cake with chocolate icing. My mom? Carrot cake with cream cheese icing. My brother, Jay, for decades requested turtle cake. (Which Michelle and I found out firsthand, does not turn out well if the recipe is copied down wrong!) Jay’s wife, Beth, likes white cake with white frosting just like Bailey.

Everyone’s got an opinion. Of course, the rest of them are all wrong! Spice cake with chocolate icing is clearly the best choice for a birthday cake.

And we haven’t even gotten to the ice cream! Some want chocolate. Some want vanilla. Others like cookie dough or cookies ‘n’ cream. We’ll save that for another blog post!

Everyone likes different things. The same choice does not work for everyone, even if they’re from the same family.

With your estate plan, you need a plan that fits your family – not a fill-in-the-blank form that doesn’t reflect your unique values, wishes, or family challenges.

And within your plan each child or loved one may have a different challenge or need that should be addressed. Don’t treat them all the same. Some want white icing. Others need chocolate. A good plan will take into account their personality, financial wisdom, and the unique situation of each heir.

If you need a more personalized (and therefore, more effective plan), our free workshop, Intro to Edwards Group: Wills and Trusts Orientation is a great way to get started. Call us at 217-726-9200 to RSVP for the next workshop. Find out our upcoming workshop dates here. Learn more about the workshop and what you’ll learn by attending, here.

IRA

7 Questions to Ask In Order to Do Effective IRA Planning

IRA planning can be tricky. In order to make sure you plan as best as you can, you should discuss the following questions with your attorney and other advisors:

1. Will you need the IRA funds during your life? If not, you may want to convert to a Roth or use the RMD’s to purchase life insurance to grow the wealth going to your family.

2. Will your heirs need it shortly after your death? If so, then the stretch out is not relevant.

3. Are you doing any charitable giving? If so, use the IRA to do it, if possible. That way the contribution is tax free.

4. Do you want to protect what you are leaving to family from their future divorces, lawsuits, creditors, poor judgment, wild spending, etc.? If so, you need protective trusts for each of your heirs. An IRA can go to a properly set up trust and still get the “stretch out”.

5. Are you facing estate tax at your death? If so, you need careful planning to avoid a double tax. An IRA subject to both estate tax and income tax can sometimes lose 75% or more to taxes!

6. Are you in a 2nd marriage? His kids and her kids? If so, be careful leaving your IRA to your spouse. You want to balance out your wishes for your kids with your desire to provide for your spouse. You can’t assume you can leave the IRA to your spouse who will later leave it to your kids. First, it may be spent and gone. Second, your spouse has every legal right to change the beneficiary after your death (to his/her own children).

7. Is your IRA (or other tax deferred retirement plan) a large percentage of your total estate? If so, then even more is at risk. You need careful planning, and it’s vitally important you consult with a professional.

Effective IRA planning is very important in effective estate planning. Give us a call today at 217-726-9200 if you have any questions, or check out one of our upcoming workshops to find out more about effective planning.