3 Tips for Preserving Your Family History This Thanksgiving

What story from your life or your parents’ life needs to be remembered?

Did your grandmother board a ship at the age of 15 and immigrate to America all by herself? Does your grandfather have great stories about the shenanigans that went on at the family farm? Was your uncle at the liberation of Dachau during World War II? (I have a friend who this is true for, but she was too young to hear about it while he was alive.) Oftentimes families have stories like these, but questions go unasked, answers and conversations about these things aren’t preserved, and adventures are left untold. In our increasingly disjointed society, it’s important for families to share stories.

We want to encourage you to take time this Thanksgiving (and the entire holiday season) — a time when families naturally gather around tables and tell stories — to preserve these stories that make up the unique tapestry of your family. With multiple generations under one roof, it’s a chance to dig into your history and discover what brought you to where you are now.

If you’re among the older generation, don’t be afraid to share your story. If you’re among the younger generation, be sure to actively listen when stories are being told. Turn off the football game for a bit. Put down the smartphones — you have a lifetime to look at screens but a limited time to preserve your past.

The process of telling your story may be uncomfortable at first. Our current culture leaves us ill-equipped for face-to-face interactions and deep conversation, but it’s worth pushing past the discomfort to get to the unique history only your family holds. With the help of the tips below, the discomfort should quickly pass. Here’s how to get the conversation rolling and preserve your parents’ or grandparents’ stories:

  1. Be intentional. Set aside specific time for this. Gather your parents or grandparents around the dining room table and tell them you want to hear their stories.
  2. Start with simple questions. Easy, fun questions break the ice and often lead to great stories. Begin with a few of these:
    • What’s the strangest thing you’ve ever eaten?
    • Did you have a nickname as a kid?
    • Where did you go on vacations as a child?
    • What did you eat for lunch at school?
    • How did you meet mom or dad (or grandma or grandpa)?
  3. Record the conversation. Your smartphone probably already has a recording app (like Voice Memos on the iPhone), so use technology to your advantage. The digital age is great for easily sharing things like photos and recordings. Put your phone in the middle of the table and just let it record. Soon, everyone will forget it’s there, and you’ll have an invaluable souvenir of that moment in time.

If you wish you knew more about your grandparents’ stories, we encourage you to do something about it and start recording some of your unique life experiences so future generations can draw strength and wisdom from what you (or your parents) endured, accomplished, and valued. Family stories encourage us to move boldly in our own lives, helping us to uniquely understand who we are and how we got to where we are.

If you still have the chance to tell your story or to listen to the stories of your elders this holiday season, we don’t think you’ll regret it!! Watch on Facebook and in our upcoming email newsletters for more ideas on preserving your family legacy this holiday season.

If you’re ready to protect your family through effective estate planning and gain peace of mind knowing things will go as smoothly as possible when the time comes, give us a call at 217-726-9200 to schedule your Initial Meeting. We will be happy to help guide you through the process.

asset protection

How to Protect My Kids From Wild Spending

So, where will your stuff go when you die? Think about it for a minute.

Who will get your stuff and how much will they get?

Will the inheritance you leave make a big difference in their financial lives?

In many cases it will, and it may be a lot more money than they are used to having. Will they be ready to handle it wisely?

If you know your heir is not good with THEIR money now — they don’t save, they don’t budget, they don’t have an emergency fund, they often overdraw their accounts — then what will happen when they inherit YOUR money? Will they handle the inheritance better or worse than their own money?

It’s usually worse.

In our experience, people think that inheritances will last forever, and so they spend it. And then they spend some more. And then one day — when it’s too late — they realize that it’s all gone.

Parents spend a lifetime protecting their kids — from running in the street or touching the stove or making bad choices as teenagers — but many don’t think about how planning at death is another way to protect your kids.

With proper planning, you can set them up to succeed and help protect what you worked so hard for.

If you are concerned that your child (or niece or nephew) is not ready to handle an inheritance, you can set up a system to help them. This system would include a trustee to make decisions about the money you leave, plus a set of instructions about when and how the money can be used.

The goal? To make sure that hard-earned inheritance will last to provide ongoing security, steady income, and maybe even funds for your heirs’ retirement.

If you have concerns about your children’s financial habits, and how that could affect your estate planning, give us a call at 217-726-9200 or keep learning with the following posts:

Have You Ever Paid Off a Child’s Credit Card?

QUIZ: Is My Family Ready for Their Inheritance?

asset protection

3 Real-life Examples of Important Asset Protection

We’ve previously talked about asset protection, but before we jump into some real-life examples, let’s review:

Asset protection is simply protecting the things you own. This could be your house, your savings accounts, your IRAs, farmland, etc. Life is unpredictable, so there are quite a few risks that we all need to think about protecting ourselves from – medical bills, scams, accidents, Acts of God, poor financial decisions, and risky relationships.

Let’s look at three specific types of asset protection you may need to consider…

Three Real-Life Examples of Important Planning for Asset Protection

Medical Bills

While you are healthy and younger, you will hopefully be covered by health insurance that offsets doctor visits and hospital stays. But as you age and need more care, particularly at-home care or care in a nursing home, those things will not be covered by health insurance or Medicare. Without planning, those costs could quickly eat up all your life savings. By planning ahead, you can protect more of your savings and more easily qualify for benefits to help pay for care. Many people don’t think they’ll need this, but statistics show us that 70% of people over the age of 70 will need some kind of care like this, and we also know that 70% of nursing home residents rely on Medicaid to pay the outrageous bills.

Scams or Mismanagement

As you age, you are at greater risk of someone taking advantage of you. Sadly, elder fraud is an increasing issue right now as technology makes it easier and easier to prey on seniors. Fake emails from banks, fake calls from the IRS, Medicare scams, and even those close to you who are supposed to be helping can take advantage of seniors through powers of attorney. Diminished cognitive functioning and memory make it easier to make big financial mistakes. You need to plan ahead so someone you trust can step in when the time comes and protect you if you are unable to do so yourself. Read our series on elder fraud here.

Kids Who Can’t Handle Money

So, what about after you’re gone? If your kids are not prepared to handle their inheritance, they could quickly blow it. (Read our post, “Are Your Kids Ready for Their Inheritance?” to take a quick quiz.) There is planning you can do ahead of time to protect them and make sure their inheritance is there and will last for many years.

If you’d like to learn more, consider attending an upcoming workshop or give us a call at 217-726-9200 to get started.

asset protection; farmland

Asset Protection — What Is It and Why Do You Need It

Estate planning can seem complicated, but often it’s just because the vocabulary isn’t familiar. Here is what you need to know about asset protection:

  • What is asset protection?
  • What risks should I protect against?
  • What timelines should I consider when it comes to protecting assets?
  • What tools can I use for asset protection?

What is asset protection?

Asset protection is simply taking steps to plan ahead of time to protect what you’ve worked so hard for all your life.

So, what do we mean by “assets”? Assets are really whatever you OWN. This could be your house, your savings accounts, your investments, IRAs, farmland, personal property, your grandpa’s fishing cabin that’s now in your name – it is simply whatever you posses – no matter how much or how little that may be!

And the important thing to know is that you can take important steps to protect those things you or your family have worked so hard for! This is asset protection.

What kind of risks should I protect against?

We all know how unpredictable life can be. Sometimes, it’s full of curve balls you never see coming. So, what are some of the risks that you should protect against? We see six big categories:

  1. Catastrophic medical bills or healthcare costs (including nursing home care, in-home care or assisted living expenses)
  2. Scams or mismanagement
  3. Accidents or mistakes – for example, a car accident
  4. Acts of God – fire, tornado, hail or wind damage
  5. Poor financial decisions (adult children or their spouses with wild spending habits, gambling or addictions)
  6. Risky relationships (adult children where there is likelihood for divorce and/or abusive or controlling relationships)

Now that you know what asset protection is and what types of situations may call for it, let’s look at specific times during the lifespan and what they have to do with asset protection. Read about three real-life examples of asset protection here.

3 Periods of Life Where You Need Asset Protection

So, what are the timelines you need to consider when it comes to protecting assets?

  1. When you are healthy and still in control. During this time, there are things you can plan for now that you will not be able to do later. It’s much better for you and your family to be proactive during this time.
  2. When you are sick and unable to make decisions. Debilitating strokes and dementia are just two common types of illnesses that keep people from making decisions for themselves. When a debilitating illness happens, you need a trusted family member or friend to help make the decisions you would want made.
  3. After your death. Once you are gone someone else will HAVE to deal with your assets. It may be a spouse or an adult child, but either way, there are things that must be done. It’s better if you’ve planned ahead to make this time easier for them. The hardest thing about this time is that they’ll have to deal with a lot of legal things (and paperwork) WHILE dealing with grief. It’s an incredibly difficult time that is made easier by planning ahead.

Tools for Asset Protection – How Do I Protect My Assets?

There are three categories of tools that we talk about in connection with asset protection:

  1. Financial tools such as insurance can help protect assets. This is a broad area that includes health insurance, long-term care insurance, disability insurance, homeowners insurance and auto insurance.
  2. Personal legal tools such as trusts can also help protect assets. Trusts can help protect assets from risks that are unique to you and your situation or risks that your kids may encounter later.
  3. Business legal tools such as LLCs or corporations can help protect assets like small businesses.

I hope this article has helped you see how relatively simple “asset protection” is, along with how important it is to consider during the planning process. Anytime you see a word pertaining to estate planning that you don’t understand, we encourage you to reach out to us. It is very important to us that the vocabulary of estate planning doesn’t keep you from protecting your family. Keep learning about asset protection with our blog post, “3 Real-Life Examples of Important Asset Protection Planning.”

siblings equal

6 Reasons You Shouldn’t Treat Your Kids Equally

We have a common saying with our kids, “Fair doesn’t mean equal.”

Many of us want equality to be synonymous with fairness — maybe because it seems easier to make things equal than to navigate the complexity of fairness. But think about raising kids. Did you make sure everything was equal?

I doubt you kept track of each dollar spent to make sure it was the same for each child. One child may need braces, while the other has straight teeth. One may need money for music and sports, while the other doesn’t have an interest in those types of things. One child could have health issues and another doesn’t. One could need help with college, while another gets a scholarship. We provide our kids with what is appropriate and what we think they need, regardless of whether it is equal.

And the same should be true of your estate plan. Sometimes, it is okay to treat your children “unequally” because this really may be the fairest approach.

Here are six instances in which you might not want to treat your kids equally when it comes to your plan:

  1. Greater financial need. One of your kids may need more help financially. Kids are not equal in terms of their financial success or ability to succeed in a career. One of them may simply need more than others because of their financial situation.
  2. Health needs. A child (or even a grandchild) may have health needs that result in increased costs. Health issues can also limit one’s work options or earning potential, therefore making their need for financial assistance greater.
  3. One may not need it. For instance, if a disabled child already has their basic needs taken care of through government benefits and healthcare, then it could make things harder for that child to receive money from your estate. If you are confident that siblings will help provide for any extras this person may have in the future, you may be able to disinherit that child without affecting their quality of life.
  4. Some are better stewards. If one child has consistently made bad financial choices, and you have repeatedly bailed them out, it might make sense to leave them less because you are not confident they would use it well. Or, if you do decide to leave them a similar amount, you may want to take steps to protect their inheritance with specific rules, and someone to help manage it for them. (But not a sibling!)
  5. Early inheritance. Quite often adult children have a significant financial need and parents give them substantial help. After this happens, it might be good to consider adjusting the amount that child would receive in an inheritance. When this situation occurs, without adjusting the amount left in the estate, the child who didn’t need help often feels they are being punished for never needing help.
  6. Family farm or business. One child may rely on the family farm or business for their livelihood. If one child has spent a lifetime helping you grow your farm or business, it may be best to leave them more of the total estate so their livelihood is not negatively affected.

Some people still can’t get over the “unfairness” of leaving “unequal” amounts to their children. If you decide to leave equal amounts to each child, we encourage you to consider leaving specially tailored rules for each child, so the inheritance can be handled more fairly.

Protecting Our Kids From Threats

Another important part of an effective estate plan is helping protect our kids from threats. Whether it’s their own wild spending, a future divorce, a lawsuit or financial problems, an effective plan can help anticipate and mitigate these types of challenges. Some kids are more exposed to threats than others. Some kids are better able to handle money than others. The rules you create for your plan need to reflect that. As a parent you should feel free to handle things how you think best, without being tied by guilt into making everything exactly equal.

Involve Your Kids in the Planning Process

We often encourage our clients to involve their family in the planning process. This is especially important when considering leaving “unequal” inheritances. Effective communication with your family about why you have decided to do things the way you have can eliminate a legacy of misunderstanding, misinterpretation of your actions, and pain that children experience when parents don’t communicate about the plan ahead of time.

We have seen many adult children upset by their interpretation of their parents’ plan when the parents leave behind no explanation for their rationale, or fail to discuss ahead of time why they’ve chosen to do what they have. Estate plans can seem like a final accounting of a parent’s love. Because of this, it is really important to do the hard work of communicating with your family, either ahead of time or through your plan.

As with many estate planning matters, this is a complicated one with best solutions varying from family to family. We can’t possibly cover all the nuances in one blog post. Our process walks families through difficult decisions like whether to leave equal amounts to your children in your plan. You have the knowledge about your unique family. We are the experienced guide that helps create an effective plan based on that knowledge.

If we can be of assistance to your family, please give us a call at 217-726-9200. If you’d like to learn more about creating an effective estate plan, we encourage you to attend our next workshop, Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind. It’s a great way to learn about holistic, effective planning at every life stage, along with a great way to get to know us better!

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? Have you heard about The Case of the $54 Million Pair of Pants? 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 report. 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 every stage of life. At our workshop, Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind, you’ll learn about creating an aging road map, easy-to-unerstand keys to aging with peace of mind and clear next steps to guide your planning. Check for upcoming dates here. Call 217-726-9200 to RSVP.
  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 Elder Care Advisor, 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 a free monthly workshop for the community — Aging With Confidence: 9 Keys to Wise Planning & Peace of Mind. 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.