Category: Estate Planning
Make a Will: It Won’t Kill You!
September 16, 2013 | William F. HuefnerMany people avoid the process of estate planning because of fear. There is a persistent superstition that says that you will die soon after you make your will. Fortunately, making a will does not invite death any more than any other activity you do. A will is just a plan for what will happen when you die. Many people make out wills and then go about living their lives for decades after. Dave Ramsey, the popular financial expert, has a pretty good comment to make on the subject of wills. In The Total Money Makeover he writes: “You are going to die, so do it in style, and do it with a will!” Ask yourself whether or not you would want the state to make decisions about your property, children, pets, or debts. If the answer is “no” then you definitely need to engage in some estate planning. If you have a lot of assets then you will definitely want to engage in this process to make sure that your life’s work is not distributed in a way that would be unpalatable to you. A will is simply another thing that you should take care of. It’s just a piece of business, much like filing your taxes, paying your bills, or buying insurance….
Read MoreWill My Family Inherit My Debts?
September 9, 2013 | William F. HuefnerAre you deep in debt? If so, you’re not alone. While much of estate planning revolves around assets there are those who will leave more in the way of debts. If you’re in this situation you may be quite worried about how you will protect your loved ones from your bad financial situation. Fortunately, there’s good news. Your heirs will not inherit your debt directly. Your credit card bill will not suddenly pass into their name. That doesn’t mean creditors won’t try to make an argument that you let your heirs assume responsibility for some debts in certain situations, so make sure to consult with an attorney if you want to avoid this situation. Secured debt is a little different. If you want your heirs to inherit a house that still carries the mortgage they will need to keep the mortgage current until the house is sold. If your heirs want to keep the house the mortgage may need to be refinanced. However, creditors can go after the assets in your estate. Creditors may be able to seize secured assets or force the sale of other assets to pay your obligations. Debt reduces the amount of money that your children will inherit. However, the lack of legal obligation on the part of your…
Read MoreWhy Should I Update My Will?
September 2, 2013 | William F. HuefnerA will is not a set it and forget it document. You should revisit your will periodically. Why? Because things change. Your designated executor might die before you do. You might divorce your spouse. Or you might remarry. You could adopt children or have new children. You could have a severe falling out with an adult child. Each of these situations creates scenarios which would cause you to either need or want to make a change in your will. However, you won’t necessarily think of your will while you’re in the middle of a change or an upheaval. That’s why it’s a good idea to make a habit out of periodically reviewing your will. Most of the time, there will probably be little or nothing to change. That’s okay. The practice itself is what is important. Someday, something will change, and you’ll feel better knowing that you are on top of things. If you have a revocable living trust his periodic review also gives you a chance to add or remove assets from the trust if you wish. Of course, all of this depends on you having a reasonable estate plan in place to begin with. Some estates can be quite complex, and you will need the guidance of an experienced estate attorney…
Read More