What is a Trust?
What is a trust?
A trust is an agreement between the grantor of the trust (that’s you) with a trustee (someone named by you) to hold title to assets for the benefit of your beneficiaries (whoever you name). When we break it down in its simplest form, it’s that straightforward. It’s an agreement.
Now, the terms of that “agreement,” called a “trust agreement,” can vary significantly, and that’s where I'll work with you to clarify the terms that you want between yourself and the trustee for the benefit of the people you name as beneficiaries.
Contact me to learn more about creating a trust.
Is a will the same as an estate plan?
No, a will is only one part of an estate plan. And to understand the difference let me define estate plan without using legalese.
An estate plan is a roadmap you make for what happens to you if you become incapacitated (meaning unable to make decisions for yourself) and for what happens to your family and assets (or stuff) after you die.
If you don’t have a plan of your own, the state of Oklahoma has one for you, but it may not be what you’d want.
A will is just one tool used in an estate plan. It allows you to leave assets to particular people or charities, but it does nothing to address incapacity and it does not avoid probate court.
A will alone will not suffice as a complete estate plan.
If you’re interested in learning more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult with me.
#estateplanning #lifeplanning #legacyplanning
How Do I Pass Along Family Heirlooms Peacefully?
Unfortunately, family mementoes are one of the most common causes of conflict among heirs. Here are some tips for helping to keep your family out of conflict over the things you (and they) love:
First, talk to your family about who will get what when the time comes, and work out the details beforehand. Then make sure all family members are aware of the choices you have made and why.
Second, have a complete estate plan that includes a memorandum that explains the specific bequests and consider including that in a recorded audio you leave to your family, so they not only hear your voice, but the stories behind the mementoes as well as your desire for who gets what and why.
Third, don’t play favorites, but do give thought to who you designate to receive what — these are the things your family will most remember.
Finally, to pass along family history and your values, consider creating a Family Wealth Legacy Interview. This can take any form – a letter, a recording, a video – and is not legally binding, but instead helps you pass on the intangibles that make your family unique.
If you would like more information about passing on the things you love to the people you love, contact me today to schedule a time for us to sit down and talk.
#estateplanning #lifeplanning #legacyplanning
We already did our wills so why do we need to update them?
A common misconception is that once you do your will, you’re good to go for the rest of your life.
Not true. Your will, trust, power of attorney and health care directive need to be updated throughout your life. Why? Because otherwise, it may not work when you need it to, or when your family needs it to.
We never know when something will happen to us, so you should make your will based on what’s true at the present time. But as your life changes - and the law changes - your plan should change, too. If it doesn’t accurately reflect your life and the law when you pass away or become incapacitated, it may not be worth the paper it’s written on. It has to reflect the present as much as possible.
A good rule of thumb is to have your plan reviewed every 3 years, which is why it’s a common practice in my firm. In fact, I believe it’s so important, I do it for free for all clients.
If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments).
What estate planning documents should my child, who just turned 18, have in place?
At age 18, your child is now an adult in the eyes of the law. This means you no longer have the authority to make decisions regarding their medical care, nor will you have access to their finances if something happens to them.
Since you are no longer in charge, your child’s greatest liability from a planning perspective is what would happen if they were incapacitated by illness or injury and become unable to make decisions on their own behalf. To prepare for this scenario, you should have your child sign two key documents: an advance directive for health care and durable financial power of attorney.
The health care proxy portion of Oklahoma’s advance directive for health care allows your child to grant you (or someone else) the legal authority to make healthcare decisions on their behalf in the event they are incapacitated and unable to make decisions for themself. The living will portion provides specific guidance about how your child would want their medical decisions made in the event they are incapacitated.
Finally, if your child is incapacitated, you may also need the ability to access and manage their finances, and this is done with durable financial power of attorney, which gives you (or someone else) the authority to manage their financial and legal matters, such as paying tuition and managing their bank accounts.
I can help you create these documents to ensure your child is adequately protected as he or she begins their new life as a young adult.
What are the “must have” documents?
There are some obvious ones: your birth certificate, marriage certificate, your kids’ birth certificates, social security card, passport. But there are also some that most people don’t have.
▪️ A will
▪️ A power of attorney
▪️ A health care directive
▪️ A living trust - if it’s right for your situation
Why are these must have documents?
To make sure that you are taken care of if you get sick or are gravely injured, and to make sure that the people you want to get your stuff after you die do.
Oklahoma law says that you have a RIGHT to tell people where your property goes after your death. A will and trust do just that.
A power of attorney and health care directive tell people what to do with your property and your medical care if you are alive but unable to communicate your decisions.
What happens if you don’t have these must have documents?
Simply put, someone else makes the decisions for you. Someone HAS to. And often, it’s a judge who has no idea who you are and what you want.
This result can be avoided so easily if you just take the time to get your must have documents drafted and signed.
If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments)
Tuesday Q&A: How can I avoid being placed under the care of a professional guardian?
Should you become incapacitated without any planning in place, your family would have to petition the court in order to be granted guardianship. In most cases, the court would appoint a family member as guardian, but this isn’t always the case.
If you have no living family members, or those you do have are unwilling or unable to serve or deemed unsuitable by the court, a professional guardian would be appointed. In another scenario, should your loved ones disagree about who should be your guardian, the court could decide that naming a relative as your guardian would be too disruptive to your family dynamics and appoint a professional guardian instead.
You can avoid this using estate planning. With proper planning, upon your incapacity, a person of your choice would have the immediate authority to make your medical, financial, and legal decisions, without the need for court intervention. Moreover, you can provide clear guidance about your wishes, so there’s no mistake about how these decisions should be made.
If you’re interested in learning more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments)
Happy New Year from Kimberly K Miller, Attorney at Law, PLLC!
#estateplanningattorney
Tuesday Q&A: How long does it take to sell a house in probate?
That’s a great question! And there is no definitive answer. The timeline depends on a number of factors:
Whether there is a will or no will, even though both go through probate;
How the house is titled;
How many heirs there are and whether there’s conflict among them;
How quickly you can get a motion filed. This is an extra step is required to sell a house in probate; and
How long the judge’s backlog is.
Then, of course, when you finally get court approval, there’s the actual selling part: listing the house, getting offers, making it to closing.
The total timeline is anyone’s guess, but it could be months to a year or more.
If you have a house and want your family to avoid the probate process and be able to sell the house faster, talk to an attorney about setting up a living trust.
If you’re interested in learning more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments)
Tuesday Q&A: How do I know I’m picking the right people to raise my kids if I died?
Choosing guardians to raise your kids if you couldn’t is one of the most important decisions a parent should make. Unfortunately, only 33% of parents have actually done this. So, good for you for asking the question in the first place.
When you’re trying to figure out who would be the best choice, know that you don’t have to pick your parents, or your siblings. You can - and should - pick the best people no matter the relation to you or your children.
Start by listing your values, then list all the people in your life who have these values. Then, take into account the age of the people you’ve listed, where they live and whether they could maintain solid relationships with both sides of your family.
Lots of people think the people they choose need to be financially able take on the responsibility and indeed, that is by far the most common reason people decline to serve as your kids’ guardians. But if you work with an experienced attorney, you'll learn how to take care of that piece, and not burden someone else with the money part of raising your kids.
If you’re interested in learning more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments)
Tuesday Q&A: I know I need an estate plan, but where do I start?
This is a great question and one that I get all the time. And the answer is probably not what you're thinking. The answer is: you should start with an inventory of your assets. Now, what does that have to do with estate planning and what happens after I die? The answer to that is everything! Estate planning has way more to do with what types of assets you have and how they're owned. It has a lot less to do with how much money you have. So start with an inventory of your assets and then talk to an attorney. Estate planning is way more complicated than most people think, so talk with an attorney who can make sure that your assets are distributed the right way after you die or become incapacitated.
Any questions? Leave a comment.
If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments).
Time to Update My Estate Plan?
Tuesday Q&A: How Do I Know When It’s Time to Update My Estate Plan?
There are certain triggering events that may necessitate an update of your plan. Some of them are:
• A new marriage or a divorce
• Your spouse passes away
• A new child, whether born to you or adopted
• A child passes away
• The death of one of your chosen executors, trustees, health care agents or powers of attorney
• A change in the law
• A significant inheritance
• You start a new business or buy an existing business
• It’s been a long time since you made your plan
• You purchase an investment property, especially if it’s out of state
These are the most common scenarios, and of course, there are exceptions and nuances to each. But the most important thing to remember is it doesn’t hurt to check with an attorney to see if an update is warranted.
If you’re interested in learning more about whether you should have your plan reviewed by an attorney, schedule a free 15-minute consult call with me (link in comments)
How much should estate planning cost?
Tuesday Q&A: How much should estate planning cost?
The answer is simple: Whatever it’s worth to you.
You can do your will, trust, power of attorney and health care directive for a minimal cost, or even free, online. But do you really understand what you’re signing? Do you know the potential consequences to your family if you don’t do it correctly? Do you know if the form you find is up to date with the current law? Do you know if it will work when your family needs it to?
You could even work with an attorney who just drafts documents, or even wills on the side (which many do). But you’ll get documents that you put away on your shelf and never look at again. What then? There’s a high probability that your plan won’t work when you need it to or your family needs it to. And in that case, you just wasted your money.
So, the real answer is - like most things - you get what you pay for. If you want a plan that you fully understand, and that will work when your family needs it to, it will cost more than a DIY plan, or even what you’d pay working with an attorney who just does documents.
If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments)
#estateplanning #lifeplanning
What EXACTLY is an estate plan, anyway?
Tuesday Q&A: What EXACTLY is an estate plan, anyway?
Attorneys love to use legalese, so here’s my definition:
An estate plan is a roadmap you make that states how you want to be taken care of if you become unable to care for yourself, how you want your assets to be distributed after you pass, and who you want to raise your children if the worst happened and you were no longer here to raise them.
It’s legally enforceable, meaning your wishes will be honored.
Who needs one? Everyone over 18. Even if you don’t have assets to distribute, you should make a plan for what happens to you if you become incapacitated.
And why should you do it? Because if you don’t do it yourself, someone else will have to, and they’ll have to go to court to do it. You are putting them in the position of having to not only make a lot of tough decisions they shouldn’t have to deal with - especially if they’re grieving - but you’re also costing them a lot of time, energy and expense out of their own pockets.
Putting your loved ones through that isn’t fair to them. That’s right; I said it.
If you haven’t done it yet, make it a priority. Your loved ones will thank you - I promise.
If anything you’ve learned here concerns you, and you want to know more about what happens to your family and your assets when you die or become incapacitated, schedule a free 15-minute consult call with me (link in comments).
