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Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will – a 6% decline from 2023. The Ameriprise survey found that 52% of couples lack estate plans. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action. Let’s examine these misconceptions and their potentially devastating consequences.

Myth 1: “I don’t have enough assets to need an estate plan.”

This dangerously narrow thinking ignores that estate planning isn’t just about financial wealth. It’s about doing the right thing for the people you love so you don’t leave a mess, and about ensuring your wishes for your own care are considered if you cannot make decisions for yourself due to accident or illness.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

• Ensuring what you DO have goes to the people you want in the way you want (and stays out of the court process);
• Your children being raised by people you choose;
• Your wishes for your medical care are honored if you become incapacitated, or if your mind deteriorates;
• Only people you trust are able to manage your finances if you can’t manage your finances yourself, and
• Leaving your loved ones with your most valuable assets – your values, insights, stories, experiences and your love.

Moreover, a Life & Legacy plan can minimize conflict among your loved ones. By clearly outlining your intentions, and ideally getting my support to share your intentions with your loved ones, you significantly reduce the chances of misunderstandings or disputes, while also increasing the chances that your resources will be used to create a better future for the people you love.

Finally, an estate plan that works will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, what to do with it when they do find it, and keeps them out of court and conflict.

In short, an estate plan is not a luxury reserved for the wealthy; it’s a necessity for anyone who has things that matter, and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated) let’s talk soon.

Myth 2: “My spouse and I trust each other completely.”

Ameriprise’s survey reveals 95% of couples trust each other with finances and 91% share financial values. When couples don’t plan because they trust each other to carry out each other’s wishes, they’re overlooking several essential matters.

For instance, trust between spouses doesn’t prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages, or minor children.

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parent had planned to provide.

Myth 3: “Estate planning is too expensive.”

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments you can make, as well as the best gift you can give to the people you love.

Myth 4: “I don’t need to worry about who would raise my kids.”

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection PlanⓇ, which I support you to create, the decision about who raises your children will be left to a judge – a complete stranger to you and your children. And when a stranger makes the decision about who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned your children being raised. Even if you have named legal guardians for your children in a prior created will, it’s likely not taken into consideration the 6 common mistakes I see consistently when people (and even their well-meaning lawyers) name legal guardians without the training I’ve had as a Personal Family Lawyer® around planning for the needs of families with minor kids at home. If you have a minor child, and have named legal guardians, but want me to review your plan to see if you’ve made any of the 6 common mistakes, call my office.

Another important consideration is the financial burden imposed on your children’s chosen guardian. If you haven’t created a Life & Legacy plan, and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more difficult choice.

A Life & Legacy plan alleviates the potential financial burden on your chosen guardians and ensures that your children receive the care and stability they need during an emotionally challenging time.

Take Action Now to Protect the People You Love

I’ve seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven’t experienced it yourself, chances are you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

As a Personal Family Lawyer® firm, I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then we will work together to create a plan that aligns with your values, your goals, your loved ones, and most importantly, that works when you need it to.

We call it the Life & Legacy Planning® process, and once you’ve created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected.

Book a call with us today to get started.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

You know that uneasy feeling when you think about what everyone you love would do, if (and when) something happens to you? That nagging voice reminding you that you still haven’t created a will or trust or updated the estate plan you do have?

As we enter 2025, it’s time to stop pushing those thoughts aside and take action to protect the people you love most. Many people avoid estate planning because they think it will be complicated, expensive, too time-consuming, or emotionally challenging. But the truth is, not having a plan, or having an out-of-date plan, is far more costly – financially, emotionally, and time-wise – for the people you love.

Let’s take a look at five things you can do right now to create lasting peace of mind.

Step 1: Get Financially Organized

One of the biggest challenges people face after losing a loved one is trying to piece together their financial life. Where are all the accounts? What insurance policies exist? What bills need to be paid? Without proper organization, your family could spend months or even years trying to track everything down. Worse yet, anything they don’t find will be turned over to the State Department of Unclaimed Property, where there are approximately $60 billion in lost assets nationwide.

As important as it is, financial organization isn’t just about making lists – it’s about creating a clear roadmap for the people who will handle your affairs when you cannot. This includes documenting all your accounts, insurance policies, important passwords, and key contacts. When your loved ones need access to this information, it should be readily available, updated, and easy to handle. This is why our Life & Legacy Planning process begins with a financial organization, and then our ongoing Life & Legacy Planning service supports you to maintain your financial organization throughout your life, so it’s handled with as much ease as possible for the people you love when something happens to you.

Step 2: Create a Lasting Message for Your Loved Ones

When someone dies, their loved ones often wish they had one more conversation, one more chance to hear their loved one’s voice or read their words. That’s why recording a Life & Legacy Interview is part of our planning process. It’s truly one of the most meaningful gifts you can give the people you love, and who love you.

This message isn’t just about saying goodbye – it’s about sharing your values, hopes, and life lessons. Think about what you want future generations to know about your life journey.

What wisdom do you want to pass down?

What family stories, or even recipes, should be preserved?

While you may think “generational wealth” is just about money, the truth is that people who are able to learn from the recorded history of past generations have true generational wealth that’s far greater and irreplaceable than any dollar ever could be.

Your words will become a treasured part of your legacy, offering comfort and guidance long after you’re gone.

Step 3: Learn About Tax Planning

Many people don’t realize that proper estate planning can help minimize or eliminate taxes their loved ones might otherwise have to pay. Without planning, they could lose a significant portion of their inheritance to estate taxes, income taxes, or capital gains taxes.

Strategic tax planning isn’t about avoiding your obligations – it’s about ensuring more of your hard-earned assets go to the people you love rather than the government. Working with a trusted advisor who understands both estate and tax law can help you identify opportunities to protect your loved ones’ financial future.

Step 4: Plan Your Final Farewell (and Your Last Days)

While it might feel uncomfortable to think about your funeral, planning and paying for it in advance is one of the most loving things you can do for the people you love. When you’re gone, they will be grieving. The last thing they need is to make difficult decisions about your funeral while trying to guess what you would have wanted.

By planning ahead, you not only ensure your wishes are honored but you also protect the people you love from emotional overspending during a vulnerable time. You can choose and pay for exactly what you want, locking in today’s prices and relieving your loved ones of this financial burden.

Even more importantly, consider how you want to spend your last years, months, or even days and discuss that with the people who will be responsible for your care now. This could be a conversation we can help facilitate if bringing it up or even thinking about it alone feels too challenging or if you keep putting it off. This courageous conversation is one of the best gifts you can give to the people you love.

Step 5: Create a Comprehensive Life & Legacy Plan

All these elements come together in our comprehensive Life & Legacy Planning® process, which guides you to understand the law and how it will apply to your unique situation, considering your family dynamics and assets, so you can make educated and informed choices to ensure your loved ones stay out of court and out of conflict when something happens to you. This isn’t just about creating legal documents – it’s about creating a plan, maintaining it, and ensuring your loved ones know who to turn to when something happens to you.

When you create a Life & Legacy Plan with me, it includes clear instructions about who gets what, who’s in charge of what, and most importantly, how to find and access everything when needed. It also includes specific directives about what happens if you become incapacitated. In addition, you’ll have the opportunity to outline your memorial service, and we’ll support you to record a Life & Legacy Interview that your loved ones will cherish for the rest of their lives.

The start of a new year is the perfect time to take these essential steps to protect the people you love. Don’t wait until it’s too late – the greatest gift you can give your loved ones is the gift of preparation and peace of mind.

How We Help You Get Started

As your Personal Family Lawyer® Firm, we help you put these essential protections in place. Through our Life & Legacy Planning® process, we’ll guide you in creating a lasting message for your loved ones, implementing smart tax strategies, planning your final arrangements, getting your finances organized, and creating a comprehensive plan that ensures the people you love stay out of court and conflict. Most importantly, we’ll help you make informed decisions that align with your values and wishes. So don’t delay! Let us help you start the new year by doing the right thing for your loved ones.

Click here to schedule a complimentary 15-minute consultation to learn more.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

UPDATE: Many recent changes have occurred related to the Corporate Transparency Act (“CTA”) and the requirement for all business owners to disclose their personal information to the US government.

Here’s what’s transpired since a Texas federal court first suspended the CTA filing deadline on December 3, 2024:

• On December 23, 2024, the 5th Circuit Court of Appeals reinstated the CTA and its filing requirements for business owners, extending the deadline from January 1, 2025 to January 13, 2025.
• On December 26, 2024, the 5th Circuit reversed itself, suspending the deadline once again while it takes time to review the “parties’ weighty substantive arguments.”

What this means for you: As of now, the filing requirement is optional. However, as we’ve seen this week, this is subject to change on any given day, so check back here and we’ll keep you updated. In the meantime, to learn more about the CTA, including the filing requirements now and in the future, book a call with us to find out how we can support you and your family business in staying out of court and conflict.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

When preparing for college expenses, understanding how financial aid and estate planning intersect can make a significant difference. This article will break down the essentials of how asset ownership influences aid eligibility, offer actionable strategies to increase the chances of receiving aid, and highlight estate planning tools that can protect your wealth while optimizing support for your child’s education.

FAFSA and Asset Ownership: The Basics

The FAFSA, or Free Application for Federal Student Aid, evaluates a student’s financial need based on several factors, including family income and assets. However, not all assets are created equal in the eyes of FAFSA. The way those assets are owned—whether by the parent, the student, or even a third party—can have a big impact on financial aid eligibility.

Here’s the key: FAFSA assesses up to 5.64% of parent-owned assets when calculating the Expected Family Contribution (EFC). For student-owned assets, though, that number jumps to a whopping 20%. So, keeping assets out of your student’s name increases their chances of receiving financial aid.

Put another way, parent-owned assets are less punitive than student-owned ones. Consider assets like your savings account, investments, or a 529 college savings plan. If you, the parent, own the asset, only 5.64% of its value is considered in the EFC calculation.

But if your child owns assets outright—like in a UGMA or UTMA custodial account— those accounts will be subject to a 20% assessment. For example, if your child has $10,000 in one of these accounts, FAFSA will expect $2,000 of it to go toward college costs. Ouch.

What can you do? You can’t legally change ownership of UGMA/UTMA accounts because they belong to the child. However, for future savings, consider using a 529 plan or a parent’s investment account instead.

And what about third-party-owned assets? If Grandma owns the 529 plan, FAFSA doesn’t count the asset itself, but it will count distributions as student income in the following year—and student income (as compared to student assets) is assessed at up to 50%. If Grandma’s generous in the wrong way, that could seriously hurt your student’s financial aid package.

Estate Planning Meets FAFSA

Here’s where estate planning comes into play. By structuring your assets wisely, you can minimize their impact on financial aid. Let’s explore a few strategies:

1. Irrevocable Trusts

An irrevocable trust can be a powerful tool in estate planning and can remove assets from a person’s estate for tax purposes. However, irrevocable trusts are counted for FAFSA purposes if the student or parent is a beneficiary of an irrevocable trust. Note that the entire value of the trust should not be reported, but the beneficiary’s proportional share must be reported. In addition, if the trust distributes income to the student, that income will be assessed at up to 50%. So use irrevocable trusts with caution.

2. Retirement Accounts: Hidden Gems

Good news: FAFSA does not count assets in qualified retirement accounts like 401(k)s, IRAs, and Roth IRAs. This makes retirement savings a double win—you’re preparing for your future in a tax-advantaged manner and protecting your child’s financial aid eligibility.

Pro tip: If you have extra savings that would otherwise count on FAFSA, consider contributing to your retirement account. It’s a FAFSA-friendly way to reduce your countable assets.

3. Pay Down Debt

Another savvy move is to use liquid assets to pay down debt, such as your mortgage or student loans. FAFSA doesn’t count your home’s equity or the balance of your debts, so this strategy can reduce your reportable assets without hurting your financial position.

4. Timing Is Everything

FAFSA looks at your financial situation as of the day you file the form. That means you can time certain financial moves to optimize your aid eligibility. For instance, if you’re planning to sell an investment or receive a large bonus, try to do so after filing FAFSA to avoid inflating your assets or income for that year.

Practical Steps to Take Now

So, what can you do right now to prepare? Here are some actionable steps:

Review Your Assets: Make a list of all your family’s assets, including who owns them. Pay special attention to student-owned accounts and assets held in trusts.

Shift Savings to FAFSA-Friendly Accounts: If you’re saving for college, prioritize 529 plans owned by you, the parent. Avoid putting large sums into custodial accounts.

Create a Life & Legacy Plan: Work with me to create a comprehensive Life & Legacy Plan that may include irrevocable trusts or other strategies to protect your assets and your financial aid eligibility.

Max Out Retirement Contributions: If possible, contribute to your 401(k) or IRA to reduce your countable assets while securing your financial future.

Plan Ahead for Income Events: Be mindful of how bonuses, stock sales, or other income events could affect your FAFSA profile. If possible, defer these until after filing.

The Big Picture

Balancing estate planning and FAFSA eligibility can feel like walking a tightrope. On one hand, you want to preserve your family’s wealth and secure your child’s future. On the other, you don’t want to leave money on the table when it comes to financial aid.

By understanding how asset ownership works and taking strategic steps, you can position your family for success. Whether it’s shifting assets, leveraging trusts, or timing your financial moves, a little planning can go a long way. And when that acceptance letter arrives—along with a generous financial aid package—you’ll be glad you took the time to get it right.

How We Help

As your Personal Family Lawyer® Firm, we can help you create a comprehensive strategy that optimizes both education funding and wealth preservation goals. We’ll work with you to structure your assets effectively and ensure your plan adapts as the law changes, your assets change, or your family dynamics change. Our approach focuses on creating clarity and consistency across all aspects of your financial planning, from education funding to legacy preservation.

Book a call here to learn how we can help you create the right plan for your family.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

The end of the year can feel overwhelming, but it’s also a time to set yourself up for credits and deductions that can put real money back in your pocket come tax time this April. From the Earned Income Tax Credit to residential energy improvements and even adopting a child, there are a wealth of opportunities to lower next year’s tax bill or increase your refund.

Here’s a quick guide to the top tax credits for 2024 and actionable steps you can take now to help you maximize your savings:

Need Some Extra Cash? Use the Earned Income Tax Credit (EITC)

What to Do:

• Ensure you have earned income from wages, self-employment, or other qualifying sources.
• Keep accurate records of your income and any dependents.

Tip: Even if your income is low, file a tax return to claim this credit, as it is a refundable credit, meaning you can get a refund, even if you didn’t pay taxes due to low income.

Got Minor Kids at Home? Use the Child Tax Credit (CTC)

What to Do:

• Make sure your children have valid Social Security numbers before 12/31/2024.
• Ensure dependents meet the criteria (under 17 years old).
• Keep documentation like birth certificates, school records, and proof of residency.

Tip: Ensure both parents agree on who will claim the child, if filing separately.

Got Kids Who Need Care? Use the Child and Dependent Care Credit

What to Do:

• Pay for childcare or dependent care expenses by December 31, 2024.
• If you will not qualify because of too much income next year, and you have not yet maxed out your Child & Dependent Care Credit this year, consider paying in advance before end of year for services that will be delivered in 2025.
• Obtain your childcare provider’s Tax ID (EIN or SSN) and keep records of payments.
• Ensure the care is provided so you (and your spouse, if married) can work or look for work.

Got Kids in College? Use the American Opportunity Tax Credit (AOTC) & Lifetime Learning Credit (LLC)

What to Do:

• Pay for qualified education expenses (tuition, fees, books) by the end of 2024.
• Ensure your educational institution issues a Form 1098-T.
• Verify that you or your dependent is enrolled at least half-time for the AOTC.

Tip: The AOTC is only available for the first four years of higher education.

Ready to Save for Retirement? Use the Saver’s Credit (Retirement Savings Contributions Credit)

What to Do:

• Contribute to a retirement account (e.g., 401(k), 403(b), IRA) by December 31, 2024.
• For Traditional or Roth IRAs, you have until the April 15, 2025 deadline to contribute.
• Even if you will not make your contribution until next year, get your account setup before the end of this year.

Tip: Even small contributions can qualify for this credit.

Need Health Insurance? Use the Premium Tax Credit (PTC)

What to Do:

• Enroll in a Health Insurance Marketplace plan during the 2024 open enrollment period.
• Report any income changes to the Marketplace to adjust advance premium credits accurately.
• Keep records of your health insurance premiums (Form 1095-A).

Adopting a Child? Use the Adoption Credit

What to Do:

• Complete the adoption process or incur adoption-related expenses by the end of 2024.
• Keep detailed records of qualified adoption expenses (e.g., fees, court costs, travel).
• Ensure you have the necessary documentation for the adopted child.

Need Windows or HVAC Upgrades? Use Residential Energy Credits

What to Do:

• Make qualifying energy-efficient home improvements (e.g., insulation, windows, HVAC) by December 31, 2024.
• Install renewable energy systems (solar panels, wind turbines, battery storage).
• Obtain and keep receipts, invoices, and Manufacturer’s Certification Statements.

Tip: Check the eligibility of improvements to maximize the credit.

Need a New Car? Use Electric Vehicle (EV) Credits

What to Do:

• Purchase a qualifying electric vehicle or plug-in hybrid by the December 31, 2025
• Verify that the vehicle qualifies for the federal credit (check the IRS list).
• Obtain the sales invoice and confirm eligibility for the credit at the time of purchase.

Got Healthcare Costs? Use Your Health Savings Account (HSA) & Flexible Spending Accounts (FSA)

What to Do:

• Contribute to your HSA (up to $4,150 for individuals and $8,300 for families in 2024) by December 31, 2024.
• Use your FSA funds by the end of 2024 or the plan’s grace period to avoid losing the money.
• Keep receipts for qualified medical expenses.

How We Help You Make Smart Financial Decisions

As your Personal Family Lawyer® Firm, we understand that tax planning is just one piece of your overall financial picture. That’s why we have a comprehensive Life & Legacy Planning® process that takes into account not just your estate planning needs, but also helps you make informed decisions about your finances that can benefit you and your family both now and in the future. We’ll help you understand how different financial choices – from energy improvements to adoption – can impact your tax situation and overall financial wellbeing. We’re here to support you in making educated decisions that align with your family’s goals and values.

Click here to schedule a complimentary 15-minute consultation to learn more.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

The desire to make a difference doesn’t end when we’re gone. For many people, incorporating charitable giving into their estate plan provides a way to support causes they care about while creating a lasting legacy. Whether you want to establish a scholarship fund, support medical research, or help your local community, thoughtful charitable planning can maximize your impact while potentially providing tax benefits for your heirs.

Since this time of year invokes a desire to give to those less fortunate, and take advantage of tax benefits, let’s explore how you can do that by including charitable giving in your Life & Legacy Plan.

Understanding Your Charitable Giving Options

When it comes to charitable giving through your estate plan, you have several options to consider. The key is finding the approach that best aligns with your values, goals, and overall estate planning strategy. Some common methods include:

Direct Bequests: The simplest way to include charity in your estate plan is through a direct bequest in your will or trust (“bequest” simply means leaving something to someone in your estate plan, whether it’s money or personal belongings). You can specify a fixed dollar amount or percentage of your estate to go to your chosen charitable organizations. This approach provides flexibility and can be easily modified if your circumstances change.

Note that for tax purposes generally, any charitable bequest (to a “qualified” charity per the IRS, typically a 501(c)(3) organization) is tax deductible and will reduce the tax liability of your estate. If you want to receive a tax deduction now, however, give an outright gift. In 2024 you can give up to $18,000 to each person or organization without having to report the gift to the IRS or pay gift tax. That number increases to $19,000 per donee in 2025.

Required Minimum Distributions with Qualified Charitable Distributions (QCDs). If you’re over 70.5 (or have parents who are) and don’t need your required minimum distributions (RMDs) from your retirement accounts to live on, here is a tax-saving, life-affirming strategy: Consider making a qualified charitable distribution (QCD) of your RMDs to a 501(c)(3) of your choosing before year-end, and lower your taxes, support your favorite cause or movement, and possibly kick yourself down into a lower tax bracket for your other taxable income. You can distribute up to $105,000 (2024) or $108,000 (2025) directly to a 501(c)(3) public charity of your choice.

Charitable Trusts: For those with larger estates, charitable trusts offer sophisticated ways to benefit both charity and your heirs. A charitable remainder trust can provide income to your beneficiaries for a set period, with the remaining assets going to charity. Conversely, a charitable lead trust can provide income to charity for a period, with the remainder going to your beneficiaries. Note that charitable trusts are typically used to save money on capital gains tax as part of a sale transaction.

Donor-Advised Funds: A donor-advised fund (or DAF) is a way to make charitable contributions during your lifetime to a fund that is then invested and managed by a fund manager, and as the donor, you are able to recommend grants to your favorite charities over time. When using a DAF, you can name successor advisors, enabling your children or other loved ones to continue your charitable legacy through your DAF after you’re gone. Gifting to a donor-advised fund is similar to gifting to a family foundation but with minimal administrative time or energy required. On the flip-side, DAFs are often not used as intentionally as they could be. If you have a DAF, or want to set one up, let’s discuss what I mean by this so you can be sure to use yours as intentionally as possible.

Family Foundation: For families with more significant assets, and a desire to govern and control the use of those assets, while also creating a lasting legacy, the private family foundation is the way to go. With a private foundation, you control the investments, the governance, the distributions, and can use the foundation as a multi-generational educational tool for the family.

Making Your Charitable Giving More Effective

To ensure your charitable giving achieves maximum impact, consider these important factors:

Tax Implications: While tax benefits shouldn’t be the primary motivation for charitable giving, proper planning can help reduce estate taxes and maximize the impact of your gifts. Certain charitable giving strategies as discussed above, can provide immediate income tax benefits during your lifetime while reducing estate taxes after your death.

Timing of Gifts: Consider whether making charitable gifts during your lifetime might be more beneficial than waiting until after your death. Lifetime giving allows you to see the impact of your generosity and may provide immediate tax benefits.

Selection of Charities: Research potential charitable recipients carefully. Look for organizations with strong track records of effectively using donations to advance their missions. Consider whether you want to support large national organizations or smaller local charities.

Involving Your Family

Charitable giving through your estate plan can do more than just support worthy causes – it can help instill philanthropic values in future generations. Consider these approaches:

Family Discussions: Talk with your family about your charitable intentions and the causes that matter to you. These conversations can help your loved ones understand your values and motivations while potentially inspiring their own charitable giving.

Collaborative Decision-Making: If you establish a donor-advised fund or family foundation, involve your children or grandchildren in grant-making decisions. This hands-on experience can help them develop their own philanthropic interests while carrying forward your legacy.

Educational Opportunities: Use your charitable giving as a teaching tool to help younger family members learn about financial responsibility, social issues, and the importance of giving back to the community.

Creating Your Charitable Giving Plan

As your Personal Family Lawyer®, I can help you develop a comprehensive charitable giving strategy that aligns with your overall estate planning goals. I’ll work with you to:

• Identify the charitable causes most important to you
• Select the most appropriate giving vehicles for your situation
• Structure your giving to maximize tax benefits
• Ensure your charitable intentions are properly documented
• Create a plan for involving future generations

We’ll also help you maintain flexibility in your plan, recognizing that charitable organizations and family circumstances can change over time.

While estate planning often focuses on what happens after we’re gone, charitable giving allows you to start building your legacy today. By thoughtfully incorporating philanthropy into your Life & Legacy Plan, you can create positive change that extends far beyond your lifetime while potentially providing tax benefits for your loved ones.

How We Help You Create a Meaningful Legacy

As a Personal Family Lawyer® Firm, we help you create a comprehensive Life & Legacy Plan that includes charitable giving strategies aligned with your values and goals. We’ll work together to ensure your philanthropic wishes are properly documented and structured for maximum impact, while keeping your family out of court and conflict. With your charitable giving plan in place, you can rest easy knowing you’ve created a meaningful legacy that will benefit both your loved ones and the causes you care about most.

Click here to schedule a complimentary 15-minute consultation and learn how we can help you create your charitable giving legacy.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

A federal judge in Texas issued a ruling this week that could affect millions of business owners across the country. Let’s break down what this means for you and your business.

The Ruling and Its Immediate Impact

On December 3, 2024, a federal court issued a nationwide preliminary injunction blocking the Corporate Transparency Act (CTA) and its associated Reporting Rule. This means the January 1, 2025 deadline for beneficial ownership reporting has been suspended. If you were scrambling to gather your company’s ownership information for the new federal reporting requirements, you can take a breath and pause on your filing – at least for now. If you already filed, there’s nothing you need to do.

Why Did This Happen?

The court found that the CTA likely exceeds Congress’s constitutional authority. While the government argued that the law was necessary to combat financial crimes, the court determined that Congress may have overstepped its bounds in creating these reporting requirements.

The ruling affects approximately 32.6 million companies that would have been required to report their ownership information to the Financial Crimes Enforcement Network (FinCEN). This includes most small businesses, LLCs, and corporations in the United States.

What This Means For Your Business

For now, the CTA’s reporting requirements have been put on hold. However, this is a preliminary injunction, which means:

• The ruling could be appealed
• The requirements could be reinstated
• The law could be modified to address constitutional concerns

Stay tuned, and we’ll keep you posted as new information becomes available.

Looking Ahead

As your Personal Family Lawyer® Firm, we’re monitoring this situation closely. While this ruling provides temporary relief from reporting requirements, it’s important to stay prepared. We can help you understand how these changes might affect your business and ensure you’re ready to comply if the requirements are reinstated.

Book a call with us here to schedule a Life & Legacy Planning Session and discuss how we can help protect your business interests.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a comprehensive Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® Firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

When it comes to planning for your family’s future, the options can feel overwhelming. Should you get a will? Create a trust? And what happens if you do nothing at all? These aren’t just academic questions – your choices today will impact your loved ones tomorrow. In this second installment of a two-part Q & A series, I’ll break down the key differences between your primary estate planning options and explore practical ways to ensure your family is protected, no matter what the future holds. So, let’s dive in, beginning with a question about the basic estate planning documents.

Q: What is the difference between a will, living trust, and dying intestate? And what does that mean, practically speaking?

A: If you die without an estate plan, you do have a plan – it’s just the plan chosen for you by the state, and you may not like it. Almost certainly, your loved ones won’t like it because it means they’ll likely need to deal with a court process called “probate.” When you die without a will, it’s called dying “ intestate,” and it means that your assets are distributed according to state law after a process in which a judge decides who gets what. This could mean your assets would not go to the people you choose in the way you choose, and your family could face a lengthy, expensive, and public court process during an already difficult time.

A will is your basic instruction manual for what happens to your assets after you die, but it still requires your family to go through the probate process. While a will allows you to name guardians for your minor children and specify who gets what, your “executor” or “personal representative” must file the will with the court and potentially wait months or even years before receiving your assets. Plus, everything becomes public record – so anyone can look up what you owned and who got what, leaving the inheritors open to predators.

If you create a trust, your assets can be passed to the people you choose without a court process and completely privately. Think of a trust like a container that holds your assets during your lifetime and then, upon your incapacity or death, a successor trustee you’ve named can step in to handle your assets, manage your affairs, and pass your assets to your chosen beneficiaries. With a properly funded trust, your beneficiaries could receive their inheritance within weeks or months instead of months or years.

Q: Is probate always required when someone dies?

A: The necessity of probate depends largely on how your assets are titled when you die and the total value of assets that are in your personal name at the time of your death. Assets that are solely in your name with no beneficiary designation must go through probate, and the distribution must be ordered by a Judge. There are some exceptions: jointly owned property automatically passes to the surviving owner, assets with named beneficiaries (like life insurance policies and retirement accounts) go directly to those beneficiaries, and assets held in a properly funded living trust transfer according to the trust’s instructions, without court involvement.

These issues can be complicated and have a huge impact on your loved ones, so it’s important to work with a trusted advisor who can help you understand your goals, and then properly structure your assets to accomplish your goals, especially if you want to keep your family out of court and out of conflict. Keep reading to find out how I can help.

Q: What if I’m uncomfortable talking about death and money?

A: While it’s completely natural to want to avoid thinking about death and avoid talking about money, not planning for the reality of death or a possible incapacity before death can leave your loved ones with an expensive, time-consuming mess to clean up during what will already be an emotionally difficult time. Here’s what you absolutely must know: First, if you become incapacitated or die without a plan, the court will make all the decisions about your care and your assets according to state law, not according to what you would have chosen.

Second, if you have minor children and no estate plan, the court will decide who raises your children and who takes care of the assets you leave behind, all without your input. Think about that for a moment. A judge is a complete stranger to you and your kids, yet that’s who will decide your children’s future – who makes decisions about their education, their health matters, and their financial affairs. And, then, whatever you leave behind and whatever is left after the court process goes to your children when they turn 18, without protection (i.e., they’ll be free to spend it all as quickly as they want). If that concerns you, you need a plan of your own.

Third, your family will likely have to spend significantly more time and money dealing with your affairs if you don’t have a plan in place than if you had taken the time to create one. The good news is that creating a plan doesn’t have to be overwhelming or uncomfortable—working with a trusted advisor who can guide you through the process step by step can actually bring you peace of mind, knowing you’ve taken care of the people you love.

Q: How can you minimize the stress to your family by handling these matters in the simplest way possible?

A: The best way to minimize stress for your family is to create a clear, comprehensive Life & Legacy Plan before anything happens to you. Many people think creating an estate plan will be stressful, but it’s actually the lack of planning that creates the most stress for families.

When you work with me as your Personal Family Lawyer®, I make the process simple:

First, I help you get clear about what you own and what would happen to everything you own and everyone you love (including yourself) when something happens to you. Then, I support you to make informed, empowered choices about who should receive your assets, who should be in charge of carrying out your wishes, and how you want it all handled. Finally, I help ensure your plan will actually work when your family needs it by supporting you to review your plan regularly as your life changes and ensuring we maintain an updated inventory of your assets to ensure none of your assets are lost to the state due to oversight, after your death.

Beyond creating the right legal documents, I’ll support you in other ways to make things easier for your loved ones. I’ll help you document specific wishes you have for personal items with sentimental value and to have conversations with your loved ones about your choices so there are no surprises later. We’ll conduct a Life & Legacy Interview so you can pass on your values, insights, and stories – the intangible (and most important) assets that are often lost when someone dies. Most importantly, I will be there for your family when you can’t be there, to guide them through the process and ensure your wishes are carried out properly. This is the power of our Life & Legacy Planning® process.

How We Help You Create Peace of Mind

As your Personal Family Lawyer® Firm, we understand that thinking about death and money can feel overwhelming. That’s why we’ve created a simple, step-by-step process to help you get your affairs in order and ensure your family is protected. Our Life & Legacy Planning process goes beyond just creating legal documents – we help you make informed decisions about your family’s future, keep your plan updated as your life changes, and ensure your wishes will be carried out properly when the time comes. Most importantly, we’ll be there for your family when you can’t be, providing the guidance and support they’ll need during a difficult time. You’ll gain peace of mind knowing you’ve done everything possible to make things easier for the people you love.

Click here to schedule a complimentary 15-minute consultation to learn more about how we can help.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a comprehensive Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® Firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.

When it comes to estate planning, I get many questions about many topics. One of the most common questions I hear concerns account ownership and asset management. Understanding how accounts are titled and who has access to them isn’t just about convenience—it’s about ensuring your assets transfer smoothly to your loved ones while protecting them from potential risks.

In this first installment of a two-part series, I’ll answer the most common questions about asset ownership and management. I’ll also outline ways in which you can make things as easy for your family after your death. So let’s dive in, beginning with a question about joint assets.

Q: What’s the difference between joint ownership and transfer-on-death designation?

A: Joint ownership means both parties have full access to and ownership of a specific account or piece of real estate, while living. When one owner dies, the surviving owner automatically receives full ownership. This can be convenient but comes with risks – a joint owner can withdraw all the money at any time, and the account could be vulnerable to either joint owner’s creditors or legal judgments.

On the other hand, transfer-on-death (TOD) or payable-on-death (POD) beneficiary designations give you sole control during your lifetime. Your designated beneficiary has no access or rights to the account while you’re alive but receives the assets automatically upon your death. This arrangement prevents another person from accessing your assets while you’re alive and also avoids the court process (called probate) after you die.

One important note: When you have a joint owner on your account, or a designated beneficiary, that person will receive all the funds after you die, no matter how old they are or what your family dynamics are. This can create conflict in your family or can cause someone who’s fiscally irresponsible to potentially inherit a windfall with no safeguards. Lawsuits are filed all the time by disgruntled siblings who find out that the caretaker sibling receives all the money in a parent’s account (or sole title to real estate) rather than being distributed equally among all siblings. If this is a concern to you, read on to find out how you can book a call with me to learn about your options.

Q: If I hold my property jointly, or use a TOD or POD, do I need to have a Trust?

If you use joint ownership or TOD/POD instead of a Trust, you need to consider some traps for the unwary. First, as indicated above, jointly owned property could be at risk from creditors of either party. I think of my client, granddaughter, who was titled on grandma’s bank account. When granddaughter’s husband didn’t pay the bill on the copier contract for his business, the copier company sued and got a judgment against him. Next thing you know, grandma’s account gets garnished because it was held jointly with granddaughter, and granddaughter was liable on the copier judgment.

Suppose you use a TOD or POD to avoid a scenario like that. In that case, the problem is that the TOD/POD only operates in the event of death, not incapacity, and TOD/POD could result in the wrong person ending up getting the assets or the assets ending up in probate if there is an unexpected “order of death” issue. Imagine, grandma leaves house to grandson using TOD, but grandma and grandson are in the car together when there’s an accident, and grandson dies first, with grandma dying shortly thereafter, and before she could change the TOD/POD. Who gets the property, and how? In this case, the property would have to go through probate and pass to grandma’s “next of kin” according to the state intestacy statutes. Given that grandma was leaving her property to grandson, it’s likely she didn’t want the “state’s plan” for her assets. But, that’s what she’ll end up with.

The solution is not to use joint ownership or a TOD/POD to pass title to assets at your death. Instead, set up a trust and retitle the property, and everything can be handled with ease, privately, and in our office, for the people you love.

Q: What happens to retirement accounts and life insurance policies after death?

A: These accounts pass directly to your named beneficiaries, bypassing probate and any instructions in your will, as long as you have named beneficiaries, and if you haven’t named a minor as a beneficiary This is why keeping your beneficiary designations up to date is crucial. If your beneficiary designations are outdated – listing an ex-spouse or deceased person, for example – your assets might not go where you want them to. Even worse, if you have no beneficiary listed, these accounts would go through probate, costing your loved ones unnecessary time and money. If you’ve named a minor as a beneficiary, the assets will be subject to a court process to hold the assets under court order until your minor beneficiary is “of age” – usually 18 or 21, depending on state law.

Q: Do I need an inventory of my assets?

A: Yes, and it’s critically important that you create an inventory and keep it up to date. We include this in all of our planning options because it’s one of the most important parts of the planning process, even though, surprisingly, it’s not part of most estate planning with traditional lawyers or legal insurance plans. Our process, called Life & Legacy PlanningⓇ, includes an asset inventory because if you don’t inventory your assets, your family will not know what you have, how to find it, and how to get access to it as easily and affordably as possible. Lost assets end up in your state’s treasury as unclaimed property. According to the National Association of Unclaimed Property Administrators, approximately 1 in 7 people in the U.S. – or about 33 million people – have unclaimed property, totaling approximately $77 billion dollars. If you want to ensure that your assets go to the people or charities you want rather than to your state government’s unclaimed property fund, you need an asset inventory. And it must stay up to date.

Q: How often should I review my asset inventory and account designations?

A: Your inventory and beneficiary designations need to be kept up to date over time so they reflect your current circumstances when you die. My Life & Legacy Planning process includes regular, ongoing reviews of your asset inventory so no asset ever gets lost.

It’s also important to update your asset inventory and account designations whenever you experience a major life event such as:

• Marriage or divorce
• Birth or adoption of a child
• Death of a beneficiary
• Purchase or sale of significant assets
• Moving to a new state
• Starting a business
• Retirement

When you work with me, you won’t have to remember this on your own. I’ll proactively remind you to update your inventory and beneficiary designations and help make it as easy as possible for you to take action.

Q: What’s the best way to organize and store my asset information?

A: Create a clear, organized system that your loved ones can easily access if something happens to you. However, be careful about including sensitive information like passwords in your will, as it becomes public record after death. Instead, consider keeping this information in a secure location and telling your trusted family members, executor, or trust administrator how to access it. I will help you explore options for the best way to do this when we work together.

How We Help You Get Organized and Protected

As your Personal Family Lawyer® Firm, we help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, proper account titling, and coordinated beneficiary designations. We’ll help you understand the implications of different ownership structures and guide you in making the best choices for your family’s unique situation. Plus, we’ll help you keep everything updated through regular reviews, ensuring your plan continues to work as intended. You’ll gain peace of mind knowing that your assets will go to the people you want in the way you want.

Click here to schedule a complimentary 15-minute consultation to learn more.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. Are you ready to protect your loved ones and legacy? Check out my next presentation.