Many people believe the common misconception that if their assets name beneficiaries or have payee-on-death or transferee-on-death designations, their plan is sufficient, right? Unfortunately, that’s not necessarily the case. Under this assumption, you truly don’t know who will inherit your assets when you die, simply because you don’t know for sure who will outlive you. Further, an inheritance could disrupt certain benefits your beneficiary may be receiving. In the event that your named beneficiary were to pass before you, who would you want to inherit after them? If you don’t make these decisions ahead of time, you may be leaving it to the law to decide for you. Now, let’s talk about Wills. If you have a Will that gives instructions on what to do with your assets at your passing, bravo! This is an important step for ensuring your wishes are honored after death. I want to share a few bumps in the road that your family might run into if this is the only document you have. A Will is not effective until you die and the Will is probated. Further, at your death, until the Will is probated (small estate exceptions might be available), the Executor has no authority to apply the instructions of the Will. This creates a lot of stress in a time that is already emotional for the family. Having a Will is important, but pairing it with other essential documents creates a more comprehensive plan for your future. Let me share a story with you. A friend of mine inherited $20,000 from her maternal grandmother as a toddler. When we were in college, she went to her father to get the money and found out it had been used to purchase the family’s above-ground pool and deck. Her older siblings received theirs, but they were grown when grandmother died. There are ways to prevent something like this from happening. Specific wording can be included in your estate plan stating that if a beneficiary is underage, their inheritance will be protected in a trust until they reach a certain age, graduate from high school or college, or meet another milestone you choose. Laying out these specific wishes helps ensure that your legacy goes where you want it to, when you want it to. I often find when meeting with clients that they believe they have a sufficient plan. They’ve signed their Will and named their beneficiaries, and done their best to cover all their bases. But oftentimes, there are crucial steps they may not realize they’ve missed that can make all the difference in protecting their family after they’re gone. Meeting with a professional can help identify those gaps and ensure your plan truly reflects your wishes. Don’t wait until your family is left to sort through the details. Take the time now to make sure your plan is complete, your wishes are clear, and the people you love are protected.
Many people come to an Estate Planning or Elder Law appointment not knowing what questions to ask, what documents matter most, or what options are available to them. That uncertainty is exactly why our firm begins the process differently. Before meeting one-on-one with an attorney, we invite prospective clients to attend a complimentary educational workshop. In approximately 75 minutes we provide a practical foundation on the terminology, strategies, and tools commonly used in Estate Planning and Elder Law discussions. Our workshop is designed to make your personal consultation far more productive, and what we consistently find is that education changes the conversation. Attendees leave with a clearer understanding of what they need to discuss and what planning opportunities may exist for them. In many cases, they also discover strategies or services they did not even realize were available. Some, especially detail-oriented individuals like engineers and analytical planners, appreciate having the opportunity to prepare their questions in advance so they can maximize the value of their consultation. One of the topics we often clarify is the common misconception that simply having a Power of Attorney automatically avoids Guardianship. Understanding distinctions like these can make an enormous difference when planning for the future. If you are considering Estate Planning or have concerns about Elder Law or Medicaid planning, attending the workshop is often the best first step. It gives you the knowledge and confidence to make informed decisions and helps ensure your consultation is focused, efficient, and valuable from the very beginning. Originally published in the News and Tribune Written by Margaret Timmel, Attorney at Timmel Richards Stengel Law
When people think of estate planning, they often focus on what happens to their assets after they pass away. But a strong estate plan goes beyond that-it also addresses what happens if you become incapacitated and need someone to make decisions on your behalf. It ensures you have named trusted individuals to act during your lifetime and after your passing, with contingencies in place for the unexpected. For example, what happens if the person you name as an agent or heir becomes disabled or predeceases you? Without a plan, state law-not you-will dictate who acts on your behalf or inherits your estate. If you become disabled and don't have the capacity to sign a Financial Power of Attorney or a Healthcare Power of Attorney (sometimes called a General Durable Power of Attorney or Healthcare Directive), a court ordered guardianship will be required before anyone can legally make decisions for you. While there are limited exceptions for certain healthcare decisions, having these documents in place can help avoid the expense and time associated with guardianship proceedings. Upon your passing, it's equally important to have clear instructions regarding the distribution of your assets. Without a plan, ownership provisions or state laws will determine who inherits what. For instance, if you own a joint account with one of your children, that account automatically becomes theirs upon your death-with no legal obligation to share it with their siblings. Similarly, assets with designated beneficiaries, pay-on-death, or transfer-on-death provisions will pass directly to the named individual(s). But what happens if a named beneficiary predeceases you or becomes incapacitated? Without proper planning, this could lead to unintended consequences and even family conflict. To avoid these issues, a Will or Trust provides clear instructions. A Will outlines how your assets should be distributed after your death, but only becomes legally effective when probated (filed in court). In Indiana, for example, if a Will isn't probated within three years of death, it can no longer be used, and state law will control. A Trust, on the other hand, can provide instructions for both your incapacity and after your passing without requiring probate, offering greater flexibility and privacy.
