Getting a will done

[WapitiBob]

Get a Will and set up a Trust with beneficiaries. There's nothing quite like death to bring money grubbing relatives to the surface.

 

[ashersdad]

Highly recommend an attorney. Each state is different. For example, Oregon's estate tax starts at $1mil. With proper planning, each spouse can exempt $1mil, so $2mil total for a married couple. Without planning, that first $1mil exemption is lost at the first spouse's passing.

 

[Bonasababy]

I suggest this book to read now if you expect will be leaving a legacy amount that is life-altering to one or more beneficiaries: Beyond the Grave

You should aspire to do no harm with your generosity. Unattended outcomes are very possible as more zeros get added to your net worth.

I am party to a modest trust set up in the 1970s by a 60 year old man that had just paid a sizable inheritance bill due to his wife passing away while had done zero estate planning. He could have paid $0 yet by ignorance or need for secretiveness a few million were due. Ouch.

His hope was the trust would keep more money in the family. Meanwhile, estate caps to avoid estate taxes have gone up by millions but the trust got zero of that relief so owes tax on all the gain which is over 90% of the trust’s value. The tax is due if ever sell so will hold until gets step-up basis at my death.

He lived into his 90s, his son lived into his 90s. The son’s spouse lived into her 90s. The trust is now being disbursed in 2026. A lot changed. I was a teenager as the trust was established. I now have grandchildren.

The issue is that provisions in the trust written in the 1970s never accounted for the trust surviving decades until 2026.

If I had died even a day before my father’s spouse then my progeny get equal shares. Progeny spans my adult children and grandchildren. Equal shares. No age restriction as that restriction of age 25 to access the funds expired years ago when I reached 25.

How much money would you need at age 5 or age 16 to make some bad decisions? I have grandchildren that age. For me, any sum that fell into my lap which could buy a new, fast car would have been a bad outcome. Fortunately, I did not get tempted at 16. Fortunately, my grandchildren also escaped that scenario though were put at risk by a flawed trust.

Everyone's different.

We will leave our kids some real value in property but our intent is to not leave them much in money or financial assets.

The challenge is when the economy and markets are so unstable when you retire, and in not knowing how long you will live.

Our plan to not leave them much will be alterred if we both are gone before our planning timeline (early to mid 90s) comes.

We needed an estate because of how we wanted assets distributed to grandkids if we both are gone younger than our planning time. Want to leave them something but not have access to it until they are older.

 

[Bob-WY]

Lawyer. All states are different. Protect yourself and what you want done. Prevent those that will come out of the woodwork. Talk about medical decisions, power of attorney etc.

A straight forward is a meeting with the lawyer, ask and answer questions, they build it, you review it and repeat til happy

 

[MtsPSU]

Get a Will and set up a Trust with beneficiaries. There's nothing quite like death to bring money grubbing relatives to the surface.

Well said.

I have professional experience with a long lost nephew challenging the Will since he was included in an earlier iteration, but was later removed and not mentioned in the final Will. That said, if making decisions with siblings, children, or close relatives be very specific on what you want them to get or not get from your estate. For example, by not including them could later be argued there was an oversite compared to stating specifically their name and declaring they get $1 or nothing at all.

Good estate planning lawyers can make sure your wishes for transferring assets is followed when your Will matures.

Mark