By: Brandon C. Walecka, Esq.

Walecka Law, P.C.

774-203-9003

Brandon@WaleckaLaw.com

The holiday season is a busy time for many of us. But we are hoping that it’s a good kind of busy – the type of busy that allows you to spend more time with your family and less time at work. We know that conversations about the future can at times be uncomfortable, and you may struggle to find the right time to have “the talk”. This is why we recommend to our clients to talk with their families this holiday season. These moments with our families this winter while we are recounting the year, enjoying a meal, or exchanging gifts, will deepen our bonds, rekindle the closeness that maybe we had lost touch with during our busy lives, and allow us to speak openly and honestly. There is no better way to show our families that we care about them than by ensuring that the future is planned for.

Many people use the holidays as an occasion to plan a large gift to a family member. If you are someone who has received or is expecting to receive such a gift this season, consider how this gift will affect the recipient. If you are the child of an aging parent, this may be a good time for you to talk with them about their plans. Sometimes, children of seniors may not even realize that their parents have failed to plan. We cannot emphasize the importance of getting your affairs in order before it is too late. We also encourage a plan to be reviewed every three to five year’s to ensure that the plan will work when it needs to.

This holiday season, we urge you to open up a dialogue with your families. Talk with them about their plans for the future, and your role in those plans. Think about who you would like to leave your assets to when you pass on and any new family members that you may want to add to your estate plan. We know how easy it is to push off having these conversations with your families, but we have so often seen the difficulty our clients face when they have put it off for too long. Give us a call and we will begin crafting your personalized plan today.

The information contained in this article is not intended to make you an expert on estate planning nor is this article intended to replace the need for the advice of a professional. Rather, this article is simply intended to provide a basic understanding of why estate planning is important for everybody and a basic understanding of some of the more common estate planning tools. This article does not constitute legal advice.

By: Brandon C. Walecka, Esq.

Walecka Law, P.C.

774-203-9003

Brandon@WaleckaLaw.com

Each year, inflation impacts the amounts exempt from federal estate and gift taxes. Exemption amounts for 2023 are out now.

Read more here.

By: Brandon C. Walecka, Esq.

Walecka Law, P.C.

774-203-9003

Brandon@WaleckaLaw.com

Have you checked your beneficiary designations for your retirement accounts or life insurance policies recently?  If not, you may find that your designated beneficiary is not who or what you think it should be, especially if you have had a major life event, such as a divorce, remarriage, or had children or grandchildren since your retirement plan account was established.  Have you changed financial institutions?  Rolled over a retirement plan?  While many of us believe that updating and reviewing our estate planning documents is important, others tend to neglect retirement account and life insurance beneficiary designations.  Typically, your retirement accounts and life insurance, if a beneficiary(ies) is properly named, are not part of your probate estate and generally are not governed by the provisions of your will, so it is important to keep these assets up to date.  This makes properly naming a beneficiary(ies) incredibly important. 

Outdated Beneficiary Designations

I have met with several clients where there has been a divorce, remarriage, or death, but the client has neglected to update his or her beneficiary designation accordingly.  This can result in frustration and shock of loved ones upon the client’s passing. 

What happens when a beneficiary predeceases the retirement plan owner or the insured? 

When a beneficiary predeceases the retirement plan owner or insured on a life insurance policy, it is important that the beneficiary designation form be updated.  How should that deceased beneficiary’s portion be designated?  Do you want it to pass to the beneficiary’s children or to the other named beneficiaries?  If you do not update your beneficiary designation form, it is possible that the asset will need to pass through probate, causing delay and expense to your family.  To avoid unintended outcomes, it is always best to ensure these forms are current. 

Should you designate a trust as a beneficiary of a retirement plan or life insurance policy? 

I have many clients who have chosen to create on-going trusts for their children or grandchildren.  Perhaps the child or grandchild has a disability, or they fear the child or grandchild could lose their inheritance to creditors, divorce, bankruptcy, lawsuits or a failed business. 

This can be a useful strategy, as designating the right type of trust as your beneficiary could allow you to provide financial support for your surviving spouse while ensuring that your children and grandchildren are provided for.  Choosing the wrong type of trust or naming the trust incorrectly on your beneficiary designation form could result in disastrous tax consequences.  Be sure to seek competent professional advice before you name your trust as a beneficiary. 

Are you unsure what your beneficiary designation forms say?  Do not delay, reach out to each financial institution as soon as possible and ensure that your forms complement your estate plan.

Do you have a suggestion for a future article topic for Attorney Walecka? Reach out to him directly with a question or topic you think would be helpful to readers.

The information contained in this article is not intended to make you an expert on estate planning nor is this article intended to replace the need for the advice of a professional. Rather, this article is simply intended to provide a basic understanding of why estate planning is important for everybody and a basic understanding of some of the more common estate planning tools. This article does not constitute legal advice.

You might wonder when the appropriate time to open a bank account for your kids is. You may also wonder what type of account you should open for your child. Read this article to find out.

It’s so important to include one of your biggest assets, your home, in your estate plan so that you can ensure it is left to the people you want it to be left to. Read here to learn what a living trust is and why it is an essential tool for planning and distributing your assets to loved ones.

To learn more about trusts, read my blog here.

Depending on how you plan, your will could contain information that may be surprising to your loved ones. There are situations in which, if you neglect to update your beneficiaries, your ex spouse could inherit your money. Read more here.

When creating our wills, it is easy to overlook the amount of assets and information we have on the web. Have you ever thought about what will happen to your social media accounts, frequent flier miles, subscriptions, and bank accounts? Click here to read more.

Thinking of leaving your heirs an inheritance? This will give them a leg up, but learn how to help them out even more here.