The birth of a child is a significant event in every parent’s life, particularly if they have utilized assisted reproductive technology (ART). Using ART necessitates comprehensive financial and estate plans that are uniquely tailored to the needs of your family.

As you continue your journey, we’d like to answer some of the most frequently asked questions about planning for your family.

When should I begin making plans for my child?

Now is a good time from a financial standpoint to begin planning for your child. As you probably already know, the ART process can be costly. Having a proper financial plan can help alleviate some of your concerns throughout the process. Consideration must be given to the cost of food, clothing, shelter, toys, and education when raising a child. Even if you are not expecting a child in the near future, saving money or preparing a budget to cover these costs can put you on the right financial path.

You can create an estate plan for a potential child now and modify it after the birth of a child. Developing an estate plan is not a one-time occurrence. It must adapt to your and your family’s changing circumstances.

What will become of my genetic material after my death?

You or your spouse or partner may store genetic material (e.g., sperm, eggs, embryos) for future use as part of assisted reproductive technology (ART). It is crucial that you review the forms you signed with your doctor or the facility to determine what will happen to genetic material in the event of your death or that of your spouse or partner. Typical options include destroying, donating, and transferring ownership to a named recipient. In many states, courts defer to the contents of the form. Before signing, it is crucial that you understand what it says and agree with the outcome. Additionally, you must know what to do if you change your mind.

What happens if a child is born after the death of a genetic parent? Can the child inherit from the parent who has died?

Do I really need the assistance of an attorney for estate planning?

While the do-it-yourself options may appear to be less expensive and more convenient than working with an attorney, only an experienced estate planning attorney can ensure that your estate plan is tailored to your specific circumstances. Customized language, as opposed to standard definitions for terms, can reduce confusion regarding who and how you want to receive your money and property.

Although the terms parent and child have commonly understood standard definitions, they may have different meanings in your family. For instance, does the term parent refer to a parent’s biological parent, gestational parent, adopted parent, or spouse? Assuming that a parent is the source of genetic material may cause you to overlook an important individual.

Similarly, the term child may have different meanings depending on the context. Does the term child include biological, adopted, and stepchildren? You may consider someone to be your child, but you must ensure that the individual is properly identified as your child in all legal documents.

Lastly, as ART becomes more prevalent, the definition of the term “descendants” may be affected, not only in your plan but also for other members of your family. Do you want your child’s child conceived through assisted reproductive technology to be considered your grandchild, even if there is no genetic link?

We recognize that your path to parenthood may be arduous and filled with ups and downs. We respect your privacy and strive to create a plan that expresses your wishes in a way that is legally enforceable, protects you and your family, and prevents family conflict. Call us to schedule an appointment where we can tailor a plan to your specific requirements.

In the context of estate planning, the term “probate” frequently carries a negative connotation. In fact, financial planners advise many individuals, particularly those with valuable accounts and property, to try to avoid probate whenever possible.

However, the purpose of the probate system is ultimately to protect the deceased’s accounts and property, as well as their family, and in some instances it may even be advantageous. Consider briefly the advantages and disadvantages of probate.

The Pros

In certain instances, particularly when there is no will, the system ensures that all accounts and property are distributed in accordance with state law. Here are some potential benefits of involving the probate court in the administration of a deceased person’s estate:

1. It provides a reliable procedure for the distribution of the deceased person’s property in the absence of a will.

2. If a will exists, it validates and enforces the wishes of the deceased.

3. It ensures that taxes and valid debts are paid so that the beneficiaries are not left with an uncertain feeling regarding the decedent’s affairs.

4. If the deceased had debts or unpaid bills, probate provides a method for limiting the amount of time creditors have to file claims, which may result in debt discharge, reduction, or other advantageous settlement.

5. Probate can be advantageous for the distribution of smaller estates where estate planning would have been too expensive.

6. It allows for third-party oversight by a respected authority figure (judge or clerk), potentially reducing family conflicts and aiding in ensuring everyone’s best behavior.

The Cons

Although probate is intended to facilitate the transfer of accounts and property after a person’s death in a fair manner, consider bypassing the process for the following reasons:

1. Generally speaking, probate is a matter of public record, meaning that certain documents, including personal family and financial information, become accessible to the public.

2. There may be substantial costs, such as court fees, attorney’s fees, and executor fees, which are deducted from the value of the assets you intended to leave to your loved ones.

3. Probate can be time-consuming, delaying the inheritance of your beneficiaries for months or even years.

4. The probate process can be difficult and stressful for the executor and beneficiaries.

The Bottom Line

Probate is a default mechanism that ultimately enforces fair distribution of even small amounts of money and property, but it can be costly and time-consuming. For this reason, many individuals prefer to use strategies to avoid probate when they pass away.

A skilled estate planning attorney can devise a plan to help you avoid probate and make life easier for your heirs. Contact us today to schedule a consultation and receive more information about your options.

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To receive their inheritance after your passing, your beneficiaries may need to start a probate case with the Superior Court. This is likely if you own property (such as a house, car, bank account, investment account, or other asset) in your name alone, and have not designated a pay-on-death, or transfer-on-death beneficiary. Although a will is a fundamental form of planning, it does not prevent probate. Instead, a will merely informs the probate court of your preferences; your loved ones must still go through the probate process to distribute your asset.

Now that you understand why probate may be required, consider the following three reasons for avoiding probate whenever possible:

1. Everything is public record.

Almost every court proceeding, including probate, becomes a matter of public record. Therefore, in order to properly wind up your affairs after your death (i.e., pay your bills, submit any remaining tax returns, and distribute your money and property to your selected beneficiaries), a lot of personal and private information will become public through the probate court, including your family and financial information.

The courts have at least taken efforts to reduce the risk of identity theft, so this does not necessarily imply that account numbers and Social Security numbers will be made public.

However, the amount of your accounts and property, creditor claims, the identity of your beneficiaries, contact information for your loved ones, and even family disputes that affect the distribution of your money and property may all be made public.

The easiest method to protect your privacy is to keep your affairs out of probate, as most individuals want to keep this type of information private.

2. It can be costly.

Due to court charges, attorney’s fees, executor fees, and other expenses, the cost of probate can rapidly approach thousands of dollars, even for small estates. If a family member or beneficiary contests the estate, or creditor claims are filed in the probate case, these costs can quickly escalate into the tens of thousands of dollars or more. Your money and property should go to your loved ones, but if your estate goes through probate, a considerable percentage may be allocated to executor fees, legal fees, and court costs.

While creating a will or estate plan that avoids probate does cost money, Benjamin Franklin said it best: “An ounce of prevention is worth a pound of cure.”

Costs incurred now to implement a plan are more easily controlled than uncertain costs in the future, especially when you consider that your loved ones may be grieving while making important estate and financial decisions. You can decrease the possibility of costly disagreement and reduce or eliminate some costs via careful planning.

3. It will take some time.

Although the length of time required to probate an estate can vary significantly by county and based on the value, quantity, and complexity of the deceased person’s assets and property, probate is typically a lengthy procedure. Even probate cases that seem simple can a year or more. During this time, your beneficiaries will not have easy access to the money and property you left them. This delay can be especially challenging for loved ones enduring financial, emotional or medical challenges, as they could benefit from a quicker, more straightforward process, such as the administration of a living trust. Bypassing probate can expedite the distribution of money and property, allowing the beneficiaries to receive their inheritance sooner than they would under probate.

If you own real estate in many states, you generally will have a probate case in each state where your real estate is located. These additional probate cases may cost your family members more time and money. The good news is that with effective trust-centered estate planning, you likely will avoid probate in every state, streamlining the transfer of your financial legacy.

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To learn more, please contact us to schedule a consultation. We will gladly discuss formulating an estate plan strategy to help you avoid probate.

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Here are five things to consider before embarking on your next adventure to ensure your safety and the safety of your loved ones:

1. Have you established a basic estate plan, and, if so, have you had it reviewed recently?

An estate plan is a set of documents that outline your wishes for your care and the care of any of your dependents, as well as the management of your finances and assets. You provide these instructions to trusted individuals who can make decisions on your behalf.

Last will and testament

One aspect of an estate plan may be a last will and testament, also known as a will. This document allows you to appoint someone to handle the distribution of your assets and property after your death. You can also name a guardian for your minor children, if you have any. However, a will only goes into effect upon your death, and the probate process (a legal procedure overseen by the court to validate the will and to make sure it is followed correctly) may be necessary to carry out its provisions. This process can be costly, time-consuming, and public, which is why it’s important to consider all of your options when creating an estate plan.

Revocable living trust

This is document that you create that sets out how your assets and property will be managed both during your lifetime and when you pass away. For the trust to work, you have to transfer certain of your assets and property to the trust. For your trust to own your accounts and property, they will either be retitled in the name of your trust (instead of in your sole name) or the trust will be named as the beneficiary that will receive money and property at your death. The trust document provides instructions to the trustee, who is the person you have chosen to manage the trust. Initially, you will serve as the trustee of your own trust, which means you maintain control over the trust’s assets. You can also continue to benefit from these assets as a trust beneficiary. If you become incapacitated or pass away, the successor trustee you have designated can take over management of the trust without court intervention. Because the trust owns your property or is named as the beneficiary of your assets, there is nothing that needs to go through probate upon your death. The trust becomes effective as soon as you sign it.

Review your documents

It’s important to regularly review your estate planning documents to ensure that they still accurately reflect your wishes. If you have experienced major life changes, you may need to reconsider your estate plan. If you have a revocable living trust as part of your estate plan, it is crucial to ensure that all accounts and property intended to be owned by the trust have been properly transferred, and that any accounts or property naming the trust as a beneficiary have the appropriate documentation in place.

2. Can someone manage your financial affairs when you cannot?

If you are traveling abroad, it may be more challenging to manage your personal financial affairs (such as paying rent or following up on an insurance claim). However, just because you are unable to do these things does not mean that they cannot be handled by someone else.

To appoint a trusted individual to handle your financial affairs while you are abroad, you can create a durable financial power of attorney. This document allows you to specify when the person you have chosen should have the authority to act on your behalf. You can choose to grant this power immediately, or only in the event that you are unable to make decisions for yourself. If you are traveling internationally, you may want to consider granting the power of attorney immediately so that your chosen decision maker can act quickly if needed. You can also customize the level of authority granted to your decision maker, whether it be limited to a specific transaction or broad enough to cover most financial matters. This is a personal decision based on your specific needs and circumstances.

3. How will you manage your health while you are away?

To ensure that you have someone to make medical decisions on your behalf if necessary, it’s important to appoint a trusted individual through a medical power of attorney, sometimes called an advance health care directive. This is often included in a comprehensive estate plan, along with a living will or advance directive outlining your end-of-life wishes, and a HIPAA authorization allowing named individuals to access your private healthcare information. Keep in mind that these documents may not be recognized in other countries, so if you are traveling internationally for an extended period of time, you may need to consider naming a medical decision maker according to the laws of the country you are visiting.

Additionally, it’s important to determine whether your health insurance will be accepted overseas, as it may only be valid in the United States. If necessary, you may need to secure a short-term health insurance policy to cover you while traveling.

4. Speaking of insurance, do you have adequate insurance?

There are two other types of insurance that can be useful while traveling: travel insurance and life insurance.

Travel insurance can help you navigate unexpected complications that may arise during an international trip, and it may save you money in an emergency, depending on the cost of your trip and the items you are taking.

Life insurance is also important to have and review. It’s essential to correctly designate beneficiaries and to review the policy terms to ensure that your coverage will not be voided by any activities you plan to engage in while on vacation.

Some insurance companies may not pay out if the insured has participated in extreme activities such as bungee jumping, skydiving, or scuba diving, so it’s important to be aware of any exclusions in your policy.

5. What arrangements have you made for your minor children?

If you have minor children, it’s important to make arrangements for their care while you are traveling. If your children will be traveling with you, they will need a passport, which needs to be renewed more frequently for children than for adults.

Some countries may require proof of your relationship as a parent or legal guardian to ensure the safety of the children. If your children will be staying with someone else while you are away, it’s important to have the appropriate documentation in place to authorize the chosen adult to care for them.

It’s also important to have a last will and testament that names a guardian for your children in the event that you and their other legal parent are unable to care for them. While such a document does not avoid court involvement, they can help ensure that your wishes for your children’s care are honored.

We can help!

We understand that planning for international travel involves a lot of considerations. Let us help you ensure that you are properly protecting yourself and your loved ones during your trip. Contact us to schedule an appointment before you leave.

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As you plan your next vacation, you may decide to handle the arrangements on your own. While this may be fine for deciding what to see and do, how much to spend, and when to travel, it’s important to consider seeking the assistance of a team of professionals to ensure the safety and protection of yourself and your loved ones during and after your trip. Here are some people you should consider meeting with before you depart on your adventure:

As you plan your next vacation, you may decide to handle the arrangements on your own. While this may be fine for deciding what to see and do, how much to spend, and when to travel, it’s important to consider seeking the assistance of a team of professionals to ensure the safety and protection of yourself and your loved ones during and after your trip. Here are some people you should consider meeting with before you depart on your adventure:

As you plan your next vacation, you may decide to handle the arrangements on your own. While this may be fine for deciding what to see and do, how much to spend, and when to travel, it’s important to consider seeking the assistance of a team of professionals to ensure the safety and protection of yourself and your loved ones during and after your trip. Here are some people you should consider meeting with before you depart on your adventure:

1. Financial Advisor

A financial advisor can help you ensure that your finances are organized and easily accessible while traveling. In case of an emergency, it’s important to have access to your funds and to be able to reach your financial advisor if necessary. Your advisor can also assist you if you want to make a large purchase while on vacation but do not have enough cash on hand.

2. Insurance Agent

An insurance agent can help you review or obtain necessary insurance policies, including life insurance. If you already have life insurance, it’s important to regularly review your policies and beneficiary designations. Vacation planning is a good opportunity to do this.

It’s also important to check if your life insurance policy will cover you for high-risk activities such as skydiving, bungee jumping, or rock climbing. If your coverage could be voided by participating in these activities, you may need to reconsider your plans.

In addition to reviewing your life insurance, it’s a good idea to consider purchasing travel insurance to protect against unexpected costs that may arise during an international trip.

Lastly, you should verify that your health insurance plan covers you for medical care in foreign countries. If it does not, you may want to consider buying a temporary policy that is valid in the countries you will be visiting, depending on the length of your trip.

3. Tax Professional

A tax professional can help you understand any potential tax liability when traveling abroad. Different countries have their own tax laws that you will be subject to, and it’s important to be aware of these if you plan to make any large purchases.

For example, countries in the European Union may add a Value Added Tax on purchased items, but you may be able to get a refund of this tax by completing the necessary paperwork and providing receipts.

When returning to the United States, you may also be required to pay duties on any items you purchased while abroad. These rates can vary based on the purchase price, the location of the purchase, and the type of item. A tax professional can help you understand the potential costs and how to navigate the process.

4. Estate Planning Attorney

An estate planning attorney can help ensure that your wishes are properly documented. Estate planning is not just about preparing for death; it also is useful while you are alive. By working with an attorney to create a financial power of attorney, you can appoint a trusted decision maker in the United States to handle your financial affairs without the need for court involvement. This can be especially helpful if you need something done while you are on vacation, such as depositing a check or signing legal documents.

An attorney can also help you prepare the appropriate documentation to give the person you have chosen to care for your minor children the maximum authority to make decisions for them while you are away. This can allow the caregiver to take care of your child’s needs, such as going to the hospital or signing permission slips for field trips, and keep your child safe and healthy.

Going on a trip can be an exciting experience, but it’s important to make sure that you and your loved ones are properly protected. By forming a planning team, you can take steps to ensure that your trip goes smoothly. We are here to help you and any members of your planning team to make sure that your next adventure is a success.

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Many people mistakenly believe that naming their spouse, child, or loved one as the beneficiary of their life insurance policy is enough to secure the benefits for them in the event of their death.

While life insurance is indeed a crucial tool for financial and estate planning, it’s important to understand that simply designating a beneficiary may not provide the desired level of protection. Without certain safeguards, there is no assurance that the intended beneficiary will ultimately receive and retain the insurance benefits.

When it comes to life insurance, there are factors to consider beyond just choosing a beneficiary. Without proper precautions in place, the benefits could be at risk of being lost or mismanaged. That’s why it’s crucial to explore additional protective measures to ensure your beneficiary receives the full benefit from your insurance policy and that it is used according to your wishes.

To fully safeguard your life insurance benefits, it’s essential to understand the potential pitfalls and take steps to protect your policy’s proceeds. By implementing appropriate strategies and seeking professional guidance, you can secure the intended outcome, providing your loved ones with the financial support you intend even after you’re gone.

Name a Trust as the Beneficiary of Your Life Insurance

A popular way to ensure your loved ones receive money and property as part of your estate plan is by structuring the ownership of assets through a trust. By titling assets in the name of a trust or making the trust the beneficiary of accounts or properties, you can designate your spouse or child as the ultimate recipients. This approach can also be applied to life insurance policy proceeds, providing an additional layer of protection for your beneficiaries.

There are two common methods to achieve this: naming a revocable living trust as the beneficiary or establishing an irrevocable life insurance trust. These options allow you to have control over how your assets are distributed and provide valuable benefits for your loved ones.

Revocable Living Trust

If you have accounts and property that fall below the estate tax exemption or if you’ve already established a trust, considering a revocable living trust as the beneficiary of your life insurance policy can be a smart choice. By doing this, the death benefit from your policy will be added to the assets already held in the trust, and it will be distributed according to the instructions outlined in the trust agreement. The great thing about this option is that it seamlessly aligns your life insurance proceeds with the rest of your estate plan, ensuring everything works together smoothly.

Irrevocable Life Insurance Trust

By establishing an irrevocable life insurance trust, you add an extra layer of protection for your life insurance policy. This trust has the ability to both own the policy and be named as the beneficiary. You have two options to create this trust: either transfer an existing policy into it or have the trust purchase a new policy. To cover the insurance premiums, you can utilize your annual gift tax exclusion by making cash gifts to the trust.

When you pass away, the trust becomes the recipient of the death benefit from the policy. Then, the trustee carries out the instructions specified in the trust document and distributes the funds accordingly. This approach offers an additional advantage of reducing the value of the life insurance policy and the death benefit from your taxable estate. It’s a smart strategy to safeguard your life insurance proceeds and potentially minimize estate taxes.

What’s next?

While the estate tax exemption is currently set at a high level, it’s important to remember that it could change in the future. Given this uncertainty, it’s wise to take proactive measures to safeguard the financial well-being of your loved ones.

If you have already purchased life insurance, it’s worth considering the additional step of structuring your life insurance estate plan. This can provide added security and peace of mind for the future of your family.

To explore the best options available and create a plan tailored to your needs, reach out to us today. Our team is ready to assist you and ensure that your loved ones’ financial futures are protected.