Things I Wish I Knew About Estate Planning Before My Grandparents Passed Away

 Sometimes you don’t know what to do until you’re in the situation. Some people may feel uncomfortable talking about or planning for death.  They may assume that only the wealthy need an estate plan.  Here are a few things I wish I knew before my grandparents passed away.

Designated beneficiaries with authority on bank accounts is very important.  Most people have bank accounts and might not consider adding a pay on death beneficiary and a contingent pay on death beneficiary.  Whenever I ask clients do they have a pay on death beneficiary on their bank accounts a lot of clients are not sure.  I always encourage clients to ensure their bank accounts have designated beneficiaries.  Designated beneficiaries on bank accounts are an easy way to avoid probating that bank account.  If your bank account does not have a beneficiary listed, that account will be required to go through probate court to transfer the funds out of the deceased individual’s name.

Next, make sure to check the deed on your home.  I find with my older clients sometimes multiple people might still be listed on a deed.  People assume that when a person dies the home goes to the other person(s) listed on the deed.  However, this may not be the case.  It depends on how the house is deeded.   If the deed is titled with rights of survivorship, then yes, the property passes automatically to the other person listed on the deed.  However, if the property is deeded as joint tenants, the deceased person’s half of the property goes to their heirs and the other half of the property is still owned by the other owner.  Often this may not be your intention for your home after your death.

Also, it is so important to either have a will or trust in place.  If you want to avoid probate court, revocable trusts are the way to go.  Will based plans are good; however, they do not avoid probate court.  Trusts on the other hand are private, and trusts do not have to be filed with the probate court.  If you believe your family may contest your will then trust-based plans are highly recommended.

Finally, make sure you have a power of attorney, health care directive, and health insurance portability and accountability act (HIPAA).  These documents can assist in planning for incapacity. Without a power of attorney, you may have to petition the court for conservatorship or guardianship unless you are listed on the bank account as an owner.  Powers of attorney are only good while you’re incapacitated.  Health care directives and HIPAAs are very important in case of hospitalization.

Make sure you have these uncomfortable conversations with your family because having the right documents in place can really ease your burden during difficult times.

Tyler Comer

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