Simple Estate Planning Steps

LEGALLY SPEAKING Simple Estate Planning Steps

BY BRUCE IDEN, ESQUIRE

Are there any estate planning steps I can take now to make things easier for my family should something happen to me? Absolutely. One of the simplest and most important things that you can do yourself is to verify that your assets and beneficiaries are properly titled. Let’s consider the following all too common scenarios: Sadly after a long illness, Mama Maggie loses her daughter, Melissa, a 45- year old divorced woman, with no children. Maggie later learns of the existence of a life insurance policy on Melissa’s life, issued years ago by a former employer. When she contacts the insurance company she is told the policy shows no named beneficiary, so therefore funds cannot be released without a judge’s order from the probate court. Have you collected life insurance policies and 401(k)s over the years? Make sure they all have beneficiaries designated.

Nadine Rogers’ husband passes away. All of the couple’s savings and checking accounts were owned jointly. While sorting through papers, Nadine finds a statement from an old savings account in only her husband’s name. She is surprised when notified by the bank that even as a surviving spouse Nadine has no access to the money because she is not named as an owner. As with Mama Maggie, money will only be released with a judge’s order from the probate court. Her options are to hire an attorney to start a probate proceeding, or allow the money to eventually be claimed by the state. All cash accounts should either have an additional owner, or be designated P.O.D. (payable on death) to a named beneficiary.

As a married couple, Lucy and Joe own their home jointly so that when one passes his or her share is automatically distributed to the remaining spouse. Tragically, Lucy and Joe are killed in a car accident while on vacation. Without an order from the probate court, their surviving adult children cannot sell their parents’ property. A probate administration must be opened and no sale can be finalized until they receive permission from the court. This can be avoided by creating a specialized deed. This is not a do it yourself project. An estate planning attorney can discuss and advise as to the best approach for your situation so your property passes to your heirs at your death, without the need for probate administration.

Finally, in these days of uncertainty it is also important that every adult execute Advance Directives, which includes a HIPAA Release, a Living Will and a Healthcare Power of Attorney. A HIPAA Release allows your medical information be shared with people you designate, a Living Will informs others of your final instructions should you reach the end of meaningful life but are being kept alive by mechanical means , and a Healthcare Power of Attorney allows you to appoint someone to decide your medical care should you lose the ability to decide for yourself.

Life can change in an instant. What are you waiting for?

n Bruce Iden earned his J.D. from George Washington University National Law Center and his L.L.M in taxation from the University of Miami School of Law. He has been practicing in the areas of estate planning, real estate and business law for over 30 years. For more information, or to schedule a consultation with Mr. Iden, contact Iden Law Offices at 954-885-0085.