Non-Probate Assets

I have previously posted explaining (see this post) why it is necessary for everyone to have a will, and explained some of the topics that are frequently covered in in a will.  I also explained that it's important to have an attorney draft that will for you because the attorney should be familiar with state law & can customize your estate planning documents to your needs.

In that post, I didn't cover the topic of non-probate assets.  Non-probate assets are things like 401Ks, IRAs, annuities, and insurance policies.  These are called non-probate assets because they pass outside of probate court.  These assets pass directly to the person listed as beneficiary, or directly to a spouse without a beneficiary designation.

Because of non-probate assets, it is important to review beneficiary designations to determine whether those designations are still appropriate.  In addition, it is important to let your estate planning attorney know about these kinds of assets so that the attorney can make recommendations to you, in order to ensure that your estate passes as you would like it to.  This post explains in more detail why it is so important.

Plan for Your Online Property As Well

Hello friends.  After a long (too long) hiatus from blogging, I'm back at it.  My apologies if you have been checking in only to find old posts.  I'll do my best to keep up with new posts.

When we think about planning for the eventuality of our death, we think about what will happen to children, and what will happen to businesses, and what will happen to our physical property.  Often overlooked, probably because it is a relatively recent phenomena, is our online property.  Think for a moment--how many e-mail accounts do you have?  Do you have a Facebook or MySpace account?  What about Twitter or LinkedIn?  Do you have an Amazon or eBay accounts?  Do you have a blog?  And what about the countless number of other services for which you have created an account or online profile?

As this article from the New York Times makes clear, we need to put a plan in writing so that our loved ones know about our online activities and how we would like these online properties and selves to be handled upon our death.  If you want your online profiles to be taken down or maintained, you need to make these wishes known to your loved ones in a will or other directive to them.  In addition, you need to ensure that they have the necessary passwords in order to access those accounts.  Some have handled the issue of providing passwords by listing them in a document or letter which is to be opened upon death.  However, with the common refrain that we should change our passwords often because of security risks associated with using the same password for too long, and the likely chance that we may not remember to print a new letter, this may not be the best approach.  I recommend using a password manager such as KeePass in order to maintain different strong secure passwords for various online accounts, but only having to remember one single password.  With a password manager such as KeePass, you would only need to provide one password to your loved ones in order for them to have access to your various online accounts after your death.

So remember, just as it is important to have a will to dispose of physical property, it is just as important to make a plan for your online property as well.

You (Yes You!) Need A Will, Too.

Recently, my boyfriend became an uncle. His brother and sister-in-law became the proud parents of a beautiful baby boy. That combined with the large number of my friends who have recently gotten married, purchased houses, and begun having children made me start thinking about estate planning. Really, I kid you not, it did.

Many people think that they do not need a will. However, I believe that many of these people have not really thought through the consequences of dying intestate. Ask yourself, do you know how the laws of intestacy will dispose of your property? Have you thought about what dying without a will means for your loved ones in administering your estate? Have you thought about what would happen to your children if you die without a plan for them?

Estate planning is more than just a will telling everyone who gets your "stuff" when you die. It is a plan for who makes decisions about that "stuff." It is a plan for who takes care of your children and makes decisions regarding their welfare when you die. Estate planning can include plans for how you would like your remains handled after you pass away through the inclusion of burial & funeral plans. Estate planning can also include reassurance to your loved ones about your faith in a higher being.

For many though, estate planning also includes decisions about end of life issues through documents such as living wills and powers of attorney. These types of documents allow you to make decisions about medical treatments in the event that you are in a terminal condition and are unable to participate in making those decisions. They also allow you to decide now who is able to make financial and business decisions for you in the event that you are unable to do so.

When you are ready to begin estate planning, you should consult with an attorney. Estate planning attorneys are able to assist you in meeting your goals for end of life care as well as how you would like matters handled after you die. I urge you not to rely on a computer generated will, living will, or power of attorney or to simply "do it yourself." See this and this for problems that can occur from DIY and computer-generated wills. Only through consultation with a competent attorney will you end up with documents which meet your goals and which are in accordance with state law.

So, what are you waiting for? Call your attorney and get your estate plans in order!