Estate Planning Essentials: An Introduction to Securing Your Legacy (Webinar Recording)

Presenters: Adam Newman, CFA, CFP®, MT, RICP® and Debbie Makowski, Advanced Planning Attorney, Hargrove Firm LLP

Here is the webinar recording from July 25th, 2024. You can browse topics discussed and main takeaways using the sections and time stamps below:

Click the time-stamp in each section title, and you will jump right to that part of the video in a new screen!

• 2:22 - Understanding the Basics of Estate Planning
• 5:00 - Key Documents & Roles (Healthcare Documents)
• 7:36 - Key Documents & Roles (Financial Power of Attorney)
• 8:29 - Trust-Based vs Will-Based Planning
• 10:05 - Key Documents & Roles (Trusts)
• 13:00 - Key Documents & Roles (Last Will & Testament)
• 14:22 - Guardianship Designations
• 15:17 - Understanding Probate
• 16:24 - Working with Hargrove Firm

Understanding the Basics of Estate Planning (2:22)

• Estate planning involves deciding who will receive your assets and who will make healthcare and financial decisions if you’re unable to do so.

• It determines who gets what, when, and how, ensuring the process is cost-effective and efficient.

• Healthcare decisions, including end-of-life choices, are outlined and documented appropriately.

• Everyone should have an estate plan to avoid family disputes, preserve assets, provide for minors and individuals with special needs, minimize taxes, and reduce administrative costs.

• An estate plan helps maintain control and autonomy over your decisions for as long as possible.

• It aims to minimize taxes and maximize wealth transfer to loved ones while simplifying the process for them.

Key Documents & Roles (Healthcare Documents) (05:00)

• A living will specifies your healthcare preferences if you become incapacitated, guiding healthcare providers and loved ones on your wishes.

• A healthcare surrogate designation designates an individual or multiple agents to make healthcare decisions on your behalf if you are unable to do so.

• Different states may use different terms for these documents, but the Hargrove firm ensures all documents are customized appropriately for your state.

• HIPAA authorization grants your designated agents permission to access your healthcare records, allowing them to make informed decisions on your behalf.

Key Documents & Roles (Financial Power of Attorney)(7:36)

• A financial power of attorney grants someone the authority to act on your behalf for financial and legal matters if you become incapacitated or are unavailable.

• This document allows the designated agent to handle financial transactions, pay bills, and make legal decisions for you.

• It’s crucial to choose a trusted individual as your agent to ensure your financial and legal affairs are managed appropriately.

Trust-Based vs Will-Based Planning (8:29)

• Trust-based planning offers significant advantages, such as avoiding probate, which can save time and reduce delays in asset distribution.

• Trusts provide privacy and flexibility, allowing your wishes to be followed without the public disclosure required in probate court.

• Most clients act as the initial trustees of their trusts, maintaining control over their estate during their lifetime while ensuring a smooth transition to successor trustees.

Key Documents & Roles (Trusts) (10:05)

• A trust is a contractual agreement that allows a trustee to manage and distribute assets according to the grantor’s wishes.

• Trusts provide flexibility in managing assets and ensure efficient distribution to beneficiaries without court involvement.

• Trustees, often the grantors themselves, manage the trust during their lifetime, maintaining control over the assets.

• There are two main types of trusts: revocable trusts, which can be changed during the grantor’s lifetime, and irrevocable trusts, which are fixed.

• Properly funding the trust is essential, involving the retitling of assets to ensure they are included in the trust and avoid probate.

Key Documents & Roles - Last Will and Testament (13:00)

• A pour-over will works with a revocable living trust to ensure any assets not transferred to the trust are still distributed according to your wishes.

• The pour-over will acts as a safety net, capturing any assets left out of the trust and directing them into the trust for proper distribution.

• Guardianship designations for minor children or special needs individuals are included in the pour-over will, specifying who will care for them if both parents are deceased.

Guardianship Designations (14:22)

• Guardianship designations in a pour-over will specify who will care for minor children or special needs individuals if both parents pass away.

• The designated guardian is responsible for the personal and financial well-being of the child or dependent.

• These designations ensure that children are cared for by someone trusted and chosen by the parents.

Understanding Probate (15:17)

• Probate is a legal process to administer a deceased person’s estate, verifying the will, inventorying property, paying debts and taxes, and distributing the remaining property.

• Probate laws and processes are state-specific, with varying terms, conditions, and timelines.

• One major downside of probate is the statutory restrictions, which can cause unnecessary delays, making trust-based planning a preferable option to avoid these delays.

Working with Hargrove Firm (16:24)

• The Hargrove Firm works closely with Burney Wealth Management to provide a streamlined estate planning process that combines digital efficiency with personal guidance from attorneys.
• The partnership addresses common hurdles in estate planning, such as the emotional difficulty of discussing estate matters and the logistical challenges of traditional estate planning methods.
• NetLaw, the technology component of the Hargrove Firm, powers the intake process, allowing clients to enter their information online, which is then reviewed before a consultation with an attorney.
• The Hargrove Firm ensures that estate plans are fully customized to each client’s needs, including proper funding of trusts and updating beneficiary designations, to ensure comprehensive and effective estate planning.

Disclosures/Disclaimers: The content of this webinar is for general informational purposes only and does not constitute legal advice. It is not intended to be relied upon as specific legal advice. For advice pertaining to your specific situation, please consult a qualified legal professional.