Author: Suzanne Candela

Ensure That Your Loved Ones Call the Right Doctor

Posted on

Now that we are in March, we are well past the point at which most of us have abandoned our New Year’s resolutions. As in previous years, improving physical health ranked among the top goals that Americans set for themselves in 2025.1 But while goals like losing weight and building strength remain popular, there is a growing emphasis on overall well-being, including mental health and preventative care. 

This greater focus on health and wellness, however, stands in stark contrast to our lack of advance healthcare planning. While some Americans are diligently counting their steps, watching what they eat, and trying to live longer, healthier lives, many have failed to plan adequately for their future healthcare and what could happen in a medical emergency. One basic list can help address this shortcoming. 

The Healthcare Planning Gap

For a growing number of Americans, healthy living is no longer a luxury but a core value. Although we spend more on healthcare than other high-income countries, our health outcomes are among the worst by many metrics.2 An estimated 129 million Americans—roughly half the population—have at least one chronic disease (e.g., heart disease, cancer, diabetes, obesity, hypertension).3 

The COVID-19 pandemic accelerated the trend of Americans taking a more proactive role in their health.4 It also prompted more Americans to create estate plans as we contemplated our mortality.5 Unfortunately, the percentage of Americans with a will has since fallen back to prepandemic levels of around one-fourth.6 

The number of people who have created a healthcare power of attorney is slightly higher than those who have created a will, but not by much. According to a study by Penn Medicine, the systematic review of approximately 795,000 people in 150 studies found that only 29.3 percent had completed an advance directive, including just 33.4 percent who had designated a healthcare power of attorney.7 

The lead researcher in this study said that this lack of surrogate decision-makers and end-of-life care instructions means that the treatments most Americans would choose near the end of their lives are often different from the treatments they receive—a disconnect that can lead to “unnecessary and prolonged suffering.”8

How to Ensure That You Get the Care You Need—and Want

Without medical directives such as a healthcare power of attorney, doctors may be forced to make critical decisions without a clear understanding of your wishes. This can lead to delayed care, unwanted treatments, family disagreements over the best course of action, and even court intervention. 

Although you may have a healthcare power of attorney, this document alone might not be enough to guarantee that the treatments you receive are the ones you need—or would choose yourself. It may be necessary to have an advance directive or living will to help elaborate on your wishes.If your state does not recognize advanced directives or living wills as legally valid, you can still leave a letter of instruction to your healthcare power of attorney to share your thoughts and desires.

A healthcare power of attorney authorizes a trusted person (your healthcare agent) to make medical decisions on your behalf when a medical condition prevents you from making or communicating those decisions. This agent is charged with the task of making decisions that are in your best interest and would ideally be ones you would make for yourself. However, your agent needs additional context to make the appropriate choices for you. This information should be organized in a document that lists the following: 

  • Doctor’s name and specialty. In a stressful situation, seemingly obvious details like these can be easily forgotten. 
  • Doctor’s contact information. Include the office phone number, after-hours contact number, and the provider’s office address. 
  • Current health conditions. List any chronic illnesses or ongoing medical concerns the doctor is managing. 
  • Medication list. Provide a complete and up-to-date list of all medications, including dosages, frequencies, and the reasons they are prescribed. 
  • Healthcare power of attorney. Confirm that a healthcare power of attorney is on file with the doctor’s office. 
  • Insurance information. Knowing your insurance information and coverages can facilitate timely access to care and billing.

Each of the doctors you regularly see should be on the list—and they should have a copy of your healthcare power of attorney on file—to cover all potential health situations. 

During a life-threatening or emergency medical situation, it is generally recommended that your primary care provider be contacted because they know you and your medical history. However, there may also be situations where a specialist, such as a cardiologist or psychologist, needs to be consulted in short order. 

Other Healthcare Planning Documents and Considerations 

Not planning for medical contingencies, from sudden illnesses or injuries to gradual declines in cognitive abilities, could result in you losing the ability to voice your treatment preferences. Because the stakes are so high, your healthcare planning should cover all of the bases. 

  • Copies of your power of attorney, both physical and digital, should be kept in several other strategic locations, such as with your agent, trusted family and friends, and your attorney. A medical crisis may require you to visit the emergency room, where the document is not on file. 
  • A healthcare power of attorney is just a starting point for future healthcare planning. Other advance directives to consider are a living will, HIPPA authorization form, DNR order, and documents that address organ donation and funeral preferences. And do not forget about life insurance.
  • Periodically review your healthcare power of attorney and other advance directives to ensure that they still reflect your wishes. Send and store updated copies that reflect these document changes.

Maintaining your health and fitness can include one simple action that does not involve going to the gym, tracking steps, or following the latest diet trend. It only takes a visit to our office to complement your current wellness goals and get an instant mental health boost knowing that you and your loved ones are prepared for a medical emergency. 

  1. Jamie Ballard, What Are Americans’ New Year’s Resolutions for 2025?, YouGov (Dec. 13, 2024), https://today.yougov.com/society/articles/51144-what-are-americans-new-years-resolutions-for-2025.  ↩︎
  2. Munira Z. Gunja et al., U.S. Health Care from a Global Perspective, 2022: Accelerating Spending, Worsening Outcomes, The Commonwealth Fund (Jan. 31, 2023), https://www.commonwealthfund.org/publications/issue-briefs/2023/jan/us-health-care-global-perspective-2022.  ↩︎
  3. Gabriel A. Benavidez et al., Chronic Disease Prevalence in the US: Sociodemographic and Geographic Variations by Zip Code Tabulation Area, CDC (Feb. 29, 2024), https://www.cdc.gov/pcd/issues/2024/23_0267.htm.  ↩︎
  4. New CVS Health Study Finds People Are Taking Greater Control of Their Health As a Result of the Pandemic, CVSHealth (July 8, 2021), https://www.cvshealth.com/news/community/new-cvs-health-study-finds-people-are-taking-greater-control-of.html.  ↩︎
  5. Daniel de Visé, Facing Mortality, More Americans Wrote Wills During the Pandemic. Now, They’re Opting Out, USA Today (Apr. 3, 2024), https://www.usatoday.com/story/money/2024/04/03/fewer-americans-writing-a-will/73170465007.  ↩︎
  6. Victoria Lurie, 2025 Wills and Estate Planning Study, Caring (Feb. 18, 2025), https://www.caring.com/caregivers/estate-planning/wills-survey.  ↩︎
  7. Two Out of Three U.S. Adults Have Not Completed an Advance Directive, Penn Med. (July 5, 2017), https://www.pennmedicine.org/news/news-releases/2017/july/two-out-of-three-us-adults-have-not-completed-an-advance-directive.  ↩︎
  8. Id. ↩︎

Who Is Part of Your Professional Team?

Posted on

If you are like most Americans, you have at least one to-do list. You might also use lists when you are shopping, brainstorming, setting goals, and planning for events. 

To-do lists, grocery lists, bucket lists . . . the list goes on. However, there is one crucial list that often gets overlooked: the list of trusted professionals and decision-makers who can step in for you during a time of need. 

This list can be a centralized document of all the key players in your life who advise you on a regular basis or are legally designated to carry out your affairs when you become incapacitated (unable to manage your affairs), pass away, or experience an emergency. This simple yet powerful tool can help you, your professional team, and your loved ones be better prepared for future scenarios and more smoothly navigate challenging times. 

Your List of Professionals

Your list of professional advisors should contain contact information for the following important people in your life: 

  • Accountant
  • Financial advisor
  • Insurance agent
  • Spiritual advisor
  • Other professionals you routinely work with, such as legal and medical professionals

You will also want to include on this list the following key decision-makers in your estate plan documents: 

  • Trusted family and friends, in particular those whom you have designated as an agent under a power of attorney
  • Your estate executor/personal representative
  • Trustee(s) of your trust(s)
  • Guardian of your minor children

For each contact, provide the following information: 

  • Full name
  • Area of expertise or relationship to you (e.g., long-term care insurance agent, son, etc.)
  • Contact information (phone number, email address, mailing address)
  • Account or policy numbers for any assets under a professional’s management (where applicable)
  • Any authority that has been given to a person (agent under a power of attorney and, if so, the type(s) of power granted, such as financial, medical, general, or springing)

Why You Need an Advisor List

A list of professionals can prove invaluable for your loved ones if you pass away or a health crisis leaves you incapacitated. Without it, your loved ones may be left to navigate a maze of financial accounts, legal documents, and critical decisions. Having a centralized repository of who’s who in your personal and professional lives can save your family time, money, and stress when managing and winding down your affairs. Here is a look at who may need to be involved and what they might need to know:

  • The person you designate as an agent in your financial power of attorney may need to know whom to contact to oversee and manage your finances. 
  • Your executor or funeral representative should know your spiritual wishes when you pass away. Your executor also needs to understand all of the transactions you are a party to so that your estate can be settled. 
  • The trustee of a trust you created may want to work with your financial advisor or your attorney to manage the trust’s accounts and property in accordance with your wishes and legal requirements. 
  • Your healthcare proxy (the agent under your healthcare power of attorney) might need to reach out to your providers about treatment options and end-of-life decisions. 

In addition to incapacity and death, there are everyday situations when you may need ready access to this list. 

For example, if you must travel unexpectedly, get caught in a natural disaster, are hurt in an accident, lose your smartphone or internet access, or are forced to deal with a family crisis, you might need to reach out to people on the list who can act on your behalf or otherwise provide assistance. However, their contact information may be stored in different locations and hard to locate in a crisis. A single list containing this information is more accessible and efficient. 

Ensure that the list can be accessed by the right people at the right time. Keep it in a secure location, such as a home safe or encrypted digital file, where your advisors and trusted decision-makers can obtain a copy via instructions and permissions you provide to them ahead of time. You might also want to include a copy of the list with other important documents, such as your estate plan, so that designated individuals such as your executor or trustee can refer to it. Consider keeping a copy of the list on file at your advisors’ offices as backups and for safekeeping. 

Add Making a List of Professionals to Your To-Do List

You may assume that your loved ones know whom to contact at a critical moment or that this information is readily available. Compiling a contact list can also get lost in the shuffle of bigger tasks such as making a will, setting up a trust, paying your taxes, and following a financial plan. 

A list of professionals and key decision-makers is an underutilized planning tool that complements your existing documents and goals. This type of list is not just about names and numbers. It ensures that you, your loved ones, and your team can quickly and seamlessly collaborate for your best interests in difficult situations, both expected and unexpected. 

Life and relationships change. The next time you meet with us, check that your advisor list is accurate, up to date, and stored in a secure, accessible place—and check this important task off your to-do list. If you have not already created one, we can assist you.

Spring Cleaning: Lists You Need to Get Your Affairs in Order

Posted on

Do You Know What You Own?

Americans’ median household net worth (meaning half the households have more and half the households have less) is around $193,000, while the average net worth is just over $1 million, according to the Federal Reserve, the central bank of the United States.1 The median gives a more accurate picture because it shows what most people are experiencing without being skewed by a small number of ultrawealthy Americans.

The Federal Reserve tracks household net worth as an indicator of the overall health of the US economy and to gain a long-term perspective that influences future monetary decisions. You should track your net worth for similar reasons. This process involves creating an inventory of your assets (everything you own) and keeping it updated so that it can be measured, analyzed, and readjusted to keep your financial and estate planning goals on track. 

Majority of Americans Do Not Know Their Net Worth

Your financial plan and your estate plan are deeply intertwined. Trying to create an estate plan without a clear picture of your finances is like planning a journey without knowing your beginning point. 

Do you want to ensure that your loved ones are taken care of when you are gone? Do you want to leave a gift to a charity you care about? Do you want to ensure that the money you have saved and the assets you have acquired benefit the people and causes you care most about? If so, start planning now. Your plan begins with an assessment of your net worth. 

Many Americans are unsure about how to calculate their net worth—or even what it is. 

Around half of Americans told Credit Karma they do not know how to calculate their net worth.2 Sixty-seven percent also said they do not track their net worth, and nearly 20 percent said they do not know what actions to take to increase their net worth.3 More than one in five believe the term net worth applies only to the wealthy.4 

Net worth is calculated by subtracting your liabilities (what you owe) from your assets (what you own). 

  • Add up the value of all of your assets. Assets are the things you own that have value, such as cash, investments, real estate, and personal property. 
  • Add up the value of all of your liabilities. These are your debts, including credit card balances, loans, and mortgages. 
  • Subtract the total liabilities from the total assets. 

While this calculation is straightforward, you cannot figure out your net worth if you do not have an accurate picture of everything you own and the value of individual assets, which can be trickier to calculate. 

How an Asset Inventory Fits into an Estate Plan

To provide for your beneficiaries and fulfill other estate planning goals, such as charitable giving, you need to know how much your estate (everything you own) is worth—and therefore how much you have to give. 

Compiling an inventory not only helps you measure, grow, and distribute your wealth; it also helps those who must step in if you become incapacitated (unable to manage your affairs) or when you pass away, such as your estate executor, trustees, and agents under a power of attorney decision-makers. 

We can help you compile a comprehensive list of your assets and fill in any gaps. Before meeting with us, create a list that includes the following information:

  • Types of assets and detailed descriptions. Include as much information as possible about each asset, including the following details:
    • Bank accounts: The last four digits of the account number, the full legal name of the financial institution, and whether it is a checking, savings, money market, CD account, etc. Note if the account is held jointly with another person and specify their name and relationship. List the named beneficiary for the account and any contingent (backup) beneficiaries, if you have already completed these forms. 
    • Investments: Name of the brokerage firm or investment company, the last four digits of the account number for each investment, the types of investments (stocks, bonds, mutual funds, ETFs, retirement accounts, annuities, etc.), and supporting information such as the number of shares owned. Specify whether the account is held individually, jointly, or in a trust and list the primary and contingent beneficiaries for each account, if you have already completed these forms.
    • Real estate: Complete street address, the legal description of the property as recorded in the deed, lender name, loan number, mortgage details (principal balance, interest rate, and monthly payment), ownership type, and annual property taxes.
    • Personal property: Vehicles (make, model, VIN, and loan information), art, antiques, coins, stamps, jewelry, and other collectibles (including any appraisals, provenance information, or insurance information), and items such as musical instruments or electronics with significant value. 
    • Digital assets: Online banking and investment accounts, online payment platforms (e.g., PayPal), cryptocurrency wallets, domain names, intellectual property, and online businesses. Include documentation that proves ownership of these assets, such as crypto wallet addresses and keys. 
  • Acquisition date. Documenting when you acquired an asset can be helpful for tax purposes and tracking progress toward your financial and estate planning objectives. 
  • Present value. An inventory is a snapshot in time and needs ongoing review and updates. Use a professional appraiser for items such as antiques, art, jewelry, collectibles, memorabilia, and furniture. 
  • Storage. We can keep an up-to-date asset list for you, but you should have your own copies. Secure the list in a water- and fireproof home safe. Create backups that are digitally stored with other important documents on an encrypted cloud service or external hard drive kept in a separate, safe location. Use cloud services with features that allow you to share specific folders or files with trusted individuals or provide those individuals with login information for the cloud service or physical drive.

Your Wealth Journey Starts Here

You need to know the value of everything you own to grow your net worth. You also need to know how much wealth you have to ensure that your estate planning wishes are achievable. 

Depending on your age, you could have years or decades left to acquire more assets, pay down your debts, and grow your wealth so that you have enough financial resources to fulfill your wishes by the time your estate plan takes effect. 

You cannot get to where you want to go on your wealth journey if you do not understand where you are right now. The first step of this journey is creating a current, comprehensive asset list and meeting with an estate planning attorney. 

  1. Jeannine Mancini, If the Average American Household Is a Millionaire with a Net Worth of $1.06 Million, Why Do People Feel So Broke?, Yahoo!Finance (Oct. 28, 2024), https://finance.yahoo.com/news/average-american-household-millionaire-net-193035068.html.  ↩︎
  2. Americans Have a Net Worth Problem, and It’s Not Positive, Creditkarma (Apr. 17, 2023), https://www.creditkarma.com/about/commentary/americans-have-a-net-worth-problem-and-its-not-positive.  ↩︎
  3. Id. ↩︎
  4. Id. ↩︎

Ensure That Their Loved Ones Call the Right Doctor

Posted on

Americans are increasingly focused on their health and wellness, spending billions of dollars per year on products and services such as gym memberships, fitness trackers, healthy foods, supplements, and alternative medicine.1 Mindfulness and meditation practices are also becoming mainstream2 as Americans pay more attention to their mental health, while telehealth lets us connect with healthcare providers whenever and wherever we need them. 

This greater emphasis on our physical and mental well-being, however, stands in stark contrast to our lack of advance healthcare planning. While some Americans are diligently counting their steps, watching what they eat, and trying to live longer, healthier lives, many have failed to plan adequately for their future healthcare and what could happen in a medical emergency. One simple list can help address this shortcoming.

The Healthcare Planning Gap

The COVID-19 pandemic accelerated the trend of Americans taking a more proactive role in their health.3 It also prompted more Americans to create estate plans as we contemplated our mortality.4 However, the percentage of Americans with a will has since fallen back to prepandemic levels of around one-fourth.5 

The number of people who have created a healthcare power of attorney is slightly higher than those who have created a will, but not by much. According to a study by Penn Medicine, the systematic review of approximately 795,000 people in 150 studies found that only 29.3 percent had completed an advance directive, including just 33.4 percent who had designated a healthcare power of attorney.6 

The lead researcher in this study said that this lack of surrogate decision-makers and end-of-life care instructions means that the treatments most Americans would choose near the end of their lives are often different from the treatments they receive—a disconnect that can lead to “unnecessary and prolonged suffering.”7 

Ensure That Clients Get the Care They Need—and Want

Clients who do not plan for medical contingencies, from sudden illnesses or injuries to gradual declines in cognitive abilities, could be forfeiting the ability to express their treatment preferences. 

They might not realize that, absent medical directives such as a healthcare power of attorney, doctors may be forced to make critical decisions without a clear understanding of their wishes. This can lead to delayed care, unwanted treatments, family disagreements over the best course of action, and court intervention in some situations. 

Even if a client has a power of attorney for healthcare, this document alone may not be enough to ensure that the treatments they receive are the ones they need—or would choose themselves. It may be necessary to have an advance directive or living will to help elaborate on the client’s wishes.If your state does not recognize advance directives or living wills as legally valid, your client can still leave a letter of instruction to their healthcare power of attorney to share their thoughts and desires.

While your clients may have authorized a trusted person to make medical decisions on their behalf when health problems prevent them from making or communicating those decisions themselves, their healthcare proxy (their agent) needs additional context to make the appropriate choices. This should be organized in a document that lists the following information: 

  • Doctor’s name and specialty. In a stressful situation, seemingly obvious details like these can be easily forgotten. 
  • Doctor’s contact information. Include the office phone number, after-hours contact number (if available), and the provider’s office address. 
  • Current health conditions. List any chronic illnesses or ongoing medical concerns the doctor is managing. 
  • Medication list. Provide a complete and up-to-date list of all medications, including dosages, frequencies, and the reasons they are being taken. 
  • Healthcare power of attorney. Confirm that a healthcare power of attorney is on file with the doctor’s office. 
  • Insurance information: Knowing the details of their insurance information and coverage can facilitate timely access to care and billing.

In addition to the provider’s office, it is a good idea to store a healthcare power of attorney in several other strategic locations, such as the agent’s home, with trusted family and friends, and at an attorney’s office. The client might hold on to the original, but copies and digital files can ensure access in an emergency. 

You can also make yourself available to support the client and their agent in the event of a health crisis. For example, depending on your areas of expertise, you can help them navigate medical expenses, health insurance coverage, claims filing, Medicaid eligibility, financial planning, and related concerns.

By having a conversation with your client about advance directives and how they fit into their long-term planning goals, you can strengthen your position as an advocate for the client, their agent, and their family. 

For younger, healthier clients, you can mention the disconnect between the growing emphasis on wellness and the relatively low rates of advance care planning. They may be focused on optimizing their health today, but what about their future healthcare? Older clients, especially those with a chronic illness, can also be (gently) reminded that they are at higher risk for critical illness and death and need documents addressing these concerns. 

The wellness market offers significant business opportunities. Gaps in clients’ healthcare planning open up potential areas where advisors can collaborate for our mutual benefit and the benefit of our clients. Contact us to discuss advance directives and how we can work together on client plans that address all aspects of their well-being, now and tomorrow.

  1. Shaun Callaghan et al., Still Feeling Good: The US Wellness Market Continues to Boom, McKinsey & Co. (Sept. 19, 2022), https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/still-feeling-good-the-us-wellness-market-continues-to-boom.  ↩︎
  2. Nat’l Ctr. for Complementary & Integrative Health, Meditation and Mindfulness: Effectiveness and Safety, NIH (June 2022), https://www.nccih.nih.gov/health/meditation-and-mindfulness-effectiveness-and-safety.  ↩︎
  3. New CVS Health Study Finds People Are Taking Greater Control of Their Health As a Result of the Pandemic, CVSHealth (July 8, 2021), https://www.cvshealth.com/news/community/new-cvs-health-study-finds-people-are-taking-greater-control-of.html.  ↩︎
  4. Daniel de Visé, Facing Mortality, More Americans Wrote Wills During the Pandemic. Now, They’re Opting Out, USA Today (Apr. 3, 2024), https://www.usatoday.com/story/money/2024/04/03/fewer-americans-writing-a-will/73170465007.  ↩︎
  5. Victoria Lurie, 2025 Wills and Estate Planning Study, Caring (Feb. 18, 2025), https://www.caring.com/caregivers/estate-planning/wills-survey.  ↩︎
  6. Two Out of Three U.S. Adults Have Not Completed an Advance Directive, Penn Med. (July 5, 2017), https://www.pennmedicine.org/news/news-releases/2017/july/two-out-of-three-us-adults-have-not-completed-an-advance-directive.  ↩︎
  7. Id. ↩︎

The Advisor List: A Powerful Tool for Client Care and Business Growth

Posted on

Financial and legal planning often emphasize complex strategies that clients can use to manage their affairs. However, what about the simple, practical tools that can make a difference in our clients’ lives? 

One such tool is the advisor list, a centralized document of all the key players in a client’s life. Having this information available in a single place and in an easily shareable format can help ensure smooth and efficient management of the client’s affairs, whether it is a temporary situation or their ultimate passing. An advisor list can also be a valuable add-on product or service that strengthens client relationships and uncovers new business opportunities between advisors. 

Why Clients Need an Advisor List

Lists are a powerful organizational tool. Neuroscience research demonstrates that the simple act of writing things down can help manage anxiety, improve memory, and boost our ability to focus.1 List-making can also help clarify our thinking, prioritize what is important, spark creativity, and motivate us to take action.2 

When a client faces a health crisis or passes away, their loved ones are left to navigate a maze of financial accounts, legal documents, and critical decisions. This is where an advisor list is invaluable. Having a centralized repository of who’s who in the client’s personal and professional lives can save the family time and money when managing and winding down their affairs. 

In addition to the estate planning scenarios of incapacity and death, there are also situations in which a client may need ready access to an advisor list. For example, if a client must travel unexpectedly, gets caught in a natural disaster, faces a legal dispute, loses their smartphone or internet access, or is forced to deal with a family crisis, they might need to reach out to people on the list who can act on their behalf or otherwise provide assistance.

What to Include on an Advisor List

While clients may have important documents filed away with their advisors’ names on them, they might be scattered and difficult to locate in a time of need. A centralized list is more efficient and accessible. 

This list should include financial, legal, and medical professionals; close friends and trusted family members; agents under powers of attorney; and the client’s executor and trustees. 

For each contact, provide the following information: 

  • Full name
  • Area of expertise or relationship to client (e.g., long-term care insurance agent, son, etc.)
  • Contact Information (phone number, email address, mailing address)
  • Account or policy numbers for any assets that are under a professional’s management (where applicable)
  • Any authority that has been granted to the person (agent under a power of attorney and, if so, the type(s) of power granted, such as financial, medical, general, or springing) 

Some financial institutions may have forms that must be completed if the client wants to name someone to manage an asset on their behalf. Although a financial power of attorney drafted by an attorney would likely cover this specific asset, sometimes the financial institution’s form will be more easily accepted. Ideally, clients should have both prepared and ensure that they have executed any other necessary authorizing documents. A client filling out an institution’s form also needs to ensure that the person they are naming to act on their behalf matches the rest of their estate plan, if that is their wish. If you do not already have a financial power of attorney on file for your client or a power of attorney document specific to their institution, this may be an area to address with your client soon. 

Here are some other ways to engage with clients regarding advisor lists: 

  • Stress the importance of keeping the list updated. Life changes and advisors change. Check that the list is accurate and up to date during your regularly scheduled client meetings or schedule a time to review the list. 
  • Provide tips on storage and access. The list needs to make it into the right hands when it is needed most. Suggest a secure, centralized location for the advisor list, such as an encrypted digital file, and ways to share access with advisors and trusted decision-makers. Clients may also want to include a copy of the list with other important documents, such as their estate plan, so that designated individuals such as their executor or trustee can refer to it. 
  • Highlight the benefits for the client and their family. The advisor list can benefit the client now and their family later. Talk about how the list fits into their planning goals of increasing peace of mind, reducing stress during difficult times, and potentially avoiding costly mistakes or delays. Give examples that relate to concerns the client has expressed. 
  • Make a template or checklist. Offer a resource to help clients create their advisor list. This can be part of your new client onboarding process or a complimentary service for existing clients. 

Finding Opportunities in Planning Gaps

The advisor list is an underutilized aspect of financial and estate planning that can pay dividends for clients and advisors alike. 

Clients may assume that their loved ones know whom to contact or that this information is readily available. They also may not view making an advisor list as a necessary or urgent task compared with bigger actions such as drafting a will, making investments, or completing their taxes. As advisors, we may also fail to stress the practical importance of simple organizational tools such as an advisor list. 

This list is not just about names and numbers. It gives clients another way to prepare for the future and provides a resource for their loved ones to navigate challenging times.

List-making is a way to brainstorm and visualize the big picture. The process of creating the list may reveal gaps in the client’s financial or legal plan, leading to opportunities for you to offer additional services and foster collaboration with fellow professionals on the list.

To discuss cross-selling and value-add ideas involving client advisor lists, schedule a time to talk with us.

  1. Justin Bariso, Neuroscience Says 1 Simple Habit Will Help You Build Brainpower and Emotional Intelligence. Here’s How to Do It, Inc. (June 28, 2024), https://www.inc.com/justin-bariso/neuroscience-says-1-simple-habit-will-help-you-build-brainpower-emotional-intelligence-heres-how-to-do-it.html.  ↩︎
  2. Id. ↩︎

Help Your Clients Clean Up Their Affairs with These Lists

Posted on

Clients Need an Inventory of What They Own

Before you can help your clients get to where they want to go on their wealth journey, you need to understand where they are right now. Doing so involves inventorying their assets (everything they own) and keeping the information up to date so that it can be tracked, analyzed, and readjusted to remain on target. 

The more information you have about a client’s assets, the better you can understand their full financial picture and advise them about investments, debt management, taxes, and overall wealth strategy. A complete, up-to-date inventory of what a client owns also helps set realistic estate planning goals and can be useful to those who have to step in at the client’s death or incapacity (when the client is unable to manage their affairs). 

Many Americans Do Not Know Their Net Worth

Around half of Americans told Credit Karma that they do not know how to calculate their net worth.1 The problem is worse for women (60 percent) than it is for men (41 percent) and varies by age, but it exposes the same underlying issue: A client needs to know how to measure their net worth to grow their net worth.2

Sixty-seven percent of respondents also told Credit Karma that they do not track their net worth, and nearly 20 percent said that they do not know what actions to take to increase their net worth.3 More than one in five believes that the term net worth applies only to the wealthy.4 

Inventory and Estate Planning

A client who does not know how to calculate their net worth may not have a full grasp of their assets, a good handle on their finances, or a plan to address their current and future financial needs. 

It is probably not a coincidence that the percentage of Americans who do not track their net worth is about the same as the percentage who do not have an estate plan—roughly two-thirds.5 Nearly one in four Americans do not even know how much they have saved for retirement.6 

To provide for their beneficiaries and fulfill other estate planning goals, such as charitable giving, a client needs to know how much they are worth—and therefore how much they have to give. 

By understanding their current financial situation, clients can make informed decisions about how to manage assets during their lifetime and distribute them after their death. They can take steps now to grow and protect their wealth so that they have enough financial resources to achieve their legacy wishes by the time their estate plan takes effect. 

Like financial planning, estate planning is an ongoing process that starts with knowing what a client owns. Compiling an inventory not only helps a client measure, grow, and distribute their wealth, but it also helps those—such as the estate executor, trustees, and agent under a power of attorney—who must step in at the client’s incapacity or death. 

The client might also need to use this list in situations outside of financial and estate planning, such as when handling insurance claims and recovery efforts after a natural disaster, temporary relocation for a job or travel, identity theft, and divorce or separation proceedings. 

A comprehensive inventory of a client’s assets should include the following information: 

  • Types of assets and detailed descriptions. Go beyond a simple list and include the following details for each asset:
    • Bank accounts: The last four digits of the account number, the full legal name of the financial institution, and whether it is a checking, savings, money market, CD account, etc. Note if the account is held jointly with another person and specify their name and relationship. List the named beneficiary for the account and any contingent (backup) beneficiaries, if the client has already filled out that paperwork. 
    • Investments: Name of the brokerage firm or investment company, the last four digits of the account number for each investment, the types of investments (stocks, bonds, mutual funds, ETFs, retirement accounts, annuities, etc.), and supporting information such as the number of shares owned. Specify whether the account is held individually, jointly, or in a trust and list the primary and contingent beneficiaries for each account, if the client has already filled out that paperwork.
    • Real estate: Complete street address, the legal description of the property as recorded in the deed, lender name, loan number, mortgage details (principal balance, interest rate, and monthly payment), ownership type, and annual property taxes.
    • Personal property: Vehicles (make, model, VIN, and loan information), art, antiques, coins, stamps, jewelry, and other collectibles (including any appraisals, provenance information, or insurance information), and items such as musical instruments or electronics with significant value. 
    • Digital assets: Online banking and investment accounts, online payment platforms (e.g., PayPal), cryptocurrency wallets, domain names, intellectual property, and online businesses. Include documentation that proves ownership of these assets, such as crypto wallet addresses and keys. 
  • Acquisition date. Documenting when a client acquired an asset can be helpful for tax purposes and tracking their wealth journey. 
  • Present value. An inventory is a snapshot in time and needs ongoing review and updates. Encourage your clients to work with you to maintain an up-to-date inventory. Use a professional appraiser for items such as antiques, art, jewelry, collectibles, memorabilia, and furniture. 

Keep the List Secure and Accessible

The list should be stored securely and made accessible to the client and others who might need it (i.e., executors, trustees, and agents under a power of attorney). 

Secure the inventory in a water- and fireproof home safe. Create backups that are digitally stored with other important documents on an encrypted cloud service or external hard drive kept in a separate, safe location. Use cloud services with features that allow you to share specific folders or files with trusted individuals, or provide those individuals with login information for the cloud service or physical drive.

Do Not Wait for a Crisis—Help Your Clients Prepare Now

Financial planning professionals are well suited to maximize intergenerational wealth for their clients through greater attention to estate planning.

With tax season in full swing, your clients are already focused on their finances. Now is the perfect time to discuss longer-term needs and ensure that they have a plan to grow and protect their assets. Your proactive approach to helping clients create and maintain an asset inventory can demonstrate your commitment to their long-term financial objectives, strengthen your relationships, and uncover new service opportunities. To discuss ways we can partner to help your clients accurately document their assets, give us a call.

  1. Americans Have a Net Worth Problem, and It’s Not Positive, Creditkarma (Apr. 17, 2023), https://www.creditkarma.com/about/commentary/americans-have-a-net-worth-problem-and-its-not-positive.  ↩︎
  2. Id. ↩︎
  3. Id. ↩︎
  4. Id. ↩︎
  5. Daniel de Visé, Facing Mortality, More Americans Wrote Wills During the Pandemic. Now, They’re Opting Out, USA Today (Apr. 3, 2024), https://www.usatoday.com/story/money/2024/04/03/fewer-americans-writing-a-will/73170465007.  ↩︎
  6. State of Financial Preparedness in a Diverse America: New Evidence on Gaps, Opportunities and Challenges, TIAA Inst., https://www.tiaa.org/public/institute/publication/2024/financial-preparedness-in-a-diverse-america (last visited Feb. 26, 2025). ↩︎

Lessons from Warren Buffett’s Estate Plan: Generosity, Adaptability, and Transparency

Posted on

Warren Buffett, known as the Oracle of Omaha, is one of the most successful investors of all time. His disciplined approach to investing, combined with his understanding of markets and financial foresight, has made him a global icon and model of success in the often-turbulent business world. 

Buffett’s investing can move markets and influence corporate decisions. Investors and business leaders around the world closely follow his every move and hang on his every word about the economy and investing. 

However, Buffett, who eschews a family dynasty and is committed to giving his wealth away, also has lessons to teach about estate planning. His own estate plan, which he updated most recently in 2024, has evolved over the years to accommodate changing circumstances while staying true to his most deeply held beliefs.

Is it time to follow Warren Buffett’s lead and revise your plan?

Deep Pockets and Deeper Humility

Warren Buffett was born in Omaha, Nebraska, in 1930.1 His father, Howard Buffett, was a stockbroker and congressman 2who provided Warren with early exposure to the world of finance. 

Even as a child, Buffett displayed a knack for business, selling chewing gum, operating pinball machines, and delivering newspapers.3 He bought his first stock at age 114 and filed his first tax return at 14.5 

At Columbia Business School, Buffett studied under Benjamin Graham, a promoter of value investing and coauthor of the book Security Analysis,6 which strongly influenced Buffett’s investment strategy of buying undervalued companies with strong potential for growth.7 

Buffett’s investing rules include “Never lose money,” “Focus on the long term,” and “Know what you’re investing in.”8 He stresses avoiding speculative investments that could lead to losses.9 

He first applied these principles to Buffett Partnership Ltd., an investment partnership that made him a millionaire by 1962 at the age of 32,10 and later to Berkshire Hathaway, a struggling textile company that he took control of in 1965 and transformed into a vehicle for his wide-ranging investments.11 

Today, Berkshire Hathaway has assets worth over $1 trillion.12 It owns or has stakes in iconic companies such as Coca-Cola, Apple, Bank of America, and Kraft Heinz.13 Buffett holds approximately 31 percent of the voting interest in Berkshire Hathaway14 and has an estimated net worth of $140–$150 billion, placing him among the 10 richest people in the world.15 

However, the Buffett story is as much about his humility, generosity, and openness as it is about generating personal riches through the stock market. 

Despite his immense wealth, Buffett leads a modest lifestyle and has long pledged to give 99 percent of his wealth to philanthropic causes.16 His annual letters to shareholders are a model of transparency, where he openly discusses the company’s successes and failures and shares insights into his decision-making process.17

Buffett, the man who has taken advantage of a long investment timeline by continually reinvesting Berkshire Hathaway’s profits to compound the interest on them, admits his timeline is nearing an end.

“I feel good but fully realize I am playing in extra innings,” he wrote in a 2023 Thanksgiving letter to shareholders.18 

“After my death, the disposition of my assets will be an open book—no ‘imaginative’ trusts or foreign entities to avoid public scrutiny but rather a simple will available for inspection at the Douglas County Courthouse”19 in Omaha, Nebraska, the city where he was born and still lives, in the same house he bought in 1958, before he made his first million dollars.20 

Buffett’s Approach to Estate Planning Mirrors His Investing Principles

Buffett is a trend bucker when it comes to his legacy. While many high-net-worth individuals are known for their philanthropy, few have been as vocal as Buffett about an aversion to family dynasties. Buffett has also consistently spoken about his belief in meritocracy and the potential downsides of inherited wealth—a belief that he shares with his children and reiterated in a 2023 Berkshire Hathaway news release.21

“My children, along with their father, have a common belief that dynastic wealth, though both legal and common in much of the world including the United States, is not desirable,” he wrote.22 

He explained in an online pledge summarizing his philanthropic intentions that he considers his incredible wealth to be largely the result of fortunate circumstances and that it should go, not to his own family, who already live comfortable lives, but to improving the health and welfare of those who, unlike him and his children, “received the short straws in life.”23 

A large donation was made in June 2024, when Buffett announced that he had given more than $55 billion to five charities, including the Bill & Melinda Gates Foundation and the Susan Thompson Buffett Foundation,24 named for his first wife, who passed away in 2004. 

Initially, Buffett planned to leave the bulk of his wealth to Susan, trusting her to manage their charitable giving.25 After Susan’s death, Buffett had to reevaluate his plan. He began making annual gifts to the Gates Foundation and four family foundations run by his children, marking a shift toward more direct involvement in his philanthropy.26 

Over the years, Buffett has continued to refine his estate plan and how it will distribute his massive wealth upon his death. In keeping with his management style—a delegative, hands-off approach that empowers his executives to make decisions—he has given more discretion to his children. 

“My three children are the executors of my current will as well as the named trustees of the charitable trust that will receive 99%-plus of my wealth pursuant to the provisions of the will,”27 Buffett wrote in 2023. “They were not fully prepared for this awesome responsibility in 2006, but they are now.”28

However, Buffett also revealed to The Wall Street Journal in 2024 some significant changes to his estate plan. At the time of his death, he will cease donations to the Gates Foundation, and his remaining wealth will be directed to a new charitable trust to be overseen by his children.29 They must unanimously agree on which causes to fund and in what amount.30 Buffett explains that he inserted the unanimous agreement provision to protect his children from being individually approached by friends or other people or institutions and becoming “targets of opportunity” from would-be grant-seekers.31 When a unanimous decision is required, the child approached may use the excuse of claiming that one of their siblings would not agree.

“I like to think I can think outside the box, but I’m not sure if I can think outside the box when it’s 6 feet below the surface and do a better job than three people who are on the surface who I trust completely,” Buffett said.32 

He added that his plan provides flexibility that will enable his children to respond to any future law changes governing taxes and foundations.33 

However, the 94-year-old Buffett notes that his children—ages 71, 69, and 66 as of 2024—may not live long enough to fully distribute his wealth. As a result, he announced in a 2024 shareholder letter that he has selected three successor trustees.34 

“Each is well known to my children and makes sense to all of us. They are also somewhat younger than my children,” he wrote.35 

Buffett ends the letter with estate planning advice for parents.36 He stresses that communicating with children now when they can understand a parent’s testamentary choices, ask questions, and give suggestions can help avoid jealousies, conflicts, and infighting later on.37

“When your children are mature, have them read your will before you sign it,”he wrote. “Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death.”38

How You Can Follow Warren Buffett’s Lead

We can learn many things from Warren Buffett. Part of his legacy will be how he kept things simple, in both his personal and professional lives, in spite of the complexities that come with managing one of the largest fortunes the world has ever seen. 

For someone of his extraordinary net worth, Buffett’s planning is quite ordinary. Like his investment approach, his approach to estate planning relies on a few basic principles, including flexibility and transparency, to guide his unwavering commitment to philanthropy. 

You may have used or considered using Buffett’s investment advice to generate more wealth for you and your family. You can also use his estate planning strategies to inform your plan for what will happen to that wealth, whether it goes to charity, family, or a mix of the two. 

Your legacy is a work in progress. Your estate plan should be too. Continual refinement of your plan can reflect changes in your life, those of your loved ones, and circumstances that are beyond your control while still tracking your core convictions. 

To review your estate plan and make any necessary adjustments, reach out and schedule a meeting.

  1. Thomas Johansen, Buffett, Warren (b. 1930), Encyc. of the Great Plains (2011), http://plainshumanities.unl.edu/encyclopedia/doc/egp.ind.009.  ↩︎
  2. About the Warren Buffett Archive, Warren Buffett Archive, https://buffett.cnbc.com/about-buffett (last visited Jan. 29, 2025).  ↩︎
  3. Zack Guzman & Mary Stevens, Here’s how Warren Buffett hustled to make $53,000 as a teenager, CNBC Make It (Jan. 31, 2017), https://www.cnbc.com/2017/01/31/heres-how-warren-buffett-hustled-to-make-53000-as-a-teenager.html.  ↩︎
  4. About the Warren Buffett Archive, supra note 2. ↩︎
  5. Lorna Baldwin, Here is Warren Buffett’s first tax return, filed at age 14, PBS (June 26, 2017), https://www.pbs.org/newshour/economy/warren-buffetts-first-tax-return-filed-age-14.  ↩︎
  6. Warren Edward Buffett, Columbia250, https://c250.columbia.edu/c250_celebrates/remarkable_columbians/warren_edward_buffett.html (last visited Jan. 29, 2025).  ↩︎
  7. Daniel Shvartsman, Warren Buffett’s Investment Strategy, Investing Rules, and How He Made His Fortune, Investing.com (Oct. 16, 2024), https://www.investing.com/academy/trading/warren-buffett-investment-strategy-rules-fortune.  ↩︎
  8. Id. ↩︎
  9. Sean Fisher, Warren Buffett: Is the Stock Market Rigged?, MSN, https://www.msn.com/en-us/money/other/these-international-coins-worth-1-million-or-more-could-be-in-your-possession/ar-BB1jzhKT (last visited Jan. 29, 2025).  ↩︎
  10. David Nadelle, At What Age Did Warren Buffett Become a Millionaire?, Yahoo!Finance (Apr. 4, 2024), https://finance.yahoo.com/news/age-did-warren-buffett-become-182332572.html.  ↩︎
  11. About the Warren Buffett Archive, supra note 2. ↩︎
  12. Berkshire Hathaway, CompaniesMarketcap.com (Sept. 2024), https://companiesmarketcap.com/berkshire-hathaway/total-assets.  ↩︎
  13. Frank Bass, What Does Berkshire Hathaway Own?, The Motley Fool (Jan. 28, 2025), https://www.fool.com/investing/how-to-invest/stocks/what-does-berkshire-hathaway-own.  ↩︎
  14. Ryan Vanzo, Who Owns the Most Berkshire Hathaway Stock Besides Warren Buffett?, The Motley Fool (May 6, 2024), https://www.fool.com/investing/2024/05/06/who-owns-the-most-berkshire-hathaway-stock-besides.  ↩︎
  15. Warren Buffett, Forbes, https://www.forbes.com/profile/warren-buffett (last visited Jan. 29, 2025).  ↩︎
  16. Warren Buffett, The Giving Pledge, https://givingpledge.org/pledger?pledgerId=177 (last visited Jan. 29, 2025). ↩︎
  17. See Shareholder Letters, Berkshire Hathaway, Inc., https://www.berkshirehathaway.com/letters/letters.html (last visited Jan. 29, 2025).  ↩︎
  18. News Release, Berkshire Hathaway Inc., Nov. 21, 2023 [hereinafter 2023 News Release], https://www.berkshirehathaway.com/news/nov2123.pdf.  ↩︎
  19. Id. ↩︎
  20. Joyce Chen, Warren Buffett’s Houses: Inside the Billionaire’s Long-Standing Properties, AD (June 7, 2024), https://www.architecturaldigest.com/story/warren-buffetts-houses-inside-the-billionaires-properties.  ↩︎
  21. 2023 News Release, supra note 18. ↩︎
  22. Id. ↩︎
  23. Warren Buffett, The Giving Pledge, supra note 16. ↩︎
  24. Berkshire Hathaway Inc. News Release, BusinessWire (June 28, 2024), https://www.businesswire.com/news/home/20240628425257/en.  ↩︎
  25. Warren Buffett’s Evolving Estate Plan, The Rational Walk (June, 28, 2024), https://rationalwalk.com/warren-buffetts-evolving-estate-plan.  ↩︎
  26. Letters from Warren E. Buffett Regarding Pledges to Make Gifts of Berkshire Stock, BerkshireHathaway.com, https://www.berkshirehathaway.com/donate/webdonat.html (last visited Jan. 29, 2025).  ↩︎
  27. 2023 News Release, supra note 18.  ↩︎
  28. Id. ↩︎
  29. Lisa Stiffler, Warren Buffett says “no money” going to Gates Foundation after his death, GeekWire (July 1, 2024), https://www.geekwire.com/2024/warren-buffett-says-no-money-going-to-gates-foundation-after-his-death.  ↩︎
  30. Marcel Schwantes, Warren Buffett Has Already Announced the Beneficiaries of His Fortune After He Dies—and His Pal Bill Gates Isn’t One of Them, Inc. (Jan. 8, 2025), https://www.inc.com/marcel-schwantes/warren-buffett-has-already-announced-the-beneficiaries-of-his-fortune-after-he-dies-and-his-pal-bill-gates-isnt-one-of-them/91104262.  ↩︎
  31. Berkshire Hathaway Inc. News Release, Business Wire (Nov. 25, 2024), https://www.businesswire.com/news/home/20241125323423/en/Berkshire-Hathaway-Inc.-News-Release.  ↩︎
  32. Schwantes, supra note 30. ↩︎
  33. Austin B. Light & Marvin Blum, Warren Buffett’s Charitable Trust Requires His Kids’ Unanimous Consent, WealthManagement.com (Nov. 6, 2024), https://www.wealthmanagement.com/philanthropy/warren-buffett-s-charitable-trust-requires-his-kids-unanimous-consent.  ↩︎
  34. News Release, Berkshire Hathaway Inc., Nov. 25, 2024, https://www.berkshirehathaway.com/news/nov2524.pdf. ↩︎
  35. Id. ↩︎
  36. Id. ↩︎
  37. Id. ↩︎
  38. Id. ↩︎

Important Legacy Questions You Should Answer in Your Estate Plan

Posted on

When beginning any type of planning, you usually start with some preliminary questions. Estate planning is no different. When you begin the process, your estate planning attorney will likely ask about your family members, the accounts and property you own, and whom you want to include in your estate plan. As you dive deeper into the process, you will need to think about how you envision things unfolding after you have passed away. Aside from your money and property, are there other things you want to leave your loved ones? Any inspiring words or values that you hope they heed? The following questions can help you think about what matters most to you and what you want your loved ones to receive through your estate plan in addition to money and property.

  1. What has been your greatest success? What has been your greatest regret?

    When reflecting on all that has happened in your life, look at your greatest accomplishments. It is natural for people to want to share their successes with their loved ones. Life’s accomplishments can come in many forms, from personal growth and meaningful relationships to professional and financial achievements. Sharing your triumphs can inspire future generations and guide them toward their own paths of achievement.

    At the same time, recalling things that did not go according to plan can provide guidance that is as valuable to your loved ones as your successes. By showing the less-than-glamorous parts of your life, you may be able to help your loved ones avoid the same scenarios. Such information can be separately conveyed to your loved ones in a letter or a video recording.

    2. What is the greatest lesson you have ever learned?

      While you are reflecting on your life, it can be helpful to consider what you have learned from your many experiences. Passing this knowledge on can provide your loved ones with valuable lessons as they head into their next chapters, even though you may not be there with them. Such information can also give them a head start on their peers who may not have the same insights. As with your successes and disappointments, you can include this information in a separate writing or in video format. Sharing photos from your past can add details to a particular life lesson and help your loved ones feel like they were there with you.

      3. How do you want your loved ones to remember you?

        We are all writing the story of our lives. After we pass away, all our loved ones will have of us are the memories we leave behind. Keeping this question top of mind ensures that you have the interactions and make the types of memories with your loved ones that they will cherish and remember fondly. This could include being home for dinner and present with your family at the end of each day, going on an annual family vacation, or hosting family reunions each year with your extended relatives. Ensure that activities or rituals that are important to you are a part of your life so your loved ones can also experience and remember them.

        4. What kind of future do you want for your loved ones?

          Although part of estate planning is about you and protecting what you have worked hard to accumulate, it is also about protecting and providing for the loved ones who will be involved in your estate plan. A comprehensive estate plan includes details regarding the inheritance your loved ones will receive along with instructions you provide for those who will step in to manage things on your behalf.

          When it comes to an inheritance, the money and property you leave behind can have a dramatic impact on your loved ones’ futures. If you want your loved ones to have a good education, you can earmark money to send them to postsecondary schools. If you want them to travel and experience other cultures, consider designating money so they can visit other countries. If you hope to encourage charitable giving, you can instruct your loved ones to choose a charity that will receive a certain amount of money at your death.

          You can also influence your loved ones in other ways by detailing your wishes in your estate plan. If you need someone to step in and take care of your medical and financial affairs, you can help reduce their stress by having the right tools in place and explaining how you want things handled. Your living trust and financial power of attorney can provide guidance on how your money is to be managed. Your medical power of attorney and advance directive can provide instructions about your healthcare. Together, these tools can help you rest assured that you will be cared for in the manner you desire, even though you may not be able to otherwise communicate your wishes. Having a properly executed estate plan that lays out all of your wishes during life and at your death can also help reduce interpersonal conflicts and ensure that your loved ones can process their grief without additional stress.

          Estate planning is a process. We want to ensure that your plan includes all facets of your life, not just the money and property you have accumulated. To start or update your estate plan, call us.

          How to Give Real Property to a Loved One at Your Death Without Probate Court Involvement

          Posted on

          A home is often one of the most important assets that people own. Therefore, most people want to stay in their home until they die and then have a loved one receive it. One common way to pass a home to loved ones is through a will. However, transferring property with a will requires probate, which is generally considered a lengthy, costly, and public court process that many actively seek to avoid.

          There are several ways an estate plan can transfer property without a will or probate court involvement when the owner passes away. In addition to a lifetime transfer of the property (by sale or gift), certain types of deeds can be used that take effect only upon the property owner’s death and do not subject the property to probate. However, using these deeds for probate avoidance can potentially introduce new issues. A trust-based estate plan may be a better option if the goal is simply to avoid probate.

          Home Ownership and Inheritance 

          We are living through one of the largest intergenerational wealth transfers in history. Roughly one in six Americans expect to receive an inheritance in the next 10 years, and among those, nearly half anticipate inheriting property such as a house.1 

          According to Pew Research, in 2021, nearly two-thirds of US households lived in a home they owned as their primary residence.2 Homeowners have, on average, around $174,000 in equity in their homes—more than double the value of their next most valuable asset, retirement accounts, which have an average value of $76,000.3 

          Real Property, Legal Rights, and Trusts

          A key concept in estate planning is honoring people’s wishes by helping them control, as much as possible, what they own and what happens to it after their death.

          An estate plan enables a homeowner to decide what happens to their property after they pass away, ensuring that it goes to the person (or people) they choose in a manner of their choosing, whether that means keeping it in the family and setting limits on its use or transferring the property to a beneficiary without restrictions.

          Options for Transferring Real Property at Your Death

          Estate planning is highly flexible, offering multiple ways to satisfy someone’s wishes for what happens to their money and property when they die, each with a mix of benefits and downsides.

          To avoid probate, there are many ways to transfer real property, both during the owner’s lifetime and at their death. Some solutions can cost less than a trust, but as the examples below show, they can also have significant downsides and risks. 

          Deed-Based Transfers

          A deed is a legal document that transfers real estate ownership from the current owner (the grantor) to another individual or entity (the grantee). Several types of deeds can be used to gift real property at the grantor’s death. They include the following: 

          • Life estate deed. A life estate, created through a life estate deed, gives a person the right to live in and use a property for their lifetime. The life estate’s owner is called the life tenant, and the person who receives the property after the life tenant’s death is called the remainderman. Some people may consider using a life estate deed to retain the ability to live in their own home while they are alive, allowing them to name the remainderman who will receive the property at the life tenant’s death. While a life estate avoids probate, the creation of the life estate can be undone only if the remainderman agrees. Because the goals, legal rights, and responsibilities of the life tenant and the remainderman may differ, disagreements may arise between them over, among other things, property use, improvements, or maintenance. In addition, a life tenant cannot liquidate or sell the property without the remainderman’s agreement. 
          • Enhanced life estate deed. Also known as a ladybird deed, an enhanced life estate deed allows the grantor (who becomes the life tenant) to retain the ability to live in their home and the right to use, mortgage, sell, gift, and otherwise convey the property during their lifetime without the signature or blessing of the remainderman. When the life tenant dies, if they still own the property at their death, the remainderman will receive it. This provides flexibility for a property owner wanting to name who will receive the property at their death while retaining control over it throughout their lifetime. However, this type of deed is not available in all states. 
          • Beneficiary deed. Also known as a transfer-on-death (TOD) deed, a beneficiary deed automatically transfers the deeded property to a named beneficiary at the time of the property owner’s death. The transfer avoids probate, and the deed can be revoked anytime during the owner’s lifetime. However, not all states allow beneficiary deeds. 

          Again, not all of these types of deeds are legally valid in all states. An experienced estate planning attorney can explain what tools are available to you and discuss the benefits and potential risks.

          Downsides to Using a Deed to Transfer Property at Your Death

          There is no creditor protection for your beneficiaries. When a deed transfers property to a beneficiary, that property goes to the beneficiary outright. There are no strings attached and no protections. For instance, if the beneficiary were to receive the property during a bankruptcy proceeding, it might be used to satisfy the creditors because it is now considered the beneficiary’s property.

          There is no protection if the beneficiary is disabled or unable to manage their affairs. As previously mentioned, when the beneficiary receives the property, it is theirs. However, if they receive the property when they cannot manage their affairs, its management falls to another person. It may be handled by a court-appointed guardian or conservator or an agent under a financial power of attorney, who can do whatever they want with it (as long as it is in the incapacitated beneficiary’s best interest). Also, if the beneficiary receives any means-based assistance, the sudden inheritance could jeopardize those benefits by placing the beneficiary above any applicable asset threshold.

          There are no protections for you if you cannot manage your affairs. These deeds are a sufficient way to transfer property after you are deceased. However, if you cannot manage your affairs during your lifetime, the named beneficiary or remainderman has no access to or interest in the property to help you manage it until you pass away. You will have to rely on an agent under a financial power of attorney (if you have one) or a court-appointed guardian or conservator to manage the property on your behalf.

          Your beneficiary is free to do what they want.As already discussed, if you use a deed to transfer ownership at your death, your beneficiary will receive the property outright. You cannot add any conditions or requirements regarding the property or its use. The beneficiary can sell, mortgage, or use it as a rental property (subject to applicable zoning restrictions). It is their property to do with as they please. Their intended use of the property may not align with your wishes.

          Using a Trust to Transfer Real Property

          While you may view your home as a place to live and not as an investment or financial vehicle, that perception can change when you pass away and the home passes to a loved one, particularly if that loved one already has a primary residence. 

          A beneficiary who inherits a home may decide to sell the property; turn it into a rental; renovate the property to use it as a farm or business; sell off individual structures on the property (such as a barn or historic structure); cash in on its natural resources (e.g., allow timber to be harvested); or even tear down the original home and build a new one in its place. When more than one beneficiary inherits the property, disagreements about how to best use it could arise.

          You might not care what happens to your home when you are gone. However, if you want to set restrictions on its use for any reason—whether those reasons are sentimental or have the practical intent of reducing conflicts among multiple beneficiaries—you must use the right estate planning tool. 

          Consider placing your home in a living trust that legally owns the property, with you serving as a trustee and being the current beneficiary during your lifetime. This allows you to stay in your home—and maintain control over it—while you are alive. When you pass away, the home does not go through probate because you do not technically own it. Instead, a successor trustee assumes legal responsibility for the property and manages it or gives it away in accordance with your trust’s terms. 

          The trust terms can be highly detailed, and limitations can be set on how the property can be used. You can stipulate, for example, that the property must be shared as a family vacation home and cannot be used for business purposes. You can require that the house be held in the trust until your minor children reach a certain age so they can remain in the home after your passing. While the trust owns the property, your terms will govern its use. As soon as the property is distributed from the trust, you lose all control over it.

          The Best Way to Transfer Property for Every Situation

          Estate planning is a highly personal process that must consider many factors, each of which can have multiple solutions that present a unique set of benefits and drawbacks.

          Avoiding probate is usually just one estate planning consideration among many, and it may not be desirable in every situation. 

          Determining the best way to pass down real property at death depends on your preferences and family circumstances. An estate planning attorney can explain each available option and help you decide what is best for your situation. 

          1. The “Great Wealth Transfer” is underway but nearly half expecting an inheritance are not ready to manage it, finds New York Life Wealth Watch Survey, New York Life, July 19, 2023, https://www.newyorklife.com/newsroom/2023/new-york-life-wealth-watch-great-wealth-transfer. ↩︎
          2. Rakesh Kochhar and Mohamad Moslimani, 4. The assets households own and the debts they carry, Pew Research Center, Dec. 4, 2023, https://www.pewresearch.org/2023/12/04/the-assets-households-own-and-the-debts-they-carry. ↩︎
          3. Id. ↩︎

          Money Isn’t Everything in Estate Planning

          Posted on

          How to Pass Your Stories and Values to Future Generations

          Money and property may be the most discussed types of wealth that a person owns, but the riches of their experience and wisdom can mean even more to loved ones down the line. Reinforcement of family traditions can be built into your estate plan alongside your wishes regarding the distribution of your money, property, and belongings. After all, what really makes a family is its values and traditions—not the finances that are left behind. 

          An excellent way to share your values with your loved ones is to hold a family meeting to discuss what matters most to you. In addition to sharing your wisdom, you may make it more likely that your loved ones will handle their inheritance responsibly, especially if they understand the reasons behind the choices you have made in your estate plan. This is one of the many reasons for having a family discussion about your legacy and estate plan. 

          How to Tell Your Story Through Your Estate Plan

          It can be delightful to hear your elders’ stories of their fondest memories and wildest adventures, as well as the struggles they overcame to get the family where it is today. Such wisdom provides meaning for a financial legacy that otherwise might be viewed as just a lucky windfall. As part of your estate and legacy planning, you may decide to record your own personal history of triumphs and tribulations through one or more of the following methods:

          • Audio files. With the prevalence of smartphones, most people are carrying around the easiest device for recording their thoughts. Through a variety of apps, you can record stories or lessons as they occur or as you remember them.
          • Video files. The same goes for home movies and other video recordings. Older film formats can be easily digitized and organized along with the videos from your phone. Today’s technology also makes it easier than ever to add narration and context to a video, making the story all the richer.
          • Photo albums. Many families have prized photo collections that catalog generations. It is a tragedy when something like this is lost in a fire or an extreme weather event or misplaced during a move. Creating a digital database is a favor to your family in more ways than one. Not only will they have access to these memories at any time, but they can also feel secure knowing that these family treasures will not be lost and that multiple copies can be made for the different branches of the family. In addition, most of us are capturing our favorite moments by using our phones to take pictures that can be stored on the phone or in the cloud or saved to a separate device to be protected.
          • Letters and other writings. In your legacy plan, you can provide handwritten or typed letters or stories to your family members, to be received and read at a time of your choosing. You may also choose to include past correspondence, mementos, and postcards that have been tucked away somewhere. Reliving your memories of the past through your old letters and postcards can be a great way for younger generations to get to know and sincerely appreciate your life journey and legacy.

          Passing Your Values to the Next Generation

          Some estate planning strategies blend your finances and personal values. Whether you feel most passionate about the need for your beneficiaries to travel and gain worldly experience, continue a unique family tradition such as sailing or astronomy, or support meaningful charitable or spiritual work, we can draft trusts that hold and distribute funds for these endeavors. 

          • Educational trusts. If you value education, you may want to set up a trust to fund trade school, undergraduate and graduate degrees, study-abroad programs, or even community classes for your family’s future generations. Because of sharp increases in educational costs in the United States, your grandchildren will likely benefit immensely from an educational trust. Depending on the generation, you may also be able to use a special type of educational trust as a tax strategy.
          • Incentive trusts. Similar to the way educational trusts set aside money for funding a beneficiary’s schooling, incentive trusts can also help steer the course of your loved ones’ lives by encouraging some paths while discouraging others. For example, an incentive trust could contain instructions for disbursements to be released when the beneficiary is working a part- or full-time job. If family vacations were an important part of your upbringing, you could set aside funds specifically for your grandchildren to experience the same wonderful traditions you enjoyed.
          • Charitable trusts or foundations. Charitable trusts or foundations establish a family legacy of supporting a particular cause, but they may also have the added financial benefit of reducing income and estate taxes. They are an excellent way to benefit a charitable organization central to your core values and associate your name with that philanthropic effort for generations to come. 

          Are you curious about exploring a few of these options in your estate and legacy plan? Call us today, and we can schedule an appointment to review options for showcasing your memories and values in a long-lasting way that truly benefits your loved ones.