I’m a Young Parent, How Should I Set Up My Life Insurance Policy?
Many people with young kids to educate and mortgages to pay off will have large term-life insurance policies to cover these expenses if anything happens to them. Young families often do not do estate planning and make simple mistakes that can prove costly down the road. Most standard Wills will have a trust in place for minor beneficiaries. The Trustee holds on to the money and spends on behalf of the minor, for their benefit until they reach a certain age (i.e. 25 years old). For this reason, if you have young children, your life insurance should flow through your will to fund these trusts for your children. Instead I find that young families will name the children themselves or worse, a brother or sister thinking that they will spend the money on the kids behalf. But then time goes by, people get divorced, etc.. life happens. These policies are forgotten. Part of the Estate Planning process is going through all your assets and making sure details like this are attended to. I offer a sizable discount to young families because they so often neglect this critical issue. See my young family discount and call me today.
– Kathryn Bedell, Esq.
BUYER BEWARE – On-line Estate Planning Documents
In these uncertain times Estate Planning (Wills, Trusts, Powers of Attorney, Advance Health Care Directives) is on everyone’s minds. Many people use on-line services to generate basic forms. Unfortunately, those documents are often cut and paste, and can often have wrong information. Maine, for example, just passed a sweeping change to it’s Probate Code in September, and many on-line national programs have not caught up yet.
The Estate Planning Process is so much more complex than drafting a few forms. One of the most critical elements of the Estate Planning process is reviewing a client’s assets and making sure they are all titled properly. No on-line program can do this.
Working with an attorney is not as expensive as one might think. At Ballou and Bedell the entire process for a single person is $475 and $775 for a married couple. We offer a generous discount (25%) for any young families with minor children. These documents, if done well, can potentially last you the rest of your life, depending on your age. Don’t be penny wise and pound foolish.
Call us today and put your mind at rest.
– Kathryn Bedell, Esq.
Why young families must have estate planning documents
All too often young families avoid or put off executing Wills and other estate planning documents because they don’t think they need them. Ironically, they are the very ones who do need estate planning. A Will allows you to name the Guardian of current and future-born children. Testamentary Guardianships are automatically issued by the probate court. There is no court process involved, so no family drama over who will take care of your children if both parents are gone. Moreover, your Will can set up a simple testamentary trust for minors to ensure that the money you pass to your children is protected until they are ready to inherit it. To ensure your loved ones have no worries, it is also essential to go through your beneficiary designations on insurance, retirement and other assets.
Attention – parents with grandchildren:
Estate planning gift certificates make great Christmas and Birthday gifts for our children!
-Kathryn Bedell, Esq.
Who should I choose as my Personal Representative or Trustee?
Whether you have a will-based estate plan or trust-based one choosing the right person who will be in charge of your assets when you are gone is sometimes a difficult decision for people. Gone are the days when the oldest son is automatically chosen. I’ve seen too many family fights occur simply because the wrong person is serving in this position. You know your family and its particular politics best.
Blended families may want to utilize Co-Personal Representatives so that a child from each side is represented. In some situations it is necessary to go to a neutral third party, like a neighbor, sibling, or professional. Things to consider when choosing:
- Are they fair?
- Are they good communicators?
- Are they able to take criticism and not let it bother them?
Worry less about who is “local” and more about who you truly trust to get the job done. Always remember to have plenty of contingency planning in case someone you choose dies, gets sick, or just doesn’t want to do it.
Choose wisely and you will minimize family discord after you pass.
-Kathryn Bedell, Esq.
“If I was looking for an estate planning Attorney…”
Advice from a Seasoned Estate Planning & Probate Attorney
1. Don’t get your estate planning documents online. I estimate that 99% of what I do is not preparing documents, but giving tailored advice for your unique situation.
2. Use online research, but only to educate yourself, as well as to compare and contrast attorneys.
3. Interview lawyers, by telephone or at your first office meeting – shop around and ask for price.
4. Make sure to use a lawyer who only focuses on estate planning.
5. If you are afraid to interview a lawyer, use word of mouth – ask your friends.
– Kathryn Bedell, Esq.