What Taxes are Due if I Gift My Home to my Child?

It’s not unusual for a senior to consider gifting their home to a married child or to a grandchild. However, there are tax consequences to consider before you do this.

nj.com’s recent article on this subject asks “What should I know about taxes before I gift my home?” The article explains that you can gift your home or any other asset to anyone, provided that person is capable of receiving the gift and takes delivery or ownership of it. However, if the grandchild is a minor, the gift would have to be made either in trust with a trustee or through a Uniform Transfers to Minors Act (UTMA) account that has a custodian, until they attain the age of majority.

The federal government has a gift tax, but not everyone will be subject to the tax. That’s because each year, you can give anyone up to a $15,000 gift tax-free. If you’re married, you and your spouse could each make those gifts, totaling $30,000 per year, per recipient without any gift tax.

Gifts to an individual more than $15,000 per year that aren’t under an exclusion or exemption are subject to federal gift tax. As a result, you must file a federal gift tax return on IRS Form 709. However, it’s not likely that you’ll actually have to pay any gift tax, even though you have to file a return. The reason is that under the federal unified estate and gift tax system, each person has a lifetime exclusion from gift and estate taxes of $11.4 million, over and above the annual $15,000 per person gift tax exclusion. That number is doubled for married couples ($22.8 million). So, you can transfer up to $11.4 million, whether as a gift during your lifetime or as a bequest after your death, before any gift or estate taxes are actually due. Keep in mind, though, that if you make gifts that use up your $11.4 million exemption, that your exemption is reduced by that amount when your estate tax is calculated on your death.

In addition, you can make unlimited gifts to qualified charities without any gift tax consequences. The same is true for gifts to spouses, as long as both spouses are U.S. citizens. Payments of tuition or medical expenses for someone else are also gift tax-free if they’re made directly to the school or the medical care provider.

As far as whether and how to gift your home, there are income tax considerations to consider. If you sell your home and have a capital gain, you may qualify to exclude up to $250,000 of that gain from your income. The exclusion is up to $500,000 if you’re married and file a joint return with your spouse. To qualify for the capital gains exclusion on the sale of your home, you are required to have owned the home and also used it as your principal residence for at least two of the previous five years.

For example, say that you purchased a home for $200,000 and made capital improvements in the amount of $50,000. Your basis in the home is now $250,000. If you sell that home for $500,000, then you will have a capital gain of $250,000 ($500,000 sale price minus $250,000 basis). However, as long as you qualify under IRS principal residence rules, you could exclude the entire $250,000 gain when you sell the residence and therefore have no tax bill to pay.

If you gift the house to a child or anyone else, in most instances, your $250,000 basis would carry over to the recipient. Your child and their spouse would then have a $250,000 basis in the house. If they live in it for two years, then they could have a capital gains exclusion of up to $500,000, as long as they file a joint return, if they then sell it.

If you want to stay in your home, one option is to leave it to your child or grandchild in your will, rather than gifting it now. If your child inherits the house, then their basis in the inherited house would then be its fair market value on the date of your death instead of your original $250,000. This increased basis in the home would decrease the amount of any future capital gains if the daughter subsequently sold the home.

Another option would be to sell the house now to a third party, leverage the capital gains tax exclusion and then gift the money, instead of the home itself, to your child.

The best financial outcome would depend on the individual financial circumstances, future plans, and income tax brackets of the parent and child. There are additional factors to consider, such as the age of the house, its location and condition, whether your child would use it as their primary residence or as a rental and whether you anticipate that the house will increase in value over time.

One final note: if you gift the house to a grandchild, the generation-skipping transfer tax (GSTT) would apply in addition to the gift tax. This is a separate tax system that applies when gifts or bequests are made to a person who is two or more generations below the person making the gift or bequest, like a grandchild or great-grandchild. However, many of the same exclusions that apply for gift tax purposes, also apply for GSTT purposes. So, the odds are you won’t have to pay any GSTT for this specific transfer.

Talk to an experienced estate planning attorney to help you find the best strategy for you and your family.

Reference: nj.com (October 28, 2019) “What should I know about taxes before I gift my home?”

What Estate Planning Do I Need with a New Baby?

Congratulations parent! You have a new baby. There’s a lot to think about, but there is a vital task that should be a priority. That is making an estate plan. People usually don’t worry about estate planning when they’re young, healthy and starting a new family. However, your new baby is depending on you to make decisions that will set them up for a secure future.

Motley Fool’s recent article, “If You’re a New Parent, Take These 4 Estate Planning Steps” says there are a few key estate planning steps that every parent should take to make certain they’ve protected their child, no matter what the future holds.

  1. Purchase Life Insurance. If a parent dies, life insurance will make sure there are funds available for the other spouse to keep providing for the children. If both parents die, life insurance can be used for a guardian to raise the child or to fund the cost of college. For most parents, term life insurance is used because the premiums are affordable, and the coverage will be in effect long enough for your child to grow to an adult.
  2. Draft a Will and Name a Guardian for your Children. For parents, the most important reason to make a will is to name a guardian for your children. If you designate a guardian, you can select the person that you think shares your values and who will do a good job raising your children. This way, it’s not left to a judge to make that selection. Do this as soon as your children are born.
  3. Update Beneficiaries. Your will should say what happens to most of your assets, but you probably have some accounts with a designated beneficiary, like a 401(k), IRA, or life insurance. When you have children, you’ll need to update the beneficiaries on these accounts for your children to inherit these assets as secondary beneficiaries, so they will inherit them in the event of your and your spouse’s death. Be careful, however, to designate a custodian to take care of those funds while your children are still minors.
  4. Look at a Trust. If you die prior to your children turning 18, they can’t directly take control of any inheritance you leave for them. This means that a judge may need to appoint someone to manage assets that you leave to your child. Your child could also wind up inheriting a lot of money and property free and clear at age 18. To have more control, like who will manage assets, how your money and property should be used for your children and when your children should directly receive a transfer of wealth, ask your estate planning attorney about creating a trust. With a trust, you can designate an individual who will manage money on behalf of your children and provide instructions for how the trustee can use the money to help care for your children, as they age. You can also create conditions on your children receiving a direct transfer of assets, such as requiring your children to reach age 21 or requiring them to use the money to cover college costs. Trusts are for anyone who wants more control over how their property will help their children after they’ve passed away.

When you have a new baby, working on your estate planning probably isn’t a big priority. However, it’s worth taking the time to talk to an attorney for the security of knowing your bundle of joy can still be provided for, in the event that the worst happens to you.

Reference: Motley Fool (September 28, 2019) “If You’re a New Parent, Take These 4 Estate Planning Steps”

What Mistake Did Hollywood Director John Singleton Make with his Estate?

Hollywood director John Singleton didn’t do his family any favors by committing the most common mistake when it came to estate planning: procrastination.

Forbes’ recent article, “The John Singleton Estate Teaches Why No One Should Procrastinate Updating Their Will” explains that after Singleton died in April at age 51 from a stroke, he only had an outdated will from 1993. Although he was unmarried when he died, he left behind at least five children and two other minor daughters, who may be his offspring. The family has already publicly disagreed about important issues like who should serve as his conservator if he was to recover from the stroke. They even fought over the cause of his death, after he was brought to the hospital under mysterious circumstances.

Couple this acrimony with an outdated will, and Singleton’s family can expect many years of headaches, stress and legal battles about his estate. There will also be some hefty legal fees. Singleton died with only a will in place, so his estate will go through the lengthy and expensive probate court process. This has already led to more fighting and will likely mean more legal disputes.

Singleton’s mother, Sheila Ward, filed to open the probate proceeding and asked the court to admit his 1993 will. At the time he signed it, Singleton was a relatively new director and had only one child, daughter Justice. Ward reported that Singleton had assets worth $3.8 million. She listed his heirs, which include five acknowledged children, plus two minor daughters, each of whom she designated as an “Alleged Daughter.”

However, some websites have reported that Singleton’s net worth was around $35M when he died. It is believed that the filing only listed a small fraction of his wealth, because he may have had a trust that contained the remainder of his assets. It’s possible but unlikely, in light of the fact that it would be very unusual for someone to set up a trust and not at the same time create or update his will to a “pour-over” will.

Pourover wills work in concert with trusts so that any assets not transferred into a trust during someone’s lifetime are then passed into the trust through the probate court process after they die. As the name implies, the will “pours” the assets from the probate estate into the trust. Singleton’s 1993 will was already admitted into probate, so the court determined it was his last unrevoked will created during his life, and it wasn’t a pour-over will.

His mother, who was appointed the personal representative of his estate, recently filed a new document asking for the court to approve a settlement worth $515,472 based on Singleton’s claim for a greater share of royalties from Sony Pictures arising from his 2001 movie, Baby Boy. The filing says that Singleton reached a settlement in this amount before he died, but the settlement was never signed or finalized due to his untimely stroke. This money would be added to his estate.

Under his 1993 will, only his daughter Justice will inherit the millions of dollars of her dad’s estate.  However, the other kids aren’t out of luck. Singleton’s will doesn’t control their inheritance, because they were born after he signed his will. California’s probate law permits any after-born children to inherit equally with children living when the will was signed, with exceptions (like if a child was taken care of in other ways, such as a life insurance policy).

There’s still the question of how many of the children are really his. The paternity of the two minor daughters wasn’t established. That may be another probate fight.

The lesson of all of this is to work with a qualified estate planning attorney to be certain that you have an up-to-date will, as well as other important estate planning documents.

Few people expect to pass away at such a young age, like Singleton, but no one is promised tomorrow. Don’t procrastinate creating an estate plan, believing that you can take care of it “someday.”

Reference: Forbes (November 4, 2019) “The John Singleton Estate Teaches Why No One Should Procrastinate Updating Their Will”

How Do I Deed My Home into a Trust?

Say that a husband used his inheritance to purchase the family home outright. The wife signed a quitclaim deed to him to put the property into his individual living trust with the condition that if he died before his wife, she could live in the home until her death.

But what if the husband or the creator of the trust never signed the living trust? In that case, what would happen to the property if the husband were to die before the wife?

This can quickly become even more complicated if it’s a second marriage for each of the spouses and they have adult children from prior marriages.

The Herald Tribune’s recent article, “Home ownership complications need guidance from estate planning attorney,” says that in this situation it’s important to know if the quitclaim deed was to the husband personally or to his living trust. If the wife quitclaimed the home to her husband personally, he then owns her share of the home, subject to any marital interests she may still have in the home. However, if the wife quitclaimed the home to his living trust, and the trust was never created, the deed may be invalid. The wife may still own the her original interest in the home.

It’s common for a couple to own a home as joint tenants with rights of survivorship. This would have meant that if the wife died, her husband would own the entire property automatically. If he died, she’d own the entire home automatically.

If the wife signed a quitclaim deed over to him or his trust, and the deed was recorded, then she would have transferred her ownership rights to her husband and he would be the sole owner of the home.  If the deed was never even filed or recorded, the wife could simply destroy the document and keep the status of the title as it was.

If the trust doesn’t exist, her quitclaim deed transfer to an entity that doesn’t exist would create a situation where she could claim that she still owned her interest in the home. However, the home may now be owned by the spouses as tenants in common, rather than as joint tenants with rights of survivorship.

To complicate things further, if the husband fully owned the home at the time of his death and the wife has marital rights in the home, then she may still be entitled to a share of the home under her husband’s will, if he has one, or by the laws of intestacy. However, the husband’s children would also own a share of his share of the home. At that point, the wife would co-own the home with his children.

You can see how crazy this can get. It’s best to seek the advice of a qualified estate planning attorney to guide you through the process and make sure that the proper documents get signed and filed or recorded.

Reference: The (Sarasota, FL) Herald Tribune (September 8, 2019) “Home ownership complications need guidance from estate planning attorney”

As a Trust Beneficiary, Am I Required to Pay Taxes?

As a Trust Beneficiary, Am I Required to Pay Taxes?
Tax return check on 1040 form background

Beneficiaries who receive distributions from a trust often have tax questions about whether they have to pay tax or not. Fundamentally, whether a beneficiary pays taxes on distributions or not depends on whether the money they receive is considered “income” or “principal”.

When an irrevocable trust makes a distribution, it deducts the income distributed on its own tax return and issues the beneficiary a tax form called a K-1. This form shows the amount of the beneficiary’s distribution that’s interest income, as opposed to principal. With that information, the beneficiary knows how much she’s required to claim as taxable income when filing taxes.

Investopedia’s recent article on this subject asks “Do Trust Beneficiaries Pay Taxes?” The article explains that when trust beneficiaries receive distributions from the trust’s principal balance, they don’t have to pay taxes on the distribution. The IRS assumes this money was already taxed before it was put into the trust.

After money is placed into the trust, the interest it accumulates is taxable as income—either to the beneficiary or the trust. The trust is required to pay taxes on any interest income it holds (in other words, the income it doesn’t distribute by the taxable year-end). If the trust distributes the interest income, though, it is considered taxable income to the beneficiary who gets it.

The money given to the beneficiary is considered to be from the current-year income first. That means that a distribution to the beneficiary will first be categorized as “income”, and the beneficiary will have to pay taxes on it. If a trustee gives a beneficiary a distribution that is more than the amount of the current-year income, then it is considered to be a distribution from the accumulated principal. This is usually the original contribution that was placed into the trust account, plus any subsequent deposits.

Capital gains may be taxable to either the trust or the beneficiary. All the amount distributed to and for the benefit of the beneficiary is taxable to her to the extent of the distribution deduction of the trust.

If the income or deduction is part of a change in the principal or part of the estate’s distributable income, then the income tax is paid by the trust and not passed on to the beneficiary. An irrevocable trust that has discretion in how much to distribute and how much to keep as retained earnings will pay trust tax based on the rate schedule for trusts and estates, but a beneficiary will pay income tax based on the rate schedule that applies to the beneficiary (single, married, head of household, etc.).

The two critical IRS forms for trusts are the 1041 and the K-1. IRS Form 1041 is like a Form 1040. This is used to show that the trust is deducting any interest it distributes to beneficiaries from its own taxable income.

The trust will also issue a K-1. This IRS form provides details about the distribution. Specifically, it will tell the beneficiary how much of the distributed money came from principal and how much is interest. The K-1 is the form that allows the beneficiary to see their specific tax liability from trust distributions.

The K-1 schedule for taxing distributed amounts is generated by the trust and given to the IRS. The IRS will deliver this schedule to the beneficiary so that they can pay the tax. The trust will fill out a Form 1041 to determine the income distribution deduction that’s conferred to the distributed amount. Your estate planning attorney will be able to help you work through this process.

Reference: Investopedia (July 15, 2019) “Do Trust Beneficiaries Pay Taxes?”

The Biggest Estate Planning Errors

The Biggest Estate Planning Errors
Young woman making a mistake on a pink background

Nobody likes to plan for events like aging, incapacity, or death. However, failing to do so can cause families burdens and grief, thousands of dollars and hundreds of hours. Fox Business’ recent article, “Here are the top estate planning mistakes to avoid,” says that planning for life’s unexpected events is critical. However, it can often be a hard process to navigate. Let’s look at the top estate planning mistakes to avoid, according to industry experts:

1. Failing to have a will (or one that can be located). The biggest mistake is simply not having a will. Many people wait for “a more appropriate time” to put a will together. The truth is, we all need estate planning, no matter the amount of assets a person may have. In addition to having a will prepared and executed, it needs to be findable. The Wall Street Journal says that the biggest estate planning error is simply losing a will. Make sure your family has access to any estate planning documents you create.

2. Failing to name and update beneficiaries. An asset with a beneficiary designation supersedes any terms in a will. Review your 401(k), IRA, life insurance, and any other accounts with beneficiaries after any significant life event. If you don’t have the proper beneficiary designations, income tax on retirement accounts may have to be paid sooner and your heirs will have to pay a lump sum tax immediately. Without a life insurance policy, the proceeds will have to go through probate, which means they are subject to creditors’ claims.

Another mistake that impacts people with minor children is naming a guardian for minor children and then naming the guardian as the outright beneficiary of their life insurance. If money is left to the guardian, then the proceeds are now considered the assets of the guardian and do not transfer to the minors. The cash also now faces exposure to the creditors and spouse of the guardian named as a beneficiary Instead, parents should leave the money to a trust for the children and name the guardian, or another trusted and responsible person, as the trustee of the trust.

3. Failing to consider powers of attorney for adult children. When your children reach age 18, they’re adults in the eyes of the law. If something unfortunate happens to them, you may be left without any say in their treatment or even access to their medical records. In the event that an 18-year-old becomes ill or has an accident, a hospital won’t consult with their parents if a power of attorney for health care isn’t in place. Further, without a financial power of attorney, a parent may not be able to take care of bills, make investment decisions or pay taxes without the child’s signature. This could create an issue when your child is in college—especially if he or she is attending school abroad. It is very important that when your child turns 18 that you have powers of attorney put into place.

Reference: Fox Business (October 15, 2019) “Here are the top estate planning mistakes to avoid”

How Can Life Insurance Help Me with my Post-Divorce Estate Planning?

How Can Life Insurance Help Me with my Post-Divorce Estate Planning?
Agent protects family figures. Life Insurance policy on a desk.

Divorce can be extremely stressful in and of itself as you work through you and your ex-spouse’s current financial landscape. To add insult to injury, divorce can bring some extra challenges to estate planning. The good news is that there are some easy solutions that can help. In many instances, a frequently overlooked strategy can provide real solutions for divorcees as they go through a divorce, as well as provide for future blended families. That’s life insurance. Using life insurance to address some of these issues, can help you create an estate plan that really fits your needs, goals and unique family circumstances.

Insurance News Net’s article “5 Ways Life Insurance Eases Post-Divorce Estate Planning” provides us with five ways life insurance can help you in the event of a divorce:

Have money for divorce-related expenses. If the divorce is contested or includes child custody issues, the proceedings be quite long, maybe months or years. As a result, your attorney’s fees could be hefty. Those with an established permanent life insurance policy can take withdrawals or loans from the policy’s cash value to help pay expenses. If the policy is designed effectively, you won’t have to liquidate other assets or take money from your estate that was designated for beneficiaries.

Protect your income post-divorce. Your income can change significantly after a divorce, especially if one spouse was a stay-at-home parent. They may get alimony payments to help make up the difference, but if the payor unexpectedly dies, the lost income can create a lot of stress and financial hardship for those left behind. Permanent life insurance on the paying spouse can help provide coverage and replace any income lost in the event they pass away suddenly.

Preserve your estate post-divorce. Life insurance can also provide funds to pay off existing debt held by the deceased ex-spouse, which may otherwise eat through the estate. This also can eliminate the need to liquidate other assets from the estate that would have gone to the surviving spouse or other heirs. Take withdrawals or loans from the policy–tax-free, if the policy is set up correctly–and you can effectively plan your legacy, even if your ex-spouse hasn’t been financially responsible.

Ensure that children get a fair inheritance. If you have children from a previous marriage, it may make sense to provide for them through life insurance, rather than passing their assets through a new spouse first. In the alternative, you can provide for your new spouse through life insurance and leave the estate to the children outright or in a trust. With either option, dividing how you leave assets to biological children and a new spouse in a blended family can eliminate stress and bad feelings, especially if the new spouse has children of their own.

Help fund college or other expenses for your children. There is a lot of value in getting life insurance on the lives of both parents, even if only one of them previously worked. Protecting the lives of both parents with permanent life insurance allows you to make certain that the expenses for the children are addressed. Therefore, if the former spouse is responsible for paying medical expenses, college expenses, or other costs for the children, life insurance can provide needed funds if that ex-spouse passes. Permanent life insurance with cash value can also provide funds during the insured spouse’s lifetime (if cash isn’t readily available) to pay college tuition or help adult children repay student loan debt.

You should also look at permanent instead of term insurance. Term insurance may be less expensive, but permanent insurance can accumulate cash value that can be drawn from the policy while the spouse is still alive, as well as providing a death benefit. You may want to also look into adding riders to customize your policy. With a permanent life insurance policy and a long-term care rider, you have the ability to accelerate the policy’s benefit while you’re alive to pay for long-term care costs. This can put to rest some of the concerns for divorcees about who will take care of them if they can’t take care of themselves.

A carefully planned permanent life insurance policy can help you protect yourself, your income, and your estate throughout your lifetime, even if you experience divorce.

Reference: Insurance News Net (November 5, 2019) “5 Ways Life Insurance Eases Post-Divorce Estate Planning”

Why Do I Need a Power of Attorney?

People often wonder why they would need a Power of Attorney, also known as a POA.

Fed Week’s article, “Giving Someone the Power of Attorney,” uses the example that you might suffer a stroke with no prior warning signals and be unable to sign your name. This could mean serious financial consequences. However, executing a POA can protect you in that kind of situation.

It’s important for just about everyone to have a POA. You can name more than one attorney-in-fact, stipulating if they are permitted to act alone or if they must act in concert.

Of course, the individual you designate must be someone you trust. This is typically a close (albeit younger) member of the family or a close friend. You might nominate both of your children as attorneys-in-fact, requiring that they agree to act on your behalf under a power of attorney.

If desired, you can assign different responsibilities to different individuals. For instance, you can name your spouse to make your housing decisions and your son to manage all your financial affairs.

You may not want to give power over your assets to a family member, while you’re still in command of your faculties (or have capacity). To address this, many states recognize what are called springing powers of attorney. These powers do not become effective until specified events take place, like incompetency (certified by a doctor) or when you go into a nursing home.

If your state doesn’t recognize springing powers, you often can see the same result with a durable power of attorney that’s accompanied by a letter saying that the power will go into effect, if certain events occur. For example, in Florida, contingent or “springing” powers of attorney are not permitted after legislation was passed in 2011.

Talk to an experienced estate planning attorney in your state, who can help you understand the type of POA your state laws allow. He or she can also keep these signed documents until they’re needed. Your attorney will also know if the law also provides that powers of attorney properly executed under the laws of another state are recognized in your state of residence.

Reference: Fed Week (October 3, 2019) “Giving Someone the Power of Attorney”

How Does the IRS Know if I Give My Grandchildren Money?

A recent nj.com recent post asks, “Will the IRS know if I gift money to my grandchildren?” The article explains that federal and state tax agencies do not have any direct way of knowing how much is being gifted. They rely on taxpayers self-reporting gifts. It’s the honor system.

However, the tax authorities may discover these transfers when you or the recipient are audited, by matching transactions reported for certain assets, or because banks are required to report cash transfers in excess of $10,000. Because it’s pretty simple to avoid paying gift tax, it doesn’t seem worth the risk of getting caught trying to skirt the rules. Understanding the gift tax and working within the system is the best way to avoid issues.

The IRS stipulates that a gift is “the transfer of property by one individual to another while receiving nothing, or less than full value, in return.” A gift is never taxable to the recipient, so only the person making the gift has to consider the gift tax.

The amount you can give will not be subject to gift tax if the gift amounts are less than the annual and lifetime exemptions. The annual gift exemption is currently $15,000 per recipient, which means that you can give up to $15,000 each year to an unlimited number of people with no reporting requirement at all.

You’re supposed to complete a U.S. Gift Tax Return (IRS Form 709) if you exceed the exemption, but don’t panic. Although you are required to file a gift tax return, it is highly unlikely any gift tax will be due. That’s because gifts in excess of the annual exemption must first offset your lifetime exemption before any gift tax is due.

Keep in mind, however, that the IRS can impose penalties if they discover that you failed to file a gift tax return, even if no gift tax was due. Also note that the gift tax is integrated with the estate tax, which applies to amounts transferred upon your death in excess of your remaining lifetime exemption.

If you’re planning on making a gift to help pay a grandchild’s college costs or medical expenses, make the payment directly to the educational or healthcare institution. By making the payment directly to the institution, that payment will not be considered a gift and will not go towards the $15,000 exemption and also will not decrease your lifetime exemption.

Ask your estate planning lawyer about any state gift, estate and inheritance tax implications for any significant transfers you want to make.

Reference: nj.com (October 1, 2019) “Will the IRS know if I gift money to my grandchildren?”

Am I Too Young to Think About Estate Planning?

It’s wise for younger generations to consider estate planning early, advises The Cleveland Jewish News in the recent article “Younger generations should focus on estate planning, too.” Don’t be fooled into thinking that an estate plan is only for older people or the ultra-wealthy. In fact, there are many younger adults who may need it, especially if they have been financially successful and also have experienced changes with marriage and families.

This is especially important for young people who are in committed relationships. A young married couple should talk together about their vision and goals for their financial, health, and legal affairs, in case something happens to one of them or within their families.

Estate plans provide some certainty in an otherwise uncertain life. There are many reasons to start early. One reason is that you never know what’s going to happen. You want to make certain that all of your assets are in place.

When creating an estate plan, there are a few things that younger people should consider, such as making sure all their accounts have named a beneficiary. This includes life insurance, retirement, and checking and savings accounts. These beneficiaries need to be reviewed on an ongoing basis and updated for life and family changes.

Many younger adults will be fine with just a will, a financial power of attorney, and a health care power of attorney. However, marriage is a time when people begin to have more complexity in their professional lives. This can include starting a business or becoming leaders at companies and that may require more complex and protective plans.

While younger generations are known to be independent and to try to meet all their needs online, estate plans should be treated differently. There are numerous online tools or ‘do-it-yourself’ strategies, but professional legal assistance can make it an easier and a more thorough process. Remember, when you meet with an attorney, you are not just getting the papers; you are also receiving their guidance and expertise, crafted to address the needs of your specific situation.

Start as early as you can and set the foundation for more complex planning that will come in the future. This preparation will mean less stress for those left behind after you pass away.

Reference: Cleveland Jewish News (September 19, 2019) “Younger generations should focus on estate planning, too”