Oregon Estate + Business Planning Blog

Estate Planning Danger: "My uncle/college roommate/sister's husband is a lawyer and he did our Wills for us."

I often hear people say that they got their "wills taken care of" by their uncle/college roommate/sister's husband, who is a lawyer. This is one of the most dangerous situations that I ever encounter, because 1) 99.9% of the time the wills are insufficient to meet the needs of the family, and 2) the family has a false sense of security because a lawyer has prepared the documents.

What? How can this be?

This can be, because estate planning is a highly specialized field, and yet, many lawyers who spend most of their time practicing family law, personal injury, or some other area of law, feel perfectly comfortable using a standard will form when their clients or friends ask the lawyer if he can "do our wills." The lawyer usually knows enough about estate planning to know that if you have a few million dollars worth of assets, that you should see an estate planning attorney to talk about taxes, but they probably know very little about your state's Estate or Inheritance Tax, probate, or any issues that will be unique to your family. It is not malpractice when a lawyer has an Engagement Agreement saying essentially that the client asked for a will and the lawyer prepared one. 

Just because it is not malpractice, however, that does not make it a workable plan for your family.

The proper way to approach estate planning is to seek a lawyer's counsel so that you can 1) learn about what things would look like for your family if something happened to you, and 2) find out what you can do to avoid any unpleasant scenarios. It is only after these two things have happened that you can tell your lawyer what type of plan you would like to create for your family. If your lawyer is not an estate planning lawyer, he will not be able to tell you the answers to 1 and 2, just like if you are injured in an accident, I will not be able to tell you what issues you face in litigation and how you should proceed. I would only know enough to say, "Yes, you were injured and it looks like so-and-so may be at fault. Let me introduce you to my friend, who is a personal injury attorney."

If you live in Oregon, and your will or other estate planning documents were prepared by a friend or family member who is not an estate planning lawyer, it would be wise of you to contact an estate planning attorney who will review the documents for you and get you answers to those questions in the preceding paragraph.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

FAQ: "What are the chances of an untimely death for me, anyway?"

A common question that I get from prospective clients is what the likelihood of an untimely death is for them. The quick answer to that question is that you are asking the wrong question. Here is the long answer:

In 2007, in the age group of 25-44, there were 121,087 deaths in the United States. Of these, the leading cause was accidents (24%). Next was cancer (14%) and after that was heart disease (12%). The same year, in the age group of 45-64, there were 469,491 deaths in the United States, but the leading cause was cancer (32%). Next was heart disease (21%) and accidents still made the Top 3 at 6%. (You can verify this information at the CDC website.)

As far as your relationship to those numbers goes, an insurance agent could better guide you on that than I could. They would take into account things like family and medical history, occupation, marital status, activities, and numerous other factors. Then they would tell you either that 1) they will insure you at a reasonable rate; 2) they will insure you at a higher rate than someone who is a lesser risk; or 3) they will not insure you.

When I look at those numbers, what I think is, "Holy Cow, that is a lot of people to die at a rather young age." I think, "Wow, why wouldn't one of those people be me?" Statistically, as a white female, I am expected to live to be 80.7. My great-grandmother lived to 102. My grandmother died in her 50s of causes I do not know. My mother died at age 30 in a car accident. Even though I know the statistics about someone like me, my personal experience shows me that sometimes you cannot think about these types of matters as an insurance company does. (For what it is worth, the insurance company thinks I am insurable at a reasonable rate!)

Another reason why the untimely death question is the wrong one: It totally ignores the issue of disability/incapacity, when actually, if the numbers above scared you at all, the numbers for disability are much higher. People are generally 4 times more likely to be prematurely disabled than they are to die prematurely. The implications of that can be huge.

The right question to ask is: If I die or am disabled and/or incapacitated prematurely, what will the impact be on my family, and is it in my power to minimize any of that impact?

That is the question that I want you to bring to your attorney at your first estate planning meeting. "What are the chances?"; "How much does a will cost?"; "How can I check this off my to-do list quickly, cheaply, and easily?" All those questions do not matter if you do not know 1) what things will look like for your family if something happens to you; and 2) whether it is in your power to minimize that impact.

These are questions that only an estate planning attorney can answer for you. I urge you to make today the day you get started on getting a plan in place to protect your family. Picking up the phone to make the first appointment is half the battle.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

What You Don't Know May not Hurt You, but It Will Hurt Your Family

Recently, I've had the experience of working on an estate administration matter, in which the deceased executed a will that is invalid. Before he executed the new, invalid will, he tore up the old properly executed will. What that means is that the person's estate will be distributed according to what the law says about how it should be distributed, and not according to the terms that were in the invalid will or in the valid will before that one. In this case, that is exactly what the deceased wanted to avoid.

The worst part is that the deceased had no idea that the will executed would not be valid. He died thinking he had everything in place. He actually went to great lengths to show whoever would read it, that it was valid. He used all the intelligence and common sense in the world, but it did not comply with the laws of our state. If he had met with an attorney, he would have been alerted to the invalidity of the will.

What does this mean for you?

It means that if your number one goal is to take care of your family, you had better get an estate planning lawyer to review your situation with you and help you to properly execute a valid estate plan. If you execute an invalid will, you may never find out - but your family will.

The care of your kids could be compromised, the value of your assets could be diminished, and an inheritance could go to the wrong person. Your kids could receive their inheritance at age 18. Many scenarios that you probably wish to avoid could happen.

Get your situation reviewed today and start working with a lawyer who will be there for your family when you cannot be.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

 

3 Major Guidelines for Making Sure That Your Plan Works.

Just about every day, I read a post on one of my estate planning listserves, in which an attorney is searching for the will of a deceased person.  I want to make sure that no one ever has to search for your will and that your plan will always work for your family, so here are 3 major guidelines for making sure that your estate plan is going to work:

1)  Think realistically about the price.  Attorneys typically charge $200-400 per hour.  We meet for 2 hours with our clients before we even get started drafting their plan.  How could I charge $500?  By filling your name in the blanks and hitting print.  By asking, "What do you want me to do?" and then saying, "OK, sure!" when you say, "I just need a simple will."  But that would not be lawyering.  Lawyering would be getting the information that I need from you, then showing you what things would look like for you and your family if you died or were incapacitated with your current plan in place.  Lawyering would be pointing out any areas of concern and offering alternative planning solutions to avoid any unpleasant scenarios.  After you have that professional advice, you can have it your way.

2)  Find out what will most likely happen if you are incapacitated and when you die.  Find out what the process looks like, and if there are any scenarios that you would rather avoid.  Through proper planning, you can avoid just about any unpleasant scenario, such as probate (a court process dealing with the deceased's assets) and conservatorship proceedings (a court process dealing with an incapacitated person's assets).  The key is in starting from a place of getting an education about your situation, then making a decision from there. 

3)  Make sure you work with an attorney who has a plan for ongoing communication and follow-up with you and your family throughout the years.  This is the main key to not having your name pop up on the listserve after you die.  My office accomplishes this in three ways.  First, we do not charge fees for ongoing communication.  Clients can always call us and know they are not going to get a surprise bill in the mail.  Second, we do a free plan review for our clients every three years.  They always know what their family situation looks like.  Last, we communicate with everyone involved in the client's plan, so they know how to contact us if something happens to our client. 

If you follow those three guidelines, you will never end up on my listserve.  Your family will be very, very grateful for that.

You might be thinking to yourself, "That's great, but I don't have $1500-2000 or $3000-6000.  All I've got is $500."  To that, I say ask your attorney to set up a payment plan for you.  You can't afford not to do necessary planning.  Estate Planning is something that every person needs to do, especially if you have kids, and especially if you own any assets at all (and yes, you own your house even if you have a mortgage on it).

I fear that people do not know what they are getting when they buy a $500 estate plan.  What they are getting is papers - papers that may not work, may not be found, or may not be helpful if the client is incapacitated (which is far likelier to happen than a premature death).  And these papers are supposed to protect your family.  They are supposed to ensure that your family has easy access to what they need to take care of themselves.  They are supposed to ensure that your family does not have to spends thousands of dollars and several months in court trying to get everything sorted out.  What you stand to lose if your plan does not work is the security of your family.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

What You Can Learn from My Daughter's Dentist (or, Pulling Teeth Is Not Your Only Option)

My youngest daughter, Talula, is one of those lucky kids who had never even tasted a cookie before she got her first cavity.  She was breastfed and only had whole foods for the first few years of her life, but she had four decayed teeth by the time she was 1 1/2 years old.  I could not tell that they were cavities at first (there were white spots on her top four front teeth), so I consulted Google and I consulted friends.  After all, you are not supposed to have to take your child to see a dentist until they are 3 or so.  While I took my time figuring things out, one of her teeth started actually falling apart.  I called a few dentists (finally, duh), and the consensus was pretty much that at least the worst tooth would need to be pulled.  I took her to a dentist (that I found on a county list) who held my screaming daughter down and poked around in her mouth for less than a minute before she concluded that, yes, we would need to have the tooth pulled.  The "bedside manner" was one that left me feeling stupid and inept.

I dazedly scheduled a date for the tooth extraction with the receptionist and listened as she gave me a prescription for antibiotics and warned me about the possibility of abscess.  My daughter could apparently die if she got one.  She handed me a liability waiver that I'd need to sign before the appointment.  Apparently my daughter could die from the drug cocktail she'd be getting.

I broke down crying in the parking lot.  I felt like a failure as a mother, for one thing, and for another thing, I was really confused by what had just happened and I did not feel at peace with any of it at all.

I turned to the only people who would understand why I was so distressed about teeth - the women in my moms group.  One of the moms told me that her child had cavities as well, and that her dentist was really great and that I should go to see him and at least get a second opinion.  This was when I lived in Southern Oregon, and I drove 3 hours to Portland to see him. 

This experience was entirely different and I left feeling empowered.  The dentist spent a lot of time talking with Lu and me.  (We came in three days in a row for a couple of hours each time, just so Lu could get comfortable with the place.)  She got to play with his toys and feed his hamsters and watch Dora.  I was able to tell him my worries - that my sensitive mama's girl would be traumatized and that her adult teeth would be affected by such an early extraction.  I was able to communicate my goals - to stop further decay and to take a route that would cause the least trauma possible. 

After hearing my worries and goals, the dentist was able to give me a variety of *options* that I could decide on.  I actually got to hear the pros and cons of each option and make the decision that was best for my daughter.  We decided to put silver bands around each of the affected teeth, which would seal them off to further decay.  It was not the quickest option.  It was not the easiest option.  It was not the cheapest option.  (It was not the most expensive option, either.  I could have gone with porcelain for aesthetic purposes.)  But it was the best option for my daughter at that time, and I felt good about it.  This was an option I could live with.  The dentist did not make me feel like this was my fault or that I did not know what I was doing.

I asked the dentist why I had not been given these options at the other place.  He said that it is just incredibly common for dentists to pull teeth like this.  It is easy, it is profitable for the dentist, and it is affordable for the parent.  It is just the way things are done.  This new dentist actually wrote the book on how to run a dentistry practice for kids.  He knows what parents want and need for their kids.

And this brings me to YOU.  You are reading this, probably because you are interested in estate planning.  When you go to see an attorney, I do not want you to feel how I did at that first dentist.  I want you to be able to present your situation, communicate your fears and goals, and receive *options* that you can weigh and choose from in order to reach your goals.  You may think you need a will or you need a trust, but what you need is to know your options.

I want you to call an attorney and say, "I need to know my options with regard to estate planning."  And I would like you to meet with your attorney and tell her or him about your fears and goals.  And then I would like you to ask what your options are.  If your attorney shows you what your situation looks like (based on the family and financial information you have given) and gives you different options for achieving your goals, then you will be in great shape.

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

Your Financial Big Picture: Why Estate Planning is an investment in your family's future

The best financial advisors out there understand the importance of Estate Planning as an essential piece of every family's financial big picture.  Just about every goal you have for your family can be destroyed if you are incapacitated (even for a short period of time) or die prematurely.  To illustrate this, let us go through some of the main financial objectives that families have, and discuss Estate Planning's role in achieving each goal.

1.  Survive & Thrive

Surviving & Thriving is the first goal of all families, financially speaking.  When I say "survive," I mean paying the essentials: rent/mortgage, utilities, food, clothing, car expenses, childcare expenses, etc.  When I say "thriving," I mean the so-called non-essentials that really make life worth living: experiences (like going to OMSI or the pumpkin patch with the kids), vacations, enjoyable activities (like yoga class or meeting your friends for coffee), enjoyable items (like non-essential clothes) and the like.  Most families spend the majority of their income on these Survive & Thrive expenses. 

How Estate Planning protects this objective:  If you or your spouse are incapacitated or die prematurely, your goal of surviving and thriving can be greatly threatened without proper planning in place.  Your family may be unable to access your assets, or income may be lost.  There must be a plan to replace income that is lost or delayed, distribute assets in a way that is cost-effective and efficient, and protect children and assets so that these goals can still be achieved.  Surviving & thriving is the number one reason that Estate Planning is so important for parents.

2.  Eliminating Debt

Eliminating debt is usually the second most important goal for families.  Many parents get caught up in keeping up with the Joneses and the consumerism that is often affiliated with becoming new parents.  Sometimes a bad situation like job loss, medical emergencies, incapacity, divorce, or death lead to huge debts.  Even if you have not gotten into debt these ways, the majority of parents have mortgage debt and student loan debt that they are actively paying off.

How Estate Planning protects this objective:  If you or your spouse are incapacitated without a plan in place, it is more than likely that you will get behind on debt payments (as well as racking up new debt paying medical bills and trying to get your legal situation sorted out), which will set you back in achieving your goals.  It may even send you into bankruptcy.  If you die prematurely without a plan in place, it is likely that your estate will incur a lot of debt wrapping things up, and that much of your estate will be eaten up with repaying debt.  You need to get a plan in place that will repay debt while leaving enough to care for your family.  Your plan should be one that makes things as easy as possible for your family, financially and time-wise.

3.  Prepare Kids for Adulthood

Beyond the basics of Surviving & Thriving and Eliminating Debt, all parents want to make sure that they prepare their kids for adulthood.  This includes providing them with the educational and financial resources they need to succeed in this world, as well as the personal loving guidance that only a parent can give.  It also includes psychological and mental well-being, which can be greatly affected by a parent's incapacity or death.

How Estate Planning protects this objective:  Sadly, the majority of parents do not have a financial plan to help their kids to succeed as adults.  Even parents who have begun to save for college usually have not considered how that plan will be affected if a parent is incapacitated or dies prematurely.  Every parent needs to have an estate plan that allows them to continue to reach for the goal of helping their child to succeed in life.  The plan should also include loving guidance for the kids and their potential guardians and trustees, outlining their financial goals and sharing their wisdom and values.

4.  Investing in Your Own Future

Everyone knows how important it is to begin saving for retirement as early as possible.  Most working people have dreams and plans for what they are going to do when they are able to retire.  What no one wants to be doing at retirement age is struggling financially.  We all want to live comfortably, maybe travel and spend time with the grandkids.  Some people have big plans, like my parents, who decided to become famers and vintners.

How Estate Planning protects this objective:  If you or your spouse are incapacitated without a plan in place, this can greatly set back your retirement goals, because income is lost and debt is incurred (medically and legally).  If one spouse dies prematurely, and without a plan in place, the surviving spouse's entire financial future can be greatly altered.  It is important to get a plan in place that will allow you to continue to work toward your retirement goals (and those of your spouse) if you are incapacitated or die prematurely.

So now you can see that just about every goal you have for your family can be destroyed if you or your spouse are incapacitated (even for a short period of time) or die prematurely.  This outcome is not acceptable to loving and responsible parents.  It is essential to get a plan in place that will protect your goals for your family. 

To your family's health & prosperity,

 

P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit http://candiceaistonlaw.com/.

5 Priceless Presents You Should Give Your Family

The end of the year is a time when I think a lot about the state of my life, family, and career.  I like to reflect on how the year went, whether goals were accomplished, what my goals are for the coming year, and how those goals match up with my values.  I try to think about what my overall purpose is and realign with that.  It is so easy to get caught up in the small details in life, that sometimes the big picture is lost.  I like to reassess each year and make sure I am always keeping my eye on what is important.  

This year as I reflect, I find that my life, family, and career goals are really very interwined.  My family goal is to be a loving and responsible parent, and it turns out that my career goal is to help loving and responsible parents as well.  My life's work happens to be helping loving parents to create estate plans that protect their families if something tragic happens.  Estate Planning is part of being a loving and responsible parent, but it is just one piece of that bigger goal.

If you are reading this, you probably feel similarly to the way that I do about parenting.  It is serious business, and it is our responsibility to provide the best care possible for our kids and to make sure they are protected and that they have every opportunity to succeed in life.  If we can toast to that, I want to share with you 5 Priceless Presents that you should give to your family.  If you have not given these to your family yet, there is no time like the New Year to get started.  Make it a resolution, a Responsible Parent's Manifesto, if you want to call it that.

1. A Comprehensive Estate Plan

A Comprehensive Estate Plan is the first thing that any parent needs to get in place.  Why is this first?  Because you can have all of the things listed below, but put your family through hell trying to access it and pay all of the fees and taxes associated with your death or incapacity if something happens to you.  Without meeting with an attorney and discussing your particular situation, you have no idea what type of situation your family faces if something happens.  You need a plan that dictates the care of your kids (both short and long-term) and the handling of your assets in a way that saves your family the most time, money, and heartbreak. So, if you are a parent without an estate plan, this is your first step.  Call an estate planning attorney today. 

2. Life Insurance

Life insurance is an essential part of most parents' estate plans.  Most parents do not have enough in savings or assets to allow their families to live a similar lifestyle if a parent died.  Life insurance replaces lost income and it can be used to pay for childcare.  If you do not have life insurance, make it a priority in 2011 to get insured.  The longer you wait, the more difficult and expensive getting life insurance will be.  Keep in mind that life insurance makes your estate worth more, so you should consult your estate planning attorney before buying it.

3. An Emergency Savings Account

Every parent should have an emergency savings account.  This economy has taught us that little is certain in life.  It is not certain that you will have your job next month.  It is not certain that your business will be around next month.  It is not certain that your health will be good next month.  It is extremely important to plan for a situation where you may not have income for 6-12 months.  Otherwise, you could lose everything you have worked so hard to gain.  People who lose their jobs and do not have emergency savings often have to cash in retirement accounts with severe penalties and have their homes foreclosed upon.  It really can pay to sacrifice in the short-term to have that security long-term.

4. A Plan for Retirement

Retirement takes decades to plan for, and many parents do not know what they are doing when it comes to saving for it.  Seeing an experienced financial advisor is such a good idea when it comes to retirement.  Retirement is the biggest event for which you will ever plan.  An advisor can project what you should be putting aside based on your income, expenses, projected age of retirement, and rate of inflation.  They can also describe to you the various types of accounts and how each type can benefit you.  They all involve different tax rules and have different rules for distribution.  Your company's retirement plan or pension may not be enough to support you during retirement.

5. A Plan for College

You would think that planning for college would be at the top of this list if you are a loving parent, right?  Wrong.  You first take the steps to protect your family from the worst situations, then you plan for the time when you can no longer work, and then you plan for college.  The reason for this is that if there is no college fund, your child can apply for loans and grants and get a job during college.  It is not ideal, but it is a heck of a lot more ideal than your grown child having to support you in your old age because you do not have the means to support yourself.  It is a lot more ideal than your child flunking out of high school because when dad died without life insurance, mom had to get two jobs to make ends meet and there was no one to make sure the child was doing what he was supposed to be doing.  But once you have taken care of the other things, providing a college education for your child can help your family for generations.  Without having to pay back student loans, your child can start saving, planning, and living prosperously a lot earlier on than you were able to do so.

Happy Holidays & a toast to your family's health & prosperity,

 
P.S.  Want to get started on the most important planning you'll ever do for your family?  Give our office a call at (503) 235-5150 to get started.  You'll be glad you did.

___

Want to use this article in your newsletter or on your blog or website?

 

You can!  Just please be sure to use this complete blurb with it:

 

Candice N. Aiston is an Estate Planning Attorney for families in the Portland, Oregon area.  She helps loving parents to prepare their families for a lifetime of security, prosperity, and guidance.  If you would like to receive her free report, "The 9 Common Planning Mistakes Parents Make," please visit
http://candiceaistonlaw.com/.

5 Steps to Ensure Your Family Is Cared for If You Are Incapacitated or Seriously Injured

A few months ago, an acquaintance of mine was hit by a car while riding his bicycle.  Although this father of three young children did ultimately recover, he was incapacitated for 4 or 5 months.  In fact, his recovery is somewhat of a miracle, as doctors initially thought his brain damage was too severe for him to even emerge from the coma he was in. 

This kind of accident can happen to anyone, and if you have loved ones who count on you to care for them, it is essential that you get a plan in place that addresses incapacity.  "Incapacity" means that you are incapable of caring for your family, making financial decisions, and making health care decisions.

Here are 5 steps that you can take to ensure that your family is cared for if you are incapacited or seriously injured:

1. Get a Guardian Plan in place if you have children.

If you have children, it is absolutely necessary for you to get a Guardian Plan in place.  A Guardian Plan names long-term guardians who would care for your kids if you died or were incapacitated for more than a few days; names short-term guardians who would care for your kids immediately so that they would not have to experience foster care; eliminates specific people from being considered for guardianship; communicates the entire plan with everyone involved so that as soon as there is an emergency, everyone knows what to do; outlines your emergency plan for caregivers; and documents matters of importance that your guardians should know. You can purchase a Guardian Plan packet on my website. 

2. Create a Durable Power of Attorney document to enable your spouse or other agent to carry out your financial matters.

You may think that your spouse will automatically be able to deal with your finances and assets if you are incapacitated, but this may not be the case.  If your spouse does not have a Durable Power of Attorney, he or she may have to petition a court to declare you incapacitated and name him or her as your agent.  This can be very costly and very time-consuming, not to mention extremely stressful under such circumstances.  It is a good idea to work with a lawyer instead of using a form off the internet, because most free forms overlook many important areas of your financial life.  To illustrate, most free forms are 3 to 4 pages long, while most of the documents our firm prepares are around 30 pages long.

3.  Outline your health care wishes and name a health care representative.

Every time I talk about health care planning, I start by saying, "Remember Terri Schiavo?"  Terri Schiavo was the Florida woman whose parents and spouse fought for 13 years over her health care, because she had not executed a health care directive.  On each side were very strong beliefs.  The media, the various public interest groups, the Governor, and the Supreme Court all got involved.  This was a huge hullabaloo, but do not make the mistake of thinking that these things could not happen to you.  Do not make the assumption that your family knows your wishes.  Legally name a representative and outline your wishes.  It is a good idea to work with an attorney on this, because the laws on this are very state-specific.

4. Make sure that you have provided resources in the event of your incapacity.

If you are incapacitated, how will your family survive financially?  You have probably thought about life insurance, in case you die prematurely, but have you thought about incapacity as well?  Do an honest assessment of what your family's expenses are monthly.  Find out how much Social Security your family would be entitled to receive.  Find out how much your work disability insurance would pay.  If those payments are not adding up to what the bills would be, consider buying a private disability insurance policy.  It is also a really good idea to start a savings account that holds enough money to cover 6 months of expenses.  It can take a while to start receiving Social Security and Disability payments, and you do not want your family to fall behind on bills.

5. Communicate your plan with your family and everyone involved.

What is a plan if no one knows about it?  It is extremely important that you discuss your plan with your family and with anyone involved in your plan.  Everyone needs to know that  you have executed a plan to care for them, and what that plan is.

I hope that this information is helpful for you.  I truly believe the motto, "Expect the best; prepare for the worst."  I believe that we can live our happiest lives when we've considered the worst and done everything in our power to plan for it.

To your family's health & prosperity,

 

P.S. Have you planned for your incapacity?  We include extensive incapacity planning in all of our estate plans.  Ready to get started?  Call my office at (503) 235-5150 or email me at [email protected].

A Gift of Gratitude to the Portland Parent Community

 
Dear Parents,

This holiday season, I am feeling so grateful for a wonderful year, a wonderful family, and a wonderful community.  I wanted to do something to express my gratitude to you, the community that allows me to do business in a way that reflects my deepest values.

I get a lot of calls during the holiday season because families are traveling and parents realize that they don’t have any plans in place if something happens to them.  It’s usually too late for me to be of any immediate help by the time they call, and by the time the vacation is over, everyone falls comfortably back into their lives, pushing estate planning out of their minds.  The children are left unprotected, and the parents don’t truly have peace of mind.

Well, I would like you to be able to give your kids the gift of security this holiday season, and I’d like you to be able to give yourself the gift of peace of mind.

That’s why I’m giving away my KidsCare Plan Packet to anyone in Oregon who wants it.

The KidsCare Plan Packet helps you to:

-Legally name long-term guardians for your kids;

-Legally document short-term guardians so the kids don’t have to experience foster care;

-Exclude any unacceptable choices from being considered as guardian;

-Communicate with your guardian choices to let them know the plan;

-Inform caregivers who to call in an emergency; and

-Tell guardians exactly how you’d want your kids raised.

It’s my gift to you, and there’s no obligation attached.  Simply click on the link and follow the instructions.

Happy Holidays and a toast to your family’s health & prosperity,

 
 Candice N. Aiston

[email protected]

Portland, Oregon Estate Planning Lawyer Discusses Protecting Your Kids Should Something Happen to You

One of my greatest passions as an Portland, Oregon estate planning lawyer is educating parents about how important it is to prepare for their untimely death. Not a fun topic I realize. But it just takes one sad circumstance of parents passing away and leaving the kids to deal with squabbling relatives to understand how critical this is for their well-being.

The possibility of leaving this world can be difficult to accept and many people choose to not think about it. Unfortunately, this fear often prevents people from taking the proper precautions they need to take.

I speak at various groups around Portland and usually deliver this message in an upbeat and cheerful way so people can see that preparing their estate plan for their family is a positive and joyful experience.  But for today’s post I’m going to give you the real-deal about Portland, Oregon estate planning. Blunt, and to the point.

Essentially, it’s critical for everyone to understand the importance of estate planning for those we love – especially our children. As you can imagine, children are incredibly vulnerable if you die while they are still minors due to the simple fact that they are unable to take care of themselves.

Here are a few cold-hard facts about what could happen if you passed away suddenly without a will or trust in place.

1.      A judge that doesn’t know you or your children will decide who raises them.

If something happens to you, who is going to step up?  Is it the person that you want to raise your children?  If you don’t have an estate plan in place, will your relatives squabble over who is or isn’t responsible for raising them? Do you really want to put your children through that?

2.      The person who the judge picks to raise your kids will also be responsible for their financial well-being.

If something happens to you, all of your assets will be handed to the guardian (that you didn’t select) to be managed for them. The obvious fear is that this person could possibly use the funds for something other than the care of your children.  However, there are many other things to consider.  Does the person that the judge picked have the same financial values that you do?  For example, you may feel strongly that you would like your children to attend high-end sports clinics to help develop their athletic skills.  But, will the guardian see the value in this?  What if they think spending money on what you would have wanted is a total waste?  The potential for trouble is endless.

In addition to knowing who will be handling your estate, you probably have no idea of the true amount of money you'll be leaving behind to take care of your kids!  Most families who own a home and have retirement and life insurance accounts will have to worry about paying estate taxes, and that rate will be 55%, starting in 2011.  Additionally, without a plan in place, your estate could be subjected to thousands of dollars in probate fees.  Without a plan in place, you just can't anticipate all of the costs and what those costs eventually leave with your children.

3.      All of the money left from your estate (assuming there IS any) may go to your child in a lump sum when he is 18 years old.

Think about this one.  What would you have done if you had been handed a bunch of money at that time in your life?  Scary thought, huh?  The hard truth is that most 18 year olds are simply not mature enough to properly handle finances at that level.  I have heard story after story of kids who should have been fine financially, but weren’t because they decided to buy cars and clothes instead of investing in their future by going to college. So sad!

And if your child has special needs, you may be screwing him or her out of important government benefits if you don't plan properly.  Then your child would have to use that inheritance to pay for insurance, medical bills, and every other expense until the funds are consumed.  What happens after that?

So, there you have it - some cold, hard questions for you to ponder. My hope for those of you reading this is that you have already taken care of naming guardians for your children and put your estate plan in place and that you are keeping it up-to-date as the circumstances of your life change.  But, if you are not, I would be happy to offer you a free Family Treasures Information Session to start you on the path. 

Don’t worry if you aren’t sure who you would pick as guardian.  I’ll help you with that.

Don’t worry if you think you can’t afford planning.  I’ll work with you on that.

Don’t put this off because you don’t have the time.  Think about how your kids will spend their time if something happens to you and you haven’t made these decisions for them.

Call our Portland, Oregon estate planning office today and make an appointment for a free Family Treasures Information Session and you’ll experience a peace of mind that you didn’t even realize you were lacking.

To your family's health & prosperity,