Idaho Law Blog
By Lane V. Erickson, Idaho Estate Planning Attorney
During my 20 years of experience in helping my clients complete their estate planning I often have unusual and interesting conversations with them. Several weeks ago I decided to ask my clients one simple question. The answers from the question that I asked is what creates the content for this blog today. The question that I asked my clients was: “What is the single best estate planning tip you ever received?” In order of popularity or frequency, here are the 4 best estate planning tips my clients say they ever received from other people.
PUT IT IN WRITING
The most often stated tip that individuals told me they received from others about estate planning was to put it in writing. It’s interesting how many of my clients come to get their estate planning done because of the mess and problems they have seen arise in the lives of their family or friends when a person died without a written estate plan. When this happens, my clients tell me that many of the problems could have been avoided if there had simply been a written plan.
A basic estate plan in Idaho consists of a written last will and testament, a durable power of attorney, a living will and a health care power of attorney. Some individuals will also add one of a variety of trusts to their estate planning including a Minor’s trust for young children, or a trust for an individual who has a disability or special needs, or a trust for purposes of assisting with Medicaid planning. Regardless of what documents you decide to have as a part of your estate planning, it should be in writing. If you die without a written estate plan Idaho’s laws of intestacy will create a default plan for you that will likely be different from what you would have chosen for yourself.
KEEP YOUR LIFE INSURANCE UP TO DATE
The second most popular answer to my question about the best tips my clients have received about estate planning is to keep life insurance up-to-date. This is a two-fold process. First of all it’s important to make sure that you have adequate life insurance for your current needs in life. If you are the breadwinner for the family, are paying a mortgage and/or you have small children and a spouse who stays home your needs for life insurance may be greater than it would be for an older retired individual with no debts and who has already accumulated a lifetime worth of savings. For this reason, you should regularly review your circumstances in life and What needs for life insurance you may have.
Additionally, having life insurance alone is not enough. It’s important for you to make sure that you have filled out your beneficiary forms correctly. If you have small children you likely will not be leaving the money directly to those children. Alternatively, you could leave the life insurance proceeds to a trust established for your young children so that the monies will be protected and use for them while they are young and can then be distributed to them when they get older.
PRE-PAY YOUR FUNERAL EXPENSES
The next most popular response to my question is to prepay your funeral expenses. More and more funeral homes provide this service. The benefits of this service are that you get to personalize your funeral program. Additionally, you get to eliminate the stress and worry of dealing with or planning or paying for your funeral for your family or your loved ones.
In addition to reducing stress for your family another benefit is that most prepaid funeral plans are transferable. This means if you move your insurance plan can be taken from the funeral home where you purchased it to a different Funeral Home who also honors prepaid funeral plans. The reason for this is because the prepaid plan is actually a small insurance policy that you purchase that is transferable.
GIVE IT AWAY WHILE YOU ARE ALIVE
The fourth most popular response my clients gave me was that they should give their property away while they are alive. Consider for a moment how it makes you feel when you give a gift to somebody for their birthday or Christmas or some other special occasion. Now suppose that you are able to do a similar thing with a portion of your estate.
This most likely won’t occur until later in your life. I had one particular individual that I know who made the statement that he spent his entire life accumulating things until he got old and then realized he didn’t need them. Then he said he spent a good deal of time in his elderly years giving it all away. He did say that he received a good deal of satisfaction in giving these items of property to his loved ones.
ENLIST AN ESTATE PLANNING ATTORNEY TO HELP YOU
When it comes to estate planning or probate you should never try to do it alone. If you have questions for yourself or for your family and loved ones, we can help. Call us toll free at 877-232-6101 or 208-232-6101 for a consultation with Lane Erickson and the Racine Olson team of Estate Planning attorneys in Idaho. You can also email Lane Erickson directly at lve@racinelaw.net. We will answer your questions and will help you solve your Idaho Estate Planning problems.