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Have you ever seen an estate plan fall apart where a sibling takes more than their fair share or key assets aren’t covered? These situations happen more often than you’d think. That’s why today I’m answering the top questions we get from clients about estate planning, probate, and protecting your assets so you can avoid costly mistakes. Let’s dive in. One of the most common concerns we hear is

My brother took all the money from my dad’s bank account after he passed away. What can I do? This scenario happens far too often and it leaves families feeling frustrated and betrayed. In some cases, this is outright theft. However, more often the parent may have named that sibling as a joint tenant or a pay on death or POD beneficiary. When this happens,

The money legally belongs to the named individual the moment the account holder passes away. Even if mom or dad express verbally that the money should be shared, verbal wishes cannot override legal designations. Unless you can prove fraud or coercion, the funds are legally theirs. This situation underscores the importance of clear and deliberate estate planning

to avoid these misunderstandings. Taking proactive steps to align legal designations with verbal wishes can save families from painful disputes. For example, families can review and update account designations periodically, ensuring that they match the intent expressed in estate planning documents. Establishing regular communication among family members about these decisions

can also help mitigate future misunderstandings. These steps, combined with professional legal guidance, create a much smoother process for everyone involved. Understanding the difference between a pay-on-death beneficiary and a last will and testament is crucial for avoiding disputes like this. A POD designation allows specific accounts to bypass probate and transfer assets directly to the named beneficiary.

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This can be a useful tool, but creates potential conflicts if the designation doesn’t align with the will. For example, a parent may state in their will that a bank account should be divided equally among their children. However, if they name one child as the POD beneficiary or joint owner, that child gets everything and the will has no authority over that account. To illustrate.

Imagine a family where a mother named her youngest son as a joint owner on a savings account, intending it as a convenience for him to manage her finances while she was alive. However, her will stated that all her assets should be split evenly amongst her three children. Now, when she passed away, the youngest son claimed the entire account, causing resentment and legal disputes.

This scenario highlights why it’s essential to align all your estate planning tools, your will, your trust, your POD designations, to ensure your wishes are carried out. Failing to coordinate these elements often leads to unintended outcomes that create family strife. This brings us to a broader question. Does everyone need a trust? The answer is no, but trust can be

and incredibly powerful estate planning tool in the right situations. For those with significant savings, a home, or a desire to avoid probing, a revocable living trust can streamline the transfer of assets and protect beneficiaries. Trusts are particularly valuable for parents of young children, allowing them to manage when and how inheritances are distributed. On the other hand, if you’re living paycheck to paycheck,

don’t own property and have minimal savings, a trust may not be necessary. However, even in those cases, having a will, powers of attorney, and a health care directive is vital. Estate planning is not a one-size-fits-all process, but having at least the basics in place can provide peace of mind and some security. Many clients also ask, why does probate take so long? Well, the role of probate

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is to approve the transfer of assets to beneficiaries. It is inherently a time-consuming process because it’s court-supervised and must follow specific statutory timelines. For example, creditors often have months to file claims. In Ohio, it’s six months. And selling real estate or gathering documentation can cause further delays.

In the best case scenario, probate takes about 6 to 9 months, but it’s not uncommon for it to stretch to 12 to 24 months or longer. Additionally, unexpected complications such as contested wills, lost paperwork, or what we’re seeing a lot these days, uncooperative errors, can extend the process even further. If you want to spare your family from this lengthy process,

Setting up a living trust is an excellent way to ensure your assets transfer efficiently and without court involvement. Another popular tool people ask about is the transfer on death or TOD deed for real estate. This allows property to pass directly to a named beneficiary without going through probate. Building on our earlier discussion of probate delays, the TOD deed is appealing.

because it offers a faster, more streamlined process for transferring property. While this can work well in simple situations, there are potential complications. For example, if the name beneficiary predeceases you, the property may go to someone unintended, like their spouse or children. If you have multiple beneficiaries or more complex wishes, a revocable living trust might offer better control and clarity.

A trust can also address contingencies, such as naming alternate beneficiaries, which can prevent unintended outcomes and ensure your wishes are honored. So when is the right time to start an estate plan? The simple answer is now. Whether you’re in your 20s, raising young children, or nearing retirement, it’s never too early to plan. Estate planning isn’t just about what happens after you die.

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It’s about protecting yourself during your lifetime. For example, if you become incapacitated, who will handle your finances or make medical decisions for you? A comprehensive estate plan answers these questions and evolves with you as your life circumstances change. Planning ahead spares your family unnecessary stress and costs. Starting sooner rather than later allows you to update and refine your plan over time.

as your family grows, your assets change, or your priorities shift. Just remember, estate planning is a process, not an event. Another question we often hear is, why shouldn’t I just give my house to my kids while I’m alive? Well, it might seem like a simple way to avoid probate. Doing so can create significant tax consequences. If you transfer the house to your children during your lifetime,

they inherit your original purchase price or basis. This means they could face large capital gains taxes if they sell the home. However, if they inherit the house after your death, they receive a stepped up basis, which adjusts the value to the property’s worth at the time of your passing, potentially eliminating substantial capital gains taxes.

Holding onto the property and letting it transfer through your estate is often the wiser choice. Additionally, gifting the house during your lifetime could leave you vulnerable if your children face lawsuits or divorces or financial instability. For instance, imagine you gift your home to your child and shortly after they face a lawsuit or bankruptcy. In such cases, the house could be seized as a part of their assets.

leaving you with no recourse. Similarly, if your child goes through a divorce, the property could become entangled in the settlement, which may not align with your intentions. These risks highlight why careful estate planning is essential to protect both your property and your peace of mind. For young parents, estate planning is particularly critical. It’s about more than just finances. It’s about ensuring your children are cared for.

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if something happens to you. Naming a guardian is one of the most important decisions you can make. Additionally, appointing a trustee to manage your children’s inheritance ensures that funds are used responsibly for their health, education, and well-being. A comprehensive plan gives you peace of mind, knowing your children will be taken care of no matter what.

It’s equally important to consider naming alternate guardians or trustees in case your primary choices are unable to serve. For example, the individuals you initially select might face unforeseen challenges like health issues, relocation, or personal circumstances that make them unable to fulfill their roles. By identifying backup options, you ensure there’s always someone trustworthy and capable to step in. For instance,

Setting up a trust with specific guidelines can prevent misuse of funds while ensuring they are available for essential needs like tuition or medical care. Taking these steps early in your parenting journey can make all the difference in a crisis. But what happens if a sibling is stealing items from a deceased parent’s estate? Unfortunately, this is an all too common issue. Legally, once a parent passes away,

Their assets should remain untouched until the executor or trustee has been granted authority to distribute them. If someone is taking items prematurely, it’s important to document what’s missing and involve the executor or successor trustee immediately. In some cases, you may need to involve the probate court to resolve disputes. A clearly written estate plan can help prevent these situations.

by providing explicit instructions. Creating a detailed inventory of assets and specifying how personal items should be distributed can avoid misunderstandings and prevent family conflicts. For life partners who aren’t legally married, estate planning is even more crucial. Without proper documents, your partner may not inherit anything or have a say in your care if you become incapacitated.

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A will or trust ensures your partner receives the assets you want them to have and powers of attorney allow them to make financial and medical decisions on your behalf. Without these safeguards, your family, not your partner, will typically have legal authority, which may not reflect your wishes. For example, if you own property together, a lack of planning could result in your partner losing their home.

Taking the time to create an estate plan tailored to your unique relationship protects both partners and ensures your intentions are honored. Estate planning is about protecting what matters most, your loved ones, your wishes, and your legacy. If you found this video helpful, please like, subscribe, and share it with someone who could benefit. As we wrap up, it’s also essential to think about how Medicaid planning fits into your broader estate strategy.

One critical aspect is understanding Medicaid’s five-year look-back period and how it can impact eligibility for long-term care benefits. This often overlooked rule can help protect your family’s assets while ensuring access to vital care. In our next video, we’ll break down the five-year look-back, explain how it works, and share strategies to navigate it effectively. You don’t want to miss it.