Estate Planning
David Postic
Top 7 Reasons People Delay Making An Estate Plan

According to a survey conducted earlier in 2019, only 40% of American adults have a Will or Trust. That percentage drops dramatically for younger age groups. For example, only 19% of people ages 18-34 have a Will or Trust.

So what’s the big deal?

As Baby Boomers pass away, experts predict that over $68 trillion (with a ‘trill’) in wealth will be transferred over the next 25 years. And the estate planning of those Boomers will control where all that wealth goes.

Despite the hugeness of those numbers and the importance of estate planning, it is easy to procrastinate when it comes to actually setting your affairs in order. Here are the top 7 reasons (in no particular order) people give us to explain why they delay estate planning:

1. “I’m too young.”

First of all, you are never too young to have an estate plan. I wrote a series of articles specifically geared toward estate planning for Millennials. (Or you can substitute “Millennials” for “Gen Z” or whatever weird thing we are on now.)

Whenever young people say “I don’t have enough assets for an estate plan” or “I’m going to wait until I have a family,” what they are really saying is, “I don’t plan on going anywhere anytime soon.” Because young people don’t die, they live forever.

Top 7 Reasons People Delay Making An Estate Plan
Estate Planning, Taxes
David Postic
Everything You Wanted To Know About Estate ...

The Internal Revenue Service (IRS) recently announced that the estate and gift tax exemption is increasing in 2024 to $13.61 million per person, up from $12.92 million in 2023.

The IRS also confirmed that the annual gift exclusion amount is increasing from $17,000 per person in 2023 to $18,000 per person in 2024.

Read more: IRS Rev. Proc. 2023-34

Okay great, you might be saying to yourself. But what does that mean, and why does it matter?

Great questions.

There are a lot of misconceptions about estate taxes and gift taxes — often referred to as “death taxes.” What they are, who has to pay them, how to avoid them.

This article is my attempt to demystify the topic for you and to help you figure out how these tax changes could affect your estate plan.

Everything You Wanted To Know About Estate & Gift Taxes
Estate Planning
David Postic
8 Questions to Prepare Your Estate Plan for 2024

2023 is almost over.

The end of the year is a time for people to gather together with family and friends, to look back on the past 365 days, and to look forward to better, happier things.

People usually don’t want to think about things like—oh, I don’t know—their mortality. Death. Stuff like that.

However, it is crucial to regularly review and, if needed, update your estate plan. The end of the year is the perfect time to do that.

So before you completely wipe 2023 from your memory, ask yourself these 8 questions to make sure your estate plan is ready for whatever 2024 throws at you.

1. Will the right people get my “stuff”?

First, make sure your will or trust correctly states who will inherit your assets.

You should then review your pay-on-death (POD) beneficiaries on insurance policies, retirement accounts, and other assets.

Do they match the beneficiaries in your will or trust?

Related post: 7 Mistakes to Avoid When Naming Beneficiaries

Many people incorrectly believe that a legal document such as a will or a trust controls what happens to all of their assets.

However, beneficiary designations can override those documents.

For example: Your trust may say that your son John will receive your entire estate and that you are disinheriting your other son, David.

But if your insurance policy lists David as beneficiary, he will still get part of your estate.

You should therefore coordinate your beneficiary designations with your will or trust to make sure all of your assets are distributed the way you want.

8 Questions to Prepare Your Estate Plan for 2024
Estate Planning
David Postic
What's the Difference Between a Will and a ...

Lawyers love to be confusing.

We use insane-sounding words from Latin and Greek and some other languages that I’m pretty sure are completely made up.

Words such as testator, force majeure, per stirpes, and inter vivos.

Our words are so weird, we have to italicize them.

So I’m not surprised when someone asks me whether a Last Will and Testament and a Living Will are the same thing.

After all, both documents have “Will” in their names, right? It would only be reasonable to think that they are similar.

But they are not similar. They are very, very different.

So I’m going to cut through the legal jargon and explain the differences between Wills and Living Wills — and help you decide which one might be best for you.

Last Will and Testament vs. Living Will

Before diving into specifics, it’s first helpful to know how to define estate planning:

An estate plan ensures (1) that the right people are able to care for your SELF in the event you become incapacitated and (2) that the right people are able to get your STUFF in the event of your death.

Every estate planning tool fits into one of those two categories, and a good estate plan should address both areas of focus.

And as luck would have it, I will be discussing both categories in this post.

What's the Difference Between a Will and a Living Will?
Estate Planning
David Postic
3 Magic Ingredients in a Great Letter of ...

So you’ve got some nifty estate planning documents?

You are awesome.

Formal estate planning document can ensure your family is cared for after your death, avoid court, and minimize the burden your loved ones will face when you are gone.

But legal documents are only one part of the equation.

Your estate plan is not complete just because you signed some fancy papers.

Because while formal estate planning documents can avoid legal obstacles after your death, they do not eliminate the myriad other tasks necessary to settle your affairs.

Think of it this way:

If you died today, would your family know what to do?

If they couldn’t remember anything you told them about your estate, would they be able to easily find all the information they need?

Read more: Why You Need to Have an Estate Planning Fire Drill

If you answered “no” to either of those questions, then your estate plan is not complete.

To make things easier on your loved ones after your death, the best thing you can do is create an estate planning letter of instruction.

3 Magic Ingredients in a Great Letter of Instruction

Estate Planning

Can You Have a Handwritten Will?

Can You Have a Handwritten Will?

The handwritten will is a commonly misunderstood area of estate planning.

Under Oklahoma law, a handwritten or holographic will (as it is known in Oklahoma) can be a valid testamentary instrument if it is: (1) entirely in the handwriting of the testator, (2) dated, and (3) signed by the testator.

Sounds simple enough, right?

Problems With a Handwritten Wills

Actually, it’s not quite as simple as it seems.

Oklahoma courts are very strict when it comes to wills. If a document does not strictly comply with the statutory requirements, it will be thrown out. Consider these questions:

  • What if part of the document is typed while the rest is handwritten?

  • What if some of it was written on one date, then some more was written on another?

  • Where does the signature have to be located on the document?

  • Where does the date have to be located?

  • How does the date need to be written?

  • How do you need to identify your beneficiaries?

  • How should you describe your assets?

  • Do the pages need to be stapled or clipped together?

Importantly, there must also be evidence that the Testator intended this particular document as a will.

Is the language of your handwritten document sufficient to express that intent? Or could anybody argue that the document is simply a set of notes (or a mere draft) rather than a testamentary instrument?

Why You Need to Have an Estate Planning Fire Drill

Why You Need to Have an Estate Planning Fire Drill

Remember fire drills when you were in school?

An alarm goes off.

There’s a certain sense of panic, but you walk — in an orderly fashion — to the exit and meet your classmates outside.

The teacher takes attendance, the coordinator makes sure everyone is accounted for, and then you go back inside and move on with your day.

Most students probably think fire drills are a waste time, and surely teachers would prefer to not have their lessons interrupted while their students go outside.

So why have fire drills?

To make sure we know what to do if and when a real fire occurs. Because if there is a real fire, there can be dire consequences if you don’t have a plan.

What is an estate planning fire drill?

For similar reasons, we encourage our clients to conduct a “fire drill” regarding their estate plan.

In other words, pretend you have died and walk your family through the process of what they must do to set your affairs in order.

5 Tips to Create Your Digital Estate Plan

5 Tips to Create Your Digital Estate Plan

You have spent years cultivating memories with your Facebook profile, curating an audience with your Twitter account, and building an incredibly efficient agricultural operation on FarmVille.

Or maybe you have online stocks, undeposited Venmo funds, and iTunes credits.

These types of accounts are referred to as digital assets because they exist only in electronic or digital form, and almost everyone them.

But what happens to those accounts after you die?

What will become of the thousands of family pictures on Instagram or Flickr?

The answer to these questions depends on how well you plan and whether or not you have digital estate plan that says what you want to happen to your online assets.

Here are five tips to help you create a digital estate plan:

Estate Planning in the Digital Age

Estate Planning in the Digital Age

Who gets your Facebook account when you die? What happens to your Twitter? Your Instagram? Your e-mail account? Your Bitcoin? The Digital Age and the advent of Internet- and cloud-based assets have created a new category of estate planning.

Your Internet accounts are your property, and property stored online that has any value requires the same level of protection you give to other tangible (e.g., houses, cars, stocks) and intangible (e.g., patents, copyrights, goodwill) assets.

You Have More Digital Assets Than You Think

Cutting-edge technology continues to evolve at a rapid pace while estate planning and probate laws struggle to keep up. As a result, some companies responsible for managing the platforms for digital assets have sought to fill the void.

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A Brief History of the Federal Estate Tax

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A Brief History of the Federal Estate Tax

It has been called an inheritance tax, a transfer tax, and a wealth tax. However, the estate tax, as it is presently called, dates back to Egypt in 700 B.C., and it was brought to the world stage by the Roman Empire nearly 2,000 years ago, when Emperor Caesar Augustus imposed the Vicesina Hereditatatium. But for our purposes, we are going to fast forward a few millennia.

The Estate Tax in America

The estate tax has been a part of our country's culture and laws since almost the beginning. The first federal "estate" tax was passed by the 5th Congress in 1797 to pay for a naval build-up in anticipation of a possible war with France. It was then called “An Act Laying Duties on Stamped Vellum, Parchment, and Paper” and required payment of 25 cents on distributions by estates of between $50 and $100; 50 cents on the next $500; and $1 on each additional $500. When a treaty with France was signed to avoid the war, the tax was repealed in 1802.

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