2 Important Reasons You Need an Estate Plan (video)

https://youtu.be/KaenVsOWp9E

The first reason you need an estate plan is to be in control of the distribution of your estate.

Without a plan, the State, not you, decides who controls distribution of your stuff.  You lose all choice when a Judge takes over.

Recently I had a lady come in who had just lost her husband unexpectedly.  He owned valuable land close to the XNA airport only in his name.  But he had never written a plan for how that land was to be distributed.

So, the state decided how it was to be split up.  She gets 1/3^rd of a “life estate” in the property.  A life estate means she owns 1/3^rd of it during her lifetime only.  She can’t sell it without his children’s permission.  Then when it would sell, she would only get a portion of the 1/3^rd because it’s a life estate.  Figuring she is about 65 years old; she gets 65% of 1/3^rd of the estate or about 22% of the total instead of 33%.  And the older she gets, the less she gets if the land is sold.

His children split the other 78% evenly between them.

If you want to control who gets what, when, and how much; control who will manage your affairs if you can’t; protect your assets and finances; protect your family; or control who manages your healthcare if you can’t then you need an estate plan.

The second reason is that without a plan, the State, not you decides who controls and manages your money, property, affairs, and healthcare if you can’t.  You lose all power.

Mark had been diagnosed with rapid onset dementia.  Fortunately, his wife brought him in to get a durable power of attorney almost immediately.  After determining that he still had the mental capacity to sign, we had him execute a durable power of attorney with his wife as his agent.

Due to an unfortunate turn of events, he needed to go into long term care about 8 weeks later.

Without his durable power of attorney, his wife would have needed to go to court to get a guardianship.  That would have taken about $3,200 and trips to court instead of the $600 they spent on the durable powers of attorney.  Not to mention, they don’t have to see a Judge and make part of their private affairs public.

The same goes for healthcare.  Without a healthcare power of attorney, somebody will need to step up and get a guardianship to be able to oversee medical treatment.

If you want a say in who will stand in your place to make decisions, then you need an estate plan.

If you want to control who gets what, when, and how much; control who will manage your affairs if you can’t; protect your assets and finances; protect your family; or control who manages your healthcare if you can’t then you need an estate plan.

Not to mention reducing and eliminating taxes, headaches, anxiety for your family, worry, hassles, and money given to lawyers to settle the estate.

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How is Estate Planning Like Insurance?

Let me ask, why do you buy insurance? I know I buy insurance to protect against the future risk of losing money.  I buy insurance to protect my health and property against the high cost of replacement.

You do estate planning for much the same reason.  Plan to protect against future legal hassles, losses, costs, and risks.

Let’s assume you leave a $200,000 estate.  That isn’t hard to do by the time you add up the value of your home, cars, furniture, and other things.

Probate will cost your family $12,000 or more off the top. Probate costs just about 6% of the total estate.  That’s money to the attorney and others first, not your family. If you create a basic plan to eliminate probate for $2,000 and it costs $1,000 to settle it later, you just gave your family an extra $9,000. 

Probate takes 10 months or more to get done once it is started.  A plan to eliminate probate reduces that time to a few months.

Probate must pay your final expenses and bills.  A plan to eliminate probate doesn’t have to pay those bills saving your family even more money.  No telling how much that will put in your family’s pocket.

Probate can put your financial information in the public court record.  This gives financial predators the opportunity to find out how much your family is getting.  Then those same predators can prey on your family trying to get their money.

A plan protects against future emergencies and medical events.  Planning makes sure that your family doesn’t have to end up in court to get permission to manage your financial, personal, and healthcare decisions.

Without a plan, family often must go to court to get permission from a judge to make your decisions. The basic, uncontested cost, for this is $2,400 plus filing fees and other costs.  Then, every year, an accounting of your property must be published in the public court records.  Your family may find themselves preyed on by financial predators.

With a plan, your family already knows who will be in charge.  Not only did you save your family $2,400 but you also saved them the hassles of going to court, filing paperwork, and more.

I’ve just talked about 2 of the major reasons you want a plan.  There are many more and all of them protect against future risk, just like insurance.

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7 Signs You Need a Trust – Video

In no order of importance, here are 7 signs you need a trust:

1.You have children with addictions to drugs, alcohol, spending, gambling, etc.

2.  You have children or a spouse that is a poor money manager or has credit problems

3.  You have real estate in multiple states

4.  You want the best chance at avoiding probate

5.  You have children with marital issues

6.  You have children with special needs

7.You have children under 18 years old

These aren’t all the reasons to have a trust but are some of the big reasons to have a trust.

And, if you don’t meet any of these criteria, it doesn’t mean you don’t need a plan, but we may be able to do it other ways without a trust.

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Why You Don’t Need an Estate Plan

You don’t need to create your own estate plan and I want to tell you why.

The State Government has already written a plan for you and if it works for you, you don’t need to write your own plan.

Let me lay it out for you, and you can decide if their plan is good for you or not.

First, the State’s plan for your final estate is probate.  Technically, since you don’t have a Will, it is called intestate succession.  Because you didn’t leave a Will or Trust, the state has to make all the decisions.  The state has already decided who will get what, when, and how much.  Your spouse, if you are married, gets 1/3rd and your children will split the other 2/3rds.  If you family can’t agree on who gets what, then a judge will decide for them.  The judge may even have to order most everything sold and just split the money.  Your private affairs and net worth become part of the public record for anybody to look at.  This can lead to financial predators preying on your family.

This whole process should only take about 12 to 16 months.  It will only cost 6 to 10% of your final estate.

Second, if you can’t make decisions anymore because of dementia or any other reason, somebody will have to go ask a judge for permission to make decisions for you.  Their power to make decisions is limited and they will have to ask the Judge permission to do many things.  Also, your private affairs and worth become part of the public record for anybody to look at.

The initial trip to court will set your family back at least $3,000 in legal fees alone not including filing fees and other costs.

Third, your healthcare will be in the hands of the doctors and they get to make all the decisions concerning your healthcare if you can’t make the decisions yourself.  You could be kept alive on machines against your wishes while your family fights among itself and with the doctors concerning your care.

If this doesn’t sound like what you want for you and your family, then I would like to invite you to talk to me about creating your own plan to take the place of the State’s plan.

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How do I Avoid Probate? (Video)

Today I want to talk to you about how to avoid probate.

Hi.  I’m Gary DeWitt, the owner of DeWitt Law Firm.

We do estate planning.  We do it well.  We make it as fast, simple, affordable, and painless as possible.

If you have questions about estate planning or probate, you can setup a time to talk, for free, by going to plan with Gary dot com.  The meeting is free.

Avoiding probate is many people’s goal in creating a plan.  It’s usually a matter of listening, creating an inventory, and looking at all the possible tools at my disposal then using the best combination.  Only experience in planning can create the proper combination.

You want to keep as much of your estate out of probate for several reasons.

First, anything passing outside of probate is not subject to creditor claims in Arkansas.

Second, it is faster and simpler.

Third, probate is expensive and time consuming.  You can just assume a probate will cost 6% of the GROSS value of your estate.  Debts are not subtracted out when calculating the percentage.  So on a $200,000 estate the cost will be around $12,000 and a year of time.

Finally, probate is a paperwork filled hassle for family and loved ones.  People are generally filled with anxiety until it is done.  A basic probate with a Will has over 100 steps to be done.  And that is if everyone signs waivers.  Without waivers, the process takes longer and involves even more paperwork.

It’s a matter of picking the right methods to meet other goals.  A couple with a special needs child will have a different plan than a couple without children.  A stable couple with children will have a different plan than a couple who have children with unstable marriages.

Here are just a few of the ways you can avoid probate, and a few things not to do.

Beneficiary deeds.  This is a special deed that leaves property on the owner’s death to who you want it to go to without probate.  However it does have some drawbacks.

Trusts.  Perhaps one of the best ways to avoid probate is to have a trust created.  With a trust you get to put the rules on who gets what, when, how, and how much.

POD.  POD is payable on death and is used to transfer bank accounts without probate.

TOD.  TOD is transfer on death.  TOD is used to transfer things with a title without probate, like cars.  The rules are pretty strict on what qualifies.

Beneficiary designations.  Beneficiary designations are used on life insurance, annuities, and the like to transfer outside of probate.

A few things not to do include

1.Putting your children on the deed 2.Putting your children on your accounts

You don’t want to do either of these because you run the risk of losing your real estate and money to their creditors, IRS, or lawsuit judgments.  Not to mention the Medicaid implications.

If you have any questions on estate planning or probate or want to chat, you can setup a time to talk to us by going to plan with Gary dot com.

Planning gives peace of mind, confidence, security, and certainty in an uncertain world.

You can setup a time to talk, for free, by going to plan with Gary dot com.  The meeting is free.

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The Steps to Great Estate Planning

Creating a great estate plan is a process, not an event.  I have a 5-step system.  More on that in just a moment.

Hi.  I’m Gary DeWitt, the owner of DeWitt Law Firm.

We do estate planning.  We do it well.  We make it as fast, simple, affordable, and painless as possible.

If you have questions about estate planning or probate, you can setup a time to talk by going to plan with Gary dot com.

Before law school, I had a computer programming career.  In that career you learn that mistakes and errors are easier to correct early in the process that late in a project. Changes and corrections are cheaper, easier, and faster to correct in the beginning that at the end.

The proper system catches mistakes early and gets them corrected now, not later.

The proper system simplifies the work you have to do.  I do the hard part.

Step 1 is to have an initial meeting in person, over the phone, or via zoom.  At this meeting I will actively listen to you and get your goals and needs out on the table.

Step 2 is for you to fill in the information I need to create a plan summary in the comfort of your own home.  You’ll then return that to me.

In step 3, I create a summary of the people and their roles.  This summary is sent to you.  You have the chance at this point to make sure names are spelled right and the correct people are in the roles you wanted.

Step 4, I create a summary of the plan and present it to you.  This summary is a basic outline of the plan.  Again, you have the chance to review and make sure it is what you wanted before the next step.

Step 5, I create the final documents and we have a signing and advising meeting.  At this meeting I answer questions, we sign the documents, and give you any last minute advice or coaching needed.

If you have any questions on estate planning or probate or want to chat, you can setup a time to talk to us by going to plan with Gary dot com.

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The Parts of a Great Estate Plan

What are the 4 parts to a great estate plan?

Hi.  I’m Gary DeWitt, the owner of DeWitt Law Firm.

We do estate planning.  We do it well.  We make it as fast, simple, affordable, and painless as possible.

If you have questions about estate planning or probate, you can setup a time to talk by going to plan with Gary dot com.

Great estate planning is more than just creating a stack of documents.

Great estate planning is a process that I divide into 4 parts.

Part 1 is actively listening.  Active listening is more than just taking notes and nodding your head. It means listening to what you are saying and asking probing questions to uncover your goals and needs.  It includes asking clarifying questions.

Part 2 is advice.  Sound advice on financial matters and legal matters can make the difference between an okay plan and a great plan.

Part 3 is coaching.  You need coaching and advice on the best way to handle your assets and affairs.  Coaching means working with you to arrange assets and affairs.

Part 4 is the documents.  The documents, while important, wouldn’t be as good without the first 3 parts. The right peer-reviewed documents can make the difference between a rock-solid plan, an okay plan, and a plan that fails.

If you have any questions on estate planning or probate or want to chat, you can setup a time to talk to us by going to plan with Gary dot com.

Planning prevents problems.

Planning promotes peace of mind.

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Thirteen Estate Planning Terms You Need to Know

Estate planning—it is an incredibly important tool, not just for the uber wealthy or those thinking about retirement. On the contrary, estate planning is something every adult should do. Estate planning can help you accomplish any number of goals, including appointing guardians for minor children, choosing healthcare agents to make decisions for you should you become ill, minimizing taxes so you can pass more wealth onto your family members, and stating how and to whom you would like to pass your estate on to when you pass away.

While it should be at the top of everyone’s to-do list, it can be an overwhelming topic to dive into. To help you get situated, below are some important terms you should know as you think about your own estate plan.

Assets

Generally, anything a person owns, including a home and other real estate, bank accounts, life insurance, investments, furniture, jewelry, art, clothing, and collectibles.

Beneficiary

A person or entity (such as a charity) that receives a beneficial interest in something, such as an estate, trust, account, or insurance policy.

Distribution

A payment in cash or asset(s) to the beneficiary, individual, or entity who is entitled to receive it.

Estate

All assets and debts left by an individual at death.

Fiduciary

A person with a legal obligation (duty) to act primarily for another person’s benefit, e.g., a trustee or agent under a power of attorney. “Fiduciary” implies great confidence and trust, and a high degree of good faith.

Funding

The process of transferring (re-titling) assets to a living trust. A living trust will only avoid probate at the trustmaker’s death if it is fully funded, meaning it contains all of the decedent’s assets.

Incapacitated/Incompetent

Unable to manage one’s own affairs, either temporarily or permanently; often involves a lack of mental capacity.

Inheritance

The assets received from someone who has died.

Living probate

The court-supervised process of managing the assets of an incapacitated person.  Conservatorship is another term used for this process.

Marital deduction

A deduction on the federal estate tax return, it lets the first spouse to die leave an unlimited amount of assets to the surviving spouse free of estate taxes. However, if no other tax planning is used and the surviving spouse’s estate is more than the amount of the federal estate tax exemption in effect at the time of the surviving spouse’s death, estate taxes will be due at that time.

Settle an estate

The process of winding down the final affairs (valuation of assets, payment of debts and taxes, distribution of assets to beneficiaries) after someone dies.

Trust

A fiduciary relationship in which one party, known as the trustmaker or settlor, gives another party, known as the trustee, the right to hold property or assets for the benefit of another party, the beneficiary. The trust should be memorialized by a written trust agreement, outlining how the trust assets will be distributed to the beneficiary.

Will

A written document with instructions for disposing of assets after death. A will can only be enforced through a probate court. A will can also contain the nomination of guardian for minor children.

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How to Own Your Real Estate

Real estate encompasses not only one’s primary residence but also other real estate such as a vacation home or a rental property. The ideal form of ownership varies depending on the type of real estate you own. Below, we take a look at the different types of real estate and offer advice about the best form of ownership for each.

Primary Residence

Because your primary residence receives special tax treatment, you should carefully consider how your home is owned. In some states, tenancy by the entirety offers married couples creditor protection from the creditors of one of the spouses (with a possible exception for federal tax liens) while still preserving relevant tax benefits. It also allows automatic transfer of ownership to the surviving spouse upon the death of the first spouse without court involvement. Transferring ownership of the primary residence to a joint revocable trust may also be an option if you live in a state that allows the tenancy of the entirety protection to transfer to the joint revocable trust. Ownership by the trust also means that the real estate will not go through the lengthy, expensive, and public probate process but will instead be handled according to your wishes as specified in the trust document.

If you are single, owning the property in your name allows you to take advantage of tax benefits for primary residences. Transferring ownership to a revocable living trust may also allow you to retain the applicable tax benefits with the added benefit of avoiding the probate process. If asset protection is a major concern during your lifetime, certain types of irrevocable trusts are best suited for your needs but may require you to give up some control of the property.

The bankruptcy code may provide additional protections for a primary residence (e.g., your state may have a homestead exemption). However, in some states, transferring your primary residence to a trust may eliminate the homestead exemption because the trust rather than you (the debtor) will be deemed to be the owner of the residence. If this situation could apply to you, it is important that you meet with a knowledgeable estate planning attorney before transferring your primary residence to a trust.

Vacation Home

For some families, their vacation home has not only high monetary value but also significant emotional value. Ownership of a vacation home by a trust or limited liability company (LLC) can be advantageous because it addresses two main priorities: ease of transfer to the next generation and asset protection.

With a trust or LLC, you are able to establish rules for how the property is to be used and maintained, as well as designate what is to happen to the vacation home once you pass away. This can be a great solution if you want to ensure that the vacation home stays in the family for generations with minimal family conflicts.

An additional benefit of having an LLC own your vacation home is that it provides limited liability from outside claims. If a judgment is entered against the LLC, the creditor is limited to the accounts or property owned by the LLC to satisfy the creditor’s claims and cannot look to your personal accounts or property or those of the other members. Also, if a judgment is entered against you or another member for a claim unrelated to the LLC, it will be harder for a creditor to force a sale of the vacation home. This can be incredibly helpful if you wish to pass the vacation home on to the next generation without worrying about the individual financial situation of each new member.

Note: In some states, a single-member LLC (an LLC in which you are the only member) does not enjoy the same protection from your personal creditors. The rationale of these laws is that your creditors should be able to seek relief through your LLC interests to satisfy their claims because there are no other members that will be negatively impacted by seizure of money and property owned by the LLC.

If the vacation home has been in the family for many years, it is important to consult with us and your tax advisor to make sure that transferring your vacation home to a trust or LLC will not cause an increase in your property taxes or other unintended consequences.

Rental Property

Because rental property is an income stream rather than a residence, asset protection is usually the primary concern. As a landlord and owner of rental property, you face a higher probability of lawsuits arising in connection with the property because the occupants can change over time. Transferring ownership of the rental property to an LLC is a great option. If a renter gets injured on the property, sues the LLC that owns the property, and obtains a judgment that exceeds any property insurance you have, the renter can seek satisfaction of any claims only from the accounts and property owned by the LLC, not from your personal accounts and property or those of any other owners of the LLC.

In addition, ownership by the LLC may protect the rental property from your personal creditors. However, if you are forming a single-member LLC, it is important to have us check state law to make sure creditor protection is available.

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One Mistake Can Cost You Half

This one common mistake could cost you half your house and/or half your money. This one common mistake could cost your children a hefty tax bill.

I see people almost every day that have made it and don’t realize the consequences.

Here are some of the consequences you may not have foreseen.

What is the mistake? Putting your children on the accounts as co-owners of your accounts or on your deed.

• If your child gets divorced, do you want their spouse to get half your home and accounts?
• If your child gets in an at fault accident, do you want the other person to get half your home and account?
• If your child gets in IRS trouble, do you want the IRS to put a lien against your house?
• If your child gets in credit problems, even if it isn’t their fault, do you want to have to fight their creditors to keep your money?
• If you want to sell the house, do you want to give half the money to your child?
• If you put your child on the deed to your house
  • They will owe capital gains tax on their half based on what you paid for the house
  • You’ve just pushed probate off onto the next generation

There are alternatives that can protect your money and home while allowing your children to manage your money if you aren’t able to anymore.

Setup a Call to Learn the Alternatives

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How do I Choose Between a Will and a Trust?

Introduction

This is the process I go through when helping people answer the question “How do I choose between a will and a Trust?”. There are other more personal factors that go into the decision than this, but here are the more tangible things to consider.

Background

With a Will, all property not otherwise handled will go through Probate. Many people’s goal for planning is to keep their family out of Probate court. Probate in Arkansas takes a minimum of 8 months and can cost 3-6% of the gross estate (not taking out debts). Probate is a public process.

With a Trust, everything in the Trust stays out of probate. With us, we put your house and all your personal property in the Trust. It is up to you (unless you ask us to) to go to the banks, life insurance companies, and investment companies and re-title your property to the trust. Property in the Trust transfers in about 90 days, privately.

A good planner will always write a Will to go with a Trust. All the Will says is to put everything in the Trust and close Probate.

How do I Choose Between a Will and a Trust?

If you have one child, cars, one home, retirement accounts, and bank accounts you can get away with a Will and additional planning with the caveat that Probate may be required for property not properly titled to avoid probate.

If you want the best chance of avoiding probate and keeping your affairs private, then a Trust is the way to go. Probates are public. I just read a petition in a probate for over $250,000. Now the world knows how much the family will inherit.

Here is a list of things to consider when deciding how do I choose between a Will and a Trust?

1. Blended family and you want his property to go to his children and her property to go to her children.
2. Children with special needs that will need, or are currently on, means tested government benefits.
3. Multiple pieces of real estate
4. Ownership of real estate in more than one state (avoids multiple probates)
5. Children that spend money as fast as they get it or like to spend more than they have. A Trust can be set up to dole the money out over time instead of in a lump sum. A Trust can also protect the money against their creditors and any lawsuits.
6. Children with addictions to drugs, alcohol, gambling, and more can be protected and provided for without disinheriting them.
7. You want to main control of the money and set the rules for distribution beyond just who gets what. With a Trust, you decide not only who gets what, but when and how.
8. Children or grandchildren under 18 that will be inheriting. If a Trust is not created, often the court will impose one during Probate and then give them a lump sum check when they turn 18.
9. Children with credit issues can have their inheritance protected from creditors with a Trust.
10. Business interests are often best assigned to a Trust so that they pass without publicity.
11. You want to name ahead of time who will manage assets for you if you can’t and how they are to be managed.

What Else do I Need in Addition to a Will or Trust?

• A Durable Power of Attorney. You choose who will manage your financial, personal, and legal affairs if you can’t (or don’t want to anymore). This is arguably the most important document in a plan.
• A Healthcare Power of Attorney. You pick who will make healthcare decisions if you can’t.
• A HIPAA Waiver (Protected Healthcare Information Release). You name the people that healthcare workers can share information with.
• A Living Will. This tells the doctors, if the end is very near, if you want to be kept alive on machines or not.

That is how I work through the issues and answer the question “How do I choose between a Will and a Trust?”

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Notes – August 2020

Personal Notes

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What a busy month for the DeWitts…

We bought a new house and moved.  Here at the end of July we are just getting settled in.

Aaron is busy at boot camp.  We are getting several letters a week from him.  It’s good that he is learning to write a letter.

Madeline is getting ready to start at the University of Arkansas. 

And we are busy taking care of people during this “new normal.”

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Why You Should do Your Estate Planning…Now!

If you have a car, you probably have car insurance.

If you have a house, you probably have house insurance.

Why?  Risk management.  Insurance is a way of managing the risk of loss.

But most people are walking around without the insurance (assurance) of who will take care of them or how their property will be handed out later.  They don’t have an estate plan.

Estate planning is your way of managing the risk of loss of capacity and more.

Once you turn 18 nobody else can make financial, legal, or healthcare decisions for you.  If you don’t have a plan in place, it will be difficult on your family to make those decisions because of the hurdles the legal system puts in place.

If anything unexpected happens, you and your family could find yourselves facing consequences you didn’t want.

First, if you are incapacitated because of an accident, medical incident, infection, heart attack stroke, or dementia your family faces trips to court to get permission to take care of you and make financial, legal, and healthcare decisions. Planning makes sure that the people you want will be in charge.

Second, if you should pass away without a plan, then your family faces probate.  You won’t have a say in who gets what.  You won’t get a say in when they get it or protecting their inheritance.  The State’s laws will make those decisions.  The Judge will enforce the State law.  Planning is the way to avoid probate and give what you own to who you want when you want with the rules you want.

Estate planning reduces risk.

Estate planning protects you.

Estate planning protects your children.

Estate planning helps keeps assets in the family. Planning ensures your children’s inheritance is protected. Planning protects your children from losing half of their inheritance to a divorce.  Planning protects your children in case they become incapacitated.

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August Quotes

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Recipe – Chicken Picatta

Floral, lemony, tangy.  The best word that describes this dish is delicious.

Click Here for the Recipe from AllRecipes.com

Imagine for a minute you didn’t have insurance. I imagine you would feel vulnerable and exposed. I know I would. Just one accident, medical incident, or house fire would wipe a person out. The worry would be constant. I used to feel like that because I didn’t have an estate plan. I didn’t have protection against the risk of probate and more. Now I don’t worry about the risks because I have a plan. Helping people avoid the risks is what I do.

I know that protecting what you have against risk (i.e. insurance) is important to you. I’m sure at time, you feel insecure. I’m sure that you want to take all the steps you can to protect what you’ve worked so hard or. When you work with me, that’s just what we’ll do. You’ll know you’ve done all you can to protect you, your family, and your money.

I’ve been helping people for years by putting plans together, so naturally I have a wealth of knowledge. Obviously, as you know, every person is different and every situation is different as are goals, outcomes, and desires they want to achieve and fulfill. I pride myself on getting you the information you need to make good decisions. Clearly I don’t want to make any suggestions about a plan of action before finding out more about you, your situation, and what your goals are. I’m sure you would agree that is a good way to start.

Please use this link to schedule a free consultation and estate planning needs analysis. Thank you again, Gary.

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The Real Reason for Estate Planning

The real reason for estate planning is often overlooked by most people and attorneys.

Planning is more than a stack of documents. The documents are the implementation of a plan, not why you create a plan in the first place.

If you do a search on the internet for “reasons to estate plan” you’ll end up with a list something like this:

• Avoid Probate
• Save Time
• Save Money
• Avoid Hassles
• Reduce Taxes

But, are those the real reasons for an estate plan? The reasons for estate planning go deeper than just avoiding probate.

It’s true that estate planning can save money. So what? Money helps by giving your family more financial freedom. Your family will have more to go around. A little money can mean the difference between their financial independence or financial doom. More money often leads to more stability.

Planning saves time. So what? Saving time means your family can spend time taking care of what’s important, family, not doing paperwork and going to court. Your family will often get what is coming to them faster with a plan than without. This timing can make a huge difference in their lives.

Planning stops fights. Fewer fights lead to better family harmony. I know I don’t like to see my children fighting. I imagine you are a parent who wants family harmony.

Planning leads to a feeling of peace of mind. Most people that plan with me say that it is a relief to have their plan done. This is a good reason to plan, but I don’t think we’ve gotten to the real reason for planning yet.

If you keep peeling away at the layers, you arrive at the heart of the matter.

The real reason for estate planning is that you care about your family. You want to take care of them the best you can. You want to know that you’ve done everything you can to protect you, your family, and your money. You do that by planning for active management of your hard earned money during your lifetime and the easy transition to your family. You do this because you care.

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Celebrate Your Independence – 8 Tips

The best way to maximize your independence is to plan for it.  As we age, we’ll all need some help. 

1. Consider, when the time comes, getting help to do laundry, cook, and keep you company. You may also need help getting around. One good choice is Good Shepherd (479-361-8983).
2. Consider wider doors and hand grabs.  If you end up need a walker, then you’ll be glad to live in a place with 36-inch doors.  Install hand grabs to help you maintain your balance and not fall.  Steve Real at Real Property Solutions can help get those installed (479-426-6206)
3. Consider installing a camera system in at least the living area your children have access to. That way they can check in on you, even if they are many miles away.  Some systems even allow you to have video chats with each other.  Becky Grigg with Ozark Home Technologies (479-619-8574) has several systems that can help.
4. Another consideration is Life Alert.  If you do slip and can’t get up, you need to be able to summon help immediately. Time laying on a cold tile floor can lead to hypothermia.
5. Set up a buddy system with your neighbor.  You check on them every day and they check on you every day.  This doesn’t cost you anything and leads to a lot of peace of mind for you and your family.
6. Pick trusted people to help you manage your money and legal affairs. You do this with a durable power of attorney.  We can help you with this.
7. Pick trusted people to help you manage your healthcare.  This is done with a healthcare power of attorney.  We can help you with a healthcare power of attorney.
8. Have somebody you know with a great referral network.  You can call/text us at (479)717-6300 to get referrals for many things other than legal matters.  We are glad to help.

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7 Documents That Are Critical to Planning Your Estate

1 – Durable Power of Attorney

A Durable Power of Attorney let you pick somebody you know and trust to manage your financial and legal matters if you can’t.

This may be the most important document you can create. Without it, your family may be forced into court in a proceeding for a “guardianship.” This is when the courts decide you can’t manage your own affairs and name somebody to manage for you. A Guardianship is quite expensive because it involves going to court.

This isn’t something you should put off. You must be legally competent to sign a durable power of attorney. Many people worry about giving up control until it is too late. Then their family is forced into court.

2 – Healthcare Power of Attorney

Make sure somebody can make healthcare decisions for you if you beccome mentally incapacitated.

This shouldn’t be confused with a Durable Power of Attorney. The two cover different areas of your care.

In many, if not most states, a Healthcare Power of Attorney is only used if you can’t make your own healthcare decisions in any manner. As long as your are mentally competent to manage your affairs you do.

3 – HIPAA Waiver

HIPAA is a law that says your healthcare information is your private business. Without a waiver, your family may not be able to talk to the doctors and nurses to check on your condition. A hospital may not even be able to tell people if you are a patient.

A HIPAA Waiver tells healthcare professionals who you want to be able to check on your condition and get other healthcare information.

4 – Living Will

A Living Will (not to be confused with a Last Will and Testament) lets you explain in advance what treatments you want if the end is upon you. It is strictly to tell the doctors what treatments you want and don’t want if you can’t make those decisions.

A “Living Will” has no relationship to a Last Will and Testament or a Trust.

5 – Last Will and Testament

Wills require probate! Probate is public. Probate is lengthy. Probate is expensive.

Wills don’t give you, your family, or your property any lifetime protection. Wills are not even effective until Probate is opened and the Will is admitted by a Judge.

A Last Will and Testament

• Gives your final estate away to who you want in the amounts you want
• Names guardians for minor children
• Names an executor (somebody to oversee the process)

If you don’t have a Will, the Court, not you

• Names the executor
• Decides who gets what
• Decides who gets how much

6 – Living Trust

A Trust is a way to pass assets on without Probate.

You name a trusted person, the successor Trustee, to manage the property and stuff in the Trust. Unlike a Last Will and Testament, a Trust can distribute property now or later. A Trust can be used to create complex rules for the distribution of your property.

7 – Inventory

You should have an inventory of your property. This doesn’t just include your house and cars but should also include

• Bank accounts
• Financial planner or advisor
• CPA
• Life insurance policies
• Retirement accounts
• Pensions
• Divorce records
• Marriage records
• Deeds
• Stocks
• Bonds
• Mutual Funds
• Automobiles
• Accounts payable with contact information
• Any loans you’ve made with contact information
• Utilities

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What Estate Planning Attorney to Use? (Video)

What Estate Planning Attorney to Use?

Today I want to talk to you about the second top secret question for successful estate planning… what estate planning attorney should I choose?

Hello.  I’m Gary DeWitt from DeWitt Law Firm.  We do estate planning.  We do probate.  We do it well.

If you have questions about this or anything else you can book a time to talk to me over the phone or in person, for free, by going to http://PlanWithGary.com

A good estate planning attorney will devote a good part, if not all their practice to the art and science of estate planning.  Other attorneys simply don’t have the knowledge, skill, judgment or experience to plan your estate properly.

Nothing is more important in a lawyer/client relationship than having a lawyer you trust.  And nothing is more important to most attorneys that they can be trusted by the clients they work for.  You will be sharing intimate parts of your personal life and financial matters with the attorney to get your plan completed.

If the attorney has an assistant create your estate plan, then why hire the attorney?  You may as well hire the assistant (except that it is illegal in most states to practice law without a license…)

An attorney who structures meetings by allowing enough time to answer your questions.  High-volume practices have short appointments so they can move clients quickly through the process.  I don’t know about you, but this is not the level of service I expect when I hire a lawyer.

One who has dedicated his practice to helping people understand their estate planning alternatives.  An attorney who takes the time to explain what you need to know.  An attorney who has “written the book.”

At best, you get what you pay for. Most people do not shop for the cheapest doctor.  Instead, they focus on the doctor’s qualifications and experience.  You should apply the same principle when selecting an estate planning attorney.  If the fee is too low, the lawyer may be leaving something out.  Make sure the fee you pay and the services you receive are of equal value. 

Shouldn’t you be able to talk with the lawyer for free before you decide whether to hire him?  Shouldn’t you get the chance to make sure you are comfortable with them?

If you have questions about this or anything else you can book a time to talk to me over the phone or in person, for free, by going to http://PlanWithGary.com

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What is Estate Planning? (Video)

What is Estate Planning?

Today I want to talk to you about the first top secret question of successful estate planning… what is estate planning?

Hello.  I’m Gary DeWitt from DeWitt Law Firm.  We do estate planning.  We do probate.  We do it well.

If you have questions about this or anything else you can book a time to talk to me over the phone or in person, for free, by going to http://www.PlanWithGary.com.

Estate planning is the process of arranging for care of your affairs and the disposition of your final estate.

Most people think of estate planning as nothing more than deciding how to distribute their final estate.

This part is handled with a Last Will and Testament or a Trust.

Or, if a person chooses not to plan, the state’s plan, “intestate succession” is used instead.

The second area is rarely though of until it is too late.

It is managing your assets and affairs in case of mental incapacity or disability.

We are living longer than ever.  Unfortunately, for many folks, their body is outliving their mind.

Estate planning is about protecting your assets, dignity, and rights during your lifetime. 

This protection comes in two parts.

The first part is arranging for protection and management of your assets during your lifetime when you can’t manage your assets yourself.

The second part is arranging for managing your healthcare during your lifetime when you can’t make healthcare decisions.

The documents you need are:

• A Healthcare Power of Attorney
• A Durable Power of Attorney
• A Living Will (Advance Directive)
• Authorization for Release of Protected Healthcare Information (HIPAA Waiver)

If you have questions about this or anything else you can book a time to talk to me over the phone or in person, for free, by going to http://www.PlanWithGary.com

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Top Secrets of Successful Estate Planning #1b – Picking an Estate Planning Attorney (Video)

Hello.  I’m Gary DeWitt from DeWitt Law Firm.  We do estate planning.  We do probate.  We do it well.

If you have questions about this or anything else you can book a time to talk to me over phone or in person, for free, by going to http://PlanWithGary.com

Today I want to talk to you about the first top secret to a successful estate plan…  not all attorney are equal

A good estate planning attorney will devote a good part, if not all their practice to the art and science of estate planning.  Other attorneys simply don’t have the knowledge, skill, judgment or experience to plan your estate properly.

Nothing is more important in a lawyer/client relationship than having a lawyer you trust.  And nothing is more important to most attorneys that they can be trusted by the clients they work for.  You will be sharing intimate parts of your personal life and financial matters with the attorney to get your plan completed.

If the attorney has an assistant create your estate plan, then why hire the attorney? 

You may as well hire the assistant (except that it is illegal in most states to practice law without a license…)

An attorney who structures meetings by allowing enough time to answer your questions.  High-volume practices have short appointments so they can move clients quickly through the process.  I don’t know about you, but this is not the level of service I expect when I hire a lawyer.

One who has dedicated his practice to helping people understand their estate planning alternatives. 

An attorney who takes the time to explain what you need to know. 

An attorney who has “written the book.”

At best, you get what you pay for. Most people do not shop for the cheapest doctor.  Instead, they focus on the doctor’s qualifications and experience.  You should apply the same principle when selecting an estate planning attorney.  If the fee is too low, the lawyer may be leaving something out.  Make sure the fee you pay and the services you receive are of equal value. 

Shouldn’t you be able to talk with the lawyer for free before you decide whether to hire him?  Shouldn’t you get the chance to make sure you are comfortable with them?

If you have questions about this or anything else you can book a time to talk to me over phone or in person, for free, by going to http://www.PlanWithGary.com

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Top Secrets of Successful Estate Planning – The Two Parts of Estate Planning (Video)

Hello.  I’m Gary DeWitt from DeWitt Law Firm.  We do estate planning.  We do probate.  We do it well.

If you have questions about this or anything else you can book a time to talk to me over phone or in person, for free, by going to PlanWithGary.com

Today I want to talk to you about the first top secret to a successful estate plan… the 2 major areas of estate planning.

Most people think of estate planning as nothing more than deciding how to distribute their final estate.

This part is handled with a Last Will and Testament or a Trust. 

Or, if a person chooses not to plan, the state’s plan, “intestate succession,” is used instead.

The second area is rarely though of until it is too late.

It is managing your assets and affairs in case of mental incapacity or disability.

We are living longer than ever.  Unfortunately, for many folks, their body is outliving their mind.

Estate planning is about protecting your assets, dignity, and rights during your lifetime. 

This protection comes in two parts.

The first part is arranging for protection and management of your assets during your lifetime when you can’t manage your assets yourself.

The second part is arranging for managing your healthcare during your lifetime when you can’t make healthcare decisions.

The documents you need are:

• A Healthcare Power of Attorney
• A Durable Power of Attorney
• A Living Will (Advance Directive)
• Authorization for Release of Protected Healthcare Information (HIPAA Waiver)

If you have questions about this or anything else you can book a time to talk to me over phone or in person, for free, by going to http://PlanWithGary.com

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