Basic Estate Planning
Here are my notes for today’s “(Actually!) Setting Your House in Order” Sunday School class. We’re tackling the topic of BASIC ESTATE PLANNING:
INTRODUCTION
1. Disclaimers/Goals:
a. It’s been a long time since Tara has practiced law as an estate planning attorney—and even when she was actively licensed: a) it was in Illinois, not Montana; and b) she practiced in a highly specialized area of the law (high net worth/charitable estate planning), not general practice. Therefore …
b. This Sunday School Class is NOT going to provide you with any specific legal advice. Either you will research, prepare, and execute your documentation yourselves (without legal counsel) or you will need to hire an attorney to assist you.
c. That being said, we really hope that these classes on basic estate planning will help you, encourage you, and that by the end of the class semester, those of you who want and need basic estate planning documentation will have what you need to get started and/or make some serious progress on your estate plan.
2.Other Resources:
a. We continue to recommend that each one of you get to know Crown Financial Ministries to help you with all of the financial issues we are covering in this class. In particular, we recommend the workbook, Set Your House in Order, to help you to organize your finances and plan your estate.
b. There is also a plethora of helpful, basic estate planning books available at the library and through any bookseller. If you want to go deeper into these topics, pick one up! The basics are really not that difficult to understand.
c. In addition, just to get us started on these topics, I’ve copied off a bunch of documentation off of the internet that is free / in the public domain and I will be sharing those documents with you in these classes. Please bring this ‘estate planning packet’ back with you to all of our classes on estate planning! I will not have extra copies of documents available at future classes.
3. Biblical Principles: As we progress through these estate planning classes, please brings up questions and ideas related to how biblical principles apply to these topics. We surely do not have all of the answers for you! But in line with our corporate goal of glorifying God in all we do, we truly hope that this class will be a safe environment to consider such things. We’ll get us started along these lines with:
Handout #1: Estate Planning Principles / God’s Perspective on Inheritance
STEPS TO CONSIDER RE: ESTATE PLANNING
1. Consider what basic estate planning is and why estate planning might be important so that you can prayerfully come to your own convictions re: what your goals and intentions are.
Handout #2: Basic Estate Planning Fact Series—Introduction: Estate planning objectives include arranging for the well-being of your loved ones and yourself while you are living and after your death.’ This includes both personal relationships and financial considerations.
Pages 9, 10, 11 help you (and your spouse if you are married) to discuss your goals re: estate planning.
(NOTE: Many of the documents I have copied for you are Ohio State University Fact Sheets so they do not provide state-specific information for Montana.)
2. Understand the ‘Big Picture’ of the basic estate planning documents (and consider another—The Letter of Instruction):
Handout #3: Basic Estate Planning Documents
3. Think/talk through the common steps to creating an estate plan:
Handout #4: Estate Planning in Montana: Getting Started
– Steps in Estate Planning
– (Page 3) What My Attorney Should Know
4. Take time in the next three weeks to make your estate planning a priority. Read some of the supporting documentation I’ve provided for you—or other resources that you find/purchase. Come back to class with your questions so that we can help you to get ready to either do your own documentation or meet with an attorney.
Handout #5: Why Have a Will?
Handout #6: Why Should I Assign Power of Attorney / Living Wills and Health-Care Proxies / What is a Fiduciary / Who Can Serve as Fiduciaries / How to Choose a Personal Representative / Choosing a Health Care Agent for Your Advance Medical Directive
Handout #7: Letter of Instruction
Handout #8: How to Calculate the Value of Your Gross Estate
Handout #9: (Pages 8 & 9 have a great two-page brief case study/example of the Estate Tax)
Handout #10: Does a Trust Make Sense / Trusts
TARA’S CLOSING THOUGHTS
1. Understand the big picture / basic documents
2. If you have MINOR CHILDREN—don’t delay! (You don’t want the courts deciding this issue. This is especially important if your family members do not share your worldview/convictions.)
3. Know your gross estate value closely enough to determine if you have tax issues and if you do, ALWAYS hire an attorney.
4. Even if you don’t THINK you have ‘money issues’—consider HOW you are distributing TAX-DEFERRED ASSETS especially if you have charitable intents.
5. It is a MUCH higher likelihood that you or your spouse will become incapacitated. Be sure to plan for DISABILITY (insurance / powers of attorney).
6. This is why your FIDUCIARIES are SO important. Don’t just pick your ‘oldest son/child’. Read the documentation I’ve given you and THINK/PRAY about it.
7. No matter WHAT—you’ve GOT to start talking about this stuff. With your spouse. With your CHILDREN. With your HEIRS / potential guardians / powers of attorney. It’s awkward, yes, but you have to do it.
8. Don’t be taken in by the ‘TRUSTS FIX EVERYTHING’ advertisements. Read the documentation I’ve provided you and be wise.
9. Regularly REVIEW and UPDATE your estate plan.