National Estate Planning Month is in October

National Estate Planning Month falls in October.  Do you believe this is exclusive to the wealthy?  Rethink that!  Estate planning is necessary if:

You have small children.  If you don't have a plan, someone else will choose to raise your child. There are 68% of Americans who own a pet, including you. A well-crafted estate plan will guarantee a seamless transition for your beloved pet. As an American, you belong to the 60% who own a home. Your beneficiaries will be vulnerable to long-term care claims, probate, and taxes if you don't have a solid estate plan! Your family is blended. My kids and my second husband won't be at conflict thanks to a solid plan! Someone you love has unique needs. The eligibility of a disabled beneficiary for program benefits may be affected by a straightforward will that leaves assets to them.

What is the Most Common Error in Estate Planning?               

AMC: Putting your house in your children's names is the number one error.   By doing this, they will lose any senior real property tax exemptions, be hit with capital gains taxes, and expose the house to responsibility claims and even divorce from the kids.  I write about a retired judge who titled his house in his daughter's name in the book.  He had complete faith in her. She tragically passed away in a vehicle accident without leaving a will, and her husband ended up getting the house according to the state's default inheritance laws.

It's common to hear about trusts.  Could you explain the differences between a trust and a will?

AMC: Kindness ought to be our common trait.  But using it is not the aim because a will goes to.PROBATE: this is an open procedure that can be contested and has substantial delays as well as legal costs.  In contrast, a private trust becomes effective right away and doesn't need legal assistance when it comes to probate.

Do It Yourself Estate Planning?  In such case, is it true or false? AMC: In the midst of nowhere.  Can an individual draft their own will?  Well, if you're on a game show, then sure.  But in practical terms, I would advise against it.  Despite being a creative genius, Aretha Franklin's DIY will was challenged in court years after her passing.  However, you can complete certain paperwork by yourself.  I'll let you know which ones!