Incorporating Trusts into Your Gifting Strategy

December 2, 2025

Giving assets to family members or grandchildren during your lifetime can be deeply rewarding. It also requires careful planning to avoid tax consequences and protect the gift’s long-term value. Trusts offer a way to make gifts strategically — ensuring that they are managed wisely, shielded from misuse and distributed according to your wishes. By incorporating trusts into your gifting strategy, you can balance generosity with foresight.

The Purpose of Gift Trusts

A gift trust allows you to transfer assets out of your estate, while still controlling how and when those assets are used. Unlike direct gifts, which are transferred to the recipient immediately, assets in a trust are managed by a trustee who follows the instructions you set. This enables support for younger beneficiaries, safeguarding funds and minimizing estate or gift taxes.

Gift trusts can serve many family and financial purposes, such as:

Education funding: Set aside money for tuition or college expenses.
Generational wealth planning: Transfer assets to children or grandchildren without triggering large tax bills.
Protection against misuse: Ensure that funds are distributed responsibly and not spent all at once.
Estate reduction: Lower the taxable value of your estate, while still helping loved ones now.

Each trust can be tailored to fit your family’s goals and financial picture, with explicit provisions for management, timing and oversight.

How a Gift Trust Works

When you create a gift trust, you name a trustee to oversee the assets. The trust document details how funds can be spent, at what ages distributions occur and for what purposes (such as education or home ownership). Many gift trusts are irrevocable, meaning the assets are permanently removed from your estate and reduce future estate taxes.

It’s also possible to structure trusts to take advantage of the annual gift tax exclusion, which allows you to gift up to a certain amount per beneficiary each year without incurring tax. Over time, this strategy can significantly shift wealth while preserving tax efficiency.

Balancing Control and Flexibility

Trusts can be highly flexible, with terms designed to reflect your values and priorities. Some trusts allow beneficiaries to receive funds in stages, while others include incentives for achieving educational or professional milestones. The key is striking the right balance — offering support while maintaining guidance.

Turn Generosity into a Lasting Legacy

Giving is a key part of shaping your family’s future. With the proper legal guidance, incorporating trusts into your gifting strategy will ensure those gifts are protected, purposeful and enduring. An experienced estate planning attorney can help you select the right trust structure, understand tax implications and ensure that your generosity continues to benefit your loved ones for generations. If you would like to learn more about gifting and estate planning, please visit our previous posts.

Reference: ElderLawAnswers “The Benefits of Giving Gifts to Your Grandchildren in Trust”

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Avoiding Probate Is Key to Protecting Your Legacy

November 25, 2025

Probate is the court process that validates a will, appoints an executor, gathers assets, pays creditors and authorizes distributions. It exists to protect heirs and creditors. However, it can add months of delay, court fees and public filings that many families would rather avoid. Avoiding probate is key to protecting your legacy. The good news is that a handful of simple tools can help most households sidestep the bulk of the process, while keeping their plan clear and coherent.

What Probate Actually Does

Probate converts a will into a court-ordered document. In some states, it is streamlined; in others, it can be slower and more expensive. Either way, it is public by default. Petitions, inventories and some accountings may be part of the court file. If privacy and speed matter to your family, it pays to minimize the amount that must pass through the court.

When Skipping Probate Makes Sense

Avoiding probate is most beneficial when beneficiaries require immediate access to funds for housing, tuition, or medical expenses, when family members reside in different states, or when there is real estate in multiple states that could result in multiple court cases. It also helps when you value privacy and want to minimize the disclosure of net worth and family relationships.

Simple Paths That Bypass Court

Life insurance, retirement plans and many bank and brokerage accounts can pay directly to named individuals or to a trust. Use both primary and contingent beneficiaries, so money has a clear path even if someone dies first.

Transfer on death and payable on death

TOD and POD tools allow many financial accounts, and, in some states, real estate, to pass with a recorded form instead of a court order. Confirm how your state handles deeds and what documentation the custodian or recorder requires at death.

Revocable living trust

A living trust holds assets during life and directs distribution afterward. If funded properly, it lets your trustee act without opening a probate estate. Trusts are especially useful for real estate, closely held business interests and accounts that benefit from centralized management.

Joint ownership

Joint tenancy with right of survivorship can move property to a co-owner at death. Use it sparingly. Adding a name for convenience can create gift issues, creditor exposure and family disputes if expectations are unclear.

Avoiding Conflicts Between Documents

Your will, trust and beneficiary forms must tell one coherent story. If the trust makes staggered distributions for a young or vulnerable beneficiary, do not name that person directly on the accounts. If the trust owns real estate, ensure that the deed is titled in the name of the trustee. Maintain a single asset map that lists each account, its current location, the account’s title and the named beneficiary.

Practical Steps to Avoid Probate Today

Collect and review all beneficiary forms. Add contingents and remove any “estate” beneficiaries that would force court involvement. Record TOD deeds where available and confirm titling on joint property.

Centralize documents, logins and contact information for custodians, so your executor and trustee can act quickly. Finally, add a short letter of instruction that explains what you want sold, what you want kept and how you want personal items handled.

How A Probate Lawyer Can Help

Avoiding probate is key to protecting your legacy. A probate lawyer can estimate the time and cost of court proceedings in your state, then design a bypass plan that utilizes designations, TOD or POD tools and a revocable trust where appropriate. Counsel can harmonize deeds, update forms and coordinate with custodians so paperwork is accepted the first time. If you want a faster and more private transition, schedule a consultation to map your assets, align your titles and forms and limit what must enter the courthouse. If you would like to learn more about probate, please visit our previous posts.

Reference: Forbes (May 24, 2024) “Why Skipping Probate Could Save Time And Money”

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Spousal Lifetime Access Trusts can Protect Your Partner

November 18, 2025

For couples with significant assets, planning for the future is necessary to ensure financial security for the surviving spouse while minimizing tax exposure. Spousal Lifetime Access Trusts can protect your partner when you are gone. Often called a SLAT, it offers an effective way to achieve both goals. Combining long-term protection with ongoing access to funds helps preserve family wealth while maintaining flexibility.

Understanding Spousal Lifetime Access Trusts

A Spousal Lifetime Access Trust is an irrevocable trust created by one spouse for the benefit of the other. The grantor transfers assets, such as investments, real estate, or business interests, into the trust, thereby removing them from their taxable estate. The non-grantor spouse can then receive income or distributions from the trust during their lifetime.

This arrangement provides a balance between tax efficiency and practical access. It allows couples to reduce the size of their taxable estate while keeping resources available should unexpected expenses or financial changes arise.

How SLATs Protect Wealth

One of the main advantages of an SLAT is its ability to shield assets from future estate taxes. With current federal exemption limits set at historically high levels, couples can transfer substantial wealth now and lock in those benefits before potential tax law changes reduce the threshold.

The trust also serves as a form of asset protection. Once transferred, the assets generally cannot be reached by the grantor’s or the beneficiary’s creditors. This makes SLATs appealing to business owners and high-net-worth families seeking long-term security.

In many cases, the trust can also distribute income to the beneficiary spouse, ensuring that the family continues to benefit from the assets even though they are no longer part of the grantor’s estate.

Key Structural Considerations

While powerful, SLATs require careful design. Because they are irrevocable, the grantor cannot reclaim the assets after transferring them. Couples must ensure that they retain sufficient liquidity and income outside the trust to maintain their standard of living.

If both spouses create SLATs for each other, the trusts must differ meaningfully to avoid triggering the “reciprocal trust doctrine.” This IRS rule can invalidate tax benefits if two trusts are too similar, effectively treating each spouse as if they never transferred the assets in the first place.

Working with an experienced estate planning attorney helps ensure that each trust is structured uniquely using different funding sources, timing, or distribution terms to comply with IRS standards.

When to Consider a SLAT

A Spousal Lifetime Access Trust is particularly beneficial for couples with taxable estates who want to take advantage of the current high federal estate tax exemptions, which are set to increase from $13.99 million per person to $15 million for 2026. It’s also ideal for individuals who wish to preserve family wealth without cutting off financial flexibility for their spouse.

In addition, SLATs can complement other estate planning tools, such as irrevocable life insurance trusts or charitable trusts. By layering strategies, couples can maximize protection and tailor distributions to meet both personal and philanthropic goals.

Balancing Flexibility and Finality

Because SLATs are permanent, they require both foresight and discipline. Once assets move into the trust, they are beyond the grantor’s reach. However, that finality is what gives them their power. The trust ensures that estate taxes, legal claims, or financial mismanagement will not erode assets.

Spousal Lifetime Access Trusts can protect your partner when you are gone. Couples who thoughtfully design SLATs often find peace of mind knowing that their partner will be cared for, no matter what happens. If you would like to learn more about SLATS, please visit our previous posts.

Reference: Forbes (Sep. 30, 2025) “Spousal Lifetime Access Trusts: A Strategic Estate Planning Tool”

Portability Doesn’t Happen Automatically

November 13, 2025

Portability allows a surviving spouse to use any “leftover” estate tax exclusion from the first spouse to die. It’s a powerful estate planning technique, according to a recent article in Think Advisor, “This Estate Tax Filing Mistake Can Cost Clients Millions.” However, portability doesn’t happen automatically.

To secure portability, the executor of the first deceased spouse’s estate must file a Form 706—known as an estate tax return—to elect portability, and it must be filed in a timely manner and be properly prepared.

This is necessary even if no estate tax is otherwise due from the deceased spouse’s estate. Given the high federal estate tax exemption, most affluent couples nearing the threshold don’t need to file the form. However, it’s still worth filling it out. Here’s why.

A husband who dies with $5 million in assets passes that along to his wife, who may have $10 million of her own. If she lives another 20 years and is invested in markets, her wealth upon her death could be very close to or over the maximum estate tax exemption for a single person. If she secures portability at the time of her husband’s death, she can use his remaining estate tax exemption amount and avoid significant estate tax when passing wealth onto her heirs.

Even if the first spouse to pass doesn’t come close to the federal estate tax threshold, it still makes sense to take the right steps to secure portability. A recent Tax Court case illustrates how this can go wrong if not done correctly. A successful midwestern business owner died, and the form wasn’t filled out correctly. The filing mistake cost heirs an additional $1.5 million in estate taxes from the surviving spouse’s estate.

The deadline to elect portability of a deceased spouse’s unused federal estate tax exemption is nine months after the date of death. While your estate planning attorney can request a six-month extension, it’s best to do this in a timely manner. If the estate isn’t otherwise required to file an estate tax return, you can use the Revenue Procedure 2022-32. This was added after many estates failed to file for portability because they didn’t realize it was needed until after the federal estate tax return was due.

This process is not easy and involves several important steps, especially if any of the first-to-die spouse’s assets flow to anyone other than the surviving spouse or a charity. In these situations, assets flowing out of the first estate must be assigned a fair market value using a valuation professional.

The IRS provides a valuation method for estates filing solely to capture portability. An executor may use a good-faith estimate of the value. However, securing a professional valuation may be recommended by your estate planning attorney.

The Tax Court case referred to above illustrates how this process can go wrong. The assets passed down by the first spouse to die went to other family members, not her spouse or a charity. A proper valuation was not done. The executor also applied for an automatic extension to file Form 706 but failed to mail the return until five months after the extended deadline. There are some instances when the IRS provides a “safe harbor” for late filing. However, this only applies when the value of the first deceased spouse’s estate is less than the applicable exclusion amount. The return was not complete, nor was it properly prepared.

Portability is a beneficial option and shouldn’t be missed, even when it seems unlikely to be needed. Just remember – portability doesn’t happen automatically. An experienced estate planning attorney should be consulted to protect the estate upon the death of the first spouse to secure portability. If you would like to learn more about portability and estate planning, please visit our previous posts.

Reference: Think Advisor (October 15, 2025) “This Estate Tax Filing Mistake Can Cost Clients Millions”

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A Cross-Border Strategy is Needed for Estate Planning with Assets Overseas

November 11, 2025

Ultra-high-net-worth families often live, invest and give across borders. A plan that works in one country can misfire in another. Different rules on domicile, tax residency, marital property and forced heirship can alter who inherits and how much tax is due. Institutions may also block access to accounts until local requirements are met. A cross-border strategy is needed for estate planning with assets overseas. It brings these moving parts into one coherent framework, so heirs receive what you intend with fewer delays and fewer surprises.

Where Plans Break Across Borders

Countries define domicile and tax residency in different ways. One country may view you as a resident based on days present, another based on ties such as a home or family. Several civil law jurisdictions enforce forced heirship, which reserves a portion of an estate for children or a spouse regardless of what your will says.

Community property and separate property systems divide marital wealth differently. Without alignment, the same asset can face competing claims or double taxation. Bank secrecy and data rules can also slow access, especially when fiduciaries lack translated and apostilled documents.

Building A Multi-Jurisdiction Framework

Begin by documenting where you are treated as tax resident and where you are domiciled. Keep residency certificates, visa records and professional analyses that explain treaty positions.

Next, identify succession rules that could override your choices. Some jurisdictions allow you to elect the law of your nationality or habitual residence to govern your estate. Make that election clearly in your will or trust if it is available and ensure that each country where you hold assets will honor it.

Align legal structures with asset locations. Company shares, private funds and real estate often benefit from situs-appropriate holding entities or trusts that are recognized locally.

Confirm whether the jurisdictions you care about recognize common law trusts, civil law foundations, or both. Where recognition is limited, consider alternatives such as shareholder agreements, life insurance wrappers, or local testamentary tools.

Coordinating Fiduciaries and Access

Execution details matter. Appoint executors and trustees who can act in each country or name local co-fiduciaries where required. Prepare notarized and apostilled copies of core documents and translations into the languages your institutions require.

Maintain a secure inventory of accounts, safekeeping locations and key relationships, along with device passcodes and instructions for two factor authentication. These access steps are as necessary as the legal documents, since many institutions will not release information without them.

Philanthropy, Art, And Liquidity

Cross-border philanthropy can trigger registration, reporting, or withholding. Decide whether to use a single foundation, parallel entities, or donor-advised funds in more than one country, for art, yachts, aircraft and collectibles, track situs, export and cultural property restrictions and insurance conditions.

Plan liquidity for taxes that may be due before private business interests or real estate can be sold. Consider credit facilities, life insurance, or staged distributions to avoid forced sales at a discount.

Using Multiple Wills Safely

Many families benefit from separate wills for different countries. Each will should cover only assets in its jurisdiction and should state that it is limited in scope so it does not revoke the other will. Coordinate signing formalities, witnesses and governing law choices. Keep originals and certified copies in a location where fiduciaries can easily access them.

How An Estate Planning Law Firm Can Help

An estate planning law firm with cross-border experience can map domiciles and residencies, make governing law choices where permitted and tailor trusts or entities that local courts and registries recognize. A cross-border strategy is needed for estate planning with assets overseas. If your life spans more than one country, schedule a consultation so a lawyer can align documents, structures and access protocols before a crisis forces hurried decisions. If you would like to learn more about estate planning for assets overseas, please visit our previous posts.

Reference: Forbes (September 24, 2025) “Cross-Border Estate Planning Guide, Essential Strategies For Ultra High-Net-Worth Families”

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Keep Certain Assets Out of a Trust to Avoid Probate

October 30, 2025

Living trusts are often praised as the cornerstone of avoiding probate. By transferring assets into a trust, individuals can ensure a smoother transition of wealth to heirs, often bypassing costly and time-consuming court proceedings. Yet, despite their benefits, not all property is well-suited for titling in a living trust. Including the wrong assets can create unintended tax consequences, legal complications, or unnecessary administrative burdens. It is wise to keep certain assets out of a living trust to avoid probate.

Understanding Living Trusts

A living trust is a legal entity that holds assets during a person’s lifetime and directs their distribution upon death. It provides flexibility, privacy, and efficiency compared to a will. However, it is not a one-size-fits-all solution. Certain assets are best kept outside of the trust to ensure they function as intended.

Retirement Accounts and Living Trusts

One of the most common mistakes in trust planning is transferring retirement accounts, such as IRAs, 401(k)s, or pensions, into a living trust. Federal tax rules treat these accounts differently, requiring that they remain in the individual’s name until withdrawal or distribution.

If a retirement account is retitled in the name of a trust, it could trigger immediate taxation of the full balance. Instead, individuals should use beneficiary designations to transfer these assets directly to their heirs, preserving tax advantages such as “stretch IRA” benefits where applicable.

Vehicles and Living Trusts

Cars, trucks, and other vehicles are generally poor candidates for trust ownership. The administrative burden of retitling, insurance complications, and the frequency of buying or selling make them impractical to place in a trust.

In most states, small estate provisions allow vehicles to pass outside of probate without issue. Unless a car is a valuable collector’s item or part of a business, keeping it in personal ownership usually makes more sense.

Health and Medical Savings Accounts

Like retirement accounts, Health Savings Accounts (HSAs) and Medical Savings Accounts (MSAs) have unique tax treatments that do not align with trust ownership. Instead, owners should assign beneficiaries directly through the account provider. Upon death, the funds transfer smoothly to the named beneficiary.

Assets with Named Beneficiaries

Life insurance policies, payable-on-death (POD) bank accounts, and transfer-on-death (TOD) securities accounts already bypass probate when a beneficiary is named. Including these assets in a trust is redundant and can even complicate matters. Ensuring that beneficiary designations are up to date often provides a more straightforward path.

Mortgaged Property

While real estate is often placed into a trust, property with outstanding mortgages requires careful planning and consideration. Transferring a home with a mortgage into a trust may trigger concerns or due-on-sale clauses from lenders. Proper legal guidance ensures compliance with both trust law and lending agreements.

When to Seek Guidance

It is wise to keep certain assets out of a living trust to avoid probate. Estate planning is a deeply personal process, and what works for one family may not be suitable for another. An estate planning attorney can help evaluate which assets should be placed in a trust and which should remain outside. They also ensure that excluded assets are transferred through other probate-avoidance methods, such as beneficiary designations or joint ownership structures.

If you are considering creating or updating a living trust, consulting with an estate planning attorney ensures your trust is both practical and efficient. If you would like to learn more about placing assets in a trust, please visit our previous posts.

Reference: Yahoo Finance (September 11, 2025) “If you want your kids bypass probate when you die, here are 5 assets to avoid putting in a living trust”

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Strategies to Avoid Disputes Between Siblings

October 28, 2025

Inheritance disputes are among the most common causes of family conflict following the death of a parent. While parents may assure children during their lifetime that property will be divided evenly, the legally binding estate plan can tell a different story. This gap between promises and plans is at the heart of many sibling battles. There are strategies to avoid estate disputes between siblings.

Why Promises and Plans Diverge

Parents often express intentions informally, believing verbal assurances are enough. Yet without clear documentation, courts follow the written will, trust, or beneficiary designations. This can leave some siblings feeling betrayed when the estate plan doesn’t reflect the verbal promises made.

Confusion also arises when parents alter their estate plans late in life. A parent may gift a home, business, or financial asset to one child, sometimes without consulting the other children or the rest of the family. While these actions may be legally permissible, they can sow resentment among siblings who expected equal treatment.

Common Sources of Estate Disputes

Sibling disputes over inheritances often emerge from several recurring scenarios:

Unequal distribution of assets: One sibling inherits property or financial assets of greater value than others.
Unclear estate documents: Ambiguous or outdated wills can spark conflicting interpretations.
Blended families: Children from multiple marriages often have different expectations about inheritances.
Caregiver favoritism: A child who cares for a parent may be left more than siblings, leading to accusations of undue influence.

When these disputes escalate, they often result in costly litigation. Estate litigation can drain estate assets and deepen rifts between siblings.

The Legal Weight of Written Documents

Courts prioritize written estate documents over verbal statements. Even if a parent promised to divide assets evenly, what matters legally is the signed will or trust. Similarly, beneficiary designations on retirement accounts or insurance policies override the will. This reality often surprises families who believed verbal promises carried legal weight.

For example, a mother may assure both children that they will split her estate evenly. Later, however, she gifts a valuable piece of real estate to one of her children. If the property transfer was executed correctly, the other sibling may have no legal recourse. The sense of unfairness is real, but the law generally enforces the written transfer.

Preventing Sibling Conflicts Through Planning

Parents can take several steps to prevent estate disputes among their children:

Document Intentions Clearly:

Estate plans should leave no ambiguity. Wills and trusts must accurately reflect the parents’ true wishes, and updates should be made after major life events, such as remarriage, the birth of grandchildren, or significant asset purchases.

Communicate With Family:

Conversations about estate planning can be uncomfortable, but they reduce the chances of misunderstandings later. Parents should explain their decisions and the reasoning behind them, especially if one child will inherit differently.

Use Legal Safeguards:

Estate lawyers can help draft documents that withstand challenges. For instance, “no-contest” clauses discourage heirs from disputing the plan. Parents can also record their reasoning in writing to strengthen the validity of their choices.

The Role of an Estate Planning Lawyer

Estate planning lawyers play a key role in bridging the gap between family expectations and legal realities. They ensure estate documents are enforceable, anticipate areas of potential conflict, and advise on tools such as trusts to equalize distributions.

If your family is facing uncertainty or strained sibling relationships over inheritance promises, there are strategies to avoid estate disputes between siblings. Consulting an estate lawyer early can help preserve both financial assets and family bonds. If you would like to learn more about estate disputes, please visit our previous posts.

Reference: MSN (14 September 2025) “My parents promised to split their estate 50/50, but my mother gave my brother real estate. Is that fair?”

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Your Time to File for Probate Is Limited

October 16, 2025

When someone dies, their estate must be settled according to state probate laws. Probate is the legal process of validating the will, paying debts and distributing assets. While some estates qualify for simplified procedures, many must pass through formal probate, which involves courts and strict timelines. Your time to file for Probate is limited.

Every state sets deadlines for when probate must begin, often ranging from a few months to a year after death. Missing these deadlines can complicate estate administration, leading to penalties, delayed distributions, or even lawsuits among heirs.

Filing Requirements Vary by State

Probate rules are not uniform. Some states require filing within 30 days of death, while others allow several months. Deadlines also depend on whether the estate is small, whether a valid will exists, or whether someone contests the estate. For example, some states permit informal probate for estates under a certain dollar threshold, while others require a complete process regardless of the estate’s size.

Even when the court allows more time, creditors and beneficiaries may push for prompt action. Early filing reduces risks of disputes and preserves estate value.

Why Families Delay Filing Probate

Families often delay probate for emotional reasons. Grief, confusion about the process, or strained relationships among heirs can cause hesitation. Sometimes families assume that because they agree on distribution, probate is unnecessary. Failing to follow legal steps can invalidate asset transfers and expose heirs to potential liability.

Other times, families don’t realize the clock is ticking. Without timely filing, creditors may pursue claims directly, or heirs may face costly court battles in the future.

What Happens if You Miss the Deadline?

Missing a probate deadline can create serious complications:

Beneficiaries may lose rights to certain assets if claims expire.
Creditors may have longer windows to pursue unpaid debts.
Courts may impose additional oversight, requiring more hearings and paperwork.
Heirs may become personally liable if they use estate assets before resolving creditor claims.

In rare cases, failing to file within the statutory time can prevent probate altogether, leaving assets stuck without a clear path to transfer.

Preparing Before Filing Probate

While deadlines are strict, families should prepare carefully before filing. This includes:

Gathering the death certificate, will and estate documents
Identifying all assets and liabilities
Reviewing state rules for exemptions, such as small estate affidavits
Consulting an attorney to determine whether the estate qualifies for simplified probate

Being organized before filing not only ensures compliance but also prevents costly mistakes once proceedings begin.

The Role of Probate Attorneys

Probate attorneys guide families through filing deadlines, paperwork and hearings. They help identify which deadlines apply, prepare petitions and ensure that creditors and beneficiaries are properly notified. Attorneys also protect executors from liability by ensuring that debts and taxes are settled before distributing assets.

For complex estates or when heirs disagree, having a lawyer is crucial. An attorney can keep the process on track and avoid missed deadlines that might otherwise derail the estate’s settlement.

Your time to file for Probate is limited. If you have recently lost a loved one, it is critical to act quickly. Contacting a probate lawyer ensures that deadlines are met and the estate is handled in compliance with state law. If you would like to learn more about probate, please visit our previous posts.

Reference: NerdWallet (Aug. 17, 2025) “How Long Do You Have to File for Probate After a Person Dies?”

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Preparing an Estate Plan when Children Live in Another State

October 7, 2025

Zoom calls, text groups and old-school phone calls make staying in touch with adult children and grandchildren far easier than in the past. However, there are some things where being in a different state requires extra care. Preparing an estate plan when children live in another state, is one example. When the time comes to set an estate plan in place, it’s critical to know how estate plans are managed in other states, according to a recent article, “Estate plans can get complicated with out-of-state children” from the Cleveland Jewish News.

Every state has its own rules, and, in some cases, every local court has its own rules. In one state, the probate court may be fine with having an out-of-state executor. However, some states may not allow an out-of-state executor without having an additional in-state co-executor. Alternatively, they may require the out-of-state executor to post a bond, which can incur additional costs and be invasive, as it involves a credit check.

The easiest way to avoid this is by having estate planning in place long before it’s needed. This may not be top of mind when people are in their 40s or 50s. However, the general rule is that if you have assets, you need an estate plan.

Even college students or recent grads who only have savings and checking accounts need an estate plan. Parents of students over 18 need to be designated as their child’s health care power of attorney, so they can make medical decisions for their child. Anyone going off to college needs to have both a financial POA and a healthcare power of attorney document.

Suppose all the children live out of state. In that case, it is a good idea to establish a relationship with an estate planning attorney and other financial professionals so they can step in if the family can’t be present to pull together the many documents needed to settle an estate. While it’s not unusual for an estate planning attorney to go to a deceased person’s home and dig through their paperwork to find tax returns and financial records, it’s not ideal. It would be far better for family members to take care of these tasks in advance.

How property is left to heirs is also governed by state law and could result in different family members receiving different amounts. For example, Ohio doesn’t have an inheritance tax, but Pennsylvania does. One heir could find their inheritance decreased significantly because of an inheritance tax, while another would receive their inheritance tax-free.

You’ll want to be sure there are no ambiguities in the estate plan so the executor will have clear directions. Preparing an estate plan when children live in another state doesn’t have to be hard. A conversation with your estate planning attorney and executor in advance of your death could feel a bit macabre. However, it could prevent a host of problems in the future. If you would like to learn more about estate planning, please visit our previous posts.

Reference: Cleveland Jewish News (Sep. 10, 2025) “Estate plans can get complicated with out of state children”

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Protect Your Child’s Inheritance in a Second Marriage

September 24, 2025

Having a revocable trust may or may not protect assets for biological children on the death of their parent if the parent has remarried. This is why a recent article from the New Hampshire Union Leader, “Know the Law: Ensuring Assets go where you want in your revocable trust,” advises readers to speak with an experienced estate planning attorney about how to protect your child’s inheritance in a second marriage.

Surviving spouses in many states are permitted to claim an elective share of their deceased spouse’s estate to avoid being disinherited or being inadequately provided for when the spouse dies. If the decedent has children, the surviving spouse is entitled in some states to one-third of the probate estate. In some states, revocable trust assets are not automatically included as part of the decedent’s probate estate.

If there are assets in a revocable trust for children, they may be protected if the surviving spouse waives testate distribution and decides they’d rather claim the statutory elective share. Under certain circumstances, the surviving spouse could ask the court to set aside transfers of assets made into the revocable trust. If the court determines the transfers were invalid, then the revocable trust will become part of the probate estate and part of the elective share calculation.

In some states, the scope of the statutory elective share automatically includes assets in revocable trusts. Suppose someone moves from a state where this is not the case to a home in a state where revocable trust assets are considered part of the probate estate for elective share purposes and the estate is probated in the new state. In that case, that portion of the revocable trust assets will be available to the surviving spouse.

If the revocable trust isn’t fully funded and the assets intended to go into the trust remain in the spouse’s name, such as bank accounts and real estate, those assets will also be part of the probate estate.

Depending upon the plan rules and state laws, surviving spouses may also automatically be the beneficiary of any qualified retirement accounts, like 401(k)s or 403(b)s. Unless the spouse waives their right to the survivor benefits, they are, in most cases, the only person who will receive the pension assets.

Concerns about not disinheriting children from a prior marriage are often addressed through estate planning. However, a pre-nuptial agreement could also define what each spouse would be entitled to in the event of a divorce or when each spouse dies.

A consultation with an estate planning attorney in your state should take place to protect your child’s inheritance in a second marriage. It’s best to address the issues before walking down the aisle to prevent any misunderstandings in the future and start a new marriage with a clean slate. If you would like to learn more about remarriage protection, please visit our previous posts.

Reference: New Hampshire Union Leader (Aug. 18, 2025) “Know the Law: Ensuring Assets go where you want in your revocable trust”

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Category: Beneficiaries