We’ve discussed the important of a will in determining who gets your assets when you die. However, your 401(k)* or IRA, along with other assets like life insurance and annuities, often have a Beneficiary Form.

This form will take precedence over what your will says - hence the subject line. Because of that, often the beneficiary form is the most crucial document - and with that comes the opportunity for costly mistakes…

One of the most common questions I get on the topic of estate planning is “Do I need a trust?”

When I talk about a trust here, I am talking about a standard Revocable Living Trust. I am not talking about the more complicated irrevocable trusts. One of the main purposes of an irrevocable trust is to avoid estate taxes. With the federal exemption currently over $11 million per person, this is not as big a concern as it used to be. 

So why might you need a trust?

“I would just love to spend a few hours this evening having hard conversations about what happens if I die.” – No one ever

This is not a fun or enjoyable topic. It involves planning for an event that you hope doesn’t happen prematurely and is a long way off, so it gets booted to the bottom of the to-do list. From experience, improper planning can have dire consequences even for families that seem to have simple family situations.