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There is actually a huge diversity of types of trusts, and part of estate planning is picking the ones that work best for you, your family, and your goals. In terms of passing your values to the next generation, educational and incentive trusts can promote or discourage certain life choices. For example, someone who prizes their family vacation memories might create a fund for that purpose. Additionally, charitable trusts or foundations can pass along your personal mission of philanthropy.

YES! A million times yes. Even an 18-year-old high school senior needs an estate plan. Once a child attains the age of 18, she is legally an adult and must make her own health care, financial, and legal decisions. Parents are powerless to act on behalf of their adult children without legal documentation. Plus it makes them feel important while at the same requires them to beginning thinking and planning as an adult.

There is no cut-and-dry rule for what you should and should not tell your children about your estate planning, but it is usually a good idea to err on the side of more information rather than less. It is a good idea to tell your children the reasons behind your decisions, so they understand how your values translate into your plan. Sharing your perspective far in advance using important documents like your health care directives can also reduce stress on your family in a difficult moment down the road. It is also an excellent way to reduce (or even eliminate) family infighting that sometimes occurs after death if your children have heard directly from you about the reasons for your decisions.

BTW, when we finally disclosed to my girls the value of my life insurance policy, they looked at me like hungry hyenas staring a raw meat. Then they looked at their mother as though they were denied the winning PowerBall ticket ;-)

We can easily amend your current estate plan to include a pet trust; in fact, most pet trusts exist as part of a larger revocable living trust-based plan. If you want or need a separate pet trust, we can certainly structure it that way, but most of our clients prefer us to include the pet component within their existing plan.

Your pet trust includes instructions for care, and these instructions can be specific. If your dog needs to be fed a certain type of food at precise times of day, prefers a special toy, has a specific bedtime or needs to be walked three times a day in a specific park near your home, you can include all this information in the instructions. You should also talk with the person you plan to appoint as a caretaker and explain the situation, so he or she knows what to expect. You can even have your appointed caretaker tag along for a couple of days to get familiar with your dog’s routine.

We can certainly help! The specifics about how much money to leave for your pet will vary greatly depending on your specific circumstances, but we can will help you create an itemized list to ensure there’s enough to cover everything. Factors to consider will include how long your pet is expected to live, the current costs for caring for your pet, costs for the caretaker/trustee, etc. As for any surplus, you can easily designate where any extra money goes after your pet passes on (for example, the extra could be donated to your favorite animal charity), so you can rest assured that any extra will go where you think best. Depending on the amount being set aside and your other assets, we can also work with your financial advisor to ensure that your pet trust is completely coordinated with your other financial objectives.

Probate is the process by which the court validates the authenticity of a will; appoints an executor (aka personal representative); and supervises the settlement of an estate, including the payment of bills, filing of tax returns, and transfer of assets to beneficiaries. If no will is presented, the court will appoint an estate representative, called an "administrator." The administrator carries out the same duties as an executor; but when a person dies without a will the court must determine the heirs of the deceased. The complexity and duration of this heirship determination process varies from state to state, but typically the remainder of the probate process, such as the payment of taxes and bills, remains the same whether there was a will or not. Of course, estate assets are distributed to heirs at law as determined by the state's intestacy laws, not beneficiaries chosen by the testator (aka the deceased who created the will).

Only assets in your individual name or payable to your estate will go through probate. Many folks use a (fully funded) revocable living trust to avoid probate. In addition, contract assets such as life insurance, retirement accounts, and annuities as well as assets owned by joint tenants with rights of survivorship avoid probate as well.

Sounding like a lawyer again, but it depends. Many people, but not all, think so. The difficulty and expense of probate varies from state to state (and in some jurisdictions, county to county) and from family to family because of differences in state laws, family goals and personalities, and assets. Many clients wish to avoid probate because it’s a public process, time consuming, and costly. We’ll take a look at your entire situation together and let you know whether a probate avoidance plan should be part of your estate plan.

First reason, because you can! Next because most people want to avoid probate because it can include high fees and costs, significant time delays and stress, and public dissemination of private information. What do I mean by public? In most cases, court records are public records, meaning that anyone could get a copy of your will, the estate’s inventory, and other information you might wish to keep private. The ease of accessing this information does vary from state to state, and sometimes even from county to county. Some places even have online dockets, allowing anyone with an internet connection to see a listing of your assets, debts, beneficiaries, and who got what. If you are like most people, you want to keep your family affairs and finances private, so probate should be avoided.

They may be getting along well now, but there is no telling what will happen after your death. The court records are full of cases that could be said to have begun with these exact facts. Estate planning puts you in charge and allows you to make sure everyone that is important to you - your new spouse and your children from a prior marriage - understands your wishes. This greatly reduces the risk of conflict and, in some cases, can completely eliminate conflict.

Joint tenancy does avoid probate and is often better than no planning. However, if you and your spouse were to die at the same time then the joint tenancy is “broken” and your respective halves would have to go through probate. Additionally, if your new spouse survives you, then he or she owns all of the property that was jointly owned. Even if the two of you agreed that your children from a prior marriage should be supported or left an inheritance, your new spouse owns the property and can do whatever he or she wants with the property. This could completely disinherit your children from a prior marriage.

Even if none of your children are divorced now, the statistics show that many couples will experience a divorce. Estate planning reduces the risk that your death could be a financial windfall for a soon-to-be-ex-spouse, which can happen if you die at the “wrong” time. It’s wise to hope for the best but plan for the worst, so that your family can be fully protected.

We can do that together. We will help you set up an estate plan that protects and provides for whomever you’d like - often that’s children and, sometimes, a second or third spouse. Your estate plan, likely including trusts, will be carefully crafted to balance the interests of your children as well as your spouse. Without proper planning, too many parents accidentally disinherit their beloved children and cause havoc (and expensive lawsuits) in blended families. But with proper planning, you can take care of everyone’s needs in an equitable way that reduces the risk of expensive conflict.

The intersection of prenups and estate planning is complex, so every case will vary. But, in many cases there are strategies that can be used to help you provide for your new spouse while also ensuring protection for your children. The worst thing you can do is assume that there is nothing that can be done.

In the estate planning world, the term “disabled” refers to an individual’s incapacity or the inability to manage day-to-day business affairs such as managing and protecting assets, signing papers, paying bills, and filing taxes. “Disability” or “incapacity” does not mean you are laid up on the couch with a bad back; instead, it means that you don’t have the physical and mental capacity necessary to manage your personal business.

There are two options for maintaining control during a period of disability; and, often, we recommend the use of both: power of attorney and revocable living trust.

A living will is used to avoid medical heroics such as life support at the end of life.

Assuming you have an estate plan, your agent under your health care power of attorney has the power to make healthcare decisions for you if you are unable to make those decisions yourself. Otherwise, the court could end up appointing someone.

Disability is the perfect example of why you need to appoint trusted helpers. If you have an up-to-date power of attorney, the named agent may be able to manage your finances, including paying your bills. Unfortunately, if you do not have a legally documented disability/incapacity plan, your loved ones will battle it out in court and a judge will decide who’s in charge. Because power of attorney documents are often turned down, we use the belt and suspenders approach for many clients, including a trust with disability provisions. TIP: Be sure to name a contingent agent in case your primary agent is unable or unwilling to serve. The same with disability trustees. Be sure to name successor disability trustees in case your named trustees are unable or unwilling to serve when the time comes.

Enter your answer here

While you do have some legal services at your disposal because of your military service,

sometimes the basic estate planning offered by your JAG office is not enough to carry out your specific wishes and truly protect your family. By working with an experi enced estate planning attorney, we can help ensure that your individual situation is evaluated and a custom plan is crafted and implemented to meet your needs.

Although $400,000 seems like a lot of money, it can be depleted quickly. Depending on your

unique situation, your family may need more than that. Are you married? Do you have children? The cost of raising a child to age 18 is approximately $250,000 (at least), so that life insurance could be eaten up quickly. Will your family need to move if you pass away? Does your spouse currently work, and will he or she need to return to work and then find child care? The passing of a loved one can throw a family into financial turmoil. With the proper planning, it is better to leave your family with more resources, appropriately protected, than too few.

YES. Estate planning is not a one and done task. Depending upon how long it has been since you had the documents prepared, it is always a good idea to have them reviewed by an experienced estate planning attorney to make sure that your wishes are adequately contained in the old documents. Life is full of changes, and it is important that your estate planning documents reflect your life and needs as they are right now.

Regardless of your financial status, estate planning is important for everyone. It not only covers what to do with your assets when you have passed away, it also includes documents such as financial and medical powers of attorney that will authorize individuals to act on your behalf if you are not able to due to incapacity or being out of the country.

No. A personal representative/executor only has authority after you die. This is because in a Will, a testator/testatrix (i.e., you) provides instruction as to who shall serve as personal representative/executor to settle the estate and how assets will be distributed. A power of attorney, not a will, is used to provide assistance, such as signing documents for you, while you are alive, but sick.

To stay in control of your assets and avoid court interference as much as possible, you should have a strong, up-to-date estate plan in place. This includes having an executed will, health care power of attorney, and a financial power of attorney. Unsigned or incomplete documents do not help – be sure you finalize things. Let your family know that you have done estate planning, where you have stored your documents, and who to contact (i.e., the attorney that helped prepare your documents) should you become incapacitated or die. Regarding storage, if you are a Maryland resident, your will can be stored for safekeeping with the Register of Wills for your county.

No. While your trust can be used to provide asset protection for your beneficiaries after you die, it cannot be used to protect your own assets during your lifetime. You need Medicaid planning to protect assets from the nursing home.

An important part of the estate planning process is deciding who will help you manage your responsibilities if you are no longer able to and when you are gone. Here are the key roles that you need to assign.

Healthcare Power of Attorney

What this person does

• Steps in to make health care decisions for you when you cannot make such decisions for yourself

• Makes decisions ranging from ongoing care or basic medical decisions to emergency decisions in a life or death situation

Questions to consider

• Does this person understand what I would want done, and will he or she stand by my wishes?

• Does this person live nearby, or would he or she be able to live nearby if my situation required it?

• Is this person logical in high-stress times and able to make medical decisions?

• What experience has this person had making other health care decisions? Will he or she know what questions to ask and how to be my advocate? Can this person be a strong advocate for me?

• Is this person close to me and comfortable making a health care decision for me? Do we have compatible opinions about health care treatment?

• Do I trust this person to carry out my wishes if I am unable to make decisions for myself?

Durable Power of Attorney

What this person does

• Steps in to make financial decisions for you when you cannot make them for yourself

• Needs to be someone you trust to carry out all types of financial decisions such as paying bills or making deposits

Questions to consider

• Do I trust this person to manage my finances if I am unable?

• Will this person be available to make these decisions? (Consider where this person lives, what he or she does for a living and how many other commitments he or she may already have.)

Personal Administrator (i.e., Executor)

What this person does

• Works with your attorney and other financial advisors to settle your financial affairs after your death. Includes filing taxes, paying bills and making sure all of your property goes where you want it to go.

• Either does the work or hires professionals to help with taxes and distribute assets and other notices required to be given by the estate. The Personal Administrator often works closely with the attorney. Unlike other positions, the Personal Administrator is entitled to payment for his or her time.

Questions to consider

• Is this person trustworthy, detail-oriented and able to handle paperwork?

• Does this person have the time to take on the role?

• Does this person live close to where the estate will be settled and, if not, will that slow the process or create complications?

• Does this person have good financial sense? Can he or she work with professionals such as tax advisors and attorneys?

Trustee

What this person does

• Takes charge of the assets placed in a trust

Questions to consider

• Do I trust this person to make sound decisions about the money I am leaving to a minor or other party?

• Does this person have compatible financial sense?

• Will this person deal with my beneficiaries fairly and competently?

• Does this person have values similar and consistent with mine?

Guardian of a minor

What this person does

• Raises your children if they are still minors when you pass away

• Carries out your decisions about where your children live, where they go to school and all other matters regarding everyday living

Questions to consider

• If I were unable to raise my children, would I feel good about this person raising them in my place?

• Does this person have the living environment I would want for my children?

• Is this person willing and financially capable to raise my children?

Beneficiary

What this person does

• Receives the benefits or assets you leave behind

• Receives distribution of assets from the personal representative of the estate, as long as a beneficiary is an adult and there are no restrictions on the distribution

• Receives distribution of assets from the trustee, if beneficiary is a minor or the distribution has restrictions

Questions to consider

• Will this person use what I am leaving him or her in a way I feel good about?

• Do I have any reservations about this person receiving my gift? If the person is underage, has/had a drug or alcohol problem or a history of bad spending, consider options such as different trusts or investments that would pay a smaller specific amount over time.

Important Additional Considerations

Here are additional considerations to ponder as you decide who to name for each role:

• Consider each role separately and anticipate needing more than one person to fill each role. The qualities required to fill one role may not be the same qualities you need to fill another role.

• Consider naming a backup for each role in case the primary person is unable or unwilling to serve.

While it is important to carefully consider who you want in each role, do not wait for a "perfect decision." You are nearly always better to name someone now, knowing you can change your mind later. In other words, do not let waiting for "the best there is" keep you from naming "the best you have got."

Once you have decided who will fill each role, be sure to talk to each person so everyone knows you have chosen them and what is expected of them.

No. While your trust can be used to provide asset protection for your beneficiaries after you die, it cannot be used to protect your own assets during your lifetime. You need Medicaid planning to protect assets from the nursing home.

Perhaps one of the biggest reasons you are working on an estate plan is to minimize the stress and possible family drama after you pass. While your actual plan will go a long way toward doing that, one way to be more successful is to talk about your plans with those who will play a part in them. Let them know exactly what their roles mean and what they will be expected to do.

Here is a conversation guide to help you think through what you want to say. Keep in mind that these are just examples and you should make this as personal as possible and include additional examples if necessary to make the role clear.

I have asked you to be my Healthcare Power of Attorney.

What this means is that you will be the person who will: Step in to make health care decisions for me if I cannot make such decisions for myself.

I would like you to do this because: I know you will carry out my wishes. You are logical in high-stress situations. You have experience making health care decisions.

Circumstances when you would be needed are: If I were unconscious or incompetent to make health care decisions, you would act on my behalf. Decisions could range from ongoing care or basic medical decisions to emergency decisions in a life or death situation.

Additional information you might need to know includes: Why I have made the health care decisions I have and where any supporting documents are located.

I have asked you to be my Durable Power of Attorney.

What this means is that you will be the person who will: Step in to make financial decisions for me if I cannot make them for myself.

I would like you to do this because: I trust you to manage my finances. I know you will be available and willing to devote the time it takes to make these decisions.

Circumstances when you would be needed are: If I were unconscious or incompetent to make financial decisions, you would act ethically and responsibly on my behalf. You might need to pay bills, make deposits to or withdrawals from my investments.

Additional information you might need to know includes: Why I have made the financial decisions I have and where any supporting documents are located.

I have asked you to be my Personal Representative (i.e., Executor)

What this means is that you will be the person who will: Work with my attorney and other financial advisors to settle my affairs after my death.

I would like you to do this because: I trust you and know that you are detail-oriented. You have experience working with professionals.

Circumstances when you would be needed are: Settling my affairs after I die. This can include filing taxes, paying bills and making sure all of my property goes where I have decided it should go.

Additional information you might need to know includes: The process I have created with my attorney and when you should contact the attorney. Optional: How and when people are receiving items.

I have ask you to be my Trustee.

What this is that you will be the person who will: Take charge of the assets place in my trust. I would like you to do this because: I believe we share similar values. Therefore, I trust you to make sound financial decisions and deal fairly with beneficiaries. I believe we share similar values.

Circumstances when you would be needed are: If I have a trust, you will manage those funds for the person who receives the funds.

Additional information you might need to know includes: The plans I have made and decisions I would want made in different situations.

I have asked you to be my children's Guardian.

What this means is that you will be the person who will: Raise my children who are younger than 18.

I would like you to do this because: My children know you and love you, and I trust you. If I cannot raise them, I feel good about you doing it in my place. I know we share the same beliefs and values.

Circumstances when you would be needed are: Raising my children, deciding where they go to school and all other matters regarding everyday living.

Additional information you might need to know includes: Details about how I want my children to be raised.

I have asked you to be my Beneficiary.

What this means is that you will be the person who will: Receive benefits or assets I am leaving behind.

I would like you to do this because: I know you value what I am giving you and will use what I leave you in a positive way.

IMPORTANT: Depending on your family situation, you may or may not want to notify people you will be naming beneficiaries.

You may want to ask your attorney for additional tips on telling family members about these roles, and if there are any general procedures the law office follows. People will want to know the specifics of who to contact and how to reach them, especially if they need help outside of normal business hours.

Anticipate that there will be questions. If you do not know the answer, write the question down and follow up with your attorney and then discuss again with the person you have named.

The federal Bankruptcy Code protects up to $1 million of assets (adjusted for inflation every three years) held in IRAs. If you have a large sum of money in IRAs (both traditional and Roth IRAs), creditors may still take some of it. Inherited IRAs are typically not protected in bankruptcy.

Just because your retirement funds are held in an account by your employer does not automatically mean that the plan is an ERISA-covered plan account. For example, IRA-based plans like SEP (simplified employee pension) and SIMPLE (savings incentive match plan for employees) IRAs do not receive ERISA protection.

A standalone retirement trust, or SRT, is a special type of trust designed to be the beneficiary of your qualified retirement accounts like IRAs, 401(k)s, etc. During your lifetime, your ownership of and access to the accounts do not change. Upon your death, as long as you have properly named the SRT as the beneficiary on the appropriate beneficiary designation form, the trust will become the beneficiary. The trustee of the trust will then be in charge of withdrawing and managing the money received from the inherited retirement account according to the terms of the trust document.

In the United States, lawsuits are filed every few seconds, all year long, every year. We all have a bullseye on our back. Lawsuits commonly stem from car accidents, business failure, divorce, malpractice, tenants, slip-and-falls, bankruptcy, and the like. Without proper protection, inherited property and accounts can be seized for any number of reasons. Because retirement accounts are often one of the most valuable accounts that people own, ensuring that these special accounts are protected for your loved ones and beneficiaries is essential.

By all means, use your retirement funds as you think best. Even after you set up an SRT, you will have full control and the right to enjoy your retirement funds for years. The SRT is named as the beneficiary of your retirement account and will therefore receive funds only once you have died, leaving you free to spend the money as you see fit. If you are like most people, however, you will still have money in your retirement account when you die; that is when the SRT will protect your loved ones and their inheritance.

This is true and false. True that you are not required to name a beneficiary, but absolutely false that it is not a priority!

When you are asked to complete a beneficiary designation form, you need to fill it out as soon as possible. If you were to die without completing the beneficiary designation, the proceeds would either be distributed to your estate (requiring your loved ones to go through the costly, public, and time-consuming process known as probate) or directly to your closest living relative as determined by the terms of the life insurance policy. The specific rules of the life insurance policy determine which option would apply, but the ultimate outcome is the same: someone else would be choosing who gets the money, not you. You are given the opportunity through the use of a beneficiary designation form to determine who will receive the proceeds of your life insurance policy. Do not let someone take that choice from you.

Additionally, whoever is determined to be the rightful owner will receive a check for the full amount, unless the beneficiary is a minor, in which case the court will choose someone to hold on to the money for the minor until the minor reaches the age of majority (eighteen or twenty-one depending on your state). This leaves the money open to many vulnerabilities, like being spent on frivolous luxury items, taken in a divorce, or seized by creditors through a lawsuit or a bankruptcy.

There are several options when it comes to naming a primary beneficiary for your life insurance policy.

First, you could choose to name just one adult. At your death, after providing the insurance company with your death certificate and completing any required forms, your chosen beneficiary will receive a check for the life insurance policy’s death benefit.

Second, you could choose to name multiple adults as the primary beneficiary along with the percentage or share that you want each to receive (not to exceed 100 percent or the total value of the death benefit). For example, you could designate 50 percent to Jack Jones and 50 percent to Jill Jones.

Third, you could name the trust as the primary beneficiary. At your death, the trustee of the trust will receive the check from the life insurance policy and will then manage and distribute the money according to the instructions you have left in the trust agreement.

CAUTION: It is not wise to name a minor child as the beneficiary of a life insurance policy. Because a minor is not a legal adult, the child is not allowed to manage the money on their own behalf. In the event a sum of money would need to be paid to a minor, the court may have to appoint someone as a guardian or conservator to manage the money on behalf of the child until the child reaches the age of majority (eighteen or twenty-one years of age depending on your state.)

This is true and false. True that you are not required to name a beneficiary, but absolutely false that it is not a priority!

When you are asked to complete a beneficiary designation form, you need to fill it out as soon as possible. If you were to die without completing the beneficiary designation, the proceeds would either be distributed to your estate (requiring your loved ones to go through the costly, public, and time-consuming process known as probate) or directly to your closest living relative as determined by the terms of the life insurance policy. The specific rules of the life insurance policy determine which option would apply, but the ultimate outcome is the same: someone else would be choosing who gets the money, not you. You are given the opportunity through the use of a beneficiary designation form to determine who will receive the proceeds of your life insurance policy. Do not let someone take that choice from you.

Additionally, whoever is determined to be the rightful owner will receive a check for the full amount, unless the beneficiary is a minor, in which case the court will choose someone to hold on to the money for the minor until the minor reaches the age of majority (eighteen or twenty-one depending on your state). This leaves the money open to many vulnerabilities, like being spent on frivolous luxury items, taken in a divorce, or seized by creditors through a lawsuit or a bankruptcy.

This is true and false. True that you are not required to name a beneficiary, but absolutely false that it is not a priority!

When you are asked to complete a beneficiary designation form, you need to fill it out as soon as possible. If you were to die without completing the beneficiary designation, the proceeds would either be distributed to your estate (requiring your loved ones to go through the costly, public, and time-consuming process known as probate) or directly to your closest living relative as determined by the terms of the life insurance policy. The specific rules of the life insurance policy determine which option would apply, but the ultimate outcome is the same: someone else would be choosing who gets the money, not you. You are given the opportunity through the use of a beneficiary designation form to determine who will receive the proceeds of your life insurance policy. Do not let someone take that choice from you.

Additionally, whoever is determined to be the rightful owner will receive a check for the full amount, unless the beneficiary is a minor, in which case the court will choose someone to hold on to the money for the minor until the minor reaches the age of majority (eighteen or twenty-one depending on your state). This leaves the money open to many vulnerabilities, like being spent on frivolous luxury items, taken in a divorce, or seized by creditors through a lawsuit or a bankruptcy.

There are several options when it comes to naming a primary beneficiary for your life insurance policy.

First, you could choose to name just one adult. At your death, after providing the insurance company with your death certificate and completing any required forms, your chosen beneficiary will receive a check for the life insurance policy’s death benefit.

Second, you could choose to name multiple adults as the primary beneficiary along with the percentage or share that you want each to receive (not to exceed 100 percent or the total value of the death benefit). For example, you could designate 50 percent to Jack Jones and 50 percent to Jill Jones.

Third, you could name the trust as the primary beneficiary. At your death, the trustee of the trust will receive the check from the life insurance policy and will then manage and distribute the money according to the instructions you have left in the trust agreement.

CAUTION: It is not wise to name a minor child as the beneficiary of a life insurance policy. Because a minor is not a legal adult, the child is not allowed to manage the money on their own behalf. In the event a sum of money would need to be paid to a minor, the court may have to appoint someone as a guardian or conservator to manage the money on behalf of the child until the child reaches the age of majority (eighteen or twenty-one years of age depending on your state.)

Retirement accounts were created to give individuals the opportunity to set aside money from their wages, income tax-deferred, to fund their retirement. While the intent is that this money will be spent down over the course of your retirement, many people still have some money left in their account at death, and ultimately, this is what you want. The hope is that you do not spend all of your money in the retirement account before you pass away or else you will end up living on far less than you had budgeted for. Therefore, it is not only favorable but likely that there will be some money left in your retirement account at your death. And because everything you own at your death has to find a new home, a beneficiary designation gives you the opportunity to determine who will receive the remaining money.

NOTE: Depending on the type of retirement plan you are participating in and the rules in your state, you may be required to designate your spouse as the primary beneficiary, if your spouse survives you. In the event you want to leave the account to someone else, you may be required to get your spouse’s written consent.

If there is no money left in the retirement account, then the person you have named as the beneficiary will receive nothing. This is an important reason to keep an eye on your retirement account balance. If your intent is to leave a specific amount of money from your retirement account to a beneficiary, you should have a back up plan to fund this amount from another source in the event you spend through your retirement account.

Retirement accounts were created to give individuals the opportunity to set aside money from their wages, income tax-deferred, to fund their retirement. While the intent is that this money will be spent down over the course of your retirement, many people still have some money left in their account at death, and ultimately, this is what you want. The hope is that you do not spend all of your money in the retirement account before you pass away or else you will end up living on far less than you had budgeted for. Therefore, it is not only favorable but likely that there will be some money left in your retirement account at your death. And because everything you own at your death has to find a new home, a beneficiary designation gives you the opportunity to determine who will receive the remaining money.

NOTE: Depending on the type of retirement plan you are participating in and the rules in your state, you may be required to designate your spouse as the primary beneficiary, if your spouse survives you. In the event you want to leave the account to someone else, you may be required to get your spouse’s written consent.

If there is no money left in the retirement account, then the person you have named as the beneficiary will receive nothing. This is an important reason to keep an eye on your retirement account balance. If your intent is to leave a specific amount of money from your retirement account to a beneficiary, you should have a back up plan to fund this amount from another source in the event you spend through your retirement account.

FACT: At your death, the only ways that your partner can continue living in the home are if 1) your partner’s name is on the deed, 2) you owned the home and you executed a beneficiary deed or ladybird deed giving the home to your partner upon your death, 3) you owned the home and you named your partner as the recipient of your home in your will, or 4) your home is owned by your revocable living trust, and you named your partner as the recipient of your home or allow your partner to stay in the home for the remainder of your partner’s life.

If the home you live in is in your name alone and you fail to do any of these options, your home will be given to your family according to state law, leaving your partner homeless. If your partner wants to keep living in the home, your partner would have to rent or purchase the home from your family during the probate process. This assumes that your family would want to rent or sell your home to your partner; they are under no obligation to do so.

FACT: While adding your partner as a joint owner of your accounts and property is an easy way to guarantee that your partner will automatically become the soleowner without any involvement by the probate court, this option is not without its shortcomings. Because your partner will become the sole owner at your death, your partner gets to choose what will happen to the accounts and property upon their death, notyou. You have to trust that your partner will make a decision you would have agreed with. In addition, once your partner becomes a joint owner of the account or property, your partner’s debts become your problem. Should your partner be subject to a creditor claim or lawsuit, your jointly owned account or property could be seized to satisfy any outstanding judgment.

IT DEPENDS: If you are not married, your partner can inherit from you, but only if you proactively create an estate plan. If you do not do any estate planning, your state’s intestacy statute will determine who will receive your money and property, as well as the amount each legal heir will receive. Generally speaking, because the exact scheme is very state-specific, your money and property will go first to your surviving spouse (if you are married), then to your descendants (children or grandchildren), your parents, your siblings, and your siblings’ children, in that order, depending on who survives you. If the state law governs your estate plan, your partner will receive nothing because the state law does not include unmarried partners in their plan.

IT DEPENDS: If you are not married, your partner can inherit from you, but only if you proactively create an estate plan. If you do not do any estate planning, your state’s intestacy statute will determine who will receive your money and property, as well as the amount each legal heir will receive. Generally speaking, because the exact scheme is very state-specific, your money and property will go first to your surviving spouse (if you are married), then to your descendants (children or grandchildren), your parents, your siblings, and your siblings’ children, in that order, depending on who survives you. If the state law governs your estate plan, your partner will receive nothing because the state law does not include unmarried partners in their plan.