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Six estate planning myths
We are all guilty of putting something off to a later date. And if there is one thing that is very high on that list, it is taking care of our estate plan. Often, we just don’t want to think about our death, and throughout most of our lives,
I Have a Will; My Estate Won’t Go Into Probate
we don’t consider our mortality. But none of us are getting out of this thing alive. We have all lost people, and always too soon.
Getting past procrastination often re- quires understanding precisely what we
All wills are subject to probate. A last will and testament is your wish as to who receives your estate and under what conditions. If you have a will and assets in your name, they must go through probate for distribution. Probate is a long and expensive process that lasts an average of 18–24 months and costs thousands of dollars in at-
TOM TUOHY
must do. When it comes to estate planning, there are sev- eral misconceptions. And they can be very costly. Here are a few:
I Don’t Own Enough to Need an Estate Plan
If you have assets that total more than $100,000 in value, your entire estate is subject to probate court. A small estates affidavit can distribute an estate with a collective estate value of less than $100,000.
Probate exists because no one can sign our name for us. If you die with assets in your name, a probate court judge issues an order, allowing an executor to be authorized to sign your name and distribute your assets to your beneficiates or heirs. You can appoint someone to sign your name now, and you should have a current durable power of attorney that selects a trusted agent. However, that document is revoked by law upon death, so it cannot transfer assets at death.
torney fees and bond and filing costs.
I Have Everything in Joint Tenancy
It is true that if you have a property title in more than one name, such as in your name with your spouse, the title to the property will pass to the surviving joint tenant by right of survivorship. However, upon the death of the survivor, the property must go into probate.
Joint tenancy is also risky. You should never add a new name to a property title. Your property would be subject to that person’s liabilities, lawsuits and claims. Also, if you add someone other than your spouse to your property title after the purchase, there could be costly capital gains tax conse- quences.
Finally, even among spouses, if you hold a property title in joint tenancy, the survivor may add a new spouse to the title. If your surviving spouse dies before the new spouse, then your property is going to the new spouse. And that is not something either of you had in mind.
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FOP
Benefits Plan