Estate Planning for Non-Traditional Circumstances

Nobody is going to live forever. This is undeniable fact of life and often times most of us simply don’t want to think about that will happen after we leave this life behind. But if you own assets such as real estate, a savings account, and other valuable possessions, it is imperative that these things be properly managed should you become incapacitated or deceased.

Idaho Falls estate planning services by a professional CPA will help you craft and implement an effective plan for what will happen with your assets. Good estate planning will help to minimize tax burdens imposed by state and federal agencies and allow your next of kin to enjoy the fruits of your hard labor. Without a properly executed will or power of attorney could end up costing you and your family thousands of dollars in taxes and forfeitures.

While most estate planning involves your spouse or children, there are a few instances when estate planning can be a little more ambiguous. This post is intended to briefly describe 3 non-traditional estate planning circumstances that may be encountered in these modern times. B no means does this post cover every aspect of options available and professional help from a CPA is strongly recommended. If you have any questions about any of these scenarios, please feel free to contact Poston, Denney, & Killpack PLLC in Idaho Falls for more information.

Estate Planning for Unmarried Couples

As law is currently written today, married couples enjoy more protections than unmarried couples do concerning estate planning. But this doesn’t mean that there aren’t options for those who decide not to tie the knot. Having a good plan in place will help you and your partner avoid the headaches that can be caused by the murky waters that is estate planning for unmarried couples.

1. Property - Legal ownership of property can be addressed by utilizing what is called Tenants In Common. This allows property to be legally owned by multiple people based upon a percentage. Another option available are Trusts. Trusts will spell out what should happen with your property should you become incapacitated or die, but your partner must also be a part of the Trust.
2. Retirement Plans and Life Insurance - If you have savings tied up in a 401(k), IRA, or pension plan, you may be able to designate your partner as a beneficiary of these retirement plans. These beneficiary designations will supercede anything written in your will so it is absolutely imperative to make sure your beneficiary designation is up to date. Finally, a life insurance policy with your partner listed as a beneficiary can help if for some reason your partner is not allowed by law to be a beneficiary of your retirement benefits or other assets. Some insurance companies will not allow unmarried partners to become a beneficiary so it is important to shop around before you buy.

Estate Planning for Childless Couples

If you and your spouse do not have any children, you still need estate planning to make sure your assets and property are used in accordance to your final wishes. Many couples without children may opt to leave their estate to a charity of their choice. Some may leave their assets and estate with their surviving extended family members. So, unless you don’t mind the state taking possession of your estate after you pass away, it is important that you and your partner have a will in place. Designating beneficiaries of your life insurance and retirement is also a great idea that will help lessen the stress on your surviving extended family members. A professional CPA will help guide you and your spouse when you decide who to leave your estate with.

Estate Planning for Digital Assets

Living in the 21st century comes with a litany of assets you may not even realize you have. If you were to pass away tomorrow, what would happen to your Gmail account? How about your Facebook and Pinterest accounts? Your extensive iTunes library? Or what about your gardening blog that earns you $5,000 per month in ad revenue? Many people only think about what will happen to their homes and bank accounts when they die. But in today’s age we often forget that we own much more than just money and land.

Most of these online accounts are managed by the legaleze found in the Terms of Service Agreement listed when you clicked “I Agree” (probably without even reading them!). As federal and state law catches up with technology, it is becoming easier for next of kin to get control of these digital assets. But, like with anything else dealing with estate planning, planning now will help your next of kin avoid headaches once you leave this life behind.

Some tech companies are implementing features and tools that will help mitigate issues that can arise when somebody dies, For instance, Google has released what is called “Inactive Account Manager.” This allows a Google account owner to designate another Google user as an account manager should the former not be able to log into their Google account after a set amount of time (which would happen if you died and didn’t leave a password behind - I have mine set up to allow my wife access after three months of inactivity). Another option is to keep a spreadsheet with all of your usernames and passwords recorded down. Then, your will should spell out in clear terms who should be allowed possession of this credential spreadsheet.

When it comes to estate planning for digital assets, it is important for you to detail exactly what you wish to happen with your accounts, profiles, and online presence. Without these things clearly spelled out in your will, it can become next to impossible for your next of kin to take control of your digital assets.

Idaho Falls Estate Planning - Additional Information 

The above mentioned scenarios are just a few of the estate planning issues that people may face when it comes time to figure out what needs to be done with their assets. The very best information you can get will be provided by a licensed and professional CPA or estate lawyer. It is our recommendation that you contact and hire a professional so that you can be sure your estate planning is in good hands, and according to your final wishes, after you leave this life behind. Contact Poston, Denney, & Killpack PLLC in Idaho Falls for estate planning services. We can help you and your spouse navigate all of your options regarding what will happen with your assets by helping you write and execute a will. We also help with personal financial planning and elder care financial planning.