Free Estate Planning Forms

Most of our readers are interested in making a simple living trust to avoid probate and reduce other burdens of estate administration, such as legal fees and delays in distribution.  This type of living trust is usually intended to be administered and closed promptly after the grantor’s death.  However, some estate planning trusts are intended to have much greater longevity.

For example, if you plan to leave a substantial amount of wealth to your children or grandchildren, you may establish a trust to make distributions to your beneficiaries in incremental amounts rather than a lump sum inheritance. If you have a dependent adult child that has not demonstrated the ability to manage his own finances, you may create a spendthrift trust giving the trustee discretion to make distributions as needed throughout your child’s life. If you intend to pass your family business or company stock through a trust, you may have very specific directions on how you wish these assets to be managed and distributed.

When establishing any trust intended to have a duration of decades or more after you are gone¸ there will be unforeseen events and issues for which it is difficult to plan. If your trust will hold a significant amount of assets, you may be uncomfortable relying on a single trustee to carry out your wishes.   A recent article in Barron’s by Tatiana Serafin suggests grantors in these situations may benefit from using a “trust protector”. The article outlines several benefits of this relatively new concept in structuring trusts, particularly irrevocable trusts.  To learn more, review the article Why You May Need a "Trust Protector" on Barrons.com. To consult a professional about structuring an estate planning trust, see our list of trust companies.

If you are disturbed with how your adult children handle money and manage their finances, have you considered what they will do with a lump sum inheritance?  When most estates go through probate or estate administration, the heirs usually receive their entire inheritance at one time.  A spending spree often follows and the legacy left behind by a caring parent is wasted by his offspring in a tiny fraction of the time it took to earn.  Whether you die without a will or only make a simple will, your heirs will likely receive their inheritance in a lump sum within a few months of your passing.  Only by using other estate planning methods, such as an estate planning trust, can you control the amount and timing of distributions to your children and other beneficiaries. To learn the options available for preserving your child's inheritance, see lump sum inheritance.

Estate planning can be a dry and boring subject.  It may be one of the reasons you haven't made a will.  One of the best ways to get motivated to plan your estate is to learn about the mistakes others made and how those planning mistakes affected their loved ones.  A great special is airing now on PBS called Trial and Heirs.  It features authors Andrew and Danielle Mayoras who wrote a popular book on the subject.  They use the estates of the rich and famous to illustrate the consequences of failure to make an estate plan.  Check your local PBS television schedule to find the next airing of this very informative special.  For more information on why everyone should make it a priority to at least execute the most basic estate planning documents, see dying without a will.

If you plan to leave a significant inheritance to your children, grandchildren or other heirs, there are some key estate planning considerations beyond simply signing your name to a will or trust. While your attorney or financial advisor may not mention it, one of the most persuasive elements in how your adult child will use an inheritance is what you say to them directly about inherited property.  To read more of this blog post, see December 2011.

The 2010 Census revealed that more adult children are now living with their parents.  In fact, the latest figures indicate it is becoming more common for several generations to live under one roof.  As more Americans struggle financially, this data should come as no surprise.  However, what is coming as a surprise to some households is a Medicaid estate recovery notice.  As more seniors enter nursing homes, government budgets are being stretched to pay Medicaid benefits for those unable to pay the cost of long term care.  While most families are glad to have Medicaid pick up the tab for Grandma’s living expenses, there is a catch.  The state has the right to place a lien on Grandma’s house and other real estate to recoup amounts it paid for Grandma’s long term care.  In addition, the state can collect its money from Grandma’s estate.  For adult children, grandchildren, siblings, cousins, nieces, nephews, and other extended family members living on a Medicaid recipient’s property, the receipt of an estate recovery notice can be very unsettling.  To learn more about the government’s right to recover for Medicaid benefits paid on behalf of a nursing home resident, see Medicaid estate recovery.

When you meet with an attorney or financial advisor about estate planning and paying for long term care, they may suggest you purchase an annuity to protect some of your assets.  Often used to shelter assets when an individual or a spouse needs to qualify for Medicaid to pay nursing home bills, these insurance products are referred to as Medicaid friendly annuities or Medicaid annuities.  While annuities have been used in Medicaid planning for many years, it became more difficult to use them successfully after passage of the federal Deficit Reduction Act of 2005, which became law in the early part of 2006.  Post DRA, purchasing an annuity that does not meet strict legal requirements can result in disqualification from Medicaid benefits for a substantial length of time and a failure of the annuity to meet the objectives for which it was purchased.  Annuities are complex financial products that often result in buyer’s remorse.  It is never a good idea to buy an annuity without fully understanding how it works.  Buying a Medicaid annuity is even more complicated because the annuity must comply with applicable Medicaid regulations to be an effective part of a Medicaid planning strategy.  If you want to buy an annuity to preserve a portion of your assets for your spouse or children, read the contract carefully and consult an elder law or estate planning attorney.  In addition, consult a financial planner who does not have an interest in the transaction.  For an overview of Medicaid planning annuities, including the advantages, disadvantages, and recommended books on asset preservation, see Medicaid annuities.

Most of us collect cherished photos, news clippings, portraits, and other types of family memorabilia throughout our lives.  We rarely think of parting with such items except perhaps to pass them on to our children, grandchildren, and other relatives.  But ultimately, our most personal and private mementos become estate property when we die.  Some family memorabilia may be distributed to heirs or beneficiaries of the deceased.  However, since next of kin are often uninterested in such items, family memorabilia is frequently sold to strangers at auctions or estate sales.  An often overlooked aspect of estate planning is taking steps to control what happens to your family memorabilia when you die.  If you dislike the thought of your treasured keepsakes being offered to your survivors, rejected by them, and then tossed on your front lawn for your neighbors to sift through, you may want to consider your family memorabilia when making your estate plan.  For free tips and suggestions, see our page on Family Memorabilia.

Many of us are concerned about how to pay for long term care, especially when saving for retirement is daunting enough without factoring in high health care costs.  Nevertheless, it is not uncommon for seniors to spend a decade or more in a nursing home.  But are you prepared to pay for 30 years in a nursing home?  Reuters reported today the world's oldest living man, Walter Breuning, died at age 114.  Breuning spent 30 of those years in a nursing home.  He reportedly moved into the Rainbow Senior Living retirement home in 1980 and lived there until his death on April 14, 2011.  As you consider your financial plans for retirement, think about your quality of life and what type of care your planning will afford.  For more information, see our pages on Long Term Care and Medicaid Planning.

In a new will executed just days before she passed away on December 7, 2010 from metastatic breast cancer, Elizabeth Edwards disinherited her husband, former United States Senator and Democratic presidential candidate, John Edwards.  Elizabeth Edwards was separated from her husband at the time of her death.  Her last will does not mention John Edwards, with whom she had 4 children.  The couple separated in 2010 after 32 years of marriage but their divorce was never finalized. Earlier in 2010, John Edwards admitted paternity of a child born to Rielle Hunter, a film producer with whom he had an affair during his 2008 presidential campaign.  Elizabeth Edwards named her eldest daughter, Catharine, the executor of her will. 

When most people go through a major life change, such as marriage, divorce, marital separation or the birth of a child, they fail to take the time to update their estate plan.  As a result, their last wishes often go unfulfilled and their property is not distributed as they intended.  It is clear Elizabeth Edwards took the time to put her affairs in order and protect the interests of her children.

If you are in the process of a divorce or are recently separated, it is important to review your will, trust, power of attorney, and other estate planning documents to determine if the documents reflect how you currently want your property distributed, especially if you no longer want your spouse or partner to have legal control over your estate.  In addition, if children were born to either spouse outside the marriage, consult your attorney to ensure the inheritances of your own children are protected.

The last will made by Elizabeth Edwards protects the rights of her children to inherit her property and disinherits her estranged husband.  Because John Edwards has a non-marital child with his former mistress, if Elizabeth Edwards had left any of her estate to her husband, at least a portion of such assets could have ultimately passed to his illegitimate child one day, thereby reducing the inheritance of her own children. 

In her last will, Elizabeth Edwards left all her “furniture, furnishings, household goods, jewelry, china, silverware and personal effects and any automobiles” owned by her at the time of her death to her children.  She left the remainder of her property and estate to her revocable trust with her daughter, Catharine, as trustee.  A copy of Edwards’ last will is available online at TMZ.com.

When making your estate plan, it is important to be aware of any rights your spouse may have to inherit from your estate under applicable law.  For more information, visit our pages on Spouses and Partners and the Spousal Share.