Estate Planning: Mistakes or Misunderstandings

Top Estate Planning Mistakes or Misunderstandings – And How to Avoid Them

We have all heard the phrase: nothing in this world can be certain in life, except death and taxes. As an estate planner, I address these two issues every day. I counsel clients on the best strategies to pass their estates to their loved ones, how to efficiently manage their affairs if they can’t make decisions for themselves, and advise them on the most financially efficient ways to accomplish their goals. With nearly 20 years of estate planning experience, I have collected a list of common mistakes or misunderstandings.

#1. DIY Documents.

Estate plans should not be considered a “Do It Yourself” endeavor. With the guidance of an experienced estate planning attorney, you ensure that you’re considering all the issues, your planning goals are met, and your legacy will be easily passed on to others. Wills completed through automated computer programs or purchased at stationary stores may result in negative financial and substantive impacts to your loved ones.

#2. “I Don’t Need an Estate Plan.”

Everyone can benefit from an estate plan. Even if you think you don’t own anything, everyone should have a financial power of attorney and a medical power of attorney. Did you know that if you don’t create your own individualized estate plan, then the state of Oregon has a “One Size Fits All” plan for you? Unfortunately, Oregon’s “One Size Fits All” plan doesn’t meet the customized needs of many people, and it can lead to unintended consequences.

#3. Choosing the Wrong Decision Maker.

Many times, a parent will want their adult children to work together to make financial and medical decisions when the parent can no longer do so. Unfortunately, in my experiences, many times these types of plans don’t work well. Instead, when siblings disagree, an impasse may occur. In the worst-case scenario, litigation may be the only solution to resolve the conflict. Other times, people choose a friend for help, and then for a variety of reasons, the friend is no longer able to help. And on occasion a trusted person turns and becomes a financial abuser. Picking the right decision maker, aka fiduciary, is very important and should be a well-informed and thoughtful process.

#4. Thinking a Will Avoids Probate.

Probate is a court supervised administration of a decedent’s estate. Now don’t get me wrong, I don’t think probate is the 9th level of Dante’s Inferno; and as an attorney, I am very familiar with the rules of court procedure. For certain situations, probate is a beneficial process. But time and time again, clients have the misunderstanding that their wills are not subject to probate. They are shocked when they learn that a will almost always ensures that an estate will be probated. To avoid probate, consider creating a revocable trust.

#5. Letting Your Plan Collect Dust.

Having a plan, but not looking at it again is a mistake. Estate planning is a dynamic process. The plan should not be chiseled in stone and then set on a shelf, never to be thought of again. In general, I recommend that clients review their estate plans every five years. And sooner if there have been significant life changes, such as marriages, divorces, births, substantial changes in assets, medical diagnoses, etc.

#6. “I’m Not Rich, So I Don’t Care About Estate Taxes.”

Thinking you don’t have enough to be concerned about estate taxes (also known as “The Death Tax”) may be a mistake. Even if you own less than $11.58 million which is the 2020 amount when the federal estate tax hits, your estate may still be subject to state estate tax. Both Oregon and Washington have state level estate tax. Without specific tax planning, an Oregonian who dies with a net worth more than $1 million has exposure to Oregon estate tax. The same is true for Washingtonians. However, Washington’s amount is more generous at $2.193 million in 2020.

It is never too late to prepare an estate plan. If you have more questions or want to talk about your estate planning goals and needs, contact one of our estate planning attorneys. Our combined years of estate planning experience is over 130 years.

Be sure to check out SYK’s newest video – featuring Anastasia and focusing on Estate Planning.

Anastasia (Stacie) Yu Meisner is a member of the SYK Estate Planners practice. Her practice focuses on estate planning, mediation, probate, trust and estate administration. In addition, she also works with guardianships and conservatorships, as well as business transactions and formation.

Attorneys Blachly & Pasieczny Present on Combating Financial Elder Abuse

Recent Tools to Combat Financial Elder Abuse”: a closer look at mandatory and permissive conduct for Oregon securities professionals.

Today, over 46 million Americans are 65 years of age or older. This accounts for nearly 15{45ef85514356201a9665f05d22c09675e96dde607afc20c57d108fe109b047b6} of the population. According to the Population Reference Bureau, that number is projected to more than double by the year 2060. It will reach an estimated 98 million and 24{45ef85514356201a9665f05d22c09675e96dde607afc20c57d108fe109b047b6} of the U.S. population. Approximately 1 out of every 10 Americans, age 60 and older have experienced some form of elder abuse. Estimates of financial elder abuse and fraud costs range from $2.9 billion to $36.5 billion annually

On Thursday, February 21st, SYK attorneys Victoria Blachly and Darlene Pasieczny will speak to the Oregon State Bar Securities Regulation Section about financial elder abuse in the securities industry. Their program “Recent Tools to Combat Financial Elder Abuse: Mandatory and Permissive Conduct Under FINRA Rules and Oregon Law for Securities Professionals,” will take a closer look at Oregon statues and FINRA rules regarding mandatory and permissive conduct for brokers and investment advisers when there is reasonable suspicion of financial abuse.

Meet the experts – Victoria Blachly and Darlene Pasieczny

Victoria Blachly is a fiduciary litigator, licensed in Oregon and Washington. She represents individual trustees, corporate trustees, beneficiaries, and personal representatives in often difficult and challenging cases including:

  • Trust and estate litigation
  • Will contests
  • Trust disputes
  • Undue influence
  • Capacity cases
  • Claims of fiduciary breach
  • Financial elder abuse cases
  • Petitioning for court instructions
  • Contested guardianship and conservatorship cases.

Darlene Pasieczny is a fiduciary and securities litigator. She represents clients both in Oregon and Washington, with matters regarding trust and estate disputes, financial elder abuse cases, securities litigation, and represents investors nationwide in FINRA arbitration. Her article, New Tools Help Financial Professionals Prevent Elder Abuse, was featured in the January 2019, Oregon State Bar Elder Law Newsletter.

Report abuse

If you suspect someone is being abused, neglected, or financially exploited, please reach out to the Oregon Department of Human Services. Also, you may consider hiring a private attorney to help employ legal tools to prevent harm, or recover financial losses.