Legally Speaking Failing To Plan By Scott Berry - Berry Law Offices The greatest mistake when it comes to putting the proper documents inplace to pass your property and assets, is the failure to plan. Nearly 70% of all adults in the United States do not have a Willor Trust. Sometimes failing to plan is due to a feeling you are teo young, a feeling of immortality or the fear of death. It s alarming to see how many obituaries there are for people in their 30%, 40's and 50'%, Inother instances, people look at the planning process as overwhelming. Still in other cases, people unabie to decide who should administer their assets after their death. The problem is that without a planin place, your loved ones are left in the dark. In our experience, evenin families that are extremely dose, a death can negatively change the relationship between family members. Unspoken conflict between each other begins to boil to the surface. Memories of what "mom and dad wanted each to have" differ between eath child resulting in resentment and long-lasting hostility between family members. Furthermore, falling to plan results in the State of Minnesota and not you determining how your assets and property will be dstributed. Minnesota wilalso determine who will act as the individual responsible to oversee the distributionof your assets. If you do not have a planin place "the State of Minnesota and not you" will determine how your assets and property will be distributed. Jack & NW's Exomple: Why is this a problem? Lets assume foramoment the following facts about Jack and Al - Jack and l are married. In the end, falling to plancan result in your family spending thousands of dollars to resalve isses and dispetes that may arise upon your death for expenses that are completely avoidable. The Solution You probubly guessed it. Move forward with a plan. Itis important to begin the planning process as soon as possible while you still have your wits about you. Even if you have not made all your fnal decisions as to your distributions or who is to be charged with administration and distribution of your assets after your death, going through the planning process allows you to sort out those isues. You can always modify your Last Will & Testament or Trust if you later change your mind. Working with the right team will be able to answer the questions you have and assist you to proceed through the process effortlesdy. More importantly, with planning and dlear instructions, quarrels and dissent between children can be minimited and completely avoided. Planning can avoid the waste of thousands of dollars from your inheritance by unambiguously stating your intentions to distribute your propertyand assets. An artikle on Fox Business identifies 10 specific benefits to putting a plan in place. These benefits to preparing a planinclude -Reducing or eliminating potentialestate tax Making effective transfers during your life and after your death. Arranging for efficient business succession. Arranging for health care decisionsin the event you become incapacitated. Avolding the cost and delay of probate. Enabling property to pass to the desired person. Planning for the care of and financial wellbeing of your children in the eventef your death. - Fulsling your charitable intentions. Enabling peace of mind. Giving the gift of clearinstractions for your wealth and wishes to your loved ones. Nomatter the sire of your estate or the - Only Nl'sname is on the deed to Jack and Js homestead property. - Jackand il have 3 children, - Jack and ill do not have a Will. - dies. The Result? What de you think happens to Jack and l's homestead property? Jack only receives alife estate in property and Jack and l's thee children receive the remainder interest. Thismeans that lack can use the property for his life. When lack des Jack and Jl's children receive the property. On the surface, this may seem to be a reasonable result. However, consider that during lack's ifetime, he is unable to sell the property without his children's consent and he is only entitled to a portionof the proceeds from the sale of the property. HJack and Al'S children are minors a conservatorship would need to be established for each minor child to sell the property. This becomes even a greater more complicated problemif the children are l's children but not Jacks. In sucha case, the chances of obtaining li's childrem's consent to any sale of the propertyis significantly lessened. amount of your assets, everyone can benefit from getting a plan put in place. A good plan will not only address the distribution of your property and assets upon your death, but ako will put in place trusted people to act on your behalf while you are alie to make financial and healthcare dedsions if you should not be able to yoursell. We all know that good decisions are ones that are well thought out, somake them at a time when you can reason the resalts and come up with tailored solutions to your situationt And start now; when youreach the age of majority, you have the legal right, and maybe ebligation, to make your testamentary or life event decisions known to these that would be impacted by them. Additional Questions? Call or email Scott or Allison to schedule a free appointment. dsberry@berrylawoffices.com - alondgren@berrylawoffices.com 206 South Rum River Drive Downtown Princeton 763-389-0178 BERRY LAW OFFICES Contact Scott Berry- Attorney at Law Legally Speaking Failing To Plan By Scott Berry - Berry Law Offices The greatest mistake when it comes to putting the proper documents inplace to pass your property and assets, is the failure to plan. Nearly 70% of all adults in the United States do not have a Willor Trust. Sometimes failing to plan is due to a feeling you are teo young, a feeling of immortality or the fear of death. It s alarming to see how many obituaries there are for people in their 30%, 40's and 50'%, Inother instances, people look at the planning process as overwhelming. Still in other cases, people unabie to decide who should administer their assets after their death. The problem is that without a planin place, your loved ones are left in the dark. In our experience, evenin families that are extremely dose, a death can negatively change the relationship between family members. Unspoken conflict between each other begins to boil to the surface. Memories of what "mom and dad wanted each to have" differ between eath child resulting in resentment and long-lasting hostility between family members. Furthermore, falling to plan results in the State of Minnesota and not you determining how your assets and property will be dstributed. Minnesota wilalso determine who will act as the individual responsible to oversee the distributionof your assets. If you do not have a planin place "the State of Minnesota and not you" will determine how your assets and property will be distributed. Jack & NW's Exomple: Why is this a problem? Lets assume foramoment the following facts about Jack and Al - Jack and l are married. In the end, falling to plancan result in your family spending thousands of dollars to resalve isses and dispetes that may arise upon your death for expenses that are completely avoidable. The Solution You probubly guessed it. Move forward with a plan. Itis important to begin the planning process as soon as possible while you still have your wits about you. Even if you have not made all your fnal decisions as to your distributions or who is to be charged with administration and distribution of your assets after your death, going through the planning process allows you to sort out those isues. You can always modify your Last Will & Testament or Trust if you later change your mind. Working with the right team will be able to answer the questions you have and assist you to proceed through the process effortlesdy. More importantly, with planning and dlear instructions, quarrels and dissent between children can be minimited and completely avoided. Planning can avoid the waste of thousands of dollars from your inheritance by unambiguously stating your intentions to distribute your propertyand assets. An artikle on Fox Business identifies 10 specific benefits to putting a plan in place. These benefits to preparing a planinclude -Reducing or eliminating potentialestate tax Making effective transfers during your life and after your death. Arranging for efficient business succession. Arranging for health care decisionsin the event you become incapacitated. Avolding the cost and delay of probate. Enabling property to pass to the desired person. Planning for the care of and financial wellbeing of your children in the eventef your death. - Fulsling your charitable intentions. Enabling peace of mind. Giving the gift of clearinstractions for your wealth and wishes to your loved ones. Nomatter the sire of your estate or the - Only Nl'sname is on the deed to Jack and Js homestead property. - Jackand il have 3 children, - Jack and ill do not have a Will. - dies. The Result? What de you think happens to Jack and l's homestead property? Jack only receives alife estate in property and Jack and l's thee children receive the remainder interest. Thismeans that lack can use the property for his life. When lack des Jack and Jl's children receive the property. On the surface, this may seem to be a reasonable result. However, consider that during lack's ifetime, he is unable to sell the property without his children's consent and he is only entitled to a portionof the proceeds from the sale of the property. HJack and Al'S children are minors a conservatorship would need to be established for each minor child to sell the property. This becomes even a greater more complicated problemif the children are l's children but not Jacks. In sucha case, the chances of obtaining li's childrem's consent to any sale of the propertyis significantly lessened. amount of your assets, everyone can benefit from getting a plan put in place. A good plan will not only address the distribution of your property and assets upon your death, but ako will put in place trusted people to act on your behalf while you are alie to make financial and healthcare dedsions if you should not be able to yoursell. We all know that good decisions are ones that are well thought out, somake them at a time when you can reason the resalts and come up with tailored solutions to your situationt And start now; when youreach the age of majority, you have the legal right, and maybe ebligation, to make your testamentary or life event decisions known to these that would be impacted by them. Additional Questions? Call or email Scott or Allison to schedule a free appointment. dsberry@berrylawoffices.com - alondgren@berrylawoffices.com 206 South Rum River Drive Downtown Princeton 763-389-0178 BERRY LAW OFFICES Contact Scott Berry- Attorney at Law