Myth Busting: Clearing Up Common Misconceptions in Estate Planning

When it comes to estate planning, there are a lot of half-truths, outdated advice, and persistent myths that can leave your family vulnerable. Join Jeff as he clarifies common misconceptions about wills, probate, powers of attorney, and trusts. Estate planning is far from a one-size-fits-all exercise. Multiple tools are available, and to be most effective, they should be strategically customized to each family’s needs.

WHAT YOU NEED TO KNOW

(00:00) Episode introduction.

(03:02) Myth #1 – A last will and testament is good enough. Truth – A will outlines what will happen to our assets that are in our name alone. This leaves a lot of issues unresolved.

(04:42) Myth #2 – Avoid probate using joint ownership and beneficiaries. Truth – When money is distributed outright to the joint owner(s) at the time of death, it creates a situation where (1) the money can be spent before creditors and tax collectors get their share, and (2) assets become susceptible to unintended claimants.

(10:44) Myth #3 – Revocable trusts should not be used. Truth – They ensure flexibility during life, give the grantor complete control, offer options for disability planning, and provide after-death asset protection.

(19:45) Myth #4 – A revocable living trust is all you need. Truth – In some instances, an irrevocable pure grantor trust is a better option. It can offer more robust tax handling, leaves the grantor in control, and provides a step up in basis for the beneficiary.

(22:52) Myth #5 – Trusts are one-size-fits-all. Truth – There are many tools available to estate planners; it’s important to mix and match to develop a custom plan that is appropriate for each family.

(24:25) Myth #6 – A power of attorney (PoA) is good forever and any PoA is good enough. Truth – Most banks want these documents updated at least every two years. Also, to protect assets, a spouse or child must be specifically authorized in the PoA.

ABOUT BELLOMO & ASSOCIATES

Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.

Bellomo & Associates is committed to providing education so that what happened to the Bellomo family doesn’t happen to your family. We conduct free workshops on estate planning, crisis planning, Medicaid planning, special needs planning, probate administration, and trust administration. Visit our website (https://bellomoassociates.com/) to learn more.

LINKS AND RESOURCES MENTIONED

Bellomo & Associates workshops:https://bellomoassociates.com/workshops/

• Life Care Planning
• The Three Secrets of Estate Planning
• Nuts & Bolts of Medicaid

For more information, call us at [phone].

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