estate plan
Estate Planning

The Valentine’s Gift That Truly Matters

As Valentine's Day approaches, you might be thinking about flowers, chocolates, or a romantic dinner. And hey, those are all great (who doesn’t love a little chocolate?). But what if I told you there's a way to show your love that lasts far longer than roses and holds far more meaning than any box of truffles?

I'm talking about estate planning—specifically, Life & Legacy Planning—the ultimate love letter to the people you care about most.

A Different Kind of Love Letter

Love isn't just about grand gestures or perfectly curated date nights. The deepest expressions of love are often found in the quiet, intentional actions we take to care for and protect the people we cherish.

And while estate planning might not seem romantic at first glance, I’d argue it’s one of the most loving things you can do.

Think about it—when you create an estate plan, you’re writing a love letter that says:

"I care about you so much that I’ve taken the time to make sure that when I'm gone, you know what to do, you know how to find what I've left behind and make sure it's easy to transfer to you, and I've left you the support so you don't have to go it alone."

It means your children will be raised by the people you trust, your spouse won’t face unnecessary financial hardships, and your loved ones won’t be left to navigate legal and logistical headaches during an already difficult time.

While we often show love through gifts, dinners, and vacations (which, to be clear, I fully support), those are temporary. A Life & Legacy Plan is a lasting demonstration of your love and care—one that ensures your family is protected for years to come.

The True Cost of Putting It Off

Many people put off estate planning because… well, life gets busy. You might tell yourself you’ll get to it later—when the kids are older, when work settles down, when you have more time.

But here’s the truth:

The time you spend now creating a plan is nothing compared to the time, money, and stress your loved ones might face without one.

Without proper planning:

  • Your loved ones could end up stuck in lengthy court proceedings.
  • Family conflicts could arise over medical decisions or asset distribution.
  • Your children could end up in the care of someone you wouldn’t have chosen.
  • Your assets might not go where you intended.
  • And perhaps most heartbreaking of all—family relationships can suffer at a time when unity is needed most.

Estate planning isn’t just about money or documents—it’s about ensuring your family isn’t left with a mess when they need clarity and support the most.

What a Love-Based Life & Legacy Plan Includes

Not all estate plans are created equal. Some are just stacks of legal documents that don’t actually work when your family needs them. That’s not what I do.

A Life & Legacy Plan is a love-based plan that works when it matters most.

Here’s what that means:

  • If something happens to you, your children will be raised by the people you trust—those who share your values and will raise them the way you’d want.
  • Your healthcare wishes will be clearly documented, so your loved ones aren’t left making impossible decisions during emotional times.
  • A thorough inventory of your assets ensures nothing is lost—or worse, handed over to the government.
  • You’ll have an ongoing relationship with me, so I can be there for you throughout your life and for your loved ones after you’re gone.

And beyond all the practical pieces, your Life & Legacy Plan also captures something far more valuable—your wisdom, values, and life lessons.

Through a Life & Legacy Interview, I help you document your stories, your messages to your loved ones, and the wisdom you want to pass down. My clients tell me this is the most meaningful part of the process, and I have to agree.

Because in the end, what your family treasures most isn’t your money—it’s you.

The Best Time to Plan is Now

You wouldn’t put off telling your loved ones how much they mean to you.

So don’t put off cleaning up the mess you’ll otherwise leave behind, now. 

Creating a Life & Legacy Plan doesn’t have to be overwhelming. In fact, with the right guidance (hi, that’s me!), it can actually be an empowering, even joyful experience—one that brings you peace of mind knowing your loved ones will be cared for, no matter what.

And when you work with me, I make the process easy—so easy, you’ll wonder why you didn’t do it sooner.

This Valentine’s Day, Give the Ultimate Gift of Love

This year, in addition to chocolates and flowers, consider a gift that truly matters—one that will last long after the roses fade.

A Life & Legacy Plan is one of the most powerful expressions of love you can give. It’s about making sure your loved ones are protected, provided for, and never left wondering, What do we do now?

Take the first step toward this profound act of love—schedule a call today.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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Estate Planning

From Preparation to Recovery: When Disaster Strikes

When disaster strikes, time is your most precious resource. Whether it’s a wildfire, hurricane, or flood, being ready to act can make all the difference for you and your loved ones. Having a clear plan helps you stay calm and focused during emergencies. In this article, I will walk you through how to prepare for evacuation, manage an emergency, and recover afterward. I’ll also explain how estate planning can safeguard your loved ones’ future, even in the most challenging times. Let’s get started so you can learn how to protect what matters most.

Packing Smart When Time Is Tight

Imagine the type of emergency in which you have just 15 minutes to leave your home. What would you grab? It’s a scenario no one wants to face, but planning ahead can turn chaos into action. And, as we’re seeing with the hurricane that hit Asheville unexpectedly and the wildfires in Los Angeles, this is a scenario we all need to be ready for, and the time to plan is right now.

Start by packing a go-bag with the essentials you’d need if you had to leave in a hurry. Include chargers for your devices, as well as critical medical items like prescriptions, hearing aids, and oxygen if you or a loved one relies on them. Don’t forget your pets! Pack a leash, carrier, food, and any medication they need. Important documents such as birth certificates, passports, home insurance info, and your estate plan should go in a waterproof folder that’s easy to grab. Don’t forget a first aid kit, clothing for a few days, and enough water to get by until help arrives. Create this bag now, and keep it in a cool location in your home, ready to grab when needed. And it’s a good practice to always keep your car fueled and packed with essentials like blankets, flashlights, and non-perishable snacks.

Add a list to the bag with a reminder of the additions you’ll make on the fly. Put on the list anything you use on a regular basis that you don’t want packed away but you know you’d want to grab if you knew you’d never see it again, including things like collectibles, family jewelry, specific photos, and keepsakes. Make this list now and put it with your go bag, so you aren’t trying to think about what to grab in an emergency when you can’t think very clearly. 

The key is to think ahead. Walk through your home room by room and decide what’s most important to you. Then create a checklist so you’re not scrambling when the clock is ticking. Create the checklist in an app on your phone so it’s accessible when you need it.

Staying Safe During the Emergency

When it’s time to evacuate, safety is your top priority. First, make sure everyone in your household knows the plan. Write emergency contact numbers on your forearm with a marker, especially for kids. This step could make all the difference if you get separated. Constrain pets to carriers or leashes so they’re easy to transport.

Alert a non-local emergency contact about your plans. If you have neighbors who are elderly or vulnerable, check on them and make sure they know what to do.

As you leave, take steps to protect your home. If time allows, turn off your HVAC system and gas, and unplug appliances. Close all windows, doors, and gates, and place fireproof tarps over wood piles or outdoor furniture. These small actions can make a big difference if disaster reaches your doorstep.

Remember, the most important thing is to get out safely. Do not stay behind to try to save belongings. You can replace things, but you can’t replace lives.

Recovering and Rebuilding After Disaster

Once the immediate danger has passed, the recovery process begins. The first step is finding a safe place to stay, whether it’s with family, friends, or at a shelter. Take photos of any damage to your property before you begin cleaning up—these will be crucial for insurance claims.

Organize your paperwork early. Gather receipts for repairs, hotel stays, and any other disaster-related expenses. Contact your insurance provider to start your claim and keep detailed records of all conversations.

Recovery isn’t just about financial steps; it’s about emotional healing too. Connect with others who have gone through similar experiences. Support groups and community networks can help you process your feelings and find resources you might not know are available.

Most people may not think about estate planning as a tool that can greatly simplify the recovery process and make it more easeful - but only if you create a comprehensive and customized plan using my Life & Legacy PlanningⓇ process.

When you work with me to create a Life & Legacy Plan, I’ll support you to designate a trusted individual as your financial power of attorney, so they can step in to handle urgent matters like accessing bank accounts or paying bills while you focus on rebuilding. Similarly, a healthcare power of attorney ensures your medical needs are met if you’re injured or unable to make decisions. These are just two of many features that ensure your plan works when you need it to. Keep reading to learn more.

Finally, think about what you can do to prepare for the future. Rebuild with resilience in mind by using fireproof or flood-resistant materials. Restock your emergency kit and update your evacuation. Disasters can strike without warning, but every step you take now will make you stronger for the next time.

Life & Legacy Planning is Your Secret Weapon in Disaster Preparedness

Life & Legacy Planning isn’t just about passing on your wealth when you’re gone; it’s also about protecting your loved ones and ensuring your wishes are followed during your lifetime. In the context of disaster preparedness, as I mentioned above, it’s an often overlooked but essential tool.

If you have minor children, Kids Protection Planning is critical. By naming permanent and temporary guardians, you can ensure your kids are cared for by someone you trust if something happens to you - even if you aren’t able to care for them for a few days. This is especially important during chaotic and uncertain times.

A Life & Legacy Plan also helps protect your property. I can support you to create a fully funded living trust, which means your assets will bypass the court process, giving your loved ones immediate access to funds and resources they may need after a disaster. Together, we can also include provisions for rebuilding or maintaining your home in your absence.

By integrating Life & Legacy Planning into your disaster preparedness efforts, you’re not just planning for the worst—you’re building a framework for recovery and resilience. And most importantly, you’re protecting all the people you hold dear.

Moving Forward with Confidence

Disasters are unpredictable, but preparation is your best defense. By packing smart, acting swiftly, and focusing on recovery, you can protect what matters most. Life & Legacy Planning adds another layer of security, giving you peace of mind that your loved ones and assets are protected no matter what happens. Use this guide to create a plan that keeps your family safe and your mind at ease. Remember, preparation isn’t just about surviving—it’s about thriving in the face of challenges.

How We Can Help

As your Personal Family Lawyer® Firm, I’m here to help you prepare for and recover from disasters. When you work with me, I’ll:

  • Help you organize and protect crucial legal documents;
  • Review your insurance coverage to identify potential gaps;
  • Create (or update) your Life & Legacy Plan to include disaster contingencies; and
  • Guide you through the legal aspects of disaster recovery.

Remember, the time to prepare for a disaster is before it happens. Let me help you create a plan that protects what matters most.

Book a call here to learn how we can help you prepare for the unexpected.

This article is a service of a Personal Family Lawyer® Firm. I don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why I offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling my office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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Estate Planning

4 Estate Planning Myths That Put Your Loved Ones at Risk

Surveys conducted in 2024 by Caring.com and Ameriprise Financial revealed a troubling trend: Americans are falling behind on estate planning. The Caring.com survey revealed that only 32% of Americans have a will - a 6% decline from 2023. The Ameriprise survey found that 52% of couples lack estate plans. These statistics highlight a dangerous disconnect between understanding the importance of estate planning and taking action. Let's examine these misconceptions and their potentially devastating consequences.

Myth 1: "I don't have enough assets to need an estate plan."

This dangerously narrow thinking ignores that estate planning isn't just about financial wealth. It's about doing the right thing for the people you love so you don’t leave a mess, and about ensuring your wishes for your own care are considered if you cannot make decisions for yourself due to accident or illness.

If you haven’t created a Life & Legacy plan (the type of comprehensive planning I offer), your loved ones could face lengthy court proceedings, unnecessary taxes, and difficulty accessing financial accounts, which could have devastating consequences if bills need to be paid.

It’s also about:

  • Ensuring what you DO have goes to the people you want in the way you want (and stays out of the court process);
  • Your children being raised by people you choose;
  • Your wishes for your medical care are honored if you become incapacitated, or if your mind deteriorates;
  • Only people you trust are able to manage your finances if you can’t manage your finances yourself, and
  • Leaving your loved ones with your most valuable assets - your values, insights, stories, experiences and your love.

Moreover, a Life & Legacy plan can minimize conflict among your loved ones. By clearly outlining your intentions, and ideally getting my support to share your intentions with your loved ones, you significantly reduce the chances of misunderstandings or disputes, while also increasing the chances that your resources will be used to create a better future for the people you love. 

Finally, an estate plan that works will save your loved ones time and money by ensuring the people who matter know what you have, where it is, how to find it, what to do with it when they do find it, and keeps them out of court and conflict.

In short, an estate plan is not a luxury reserved for the wealthy; it’s a necessity for anyone who has things that matter, and people who matter. If that’s you, and you don’t have an estate plan (or your plan could be outdated) let’s talk soon.

Myth 2: "My spouse and I trust each other completely."

Ameriprise's survey reveals 95% of couples trust each other with finances and 91% share financial values. When couples don’t plan because they trust each other to carry out each other’s wishes, they’re overlooking several essential matters.

For instance, trust between spouses doesn't prevent legal complications or avoid court. Without a Life & Legacy plan, a surviving spouse may face lengthy probate proceedings, increased tax burdens, and difficulty accessing accounts. This strain can damage relationships and deplete assets meant for heirs. Even worse, if both spouses die simultaneously, the complications can be significant, especially if the spouses have children from prior marriages, or minor children. 

Another potential issue arises if the surviving spouse remarries. Without an estate plan, assets could unintentionally be passed to the new spouse instead of the people the deceased spouse loved. In some cases, children may even be accidentally disinherited, leaving them without the financial support their parent had planned to provide.

Myth 3: "Estate planning is too expensive."

Another common misconception is that estate planning is a luxury reserved for the wealthy because of its perceived high cost. The reality? Avoiding estate planning due to cost concerns can lead to far more significant time and money costs for the people you love down the road. Without a plan, your loved ones may face costly probate proceedings, unnecessary taxes, and legal disputes that can drain your estate and create additional stress for your loved ones during an already difficult time. These costs often far exceed the upfront investment of creating an estate plan.

Beyond the financial aspect, the peace of mind that comes with knowing your loved ones are protected is invaluable. A Life & Legacy plan ensures that your wishes are carried out, your loved ones are cared for, and potential conflicts are minimized. By addressing these matters proactively, you save the people you love from emotional and financial burdens, making Life & Legacy planning one of the wisest and most compassionate investments you can make, as well as the best gift you can give to the people you love.

Myth 4: "I don’t need to worry about who would raise my kids."

Many parents of minor children assume that in the event of their death, loved ones will naturally step forward to care for their children. Unfortunately, these assumptions are often misplaced. Without a Kids Protection PlanⓇ, which I support you to create, the decision about who raises your children will be left to a judge - a complete stranger to you and your children. And when a stranger makes the decision about who will raise your kids, it might not be the person you would have wanted. In some cases, the individual granted guardianship could have values, parenting styles, or circumstances entirely incompatible with how you envisioned your children being raised. Even if you have named legal guardians for your children in a prior created will, it’s likely not taken into consideration the 6 common mistakes I see consistently when people (and even their well-meaning lawyers) name legal guardians without the training I’ve had as a Personal Family Lawyer® around planning for the needs of families with minor kids at home. If you have a minor child, and have named legal guardians, but want me to review your plan to see if you’ve made any of the 6 common mistakes, call my office. 

Another important consideration is the financial burden imposed on your children’s chosen guardian. If you haven’t created a Life & Legacy plan, and allocated sufficient funds for your children’s care, even willing loved ones might decline guardianship, leaving the court to make an even more difficult choice.

A Life & Legacy plan alleviates the potential financial burden on your chosen guardians and ensures that your children receive the care and stability they need during an emotionally challenging time.

Take Action Now to Protect the People You Love

I've seen too many people suffer negative, yet unnecessary, consequences after a loved one dies. And if you haven't experienced it yourself, chances are you probably will. But with the proper education, beginning with correcting these dangerous myths about estate planning, I believe we can break the cycle of strife.

As a Personal Family Lawyer® firm, I start with education so you are clear on what would happen to your loved ones and your assets if you become incapacitated and when you die. Then we will work together to create a plan that aligns with your values, your goals, your loved ones, and most importantly, that works when you need it to.

We call it the Life & Legacy Planning® process, and once you've created your Life & Legacy plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. 

Book a call with us today to get started.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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estate planning
Estate Planning

Five Essential Steps to Protect Your Loved Ones in 2025

You know that uneasy feeling when you think about what everyone you love would do, if (and when) something happens to you? That nagging voice reminding you that you still haven't created a will or trust or updated the estate plan you do have? 

As we enter 2025, it's time to stop pushing those thoughts aside and take action to protect the people you love most. Many people avoid estate planning because they think it will be complicated, expensive, too time-consuming, or emotionally challenging. But the truth is, not having a plan, or having an out-of-date plan, is far more costly – financially,  emotionally, and time-wise – for the people you love. 

Let's take a look at five things you can do right now to create lasting peace of mind.

Step 1: Get Financially Organized

One of the biggest challenges people face after losing a loved one is trying to piece together their financial life. Where are all the accounts? What insurance policies exist? What bills need to be paid? Without proper organization, your family could spend months or even years trying to track everything down. Worse yet, anything they don’t find will be turned over to the State Department of Unclaimed Property, where there are approximately $60 billion in lost assets nationwide.  

As important as it is, financial organization isn't just about making lists – it's about creating a clear roadmap for the people who will handle your affairs when you cannot. This includes documenting all your accounts, insurance policies, important passwords, and key contacts. When your loved ones need access to this information, it should be readily available, updated, and easy to handle. This is why our Life & Legacy Planning process begins with a financial organization, and then our ongoing Life & Legacy Planning service supports you to maintain your financial organization throughout your life, so it’s handled with as much ease as possible for the people you love when something happens to you.

Step 2: Create a Lasting Message for Your Loved Ones

When someone dies, their loved ones often wish they had one more conversation, one more chance to hear their loved one's voice or read their words. That's why recording a Life & Legacy Interview is part of our planning process. It’s truly one of the most meaningful gifts you can give the people you love, and who love you. 

This message isn't just about saying goodbye – it's about sharing your values, hopes, and life lessons. Think about what you want future generations to know about your life journey. 

What wisdom do you want to pass down?

What family stories, or even recipes, should be preserved?

While you may think “generational wealth” is just about money, the truth is that people who are able to learn from the recorded history of past generations have true generational wealth that’s far greater and irreplaceable than any dollar ever could be.

Your words will become a treasured part of your legacy, offering comfort and guidance long after you're gone.

Step 3: Learn About Tax Planning

Many people don't realize that proper estate planning can help minimize or eliminate taxes their loved ones might otherwise have to pay. Without planning, they could lose a significant portion of their inheritance to estate taxes, income taxes, or capital gains taxes. 

Strategic tax planning isn't about avoiding your obligations – it's about ensuring more of your hard-earned assets go to the people you love rather than the government. Working with a trusted advisor who understands both estate and tax law can help you identify opportunities to protect your loved ones’ financial future.

Step 4: Plan Your Final Farewell (and Your Last Days)

While it might feel uncomfortable to think about your funeral, planning and paying for it in advance is one of the most loving things you can do for the people you love. When you're gone, they will be grieving. The last thing they need is to make difficult decisions about your funeral while trying to guess what you would have wanted.

By planning ahead, you not only ensure your wishes are honored but you also protect the people you love from emotional overspending during a vulnerable time. You can choose and pay for exactly what you want, locking in today's prices and relieving your loved ones of this financial burden.

Even more importantly, consider how you want to spend your last years, months, or even days and discuss that with the people who will be responsible for your care now. This could be a conversation we can help facilitate if bringing it up or even thinking about it alone feels too challenging or if you keep putting it off. This courageous conversation is one of the best gifts you can give to the people you love.

Step 5: Create a Comprehensive Life & Legacy Plan

All these elements come together in our comprehensive Life & Legacy Planning® process, which guides you to understand the law and how it will apply to your unique situation, considering your family dynamics and assets, so you can make educated and informed choices to ensure your loved ones stay out of court and out of conflict when something happens to you. This isn't just about creating legal documents – it's about creating a plan, maintaining it, and ensuring your loved ones know who to turn to when something happens to you.

When you create a Life & Legacy Plan with me, it includes clear instructions about who gets what, who's in charge of what, and most importantly, how to find and access everything when needed. It also includes specific directives about what happens if you become incapacitated. In addition, you’ll have the opportunity to outline your memorial service, and we’ll support you to record a Life & Legacy Interview that your loved ones will cherish for the rest of their lives.

The start of a new year is the perfect time to take these essential steps to protect the people you love. Don't wait until it's too late – the greatest gift you can give your loved ones is the gift of preparation and peace of mind.

How We Help You Get Started

As your Personal Family Lawyer® Firm, we help you put these essential protections in place. Through our Life & Legacy Planning® process, we'll guide you in creating a lasting message for your loved ones, implementing smart tax strategies, planning your final arrangements, getting your finances organized, and creating a comprehensive plan that ensures the people you love stay out of court and conflict. Most importantly, we'll help you make informed decisions that align with your values and wishes. So don’t delay! Let us help you start the new year by doing the right thing for your loved ones.

Click here to schedule a complimentary 15-minute consultation to learn more.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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CTA Update
Estate Planning

BOI/CTA UPDATE: Appeals Court Reinstates – Then Suspends – Corporate Transparency Act Filing Requirement

UPDATE: Many recent changes have occurred related to the Corporate Transparency Act (“CTA”) and the requirement for all business owners to disclose their personal information to the US government. 

Here’s what’s transpired since a Texas federal court first suspended the CTA filing deadline on December 3, 2024: 

  • On December 23, 2024, the 5th Circuit Court of Appeals reinstated the CTA and its filing requirements for business owners, extending the deadline from January 1, 2025 to January 13, 2025.
  • On December 26, 2024, the 5th Circuit reversed itself, suspending the deadline once again while it takes time to review the “parties’ weighty substantive arguments.”

What this means for you: As of now, the filing requirement is optional. However, as we’ve seen this week, this is subject to change on any given day, so check back here and we’ll keep you updated. In the meantime, to learn more about the CTA, including the filing requirements now and in the future, book a call with us to find out how we can support you and your family business in staying out of court and conflict.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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FAFSA
Estate Planning

Estate Planning Meets FAFSA: Smart Strategies for Asset Ownership

When preparing for college expenses, understanding how financial aid and estate planning intersect can make a significant difference. This article will break down the essentials of how asset ownership influences aid eligibility, offer actionable strategies to increase the chances of receiving aid, and highlight estate planning tools that can protect your wealth while optimizing support for your child’s education.

FAFSA and Asset Ownership: The Basics

The FAFSA, or Free Application for Federal Student Aid, evaluates a student’s financial need based on several factors, including family income and assets. However, not all assets are created equal in the eyes of FAFSA. The way those assets are owned—whether by the parent, the student, or even a third party—can have a big impact on financial aid eligibility.

Here’s the key: FAFSA assesses up to 5.64% of parent-owned assets when calculating the Expected Family Contribution (EFC). For student-owned assets, though, that number jumps to a whopping 20%. So, keeping assets out of your student’s name increases their chances of receiving financial aid. 

Put another way, parent-owned assets are less punitive than student-owned ones. Consider assets like your savings account, investments, or a 529 college savings plan. If you, the parent, own the asset, only 5.64% of its value is considered in the EFC calculation. 

But if your child owns assets outright—like in a UGMA or UTMA custodial account— those accounts will be subject to a 20% assessment. For example, if your child has $10,000 in one of these accounts, FAFSA will expect $2,000 of it to go toward college costs. Ouch.

What can you do? You can’t legally change ownership of UGMA/UTMA accounts because they belong to the child. However, for future savings, consider using a 529 plan or a parent’s investment account instead.

And what about third-party-owned assets? If Grandma owns the 529 plan, FAFSA doesn’t count the asset itself, but it will count distributions as student income in the following year—and student income (as compared to student assets) is assessed at up to 50%. If Grandma’s generous in the wrong way, that could seriously hurt your student’s financial aid package.

Estate Planning Meets FAFSA

Here’s where estate planning comes into play. By structuring your assets wisely, you can minimize their impact on financial aid. Let’s explore a few strategies:

1. Irrevocable Trusts

An irrevocable trust can be a powerful tool in estate planning and can remove assets from a person’s estate for tax purposes. However, irrevocable trusts are counted for FAFSA purposes if the student or parent is a beneficiary of an irrevocable trust. Note that the entire value of the trust should not be reported, but the beneficiary’s proportional share must be reported. In addition,  if the trust distributes income to the student, that income will be assessed at up to 50%. So use irrevocable trusts with caution.

2. Retirement Accounts: Hidden Gems

Good news: FAFSA does not count assets in qualified retirement accounts like 401(k)s, IRAs, and Roth IRAs. This makes retirement savings a double win—you’re preparing for your future in a tax-advantaged manner and protecting your child’s financial aid eligibility.

Pro tip: If you have extra savings that would otherwise count on FAFSA, consider contributing to your retirement account. It’s a FAFSA-friendly way to reduce your countable assets.

3. Pay Down Debt

Another savvy move is to use liquid assets to pay down debt, such as your mortgage or student loans. FAFSA doesn’t count your home’s equity or the balance of your debts, so this strategy can reduce your reportable assets without hurting your financial position.

4. Timing Is Everything

FAFSA looks at your financial situation as of the day you file the form. That means you can time certain financial moves to optimize your aid eligibility. For instance, if you’re planning to sell an investment or receive a large bonus, try to do so after filing FAFSA to avoid inflating your assets or income for that year.

Practical Steps to Take Now

So, what can you do right now to prepare? Here are some actionable steps:

Review Your Assets: Make a list of all your family’s assets, including who owns them. Pay special attention to student-owned accounts and assets held in trusts.

Shift Savings to FAFSA-Friendly Accounts: If you’re saving for college, prioritize 529 plans owned by you, the parent. Avoid putting large sums into custodial accounts.

Create a Life & Legacy Plan: Work with me to create a comprehensive Life & Legacy Plan that may include irrevocable trusts or other strategies to protect your assets and your financial aid eligibility.

Max Out Retirement Contributions: If possible, contribute to your 401(k) or IRA to reduce your countable assets while securing your financial future.

Plan Ahead for Income Events: Be mindful of how bonuses, stock sales, or other income events could affect your FAFSA profile. If possible, defer these until after filing.

The Big Picture

Balancing estate planning and FAFSA eligibility can feel like walking a tightrope. On one hand, you want to preserve your family’s wealth and secure your child’s future. On the other, you don’t want to leave money on the table when it comes to financial aid.

By understanding how asset ownership works and taking strategic steps, you can position your family for success. Whether it’s shifting assets, leveraging trusts, or timing your financial moves, a little planning can go a long way. And when that acceptance letter arrives—along with a generous financial aid package—you’ll be glad you took the time to get it right.

How We Help

As your Personal Family Lawyer® Firm, we can help you create a comprehensive strategy that optimizes both education funding and wealth preservation goals. We'll work with you to structure your assets effectively and ensure your plan adapts as the law changes, your assets change, or your family dynamics change. Our approach focuses on creating clarity and consistency across all aspects of your financial planning, from education funding to legacy preservation.

Book a call here to learn how we can help you create the right plan for your family.

This article is a service of a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.

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