In a powerful financial discussion, Joe Anderson and Alison Ali outlined the key components of a solid estate plan and highlighted the risks of leaving things to chance. Whether you’re 35 or 75, have a small condo or multiple properties, a smart estate plan ensures your family is protected, your wishes are honored, and your assets are transferred efficiently.

Here’s what every household needs to know.

1. Why Estate Planning Matters More Than You Think

More than 70% of Americans have incorrect or missing estate plans. That means their assets will be sorted through probate—a public, expensive, and slow process that affects over 3 million people each year and costs an estimated $2 billion in fees.

Worse still, some estates lose up to 50% of their value due to taxes and legal costs.

Creating an estate plan now helps:

• Bypass the court system
• Keep your affairs private
• Save your heirs time, money, and confusion

2. Wills vs. Trusts: Know the Difference

A will outlines who gets what—but still goes through probate.

A trust avoids probate altogether. It lets you:

• Transfer assets privately
• Handle complex family situations (like blended families or businesses)
• Provide flexibility and protection beyond death

Don’t forget the paperwork:

• Power of Attorney for finances
• Healthcare Directive for medical decisions
• HIPAA Authorization to grant access to medical records

3. Common Estate Planning Mistakes

Avoid these pitfalls that can derail even the best intentions:

• Dying without a plan (intestate) leaves everything to the courts
• Relying only on a will when a trust is needed
• Not funding a trust—if your assets aren’t titled correctly, the trust doesn’t work
• Giving away property before death, triggering avoidable capital gains taxes
• Joint ownership mishaps, such as assets going to unintended beneficiaries or being seized by a co-owner’s creditors

Regular updates are critical—especially after marriage, divorce, a new child, or buying property.

4. Planning for Your Children’s Future

Estate planning isn’t just about money—it’s about people.

For parents, your plan should include:

• Guardianship instructions for minor children
• How and when funds should be used (e.g., education, housing, health)
• Naming trustees or guardians who are responsible, capable, and ideally local

Don’t assume kids want to keep the house. Clarify with them now, and document your decisions.

5. Update Every 3–5 Years

Tax laws change. So does life. That’s why Alison recommends reviewing your plan every few years or after major events like:

• Marriage or divorce
• A child turning 18
• Buying or selling a business
• Inheriting money or property

Your plan is only as good as its last update.

6. Everyone Has an Estate Plan—Even If You Don’t Write One

As Alison noted, if you don’t make an estate plan, the state has one for you. That often means:

• Delayed distributions
• Higher legal fees
• Misaligned outcomes (e.g., ex-spouses or distant relatives inheriting your assets)

Creating your own plan ensures you—not the courts—decide what happens.

7. Powers of Attorney and Healthcare Directives

These documents are essential while you’re still alive but unable to act:

• Financial Power of Attorney: Who manages your money if you’re incapacitated?
• Healthcare Power of Attorney: Who makes medical decisions?
• Living Will: What are your wishes for end-of-life care?

You can set these to activate immediately or only upon incapacity (“springing”). You can also require multiple agents to act jointly.

8. Don’t Forget Your Digital Assets

Your estate plan should include instructions for:

• Cryptocurrency wallets and NFTs
• Email and cloud storage
• Social media accounts (e.g., Facebook legacy contacts)

Without clear directives, these assets could be lost forever—or fall into the wrong hands.

9. Talk to Your Family—Before It’s Too Late

Discussing estate plans can feel uncomfortable—but silence causes more problems.

Make sure your loved ones know:

• What your plan includes (not necessarily dollar amounts)
• Where your documents are stored
• Who your attorney, trustee, or executor is

Clarity now prevents chaos later.

10. Including Pets in Your Plan

Yes, you can—and should—plan for your pets.

Designate:

• A guardian who is willing and able
• A trust or account to cover their care
• Specific instructions for medical needs and routines

Joe noted that some people leave entire estates to pets. You don’t have to go that far—but make sure they’re not forgotten.

11. Understand What Happens to Pensions and Annuities

Not all pensions and annuities pass on to heirs. It depends on the structure:

• Life-only annuities stop at death
• Joint or survivor options continue paying a spouse or beneficiary
• Period-certain payouts guarantee income for a set time, even after death

Make sure beneficiaries understand what’s available—and what isn’t.

12. Get Organized with the Right Tools

Joe and Alison recommend tools like:

• Estate Planning Organizer
• Survivor’s Guide

These documents help you gather account information, key contacts, and final wishes—all in one place. They’re available through their website and offer peace of mind to both you and your heirs.

Final Thoughts: Start Now, Adjust Later

Estate planning isn’t about how much you have—it’s about protecting what matters.

Whether you’re leaving behind a house, a retirement account, or a digital empire, creating a comprehensive, updated, and thoughtful plan ensures your loved ones are cared for and your legacy lives on—just the way you want.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post How to Avoid Probate, Protect Your Family, and Control Your Legacy appeared first on ROI TV.

Estate planning is a critical process that ensures your assets are managed and distributed according to your wishes upon incapacitation or death. Despite its importance, a significant number of individuals lack essential estate planning documents, potentially leaving their estates subject to state laws and probate processes. Key components of a comprehensive estate plan include:

• Will or Trust: Legal instruments that outline how your assets should be distributed.
• Healthcare Directives: Documents specifying your medical preferences if you’re unable to communicate them.
• Durable Powers of Attorney: Designations allowing trusted individuals to make financial or medical decisions on your behalf.

Without these documents, your estate may undergo probate—a court-supervised process that can be time-consuming and costly, with procedures varying by state.

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Will vs. Living Trust

Understanding the differences between a will and a living trust is essential:

• Will: Becomes effective upon death and outlines asset distribution. However, assets governed by a will typically go through probate.
• Living Trust: Takes effect once signed and funded, allowing assets to bypass probate, maintain privacy, and facilitate efficient distribution. Properly titling assets in the trust’s name is crucial for its effectiveness.

Choosing between a will and a living trust depends on factors like estate complexity, privacy concerns, and the desire to avoid probate.

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Types of Trusts

Trusts are versatile tools in estate planning, primarily categorized as:

• Revocable Trusts: Can be altered or revoked during the grantor’s lifetime and are commonly used to avoid probate.
• Irrevocable Trusts: Cannot be changed once established and are utilized for advanced planning, such as reducing estate taxes and providing asset protection.

The choice between revocable and irrevocable trusts depends on your estate planning objectives and the level of control you wish to maintain.

morganstanley.com

Gifting Strategies and Tax Benefits

Incorporating gifting into your estate plan can be beneficial:

• Annual Gift Tax Exclusion: Allows you to gift up to $17,000 per person annually without incurring gift tax or affecting your lifetime exemption.
• Lifetime Exemption: As of 2023, the federal lifetime gift and estate tax exemption is $12.92 million per individual.
• Donor-Advised Funds: Enable immediate tax deductions while allowing you to recommend grants to charities over time.
• Gifting Appreciated Assets: Donating assets like stocks can help avoid capital gains taxes.

Implementing these strategies can reduce the taxable value of your estate and support your philanthropic goals.

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Common Mistakes and Best Practices

To ensure the effectiveness of your estate plan:

• Properly Fund Trusts: Ensure assets are correctly titled in the trust’s name.
• Organize Financial Documents: Maintain an updated inventory of assets and important documents.
• Educate Beneficiaries: Inform heirs about the estate plan to promote smooth transitions and preserve family wealth.

Utilizing tools like estate planning organizers and survivor guides can assist in maintaining comprehensive and accessible records.

morganstanley.com

Special Considerations

When incorporating retirement accounts and business entities into your estate plan:

• Retirement Accounts: Typically, these should not be placed directly into a trust due to potential tax implications. Instead, consider naming individuals or trusts as beneficiaries.
• Business Entities: Assets like LLCs can be transferred into a trust to ensure seamless management and succession.

Consulting with an estate planning attorney can provide guidance tailored to your specific circumstances.

Conclusion

Estate planning is a vital process to ensure your assets are distributed according to your wishes and to minimize potential legal challenges. By understanding the roles of wills, trusts, and gifting strategies, you can create a comprehensive plan that secures your legacy and provides peace of mind for you and your loved ones.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post Giving While Living appeared first on ROI TV.

In this guide, we’ll cover the most important elements of estate planning, from the basics of wills and trusts to digital assets and the need for powers of attorney. Whether you’re just getting started or need to update your plan, here are the seven critical steps to avoid common estate planning errors.

1. Estate Planning Basics: The Foundation of a Strong Legacy

Estate planning isn’t just for the wealthy—it’s for anyone who wants their assets distributed according to their wishes. It involves creating a strategy for the distribution of your wealth, property, and possessions after death. The key documents involved in estate planning include:

• Wills – Dictating who inherits your assets.
• Trusts – Designed to avoid probate and control how and when assets are distributed.
• Powers of attorney – Naming individuals to make health or financial decisions if you become incapacitated.
• Healthcare directives – Outlining your preferences for medical care.

Without a well-thought-out estate plan, the courts may decide how your assets are distributed, often leading to delays, extra costs, and stress for your loved ones.

2. Why Wills and Trusts Are Critical for Your Estate

One of the most common estate planning mistakes is failing to distinguish between the roles of a will and a trust. While a will outlines how your assets will be distributed, it does not avoid probate—a potentially lengthy and costly legal process. On the other hand, setting up a trust allows you to transfer assets without probate, giving you more control over when and how your beneficiaries receive their inheritance.

However, establishing a trust is only effective if it’s properly funded. This means ensuring that assets like real estate, bank accounts, and investments are titled in the name of the trust. Funding your trust correctly helps avoid probate and ensures your wishes are carried out smoothly.

3. Properly Funding Trusts to Avoid Probate

One of the most expensive and time-consuming mistakes people make is not funding their trust properly. If your assets aren’t titled in the name of the trust, they may still be subject to probate—defeating the purpose of having a trust in the first place.

To avoid this issue:

• Review property titles: Ensure that your home, vehicles, and any real estate are titled under the trust’s name.
• Check your financial accounts: Make sure bank and brokerage accounts are properly aligned with your trust. Sometimes, a simple oversight in titling can cause major legal hurdles down the line.

4. Planning for Your Children’s Future: Guardianship and Financial Guidance

When it comes to estate planning, your children’s future is paramount. Beyond naming beneficiaries, consider naming guardians for minor children and specifying how you’d like their inheritance to be used for their care and education. Think about:

• How much financial responsibility should your children have?
• At what age will they inherit?
• What values do you want them to uphold?

It’s important to ensure that the funds set aside for their support are used wisely, particularly if your children are still young or lack financial acumen. You can use your estate plan to set guidelines for how the money is managed.

5. Update Your Estate Plan Regularly to Reflect Life Changes

An outdated estate plan is almost as dangerous as not having one at all. Life is constantly evolving—births, deaths, marriages, divorces, and even changes in tax laws can impact your estate. It’s recommended that you update your estate plan every 3 to 5 years or after any significant life event to ensure it reflects your current wishes and legal requirements.

Key life events that may require estate plan updates include:

• Marriage or divorce
• The birth of a child or grandchild
• Changes in tax laws
• Major financial changes, such as the purchase or sale of property

6. Don’t Overlook Powers of Attorney for Health and Financial Decisions

Another key aspect of estate planning is naming a power of attorney (POA) for health care and financial decisions. If you become incapacitated, you’ll want someone you trust to manage your affairs. There are two primary types of POA:

• Financial POA: Allows someone to manage your finances.
• Healthcare POA: Grants someone the authority to make medical decisions on your behalf.

Choosing the right individual and regularly updating these documents ensures your wishes will be honored should the need arise.

7. Don’t Forget About Digital Assets

In today’s digital world, it’s essential to consider how you’ll handle digital assets like email accounts, social media profiles, and even cryptocurrency. Many estate plans overlook digital assets, which can create confusion after death.

Make sure you:

• Include provisions in your estate plan that specify how you’d like your digital assets to be managed or distributed.
• Use settings within social media accounts to determine who has control over your profiles after you pass.

By addressing digital assets in your estate plan, you can prevent headaches for your heirs and ensure your digital life is handled according to your wishes.

Take Action Today: Steps to Secure Your Legacy

Avoiding common estate planning mistakes will save your loved ones time, money, and stress. Here are the next steps to ensure your estate is in order:

1. Update estate plan documents every 3 to 5 years or after significant life changes.
2. Ensure all assets are properly titled in the name of the trust.
3. Review and update beneficiaries for retirement accounts.
4. Discuss your wishes and estate plan with family members to avoid confusion.
5. Create a plan for pets to ensure they are cared for after your passing.
6. Verify pension and annuity terms for post-death income continuation.

Conclusion
Estate planning is one of the most important things you can do to protect your family and ensure your wishes are honored after death. By avoiding common mistakes like improperly funding trusts, neglecting digital assets, or failing to update your plan, you’ll help prevent probate, minimize taxes, and leave behind a clear legacy for your loved ones.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

The post 7 Essential Steps to Avoid Common Estate Planning Mistakes and Secure Your Legacy appeared first on ROI TV.