In this insightful episode of Money Talk With Tiff, Tiffany Grant sits down with estate planning expert Elizabeth Acevedo to dissect the intricacies of estate planning. Whether you're new to the concept or looking to refine your existing plans, this episode is packed with essential tips and common pitfalls to avoid.

Check out the full show notes: https://moneytalkwitht.com/podcast-show-notes/demystifying-estate-planning/

Takeaways

• Estate planning is essential for everyone, regardless of wealth, to ensure your wishes are honored.
• Many people mistakenly believe estate planning is only for the wealthy or complex situations.
• It's crucial to participate actively in the estate planning process to avoid confusion later.
• Having a complete list of assets and liabilities is vital for effective estate planning discussions.
• Choosing trusted individuals to make decisions on your behalf is a significant aspect of estate planning.
• Estate planning can be straightforward, and professionals can help simplify the process for you.

Resources

Weinstock Manion Law Firm - Learn more about Elizabeth Acevedo’s work and how to contact her.

Connect with Tiffany

Website: Money Talk With Tiff

Social Media: Follow @MoneyTalkWithT on all platforms

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Copyright 2024 Tiffany Grant

You know what it is? That's right. It's time to talk money with your money nerd and financial coach. Now tighten those purse strings and open those ears.

It's the Money Talk with Tiff podcast.

Hey, everyone.

I am so excited because I have Elizabeth Acevedo on the line, and she's here to talk to us about estate planning and just some things that we should think about when we're doing that. So. Hey, Elizabeth, how are you?

Good tip. How are you? Thank you so much for having me. I'm really excited for the chance to talk about this.

Yeah, no problem at all. Thank you for coming on. So let's hop right in.

So if there's people that are new here that have never heard anything about estate planning before, what is estate planning?

Sure, that's a great question and a good way to start. So estate planning is really putting on paper what you want to have happen with your assets when you pass away.

Um, but also beyond that, it's saying who you would want to have help you if there's ever a point in your life when you can't manage things for yourself. So, you know, you maybe get to a point where.

Where you don't want to have to deal with things day to day, and you want someone to be able to help do things like manage your finances or you need some help with your health care. Estate planning covers both parts of that. You know, those areas.

Gotcha. Gotcha. So what are some mistakes that people commonly make when it comes to estate plans?

People think they don't need an estate plan.

I think there's a misconception that estate planning is something that needs to be done, you know, if you're really wealthy or have complicated assets.

And the reality is most of us need to estate plan because most of us don't want the government to say, how are our properties distributed when we pass away?

If you don't actually put on paper what you want to have done when you pass away, you know, we as attorneys look to local law or your family will have to do that to figure out, you know, where things should go. And, you know, sometimes what the law says aligns with what, you know, my clients would want anyway, but often it doesn't.

And so really, you know, an estate plan is something that everyone should think about, and it doesn't have to be a complex process.

You know, sometimes it's as simple as you have a bank account, you can sign a designation form to say who that bank account should be distributed to when you pass away.

Sometimes it's that you have a more complicated family dynamic and you really want to take the time to spell out, you know, not only who should receive your assets, but also who should be in charge of winding down your affairs. And you do all of that through an estate plan plan.

The other thing that I think is maybe a misconception in estate planning is that it's difficult and that.

And maybe sometimes I joke that it somehow hastens your death because clients often, understandably, don't like to talk about death and don't like to think about the idea that there is a time when they may not be able to handle things for themselves.

And you know, what I really think taking the time to walk through these issues does is one, you can have the peace of mind of knowing that you've thought about it, you've said what you want to have done, and you may not have to think about it again. If what you put in place today is the same thing that you'd want 10 years from now, great, you've checked that box.

The other thing is that you have made it easier for the people that you care about to really be able to step in and manage things when you're no longer here. So that's the other thing.

I would say it's that it doesn't have to be something that is cumbersome, and it certainly doesn't have any impact on your mortality.

But it is something that generally I find even clients who are a little hesitant about the process and uncomfortable with the subject, when we finish everything, they're. They're at ease.

They are really comforted by the fact that, that they've taken the time to put something in place and that, and that they don't have to frankly think about it again in the near future.

Gotcha.

So what I heard was one, you need an estate plan regardless of who you are, what assets, anything that you have, because it protects you whenever you. You are not able to take care of things yourself. And then two, it's not as difficult as you think it is.

But I know that's probably what deters some people. They're like, oh, it's going to be complicated. And I got to think about all these people, you know, all of that stuff.

But if you sit down with a professional, it won't be too bad.

That's right, exactly.

Perfect. So what is another mistake that people make when it comes to estate plans?

I think it's not participating in the process.

A lot of times, you know, I'll work with couples and one, you know, member of the couple will kind of take the lead in, you know, making decisions or providing me the background information that I need in order to really give them a good snapshot and recommendations on what they should do.

And I find that that's really a disservice for the person who doesn't participate as much, because it is often the case then if the person who sort of took the lead is then the first to pass away, that the other person feels confused or overwhelmed by what they're kind of tasked with because they didn't really get the background from the beginning.

So I always encourage, especially when you have a couple working on an estate plan, that, you know, both people attend the meeting with an attorney and ask questions. Questions are welcome. They are good. If something's being said that doesn't make sense, don't be shy. You know, this is.

This is to help you and to benefit you, and you should understand it. That's the most important thing. So I think that's, you know, one of the biggest things I'm very sensitive to and on the lookout for.

One of the first things I always ask my clients when I meet with them is how do you best digest information? You know, do you like to read things? Do you like to have a lot of background? Are you great with charts?

Like, what's the best way for you to really be able to take what I'm saying to you?

And, like, let's make it plain English, because I know that one of the things that can be intimidating, especially when you work with a lawyer, is that there's all this legal speak. And, you know, it doesn't. Things don't need to be unclear.

And if they are questions, questions, questions, questions, don't be shy to ask them because you should always understand what you're putting in place and participate in the process.

Those are really two of the biggest things that I see, particularly when I work with someone after a family member or loved one has passed away, who didn't participate in the process, who kind of feels like they're trying to get up to speed in this, like, strange new world that they're not used to. And so if that's what I met with at that point, we sort of do all the things I just said, like, let's stop.

Let's figure out how you best take in information, and let's make sure you understand what's happening. Because it's.

It's important that people feel comfortable, especially with something as sensitive as thinking about how, you know, things are handled when they pass away.

Exactly.

And so with that being said, what are like three things that people should be prepared to bring with them or to know before they come to an estate planning meeting?

So the most important things for that meeting are one, having a complete list of your assets and any major liabilities. So, you know, if you own a business, have, you know, the information on the company.

If you have bank and brokerage accounts, just have general of how much is in each of them. Doesn't need to be down to the penny, but just a general overview.

If you have any major debt, like a mortgage on your home, just be sure to mention that so that, you know, your estate planner can really understand, you know, what you are working with in order to be able to give you the best advice. The second thing is to think through ahead of time some of those topics I mentioned.

So when you pass away, who are the people and sometimes, you know, charities that you would want to provide for and what does that look like? An attorney will really help you walk through the different options.

But if you've at least considered things like, you know, I have a lot of clients that have blended families. And so, you know, we talk through, okay, when, you know, mom passes away, what do we want want to have happen?

You know, do we want to provide for kids immediately or are we postponing everything through till later?

That's, you know, sort of things that if I don't know that my clients are in their second marriage or that there's a, you know, a child from before, I can't even raise that issue. So that's, you know, be prepared to, you know, think about the people you want to provide for and share information about your life.

And then the third thing I would say is think through the people in your life that you really trust to help you when you aren't able to do things for yourself.

I find that one of the hardest things people sometimes get stuck on is who would I want to make financial decisions for me if I can't do it for myself? Oh, my gosh, I'm so used to handling all of that. That's a really big responsibility.

So really kind of taking the time to think that through ahead of time will make the that initial meeting more productive.

Yes, those are great tips. And I'll especially say number three, because that was one thing that I struggled with.

And I think most people probably when they start thinking about this is like, who can I trust to make all the right decisions like I would with my money? And so for me, that took like, that was the question that took me the longest to figure out. So. So I'm glad that you mentioned that.

Yeah. I mean, and the one thing I will add just to say, because sometimes I'm always wary of things that prevent people from showing up to the meeting.

So if you have all of the other questions answered and are still sort of mulling over that last one, the who can you trust and who's the right person?

You can still get the process underway and have sort of a, you know, a TBD while your documents are being drafted so that all you have to do is sort of fill that last piece of information in if you otherwise know what you'd want to have done. That's just a little encouragement and tip to get the process going.

Yes, I love that. Because really, the hardest part is just starting, usually.

So as long as you start, you know, that one little question, even if it's after everything gets drafted and you're like, you know, I know who. At least you got the process started in the meantime time.

So if people were interested in learning more about estate planning or you, Elizabeth, where can they find you?

So about estate planning in general and about me. So I'm an attorney in Los Angeles. I work for the firm Weinstock Manion. You can Find me on LinkedIn.

You can also find me on my firm's webpage and my full contact information is there. So. So that if you ever had questions, I'd be happy to help.

Perfect. And I'll make sure I have all of those links in the show notes for our audience. So if you're doing something else, don't worry.

Just check out those show notes. So thank you so much, Elizabeth, for coming on the show today.

Of course. My pleasure. Thank you again for having me. And I encourage everyone to get that planning underway.

Yes. Yes. All right, bye.

Thank you for listening, joining, and being a part of the Money Talk with Tiff podcast this week.

You can check Tiff out every Thursday for a new Money Talk podcast, but if you just can't wait until next week, you can listen to previous podcast episodes@moneytalkwitht.com or follow TIFF on all social media platforms at MoneyTalkWitht until next time. Spend wise by spending less than you make. A word to the money wise is always sufficient.