A thoughtful estate plan can protect loved ones and avoid future complications
By David Wren
It seems like such an obvious, and necessary, task – making a will – yet more than two-thirds of U.S. adults have yet to do it.
“We all procrastinate,” said Irv Condon, probate judge for Charleston County, who handles legal estate sales and transfers. “We think we’re bulletproof and will be here forever. But you just never know when God’s going to call us, so we need to be prepared.”
As head of one of South Carolina’s largest probate courts, handling an average of 2,200 estates per year, Condon sees education as a primary part of his job. He regularly holds seminars offering free advice for those wishing to manage their assets if they become incapacitated and prepare for distribution of those assets after death.
He doesn’t recommend going it alone. Navigating the intricacies of some documents is one of the key reasons people avoid estate planning altogether, so Condon strongly advises consulting an attorney.
“The times when we see disputes are generally when an attorney has not been involved,” he said.
Estate planning isn’t necessarily all about death.
“It’s around incapacity, it’s around giving, it’s around wealth transfer and it’s about asset protection,” said Sam McBride, a financial planner with Commonwealth Financial Group on Daniel Island. McBride regularly co-hosts financial seminars for retirees through the College of Charleston.
“One of the first things that we encourage folks to review is their beneficiary designations,” McBride said. “Because the beneficiary designation on something like a life insurance policy or an investment account will actually supersede any other estate planning document that’s out there, and will create a direct transfer.”
It’s important to have the right directives in place, he said, to ensure wealth is either accessed or transferred properly and according to one’s wishes.
Family Matters
Second marriages and blended families can often add complexity to estate planning, requiring more nuanced documents like a revocable trust.
If there is a divorce, the birth of another child or a death in the family, it’s always a good idea to revisit estate planning documents to make sure they reflect current circumstances. The same goes for the purchase of real estate or a move to another state. A good rule of thumb is to review documents every time you file your taxes, Condon said. McBride recommends a check at least every three years.
One of the biggest mistakes McBride sees is when someone creates a trust document but then fails to move any of their assets into the trust or name a beneficiary.
“So, at that point, it’s just a worthless piece of paper,” he said.
While some people might find it difficult to discuss end-of-life matters, avoiding those conversations can only postpone potential conflict, leaving relatives to figure – and, often, fight – it out after their loved one is gone.
Absolutely Necessary
A last will and testament that names an executor and details how that person must carry out the deceased’s wishes is perhaps the most important document individuals need for estate planning.
But it’s hardly the only one.
Experts recommend considering the following for a comprehensive estate planning portfolio.
- Revocable living trust: Holds assets such as real estate and personal property while a person is still alive and then passes those assets to beneficiaries upon death or incapacity. A key benefit is the trust does not have to go through probate, saving time and ensuring privacy. Property inherited in this type of trust is also eligible under tax rules for what’s known as a step up in basis, eliminating capital gains taxes at time of transfer.
- Durable financial power of attorney: Designates another person to manage your financial affairs, such as paying bills and handling property, if you become incapacitated or can’t do it yourself.
- Healthcare power of attorney: Designates another person to make medical decisions on your behalf.
- Living will or advance healthcare directive: Details wishes for end-of-life care, such as life support, resuscitation, feeding tubes, etc.
- The five ‘wishes’: A fairly new type of living will that spells out who can make healthcare decisions; the medical treatment that’s desired; the level of comfort desired, such as pain management; personal and spiritual wishes, such as whether someone wants to die at home or have another person pray for them; and messages to loved ones, including funeral or memorial plans.
It’s also good to have a letter to the estate’s executor or a family member letting them know where documents can be found (a safe-deposit box is a good choice), where financial accounts are located, internet passwords and funeral wishes.
“The saying is that there are only two certainties in life – death and taxes,” Condon said. “We always complain about taxes, but nobody talks about death and dying.”
Having a proper set of estate planning documents in place can make life’s other certainty just a little easier on those left behind.
“The great wealth transfer is happening,” McBride said. “It can be done strategically, it can be done haphazardly or it can be done by accident. But I think a proactive approach would be helpful and it can do a lot of good.”
More Information
Judge Irv Condon conducts free virtual & in-person workshops on estate administration and estate planning.
Virtual Estate Planning Workshops September 14 • 10 a.m. October 5 • 10 a.m. November 2 • 10 a.m. December 7 • 10 a.m.
In-Person Estate Administration Workshop September 3 • 6:30 p.m. Otranto Road Library 2261 Otranto Rd., North Charleston
For more information or to register, visit www.charlestoncounty.gov/departments/probate/freeworkshopform.php
Trident Area Agency on Aging Free Wills Clinic (registration required) Wednesday, Sept. 23, 10 a.m. – 3:30 p.m. Trident Area Agency on Aging 2456 Remount Road, Suite 305-C, North Charleston Call 843-745-7055
Trident Area Agency on Aging also offers resources to help seniors and their families get started, including The South Carolina Senior Citizens’ Handbook, a guide to laws and programs affecting older adults.
