Estate Planning 101: A Short and Lighthearted Overview

I wrote this short article in an effort to lighten things up as I delved into the dark and complicated subject of estate planning. I hope these high-level points can help you navigate life with more purpose and preparation.

Death and taxes, life’s only guarantee:

• Federal estate tax exemption’s 12 million, you see.
• Sentimental value counts, don't disagree; your kids might fight over that Le Creuset with glee.

Probate can slow your assets’ play

• It’s where properties through courts find their way
• Pay debts first, then split the rest,
• Even with a will, probate’s a guest.
• Lawyer’s fees, a cost to weigh.
• To avoid this tiresome delay,
• Keep reading to find another way.

Marriage and money, a better blend,

• Know your state’s property trend.
• Prenup, postnup, you do the dishes while I draft’em up,
• Sign and date with a notary, love mixes with law as we marry.
• Inheritances, gifts, what’s yours is yours, honey don’t worry.

Property inventory, are we rich yet?

• Keep a list, make wills less of a fret.
• State laws might contest your will,
• Records in order, easy to fill.
• Digital assets, don’t forget,
• Include your passwords, it’s a safe bet.
• Didn’t clear your browser’s past? Name a friend to handle your online blast.
• Comment “6 feet” for a worksheet fast.

Beneficiaries Galore

• When it comes to heirs, you’re not limited to one,
• No lawyer needed unless you crave “dead-hand” fun.
• Trust fund pets, let’s get wild,
• Sharing gifts, keep it mild.
• No-contest clauses, survivorship too,
• Pay debts, taxes before gifts renew.

When there’s a will, there’s a say,

• Best practice, make your estate plan stay.
• Wills, keep it simple and tight,
• Name your executor to handle any family fight.
• Feeling petty? Disinherit right.
• Control from the grave? Not quite.
• Holographic, nuncupative, not so bright,
• Traditional wills, signed, witnessed, in the light.

??Probate avoidance ≠ tax evasion, please not be mistaken.

Avoid probate like a toxic fling

• Living trusts, joint tenancies bring.
• Pay on death, name your kin,
• Legal papers for proper win.
• Not bulletproof, creditors might aim.
• If they snooze, they lose, probate is the best at limiting their game.

Living trust:

• Big ticket stuff, nice and robust,
• Remember to notarize that trust.
• Full control with Yogi-like flexibility,
• Debt, divorce, no one you trust? Keep reading for another possibility.

Joint tenancy, or entirety’s blend:

• Surviving spouse, to the end.
• Know your state’s property trend.
• Step-up basis, love transcends.
• Equal ownership, no amend.
• Joint tenancy, death’s around the bend.

Pay-On-Death tags:

• Deeds, registrations, don’t lag.
• After death, to beneficiaries fly,
• No will needed, no probate tie.
• While living, no rights apply.
• Bank accounts, vehicles, even your boat,
• Check state law, make a note.

Life Insurance, no need to scoff:

• Support dependents, estate tax lopped off.
• Salespeople aside, it’s a win,
• Give policy away, but don’t die for three years in.

Closing thoughts

Humans have complex relationships with money and with death, and estate planning forces us to face our mortality. While daunting, it's a chance to reflect on our values, relationships, and life's work. Perhaps the greatest gift we leave behind isn't our material wealth, but the time spent with loved ones and the memories that remain. Given our brief existence, I invite you to journey through life with more intention and playfulness; it's not all that serious.

Disclaimer: This article does not constitute legal advice, always consult with a professional in your state before implementing anything discussed here.