What to do with Grandma's Ring

Three Estate Planning Mistakes Farmers and Ranchers Make—and How to Avoid Them Farming and ranching is more than just a livelihood; it is about preserving a legacy and a way of life. Unfortunately, many farmers and ranchers fail to create a comprehensive estate plan—or any estate plan at all. Without a proper estate plan, the family farm or ranch, passed down for generations, can end up being sold and converted to nonagricultural use, cutting the family’s legacy short and ending their unique lifestyle. Below are three common estate planning mistakes farmers and ranchers make and how to avoid them. Mistake #1—Failing to Plan As a farmer or rancher, you have distinct estate planning needs. You may have children who want—or do not want—to continue the farming or ranching business. You have to consider who should inherit your land, equipment, livestock, accounts, and other property, while trying to keep things fair and equal. As a result, you may be unable to decide what to do and end up doing nothing at all. Fortunately, many estate planning options are available that will help you fulfill your ultimate goals for the future. To preserve what you have and leave it to the next generation, you need to work with a team of experts, including attorneys, accountants, bankers, insurance specialists, and financial advisors, who are familiar with the nuances of estate planning and its intersection with farming or ranching legacies to ensure that the plan will work as anticipated when it is needed. Mistake #2—Relying on Joint Ownership You may believe that the easiest way to avoid having your loved ones go through the probate process at your death is to own your property jointly with them. However, transferring all or part of your farm during your lifetime may have unintended consequences. For example, farmland or ranch property that is jointly owned and enrolled in programs administered by the United States Department of Agriculture may result in subsidies being left on the table. In addition, joint ownership causes you to give up total and unilateral control of your real estate. Someone added as a joint owner to your account or property can make decisions about it: They may withdraw money from the account without your knowledge or consent. They can also prevent the property’s sale if they disagree with your decision to sell. Your co-owner’s creditors may also be able to go after jointly owned accounts and property. Unlike other planning options, joint ownership may not be easy to change, since “undoing” joint ownership can have significant costs and tax implications. Holding real estate in the name of a business entity (corporation, partnership, or limited liability company) or a trust is a better option, as it allows you to minimize liability and retain control. Mistake #3—Overlooking Liquidity Needs Incapacity (the inability to manage your own affairs) and death are expensive life events and often require cash to pay expenses. However, farmland and farming equipment are not easily converted to cash. Without properly planning for immediate and long-term cash needs, your family may be forced to quickly sell land and equipment for pennies on the dollar. You have several options when creating a plan to manage debt and expenses during your incapacity or after your death. Financial advisors, bankers, and insurance professionals can assist with securing lines of credit and the proper amount of disability, long-term care, and life insurance to prepare for the unexpected. Attorneys can assist by creating life insurance trusts, business entities, and other, more complex plans. Final Thoughts on Estate Planning for Farmers and Ranchers We understand that farmers and ranchers require specialized estate planning solutions. A team of advisors, including attorneys, accountants, bankers, insurance professionals, and financial advisors, can assist you in creating and maintaining a plan that will preserve your legacy and unique way of life. Our firm is experienced in supporting farmers and ranchers with achieving their estate planning goals. Please call the O'Donnell Law Center office today if you have any questions about this type of planning and to arrange for a consultation.

Estate Planning for Military Families Whatever the time of year, it is always good for members of the military and their loved ones to create or revisit their estate plan. Military families face unique estate planning considerations that others do not, especially when a family member is deployed overseas or receives a temporary duty assignment. In addition, service members have access to special benefits and resources that can add complexity to the planning process, so seeking help if you are a military family is important. Whether you are beginning your military service or have been serving for some time, the following may be important in your estate planning. Factors to Consider Estate plans should be customized to each person’s particular circumstances. As you create or update your plan, consider whether it addresses the following: ● Do you own real property and, if so, is it located in different states or countries? ● Are you married? ● Do you have minor children or children with special needs? ● Do you have retirement savings, such as a 401(k), an individual retirement account, or a Thrift Savings Plan? ● Are you planning to make charitable gifts? ● Do you anticipate multiple moves across states or international borders? Each of these considerations can significantly impact the structure and effectiveness of your estate plan. Estate Planning Necessities Many of the benefits offered to military families can help with estate planning. These include the following: ● Life insurance. Life insurance is an important part of an estate plan intended to benefit those who are financially dependent upon you when you pass away. Active-duty members often have access to low-cost life insurance for themselves and their loved ones from Servicemembers’ Group Life Insurance. You can find more information on the Department of Veterans Affairs (VA) website. When examining how your life insurance fits into your overall estate plan, work with us to ensure that the beneficiary designation works as expected. ● Last will and testament. Also known as a will, this crucial document outlines to whom, how, and when you want your assets (money, accounts, and property) distributed following your death. It also allows you to designate who you want to wind up your affairs after you pass away (referred to as an executor or personal representative, depending on the state) and specify who will care for any minor or special needs children. ● Revocable living trust. A trust is a separate legal entity that can hold property and accounts for the benefit of one or more people or entities. Similar to a will, a trust allows you to dictate who will receive your property at your death and how that property is to be administered. For a trust to work as intended, your assets must be retitled into the name of your trust, and your trust must be designated as the beneficiary of the assets that must remain in your name (e.g., life insurance and retirement accounts). While you are alive and well, you will likely be the initial trustee, which puts you in charge of managing the assets you have transferred to the trust. An added benefit of a trust is that it also provides instructions on who will step in and manage the trust assets during any period of your incapacity (inability to manage your own affairs) and after your death. For most families, a trust-centered estate plan is a better fit, but a will can be adequate for some families depending on their circumstances. ● Other benefits for survivors. Survivor benefit plans (SBPs) are pension-type plans in the form of an annuity that will pay eligible survivors—typically your surviving spouse and dependent children—a monthly benefit at your death. Likewise, Dependency and Indemnity Compensation (DIC) is a tax-free monthly benefit paid to eligible survivors of service members or Veterans who (1) die while on active duty, active duty for training, or inactive duty training; (2) died from a service-related disease or injury; or (3) were receiving, or entitled to receive, VA compensation for a service-related disability rated as totally disabling (100 percent) for a specified period of time before death. When evaluating any financial service or insurance product, it is a good idea to work with an estate planning attorney to ensure that any associated beneficiary designations align with your overall plan and provide the maximum benefit to your family. You Need Specialized Help Members of the military often experience frequent moves, have access to several forms of government benefits after service, and can be subject to some unusual tax rules. For these reasons, estate planning for military families is more complicated than it is for most others. An estate planning professional can assist you in setting up the following: ● Powers of attorney for financial matters and healthcare decisions (very helpful tools when a spouse is deployed) ● Living wills and other medical directives ● Powers of attorney or delegations of parental authority for minor children or separate guardian nominations ● Funeral and burial arrangements ● Wills ● Organ donation authorization ● Family care plans ● Life insurance ● Trusts ● Survivor benefits An estate plan has multiple objectives: to provide for your family’s financial security, to ensure your property is preserved and passed on to your loved ones in the way that you desire, and to determine who will manage your assets upon your death and if you become incapacitated, among others. We can guide you through the best options available to you and your family. Call the O'Donnell Law Center in Osage Beach today today.

As the owner of a vacation property, you are aware of the joy and responsibilities that come with ownership. Your second home is where you celebrate with your loved ones and make memories. To ensure that this destination can continue to bring joy to your family, it is important that you protect the property with a proper estate plan. Consider the following important questions as you begin the estate planning process. What will happen to the property at your death? The fate of your vacation property will largely depend on how it is currently owned. If you are the sole owner of the property, or if you own the property as a tenant in common with one or more other people, you will need to decide what will happen to your interest in the property. If you own the property jointly with another person as joint tenants with rights of survivorship or with a spouse as tenants by the entirety, the other owner will become the sole owner upon your death without court involvement. If your vacation property is owned by a trust or a limited liability company, the property will continue to be owned by these entities even after your death. The trust instrument or operating agreement may provide additional instructions about what will happen to the property upon your death. What do you want to happen to the property at your death? The benefit of proactively creating an estate plan is that you get to choose what happens to your money and property and make it legally binding. It is important to note that if you do not create a plan for your property (and you do not own it as a joint tenant with right of survivorship or tenant by the entirety), your loved ones will have to go through the probate court process according to your state’s laws. Probate is the court-supervised process in which your affairs are settled and your money and property are distributed to the appropriate people. It is important to note that owning property in a different state than where you reside could lead to your loved ones having to open two probates (one in the state where you resided at death and one in the state where the vacation property is located). When handling your vacation property, there are a variety of different options. ● Select one loved one to give the property outright. ● Leave the property outright to a group of people. ● Give the property to a group of people as tenants in common and create an ownership agreement. ● Prior to your death, transfer the property to your revocable living trust, to be held for a long period of time or indefinitely. Note: state law may limit the duration of the trust (known as the rule against perpetuities). If you want the trust to hold the property indefinitely, you must speak with an experienced estate planning attorney to accomplish this goal. ● Prior to your death, transfer the property to a special trust that owns only the property, to be held for a long period of time or indefinitely. ● Prior to your death, transfer the property to a limited liability company, to be held for a long period of time or indefinitely. ● Instruct your trusted decision maker to sell the property. Can your beneficiary afford the vacation property? While there may be a lot of happy memories associated with your vacation property, you know that there are also a lot of responsibilities. When you decide to leave your property to a person (or group of people) outright, they will become responsible for those financial obligations, such as mortgage payments (if any), utility bills, property insurance, and property taxes. If you want your beneficiary to keep the property, you must consider whether they can meet the financial obligations; if not, your beneficiary may end up selling the property prematurely. For all of your Estate Planning needs please contact The O'Donnell Law Center in Osage Beach

Approximately three-fourths of Americans do not have a basic will. Many of the same people also have children under the age of 18, which underscores a major misunderstanding about estate plans: They can accomplish much more than just handling financial assets (money, accounts, and property). One of the most important estate plan functions for parents of minor children is the ability to provide specific guidance about how their children will be cared for and who will care for them in case something happens to the parents. To account for all emergency contingencies concerning you and your children, your estate plan should form a comprehensive safety net that addresses your children’s care needs and protects them from the unthinkable. Tools You Need If You Have Minor Children As parents, we instinctively strive to shield our children from harm and set them up for success, now and in the future. While we cannot predict the future, we can prepare for it. Estate planning is a crucial step in this preparation, especially when minor children are involved. It is not only about distributing your money and property after your death; it is also about establishing ways to care for your children if you no longer can. Your death or incapacity (inability to manage your affairs) from a sudden illness or accident is a situation that you would likely rather not think about but must consider in preparing for worst- case scenarios that could lead to a court deciding who cares for your child. Data on parental mortality is sobering: More than 4 percent of minor children have lost at least one parent. If you wait too long to create your estate plan, it could be too late. More than any other reason, Americans cite procrastination as the reason they do not have an estate plan.3 Procrastinating on creating your estate plan could mean it will not be there when you—and your children—need it. To safeguard your children’s future, three estate planning tools are particularly important: a will, a power of attorney for minors, and a standalone nomination of guardian. Last Will and Testament A last will and testament (also known as a will) is a cornerstone of any estate plan, but it takes on added importance when you have minor children. Your will outlines your wishes regarding the distribution of your money and property after your death. It also allows you to do the following: ● Name a guardian . A guardian is the person you want to raise your children if you and the other legal parent are deceased. The most common choice of guardian is a close family member, such as grandparents or siblings, or a close family friend. ● Establish an inheritance for your children . Because minors cannot directly inherit money and property over a certain limit set by state law, there needs to be a way to handle their inheritance for them until they reach legal adulthood. A testamentary trust (one that is created in a will) is a safe way to set aside money and property for your minor children. The terms of the testamentary trust allow you to name a trustee to oversee the inheritance. Another benefit of a trust is that you can determine when the children receive their inheritance and how they will receive it. ● Name an executor. An executor (or personal representative) is the person you designate to carry out the instructions in your will, including managing your estate and distributing your money and property. They might work closely with the guardian and the trustee to ensure that your instructions are executed smoothly and according to plan. The same person may serve in more than one role in your estate plan (e.g., guardian and trustee, guardian and executor). Power of Attorney for Minors A power of attorney for minors, sometimes called a designation of standby guardian or something similar depending on the state, is a legal document that empowers a chosen individual (your agent or attorney-in-fact) to act for your minor child on your behalf. This person steps in to make decisions regarding your child’s care if you become incapacitated or unavailable. The power of attorney can grant the agent broad authority to handle various aspects of your child’s life, including the following: ● Healthcare: making medical decisions, consenting to treatments, and accessing medical records ● Education: enrolling your child in school, making educational choices, and attending school meetings ● Finances: managing your child’s finances, including accessing bank accounts, applying for benefits, and handling their inheritance ● Legal matters: representing your child’s legal interests in matters such as a custody dispute, personal injury claim, or inheritance matter ● Daily care: meeting your child’s food, shelter, clothing, and other basic needs Although the power of attorney grants the agent significant authority, there are limits to what it permits. The agent cannot consent to the child’s marriage or adoption. In addition, many state laws impose expiration dates on these documents (e.g., six months, one year), so it is important to review and update them regularly to ensure that they remain valid. Standalone Nomination of Guardian While a power of attorney addresses temporary situations, such as short-term incapacity or extended travel, a standalone nomination of guardian document focuses on the long-term care of your children in the event of your death or incapacity. Without a designated guardian, a court will decide who cares for your children. The guardianship process can be lengthy and uncertain and could potentially result in the appointment of a caretaker you would not want gaining custody of your kids. You should name a guardian in your will. However, a standalone document that also names a guardian (if allowed in your state) offers the added benefit of being easier to update than a will, which often requires more formalities and can take longer to change. Revocable Living Trust In addition to a power of attorney, nomination of guardian, and will, the parents of minor children might consider a revocable living trust that holds their accounts and property during their lifetime and distributes them after their death. You (the parent) maintain control of the accounts and property in the trust while you are alive as the current trustee. You can change the trust’s terms as needed because you are the trustmaker, and this type of trust is revocable. A revocable living trust can help avoid probate and give your children faster access to the resources they need. You can also specify how and when your children receive their inheritance, name a successor trustee to continue management of the trust if you suffer incapacity, and provide financial support for the guardian, further synergizing your estate plan. How These Tools Work Together—and What Can Happen If You Do Not Plan These three estate planning tools are not interchangeable; they are complementary and designed to work together to address immediate and long-term needs in a range of potential scenarios. Imagine a scenario where both parents are in a car accident. One parent dies, and the other is severely injured and temporarily incapacitated. The agent named in the temporary power of attorney or delegation of standby guardian immediately steps in to temporarily care for the children. If the injured parent passes away, the designated guardian (who may be the same person as the agent under the temporary power of attorney) named in the will or standalone document can provide the children with a stable permanent home. The will can be structured so that the children’s inheritance is managed through a trust that specifies how and when their inheritances should be spent and distributed. Failure to have any one of these estate planning tools can lead to complications and unintended consequences for your minor children. For example: ● A missing temporary power of attorney could lead to delays in, or the inability to, make emergency decisions about medical treatment. ● A missing guardian nomination document could lead to a court choosing a guardian you would not have chosen. Ostensibly, the choice a judge makes will be in the child’s best interest, but do they really know your child and family dynamics well enough to make this choice? ● A missing will can also lead to a court appointing a guardian who is someone other than your first choice. In addition, your children may not receive the inheritance you intended in the way that you intended, and you lose the ability to specify how your money and property are used for their benefit. Further, they will end up getting what is left of their inheritance outright when they reach the age of majority (18 or 21, depending on the state). Other Planning Tools and Tips for Parents Parents should understand that they can only nominate a guardian for their child, not legally appoint one; the court has the final authority to decide, though it gives significant weight to the parents’ nomination. If there is evidence that your chosen guardian is unfit or unable to provide proper care, the court may appoint a different guardian in the child’s best interest, even if it goes against your wishes. There is also the chance that a family member could contest your guardianship choice or your first choice of guardian is unavailable. These outcomes are unlikely, but since they could undermine your wishes, there are additional steps you can take to minimize the risk and strengthen your case. ● In a separate letter, sometimes referred to as a letter of intent, clearly state your choice of guardian and provide a detailed explanation of why you believe this person is the best fit. Speak to their qualifications, relationship with your children, and ability to provide a stable and loving home. ● Name alternative guardians in case your first choice is unable or unwilling to serve. ● To prevent misunderstandings and reduce the likelihood of a challenge, have open and honest conversations with family members about your guardianship decision. Explain your reasoning and address any questions or concerns they may have. ● Have your will or separate guardian nomination form properly executed according to your state’s laws. To be legally binding, they may need to be witnessed and notarized and meet other requirements. Fitting Together the Pieces of Your Estate Plan Each part of an estate plan has a role to play, but they work best when considered as parts of a larger plan that addresses big issues such as the well-being of your minor children. A will, temporary power of attorney, and standalone guardian document are not interchangeable; they are complementary. Incorporating all three into your plan, alongside other strategies such as a revocable living trust and a letter of intent, addresses the immediate and long-term needs of your minor children in any eventuality. If you have minor children, estate planning is a necessity. Do not leave your children’s future to chance. Consult with us at The O'Donnell law Center to create a multipoint plan that protects you and your family.