40% of People Say They Don't Have Enough to Make a Will

Four in 10 people believe they do not have enough assets to make a will, according to Caring.com’s 2024 Wills and Estate Planning Study, which surveyed more than 2,400 individuals.

This statistic reflects a common misconception about estate planning: that it is only for the wealthy.

In reality, estate planning can benefit people across the economic spectrum. Involving more than passing on wealth, estate planning also encompasses planning for aging, illnesses, or injuries, which can be unpredictable. Estate planning allows individuals to make crucial decisions, such as who will care for their children if they pass away or what kind of care they would prefer to receive in their later years.

What Is a Will, and Why Do I Need One?

A will stands among the most basic of estate planning documents. In a will, you can specify who receives your possessions upon your death. This could include friends, family members, nonprofit organizations, or other entities. Having a valid will in place can help your loved ones avoid potential arguments over your assets, such as real estate or any items you had of sentimental value.

In this legal document, you also name someone to follow the instructions you have outlined. If you have minor children, you can appoint someone you trust as their guardian in your will. Likewise, you may put plans in place in your will for your pets should you pass away.

Keep in mind that you should update your will and the rest of your estate plan when significant changes happen in your life. For example, you may have recently welcomed a new grandchild, moved to a new state, or filed for divorce.

More People Are Saying They Do Not Have Enough Assets

The Caring.com annual survey sheds light on Americans’ views about estate planning, highlighting the misconceptions that may delay or prevent them from planning.

From 2022 to 2024, the proportion of people saying they lack adequate resources to execute a will rose by 21 percent.

Compared with respondents with higher incomes, those with lower incomes were twice as likely to report not having enough assets to make a will.

People with less education were also more likely to cite insufficient assets. Forty-three percent of respondents with a high school diploma or less education said they did not have a will because they did not have enough to leave anyone.

Few Americans Have a Will

Interestingly, 64 percent of people surveyed said having a will is very or somewhat important.

Despite this, only 32 percent have a will as of 2024 — a 6 percent decrease from 2023. In 2024, 14 percent more adults also indicated a lack of assets as a reason for not having a plan.

The Impact of Inflation

Increasing prices of goods and necessities have placed financial strain on households. Inflation has therefore shaped views on estate planning as well.

Some see rising inflation as a motivator for planning, while others see it as reducing the need for an estate plan because it magnifies their lack of financial resources.

• One in five people saw a greater need for estate planning because inflation made them worry about their loved ones’ financial futures.
• Nine percent said they believe there is less need for estate planning because inflation reduced the value of their assets.
• Eight percent said they do not need a will because they have sold their assets to combat inflation.
• Black Americans were the most likely to say inflation had affected their views of estate planning in a positive way.

Reasons for Estate Planning

While some never intend to create an estate plan, others delay planning, waiting for certain life events to take place.

Approximately one in four Americans report that nothing would prompt them to get a will. Forty-three percent cited procrastination as the reason for not making a will.

Many Americans wait for medical diagnoses, major purchases, retirement, or family changes before they start estate planning.

• Forty-three percent of people surveyed said they would make a will after a serious medical diagnosis or health concern.
• About a quarter of people indicated they would start estate planning after purchasing a home or retiring.
• Seventeen percent said that the death of a loved one would motivate them to start planning.
• Fifteen percent said they would make an estate plan if it were part of an employer benefit.

While many people wait for a motivator to start estate planning, it can be challenging to predict when an illness, injury, death, or significant life change may occur. Being proactive and creating an estate plan in advance of life events can offer a layer of protection.

Work With Your Estate Planning Attorney

Even if you think you do not have enough assets to make a will, there are many benefits to having an estate plan. Your estate planning attorney can support you in creating a plan for the future that addresses your needs. They also can help you prepare advance directives such as powers of attorney, appoint a guardian for your minor children, and plan for long-term care.

Contact us

Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esq.

Law Office of Elise Lampert

9595 Wilshire Blvd. | Suite 900 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

A Useless Power of Attorney: Avoid Free Legal Documents

A power of attorney designates a trusted individual to make decisions or conduct transactions on your behalf. They could be related to personal finances, business operations, or medical needs and used for a single immediate purpose or an ongoing situation.

This may sound pretty straightforward. You might be tempted to download a free form to take care of it when looking for services online. But will that be enough to ensure the document is legally recognized, important matters are handled quickly, and your specific instructions are followed?

Understanding Powers of Attorney

Implementing Power of Attorney (POA) documents is an integral part of your estate planning process. All states recognize powers of attorney, but rules and requirements will differ from state to state. The POA document gives one or more individuals the legal authority to act as your agent on your behalf.

Depending on which POA you choose, you may limit the agent's power to a particular activity. This might include things like real estate sales or broader applications.

A power of attorney may give permanent or temporary authority to the agent you appoint. You can set the POA up to invoke immediately. Or, you can have it activate when a future event, such as a physical disability, occurs. The latter is a "springing" power of attorney.

Other types of powers of attorney include limited, durable, and general POAs.

For example, a general POA permits the agent to deal with any matters on your behalf that state law allows. Under such an agreement, the agent may sign checks, handle bank accounts, sell property, manage assets, and file taxes when you are unable. This POA has a wide latitude of authority. Therefore, there needs to be coordination between you and your agent to ensure your best interests are always represented.

The better-known powers of attorney are durable and take effect if you are incapacitated. The word "durable" means the powers will remain intact even when you can no longer manage your affairs. There are two types of durable POAs; one handles financial matters, and the other manages medical affairs, often called a health care directive.

You also may rescind powers of attorney. However, most states will require written notice of revocation to the named individual or entity.

Consider the following scenarios, when free, online powers of attorney don't prove as helpful as you may have hoped.

Financial Power of Attorney

Suppose a business colleague wants you to take care of their business operations. You become responsible for making critical decisions while they are out of the country.

They give you POA by using a free online legal document that promises to contain everything you need to comply with state law. The document seems noticeably concise. You wonder why legal documents need to be so lengthy and expensive in the first place.

When you go to your friend’s bank to transfer funds, the bank denies you access. You discover why: The bank requires different forms and rules for a power of attorney. Your friend had no knowledge of these requirements, and now you won't able to contact them for several weeks.

When you track them down, they must fill out additional forms with the bank and get them notarized before you attempt any more transactions. The legal document failed.

Health Care or Medical Power of Attorney

You receive a call about a good friend who has suffered a head injury and needs urgent nursing home care. He is looking at long-term care costs between $5,000 and $8,000 a month for rehabilitation. However, you know he lives on a fixed income of only $2,500 a month from Social Security. Medicare doesn’t cover long-term care services, and his income is too high to qualify for assistance from Medicaid.

On top of facing a financial crisis, someone needs to make decisions about the level and cost of care he can afford. Your friend doesn’t have the capacity to make them in his current situation.

You know what he has expressed in the past about specific treatments and efforts to prolong his life. You even witnessed the online form he used for a health care power of attorney.

However, his family members contest the document. Meanwhile, the doctors won’t listen to you without more specific advanced health care directives and a signed HIPAA release form. Another legal document failure.

The Dangers of Free Online Documents

How can online documents be legally approved for use by the public but insufficient when you need to use them? The POA documents that you may have believed would prove helpful in the scenarios above only offered general information for the most basic needs. With so many variables in finances, business, and medical situations, the language is often not specific enough to address the unique problem.

When you get a POA through an estate planning firm, each document contains wording regarding several circumstances and refers to other critical documents, like living wills and trusts. Additional details instruct the person you've chosen to act on your behalf when dealing with decisions regarding banking and medical institutions or personnel. For example, it may permit them to set up another trust, reorganize assets, open and close banking or investment accounts, and require health care professionals to comply with your medical wishes.

Connect With Your Estate Planning Attorney

A free online power of attorney could cost you valuable time, money, and frustration. Many other legal considerations determine how your power of attorney will work.

The best way to establish powers of attorney is to work with your estate planning attorney. They can go over common pitfalls and discuss options on how to avoid them. They also understand the criteria for identifying the individuals or agents to represent your interests.

When you rely on legal documents to get an important job done or simplify decisions in an emergency, it needs to work as promised. Consult with your estate planner to ensure you are prepared to handle any situation. The biggest benefit of having these matters settled before you have passed away or become unable to handle your affairs is allowing your family to care or grieve for you instead of being caught up in logistics.

Contact us

Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esq.

Law Office of Elise Lampert

9595 Wilshire Blvd. | Suite 900 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

Who Does a Probate Attorney Represent: Executor or Heirs?

In estate planning, the executor, or personal representative, is responsible for managing the administration of the estate after an individual passes away. An executor may be a person or an institution. Their duties include applying for probate and ensuring that the heirs receive assets according to the deceased person's wishes. When an estate needs to go through the probate process, the executor is also the one who hires a probate lawyer.

What Is Probate?

Probate is a standard legal procedure formalizing how some assets pass from decedents to their chosen heirs. Whether or not probate is necessary depends in part on the type of property as well as the state laws where the decedent lived. While probate can be a complex process for vast estates, it’s often a simple formality for most Americans. Essentially, probate allows a judge to give legal permission for assets to pass whether or not there is a last will.

The Role of the Probate Lawyer

Whether you are an executor or an heir of the probate estate, knowing the probate lawyer’s role is essential. Consider it one of the first steps you should take at the beginning of the probate process. One of the biggest sources of conflict in probating an estate is understanding the role of the probate attorney.

Many executors don’t understand the probate process and end up leaving all the tasks up to the lawyer. Meanwhile, the heirs of the estate may hear the executor say, “This is what the lawyer says we have to do.”

An executor has an obligation to act in the best interest of the estate's heirs. This means the executor is acting in the role of a fiduciary. If the executor owes a fiduciary duty to the heirs of the estate, then does the lawyer whom the executor hired also owe a fiduciary duty to the heirs? The answer to that question depends on the state in which the estate is going through probate.

To be clear, this question focuses specifically on whether a lawyer owes the heirs of a probate estate a fiduciary duty. It does not address whether a lawyer owes a fiduciary duty in other contexts.

(For example, a trustee may hire a lawyer to serve the individuals who stand to benefit from a trust. Or a guardian or conservator may hire a lawyer to serve for in the best interests of a ward. The answer will vary depending on each different circumstance.)

Fiduciary Duties of the Executor

Before answering the question, it’s helpful to have an idea of some common activities created by fiduciary duties in the context of probating an estate:

• Duty to communicate: This includes notifying the heirs that the estate exists and providing them with a copy of the inventory and court filings. (Note that this isn't the same thing as an attorney-client relationship; no attorney-client privilege exists.) An executor who maintains open communication, such as when disclosing any conflicts of interest, can also better avoid any claims of favoring one heir over another.
• Duty to account: The executor is legally responsible for providing regular estate accountings. This includes explaining funds paid out of estate accounts for expenses and maintaining detailed documentation.
• Duty of confidentiality: As part of their fiduciary duties, executors also must keep details related to the estate and its heirs confidential.
• Duty to treat all beneficiaries equally: The executor must distribute estate funds at the same time. (If a question arises regarding how to interpret something in the will, the attorney can’t interpret it. Instead, the court is responsible for doing this.)

Fiduciary Duty of a Probate Attorney

So, back to the question: Does the lawyer owe a fiduciary duty to the heirs of a probate estate? It depends on the state in which the estate is being probated.

Only a few states require the lawyer to meet the same fiduciary duty to the estate heirs as the executor. In these states, the executor owes a fiduciary duty to the heirs, and the lawyer owes a fiduciary duty to the executor. Therefore, the duty flows from the executor to the lawyer.

Most states, however, take the position that the lawyer doesn’t owe a fiduciary duty to the estate heirs. These states view the fiduciary duty owed by the executor to the heirs as unique from the fiduciary duty owed by the lawyer to the executor. Also, these states want to maintain the executor’s ability to have protected communication with the attorney.

Another small set of states, including California, New Mexico, and Illinois, apply a balancing test. This determines who was the actual intended beneficiary of the attorney-client relationship – the executor or the heirs. Each state has established its own test criteria. One common question the courts may ask is whether the intended beneficiary of the attorney’s services was the executor or the heirs.

Starting the Probate Process

If you are the executor hiring the attorney, ask what the law is regarding probate.

If you are an heir of a loved one's estate, the lawyer should be able to give you some guidance. If the probate estate is in one of the majority states, the first letter from the attorney should start with a sentence that reads something like, “I have been retained by Mr. Smith, executor of the estate of Ms. Smith. Please note that I do not represent you.” Otherwise, you may want to call the attorney and ask for more information.

Everyone’s goal should be for the settling of the probate estate to go smoothly. Understanding the probate lawyer’s role will go a long way toward achieving that goal.

It can be daunting to understand and navigate the ins and outs of probate court, whether you are the executor or an heir. Having trust and confidence in the legal professionals with whom you are working is essential, so be sure to connect with your attorney.

Contact us

Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esw.

Law Office of Elise Lampert

9595 Wilshire Blvd. | Suite 900 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com

 

Navigating Disputes in Probate Court

When someone passes away, the probate process ensures that the deceased’s estate fulfills its debts and that the heirs receive their assets. The deceased’s will dictates how to settle and distribute their assets and debts. (If no will exists, state intestacy laws apply.) When a legal dispute arises during the process of probate, probate litigation may ensue.

Most matters the probate courts handle, like admitting wills and assigning executors, are standard operating procedures and go uncontested. However, legal contests arising from a person’s death or mental capacity may lead to probate litigation over powers of attorney, will and trust contests, guardianships, and living wills.

Common Legal Concerns in Probate Court

Some common problems leading to probate litigations include the following:

Will Contests

Questions sometimes surface about the validity of a will. Interested parties may dispute the deceased person’s will or allege undue influence or fraud. Or they might argue that the person who made the will (testator) lacked the mental capacity to create a valid will.

Estate Administration Disputes

Likewise, disagreements may arise among heirs, executors, or administrators regarding the management and distribution of estate assets. These arguments can include allegations of mismanagement or conflicts over the interpretation of the will or trust provisions.

Claims Against the Estate

Creditors or individuals may believe they have a rightful claim to the deceased person’s assets. They then may seek to file claims against the estate. Claims can include outstanding debts, unresolved contracts, or disputed property ownership.

Guardianship Disputes

In disputes over appointing a guardian for a minor or a disabled adult, probate litigation can also result. Concerns about the actions of an appointed guardian or conservator may lead to probate litigation, too.

Breach of Trust

By law, executors, administrators, and trustees must act in the best interests of the estate and its beneficiaries. Allegations of misconduct, self-dealing, or failure to fulfill these obligations may lead to litigation.

Document Interpretation

Disputes may arise over the interpretation of a will, trust, or other estate planning documents. These conflicts can involve disagreements about:

• the intended meaning of certain provisions,

• the scope of powers granted to trustees or executors, or

• the distribution of assets among beneficiaries.

Family Disputes

Family dynamics can often lead to probate litigation, especially with strained relationships, blended families, or unequal distributions of assets. Sibling rivalry, disputes with former spouses, or decisions to cut off certain heirs can result in legal challenges.

Individuals marrying multiple times without a prenuptial agreement are also likely to incite probate litigation upon their death. Life insurance trusts can be a valuable way to separate the interests of the decedent’s spouses and children.

Probate, Estate, and Trust Litigation Attorneys

If you anticipate probate litigation, your estate administration attorney can provide you with guidance. They will be able to explain your rights and options to prevent future problems. If you are involved in a dispute, a probate litigation attorney can help you navigate the legal system and resolve it. Some attorneys specialize specifically in conflicts with trust administration and litigation.

Consider your legal situation as well as an attorney’s experience, reputation, and track record when handling similar matters. Feeling comfortable working with them is essential.

Early Steps in Probate Litigation

In probate litigation, your attorney plays a key role in representing your interests while navigating the legal process. All things begin with an initial lawyer consultation to discuss your case’s details, goals, and concerns.

Your attorney will evaluate the strength of your claims or defenses. They also can explain the legal process, potential outcomes, and available strategies to achieve your objectives. Most states have strict statutes of limitations, so the earlier you contact a probate litigation lawyer, the better.

Your attorney can thoroughly research your case’s relevant laws, precedents, and regulations. They will analyze the facts and circumstances to develop a legal strategy tailored to your situation. They’ll also review all relevant documents, including wills, financial records, trusts, and other evidence relating to the dispute. Your attorney will then prepare and draft such legal documents as complaints, petitions, answers, motions, and discovery requests.

Probate Court Processes

Probate litigation hearings and trials usually take place in the county probate court where the decedent died. Your attorney should be familiar with the county probate court where the case is being tried.

Your attorney will engage in the discovery process by gathering evidence, documents, and depositions from other parties. They will also respond to discovery requests from the opposing party. Each side will advocate for their client’s interests and work to reach a favorable settlement if possible. They will also advise them on the merits of accepting or rejecting settlement offers.

Trial preparation and representation will occur if the settlement phase fails. In this situation, your lawyer would prepare you for trial, make legal arguments, examine and cross-examine witnesses, and present your case to the court. Throughout the process, they are responsible for helping you make informed decisions regarding the direction of your case.

Work With Your Attorney

Probate court can elicit high emotions and tense interactions. You may, for instance, see significant disruption to family relationships. These sorts of disputes could open the estate to creditor lawsuits as well.

Estate administration and probate litigation attorneys assist in preventing these kinds of estate-related contests. With a qualified professional, you can execute a proper estate plan. This can reduce the likelihood of probate litigation happening in the first place.

Contact us

Questions? Contact us at Elise Lampert, Attorney at Law

   

Elise Lampert, Esq.

Law Office of Elise Lampert

9595 Wilshire Blvd. | Suite 900 | Beverly Hills , CA 90212

Phone: (818) 905-0601 / Email: elise@elampertlaw.com

https://www.eliselampert.com