What you need to know about estate planning

Transcript of Interview: “What you need to know about estate planning”

Mike Barnes:

You know, I think the biggest thing that we’re learning about taking care of elderly parents, aging parents, however you want to describe it, is you have to have good communication and you have to plan ahead.

Kim Barnes:

Yes, you do. And when it comes to estate planning, this is something that is very, very important. I’m glad to introduce you to Shaina Jones Magrone. Her law firm is Artisan Law, which includes estate planning. Thanks so much for being with us today.

Shaina Jones Magrone:

Hi, so happy to be here with you.

Kim Barnes:

You know, Shaina, I think that when I think of estate planning, maybe it’s just from watching a lot of movies or in the, you know, in animated movies or things where you think of an estate, you think of this huge mansion with lots of cars and lots of property, and you feel like, okay, those are the people that need estate planning. But that’s really not the case, right?

Shaina Jones Magrone:

No, well, you know, Kim, this is one of those instances where you should not let the words fool you. Estate planning is really for everyone. Estate planning really is what it says; it’s a plan for what happens to what you have in this world when you are not here. It can be as simple as the childhood stuffed animal that is your tried and true, all the way up to those of us who may have a palatial estate mansion and may be subject to the current level of estate tax. So it’s for everyone. There is a type of plan that will fit everyone’s situation.

Mike Barnes:

Yeah, a family friend of ours, the mother passed away. The father was already passed away, the mother passed away. There were five kids, and yes, there was a will, and yes, they knew where everything was going, the big stuff, I guess you could say. But then they sold the house, and they were selling the house, and they basically drew straws about who was going to get what if there was any type of conflict. And I guess that works, but it seems it’s a lot better to plan ahead.

Shaina Jones Magrone:

Yeah, it absolutely is. So, you know, there’s a couple of things that I like to say to my clients and to those that I talk to about estate planning. First of all, estate planning is a labor of love for those who will be left behind when you are not here. So you’re really looking to craft something where you’re considering all the things that could go wrong. Estate planning is for what could go wrong, and it’s to be a preemptive solution to what could go wrong.

The other thing is, in a situation where you’re already in grief, you already have a heightened level of emotion, and that can lead to other emotions and personality traits that would have never appeared if the loved one hadn’t been here. So the way to cut that off is to plan and ensure that everyone is really clear about what you wanted. That way, no one has to guess, and no one has to be filled with the thought of, am I doing what my loved one would have wanted when you’ve laid it out clearly beforehand.

Kim Barnes:

Well, and I think a lot of people think that this is something that they can kind of DIY, do it yourself, find some stuff online, and I’ll just figure it out.

Shaina Jones Magrone:

Sure. You know, that is definitely a position that I’ve encountered with many people. And there’s a couple of things that I can say about that. First and foremost, you have to weigh the cost of attempting to do it yourself when you’re not an expert and potentially doing it wrong and what the cost is going to be when it doesn’t work, versus the investment that you may put in by working with a skilled professional such as myself to make sure that it’s done properly. It’s definitely going to be less of an investment on the front end than on the back end.

Second, the cost of doing it incorrectly is not always a cost that’s going to be borne by you. It’s going to be a cost that oftentimes is going to be passed on to your children or the other heirs and loved ones that you have. So you may be leaving them with a mess that you never anticipated.

Third, for do-it-yourself solutions in general, you know, DIY solutions are meant for the most non-specific case. So there are documents that were created taking nothing having to do with you in mind and just assuming that you can plug yourself into these parameters of these documents. For the vast majority of people, that’s not going to be the case. There’s going to be some form of nuance that those documents are not going to fill.

Kim Barnes:

The POA, the medical directives, those are definitely all pieces that come together to make an estate plan, right?

Shaina Jones Magrone:

Yeah, those are pieces. And you know, some of the other things that I work with clients on, if you have minor children, we do something called a kids protection plan to make sure your children are always protected and never end up in state authorities if you pass away unexpectedly and no one’s home with your children. I also love to do things with clients where we have a family meeting so you can pass on stories and legacies. Because it’s not just about your tangible assets, it’s about intangible assets. So even if you’re not working with me, the point is to make sure that you take care of those other things. Do you have a scrapbook or some other recording of you or something else written where you pass things over to family members? Think about those things too.

Mike Barnes:

It seems like some of the things we’re mentioning, power of attorney and will, I think there are some things that you can kind of force your parents into getting, like, okay, you’ve got to get this. But there’s a lot of stuff that if they’re not on board, it’s not going to work.

Shaina Jones Magrone:

That’s an amazing question. You want the best for your loved ones, and we really often wish that we could force them to do exactly what we want. There are occasions where generally a child can get their parent to do this level of estate planning. What I have seen most of the time is that the parent has to be in the driver’s seat. Even if they don’t know what they want, they have to actually be willing to come to the table. It’s not just with older parents; it’s with anyone. Are you willing to come to the table and to do some level of preparation?

Kim Barnes:

So do you think that maybe is kind of the way that if we have parents that haven’t taken care of all of this estate planning previously and we, as the adult children, are trying to help them prepare and navigate and just make it easier when the inevitable happens, what are the conversations that you have with your parents to help them understand that this is really something, a gift that you’re giving to us by not having to try to fight over things or figure things out or just guess what your wishes are?

Shaina Jones Magrone:

That’s really a huge part. I have known many adult children who have talked to their parents about what the consequences might be for them, and that has brought their parents to the table. It’s really looking at that. What happens if I don’t know what your assets are and where they are? One of the main things with estate planning is taking inventory of your assets. A lot of people don’t even know about that 401(k) that you have with another job or a life insurance policy from another job. It’s taking inventory of your assets and making sure the important people in your life who should know, know what those things are and what the appropriate time is.

Mike Barnes:

Anything else that you think adult children need to be aware of when it comes to estate planning, especially for their parents?

Shaina Jones Magrone:

Yes. I definitely want adult children to know that estate planning is an ongoing process. You’re going to want to make sure if you’re working with your parents to get it done that their plan is reviewed at least every three years. This is to accommodate for changes in the law, changes in their circumstances. A trust that was set up in one way might work for your parents at that time. For example, perhaps they have a revocable living trust set up. Perhaps they get older and they’re going to start to need some medical care. They want to make sure that they have their government benefits. You might need to start thinking about some other form of trust instruments or other types of instruments for planning. So you want to make sure that you have a relationship with your estate planning professional, someone that you can go back to review those things with and get the appropriate changes done.

Kim Barnes:

Well, and I think this is also a great reminder for us as the adult children and the parents of our children. It’s just a good reminder how important it is for us to take care of our business so that we don’t make it more complicated for our children.

Mike Barnes:

I think the biggest thing, looking back at all the interviews that we’re doing, almost every one, time after time after time, it all comes down to communication. You gotta talk. Yes, it’s hard to talk about, “Mom, Dad, when you pass away, here’s what has to happen,” but you have to open that conversation up and get the ball rolling ahead of time so it’s not too late.

Kim Barnes:

Absolutely. 

Mike Barnes:

Well, we’ll be doing more interviews. If you have any ideas for us for topics, just let us know.

*This transcript is auto-generated. Please excuse any typos or mistakes