Estate Planning Blog

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Approaching Retirement

Change Your Loved Ones’ Lives in Three Hours of Estate Planning

July 8, 2026

Many people postpone estate planning because they believe it is complicated, time-consuming, or something that can wait until later in life. Unfortunately, whether you live in Columbia, Missouri or elsewhere, delays often leave families scrambling to make important decisions during periods of grief, illness, or crisis. The reality is that a few focused hours spent organizing key documents and making critical decisions can dramatically improve outcomes for loved ones.

Estate planning is not simply about distributing assets after death. It is about creating clarity, reducing uncertainty, and ensuring that trusted individuals have the authority they need to act when necessary. Even basic planning can eliminate many of the obstacles families commonly encounter.

Why So Many Families Face Unnecessary Challenges

When someone dies or becomes incapacitated without adequate planning, family members are often forced to navigate legal, financial, and administrative issues with little guidance.

Important documents may be difficult to locate. Financial accounts may be inaccessible. Family members may disagree about responsibilities or the deceased person’s wishes. In some cases, court involvement becomes necessary simply because no clear instructions were left behind.

Many of these problems can be avoided through straightforward planning completed well in advance of any crisis.

The Most Important Decisions Often Take Less Time than Expected

People frequently assume estate planning requires months of preparation and extensive legal work. While complex estates may require additional planning, many individuals can make significant progress by focusing on a few core decisions.

Determining who should make financial decisions during incapacity, who should handle healthcare matters, and who should administer an estate are often among the most important steps.

Once these decisions are made, appropriate legal documents can be created to reflect those choices.

Essential Documents Every Adult Should Consider

A comprehensive estate plan may include numerous tools, but several documents form the foundation of most plans.

A Will

A will allows individuals to specify how assets should be distributed after death and identify the person responsible for administering the estate.

Without a will, state law generally determines how assets are distributed, which may not reflect personal wishes.

Powers of Attorney

Durable powers of attorney authorize trusted individuals to manage financial and legal affairs if the principal becomes incapacitated.

These documents can help families avoid delays and reduce the likelihood of court-supervised guardianship proceedings.

Healthcare Directives

Healthcare directives communicate medical preferences and identify who should make healthcare decisions when an individual cannot speak for themselves.

These documents guide difficult situations and help ensure that personal values are respected.

Organization Is Just as Important as Documentation

Creating legal documents is only part of the process. Family members should also know where important records are located and how to access critical information when necessary.

Account information, insurance policies, property records, and contact information for advisors should be organized and updated periodically. Even the best estate plan can create complications if loved ones cannot locate essential documents.

A simple system for storing and communicating this information can save considerable time and frustration.

Estate Planning Benefits the Living

Many people view estate planning primarily as a tool for transferring wealth after death. However, some of its greatest benefits occur during life.

Proper planning can ensure that bills continue to be paid during periods of incapacity, healthcare decisions can be made without delay, and loved ones have clear authority to assist when needed. These protections become increasingly important as people age.

Planning ahead helps preserve both independence and peace of mind.

Small Efforts Can have Lasting Impact

One reason estate planning is often postponed is that people underestimate the consequences of failing to act. Yet even modest planning efforts can significantly reduce burdens on family members.

Making key decisions, completing foundational documents, and organizing important records often requires far less time than people expect. The benefits, however, can last for years and provide invaluable support when challenges arise.

The goal is not perfection but preparation.

Giving Your Loved Ones the Gift of Clarity

Estate planning is one of the few opportunities people have to make difficult decisions easier for those they care about most. By investing a few hours in thoughtful preparation, individuals can reduce confusion, minimize legal complications, and provide meaningful guidance during difficult times.

The result is often far greater than the time invested. It is a plan that helps protect loved ones and provides a clearer path forward when it matters most.

Key Takeaways

  • Estate planning does not have to be overwhelming: Basic planning can often be completed in a relatively short amount of time
  • Core documents provide critical protection: Wills, powers of attorney, and healthcare directives address essential concerns
  • Organization matters: Families benefit when important records are accessible and up to date
  • Planning reduces future stress: Clear instructions and legal authority help loved ones navigate difficult situations

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: Kiplinger (March 24, 2026), “Think You’re Too Busy to Do an Estate Plan? In 3 Hours (Seriously), You Could Save Your Heirs Months (or Years) of Stress and Heartache”

estate planning

Estate Planning= Protecting Loved Ones From Unintended Consequences

July 6, 2026

Far too many families learn the hard way. Estate planning is always something to do in the future—until the future arrives sooner than expected. People also think estate planning is for ultra-high-net-worth households or retirees, but in reality, the people who need estate plans the most are folks who need to protect a lifetime of savings, their young children, or their peace of mind. In other words, everyone, according to a recent article, “Estate Planning Still Remains Overlooked by Many,” from The Wealth Advisor.

What’s most alarming is how many Americans, even after living through COVID, still don’t have any estate planning documents.

The risk of not having these documents is substantial. And the reality of financial consequences only becomes clear when a person dies without a plan. Here’s what happens.

State intestacy laws drive outcomes. While rules vary state by state, in some states a surviving spouse inherits the entire estate, whether this was the decedent’s intent or not. In other states, assets may be divided between spouses, children, parents, or siblings, according to law. Blended families, unmarried partners, and estranged relatives receive no special treatment.  Whether you live in Moberly Missouri or elsewhere, proper estate planning takes some uncertainty out of life.

Unmarried partners are especially vulnerable. Without the protection of an estate plan, lifetime partners have no inheritance rights. If they are not properly on the deed to the house, they could end up being evicted by their adult children or their late partner’s parents. Assets go to biological or legally recognized relatives. The potential for immediate instability is not to be ignored.

Guardianship decisions are made by courts. Anyone with minor children without an estate plan is putting their children’s lives into chaos. The court will decide who should raise the children, where they should live, and who will make major decisions for them. Multiple relatives may launch a court battle for guardianship, or the children could end up in foster care. Judges are tasked with making these decisions and often have little or no insight into family relationships.

Probate is slower and more prone to court battles. In the best circumstances, a will is admitted to probate, the court reviews and validates it, and names the executor. The executor then has the task of administering the estate, which can take months to years, depending on the estate’s complexity and how well it was structured. Without a will, it takes far longer. The court has to identify legal heirs, verify relationships, create an inventory of assets, and oversee distributions. In the meantime, bills need to be paid, and disputes are likely to arise.

Family finances become public if assets haven’t been moved into trusts. Probate proceedings become part of the public record. The will becomes available to anyone who wants to see it, from estranged relatives to financial scammers and salespeople. Inheritance details are all subject to public scrutiny. Assets placed in trusts, however, are private. The only people who can see what’s in a trust are the grantor—the person creating the trust—and the trustee, the person charged with overseeing the trust.

Poorly structured inheritances create serious problems for heirs. Without an estate plan, beneficiaries receive assets outright. For a disabled beneficiary, this can make them ineligible for Medicaid, Supplemental Security Income, or any means-tested government program. For younger heirs, outright distributions can lead to misguided losses. An 18-year-old may be legally able to inherit, but will they be ready to manage a large inheritance without losing it? Trusts allow inheritances to be structured to protect wealth over generations.

Families dealing with loss are already under the strain of grief and uncertainty. Having to manage an estate when no planning has been done is a terrible burden that can be prevented. The solution is simple: consult with an estate planning attorney and have a plan created, without delay.

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: The Wealth Advisor (May 26, 2026) “Estate Planning Still Remains Overlooked by Many”

Retirement Planning

Key Decisions to Help You Avoid Probate

June 8, 2026

Probate is a legal process designed to validate a will, settle debts and distribute assets after death. While it serves an important purpose, many families seek to avoid it because of the delays, public exposure and administrative costs it can create.

Avoiding probate does not happen automatically. It requires thoughtful planning and careful coordination of ownership structures, beneficiary designations and estate planning documents. By making key decisions in advance, individuals can simplify the transfer of assets and reduce the burden on loved ones.

Probate Can Be Problematic

Probate proceedings can take considerable time, particularly if the estate is complex or disputes arise among beneficiaries. During this process, assets may be temporarily inaccessible, creating financial strain for surviving family members.

The process is also generally public. Wills and probate filings often become part of the public record, meaning financial and personal details may be accessible to others.

In addition, probate can involve court costs, attorney fees and administrative expenses that reduce the estate’s overall value. For these reasons, many individuals prefer strategies that allow assets to transfer outside the probate system.

Beneficiary Designations as a Probate-Avoidance Tool

One of the simplest ways to avoid probate is through beneficiary designations. Assets such as retirement accounts, life insurance policies and payable-on-death bank accounts typically pass directly to the named beneficiary without court involvement.

However, these designations must be reviewed regularly. Outdated information can result in unintended distributions, particularly after major life events such as divorce, remarriage, or the birth of children.

Consistency between beneficiary designations and the overall estate plan is essential. Conflicts between documents can create confusion and increase the likelihood of disputes.

Joint Ownership and Transfer Structures

The way property is titled can also determine whether it passes through probate. Joint ownership with rights of survivorship allows property to transfer automatically to the surviving owner upon death.

This structure is commonly used for homes and financial accounts. While it can simplify transfers, it also involves trade-offs, including shared control during life and potential exposure to the co-owner’s financial issues.

Transfer-on-death and payable-on-death arrangements provide another option. These tools allow assets to pass directly to designated individuals, while preserving sole ownership during life.

Using Trusts to Streamline Asset Transfers

Trusts are among the most comprehensive probate-avoidance tools available. Assets held in a properly funded trust are generally not subject to probate because the trust, rather than the individual, owns the property.

Revocable Living Trusts

A revocable living trust allows individuals to maintain control over assets during life, while creating a mechanism for seamless transfer after death. The trust can also provide continuity if the creator becomes incapacitated.

Unlike probate, trust administration is typically private and can often be completed more efficiently. However, trusts must be properly funded to be effective. Assets left outside the trust may still require probate.

Coordinating All Parts of the Estate Plan

Avoiding probate requires more than drafting a single document. Every part of the estate plan must work together cohesively.

A will, even when probate-avoidance strategies are used, remains important. It can address assets not otherwise transferred and provide instructions for personal matters, such as guardianship for minor children.

Regular reviews are equally important. Changes in laws, financial circumstances, or family dynamics can affect how the plan functions. Revisiting documents and account structures helps ensure that the plan remains aligned with current goals.

Balancing Simplicity and Control

While avoiding probate can simplify estate administration, it is important to balance efficiency with thoughtful control over asset distribution. Some probate-avoidance tools may transfer assets quickly but provide limited oversight regarding how beneficiaries use them.

Trusts and carefully structured plans can help preserve both efficiency and long-term control. The best approach depends on the individual’s goals, family circumstances and financial situation.

Preventing Delays and Family Stress

One of the greatest benefits of avoiding probate is reducing stress for loved ones during an already difficult time. Streamlined transfers can provide quicker access to assets and minimize administrative burdens.

Clear planning also reduces uncertainty. When ownership structures and beneficiary designations are properly organized, there is less room for confusion or conflict among family members.

Creating a More Efficient Estate Plan

Probate avoidance is ultimately about preparation. By making strategic decisions during life, individuals can create a smoother and more predictable transfer process for those they leave behind.

Whether through trusts, beneficiary designations, or carefully titled property, proactive planning allows families to avoid unnecessary complications and preserve more of the estate’s value.

Key Takeaways

  • Probate can be costly and public: Many families seek to avoid delays, expenses and court involvement
  • Beneficiary designations are powerful tools: Certain accounts can transfer directly outside probate
  • Trusts provide broader protection: Revocable living trusts can streamline transfers and maintain privacy
  • Coordination is essential: All parts of the estate plan should work together consistently

Visit our website www.MoTrustLaw.com to get more estate planning information and to subscribe to our complimentary e-newsletter.  Our e-newsletter is designed to provide valuable information to residents of Moberly, Macon, Kirksville, Salisbury, Columbia and surrounding areas.

Reference: USA Today (Feb. 3, 2026) “Haunted by inheritance nightmares? 7 tips for avoiding probate”

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What Should I Know About Probate Costs?

February 27, 2023

The cost of probate depends on several factors. One of the most important is the state where the decedent lived. The cost of probate varies from state to state, depending on the general cost of living in the state and state probate laws. Other factors also impact the cost of probate.

Nasdaq.com’s recent article entitled “How Much Does Probate Cost?” provides a breakdown of fees associated with probate. The process of probating an estate will settle the estate after the decedent’s death and following their last will and testament. It’s also used for those who die without a will or intestate. Assets owned only by the decedent are usually addressed in the will and are distributed according to the decedent’s wishes. An executor is usually named in the will, and an administrator of the estate is appointed in the case of a decedent dying intestate. The executor takes an inventory of the decedent’s assets, pays the decedent’s outstanding debts and presents the inventoried estate to the court for settlement. If there are no objections to the will, the estate is closed. If there are objections, the probate judge is responsible for settling them. The longer the probate process drags on, the more expensive it will be.

Probate can be a time-consuming process. A modest estate may take six to 24 months to settle. Larger estates can take even longer, if they’re complex.  It also necessary to add in more time if the will’s contested or beneficiaries can’t be found. The longer the process, the more expensive it becomes. Probate costs in 2021 run about 3% to 8% of the value of the estate. Let’s look at the key costs of probate:

Court Costs. This includes filing fees. Some states require the same filing fee for all estates, while others have a graduated scale depending on the size and complexity of the estate. The more complex the estate, the higher the court costs.

Executor Costs. The executor of a will is typically paid at least a nominal fee. Fees are mandated by state law, unless the decedent specifies in his or her will what the executor should be paid. Some states permit a flat and “reasonable” fee which may be determined by the court. Other states require a graduated fee, such as a certain percent of the estate for the first $100,000 and so on. If the will doesn’t state the executor’s fee or if the decedent dies intestate, the court determines the executor’s fee.

Accounting Fees. Accounting costs can be high with more complex estates. If the decedent has complicated business affairs to sort out or owns many stocks and other securities, the complexity will require higher accounting fees. The accountant will also have to file federal and state taxes in the form of a final return.

Attorney Fees. When the executor believes an attorney is needed, the attorney is paid out of the estate. Attorney’s fees can be state-mandated, determined by the court, or set by the attorney depending on the anticipated workload.

Estate Administration Fees. The executor will often incur significant costs of administering the estate, such as property appraisals, and a real estate agent may have to be hired and paid to dispose of property or businesses. A property may also have to be managed until it’s sold or the estate is closed.

Reference: Nasdaq.com (Feb. 2, 2023) “How Much Does Probate Cost?”

 

estate planning and elder law

Are Testamentary Trusts a Good Idea?

August 25, 2022

Not everyone wants to leave everything to their heirs without restrictions. Some want to protect money inherited from their own parents for their children or want to keep an irresponsible child from squandering an inheritance. For people who want more control over their assets, a testamentary trust might be useful, according to the recent article “What Is a Testamentary Trust and How Do I Create One? from U.S. News & World Report. A testamentary trust can also be used to leave assets to minor children, who may not legally inherit wealth directly.

However, your estate planning attorney may have some other, better tools for you.

A testamentary trust is a trust created to hold assets created in a last will and testament. It does not become active until after a person dies and the will has been validated by probate court. Once this has happened, the trust is activated and the decedent’s assets are placed into the trust. At this point, the trustee is in charge of the trust’s management and asset distribution.

A testamentary trust is different from a living trust. The living trust, also known as a revocable trust, is created while the grantor (the person making the trust) is still living. When the person dies, the revocable living trust doesn’t go through probate and assets are distributed according to the directions in the trust.

Both testamentary and living or revocable trusts are used in estate planning. However, the living trust may have far more flexibility and be easier to manage for a very simple reason: testamentary trusts are part of the probate process, administered through probate for as long as they are in effect.

There are advantages and disadvantages to both kinds of trusts. The testamentary trust is often used to manage assets for minor children. It’s also a good tool if you’re worried about an adult child getting divorced and keeping the family money in the family. The long-term court oversight is more protective, which may be desirable, but it can also be more expensive.

The best reason for a testamentary estate? They are faster to set up.  However, after death they create more work for the remaining family members.

Your will must contain specific directions for what assets go into the testamentary trust. Assets with beneficiary designations, such as life insurance policies and retirement accounts, don’t go into any trusts, unless a trust is designated as the beneficiary of the policy or account. They are instead distributed directly to beneficiaries outside of the probate estate.

Changing or annulling a testamentary trust is relatively easy while you are living—simply update your will to reflect your new wishes.  However, once you have passed, the testamentary trust becomes irrevocable and may not be changed.

Which is best for your situation? Your estate planning attorney will evaluate these and other estate planning tools to find the best solutions to protect you and your family.

Reference: U.S. News & World Report (July 14, 2022) “What Is a Testamentary Trust and How Do I Create One?

 

estate planning for singles

Who Should Be Your Executor?

August 16, 2022

While the executor is usually a spouse or close family member, you can name anyone you wish to be your executor. A bank, estate planning attorney, or professional trustee at a trust company may also serve as the executor, according to a recent article from Twin Cities-Pioneer Press titled “Your Money: What you need to know about naming an executor.”

Regardless of who you select, the person has a legal duty to be honest, impartial, financially responsible and to put your interests ahead of their own. This person and one or two backup candidates should be named in your will, just in case the primary executor declines or is unable to serve.

How does someone become an executor? When your will is entered into probate, the court checks to be sure the person you name meets all of your state’s legal requirements. Once the court approves (and usually the court does), then their role is official and you executor can get to work.

The executor has many responsibilities. You can help your executor do a better job by making sure that financial and personal business documents are organized and readily available. Here are some, but not all, of the executor’s tasks:

  • Making an inventory of all assets and liabilities
  • Giving notice to creditors: credit card companies, banks, mortgage companies, etc.
  • Filing a final personal tax return and filing the estate tax return
  • Paying any debts and taxes
  • Distributing assets according to the directions in the will and in compliance with state law
  • Preparing and submitting a detailed report to the court of how the estate was settled

If there is no will, or if no executor is named in the will, or if the executor can’t serve, the court will appoint a professional administrator to settle your estate. It won’t be someone you know. Your family may not like all of the decisions made on your behalf, but there won’t be any options available.

Does an executor get paid? A family member may or may not wish to be paid. However, given how much time it takes to settle an estate, you might feel it’s fair for them to be compensated. The amount varies depending on where you live, but you can leave the person between 1% to 8% of your total estate. A professional administrator will likely cost considerably more.

How do you document your estate to help out the executor? If you think this task is too onerous, imagine how a family member will feel if they have to conduct a scavenger hunt to identify assets and debts. If a professional administrator ends up doing this work, it will take a bigger bite out of your estate and leave loved ones with a smaller inheritance.

Start by making a list of all of your assets and liabilities, plus a list of all advisors who help with the business side of your life. Recent tax returns will be helpful, as will contact information for your estate planning attorney, CPA and financial advisor. You should include retirement accounts, life insurance policies and any assets without beneficiary designations.

Reference: Twin Cities-Pioneer Press (June 25, 2022) “Your Money: What you need to know about naming an executor”

 

What You Need to Know about Probate

September 16, 2021

We often read about celebrities who die without an estate and how everything they own must go through probate. The article titled “What to know about probate” from wmur.com explains what that means, and what you need to understand about wills, probate and estate planning.

Probate is a process used to prove that a person’s will is valid and to supervise how their estate is handled. It involves a court that focuses on this area. Much about the process depends upon the state in which it’s taking place, since these laws vary from state to state.

When someone dies without a will, they have failed to provide instructions for the distribution of their property. Their assets will still be distributed, but the laws of the state will determine what happens next. The state follows intestacy laws, which outline pre-set patterns of distributing property. In one state, property will go to the spouse and children. In others, the spouse may get everything.

Other decisions are made for your family when there is no will. If you have not named an executor, the court will appoint someone to oversee your estate. The court will also appoint a person to raise your children, if no guardian has been named for minor children. A family member may be chosen, but it may not be the family member you wanted to raise your kids, or it may be a stranger in a foster home.

Another reason to have a will is that probate can take a few months, or, depending on where you live, a few years, to complete. If there is litigation, and not having a will makes that more likely, it would take longer and will undoubtedly cost more. While this is going on, assets may lose value and heirs may suffer from not having access to assets.

Probate is also costly. There are legal notices to be published, court fees, executor fees and bond premiums, appraisal fees and attorney expenses.

Having an estate plan also means tax planning. While the federal estate tax as of this writing is $11.7 million per individual, it will not be that high forever. If the proposals to lower the federal estate tax to $3.5 million per person come to pass, will your estate escape estate taxes? What about your state’s estate or inheritance taxes?

Probate is also a very public process. Once a will is admitted as valid by the court, it becomes a public document. Anyone and everyone can view it and learn about your net worth and who got what.

With all these drawbacks, are there good reasons to allow your estate to go through probate? In some cases, yes. If multiple wills have been found, probate will be needed to establish which will is the correct one. If the will is confusing or complex, probate could provide the clarity needed to settle the estate. If beneficiaries are litigious, probate may be the voice of authority to quell some (but not all) disputes. And if the estate has no money and a lot of debt, it may be the probate court that sorts out the situation.

Every estate is different. Therefore, it is important to speak with an estate planning attorney to have a will, power of attorney and any health care directives created and properly executed. Every few years, these documents should be reviewed and revised to keep up with changes in the law and in your personal life.

Reference: wmur.com (July 29, 2021) “What to know about probate”

 

Probate

What’s Involved in the Probate Process?

October 26, 2020

SWAAY’s recent article entitled “What is the Probate Process in Florida?” says that while every state has its own laws, the probate process can be fairly similar. Here are the basic steps in the probate process:

The family consults with an experienced probate attorney. Those mentioned in the decedent’s will should meet with a probate lawyer. During the meeting, all relevant documentation like the list of debts, life insurance policies, financial statements, real estate title deeds, and the will should be available.

Filing the petition. The process would be in initiated by the executor or personal representative named in the will. He or she is in charge of distributing the estate’s assets. If there’s no will, you can ask an estate planning attorney to petition a court to appoint an executor. When the court approves the estate representative, the Letters of Administration are issued as evidence of legal authority to act as the executor. The executor will pay state taxes, funeral costs, and creditor claims on behalf of the decedent. He or she will also notice creditors and beneficiaries, coordinate the asset distribution and then close the probate estate.

Noticing beneficiaries and creditors. The executor must notify all beneficiaries of trust estates, the surviving spouse and all parties that have the rights of inheritance. Creditors of the deceased will also want to be paid and will make a claim on the estate.

Obtaining the letters of administration (letters testamentary) obtained from the probate court. After the executor obtains the letter, he or she will open the estate account at a bank. Statements and assets that were in the deceased name will be liquidated and sold, if there’s a need. Proceeds obtained from the sale of property are kept in the estate account and are later distributed.

Settling all expenses, taxes, and estate debts. By law, the decedent’s debts must typically be settled prior to any distributions to the heirs. The executor will also prepare a final income tax return for the estate. Note that life insurance policies and retirement savings are distributed to heirs despite the debts owed, as they transfer by beneficiary designation outside of the will and probate.

Conducting an inventory of the estate. The executor will have conducted a final account of the remaining estate. This accounting will include the fees paid to the executor, probate expenses, cost of assets and the charges incurred when settling debts.

Distributing the assets. After the creditor claims have been settled, the executor will ask the court to transfer all assets to successors in compliance with state law or the provisions of the will. The court will issue an order to move the assets. If there’s no will, the state probate succession laws will decide who is entitled to receive a share of the property.

Finalizing the probate estate. The last step is for the executor to formally close the estate. The includes payment to creditors and distribution of assets, preparing a final distribution document and a closing affidavit that states that the assets were adequately distributed to all heirs.

Reference: SWAAY (Aug. 24, 2020) “What is the Probate Process in Florida?”

 

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