2024-03-11 by Sue Hunt
Sitting down to create or update your estate plan can be overwhelming. Crucial to a successful plan is your ability to address two major questions: Who will get your stuff when you die, and how do you want those individuals or charities to receive that stuff?
One way you can give away your money and property at your death is to give it outright. In other words, once you have passed away and the administration process has been completed, your beneficiary will receive their inheritance (e.g., a bank or investment account, real property, etc.) outright with no strings attached. The inheritance immediately becomes theirs to do with as they please. This provides your beneficiary with the maximum amount of freedom and flexibility. They can keep the account or property, or they could spend or liquidate it. Additionally, this type of distribution is easy to include in your estate plan and easy to administer after your passing. All you need to do when preparing your estate plan is name the beneficiaries you want to receive your stuff in your trust or will. You do not have to plan out or have your attorney draft long and customized distribution provisions.
When it is time to distribute your money and property after your death, your accounts or properties will be turned over to your chosen beneficiaries after your debts have been settled, any applicable taxes have been paid, and your affairs have been wound down. However, please know that this freedom and ease come at a cost. If your beneficiary has creditor issues, is in the middle of a divorce, or is not good at managing their money at the time the distributions are to be made, that inheritance could be gone quickly. Further, you will almost never want minor children or beneficiaries with special needs to receive their inheritance outright.
Regardless of whether you chose a will or revocable living trust as the tool for distributing your money and property at your death, that document can include a provision holding your beneficiary's inheritance in a separate trust for their benefit. Having a beneficiary's inheritance held in a trust means that your beneficiary will not receive their inheritance outright but will instead receive their inheritance when the terms and conditions that you create are satisfied. Here are some examples of terms and conditions for an inheritance that you may choose to establish for your beneficiaries:
The important thing to remember is that you need to proactively make a legally valid plan if you have specific wishes about how your loved one will receive their inheritance. Without a plan put in place by you, your loved ones will be stuck with following the state law that determines who receives what, how much they receive, and how they receive it. For example, most state statutes will give an inheritance to an adult outright. So if you want more restrictions on your loved one's inheritance, you need to have an estate plan that reflects your wishes. However, it is important to note that including a trust in your estate plan may lead to additional administrative tasks that may not otherwise arise, such as filing income tax returns for the trust, investing and managing trust assets, and preparing inventories and accountings. These tasks take time, and the person carrying out these tasks (the trustee) can charge the trust for their time.
Depending on who your beneficiary is, some options might be a better fit than others. It is important that you understand who your beneficiary is, what their needs are, and what your desired outcome is.
If you want to leave money or property to a charity, you may choose to give the money or property outright, especially if there is a particular goal or defined purpose that you have for the gift. You may also consider leaving the gift outright if you want it used for general charitable purposes, which in many cases, is what a charity would prefer when designating the use of the gift. However, you may choose to incorporate a charitable trust as part of your estate plan. This might be desirable if you have certain tax objectives that you want to accomplish.
It is usually advisable to leave an inheritance for minor children in trust for their benefit because, in most cases, a minor cannot legally own or manage their own accounts or property. With a trust, you can determine who will manage the inheritance instead of having a judge choose a guardian or conservator to manage the minor's inheritance. If the money or property is left outright to the minor, it will likely be held for their benefit by a guardian, conservator, or custodian until the minor reaches the age of majority (18 or 21, depending on the state). This means that when the beneficiary becomes an adult, their inheritance will be distributed outright to them without any restrictions. For someone still so young, this could be risky.
Depending on the adult's situation and the value of the inheritance you would like to leave them, all of the options described above could be available to you. However, when weighing the available options, there are some important considerations:
If you answered yes to any of the above questions, you may not want to leave an inheritance to your loved one outright. A trust with specific terms, tailored to your beneficiary's unique situation, may be the best way to ensure that the inheritance benefits your loved one instead of causing problems for them.
If you are married, you may want everything you have to go outright to your surviving spouse upon your death. Maybe you consider everything you own to be owned jointly with your spouse, you want things to run as smoothly as possible, or you want your spouse properly provided for when you pass away. In addition to the considerations that we discussed for other adult loved ones, you need to consider the likelihood that your spouse may remarry or enter into another close relationship with someone and if that affects your decision in any way. If you leave everything outright to your surviving spouse, they will have the freedom to use the money and property in any way they want, including leaving it to a new spouse or buying expensive gifts for a new partner. If this is not what you want done with your money and property, it is important that you have a plan in place that puts more restrictions on your spouse's inheritance.
We know that there are a lot of different factors to consider when leaving an inheritance to your loved ones. We are here to walk you through the different options and help you solidify a plan that honors your wishes and protects your loved ones. If you need to begin the estate planning process or review your existing estate plan, please give our office a call.
2025-02-04 by Sue Hunt
Valentine's Day spending totaled nearly $26 billion in 2024, including an all-time high of $6.4 billion spent on jewelry.[1] Yet many Americans report feeling disappointed that their partner did not do enough to celebrate Valentine's Day.[2]
More than 40 percent of US adults say they feel stressed about finding the perfect gift for loved ones.[3] About one-third plan to give a gift of experience this year instead of material possessions, marking a consumer shift toward gifts that are seen as more experiential and personalized than material items.[4]
While the gift of a qualified terminable interest property (QTIP) trust may not be the most romantic Valentine's Day gesture, it could prove to be more thoughtful, caring, and valuable than an off-the-shelf purchase.
What Is a QTIP Trust?
A QTIP trust is an irrevocable trust for married couples that offers a tax advantage for the trustmaker (the spouse who creates the trust) and financial security for the surviving spouse while preserving wealth for future generations. Here is how it works:
What Makes a QTIP Trust Different?
There are as many different types of trusts as there are flavors in a box of Valentine's Day chocolates. In a way that sets them apart from other trusts, QTIPs offer a unique balance between providing for a surviving spouse and maintaining trustmaker control over the trust's assets.
Customizing a QTIP Trust
One of the strengths of a QTIP trust lies in its flexibility. Some ways to customize a QTIP include the following:
Distributions of Principal
The trustmaker has almost unlimited leeway to dictate when and how the trustee can distribute principal to their spouse. For example, they can limit access to the principal for only health, education, maintenance, or support expenses (i.e., the HEMS standard). They can also give the trustee sole discretionary authority to distribute principal based on the spouse's needs. They can even prohibit spousal access to the principal altogether to preserve assets for remainder beneficiaries.
Spousal Control
Although the trustmaker has the final say on the ultimate distribution of assets when the surviving spouse passes, they can give the surviving spouse some degree of control using strategies such as a testamentary limited power of appointment,which lets the surviving spouse choose how the remaining trust assets are distributed upon their death among a defined group of beneficiaries predetermined by the trustmaker (e.g., children, grandchildren, other family members).
Why Use a QTIP Trust?
A QTIP trust can be an effective estate planning tool if you want to provide for your spouse after your death but ultimately limit the spouse's control over your assets and have your assets pass to different beneficiaries.
This arrangement may prove useful when you have children from a previous marriage, your spouse does not manage money wisely or has creditor issues, or there is some other unique family dynamic. A QTIP trust can also be part of a business succession strategy that ensures your spouse has an income stream from the business without being involved in running it.
This Valentine's Day, instead of the customary candy, cards, flowers, and jewelry, consider showing your love with the gift of a QTIP trust that lasts a lifetime—and, in many cases, even longer. Call our office at 336-373-9877 to schedule an appointment.
[1] Valentine's Day Shopping Statistics, CapitalOne Shopping (Dec. 18, 2024), https://capitaloneshopping.com/research/valentines-day-shopping-statistics/.
[2] Have you ever felt disappointed by a romantic partner not doing enough on Valentine's Day? YouGov (Jan. 18, 2021), https://today.yougov.com/topics/entertainment/survey-results/daily/2021/01/18/0f873/2.
[3] Niranjana Rajalakshmi, Why you're so stressed out about finding the perfect Valentine's Day gift, News, The Univ. of Arizona (Feb. 7, 2024), https://news.arizona.edu/news/why-youre-so-stressed-out-about-finding-perfect-valentines-day-gift.
[4] Consumers Plan to Increase Valentine's Day Spending to Nearly $26 Billion, Nat'l Retail Fed. (Jan. 24, 2024), https://nrf.com/media-center/press-releases/consumers-plan-increase-valentines-day-spending-nearly-26-billion.
2024-04-08 by Sue Hunt
As a parent, you are responsible for the care of your minor child. In most circumstances, this means getting them up for school, making sure they are fed, and providing for other basic needs. However, what would happen if you and your child's other parent were unable to care for them?
It is important to note that if something were to happen to you, your child's other parent is most likely going to have full authority and custody of your child, unless there is some other reason why they would not have this authority. So in most cases, estate planning is going to help develop a plan for protecting your child in the event that neither parent is able to care for them.
What If You Die?
When it comes to planning for the unexpected, many parents are familiar with the concept of naming a guardian to take care of their minor children in the event both parents die. This is an important step toward ensuring that your child's future is secure.
Without an Estate Plan
If you and your child's other parent die without officially nominating a guardian to care for your child, a judge will have to make a guardianship decision. The judge will refer to state law, which will provide a list of people in order of priority who can be named as the child's guardian—usually family members. The judge will then have a short period of time to gather information and determine who will be entrusted to raise your child. Due to the time constraints and limited information, it is impossible for the judge to understand all of the nuances of your family circumstances. However, the judge will have to choose someone based on their best judgment. In the end, the judge may end up choosing someone you would never have wanted to raise your child to act as your child's guardian until they are 18 years old.
With an Estate Plan
By proactively planning, you can take back control and nominate the person you want to raise your child in the event you and the child's other parent are unable to care for them. Although you are only able to make a nomination, your choice can hold a great deal of weight when the judge has to decide on an appropriate guardian. The most common place for parents to make this nomination is in their last will and testament. This document becomes effective at your death and also explains your wishes about what will happen to your accounts and property. Depending on your state law, there may be another way to nominate a guardian. Some states recognize a separate document in which you can nominate a guardian, and that document is then referenced in your will. Some people prefer this approach because it is easier to change the separate document as opposed to changing your will if you want to choose a different guardian or backup guardians.
What If You Are Alive but Cannot Manage Your Own Affairs?
Although most of the emphasis is on naming a guardian for when both parents are dead, there may be instances in which you need someone to have the authority to make decisions for your child while you are alive but unable to make them yourself.
Without an Estate Plan
Not having an incapacity plan in place that includes guardianship nominations means that a judge will have to make this judgment call on their own with no input from you (similar to the determination of a guardian if you die without a plan in place).
With an Estate Plan
A comprehensive estate plan can also include a nomination of a guardian in the event you and the child's other parent are incapacitated (unable to manage your own affairs). Although you are technically alive, if you cannot manage your own affairs, there is no way that you will be able to care for your minor child. This is another reason why having a separate document for nominating a guardian (as described above) may be preferable to nominating guardians directly in a last will and testament. Because a last will and testament is only effective at your death, a nomination for a guardian in your will may not be effective when you are still living. However, a nomination in a separate document that anticipates the possibility that you may be alive and unable to care for your child can provide great assistance to the judge when evaluating a guardian. Depending on the nature of your incapacity, this guardian may only be needed temporarily, with you assuming full responsibility for your child upon regaining the ability to make decisions for yourself.
What If You Are Just Out of Town?
Sometimes, you travel without your child and will have to leave them in the care of someone temporarily. While you of course hope that nothing will go wrong while you are away, it is better to be safe than sorry.
Without an Estate Plan
Without the proper documentation, there may be delays in caring for your child if your child were to get hurt or need permission for a school event while you are out of town. The hospital or school may try to reach you by phone in order to get your permission to treat them or allow them to attend a school event. Depending on the nature of your trip, getting a hold of you may not be easy (e.g., if you are on a cruise ship with little access to phone or email). Ultimately, your child will likely be treated medically, but the chosen caregiver may encounter additional roadblocks trying to obtain medical services for your child, and they may not be able to make critical medical decisions when needed.
With an Estate Plan
Most states recognize a document that allows you to delegate your authority to make decisions on behalf of your child to another person during your lifetime. You still maintain the ability to make decisions for your child, but you empower another person to have this authority in the event you are out of town or cannot get to the hospital immediately. This document allows your chosen caregiver to make most decisions on behalf of your child, except for consenting to the adoption or marriage of your child. The name of this document will vary depending on your state and is usually effective for six months to a year, subject to state law. Because this document is only effective for a certain period of time, it is important that you touch base with us to have new documents prepared so that your child is always protected.
We Are Here to Protect You and Your Children
Being a parent is a full-time job. We want to make sure that regardless of what life throws at you, you and your child are cared for. Give us a call to learn more about how we can ensure that the right people are making decisions for your child when you cannot.
2025-02-04 by Sue Hunt
A home is often one of the most important assets that people own. Therefore, most people want to stay in their home until they die and then have a loved one receive it. One common way to pass a home to loved ones is through a will. However, transferring property with a will requires probate, which is generally considered a lengthy, costly, and public court process that many actively seek to avoid.
There are several ways an estate plan can transfer property without a will or probate court involvement when the owner passes away. In addition to a lifetime transfer of the property (by sale or gift), certain types of deeds can be used that take effect only upon the property owner's death and do not subject the property to probate. However, using these deeds for probate avoidance can potentially introduce new issues. A trust-based estate plan may be a better option if the goal is simply to avoid probate.
Home Ownership and Inheritance
We are living through one of the largest intergenerational wealth transfers in history. Roughly one in six Americans expect to receive an inheritance in the next 10 years, and among those, nearly half anticipate inheriting property such as a house.[1]
According to Pew Research, in 2021, nearly two-thirds of US households lived in a home they owned as their primary residence.[2] Homeowners have, on average, around $174,000 in equity in their homes—more than double the value of their next most valuable asset, retirement accounts, which have an average value of $76,000.[3]
Real Property, Legal Rights, and Trusts
A key concept in estate planning is honoring people's wishes by helping them control, as much as possible, what they own and what happens to it after their death.
An estate plan enables a homeowner to decide what happens to their property after they pass away, ensuring that it goes to the person (or people) they choose in a manner of their choosing, whether that means keeping it in the family and setting limits on its use or transferring the property to a beneficiary without restrictions.
Options for Transferring Real Property at Your Death
Estate planning is highly flexible, offering multiple ways to satisfy someone's wishes for what happens to their money and property when they die, each with a mix of benefits and downsides.
To avoid probate, there are many ways to transfer real property, both during the owner's lifetime and at their death. Some solutions can cost less than a trust, but as the examples below show, they can also have significant downsides and risks.
Deed-Based Transfers
A deed is a legal document that transfers real estate ownership from the current owner (the grantor) to another individual or entity (the grantee). Several types of deeds can be used to gift real property at the grantor's death. They include the following:
Again, not all of these types of deeds are legally valid in all states. An experienced estate planning attorney can explain what tools are available to you and discuss the benefits and potential risks.
Downsides to Using a Deed to Transfer Property at Your Death
There is no creditor protection for your beneficiaries. When a deed transfers property to a beneficiary, that property goes to the beneficiary outright. There are no strings attached and no protections. For instance, if the beneficiary were to receive the property during a bankruptcy proceeding, it might be used to satisfy the creditors because it is now considered the beneficiary's property.
There is no protection if the beneficiary is disabled or unable to manage their affairs. As previously mentioned, when the beneficiary receives the property, it is theirs. However, if they receive the property when they cannot manage their affairs, its management falls to another person. It may be handled by a court-appointed guardian or conservator or an agent under a financial power of attorney, who can do whatever they want with it (as long as it is in the incapacitated beneficiary's best interest). Also, if the beneficiary receives any means-based assistance, the sudden inheritance could jeopardize those benefits by placing the beneficiary above any applicable asset threshold.
There are no protections for you if you cannot manage your affairs. These deeds are a sufficient way to transfer property after you are deceased. However, if you cannot manage your affairs during your lifetime, the named beneficiary or remainderman has no access to or interest in the property to help you manage it until you pass away. You will have to rely on an agent under a financial power of attorney (if you have one) or a court-appointed guardian or conservator to manage the property on your behalf.
Your beneficiary is free to do what they want. As already discussed, if you use a deed to transfer ownership at your death, your beneficiary will receive the property outright. You cannot add any conditions or requirements regarding the property or its use. The beneficiary can sell, mortgage, or use it as a rental property (subject to applicable zoning restrictions). It is their property to do with as they please. Their intended use of the property may not align with your wishes.
Using a Trust to Transfer Real Property
While you may view your home as a place to live and not as an investment or financial vehicle, that perception can change when you pass away and the home passes to a loved one, particularly if that loved one already has a primary residence.
A beneficiary who inherits a home may decide to sell the property; turn it into a rental; renovate the property to use it as a farm or business; sell off individual structures on the property (such as a barn or historic structure); cash in on its natural resources (e.g., allow timber to be harvested); or even tear down the original home and build a new one in its place. When more than one beneficiary inherits the property, disagreements about how to best use it could arise.
You might not care what happens to your home when you are gone. However, if you want to set restrictions on its use for any reason—whether those reasons are sentimental or have the practical intent of reducing conflicts among multiple beneficiaries—you must use the right estate planning tool.
Consider placing your home in a living trust that legally owns the property, with you serving as a trustee and being the current beneficiary during your lifetime. This allows you to stay in your home—and maintain control over it—while you are alive. When you pass away, the home does not go through probate because you do not technically own it. Instead, a successor trustee assumes legal responsibility for the property and manages it or gives it away in accordance with your trust's terms.
The trust terms can be highly detailed, and limitations can be set on how the property can be used. You can stipulate, for example, that the property must be shared as a family vacation home and cannot be used for business purposes. You can require that the house be held in the trust until your minor children reach a certain age so they can remain in the home after your passing. While the trust owns the property, your terms will govern its use. As soon as the property is distributed from the trust, you lose all control over it.
The Best Way to Transfer Property for Every Situation
Estate planning is a highly personal process that must consider many factors, each of which can have multiple solutions that present a unique set of benefits and drawbacks.
Avoiding probate is usually just one estate planning consideration among many, and it may not be desirable in every situation.
Determining the best way to pass down real property at death depends on your preferences and family circumstances. An estate planning attorney can explain each available option and help you decide what is best for your situation.
[1] The "Great Wealth Transfer" is underway but nearly half expecting an inheritance are not ready to manage it, finds New York Life Wealth Watch Survey, New York Life, July 19, 2023, https://www.newyorklife.com/newsroom/2023/new-york-life-wealth-watch-great-wealth-transfer.
[2] Rakesh Kochhar and Mohamad Moslimani, 4. The assets households own and the debts they carry, Pew Research Center, Dec. 4, 2023, https://www.pewresearch.org/2023/12/04/the-assets-households-own-and-the-debts-they-carry.
[3] Id.
2026-04-10 by Julia Walker
Do I Need Long-Term Care Insurance and How Does It Work?
Policy experts and families alike have long noted that the United States lacks a comprehensive public system for long-term care.
Medicare generally does not cover these services, and while Medicaid can help, it is available only to people with very limited assets, often requiring a spend-down that can leave little or nothing for loved ones.
Private long-term care insurance (LTCI) offers a potential solution, but the market is more exclusive than it once was. The policies still available today are typically designed for relatively healthy people who can afford higher premiums.
In recent years, interest in the LTCI market has grown again, thanks in part to hybrid life insurance/LTC products. While LTCI is not right for everyone, both traditional and hybrid policies can play a useful role in protecting assets and supporting long-term care strategies.
What LTCI Is—and Is Not
KFF Health News and the New York Times recently published a series explaining why “few can afford to grow old” and many Americans are “dying broke” due to high long-term care costs and no universal public care system.[1]
Given this reality, a private LTCI policy may seem like a no-brainer. Yet the contraction of the LTCI market over the past few decades shows that this is a limited tool with a small target audience.
Around 70 percent of people aged 65 and older will need long-term care services during their lifetime, but fewer than 5 percent of Americans aged 50 and older own a long-term care policy.[2]
LTCI emerged in the 1970s and 1980s as a mass-market product, similar to life insurance but specifically designed to cover services that standard health insurance and Medicare typically do not pay for. It typically covers the following services:
● In-home care. Assistance with daily activities while staying at home
● Assisted living facilities. Supportive housing with care services
● Memory care. Specialized care for people with Alzheimer’s or other memory-related conditions
● Skilled nursing or nursing homes. Long-term skilled care in a facility with professional medical support
LTCI generally does not cover the following services:
● Short-term medical care that Medicare already pays for
● Care that does not meet policy requirements (Most policies only pay when you have significant cognitive impairment or cannot perform at least two activities of daily living, such as bathing or getting dressed.)
● Informal care by family or friends unless it meets the policy’s rules for coverage
What Else to Know About LTCI: Pricing, Options, and Fit
Why are more Americans not purchasing long-term care insurance? Let’s start with the benefits. Here is what LTCI can do:
● Provide dedicated funds for care
● Preserve assets for heirs
● Offer flexibility in choosing where and how care is provided
● Reduce reliance on family caregivers and Medicaid planning, including having to spend down savings
● Support spousal planning
But LTCI is far from a perfect solution and is not one-size-fits-all. These are some important factors to consider:
● Hybrid life/LTC products are growing in popularity,[3] combining long-term care coverage with a death benefit. They may be especially appealing to younger buyers or sandwich-generation families.[4]
● Some policies (especially older or narrowly designed ones) may not pay for all the care you assume is covered,[5] leading to substantial out-of-pocket costs.
● Modern policies often have stricter health requirements and more conservative pricing.
● A policy for a 55-year-old single man averages roughly $950 per year and about $1,500 for a single woman. A married couple of the same age purchasing coverage together may pay around $2,080 annually, with higher premiums for inflation protection, according to the American Association for Long-Term Care Insurance.[6]
● Plan features that affect pricing include age at the time of purchase, medical history and current health, daily or monthly benefit amounts, benefit duration, inflation protection, and waiting periods.[7]
With these factors in mind, LTCI may be worth considering in the following circumstances:
● You have meaningful assets at risk and want to reduce the possibility of care costs wiping out your savings.
● You want to preserve a legacy rather than using those assets for self-funded care.
● You want to protect a spouse’s financial stability if your partner requires care.
● You want to reduce the risk that care expenses will disrupt investments or other financial goals.
● You are healthy enough to qualify and can afford to pay premiums over the long term.
LTCI may not be a good fit in the following circumstances:
● You have limited cash or income flexibility, and premiums would stretch your budget or make other financial goals harder to achieve.
● You expect to rely primarily on public benefits; if you are planning for Medicaid to cover your care, LTCI may not be necessary.
● You have already arranged savings or trusts to cover care.
● You face health issues that may make it difficult or expensive to qualify for coverage.
● You are unwilling to commit to long-term premium obligations, preferring financial flexibility.
Whether LTCI is right for you comes down to a personalized analysis. The need for long-term care is becoming more common among aging Americans. However, a dedicated care policy is just one tool within LTC planning and the larger planning picture. You should evaluate its fit alongside your legal documents, insurance coverage, and financial goals so that long-term care—if it becomes necessary—does not dictate the choices available to you and your family.
[1] Dying Broke: A KFF Health News–New York Times Project, KFF Health News (Nov. 14–Dec. 15, 2023), https://kffhealthnews.org/dying-broke.
[2] Janet Weiner, Reforming Long-Term Care Policy: Lessons from the Past, Imperatives for the Future, Penn LDI (Dec. 4, 2025), https://ldi.upenn.edu/our-work/research-updates/reforming-long-term-care-policy.
[3] Is Life Insurance the Answer to the Growing Long-Term Care Need in the U.S.?, LIMRA (Aug. 28, 2025), https://www.limra.com/en/newsroom/industry-trends/2025/is-life-insurance-the-answer-to-the-growing-long-term-care-need-in-the-u.s.
[4] The Sandwich Generation: Balancing Care for Parents & Children, Caregiver Action Network, https://www.caregiveraction.org/sandwich-generation (last visited Mar. 31, 2026).
[5] Reed Abelson & Jordan Rau, Dying Broke: A KFF Health News–New York Times Project: Facing Financial Ruin as Costs Soar for Elder Care, KFF Health News (Nov. 14, 2023), https://kffhealthnews.org/news/article/dying-broke-facing-financial-ruin-as-costs-soar-for-elder-care.
[6] 2025 Long-Term Care Insurance Facts - Prices - Data - Statistics - 2025 Report, Am. Ass’n for Long-Term Care Ins., https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2025.php (last visited Mar. 31, 2026).
[7] What Features of Long-Term Care Policies Should I Focus On?, Ins. Info. Inst., https://www.iii.org/article/what-features-long-term-care-policies-should-i-focus (last visited Mar. 31, 2026).
