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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you have recently dealt with the death of a parent, what advice do you have for other parents setting up estate plans and wills for their adult children? DH and I are getting this process started now (our kids are adults) and we're trying to figure out if we need a full estate plan with an actual lawyer (which seems very expensive), or if we can just fill out the online POA/wills forms that are available through reputable online services. I don't really understand what the lawyer does. If we fill out those forms and then leave bank account/investment account information for our kids in a folder, and name them as beneficiaries, and then create a will for distribution of tangible assets like real estate, doesn't that take care of everything? Why do we need an estate lawyer involved? Thanks [/quote]

Not a lawyer. We went through something like this for a close relative who died young without a will/trust and helped the spouse through the financial/inheritance issues.

1. Create that set of documents - Revocable Trust, HCPOA, Pour Over Will, etc.
2. Fund the Trust. Title your financial assets in the name of the Trust.
3. Some jurisdictions allow you to transfer title of your property to a Trust. Check.
4. [b]All financial accounts should have a named beneficiary. 401K and other tax deferred accounts that should be the people you want to give that money to (not the trust).[/b]

A trust is essentially a legal entity where you are both the grantor and trustee. You get to dictate who your successor trustee would be, as well as one of more backups, and how the assets should be divided. You don't need a lawyer to do this as long as the inheritors are non-combative. If the situation is complex - kids that don't get along, second marriage, estate in the multiple millions, across states or countries, etc. - you should absolutely get a good lawyer.[/quote]

Why not name trust as beneficiary for 401k?[/quote]

Because only qualified beneficiaries are entitled to the "stretch" of distributions. If it goes to the trust, you'll be subject to mandatory disbursements much sooner and that can have tax implications. [/quote]

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