Call Honolulu Estate Planning Attorney Michael J. Madison at (808) 594-9917

Tis the Season to Lighten Your Family’s Load

Hawaii estate planning sounds morbid and boring especially this time of year. You might not think it warrants a place on your holiday to-do list either. You’re likely busy buying presents, cleaning the house and socializing with people you try to avoid the rest of the year. However, one of the best gifts you can bestow on your loved ones is protection from a potential financial nightmare in the case of passing.
Obtain Enough Life InsuranceIf you have dependents, you should obtain life insurance to provide for lost income after you pass. You want to have enough coverage to equal 10 times your yearly wages. People most commonly opt for term life insurance. You can also get permanent life insurance with a savings component.

Make a Will

You needs a will, regardless of income level. You should name an executor and assign a guardian for each child under 18. In the case of young children, you also need to have a minor’s trust created by an attorney. This means that any assets left to them will be held in said trust until the recipient reaches the age of majority. You should review your will with each life event, or at least every three years.

Know When to Create Trusts

If you own property especially if you want to keep terms private, establish a living trust is critical. This bypasses probate and the associated costs. Otherwise, generate a trust within the will, especially when:

  • You don’t want to leave any assets directly to minor children.
  • You want to protect you property from falling into the hands of a child’s ex-spouse or a creditor.
  • You feel that your adult children lack responsibility in handling an inheritance.

Properly planning and protecting your estate is important now more than ever. Schedule a no-obligation consultation today.

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