Young Family
Jack Smith is 30-years-old, his wife Claudia is 28-years-old. Jack and Claudia have been married for four years. They have a two-year-old son, Jacob, and are expecting their second child. They just bought their first house last year and both work full-time.

Many people in Jack and Claudia’s situation don’t think estate planning is necessary. They are young and don’t have very many assets, so why would they need an estate plan?

The primary reasons Jack and Claudia need to have an estate plan are to determine who would be the guardian of their children in the event Jack and Claudia both pass away and how assets would be allocated to support their young children while they are minors. This type of situation may require a testamentary trust with guardianship language. A testamentary trust is a section within a last will and testament that defines how assets would be held to benefit their minor children.

Jack and Claudia also need to have a basic health care directive in place. This includes a power of attorney for health care and living will. A power of attorney for health care would give the appropriate person the power to make health care decisions on behalf of the incapacitated person. A living will defines what the principal would like to happen in the event he/she is terminal so that way the family won’t have to make the difficult decision. This document would include a HIPAA waiver, which is necessary under current laws.

Retiring Parents
Jack’s parents, Dan and Debbie, are both 66-years-old and have recently retired. They have three adult children. Dan and Debbie have $550,000 in retirement and savings accounts for their years of retirement. In addition, they own 160 acres of family farm ground, and Debbie expects to inherit another 80 acres from her mother when she passes.

Many couples begin thinking about implementing some type of estate planning when they reach their late fifties or early sixties. They feel that at this age a basic will and health care directive is sufficient. However, because there may be additional tax considerations, a more comprehensive plan, such as a trust package, is typically suggested. A trust would also ensure that Dan and Debbie’s estates would not go through probate.

Dan and Debbie’s comprehensive package would include powers of attorney for assets and health care, living wills, nominations of conservator, as well as pour-over wills in addition to the revocable trust agreement. A revocable trust agreement would allow them to specify how they would like their assets, including the family property, to be distributed.

Single Person
Dan and Debbie Smith’s youngest child, Gwen, is not married and doesn’t have very many assets. She graduated from college one year ago. Many people have the misconception that a single person with very little assets doesn't need any estate planning.

Because Gwen is over the age of 18-years-old, her parents will not necessarily have access to make medical decisions on her behalf in the event she becomes incapacitated. It is a necessity for Gwen to have at least a basic health care directive, including power of attorney for health care and a living will. This will ensure that Gwen will have somebody who will be able to make decisions on her behalf.

Single Senior Citizen
Debbie Smith’s mother, Ardith, is 81-years-old. She has a net worth of $700,000 and lives in an assisted living facility. She established a trust in 1988 with her husband. He passed away in 1994 and she has not updated her plan since its creation in 1988.

Ardith believes that all of her affairs are in order in the event she is incapacitated or passes away. However, Nebraska laws have changed in recent years causing a need for amendments to older estate plans. Ardith also needs to ensure that all of her assets are titled in the Trust. Many people have trusts established that have not been properly funded by their assets. This situation would cause Ardith’s estate to be probated. Ardith would need to seek the advice of an attorney to review her current estate plan and make any needed amendments.