MSU Extension: New Years Resolution: Get That Estate Plan Done

This article is one in a series focusing on estate and legacy planning. The authors are Kaleena Miller, Madison-Jefferson County Extension Agent, kaleena.miller1@montana.edu, and Marsha Goetting, MSU Extension Family Economics Specialist, marsha.goetting@montana.edu.

With the start of a new year, it’s time to set your financial goals for 2025. An important suggestion from Extension educators Marsha Goetting, MSU Extension Specialist and Kaleena Miller, Madison-Jefferson Extension Agent, is to make getting your estate plan done a priority during 2025. People who have experienced the death of a family member agree that it is worth investing some time and money to avoid the confusion, delay, expense, and quarreling that sometimes occurs in families when an individual dies without an estate plan.

Most people, when they stop and think about it, would like to have a say about what happens to property they have worked hard to accumulate. An estate plan is a tool that gives the planner control over who receives your property. If you don’t make a plan, state law mandates who receive your real and personal property upon your death.

First, accept the fact that you are going to die someday. Ask yourself: If I should die today:

• What would happen to the property I’ve worked so hard to accumulate?

• Who would care for my minor children and aging parents?

• Would my spouse and children be provided for?

• Would the family downtown or farm/ranch business continue?

• Would the estate settlement be conducted by someone with my family’s interests and needs in mind?

Estate planning is the process of arranging your affairs to meet your objectives regarding the use, conservation, and distribution of your property.

Basically, estate planning is a part of your overall financial plan because it involves the coordination of all your properties (stocks, bonds, cash, real estate, business interests, life insurance, retirement benefits, and other assets) into a total approach.

You can’t take these “riches” with you. Since someone is going to inherit your real and personal property, it seems only sensible to have the results of your hard-earned efforts distributed according to your wishes. And by planning, you can conserve as much of your assets as possible from the other costs of estate settlement.

Perhaps the greatest hurdle to overcome in most families is a lack of communication. All too often, family members are hesitant to discuss estate planning. Parents considering retirement may wish to delay any discussion because of the unpleasant overtones connected with growing old and dying.

Adult children may hesitate to mention estate planning because they want to avoid placing additional stress on their parents and grandparents. They don’t want to appear greedy or as trying to take over the planning process.

How do family members start a discussion about the need for an estate plan without causing misunderstandings? One way may be to use the MSU Extension MontGuide, Getting Started About Estate Planning as a conversation piece.

Share what you learn with other family members. Encourage them to read other MontGuides in the estate planning area. For more information, go to http://www.montana.edu/estateplanning and click Publications. If you do not have access to a computer or printer, call the MSU Extension Madison-Jefferson County Office for a copy of the MontGuide. 406-287-3282.

Once a dialogue is started, many families find it easier to discuss their situations, concerns, and objectives. Difficult decisions may need to be made and there may be decisions upon which not every family member will agree. However, the alternative of doing nothing allows Montana law to decide how your property is distributed. The state does not necessarily have an appreciation of your unique family situation.

Because estate planning has become so technical and complex, most people do not have the time to learn all they need to know to plan an estate thoroughly. Neither can they be expected to keep up with changes in Montana and federal laws. That’s where a team of professionals – such as attorneys, certified public accountants, financial advisers, trust officers and life insurance agents – can be of help to you.

An attorney with expertise and experience in property law, probate, trusts, tax law, and other estate settlement issues generally serves as the key person on the team. Time and money can be saved by having the necessary information and documents in hand for that first visit with your attorney. The MSU Extension MontGuide provides a checklist of what my attorney should know as well as a list of 20 common estate planning objectives. Having the information organized will save you money.

By reading these two MontGuides and then taking the suggested actions, you will be well on your way to getting your estate plan done during 2025. MSU Extension also has a MontGuide, Selecting an Attorney in Montana to Develop an Estate Plan or Administer an Estate (Probate). You want to have an attorney who is well-informed about Montana will and trust laws and other legal tools. You want the attorney to develop an estate plan tailored to your needs by considering your age, health, family, income, assets, goals, and other circumstances.