05/14/2026
Let's face it, we all tend to think we have more time.
But time is the one thing we don’t get to control. We don’t know how much we have, and we don’t get to choose when it runs out.🤷♀️
That uncertainty is part of life, but it’s also why planning matters.
Having a plan in place isn’t just about your assets. It’s about maintaining control and making things easier for your family during a time when they’re stressed and not thinking clearly.
Even in families that get along well, we’ve seen things change quickly when a parent becomes sick or passes.
⬇️Here are a few common mistakes, and how to avoid them.
1️⃣Mistake #1: Giving Away Large Assets Too Early
Many people think transferring assets early, like deeding a home to children, gifting a business, or transferring stock, will simplify things later.
In many cases, it creates bigger problems.
Under current tax law, most assets receive a step-up in basis at death.
👉For Example:
A home purchased for $40,000 that is now worth $760,000 would receive a new basis of $760,000 at death. If your children sell it, there may be little to no capital gain.
But if you transfer that property during your lifetime, they inherit your original $40,000 basis. When they sell, they may face significant capital gains taxes, and potentially other tax consequences.
There can also be Medicaid lookback rules and penalties to consider.
2️⃣Mistake #2: Assuming Your Will Covers Everything
Your will does not override beneficiary designations.
If you have life insurance or retirement accounts, those assets pass based on the named beneficiary, not your will or trust.
If an ex-spouse is still listed as beneficiary, they may still receive those funds.
Additionally, naming your estate as the beneficiary can create unnecessary complications:
✔️It may expose funds to creditors
✔️It can delay distribution
✔️It may create unintended tax consequences
These designations should be reviewed regularly.
3️⃣Mistake #3: Having No Plan at All
This is the most common issue.
✔️No powers of attorney.
✔️No healthcare directives.
✔️No coordination between your business and your estate plan.
Without these in place, your family may not be able to:
❌️Access bank accounts
❌️Make financial decisions
❌️Speak with your advisors or doctors
❌️Continue operating your business to your wishes or issue final paychecks to your employees.
Even basic actions can become difficult or delayed.
It’s also important to recognize that capacity can change unexpectedly.
👉Planning should happen while you’re able to make clear decisions; not later. Your overall risk is 2 in 5--or 42%--for developing dementia over the age of 55, so if you’re already over that age, don’t delay on this any longer!
⬇️Why This Matters
If your business is your primary source of income or your largest asset, a lack of planning can create real financial stress for your family.
This isn’t just about documents, it’s about making sure things continue to function when you’re no longer able to manage them.
⬇️Where to Start
If you’re working on an estate plan—or planning to—we can help review the tax side to make sure things are structured efficiently.
For legal guidance, we recommend working with an estate planning attorney. If you need a referral, here are a few professionals we trust:
■Chicago SW Suburbs:
▪︎Allison Marketti 815-443-4767
▪︎Terry Fogarty: 815-600-8950
▪︎Heather Voorn: 815-215-8777
■South Carolina:
▪︎Emmette Saleeby, Esq (Upstate): 864-342-7494
▪︎Goff Law Firm PA: (Midlands) 803-254-6961
▪︎Tracy Law Firm (Lowcountry): 843-800-2122
