In this episode of Doctor’s Eyes Only®, Lauren Oschman walks through estate planning for physicians from a practical, financial planning perspective.
This is meant to be an orientation to how estate planning works, how assets transfer, and what needs to happen for a plan to function the way you intend.
You can use the timestamps below to follow along:
00:00 A Common Issue with Estate Planning
Lauren starts by sharing something she sees often when working with physicians. The documents are in place, but the trust is not funded and the accounts are not aligned, so the plan does not work the way it was intended.
01:00 What This Episode Covers
This is a high-level overview of estate planning for physicians. Lauren explains that this is from a financial planning perspective and that legal details should come from an estate planning attorney.
02:00 The Core Estate Planning Documents
She walks through the main components of an estate plan, including a will, a revocable living trust in many cases, healthcare and financial powers of attorney, and a living will. She also emphasizes the importance of keeping an organized record of accounts and passwords so your family knows where to start.
03:30 How Assets Transfer
Lauren explains that assets transfer in different ways. Some pass by contract through beneficiary designations, like retirement accounts and life insurance. Others, like bank and brokerage accounts without beneficiaries, typically go through probate. She also explains how POD and TOD designations work, along with joint ownership.
05:30 What Probate Looks Like
She describes what happens when assets go through probate, including the time it can take, the involvement of the court system, and the amount of work required from the executor.
07:30 Will-Based Estate Plans
Lauren explains how a will-based plan works, including situations where a trust is created within the will after death. Even in those cases, assets still go through probate.
08:45 Trust-Based Estate Plans
She then walks through how a revocable living trust works differently. The trust exists during your lifetime, and assets can be titled into it. If something happens, a successor trustee can step in and manage those assets without going through probate.
10:30 What Goes Into a Trust
Lauren explains how accounts like brokerage accounts and real estate can be owned by the trust. She also notes that investment properties may need additional structuring and that this is something to review with an attorney.
11:30 Why This Gets Delayed
She talks about why estate planning can feel difficult to get started, including finding the right attorney and understanding the terminology and structure.
13:00 The Process Does Not End at Signing
Lauren emphasizes that signing the documents is not the final step. The accounts and beneficiaries need to be aligned with the plan.
13:30 Beneficiaries and How They Work
She explains that beneficiary designations override what is written in your will. She walks through examples where outdated beneficiaries can lead to unintended outcomes, including after marriage or divorce.
15:00 Reviewing Your Beneficiaries
Lauren shares that beneficiaries should be reviewed regularly to make sure they reflect your current wishes.
15:45 Funding the Trust
She explains what it means to fund a trust and why it matters. If assets are not titled in the trust, they may still go through probate even if the trust exists.
16:30 Ongoing Review
She notes that estate planning should be reviewed over time to make sure everything stays aligned.
17:00 Talking to Your Parents
Lauren shifts to a related topic and encourages physicians to understand how their parents’ estate plans are structured, especially if they may be involved as an executor.
19:00 Knowing Where Things Are
She explains the importance of knowing where accounts are held so that if something happens, there is a clear starting point.
54 mins