REPLAY: Estate Planning with Lillie N. Nkenchor, Esq., LL.M.
Every August, I take a sabbatical from podcast recording to enjoy vacation time with family and friends and allow you to enjoy for the first or second time four previous podcast episodes that I found tremendously helpful and entertaining.
Other than travel and family time, I’ll also be doing A LOT of prep work for some exciting changes happening to Financial Gym this Fall. You will not want to miss my September 1st podcast episode. I will have a lot to update you on as far as the podcast but also as far as the Gym. So I hope you enjoy this month of replays and stay tuned for very exciting updates in September.
REPLAY: At the Financial Gym, we have a Diversity, Equity Inclusion and Belonging team that works on various initiatives for the Gym and in 2022, they launched the Exercising Empathy Series where they focused on presenting one speaker a month to educate the team on various subject matters that could impact our clients. I personally attended these sessions that were held during our weekly professional development time and found each one incredibly helpful and informative and I’m excited to share some of those speakers with you on this podcast. Joining me today is Lillie Nkenchor, President of Lillie Nkenchor PC to discuss why she became a trust and estate attorney and why you don’t have to be wealthy to think about trust and estate planning.
What are we drinking?
Lillie - Homemade pineapple, beet, and carrot juice.
Shannon - Black Cherry Schweppes
Podcast Notes
Lillie’s original plan was to attend medical school, but she quickly realized that she and chemistry were not friends and had to pivot. Law school came into her sphere, and she thought, ‘maybe I’ll be good at it.’ Law wasn’t a burning passion. She started studying for the LSATS, passed, and showed up ready on day one. Her background in science led her to focus on health law, but she enjoyed Estate and Tax Law.
Estate law touched her in a way the other fields did not. It’s because she realized with the proper documents, you can build a legacy and take care of your grandchildren. It’s incredibly practical.
Tax law is scientific; there is always an answer. In contrast, other areas like con law are jurisdictional and can depend on how the judge feels that day.
Lillie leaped into entrepreneurship because working in her corporate role provided no personal fulfillment. She kept searching for different positions but couldn’t find anything that seemed like the right fit. That’s when realized she had to create it.
Why Engage with a Trust & Estate Planner
Estate planning is for everyone, not just the elite. There are different levels of estate planning. Someone with $100,000 will have different needs than someone with a few million dollars. Everyone has the right to make a plan and their wishes known. An estate plan is essential if you have assets and people you care about in life.
Death and money can bring out the worst in people. It can get messy. When you pass away, your loved ones will already be distraught. Not making a plan beforehand will make things even more complicated for them.
There is a common misconception that estate planning is unnecessary if you don’t have a spouse or children, but this group of people is one of the most important! Without clear connections like a spouse and a plan, the state will do what they think is best.
While each state has its own laws, in general, assets will go to the next of kin if it’s unclear where they need to go.
If you don’t have a spouse, children, or anyone you want to leave your assets to, they can go to your pets or a non-profit organization.
The will - the most fundamental component of estate planning.
The foundation of the will is about controlling the distribution of your assets, and if you have children under 18 years, who will raise them in the event both parents pass? Assets without automatic legal designations are determined through the will.
Assets with automatic legal designations are accounts with beneficiaries added or property owned by someone else. These assets already know where to go. The will fills in the gaps for everything else.
Low Cost & Free Options:
Some employers offer essential estate planning, and there are low-cost options through platforms like LegalZoom.
If working with an estate planner is out of your budget, start with a lower-cost option. It’s best to have a plan and upgrade it once you can afford it.
While using software is fine, they aren’t as nuanced nor do they provide the care an actual human does. An estate planner will remind you to update your documents when laws change and check in on you. When you pass away, these documents must be processed through systems, and an estate planner will take care of that for you.
Lillie always recommends working with a professional, but a basic DIY plan is better than nothing. Don’t let cost hinder you from getting this done.
Working with an estate planner on the low end will cost about $3000 - $5000. It depends on your location and the attorney. Some firms will ask for more.
Prenuptial & Postnuptial agreements (Prenups & Postnups)
A prenup is an agreement made between two people before marrying that establishes rights to property and support in the event of divorce or death.
It allows you to protect what is yours before becoming a unit. A postnup is similar but the contract is signed if you decide to set one after you’re already married.
If you decide to get a prenup, make sure you see a Family Law Attorney. Each party should have a separate attorney.
Give yourselves plenty of time. A prenup is not something to work out the week or even the month of the wedding. There will be negotiations back and forth, so you want to ensure there is time.
Nobody wants to think about divorce when they’re planning to get married, but it is essential to be realistic and protect what is yours before entering the marriage.
Trust planning:
A trust and will complement each other. Everyone should have a will, and a trust is the next step. It’s for when you have a bigger vision for your assets and how they’re to be distributed.
The trust is a gift with some rules and stipulations. Some are based on age or for specific purposes, like education.
There are many different types of trusts. One example is a special needs trust.
Year-End Planning:
Check up on your accounts, and update the beneficiaries if needed.
Since these are state-specific, if you have moved, update your will. Some states will honor parts of the will from other states, but it all depends on the laws in each state.
Updating your estate plans is a good habit whenever there is a significant life change.
Large amounts of wealth is not needed to make a plan. You only need to have intentions for your assets.
Takeaway: My biggest takeaway is that estate planning is something that everyone should focus on and it doesn’t have to be cost-prohibitive.
Random Three Questions
If you were not an attorney, what would your dream career be?
What are you currently binging?
If this was your last meal on earth, what would it be?
Connect with Lillie
Website: www.lillienkenchor.com
Instagram: @lillie_nkenchor_pc
Linkedin: Lillie N. Nkenchor, Esq., LL.M.
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
We are fast approaching the end of another year and we need to start preparing for a new year. If you or someone you know would like to have a supportive best financial friend along the ride with you for this journey, please check out financialgym.com. With memberships starting as low as $35 a month, we are the inflation-proof source for financial wellness for anyone. So head over or send friends to financialgym.com and schedule a warm up call today. As a reminder, our warm up call team is staffed with amazing and current Financial Gym clients that can answer any of your questions about our program.