Disinheritance Clauses: Myth and Reality

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Myth: “Leave your estranged relatives $1 so they can’t contest your will.”

 

A common belief is that designating any portion of your estate to an estranged relative will legally prevent them from challenging your will. In reality, leaving someone anything in your will generally makes them an “interested party” in the eyes of the court, meaning they must be formally notified of the probate proceedings. This can inadvertently involve a disgruntled relative in your estate administration process, potentially leading to drama and confusion.

 

If your intention is to exclude someone from both inheriting any of your estate and from challenging your will, a carefully drafted disinheritance clause is, in most cases, the better approach. It clearly documents your wishes and helps avoid questions about whether the omission was accidental.

 

Disinheritance clauses aren’t just for estranged family members, either. They can also simplify estate administration in amicable situations as well, and help explain unequal distributions among family members. For example, a parent may have already provided extensive financial support or established separate planning—outside of a will or trust—for a child with special needs, making it appropriate for another child to inherit the estate. A thoughtfully-drafted disinheritance clause can clarify the reason for doing so. In such a case, the clause may include a phrase directed towards the disinherited child to show that the testator has made the decision “not for any lack of love or affection, but for reasons known to them.” Even if everyone agrees on who should inherit, clearly stating your intentions in your will can help make the probate process smoother.

 

Every family situation is different, which is why thoughtful estate planning is crucial. A properly drafted will can help ensure your wishes are carried out while minimizing unnecessary complications for your loved ones.

Beneficiary Designations (TOD/POD) vs. Revocable Trusts

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One of the most common misconceptions about estate planning is that adding beneficiary designations to your financial accounts will be enough to both avoid probate and have a comprehensive estate plan. However, while transfer-on-death (TOD) and payable-on-death (POD) designations can help pass assets directly to your heirs without probate, a clearly structured estate plan focuses on more efficiently managing assets and their distribution, since it takes into account unforeseen life changes that a TOD or POD designation does not account for. Avoiding probate alone should not be the only goal with respect to a complete estate plan.

 

This is where revocable trusts can provide significant advantages. A revocable trust enables your assets to be managed as a whole—and includes instructions for distributing them in the case of unexpected circumstances. Rather than relying on multiple beneficiary designations that may become outdated or create confusion, a revocable trust provides a clear roadmap with alternative steps to account for any life changes. Although beneficiary designations can be a useful tool, a revocable trust is ultimately a more effective solution to the various complexities of asset transfers and as part of a comprehensive estate plan.

 

Save your family from legal complications during an already stressful time by creating a comprehensive estate plan. A thoughtful estate plan today can provide peace of mind for you and your loved ones tomorrow. Prepare for the future now to minimize headaches for your family and ensure that your wishes are honored.

 

Guardianship Myth

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Myth: “If something happens to me, my child’s godparents will automatically raise them.”

Reality: Godparents do not automatically become guardians. The tradition of naming godparents in a baptismal record—or otherwise making a verbal promise—is not legally binding in a court of law. If legal guardians are not specifically named in your will, the court will appoint them for your minor children. This means a judge who does not know your family dynamic or values could potentially choose someone you would not want to raise your children. It could also cause complicated custody battles among your relatives.

Take action today by having important conversations with family members and close friends about serving as guardians for your children. Protect your children by electing guardians in your estate plan—the only way to ensure that your wishes regarding their care are respected. This simple legal step provides peace of mind and a safeguard for your family’s future.

Anti-Money Laundering Regulations for Residential Real Estate Transfers: FinCEN’s New Reporting Requirement

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Persons involved in real estate closings and settlements are now required to report on certain transfers that the Treasury Department deems high risk for illicit financial activity. Specifically, non-financed transfers of residential real property to legal entities or trusts. The rule aims to in-crease transparency in real estate transactions and help prevent the use of anonymous entities to conceal illicit funds.
Reports are filed through FinCEN’s website and must include the reporting person’s identity, details of the transferor and transferee (including beneficial owners and agents), property details, and consideration paid. Reports are due by the later of 30 days post-closing or the end of the following month, and records must be kept for five years.
Responsibility to file follows a cascade ranking among transaction participants. The highest party in the ranking is the one who files, with first priority falling to the closing/settlement agent listed on the closing/settlement statement. While attorneys are considered “reporting persons,” if a title company is involved in the transfer, their obligation to report would most likely supersede that of the attorney or other real estate professional.
The AMLR includes a reasonable reliance standard which allows the reporting party to rely on information provided to them by others when completing the report, as long as there is no doubt in the accuracy of the information and it’s certified in writing. Violations of the AMLR may result in civil or, if willful, criminal penalties, including fines and imprisonment.
Exemptions to the AMLR reporting requirement include direct purchases by individuals in their own name and many transfers found in common estate planning techniques. No reporting is required for transferees that are public companies, government entities, and regulated financial or insurance institutions (except title insurance companies). Estate planning trusts (revocable trusts established for probate avoidance) are exempt if the transfer is for no consideration and made by a grantor and/or spouse to a trust of which they are the grantors. Other exemptions cover transfers by inheritance, divorce, court order, bankruptcy, or under IRC §1031.

Pet Trusts

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When beloved actress Diane Keaton passed away on October 11, 2025, she left behind a $100 million estate – and ensured her dog, Reggie, would be cared for with the same comfort he enjoyed during her lifetime. Approximately $5 million was placed into a pet trust to guarantee Reggie would live out his days safely, comfortably, and exactly as Diane intended.

Just like any member of the family, pets deserve security, stability, and care. And under Wisconsin law, you can establish a legally valid pet trust to outline exactly how your animals should be cared for when you’re gone. These trusts remain in effect for the lifetime of the pet (or last surviving pet) and ensure funds are used exclusively for their benefit.

While some owners get carried away – Leona Helmsley famously tried to leave $12 million to her dog before a court reduced it to $2 million – most Pet Trusts are modest, thoughtful plans designed to provide comfort, routine, and quality of life.

With 66% of U.S. households owning at least one pet, planning for their future is more important than ever. A Pet Trust allows you to:

  • Appoint a trustee to manage the funds
  • Appoint a caretaker to love and look after your pet
  • Provide detailed instructions for lifestyle, medical care, diet, routine, and more
  • Ensure your wishes are legally enforceable

At Lin Law LLC, we put your whole family first—including the furry ones. If you want the peace of mind that your pet will be cared for according to your standards, we’re here to help you create a Pet Trust tailored to your goals.

The Legal Dispute Over Ted Williams’ Body and The Importance of the Authorization for Final Disposition

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With the World Series concluding this past weekend, we are reminded that even baseball legends can strike out when it comes to estate planning.

Even the best hitters can’t plan for every curveball life throws – but a strong estate plan, drafted by an experienced attorney familiar with your unique circumstances and goals, can bring your batting average up to all-star levels.

After Ted Williams passed away, confusion quickly ensued when two of his children presented a handwritten note expressing Mr. Williams’ desire that his body be cryogenically frozen. The problem? Mr. Williams’ will stated his wish to be cremated and have his ashes scattered over the ocean off the coast of Florida. The litigation that followed left Mr. Williams’ body frozen in controversy – like a batter getting thrown a 12-6 curveball.

Disputes like these can be avoided by properly documenting your wishes and by ensuring consistency across your estate planning documents. Wisconsin permits individuals to create Authorizations for Final Disposition – a special document that designates who will make burial or cremation decisions, and in which you may specify any specific funeral/celebration of life and burial arrangements.

At Lin Law LLC, we help families make sure their wishes are honored, their loved ones are protected, and their legacy is preserved.

Wisconsin Marital Property Law (1986): What You Need to Know

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Did you know that Wisconsin is one of just nine states with marital (community) property laws? Wisconsin joined the small number of states with this treatment of marital property by enacting the Wisconsin Marital Property Act in 1986. Under Wisconsin’s marital property law, nearly all assets and debts acquired during a marriage are considered to be owned equally by both spouses, regardless of whose name is on the paycheck or whose name is on the title. The law is based on the principle that “a sound marriage is a partnership of equals,” recognizing the value of both financial and non-financial contributions to the relationship.
Under Wisconsin’s marital property laws, property’s classification as marital property or individual property depends primarily on whether it was acquired before or after the date of marriage. All income and assets acquired before marriage is individual property, and all income and assets (subject to a few exceptions) acquired after the date of marriage is marital property. The sole exceptions to this classification is property acquired by gift or inheritance, which is always individual property. However, Wisconsin law also provides a presumption that all property is marital property unless it’s ownership can be clearly traced back to before the marriage, or its acquisition by gift or inheritance.
The law also impacts how debt is handled. Debts taken on during the marriage are usually treated as shared, and creditors can pursue both marital and individual property. On the upside, this system can make it easier for a non-earning spouse to qualify for credit.
From an estate planning perspective, the classification of marital property can have tremendous benefits. Spouses receive what’s known as the “double step-up” in basis for income tax purposes on marital property. The “step-up” in basis refers to the increase in a deceased individual’s “basis” for tax purposes that occurs at the time of one’s death, permitting heirs or beneficiaries to sell the property for no or minimal tax liability. In individual property states, property only receives a “step-up” in basis as of the date of its titled owner’s death. And for property owned jointly by spouses, the property receives a “step-up” in basis only to the extent of the deceased spouse’s one-half interest (not the full amount). In marital property states, however, the property receives a full “step-up” in basis at each spouse’s death for all marital property, regardless of whether the asset was titled in one or both spouses’ names.
Couples may also enter into a marital property agreement to opt out of default rules, keep assets separate, or convert individual property into marital property. These agreements must be in writing, signed by both spouses, and based on full financial disclosure.
Understanding how Wisconsin’s marital property laws affect your finances, debt exposure, and estate plan is essential. Whether you’re newly married, planning for the future, or reviewing an existing plan, it’s important to make sure your estate strategy reflects your goals and complies with state law.

What is a Transfer on Death Deed?

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For many Wisconsin families, keeping the home, cottage, or any other real estate in the family is vital, preserving ownership across generations.  Many also desire to spare their loved ones the need to go through probate, which often adds time and costs to administering an estate.  Probate is the public, court-supervised process used to pay a deceased individual’s debts, and distribute any remaining assets to the individual’s heirs.  Without a proper plan, whether these goals will be reached is a gamble.  Depending on your circumstances, a Transfer on Death (TOD) Deed might be a simple, cost-efficient tool to accomplish these goals.

Just like you can do for life insurance policies, and bank, brokerage, and retirement accounts, you can use a TOD Deed to designate one or more beneficiaries to automatically take title to your real estate at your death.  It bypasses probate, keeps expenses low, and requires no ongoing upkeep.  Put plainly, a TOD Deed is a faster and cheaper route that keeps your real estate out of court and spares your loved ones lengthy delays.

How does it work? You keep full ownership during your lifetime, meaning you can sell or refinance at any time.  The beneficiary receives the property automatically at your death.  You must sign the deed, have it notarized, and record it while alive.

Are TOD Deeds right for everyone?  Unfortunately, TOD Deeds aren’t right for every situation.  If you name more than one beneficiary (such as your children), your beneficiaries will all take equal co-ownership of the entire property conveyed.  In order for your beneficiaries to sell the property, unanimous approval is required.  If not all beneficiaries agree, disputes can (and often do) quickly develop.

And what happens if a named beneficiary predeceases you?  Unless you specify otherwise, in most cases a predeceased beneficiary’s ownership interest will pass to their issue by right of representation (i.e. split into equal shares with one share for each living child and each deceased child with living children), further diluting ownership and complicating decision-making.

TOD Deeds also aren’t great if the beneficiary is a minor.  Their ability to take manage and sell the property is diminished and typically requires their legal guardian’s approval.

If any of these situations apply to you, you should consider an estate plan that addresses these more complicated issues, such as a trustor will-based estate plan.  Under either of these estate plans, you have greater flexibility to vary the default survivorship rules, can designate one individual with authority to either sell or distribute the property to your intended beneficiaries, provided that assets distributed to minors or individuals under a certain age will be held in trust for the individual’s benefit, and nominate legal guardians for your minor children.

When to use a TOD Deed? There are certain situations where TOD Deeds work well.  If probate avoidance can be accomplished using TOD Deeds, such as if most of your net worth is comprised of your primary residence, and you have just one intended adult beneficiary, TOD Deeds are the fastest and most cost-effective tool there is.  TOD Deeds are also revocable, meaning you are free to revoke them at any time, and if you sell the property before your death, the TOD Deed automatically becomes void.

Organ Donation: Myths vs. Facts

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Many people support the idea of organ donation — but common misconceptions often get in the way.

Some believe they’re too old or too unhealthy to make a difference. Others worry their medical care might be compromised if they’re listed as a donor, that their family could be left with the costs, or that you can’t have an open casket funeral if you donate your organs. In reality, none of these myths hold up. You’re never too old to be a donor – with consent, doctors assess the condition of your organs, not your age. People with chronic conditions, including diabetes and cancer, have successfully donated organs. Families are never charged for the gift of organ or tissue donation. And, you or your designated agents have control over which organs are ultimately donated – and how they are used.

These decisions are deeply personal — and they’re worth thinking through as part of broader conversations about healthcare wishes and estate planning. Including your organ donation preferences in your advance directives ensures your intentions are clear and honored.
Knowledge leads to better planning — and potentially, to saving lives.

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Understanding Common Types of Debt – An Essential Part of Estate Planning

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Understanding your finances can feel overwhelming. But taking a moment to learn the different types of debt, and the forms they take, can make a big difference. Having a solid understanding lays the foundation for a stronger, more thoughtful estate plan. Don’t let unpaid expenses catch your loved ones off guard. Create clarity, protect your legacy, and make sure nothing is left behind!