Estate Planning Made Simple and How to Handle Family Loans
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode, Sean Pyles and Elizabeth Ayoola tackle two critical financial topics that most people avoid: estate planning and informal lending. They explore how proper estate planning serves as "an act of love and compassion for your family" (04:39), breaking down essential documents like wills, trusts, and power of attorney while sharing their personal experiences creating comprehensive plans. The second half features lending expert Kate Wood discussing family loans and alternative lending options, analyzing a listener's question about the best way to save $82,000 to repay generous parents who funded graduate school (16:26)—revealing both the benefits and relationship risks of borrowing from loved ones rather than traditional lenders.
Speakers
Sean Piles
Certified Financial Planner and co-host of NerdWallet's Smart Money Podcast. Creates content helping people make smarter financial decisions, with expertise in estate planning and investment strategies.
Elizabeth Aiola
Personal finance expert and co-host of NerdWallet's Smart Money Podcast. Has created her own comprehensive estate plan including a revocable trust, and brings practical experience in financial planning for families with young children.
Kate Wood
NerdWallet lending authority and recurring podcast guest. Specializes in alternative lending options, informal lending arrangements, and provides expert analysis on borrowing strategies for consumers navigating non-traditional financial solutions.
Key Takeaways
Review Your Beneficiaries Like a Boss
Block time quarterly to audit primary and contingent beneficiaries across all accounts—retirement, bank, investment, life insurance. Remember: beneficiary designations override your will, and removing that ex or estranged friend takes minutes but prevents years of legal headaches. (09:31)
Estate Planning Is an Act of Love
Reframe the "morbid" estate planning conversation as compassion in action. Having your plan locked down means your grieving family faces fewer decisions, less court drama, and clearer guidance when emotions run high. (04:39)
Document Every Dollar Over $100
Whether lending or borrowing informally, get everything in writing—loan amount, repayment schedule, interest terms, and consequences for default. Even family loans benefit from notarized agreements that protect relationships and provide legal backing. (25:46)
Never Lend What You Can't Afford to Lose
Before extending informal loans to friends or family, stress-test your finances. Can you handle this money disappearing forever? Informal lending lacks credit reporting benefits and can damage relationships if expectations aren't crystal clear from day one. (28:46)
Leverage High-Yield Savings for Medium-Term Goals
For 6-7 year money goals, high-yield savings accounts offer predictable growth with minimal risk. With monthly compounding at 4%, $1,000 monthly deposits could reach $98,000 over seven years—perfect for obligation repayments or planned major expenses. (29:00)
Statistics & Facts
- Only 24% of Americans had a will in 2025, down from 33% in 2022 (caring.com study). (03:46) This represents a significant 9-percentage-point decline in estate planning preparation, highlighting a growing gap in financial preparedness.
- Parents' income or savings covered 38% of college expenses during the 2024-2025 school year, representing the largest share of funding sources (Sallie Mae annual study). (21:39) Parent borrowing covered an additional 11% of college costs, demonstrating the substantial role families play in education financing.
- Federal graduate student loan rates are currently just under 8%, making Jenna's family loan at 3% interest a significant savings compared to traditional lending options. (17:18) This 5-percentage-point difference illustrates the potential financial benefits of informal family lending arrangements.
