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WHAT IS AN “I LOVE YOU” WILL?

Davidov Law Group

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An “I love you” will is a very simple will wherein all assets go to the surviving spouse and at the spouse’s death, to the children. Although the “I love you” will is commonly used by general practitioners and may make sense on the surface, but to clients it holds many perils.

Benefits of the “I love you” will

  • It’s inexpensive to create.
  • You can appoint guardians for minor children and an executor.

Perils of the “I love you” will

  • It doesn’t control most property owned by married couples. It doesn’t control jointly owned property, beneficiary designation property, in trust for property, or payment on death or transfer on death property.
  • It doesn’t include federal estate tax planning.
  • It doesn’t include incapacity planning.
  • There are no provisions for asset protection for beneficiaries.
  • The will guarantees probate which is expensive, time consuming, and public.
  • There is no pet planning.
  • Children will likely be unintentionally disinherited upon remarriage.
  • If doesn’t address blended family issues.
  • It provides no guidance.

A better estate planning solution

For a few folks, the “I love you” will is appropriate. For most folks a revocable living trust would be a better fit. A revocable living trust works in conjunction with a pour-over will. The pour-over-will is a special will that names guardians, appoints an executor, and names the trust as its only beneficiary.

Revocable living trust benefits

  • Controls all property funded into the trust.
  • Includes federal estate tax planning.
  • Includes incapacity planning.
  • Provides asset protection for lifetime beneficiary trusts.
  • Avoids probate when fully funded.
  • May include pet planning.
  • Avoids unintentional disinheritance.
  • Can provide for second spouses and children from a first marriage.
  • Provides explicit instruction as to what your trustee should do and when she should do it.

If you have questions regarding the use of an “I love you” will, consult with a qualified estate planning attorney.

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Instead of choosing an assisted living or long term care facility, many families decide to share caregiver responsibilities in order to help out a loved one with his or her needs at home. It can be extremely frustrating and stressful serving as a caregiver.

Take a look at some of the tips below for advice on how to be a good caregiver. If you’d like to discuss assisted living and long term care or caregiver options, meet with an elder law attorney.

  • Ask for help. It’s important to share the responsibilities of being a caregiver. With the support of family and friends, you can help to care for your loved one more easily. Don’t be afraid to ask for assistance!
  • Give yourself breaks. It’s important to remember to take care of yourself. You won’t be able to handle your caregiver responsibilities well if you’re stressed out all of the time. Schedule breaks in your day to focus on yourself.
  • Allow your loved one to handle some tasks on his or her own. Your loved one may still be able to handle some things independently. This will allow your loved one to feel as if he or she is able to do some things independently. This also includes allowing your loved one to make some decisions.
  • Join a support group. There are many caregiver support groups. You can seek the advice and support of other caregivers. You can also learn new ways to handle your many responsibilities.
  • Be involved in your loved one’s health. It’s a good idea to ask your loved one’s doctor about care advice. Learning about a specific illness or disease can help you assist your loved one more easily.

If you have additional questions about serving as a caregiver or if you need long term care advice, consult with a qualified estate planning attorney.

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Probate terms can be confusing because you don’t use them in every day conversation.  Probate terms are likely additionally confusing because you are exposed to them in a time of great loss and mourning.  When a loved one dies, it is a difficult time to be learning anything, let alone legal lingo.

Here are some probate terms.  We find it helpful for clients to have information in writing and to be able to refer back to it as needed.

  • Probate is the court process of validating a will.  It also refers to the administration or winding down of a decedent’s estate.
  • Executor is the person who is in charge of winding down the decedent’s financial life and settling the estate.
  • Administrator is the person who carries out the executor’s duties if the decedent died without a will.  The court appoints the administrator.
  • Per stirpes is a form of distribution to beneficiaries.  If a beneficiary is deceased, his children step into his shoes, so to speak, and inherit his share.
  • Bequest is a gift of personal property in a will.
  • Devise is a gift of real estate in a will.
  • Beneficiaries are those people named in a will who are entitled to receive assets.
  • Administration expenses are probate expenses which include legal fees, accounting fees, appraisal fees, asset maintenance fees, disposition fees, and distribution fees.
  • Codicil is an amendment or revision to a will
  • Federal estate tax is a tax on the transfer of wealth.  It is based on the value of the decedent’s estate at death.
  • Federal estate tax return is also known as the 706.  The federal estate tax return must be filed if the decedent had a federally taxable estate and/or to preserve the right of the surviving spouse to use the decedent’s unused unified credit amount.

If you have questions about these probate terms, consult with a qualified estate planning attorney.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

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One of the most common misconceptions among retirees is that if they have Medicare, they are covered for stays in nursing homes. Though Medicare will pay for short-term care in a nursing facility, you will not be covered for long-term care. One of the reasons why so many people make this mistake is because of the fact that Medicaid does pay for long term care, but this is true only for those qualified to receive these benefits. Medicaid is an entirely different program than Medicare.

When it comes to nursing facilities, Medicare Part A will pay for inpatient care, but before they will cover this expense, the patient must have spent at least three days in a hospital prior to be admitted to the nursing facility. No matter how long a patient must reside in a nursing facility, Medicare will only cover the first 100 days.

Medicare will cover 100% of the cost, but only for the first 20 days. After those 20 days, the remainder of the 100 days is only covered up to 80%. This is the reason why so many seniors also have another form of insurance.

Medicaid will cover long term care in a nursing facility, but there are some major restrictions when it comes to qualifying for these benefits. You must be low income and have less than $2,000 in assets. You can have up to $3,000 if you are married. There are some exemptions, such as an automobile and a home, if your spouse is still living in the home. You should be aware that in many cases the state could put a claim against the home after your death to recoup some of the cost of your care. There are methods of getting around this, but it will take a solid estate plan that is drawn up by an experienced attorney.

If there is any possibility that you will not be able to cover the cost of long-term care, you will want to prepare for this chance now with long term care insurance and a solid estate plan.

Davidov Law Group is a member of the American Academy of Estate Planning Attorneys.

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There are various things that you’ll likely want to consider when entering the estate planning process. It’s important to make sure that you have proper plan in place so that all of your needs, as well as those of your family, are met. If you are new to estate planning, look at the following list of do’s and don’ts. If you have questions about your individual needs, meet with a qualified estate planning attorney to discuss your options.

Do create a plan early in life. Many people put off their planning and then never get the chance to do so. If you’re age 18 or older, you need your own estate plan.

Do include medical planning in your estate plan. This will protect you during illness and disability.

Do create a will. This will allow your assets to be distributed as you wish and will allow you to appoint a guardian to care for your minor children.

Don’t attempt to do your own estate planning. You can make serious errors that will have negative effects on your estate and your life.

Don’t forget to review and update your plan. Your plan should be reviewed every 3 to 5 years, or sooner if life changes occur. This also includes updating beneficiary designations for assets such as your retirement account and life insurance policy.

Do choose responsible and trustworthy trusted helpers. This includes possible guardians, executors, trustees, and power of attorney agents. You want to make sure that your affairs are handled appropriately and with care.

Don’t forget to tell your loved ones that you’ve taken the time to plan. An estate plan is only effective if your loved ones know that it exists.

Do include funeral planning in your estate planning. This can ensure that your funeral wishes are followed as well as help to minimize family disagreements.

Do ask your attorney questions about your plan. It’s important to make sure that you understand all aspects of your estate planning!

Don’t attempt to change your estate plan before seeking professional advice. This will help to minimize mistakes. Don’t ever write on your original documents.

If you are ready to make your estate planning goals happen, consult with a qualified estate planning attorney.

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Are you aware that a will can be challenged? If something was done wrong when the will was created, you may find the need to contest it. There are various reasons why a will may not be valid.. If you have additional questions about how to contest a will, consult with an estate planning attorney.

  • A will must be signed pursuant to state law. If a will was not signed by the testator (i.e. the person making the will) and witnesses according to the state laws, it can be considered invalid. Many wills are contested for execution errors.
  • The testator must have had legal capacity to sign the will. A testator must understand what he or she is doing when signing a will, be able to identify the natural beneficiaries of his bounty, and the extent of his assets. Laws are very strict regarding this aspect of a will contest. It’s important to note that just because a person shows signs of dementia, does not mean that he or she did not have the legal capacity to sign a will.
  • A testator should not be influenced into creating a will or into including specific terms. If someone put extreme pressure on the testator so that he or she created a will in a specific way, this may be grounds for a will contest. It’s important to note that an individual nagging about getting a will is not enough for a successful will contest.
  • A will is invalid if fraud occurred. If a will has been subject to fraudulent activity, it may be contested. This may include changing terms of a will or adding new pages.

If you feel that a will is invalid, it’s important to seek legal guidance. If you have questions about how to contest a will, consult with a qualified estate planning attorney.

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Alzheimer’s disease is a devastating illness. Those that are diagnosed with this disease will face a lot of different issues. Along with treatment and the financial stress that tend to come with this disease, there are also a lot of legal issues that must be dealt with.

The importance of estate planning for the Alzheimer’s patient cannot be stressed enough. It is essential that estate-planning documents be dealt with as soon as a person has been diagnosed, but even better if these issues have already been dealt with. If these issues are not taken care of early, your loved one will not be in a state of mind to sign estate planning documents and they would be considered void.

Some of the estate planning documents that your loved one will need include a Durable Power of Attorney so that their appointed representative can handle their legal and financial affairs once they are no longer able to do this for themselves. Another important document is the Health Care Proxy; this document allows someone to make medical decisions for them if they are incapacitated.

Additional documents that your loved one will need include the Living Will; with this document they can leave instructions for their end of life treatment. Of course it is also important to have a will and possibly a Living Trust with a successor trustee that can manage that trust when your loved one no longer can.

If there is a possibility that your loved one will be diagnosed with Alzheimer’s, or if they have recently been diagnosed, you will want to contact an estate planning attorney as soon as possible. Although your family will be dealing with a lot of different issues during this time, and estate planning may not be at the top of your list, it is extremely important that you take care of this now.

A qualified estate-planning attorney can ensure that all the legal loose ends are tied up so that you can concentrate on making sure that your loved one receives the care that they need.

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It is difficult to stress the importance of making sure that all of the loose ends are tied up after you have gone through a divorce and it is finalized. Though it is important for all areas of your life, it is especially important when it comes to your estate plan.

In most cases a former spouse will automatically be exempt from inheriting, even if you were to forget to update your will. The problem with this is that the assets that you intended for that spouse to inherit will then not have anyone named as the beneficiary. What happens in this case is that the court will decide who should inherit those assets. If there is someone that you would want to inherit the assets that you left to your former spouse, it is best to update your will as soon as your divorce is final.

Another thing that you’ll want to pay close attention to after you are divorced is your real estate, retirement accounts and life insurance. You will want to ensure that all of the assets that you are awarded in your divorce have been titled correctly; it is not a good idea to wait to take your spouse’s name off of the titled assets. If something were to happen to you before you took care of this, your former spouse would have full legal right to these assets.

Jointly owned real estate that is titled in a way that allows the property to pass to the other owner automatically is not subject to probate so there will be no way in which your heirs could contest the transfer of the property to your former spouse. The same is true for financial accounts, retirement accounts, and life insurance where your former spouse is listed as the beneficiary.

When you are putting your life back together after a divorce it can be easy to forget all of these technicalities, but it is essential that you do. Make updating your accounts; policies and estate plan a part of the process of reforming your life. This way you can be sure that the person that you would like to inherit your assets is the one that does.

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any people think that an estate planning attorney’s services are limited to document creation and probate guidance. But, your estate planning attorney is highly trained and experienced; and, therefore, is uniquely qualified to offer additional related services.

  • Family meetings:

If you would like to have a multigenerational family meeting, your estate planning attorney would be happy to act as host. He can guide the meeting, explaining general estate planning concepts, answering questions, and addressing concerns.

Be sure to let your estate planning attorney know how much detail you feel is appropriate to disclose about your particular plan or financial numbers.

In the alternative, if you want to host your family meeting, your estate planning attorney can give you a bullet list of topics for discussion.

  • Seminars:

Your estate planning attorney is used to teaching laypersons and professionals. If you need a seminar speaker, your estate planning attorney can help.

In addition, your estate planning attorney may hold seminars as part of his practice. Many clients find trustee training and estate planning seminars very helpful. They often bring those trusted helpers named in their plans such as trustees, executors, power of attorney agents, and guardians to the meetings.

  • Referrals to allied professionals:

Your estate planning attorney works closely with financial advisors, CPAs, and insurance professionals. He can refer you to professionals that would be a good fit for you and serve as quarterback of your estate planning team. After all, estate planning is not a lone ranger sport.

In addition, clients often need referrals to real estate agents, real estate appraisers, asset appraisers, charitable entity directors, bankers, mortgage brokers, in home care providers, geriatric social workers, and the like.

Your estate planning attorney has a wealth of contacts and is happy to share them with you.