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YOUR FAMILY MAY NEED TO MAKE SPECIAL ESTATE PLANNING PROVISIONS

Estate Planning

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Every family is unique and should take the time to carefully consider their estate planning needs. Taking the time to understand your own family’s needs will allow you to have a better plan in place. Take a look at the following considerations, to see how you can improve your estate planning. If you have any questions, or if you’re ready to start your estate planning affairs, contact an estate planning attorney.

  • Do you have young children? If so, you need to make sure that you have a plan in place for their protection. This includes choosing a guardian so they are always cared for (i.e. during any incapacity and after death.) You should also consider the assets that you leave behind (i.e. you may need life insurance.) You may want to utilize a trust so that you can ensure that the assets will be protected and used responsibly (i.e. minors can’t inherit outright and all beneficiaries need asset protection.)
  • Do you have a family member with special needs? You will likely want to make sure that the assets that you leave for your loved one are protected. You can use special planning techniques so that you’re able to contribute to your loved one’s care without sacrificing his or her ability to take advantage of Government benefits.
  • Do you have a family member who is unable to manage his or her finances? You can utilize estate planning techniques that allow you to protect the assets that you leave behind. This can ensure that the assets are used for the right reason, and that your loved one is able to benefit in the right ways.

These are considerations that you will want to think through. An estate planning attorney can work with you to fully understand your family’s needs. You will be able to have the perfect plan in place for your entire family.

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It’s important to take the time to handle your estate planning, so all of your needs are met throughout life. Many people put off their planning because of fears or because they feel they don’t have enough time. It’s essential to plan as soon as possible. Take a look at the information below, to better understand the 5 reasons to begin planning.

Plan for future expenses. With an estate plan, you’re able to plan for future expenses. This may include proper retirement planning, college planning, or it may also include purchasing long term care insurance. This can help you have a plan in place so that you don’t have to stress about future needs and expenses. Without a plan, you may live a life full of worry, and may be forced to spend a lot more money on your needs.

Have a greater peace of mind. By creating your plan, you will be able to eliminate some of the fears about the future. Having a plan in place gives you greater peace of mind, and allows your loved ones to feel fewer anxieties about the future. With a plan in place, your loved ones will know that you have handled the important responsibility of planning and that their needs will always be met.

Have control over how your assets are distributed. With a plan, you’re able to have full control over your assets and how they’re distributed. You may choose to give your assets to your loved ones, or you may even choose to donate to a charity or other special cause. Many people enjoy planning out how their assets will be distributed. If you don’t have a plan in place, you have no say in this important matter. Instead, your state’s laws will determine how your affairs are handled.

Now is the time to create your plan! If you have any questions, or if you’d like to begin your estate planning, consult with a qualified estate planning attorney.

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Many people put off their estate planning because of the fears that they have.  These fears should not stop you from doing your important planning tasks.  Not having a plan in place will mean that you and your family are unprepared for the future. Take a look at the information below to better understand some common fears.  If you have any questions about the planning process, or if you’d like to begin your estate planning, contact an estate planning attorney.

  • I’m afraid that estate planning is too expensive. While creating your estate plan is an investment, it should not keep you from planning.   It’s beneficial to work with an experienced attorney so that you have a plan that meets your individual needs.  Know that you will be investing in your future and that any tax related advice is tax deductible on your 1040!
  • I don’t want to think about death. No one likes to think about illness, disability, or death. Unfortunately, these are topics that must be discussed during your planning.  Know that by including these difficult issues in your planning, you will be making steps so that you and your family are prepared for the unexpected.
  • The planning process is too difficult and confusing. With the help of an attorney, you will be able to accomplish all or most of your estate planning goals. Estate planning can be difficult to do on your own, but if you work with an experienced attorney, you will feel more comfortable. Your attorney will walk you throughout all aspects of your plan so that you understand your options and decisions.

Don’t let estate planning scare you.  Take the time to handle your affairs so that you’re able to be prepared for all of life’s difficulties and blessings.  If you have any questions about your estate planning needs, or if you’d like to begin your estate planning, 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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When creating your estate plan, it’s a good idea to discuss your wishes and goals with your loved ones. Doing so will explain your actions and can limit conflicts in the future. Take a look at the information below to better understand the importance of communicating with your loved ones about your estate planning choices.

Many people don’t take the time to explain their actions after creating an estate plan. This can lead to family disagreements that may last a lifetime. Take a look at the following example:

When creating their estate plan, Eric and Janet decided to leave their assets to their adult children, unequally. This did so because they felt that each child had different needs. They wanted each child to benefit in a unique way. Several years later, Eric and Janet died within a few months of each other. After they both died, the children continuously fought with one another because each child felt that their inheritances had been unfair. This led to great conflict and created a lifelong problem between siblings.

If Eric and Janet had taken the time to discuss their decisions with their children, there may have been less anger and confusion when they died. If you’re making a choice that you feel may be questioned, it’s probably a good idea to thoroughly explain your intentions. Remember that money equals love in the eyes of all human beings, whether we can admit it or not.

Many family disagreements occur after the death of a loved one. This is often because of how affairs were handled after the death or how inheritances were received. Take the time to carefully consider your planning choices and decide if it would be beneficial to discuss your choices with your family. It usually is.

If you have any questions about communication your estate plan to your loved ones, consult with a qualified estate planning attorney.

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We’ve found that our clients benefit from reviewing our “9 Important Trust Planning Terms” so we’re sharing it with you as well.  If you have any trust planning questions or concerns, be sure to consult with a qualified trust planning – estate planning attorney.

Trust

A trust is a legal agreement, technically, a contract.  The trust is like an instruction book that gives guidance to the trustee as to how to carry out his duties.

Irrevocable Trust

A trust that, in general, cannot be changed (without court order or trust protector intervention.)  Examples of irrevocable trusts would include insurance trusts, children’s trusts, spousal trusts, qualified residence trusts, and charitable trusts.  A revocable trust becomes irrevocable upon the disability or death of the trust maker.

Revocable Trust

A trust that can be changed anytime while the trust maker is alive and well.  The trust maker retains full control over assets and trust provisions because he serves as trustee.  A revocable trust becomes irrevocable if the trust maker becomes incapacitated or dies.

Trustee

The individual or corporate fiduciary (i.e. bank or trust company) that holds legal title to trust assets and carries out the instructions in the trust.

Testamentary Trust

A trust created under a will typically for a surviving spouse and children.

Trustee Powers

The trust provisions (i.e. instructions) that define what the trustee must, may, and cannot do.

Totten Trust

A “totten trust” is a pay-on-death (POD) or transfer-on-death (TOD) bank account.

Trust Corpus

The assets held in the name of the trust are called “trust corpus” or “trust res.”

Trust Merger

When the beneficiary and the trustee are the same individual, it is called a “trust merger.”  It’s as if no trust exists.  This is why it’s imperative that your beneficiary serves with a co-trustee to retain asset protection.

If you’re interested in trust planning or have estate planning questions, be sure to consult a trust planning – estate planning attorney.

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

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When you take the time to design your will with your estate planning attorney, you must make the difficult decision of appointing a guardian for the care of your minor children. Many parents struggle with this decision. It’s a good idea to take extra care when making this choice, so that you avoid future conflict. Take a look at some of the tips below for advice on how to avoid conflict when choosing a guardian.

  • What if you’re not sure how your children will feel about your decision?

If your children are old enough, it’s a good idea to include them in discussions related to your guardian selection. You not only want to assure your children that they will always be loved and protected, but you also want to make sure that they will get along with their guardians. Take the time to listen to their opinions on the matter.

  • What if your guardian lives far away?

If you decide to appoint a guardian who lives out of town, it’s a good idea to also name a temporary guardian. This will allow your children to be protected before your guardian arrives. Your children will be cared for by the temporary guardian, until your permanent guardian is able to get to your children. This avoids your children being placed into foster care in the event of an emergency.

  • What if the guardian that you choose is bad with money?

If you’re afraid that your guardian will be unable to manage the money that you leave, you should consider naming another individual to manage these assets. This will allow your guardian to only provide care and physical support, while the other individual will handle financial decisions for your children.

Choosing a guardian is the most important decisions that you will have to make when creating your will. By taking a little extra care, you can avoid future conflicts before they arise. Take a look at our next blog post tomorrow (part 2 of 2), to learn more ways to avoid these conflicts.

If you have any questions, or if you’d like to create your will, consult with a qualified estate planning attorney.

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We explain to clients that not only do they need to have the legal documents that form an estate plan in place, they also need to take further steps to ensure that their estate plan works.

Your estate plan works if it does what you wanted it to do when you created it.  In other words, the picture in your mind matches up with the picture of what really happens when you’re up there sitting on the cloud, looking down at us.

1. Talk With Your Family.

Let your family know that you have done your estate planning.  Give them the contact information for your estate planning attorney and other professional advisors such as your CPA, financial advisor, and insurance agent.

Tell your family where you keep your estate planning documents and make sure that they have access when needed.

2.  Organize.

Organize your financial paperwork and keep it in labeled files with your estate planning documents.  Don’t make your loved ones play hide and seek.  It’s too stressful and time consuming, and things are easy to miss.

Be sure that you write down online accounts (with account numbers, user names, and passwords) and the combination for any fire safes.  Be sure to include the safe deposit key as well.

3.  Use Docubank

Use Docubank or some other reputable document storage service so that your health care documents such as your living will and health care power of attorney are always available when you need them.

4. Proper Asset Ownership

Be sure that you own your assets properly.  For example, you will only avoid probate if your assets are funded into your trust.  And, another example, your will only controls assets in your individual name.

5. Update Every Three To Five Years

Review your estate plan, beneficiary designations, and asset ownership every three to five years to ensure that your plan matches your current needs and the current law.

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

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Many people have their own thoughts and ideas regarding estate planning and the importance of planning.  It’s important to make sure that you understand the truths associated with estate planning so that you can properly prepare for the future.  Take a look at some common estate planning myths below to learn more about estate planning misconceptions.  If you have any questions, or if you’d like to begin your estate planning, meet with an estate planning attorney.

  • I’m too young to plan.  No one is too young to create an estate plan.  Everyone age 18 or older should have a plan in place.  If you continue to put off your planning for a later date, you may not be prepared for life’s unexpected events.  Don’t think that you’re too young or too poor to do planning.
  • Once I plan, I am set for life.  Estate planning is not something that should only be done once.  As you go through life, your needs will change.  It’s important to regularly review your estate plan with your attorney so that you can make sure that it still meets your individual needs and goals.  When you come in for an update, your estate planning attorney will be able to notify you of law changes that may effect your planning.
  • I should do my own planning to save money.  While it is legal to do your own planning; in practicality, doing your own planning can have costly effects.  It is in your best interests to work with an estate planning attorney so that your plan is legal and error-free.  Additionally, an attorney will be able to look at your individual needs and create a customized plan that works best for you.  Don’t try to do your own planning in order to save some money.

Don’t make your own estate planning assumptions.  Instead, make sure that you’re properly informed about your needs as well as the estate planning process.  If you’re ready to begin your estate planning, 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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When creating your will, you must appoint an executor to handle your estate’s affairs during the probate process.  This person will be helping you and your loved ones in a number of ways.  Are you unsure of the duties that your executor will face during the probate process?

Take a look at some of the information below to learn more.  If you have any questions about probate or your executor’s duties, meet with an estate planning – probate attorney.

  • Your executor will be responsible for starting the probate process.  He or she will need to submit documentation to the probate court in order to start the proceedings.
  • Your executor must keep in contact with beneficiaries and alert them of their inheritances.  He or she will also have to notify creditors of your death.
  • Your executor will need to locate all of your assets.  It’s a good idea to provide some instruction to your executor ahead of time.  He or she will also have to carefully manage these assets during the process.
  • Your executor must attend all court appearances and follow the instructions that are outlined by the probate judge.  Your executor will be responsible for continuously reporting to the court.
  • Your executor must pay all expenses.  This includes past debts as well as estate expenses such as attorney fees and court costs.
  • Your executor must file and pay appropriate taxes.  He or she may need to get the help of a professional to ensure that the taxes are done correctly.
  • Your executor must distribute the assets to beneficiaries.  He or she will follow the instructions in the will and will be supervised by the probate court.

When choosing an executor for your estate, it’s important to understand the duties as well as the probate process.  You want to make sure that your executor is able to handle all of the duties so that your estate is handled with care.

If you have any questions about choosing an executor or understanding the probate process, consult with a qualified estate planning attorney.

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