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Estate Planning

Wednesday, July 12, 2017

Estate Planning Blog

Many individuals are aware that a will is one way to plan for the distribution of their assets after death. However, a comprehensive estate plan also considers other objectives such as planning for long-term care and asset protection. For this reason, it is essential to consider utilizing an irrevocable trust.

This estate planning tool becomes effective during a person's lifetime, but it cannot be amended or modified. The person making the trust, the grantor, transfers property into the trust permanently. In so doing, the grantor no longer owns property, and a designated trustee owns and manages the assets for the benefit of the beneficiaries.

In short, irrevocable trust provide a number of advantages. First, the property is not subject to estate taxes because the grantor no longer owns it. Moreover, unlike a will, an irrevocable trust is not probated in court. Finally, assets are protected from creditors.

Common Irrevocable Trusts

There are a variety of irrevocable trusts, including:

  • Bypass Trusts -  utilized by married couples to reduce estate taxes when the second spouse dies. In this arrangement, the property of the spouse who dies first is transferred into the trust for the benefit of the surviving spouse. Because he or she does not own it, the property does not become part of this spouse's estate when he or she dies.

  • Charitable Trusts - created to reduce income and estate taxes through a combination of gifting and charitable donations.  For example, charitable remainder trust transfers property into a trust and names a charity as the final beneficiary, but another individual receives income before,  for a certain time period.

  • Life Insurance Trusts - proceeds of life insurance are removed from the estate and ownership of the policy is transferred into the trust. While insurance passes outside of the estate, it is factored into the value of the estate for tax purposes, so this vehicle is designed to minimize estate taxes.

  • Spendthrift Trusts – designed to protect those who may not be able to manage finances on their own. A trustee is named to manage and distribute the funds to the beneficiary or directly to creditors, depending on the terms of the trust.

  • Special needs trusts - designed to protect the public benefits that many special needs individuals receive. Since an inheritance could disqualify a beneficiary from Medicaid, for example, this estate planning tool provides money for additional day to day expenses while preserving the government benefits.

The Takeaway

Irrevocable trusts are essential estate planning tools that can protect an individual's assets, minimize taxes and provide for loved ones. In the end, these objectives can be accomplished with the advice and counsel of an experienced estate planning attorney.

 


Monday, July 10, 2017

I Do, Again: Estate Planning in a Second Marriage


Oscar Wilde famously said, “Marriage is the triumph of imagination over intelligence. Second marriage is the triumph of hope over experience.” If this is true, Americans must be an imaginative and hopeful bunch because the marriage rate remains steady, and Census data has revealed that 40% of all marriages involve at least one partner that is getting remarried after having had a previous partner.

We send our best wishes to all of the happy couples tying the knot this year, along with a reminder that visiting with an estate planning attorney should be near the top of every newlywed’s to-do list. This is particularly true if either of the partners was previously married, or has children from a prior relationship.
Read more . . .


Friday, June 30, 2017

Estate Planning Blog

What is Elder Law?

As the population grows older, many elders must face the difficult challenges of aging, such as declining health, long-term care planning, asset protection and other financial concerns. The practice of elder law is designed to assist seniors with meeting these challenges and give them peace of mind knowing that they will age with dignity.

Long-term Care Planning

The escalating costs of long-term care, including services for both medical and non-medical needs, is a daunting challenge for elders and their loved ones. In some cases, elders may need non-skilled care to assist with daily tasks of living such as dressing, feeding, shopping, and light housekeeping. Alternatively, some elders may require skilled nursing care whether provided at home, or in an assisted living facility or nursing home.

By failing to adequately plan for these needs, the cost of long-term care can easily deplete an elder's savings. A skilled elder law attorney can help explore options such as long-term care insurance, selecting the best skilled nursing facility or qualifying for public benefits such as Social Security and Medicaid.

Medicaid Planning

One option to cover the costs of long-term care is Medicaid, a federal program run by the states that provides medical assistance to low-income individuals, and those who are 65 or older. However, many elders may not qualify because their financial resources exceed the eligibility threshold. One way to protect your home and your assets is by establishing an irrevocable trust known as a Medicaid Trust.

Elder Abuse

Elder abuse, whether physical, or emotional, has been called the crime of the twenty-first century. In addition, financial abuse occurs when an individual takes an elder's property for a wrongful purposes or with intent to defraud. In these situations, an elder law attorney can serve as a dedicated advocate and protect a senior's rights.

Ultimately, an experienced and compassionate attorney can help elders plan for the challenges of aging, preserve their independence, protect their assets and enable them to enjoy their golden years .


Monday, June 12, 2017

Your Will Is Not The Place For Your Funeral & Burial Plans


Contrary to popular belief and a lot of tv shows and movies, most wills do not include funeral plans and burial instructions. And there is a good reason why: most wills aren’t read until after the deceased person has been buried or is otherwise put to rest.

One of the most heartbreaking cases out there involves the family of a veteran that fought amongst themselves for many years over the burial of their father. When he died, they purchased a family plot to bury him and other members of the family in in the future. A few weeks after the funeral, the family started going through their dad’s estate planning documents, only to discover that he had already purchased a plot for himself at a nearby veterans’ cemetery.


Read more . . .


Friday, June 9, 2017

Do I Have To Pay Off My Dead Loved One’s Debts?


Having a loved one die is always hard. But it can be even more difficult to deal with when you are reminded of their absence every time you go to the mailbox. And it can be sort of scary if the mail you are getting consists mostly of bills.

If you are struggling to know what to do with the debt a loved one has left behind, you are not alone. According to recent data from the credit reporting company Experian, the average American dies over $61,000 in debt.
Read more . . .


Friday, June 2, 2017

Responsibilities and Obligations of the Executor/Administrator

Responsibilities and Obligations of the Executor/ Administrator

When a person dies with a will in place, an executor is named as the responsible individual for winding down the decedent's affairs. In situations in which a will has not been prepared, the probate court will appoint an administrator. Whether you have been named  as an executor or administrator, the role comes with certain responsibilities including taking charge of the decedent's assets, notifying beneficiaries and creditors, paying the estate's debts and distributing the property to the beneficiaries.

In some cases, an executor may also be a beneficiary of the will, however he or she must act fairly and in accordance with the provisions of the will. An executor is specifically responsible for:

  • Finding a copy of the will and filing it with the appropriate state court

  • Informing third parties, such as banks and other account holders, of the person’s death

  • Locating assets and identifying debts

  • Providing the court with an inventory of these assets and debts

  • Maintaining any assets until they are disposed of

  • Disposing of assets either through distribution or sale

  • Satisfying any debts

  • Appearing in court on behalf of the estate

Depending on the size of the estate and the way in which the decedent's assets were titled, the will may need to be probated. If the estate must go through s probate proceeding, the executor must file with the court to probate the will and be appointed as the estate's legal representative.

By doing so, the executor can then pay all of the decedent's outstanding debts and distribute the property to the beneficiaries according to the terms of the will. The executor is also is also responsible for filing all federal and state tax returns for the deceased person as well as estate taxes, if any. Lastly, an executor may be entitled to compensation for the time he or she served the estate. If the court names an administrator, this individual will have similar responsibilities.

In the end, being name an executor or appointed as an administrator ultimately means supporting the overall goal of distributing the estate assets according to wishes of the deceased or state law. In either case, an experienced probate or estate planning attorney can help you carry out these duties.


Thursday, May 11, 2017

Irrevocable Trusts in Virginia Explained


What is an irrevocable trust?

Trusts are a vital part of estate planning in Virginia.  Revocable, living trusts are the most common type of trust, but irrevocable trusts offer an alternative to this traditional estate planning tool.  An irrevocable trust is a trust that cannot be revoked or amended by the creator of the trust, with some limited exceptions.
Read more . . .


Sunday, May 7, 2017

Estate Planning Is Not Just for the Rich!


It is a common misconception that estate planning is only something that the extremely wealthy do. While the richer you are, the more you may have at stake, estate planning is really something that everyone should consider.

The process of determining how your assets will be divided and planning for tax implications after you pass is important for everyone, regardless of the overall value of your property. Read more . . .


Thursday, April 27, 2017

Top Five Estate Planning Mistakes

Top Five Estate Planning Mistakes

In spite of the vast amount of financial information that is currently available in the media and via the internet, many people either do not understand estate planning or underestimate its importance. Here's a look at the top five estate planning mistakes that need to be avoided.

1. Not Having an Estate Plan

The most common mistake is not having an estate plan, particularly not creating a will - as many as 64 percent of Americans don't have a will. This basic estate planning tool establishes how an individual's assets will be distributed upon death, and who will receive them. A will is especially important for parents with minor children in that it allows a guardian to be named to care for them if both parents were to die unexpectedly. Without a will, the courts will make decisions according to the state's probate laws, which may not agree with a person's wishes.

2. Failing to Update a Will

For those who have a will in place, a common mistake is to tuck it away in a drawer and be done with it. Creating a will is not a "once and done" matter as it needs to updated periodically, however. There are changes that occur during a person's lifetime, such as buying a home, getting married, having children, getting divorced - and remarried, that need to be accurately reflected in an updated will. Depending on the circumstances, a will should be reviewed every two years.

3. Not Planning for Disability

While no one likes to think about becoming ill or getting injured, an unexpected long-term disability can have devastating consequences on an individual's financial and personal affairs. It is essential to create a durable power of attorney to designate an individual to manage your finances if you are unable to do so. In addition, a power of attorney for healthcare  - or healthcare proxy, allows you to name a trusted relative or friend to make decisions about the type of care you prefer to receive when you cannot speak for yourself.

4. Naming Incapable Heirs

People often take for granted that their loved ones are capable of managing an inheritance. There are cases, however, when a beneficiary may not understand financial matters or be irresponsible with money. In these situations, a will can appoint an professional to supervise these assets, or in the alternative a "spendthrift trust" can be put in place.

5. Choosing the Wrong Executor

Many individuals designate a close relative or trusted friend to act as executor, but fail to consider whether he or she has the capacity and integrity to take on this role. By choosing the wrong executor, your will could be contested, leading to unnecessary delays, costs and lingering acrimony among surviving family members.

The Takeaway

In the end, estate planning is really about getting your affairs in order. By engaging the services of an experienced trusts and estates attorney, you can avoid these common mistakes, protect your assets and provide for your loved ones.

 


Sunday, April 9, 2017

Every Estate Fight Is “Ugly”


Whenever a celebrity dies, you can almost guarantee that there will soon be headlines about the “ugly” estate fight brewing between his or her relatives. Just in the last year we heard these sorts of stories about the pop icon Prince, blues legend B.B. King, and conservative culture warrior Phyllis Schlafly.

But here’s a little secret.
Read more . . .


Thursday, April 6, 2017

The Importance Of Finding An Estate Administrator You Can Trust


We all know “you can’t take it with you,” but that doesn’t mean that everyone does a good job putting together an estate plan, or ensuring that the plan they have put so much thought into will actually be carried out. It is this second aspect of the estate planning process, the selection of an estate administrator, that gives a lot of clients trouble.

What Is An Estate Administrator?

An estate administrator is the person tasked with carrying out the wishes of the deceased. They have to pass on items to family members, make sure the estate’s bills are paid, and handle big issues like property sales.

If the estate plan includes a will, or a dispute over a non-will-based estate plan arises, the estate administrator will have to go to court to sort things out.
Read more . . .


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575 Lynnhaven Parkway, Suite 301 , Virginia Beach, VA 23452 | Phone: 757-215-4051
5425 Discovery Park Blvd., Suite 101, Williamsburg, VA 23188 | Phone: 757-215-4051