Month: May 2020

It is a common misconception that financial management and estate planning are reserved for the wealthy. Regardless of how much you have in the bank, you and your family can benefit from planning ahead for the future. If you fail to do so, you could leave your family scrambling if you’re suddenly incapacitated. When you are on a fixed income, finances matter more than ever – for example, your car and rent payments must still be made, even if you have suffered serious health problems and can no longer work. Plan ahead to make the best out of the worst case scenario.

Powers of Attorney

Should you be involved in a life-changing accident and end up unconscious in the hospital, who will make decisions on your behalf? It is a question that many people fail to consider, and once you are incapacitated, it’s too late. An experienced estate planning lawyer can help you execute a medical power of attorney so that your wishes are respected should you become incapacitated. The documentation will also point to a specific person who can make important medical choices for you. A living will, sometimes referred to as an Advanced Directive, can also be executed with the medical power of attorney to allow you to specifically state your wishes when it comes to your end of life medical treatment.

It is also important that you have a financial power of attorney prepared. Anyone who travels frequently can benefit from having a trusted friend or family member named as their agent to act on their behalf regarding finances and property management. Of course, should you become incapacitated, designating someone as your power of attorney can also be incredibly useful to ensure that your bills and other legal and financial obligations are met.

Guardians for Minors

When preparing for the future, it’s also essential to consider who you’d like to appoint as guardian for your minor children in case you’re unable to care for them yourself due to incapacity or death. While this outcome can be difficult to think about, it’s important that your kids have security during this difficult time. Without a will, the guardian will be selected by the courts. This person may not be your first choice to care for your children, so it’s important to have your wishes documented.

Precious Keepsakes

Wills or trusts are also worthwhile if you have specific wishes for your material possessions and who receives them. The value of a beloved heirloom may not be monetary: In many cases, the keepsakes we pass down through the generations aren’t worth a lot of money but possess a great deal of sentimental value. Without a will or trust in place, the fate of your treasured possessions is in question. Your heirs will be forced to decide among themselves how to divide items up “evenly.” When used along with a will or trust, a personal property memorandum allows you to dictate who will receive your most precious keepsakes. Another benefit of the personal property memorandum is that you are able to change the document as often as you want without having to update the will or trust.

While you might not have ever considered an estate plan and what it might entail, it’s worth meeting with a trusted estate planning attorney to discuss ways to prepare for your future. Regardless of your income or net worth, it’s always a good idea to have a plan in place to protect yourself, your loved ones, and the things you hold most dear in life.

With the number of online and do-it-yourself (DIY) legal providers continuing to grow and advertise heavily, you may be wondering if you could do your estate planning with the help of these forms. The advertising is seductive. Ads say, “attorneys use similar forms,” “the cost is significantly less than hiring an attorney,” and “many of these websites and kits are created by attorneys.” Most folks think their estates are not complicated and many think forms are forms – and – attorneys just charge for forms, right?

Wrong.

All estate planning attorneys know that DIY estate planning is dangerous and those same attorneys make more money cleaning up someone’s DIY mess than they charge for an estate plan that works in the first place.

• While completing the forms may seem easy and straightforward, a single mistake or omission can have far reaching implications that only come to light after you have become incapacitated or died.
• With you not here to explain your intentions, your heirs may end up disappointed and confused; and they could end up paying much more in legal help to sort things out after the fact than it would have cost in the first place.

The results of DIY are tragic. Good people fall for the “estate planning is just a form” and they said they have attorneys on staff.

• But, we’ve seen folks accidentally disinherit their beloved children, pass assets outright to a drug-addicted beneficiary, and create documents that have no legal validity or don’t control their assets.
• We’ve even seen young children with no guardians named at the mercy of the court to determine their future.

It’s sad and frustrating. DIY companies mislead good people like you to make a few bucks; the results, often chaos and pain.

7 Factors Those Contemplating the DIY Route Should Consider

1. Legal Expertise. Experienced estate planning attorneys have the technical expertise to draft documents correctly so they are legally valid and reflect your wishes. Yes, they likely start with pre-drafted forms, but they know what language to bring in as well as what to change and how to change it to make your plan work the way you want. They also understand the technical terms and legal requirements of your state. Laws vary greatly from state to state; and, a DIY program or kit may not tell you everything you need to know to prevent your plan from being thrown out by the court or failing to carry out your wishes.
2. Counseling. Attorneys are called “counselors at law” for a reason. Estate planning attorneys counsel families and they have seen the results of both proper and improper planning. An experienced attorney can guide you with delicate decisions, including who should be the guardian of your minor children; how to provide for a child or elderly parent who has special needs without interrupting valuable government benefits; how to provide for your children fairly (which may not be equally); and how you can protect an inheritance from creditors and irresponsible spending.
3. Explanation of Intentions. If there is any confusion as to what your intentions were after you are incapacitated or gone, the attorney, who counseled you, will be able to explain what you wanted. This unbiased interpretation from someone who does not stand to benefit from your plan can help avoid costly litigation by your beneficiaries, keep peace in your family, and maintain the validity of your documents.
4. Coordination of Assets. A will only controls assets that are titled in your individual name. You probably have other assets that are controlled by a contract, joint ownership, and/or beneficiary designations; these include IRAs, 401(k)s, joint bank accounts, real estate, and life insurance. A will does not control these assets. An estate planning attorney will know how to coordinate your assets and estate plan so that your assets are distributed as you wish.
5. Tax Planning. The federal government and many states have their own death or inheritance tax. State taxes often kick in at much lower exemptions than the federal tax. Careful professional planning is a must in order to avoid paying too much federal and/or state tax – and probate fees.
6. Unmarried Couples. Being married creates rights and privileges under the law. If you’re not married, you need to create contracts and documents that will protect you and your partner. Because laws are frequently changing and vary greatly from state to state, it’s vital to have updated advice from a competent estate planning attorney. Without proper planning, many rights may be limited for unmarried cohabitants. Providing for your pets may also be very important to you.
7. Complexity and Cost. Many people think their estate planning will be simple. But the reality is, most folks discover they do need some personalized planning…and you may not know that without the guidance and counseling of an estate planning attorney. It is far better to spend a little more now and make sure your plan is created correctly than to try to save a few dollars and have things turn out badly later. You won’t be around then to straighten things out.

Often a DIY estate plan is worse than no plan at all, but don’t let that discourage you. You wouldn’t participate in DIY surgery so forget the DIY law; the lawyers who work for those companies don’t represent you and they are not your fiduciary; they represent the company for whom they work. Only a lawyer you hire individually, usually with a written engagement agreement, is your fiduciary and must always act in your best interests.

Though your first priority needs to be a plan that protects you and your family, if payment is a concern, we will work with you. We have levels of planning to fit a variety of budgets as well as payment plans. We invite you to call our office right now to get you and your family truly protected.

Discovering your ancestry can be both fun and fascinating. At-home DNA tests have grown in popularity in recent years. Often given as a unique gift for loved ones, the kits reveal details about our individual and collective pasts. Unfortunately, these tests aren’t all fun and games. When a test reveals an unexpected relative or biological child, your estate plan may need updating.

If you do not have a will, a newly discovered biological child could be entitled to inherit your assets just like your other children. This could spell serious trouble for your known-family after your passing. Without proper planning, a person with whom you have no relationship could end up with the same inheritance as your other children.

Even with a will, a newly discovered biological child may be able to claim a share of your assets under the pretermitted heir rules. A pretermitted heir is someone who has not been mentioned or specifically left anything in a will. Regardless of being left out, such “heir” may still be able to demand their legal share under the state laws of distribution and descent.

Genealogy isn’t the straight-forward hobby it once was. If you decide to take a DNA test, it’s important to be aware of the risks. We may be used to our medical information staying private, but commercial DNA testing companies are not subject to the same privacy laws that hospitals must obey. As soon as you send your DNA off for testing, it becomes part of a database regulated by the company behind the kit. These companies can volunteer their database for all kinds of unexpected uses. Police, pharmaceutical companies, and app developers are all hungry for this kind of data.

While it’s never a good idea to let fear guide your decision-making process, it’s a good idea to know exactly what you are getting into when taking these DNA tests. Even if you are certain you don’t have an unknown child to worry about, these tests can bring about all kinds of unexpected legal consequences. With the proper planning, though, you can rest easy knowing your assets are protected.

If you’re concerned about your estate planning after taking a home DNA test, schedule an appointment to meet with us as soon as possible. We can help you formally outline the specific individuals you want to inherit your assets in your estate planning documents and those you wish to disinherit. By being as specific as possible regarding your wishes, we can eliminate confusion that could lead to demands from an unknown biological child.