Estate Planning Law Articles
Articles written by attorneys and experts worldwide
discussing legal aspects related to Estate Planning.
We have warned you many times about using online legal document providers for your estate planning needs and here's more information as to why.
There are many mistakes that you can make in estate planning. Planning your estate is not a simple or easy thing to do.
If you have ever watched a parent, grandparent or other loved one struggle through health problems you know how difficult it can be. Is there more you can do?
In Canada capacity is often the key issue in challenges to testamentary documents, powers of attorney, the ability to manage property and/or personal care, gifts & even marriage. In Ontario, the test differs in accordance with the complexity of the document or the specific act under review. The author spoke recently at a continuing legal education programs sponsored by the Law Society of Upper Canada and provided an overview of the topic. This article is related to that presentation.
The European Commission (EC) has decided to refer Germany to the EU's Court of Justice because of its legislation on inheritance and gift tax allowances.
The re-election of President Obama ensures that the Affordable Care Act (“ACC”) will be implemented. The ACC imposes obligations that most individuals maintain health care coverage. Individuals who fail to comply with the law are subjected to penalties in the form of excise taxes. For permanent residents who may maintain coverage provided by a foreign company or government and for expatriates living abroad, the individual mandate creates a number of potential issues and concerns.
Asset protection is the safeguarding of your physical and financial property against creditor judgments, negligence lawsuits, and divorcing spouses
Did you know that gifting assets can reduce your estate taxes? You must, however, abide by gift tax laws, or you could owe tax for gifted items.
Individual long-term care needs continue to exist, regardless of the state of the nation’s economy, politics, or changes in the law.
The option for creating a joint Will exists in some jurisdictions, and this is why the topic is still discussed in many law school courses
As important as it is to make your estate planning documents such as a will or living trust and pour over will, durable powers of attorney, and healthcare powers of attorney is where to keep those documents. Finding a safe secure place to keep your estate planning documents is very important for the fact that those documents are no good if they are destroyed, lost, or missing.
Estate Planning: Should You Name Two Or More As Your Executor Or Personal Representative In Your Will
When you make your will an important part of the will and an important decision you will have to make is who you want to be your personal representative or executor. Personal representative and executor can be used interchangeably and the title will differ based on what state you are located in when probate is started.
Unfortunately, many elderly Americans are living off of a shoe string budget. Social Security payments do not cover the cost of living for most seniors.
At The End Of The Year, Bequest Promises Eexpire By Means Of Constraints Over The Inheritance Reform
Inheritance claims may end at the close of the year, as a result of legislation alternation in obedience with the inheritance reform. The inheritance reform from 2010 has changed the limitation rules and could show its effects for the first time this year.
When you hear or read about the term "probate avoidance" you may wonder exactly what probate is and why anybody would want to avoid it.
The gift tax exists because of the fact that people logically transfer assets to their future heirs while they are still alive in order to avoid the estate tax at their death
Advancement of modern technology allow people to migrate effortlessly across borders in increasing numbers in this century. People live and work outside their home country, and some adapt to their adopted homes by having their families abroad. Expatriates have a unique myriad of concerns about their assets in their adopted country in the event of death. The inevitable question is: Do I need a will while I am living abroad?
There may come a time when circumstances in your life have changed and you need to update your will. These circumstances can include a new marriage, a new child, a divorce, or having a new financial status such as winning the lottery and becoming a millionaire.
When a person dies, his or her estate must pass through the legal process known as probate. During probate, assets of the estate are inventoried.
The phrase “power of attorney” is used with great frequency in the field of estate planning.
The ongoing future of the Social Security program is a subject that is often discussed within elder law circles.
Changing the terms of a testamentary trust may not be as easy as you think. You see, a testamentary trust is a trust that is created in your last will and testament (thus, the origin of its name), and does not take effect until you die.
Retirement planning for couples who are part of the LGBT community is fraught with challenges that do not exist for traditional couples.
Some people who visit elder law attorneys are very pleased to hear that Medicaid will pay for long-term care.
Just because you love your children and get along with them does not mean you can assume that they will love each other or get along with each other in the same way. The reality is that when there is money on the table family history and love can easily be thrown away. The relationship between each child with each other child should be examined when making an estate plan.
Statistically, we can all look forward to living much longer than those who came before us. That does not, however, mean that we will live forever.
If you are the executor or personal representative of someone’s estate then one of the first duties you will perform is to obtain date of death values for all assets of the estate.
Many families are fortunate enough to be able to enjoy a family vacation home. Whether you have a cabin in the woods, a chalet near the slopes, or a condo at the beach you need to pay particular attention to how the property is handled in your estate plan in order to avoid conflict and confusion.
If you recently found out that you are the executor of the estate of a recently deceased loved one, or have been appointed by the court as the personal representative of an estate, you will soon realize that there are numerous duties that go along with the position
When you engage the expertise of a good Reno estate planning attorney you can be certain that all of your bases will be covered, This is something to keep in mind if you have ever been tempted to utilize some type of estate planning download that is advertised on the Internet.
If you’re thinking about getting a divorce, are in the process of getting a divorce, or are already divorced, then you should keep reading. A divorce can be a very emotional and stressful time; instead of thinking about how best to protect yourself and your assets, you may spend your time reminiscing over the love lost or fuming about the reasons prompting the divorce.
If you have sizable assets it is an advantage to be married. If a couple is married they can pass an unlimited amount of money to each other after they die without having to pay a federal estate tax. Bill Gates, Donald Trump, or Warren Buffett could pass all of their billions to their wives if they died and would not have to pay a cent of federal estate taxes.
There are multiple ways to transfer your assets to your loved ones after your passing. Many people assume that a last will is the best way to pass along their legacies. Though a last will is indeed an option and a frequently used one at that, it is not your only choice and many people would say that it is not the best choice.
Avoiding asset erosion is one of the primary goals of estate planning, and the most powerful source of this erosion that must be reckoned with is the federal estate tax. If you're wondering if you are going to be subject to the tax and how much your heirs will have to pay, you are not alone. And strangely enough, there is no definitive answer.
There is such a thing as living a charmed life, and a lot of people will tell you that their dogs are doing just that. Indeed, many Americans have a tendency to spoil their best friends and who can blame them? Dogs are loyal companions who provide you with endless hours of entertainment while acting as protectors.
Many baby boomers grew up listening to the Rolling Stones song "Time Waits for No One." Some of them are finding out just how true this is when it comes to retirement planning. Elder law researchers are interested in the preparedness of baby boomers for retirement because so many of them are reaching their senior years at more or less the same time. There are some 10,000 people applying for Social Security every day and this will continue for a couple of decades, according to experts.
Estate planning lawyers will always remind clients that they have choices when it comes to asset transfer. Simply using a last will is unnecessarily limiting, and you must consider the realities of probate because wills are intended to go through probate.
The matter of estate planning is unique in that it is something that you do that is not intended to benefit you personally. When you plan your legacy you are doing it for the well being of your family members, and people who procrastinate before they take the time to consult with an estate planning lawyer to devise a plan may be losing sight of this.
People generally go to the same hair stylist over a number of years once they find one they like because the stylist gets to know what the client's preferences are and he or she has had the opportunity to understand the specifics of the client's hair. This is true of estate planning as well in terms of the need for ongoing adjustments and the value in gaining an understanding of the specifics of the client's case.
There are those who equate the concept of the premarital agreement with the undermining of true romance, but this impression is now beginning to soften. The truth is that if all marital unions were first marriages taking place between two young adults with no children and no significant personal assets a prenuptial agreement may indeed seem unnecessary. But these days, marriage is simply not the same institution that it was in years gone by.
A brand new year is upon us, and as we brush ourselves off after the holiday reveling we are invariably ready to embrace the many changes that are in store for us. But then we get in the same car, drive the same route, sit at the same desk, and greet the same co-workers as we did last year.
You have to love win-win situations, and that's what you get when you include tax-free gift giving in your inheritance plan. Essentially, when you leave someone an inheritance you are giving this person a gift posthumously. But when you do you never get to see the look of surprise, joy and gratitude cross the face of this person who is dear to you. In addition, if that gift is received as a direct result of your death the occasion is certainly not a cause for celebration.
Not too long ago there was quite a buzz generated in financial circles by two of the highest profile and wealthiest businessmen in the world. Just this past summer Bill Gates and Warren Buffet issued a challenge to the nation's billionaires, asking them to give away at least half of their fortunes to charitable causes. The last we saw they had 38 takers, and Buffet himself had pledged to give away just about all of his assets previous to issuing this challenge.
There is a big DIY movement afoot in the United States these days, and for the most part this is a good thing. It can be a lot of fun to make home improvements, take on landscaping projects, fix up or restore cars, tailor your own clothes or engage in any other do-it-yourself project that may be of interest to you. The trick is to recognize your limits and make sure that you know where to draw the line.
Most people are not opposed to paying taxes that they feel are fair and properly used, but it is very difficult to accept levies that overstep the boundaries of logic and respect for personal property. The estate tax is the target of a lot of criticism, and though it was repealed for 2010 this is a temporary repeal for just the one year.
Did you know that you can donate your body to science? If you wish to do so, it is important that you set those desires out in advance in an anatomized gift declaration or other planning document that is provided by the agency you wish to favor.
Have you been named as the guardian of a minor child or a mentally incapacitated adult? If so it is important to understand what your fiduciary duties and obligations are to the ward. - Handle Financial Assets - As a guardian, you may have control of your ward’s financial accounts. You may use funds for the best interest of the ward.
Planning a funeral for a loved one can be a heart-breaking process full of confusing, sometimes expensive choices. You can alleviate this burden from your family by leaving written instructions for your final tribute. There are many advantages to making your own funeral preparations.
There’s been a lot of hype about the estate tax recently that created a good deal of confusion. The estate tax is a tax that the IRS imposes on the entire value of the estate when someone passes away. According to the IRS, the estate tax is a tax “imposed for your right to transfer property.” Prior to 2001, the estate tax exemption under the existing law was increasing annually from $600,000 until it reached $1,000,000 so any assets over that amount were taxed at a whopping 39% to 55%.
The greatest estate plan you can make is to spend all of your assets or everything that you own. This is simple and easy to do as you can just have fun until your last dollar and not worry about passing anything on. Some may be forced to do this while others may spend all of their assets by choice.
According to recent surveys, only 35 percent of Americans have completed their estate planning and only 21 percent have created a trust. According to the experts, this decline started to show as the housing market and economy slowed. Some Americans feel with the unpredictability of the economy, it is too hard to focus on estate planning. After all, a lot of Americans do not know if they will keep their assets through the down economy or not.
According to a recent study, a majority of American families who are wealthy enough to have a full-time accountant and legal representatives on staff have extremely outdated estate plans. In fact, more than three quarters of American wealthy families had outdated estate plans, even though 95 percent of them had significant life changes that required some form of updating to their plan.
Common estate planning errors do not just apply to those who do their own estate plans. Even those who pay thousands of dollars to create an estate plan can open the door to errors. Most Americans postpone updating their estate plans, especially with so much uncertainty in the air surrounding estate tax.
As a woman, you have spent countless hours working to create a high net worth. Unfortunately, the last thing on your mind is planning for how you will transfer ownership of your hard work to someone else if you were to pass away. Though it is hard to think about, female entrepreneurs need estate planning just as much as males to protect their assets and their loved ones.
You’ve taken the time to plan out your estate, but what about student loan debts? According to a study conducted by SmartMoney, one out of three consumers over the age of 40 is paying down student loans. Therefore, if you have student loan debt you need to include it with your estate plan.
Those in business or with significant wealth are concerned with protecting themselves and their assets in matters of tax, trust, and estate laws. Charitable Remainder Trusts Need Analysis - A charitable remainder trust, or CRT, needs to be carefully analyzed. There may be other planning alternatives that make more sense in certain situations.
When you begin the estate planning process, you will be approached with the terms “General Power of Attorney” and “Health Care Power of Attorney.” During estate planning it is highly important that you understand these terms thoroughly, since they can greatly impact your health and well-being during and your family after life.
You have worked years to establish your business and your livelihood. Upon your death you want to ensure that your business and the legacy behind it will be protected. You can do this with estate planning, but you have to ensure you follow the proper steps to not only protect your estate, but your family business.
Just about every family out there can benefit from a Trust in some way. In fact, a Trust is not something designed specifically for the rich and famous. Therefore, if you are considering a family Trust, take a look at a few situations that imply your estate planning could benefit from using one:
By Jaburg Wilk
Litigators can be beneficial when there are disputes over probate and trust litigation. Probate and trust litigation can turn families into enemies and convert inheritances into attorneys’ fees. These disputes can fueled by sibling rivalry, blended families, family grudges, financial need, entitlement, revenge, greed, or spite.
levy that is imposed on gifts that you give to others if they exceed a certain amount. Every year you can give as much as $13,000 to any number of gift recipients free of the gift tax. The total sum of these tax-free gifts can equal any amount of money.
You can’t take it with you. This is one of the simple, inalienable truths about dying, and, like it or not, your relatives know this. So if you have had the good fortune to become wealthy during your life, be sure to develop an estate plan that will help keep things civil.
There are many different types of power of attorney; in fact, there are so many that someone could be easily overwhelmed when trying to decipher just what exactly, is encompassed by a grant of power of attorney. And don’t worry: if you don’t know what a power of attorney is, you are not alone. To put it simply, the phrase “power of attorney” describes one person’s bestowal of power upon another person to act in their stead.
Some people want to provide for minors or adults who are incapable of making their own decisions when they are making preparations for the future. If you want to set aside resources for the well-being of such an individual you would place them into a trust of some kind.
When you are engaged in the process of retirement planning, you are going to want to be apprised of all of your options. With this in mind we would like to take a look at home equity conversion mortgages. Just about everyone would like to be able to retain ownership of as much property as possible so that they can leave behind a robust legacy to their loved ones.
An important question to ask before you see an estate planning attorney to make a will or living trust and all of your other planning documents is what to bring. It is important to account for all of your assets, or everything you own before you make an appointment to see your estate planning attorney. You must do a little bit of work to prepare yourself and do your homework before you will be properly prepared for your initial meeting with an attorney.
Because of the fact that pets live relatively short life spans as compared to humans, you may think that it is not necessary to consider the future of your pet when you are planning your estate. Perhaps this is true for some younger people who essentially co-own their dog, cat, horse or other animal with other immediate family members.
If you were to get yourself a dog or cat as a senior citizen you may be taking a very positive step. It is not uncommon for elders to experience a sense of loneliness and pet ownership can certainly make a big difference. However, when you are planning your estate you must ask yourself what would happen to your dog or cat after you pass away.
There is an old Internet meme that shows a picture of a man looking at a computer while a woman stands in a doorway behind him The picture is captioned with some way of stating that the man cannot go to bed because he has to stay on the Internet because someone on the Internet is wrong.
Forgive me, ladies, but this is a post for the men in the audience. You can read it, but it is not for you. This post is for men who spend any time with other men. It does not take long if you get a group of men together that the conversation turns to what it means to be a real man. It really doesn't.
Most people do just about everything they can legally do to get as much money as they possibly can. This makes it amazing when someone appears to go out of their way to not get virtually free money. For example people have been known to not show up to claim inheritances for no reason. It happened recently.
Have you ever purchased a one size fits all T-shirt? I'm not sure why companies make these things. They don't actually fit anyone. They are always too large or too small for any particular person. If you have made the mistake of buying one of these things, it’s a mistake you are not likely to make again.
Many people within the elder law community are concerned about the future solvency of the Social Security program. Indeed, given the rapid aging of the population there will be an added strain on the system. Exactly how to go about cutting costs is a matter of ongoing debate, but the Social Security Administration has been taking some steps that would seem to be quite logical to most people.
A living Will registry is a good idea. It’s like an insurance plan that covers your wishes instead of your property. Although the subject matter underlying a living Will registry may be difficult to discuss, registration and use of the registry is simple.
Common law marriage is still in practice in Alabama ,Colorado, The District of Columbia, Iowa, Kansas, Montana, New Hampshire, Oklahoma, Rhode Island, South Carolina, Texas, and Utah and should be factored into your estate plan if you live in any of these states and it applies
Pregnancy is one of those significant life events that cause us to make a great many changes in our lives. One thing to which being pregnant should give rise, is considerations about your estate plan. Perhaps you do not yet have an estate plan in place. Perhaps you need to make some adjustments to your existing plan, in light of the pregnancy.
I have an old friend that I only know through the Internet. I'm not sure how we met. It was a long time ago. It was probably through a mailing list or some early Internet message board. We have a lot of similar interests so over the years we have kept in touch. We do not talk often, but every once in a while we send each other emails to see what is going on or to discuss something of mutual interest.
Perhaps some of your family members are not as motivated to make something out of their lives as you are. It is frustrating when that family member is a child or grandchild who just cannot seem to do anything with his or her life, who shows no desire to go to college and get a degree that can land them a good job.
It can be very difficult for adult children with aging parents to accept that the people who raised them are now coming to the age where they are not able to perform the same tasks that they used to be. If you have aging parents there may come a time when you will need to step in and begin managing some of their responsibilities for them.
You must think everything all the way through when you are interested in being totally and comprehensively prepared for the inevitable. With this in mind you would do well to make provisions for your dog when you are planning your estate. No one knows exactly when they will be passing away so you may think that you will live longer than your dog but in reality you have no guarantees.
Estate planning in the digital age is going to require communicating relevant information to your executor or personal representative. These days a lot of people conduct a significant amount of business online. Indeed, some individuals take care of just about everything over the Internet and it can be quite efficient to handle your affairs digitally.
Older Americans often use reverse mortgages to buy long-term care insurance, pay for medical treatments, finance home improvements or supplement income. There are different types of reverse mortgage available and only people who are 62 or older will qualify. Just because you may qualify, however, does not mean that you should be considering a reverse mortgage.
State law governs the distribution of your estate if you do not have a will or trust in place. Did you know that your spouse may receive only 1/3 of your estate when your pass away? Intestacy is the process governing the distribution of you estate should you pass away without a will or trust. In Oklahoma, the default rule for a family (with no step-children), is that only 1/3 of your estate will pass to your spouse if you unexpectedly pass away; the rest will pass to your children.
Depending on your needs, estate planning may be a simple or complex process. We believe that these three instruments are essential to protecting your loved ones and estate, should you become incapacitated or pass away unexpectedly. Regardless of the size of your estate, there are three estate planning instruments you should establish today.
The recent economic downturn have resulted in many of us tightening our belts. For most of us, this means having to forgo our annual overseas holidays, having to downgrade from going to restaurants to having our family meals at food court. Everyone is looking for ways to reduce their spending. We often overlook the very obvious method (and also substantial) savings through refinancing.
Have you ever considered whether or not your business could continue without you or your key employees? “Keyman Insurance” is an insurance policy designed to financially protect a business from the effects of prolonged illness or death of important employees of a business. Read this article to find out how your business can benefit from keyman insurance.
There is no doubt that you have heard a great deal of information bandied about regarding the Patient Protection and Affordable Care Act (PPACA) in the days since the U.S. Supreme Court upheld the law, in a 5-4 decision. All of the facts and figures can be confusing, especially since they all seem to conflict from day-to-day. So what kind of effect, if any, will the PPACA’s expansion of Medicaid have on private health insurance rates?
The estate tax and the gift tax are unified under the tax code. We would like to provide a basic explanation with regard to what exactly this means to you. You cannot simply give gifts while you are alive in an effort to circumvent the estate tax. There is a federal gift tax in place as well and it carries the same rate as the estate tax.
You may have heard the term "unified exclusion" if you have started to do any research into the field of estate planning as you look ahead toward your own future. What this is referring to is the amount of resources you can pass along to your loved ones without facing the prospect of paying a hefty tax.
The taxes that are imposed on transfers of assets are something to take very seriously when you are interested in wealth preservation. These taxes extend beyond the estate tax alone. There is also a gift tax, and it is unified with the estate tax under Internal Revenue Service regulations.
Nursing home costs are rising, which could be detrimental to your financial health should you find yourself in need of nursing home care, or even that of an assisted living community. In fact, the average annual cost for a nursing home is running around $75,000 per person. Having insurance won’t be much of a help since most insurance plans do not cover the costs associated with a nursing home.
It isn't uncommon for a new client to walk into an estate planning attorney's office and ask if the attorney can make a quick update to a Will. While updating a Will is possible and is generally not difficult, there are often complicating factors which will require you to take more time and to think carefully about how your updates will affect your estate plan. Here are a pair of issues you want to think about if you are intent on updating or changing your Will.
Estate planning involves making provisions for those that you care about, and with this in mind you must remember to include your pet. Yes, pet planning is an important part of any holistic estate plan and you must make sure that your pet will be properly cared for if you pass away first.
Many times it is not the big assets such as the house or bank accounts that cause fights among family members when an estate is divided. Deciding what to do with your personal items such as your favorite piece jewelry that has been handed down from six generations is what many people think of when they make an estate plan.
You must not avoid writing your will. In fact, it is your voice after you death. Your family and loved ones will be certain of your wishes. A carefully written will can avoid your assets going to unintended individuals, eliminate contests over the distribution of your possessions, can be used to create a trust, economical relative to intestate administration, and a will can be easily amended to fit changing circumstances.
Trusts are versatile, money saving instruments that are widely used to save on estate tax liability, ensure privacy, and provide for special needs in all situations. They must be explored as an alternaive to wills. What is a Will? - A will is a legal instrument that permits a person to make decisions on how his possessions will be managed and distributed after his death.
When parents of get older and have multiple children, one child may provide caretaking responsibilities for the parent. These added duties include care at home including chores such as cooking, cleaning, organizing, and any other duties that are associated with home care. Added duties can also include companionship and spending extra time with an older parent that may be lonely and alone otherwise.
It is important to be aggressive about tax planning in light of the heavy toll that the federal estate tax can take on your legacy. To be able to act intelligently you must gain an understanding of the taxation that is imposed on significant asset transfers and we will shed some light here.
It is a good idea to think things all the way through when you are engaged in the process of inheritance planning. Getting resources into the hands of your loved ones is of course the goal, but you would do well to consider the personality traits and financial capabilities of the people who will be receiving inheritances.
Although it is difficult to think about your own mortality, if you have minor children under the age of eighteen then it is something that you must consider for their own protection and well being. The estate plan that you come up with when you are still alive will greatly affect and shape the course of their entire lives.