Estate Planning Archives - Page 2 of 4

Understanding When Do You Need Probate

January 26, 2023

Probate is a standard legal procedure that formalizes how some assets pass from a deceased person to his or her chosen heirs or beneficiaries. Whether or not you require probate depends on the type of property and how you own it, and the state laws in which you live. While probate can be a complex process for vast estates, it is a simple formality for most Americans. Essentially, probate allows a judge to give legal permission for assets to pass whether or not there is a last will.

The Steps to Take When Appointed a Trustee

January 5, 2023

You have been asked to be the trustee of your friend Rose’s trust. While you want to help, you are concerned about the responsibilities involved. You would be managing Rose’s property for her and for others whom she names as beneficiaries. You might be paying her bills and taxes, overseeing bank accounts, making investments, collecting rent or unpaid debts, getting insurance if needed, and doing whatever else the trust directs you to do. People named as trustees are considered in law as “fiduciaries.” “Fiduciary” stems from the Latin for “trust.” To merit that trust, you must act in Rose’s best interests, to the highest ethical standards of good faith and honesty.

An Overview of the Probate Process

December 22, 2022

As part of the probate process, a will is recognized and recognized as valid by the court, a personal representative (executor) is appointed, and assets are distributed to intended beneficiaries. It also requires paying the decedent’s outstanding debts and federal and state taxes. Each state has different laws determining if probate is necessary or can be expedited, whether the fiduciary requires bonding, and what reports must be prepared. The probate experience is unique, as no two wills are the same.

Special Needs Trustee Selection

December 15, 2022

Trusts set up for loved ones with disabilities are typically supervised by the grantor (the individual who creates and funds the trust). However, it is crucial to choose a successor trustee who will continue properly managing the SNT to benefit the special needs individual. When selecting a reliable, honest, and capable successor trustee, there is much to consider since trusts often operate on the honor system unless there are egregious circumstances that the courts must address.

To Avoid Issues, Create and Update Your Estate Plan Consistently

December 1, 2022

In the absence of a plan, your estate’s financial future and legacy for your loved ones will be decided by the courts under your state’s intestacy laws. Dying without an estate plan or a basic will creates confusion, work, and heartache for your family at a time when they should be mourning your loss.

A Creditor’s Options for Disrupting a Probate

November 24, 2022

A will specifies a personal representative (executor) who will publicly make the date of death of the testator public (normally through a local newspaper). In part, this information serves as notice to creditors if the decedent has an outstanding debt with them. The personal representative must also make a reasonable effort to notify ascertainable creditors.

What You Should Know About Special Needs Trusts

November 17, 2022

Generally, a trust is created when a person or business manages property or assets on behalf of another party. The person or entity who manages the trust is known as the “trustee” and is entrusted with the responsibility of making decisions in the best interest of the person who benefits from the trust, known as the beneficiary. Trusts are advantageous because they provide the ability to place conditions on how and when your assets will be distributed when you die, reduce estate and gift taxes, and allow you to skip the lengthy and expensive probate process.

What Are the Circumstances Under Which Disinheriting a Child Becomes a Mistake?

November 3, 2022

When it comes to inheriting money or property, most parents treat their children equally. But sometimes, parents intentionally choose to not leave anything to a child, and the reasons for doing so may vary. One reason could be that a child who is more financially successful than the others and the parent doesn’t feel it’s necessary to leave anything. Another reason may be a desire to prevent a child with special needs from losing government benefits. Or a parent may not want to leave an inheritance to an irresponsible or drug-dependent child for fear the inheritance will be wasted.

Probate: How to Decide If You Need It

October 27, 2022

Despite sounding complex and expensive, probate is a standard legal process that transfers assets from decedents to their chosen beneficiaries or heirs. Whether or not you require probate depends on the type of property and how you own it, and the state laws in which you live. While probate can be a complex process for vast estates, it is a simple formality for most Americans. Essentially, probate allows a judge to give legal permission for assets to pass whether or not there is a last will.

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