Estate Planning Tips to Help Your Plan Succeed

You shouldn’t fall for any of the widespread rumors and false impressions about estate planning. The most popular is that you should put off creating an estate plan until after you have amassed your “fortune” and wait to be married and have children before doing so. Don’t fall for this. At any time, you can put together your estate plan.

When you work with your estate planning attorney, you want your plan to work, right? The cool thing is that there are several things you can do to make this happen. These things include:

Draft your will

Everybody older than eighteen ought to have a will. It serves as a guide for allocating your assets and may be able to stop disputes between your heirs.

Making decisions about who receives what will be more straightforward with your list of assets in the will.  A will can also specify who will care for your pets and appoint a guardian for any minor children. It is also possible to bequeath property to charitable organizations in your will.

Many people think wills are expensive and complex, but this isn’t true.

Depending on the complexity of your assets and location, many attorneys can assist you in creating a will for a small fee.

If you don’t want to pay an attorney, you can use software programs or internet resources to draft your own will.

To make the will binding, sign it with two unrelated witnesses. You also should ensure that you date your will and get a notary.

Lastly, ensure that others know the document’s location so they can retrieve it as needed.

Choose the right executor.

You must designate an executor in your last will to manage the probate of your estate following your passing.

The executor will be the decision-maker who should be capable and accountable.

It’s not always the ideal option to choose your partner. Consider how the emotions around your passing will impact this person’s ability to make decisions.

If there seem to be any problems, think about other suitable candidates. You may designate a close friend or a member of your family that you feel can act objectively in your place.

Besides the executor, you’ll probably need to name individuals to fiduciary positions throughout your estate plan, like trustees or agents. Don’t merely pick a family member or friend because you feel confident in them.

Pause and ask yourself if they possess the skills and background required for the role. As a rule of thumb, you should name the most qualified. If you are unsure about the ones to go with, get the input of a professional.

Know your assets and liabilities.

Your assets and liabilities are probably little known to you, but when you sit down to create your estate plan, you’ll need to know them both inside and out. Make a list of all of your assets and all of your liabilities first.

Remember to include a thorough description, the current value or amount owed, the location, and, if relevant, account passwords for every item on the lists.

Begin by going through your house, inside and out, and listing everything valuable. A few examples are the house itself, TVs, PCs, jewelry, collections, cars, artwork, antiques, lawnmowers, and power tools.

If you come across something you would like to leave to a specific person, you can make notes.

Remember items that are primarily sentimental, such as family photos. Jot down the items you would like to give to a specific charity.

You can snap images to expedite the task and prevent misunderstandings.

As you do this, you might find that the list is far longer than you anticipated. If this happens, don’t worry; keep adding the items.

Include enough information about your financial holdings and entitlements on the list so your heirs can claim them.

This covers any type of insurance policy, including health, disability, homeowners, auto, and long-term care; it also includes bank and brokerage accounts, 401(k) plans, IRAs, and life insurance policies.

Include the account numbers when describing the whereabouts of any physical papers you own. Provide a list of the contact details of the companies that own these intangible assets.

You should also attach a recent statement or other paper document with the essential details (account number, company, and contact details) if it makes it more accessible.

All of your open credit cards and other debts should be listed separately. Auto loans, mortgages, home equity lines of credit (HELOCs), and any other outstanding obligations or credit cards you may have could fall under this category.

Make a note of the account numbers, the addresses of executed contracts, and the phone numbers of the businesses holding the debt.

Add all of your credit cards, noting which ones you use frequently and which are unused and stashed in a drawer.

Attaching a current statement or other document that contains the essential account information may help to simplify this task, so do it if it is feasible.

After making your list, update it regularly when you buy or sell assets.

Remember to include incapacity planning.

As circumstances demand, you will probably add many elements to your estate plan throughout your lifetime. However, one element that ought to be present from the start is incapacity planning.

When most people think about incapacity, they usually picture an elderly person with Alzheimer’s disease or a comparable illness. Though diseases like Alzheimer’s can undoubtedly lead to disability, the truth is that anyone can become incapacitated at any time.

For example, you can be involved in an accident.

Due to this, you should always have a section dedicated to what will happen if you get incapacitated.

Thankfully, you don’t need to do much. You only need to consult your estate planning lawyer Largo and make the necessary plans.

Tricks to Protect Your Estate Against Disputes After Your Death

Estate litigation may be unavoidable in certain situations, but far too often, it could be avoided with greater preparation and guidance, saving stress, money, and family strife.

To help you out, here are tips you can use to lower the possibility of a disagreement following your passing:

Have a solid will.

Although it might seem obvious, one of the easiest ways to lessen the likelihood of a legal issue after your death is to have a proper Will.

According to research, around 50% of adults do not own a will. In such a case, your family members will get an inheritance according to the norms of intestacy, which are established by law.

This causes assets to be given to unexpected beneficiaries or leaves some family members in need. Intestacy can have an especially negative effect on blended families.

Some families are forced to file expensive family provision petitions to redistribute assets more fairly or court proceedings to settle disputes about the estate’s administrator due to the rigorous implementation of the norms of intestacy.

A growing number of instances in recent years have involved homemade wills that were neither witnessed nor lawfully signed by the testator. The Will can be accepted by a court as an “informal Will,” but doing so requires further expensive and occasionally contentious court actions. You don’t want this, do you?

One essential first step toward ensuring a smooth administration of your inheritance is leaving a validly signed Will. Sit down with an experienced wills and trust attorney and put together a will that you will protect your loved ones once you are not there.

Deal with your assets.

Finding out that a Will does not handle all of your assets automatically can be shocking.

For many people, superannuation is their most valuable asset; yet, depending on the type of fund and whether a binding death benefit nomination has been made, your superannuation may or may not be governed by the terms of your will.

Insurance policies, assets held in corporations or trusts, and jointly owned property are additional assets that might not be immediately allocated under your will.

You should ensure that all of your assets are handled carefully in an estate plan to make sure they go where you intended. If not, significant assets could be divided unjustly or unexpectedly after your death.

Be clear about gifts and other financial support to your family

More people have been helping their kids and other family members financially in recent years. This might sometimes take the kind of a one-time payment, like a down payment on a house, ongoing support, like helping with grandkids’ tuition, or emergency cash support, like following a breakup.

While some people see financial help as a gift, others choose to provide it in the form of a loan with set repayment terms. Additionally, some want to guarantee equality for all of their kids, while others would rather provide support when it’s needed without making adjustments for individual kids.

Regardless of your perspective, the most important thing is to be transparent about your goals when you give your kids or other family members money.

You should carefully analyze and clarify if your financial aid is a gift or a loan in order to prevent future conflicts. If it’s a loan, it’s critical to have all documentation in order and to maintain track of any repayments.

Consider the risks of family provision.

The most frequent and often misinterpreted challenges to an inheritance are family provision claims.

Someone in your family may file a family provision claim with the court to request an increase in their inheritance if they feel they were left out of a will or if their part of the estate is insufficient.

To avoid this, it’s crucial to get expert counsel regarding the danger if you’re worried that someone could make a family provision claim against your assets.

A good way to go about it is to include a statement in your will that provides pertinent details regarding the past relationship with the potential claimant, including any financial support you may have provided, as well as the reasons you made the decisions you did.

You should also consider arranging your assets in such a way that the amount of the estate that can be contested is decreased.

It’s important to seek personalized guidance from an expert on how a family provision claim can affect your inheritance and what options you have to reduce that risk, since every family provision case is unique.

Choose the right executor.

For you to transfer your estate in accordance with the terms of your Will and the law, the executor of your Will has important obligations to your beneficiaries.

While this is the case, you should note that your executor has a variety of decision-making authorities over how they oversee the estate’s administration as long as they stay within the bounds of their legal responsibilities.

The promptness with which assets are gathered and distributed, the decision of whether to sell or transfer a particular asset to a beneficiary, the procedure for selling assets, and the payment of estate costs are some of the frequent points of contention between executors and beneficiaries.

The benefits of assigning more than one executor include better accountability and the flexibility for executors to divide the workload.

If you designate many executors, they must get along well with one another because if they can’t agree, the estate administration may come to a complete standstill.

Your goals and the conditions of your family will determine the prudent choice of your executor. Selecting executors who have the necessary skill set and who you anticipate will get along with your beneficiaries is, in our opinion, a good decision.

If family conflicts are a concern for you, it may be beneficial to name an independent executor.

Other important positions that can be pertinent to your estate planning are guardians for minor children, trustees of testamentary trusts, and agents under enduring powers of attorney.

If you are confused about the right people to choose, consult your estate planning attorney Largo for guidance.

What Does an Estate Litigation Attorney Do?

In trying times, a probate litigation lawyer comes in handy. You should note that probate court disputes frequently spiral out of control quickly.

Family conflicts might arise or worsen, hurt sentiments can occur, and all of this can happen while you are still mourning over a loved one.

When you are going through this, you should not try not to manage it by yourself. Instead, you should contact a probate attorney. The attorney can do plenty of things, including:

Identifying issues with a will

The laws about estate planning and probate are difficult for the average person to understand.

It is easy to miss an issue or misjudge the ramifications of a will’s wording or decisions made during a probate proceeding. It can be expensive to ignore these problems and fail to address them.

An attorney specializing in probate litigation has the requisite expertise to identify issues in a probate case and the practical understanding to address them. This makes them a great addition to your team.

Address the misconduct of the executor.

The majority of people who draft and sign wills designate an executor. Although the executor may occasionally be a close friend or relative, you should always feel confident in their ability to manage your estate.

Regretfully, executors sometimes mismanage estate assets or decide based on their selfish interests. As a result, the recipients may eventually lose the inheritance they should have gotten if the estate experiences financial loss.

If the need arises, probate litigation attorneys can assist you in identifying and resolving executor misconduct.

Defend you against a will contest.

Individuals on one side of the family can sue other members, who subsequently enter the litigation as defendants.

If you are going through this, your probate litigation lawyer will help you evaluate the case’s facts and develop a counterargument to the other side’s assertions.

Help you contest a will.

Wills sometimes give rise to disagreements. Battles over bequests and assertions that the testator, the person who signed the will, was forced to sign it are frequent occurrences. Regardless of the origin of the dispute, beneficiaries and family members may find themselves in court.

Probate litigators know when and how to challenge a will and will help you go through the process.

Navigate the court system.

Probate cases require interaction with judges and court clerks throughout the entire process. To begin the probate process of a will, executors and administrators must first submit a petition and follow all court directives and estate management guidelines.

When disagreements occur, and someone files a probate case, the situation is even more difficult.

It’s likely that most people have only ever served on juries, so initiating a case or defending against one will be difficult.

Your probate lawyer, however, is knowledgeable about the system from both the plaintiff’s and defendant’s points of view. Stress levels might drop, and your chances of winning your case increase when you have an experienced attorney.

Represent you at trial.

The parties in your dispute may attempt to settle for some point. Should settlement talks fail, a trial may be necessary in your case.

Your probate litigation attorney’s support will be crucial in any scenario. Armed with knowledge of the advantages and disadvantages of your case, your attorney will effectively defend you in settlement talks or a courtroom.

Help you remove executors if necessary.

Sometimes, executors are not reliable. They can fail to promptly get the estate through probate or steal assets from it. It can be time to terminate someone when they aren’t doing their work duties.

Again, your greatest option for getting rid of an executor who has gone rogue or is incompetent is to consult a probate litigation attorney.

What makes a reasonable probate attorney?

For you to hire the right attorney, you need to consider several tips that include:

Experience

Before you hire, find out how much of a probate litigation attorney’s practice area they handle and how much courtroom experience they have.

You should note that some lawyers only assist clients with drafting estate planning forms; others are trial lawyers who focus only on litigation.

Furthermore, general practitioners may deal with various legal concerns; probate matters make up very little of their profession. You should ensure that the lawyer you choose is qualified to handle your particular situation.

Their ability to help with estate planning

A probate litigation attorney handles matters differently from an attorney specializing in trusts and estates. A probate litigation attorney deals with disagreements throughout the probate process, whereas a trusts and estates attorney can help clients create their estate plans, draft documents, and make sure their future intentions are carried out.

Even though some lawyers provide a broad range of legal services, it’s important to know what kind of lawyer and services you need.

When do you need to hire a probate attorney?

If you’re looking for a probate lawyer, it’s most likely because there has previously been a disagreement. While this is the case, litigation might result from a wide range of concerns that can come up during the probate procedure.

You could have grounds to contest the probate procedure, for example, if you doubt the authenticity of your loved one’s last will and testament or believe you were unfairly disinherited.

If the executor of the estate misused cash or violated their fiduciary duties, you may want to consider engaging a probate attorney.

Depending on the particulars of your case, a probate lawyer Largo can advise you on the best course of action.

As mentioned, you should hire the most experienced attorneys who will represent you in court and advise you on the best course of action to take.

Understanding Estate Litigation

Litigation is the process by which parties seek the intervention of a court or other authority to resolve a disagreement they cannot decide on their own.

While the phrase might refer to alternative conflict resolution processes like mediation or arbitration, estate disputes almost usually end up in court.

Whether you are a beneficiary, personal representative, or another interested party, an estate litigation attorney can help you understand your choices and resolve your issue.

Common disagreements that result in estate litigation:

  • Disputes over the legitimacy of the will or trust.
  • Claims that the personal representative or trustee violated their fiduciary duty
  • Disputes over creditors’ claims against the estate.
  • Claims of fraud or undue influence
  • Guardianship concerns.

As previously stated, estate litigation happens when disagreements develop, and the parties cannot settle them. They may be unable to resolve them for various reasons, including personal issues, which are prevalent in estate disputes.

The estate documentation may be vague or inconsistent. An heir could have been suddenly disinherited or mistreated.

Whatever the cause, litigation may be the best way to resolve the conflict. An estate litigation attorney will help you analyze your case and explain the possibilities.

What happens if you can’t resolve a dispute?

If your issue involves a will, you must go through the probate process. The process consists of filing the will and then administering it under the supervision of the probate court.

Because you are already in court, you do not need to file a separate lawsuit, even if the matter might be handled separately. This helps to simplify the lawsuit procedure.

When a trust is involved, the procedure becomes more challenging. Trusts are administered independently of the probate process and without the oversight of a court.

As a result, if you want to attack a specific component of the trust or how it is run, you must launch a separate action.

Is there litigation if there is no will or trust?

If the decedent died without a will or trust, you must still go through probate. The first stage will be to designate a personal representative, which can lead to conflict.

Once the personal representative is selected, intestate succession statutes will disperse the estate’s assets.

As a result, disagreements over who obtains estate assets are highly unusual; nonetheless, litigation might still emerge over many other components of the procedure, such as the following:

  • Whether the personal representative is appropriately carrying out their obligations.
  • If there is proper notification to all heirs and creditors.
  • Identification and valuation of estate assets.
  • The handling of creditor claims

As a result, if there is any dispute, it will most likely occur during the probate process.

Is settlement an option when you opt for litigation?

Yes, you can settle your case. The chance of settlement, however, will be determined by a range of variables. For example, the personal representative or trustee may be unable to approve a settlement if it violates the conditions of the will or trust.

The reality is that resolution in an estate lawsuit might be more complex than in other disputes due to the number of parties involved and the limits of estate planning instruments.

This is one of the reasons you should consult with an estate litigation attorney early in the process; they will help you determine whether settlement is a viable option or if litigation is the only way to resolve the disagreement.

How to navigate estate litigation

Defend the will

You should defend the will if you believe it is just and legal. Estate litigation can take several months or longer. Therefore, it is best to hire an experienced lawyer as early in the process as feasible. The Wills, Estates, and Succession Act (WESA) establishes the requirements for a valid will, which include:

To form a will, you must be at least 19 years old, mentally competent in writing it, and sign it with two or more witnesses.

These requirements should be addressed first when determining the validity of a will, as it may be declared void owing to other conditions.

If a will does not follow the statutory formalities or was prepared while the will-maker was incapacitated or under undue influence, it may damage your entitlements.

Know the wishes of your loved one.

Engage in end-of-life conversations with your loved ones throughout their lives. Accidents and abrupt diseases can occur at any time.

Know where your loved one’s will, trust, and other estate documents are stored. Ensure that he or she engages an expert estate lawyer to write the estate plan and that the plan is updated correctly after significant events, such as a spouse’s death, the sale of a business, or the birth of a child.

Understand the timeframes

There are several time constraints for filing estate-related court actions. Depending on your claim, it could be as little as 180 days after probate is granted.

If you are concerned that a will is invalid or that you have been disinherited, you should contact a lawyer straight away, as courts seldom, if ever, allow for actions filed outside of the appropriate time frame.

If you wait too long, you risk losing your entitlement.

Don’t sign as a witness.

If you or your spouse are being gifted something in a will, you should not sign as a witness. The best approach is for the will-maker to have independent witnesses present to corroborate their signature. If you witness a will in which you also inherit, your gift may be void.

If you need assistance in preparing your estate plan or have questions regarding challenging or defending the validity of a will, contact a reputable wills and trust attorney Upper Marlboro and have them help you.

As a rule of thumb, ensure that the professional you hire is experienced and knows what they are doing. You don’t want someone who causes more chaos than is already there.

Estate Planning Tricks to Avoid Future Litigation

Nobody wants their family’s final recollections of them to be a dispute over their assets in probate court. Unfortunately, far too many families find themselves in contentious estate administration processes following the death of a loved one.

While this is the case, yours doesn’t have to be one of them. Use these estate planning methods to avoid future litigation. This manner, your assets will reach your family faster, without becoming stuck in a probate battle with a probate lawyer:

Start the process early while you are still healthy

One of the most common reasons why family members file Will challenges is “lack of capacity.” This means that the petitioner believes the individual who drafted the Will was not of sound mind when the document was signed.

To avoid probate disputes, begin estate planning as early as possible, while you are still healthy. This will keep family members from questioning your legal competence and make it more difficult to oppose your wishes later on.

Minimize your probate estate.

Another estate planning trick for lowering the danger of litigation is to limit or even abolish your probate estate. To avoid probate court, consider using a revocable living trust, beneficiary designations, jointly owned assets, and other estate planning options.

By withdrawing assets and monies from your probate estate, you make it more difficult and financially risky for an heir to reverse your estate planning by putting more assets in the hands of your trustee and intended beneficiaries.

Communicate your estate planning strategy with the beneficiaries

Probate litigation is frequently initiated when a deceased person’s natural heirs are taken aback by the language in their Will or trust. When a spouse or child is omitted without warning, or the distribution of assets alters, those who receive less are more likely to submit a petition to have the Will set aside.

As a result, one estate planning technique for avoiding probate litigation is to simply convey your desires to beneficiaries and family members beforehand.

This is especially crucial if you decide to deliberately disinherit a natural heir. Open communication about your desires will lessen the likelihood of a potential beneficiary becoming surprised after your death.

It also makes it more difficult for the successor to claim that their omission was the product of improper influence.

Update your estate plan.

Once your estate plan is complete, you should review it every few years to ensure that everything is up to date. You may need to add beneficiaries owing to births or weddings, remove them due to deaths or divorce, or change the distribution of your assets to account for property purchased or sold in the meantime.

It’s also critical to stay current on legal developments. Keeping your estate plan up to date reduces the likelihood of litigation by eliminating ambiguity.

If a Will has not been updated in a long time, it can be difficult to decide whether a car award applies to its successor, or how a bank account should be divided if the balance is significantly less than the amount mentioned in the Will, for example.

A reasonable rule of thumb is to review your estate plan for revisions every 3-5 years, or whenever there is a birth, wedding, divorce, or funeral in the family.

Have the vital documents

Most people think of estate planning as something that occurs after death, but a solid estate plan will also contain durable powers of attorney (DPOA), a healthcare surrogate, and possibly a living will.

These estate planning contracts take effect when you are no longer capable of making financial or healthcare decisions for yourself.

Executing these forms while you are still healthy is an important estate planning approach to help your family avoid probate court since they eliminate the requirement for the probate court to appoint a Guardian or Conservator to manage your estate.

Distribute your estate plan documents to the right people

You have the right to keep your trust paperwork and other important aspects of your estate plan private.

Other paperwork, such as beneficiary designations and powers of attorney, should be issued to the professionals in your life to ensure that your care and the facility’s services are uninterrupted. You should submit these materials to:

  • Each agent, personal representative, healthcare provider, or power of attorney designated in their specific documents
  • Your bank, credit union, or financial institution (DPOAs and beneficiary designations).
  • Financial advisors, accountants, and stock brokers (DPOAs, beneficiary designations, and some trust forms)
  • Your healthcare providers and chosen hospital (HIPAA releases)
  • You should also have a copy of your whole estate plan in a safe place at home, and your attorney should have a copy as well.

Discuss the estate plan with a reputable attorney.

While estate planning is about carrying out your intentions and should always represent your goals, it is wise to seek assistance with the actual drafting process.

Before signing any contracts, consult with an expert estate administration lawyer about your estate planning strategy.

This allows you to detect potential probate lawsuit risks early on and make changes to safeguard your family from a time-consuming and taxing probate litigation procedure.

When you are hiring an estate planning attorney Upper Marlboro, hire an experienced one who can handle both estate planning and probate litigation.

Since the professional understands what can cause a Will challenge and how to avoid one, they will advise you on what to do and what to avoid.

All you need to do is to research the attorneys in your area. Many people go for the first attorney they come across. This is wrong.

The best way to go about it is to get in touch with five or more contractors and interview them. You should only consider hiring the most qualified.

You should meet the most qualified people, discuss the many estate planning techniques available, and assist you in making decisions that will limit the likelihood of your family becoming involved in disputed probate litigation.

Is Estate Planning Only for The Wealthy?

When you hear the term “estate planning,” what comes to mind? For many, it’s an image of the ultra-wealthy meticulously mapping out how to distribute their vast fortunes.

But here’s the truth: estate planning is not just for the ultra-wealthy. In fact, it’s something everyone can benefit from, regardless of their wealth.

It’s simple to understand why estate planning is frequently connected with the wealthy and famous. High-profile cases in the media frequently feature multimillion-dollar estates, intricate trusts, and expensive inheritances.

Unfortunately, this narrow view overlooks an important point: estate planning is about more than money. It is about fulfilling your wishes, safeguarding your loved ones, and providing you with peace of mind.

So, even if you don’t have a lot of money, consult an estate planning attorney to help you put together an estate plan that will give you plenty of benefits.

You have peace of mind.

Perhaps the most significant advantage of estate planning is the peace of mind it brings. Knowing that your wishes will be fulfilled, that your loved ones will be cared for and that your affairs are in order can alleviate a great deal of tension and anxiety.

Estate planning shows love and consideration for the people you care about the most.

You protect your loved ones.

Providing for your loved ones is one of the most critical components of estate planning.

This extends beyond just distributing assets.

It entails choosing guardians for small children, establishing trusts to manage finances for beneficiaries who may not be prepared to handle them, and ensuring that trustworthy individuals make your healthcare and financial decisions if you are unable to do so yourself.

Consider parents with small children. Without an estate plan, the court will determine who will care for your children after you die.

By naming guardians in your will, you can ensure that your children are cared for by individuals you trust the most.

You get to make healthcare and financial decisions

Estate planning includes your intentions for health care and financial considerations. A durable power of attorney and an advanced health care directive (sometimes known as a living will) are essential to any estate plan.

These agreements allow you to designate someone to choose for you if you cannot.

Assume you’re in a circumstance where you can’t express your wishes due to illness or injuries. An advanced health care directive guarantees that your medical care preferences are understood and followed.

Similarly, a durable power of attorney authorizes a trusted someone to handle your financial affairs, ensuring that invoices are paid and financial responsibilities are met.

You minimize taxes and expenses.

While estate taxes are not a concern for everyone, estate planning can help you save money on taxes and expenses.

By structuring your estate tax-efficiently, you can decrease the burden on your heirs and ensure that more of your assets benefit your loved ones rather than the government.

Even if your estate is tiny, there are methods to reduce taxes and expenses with good planning.

This could include taking advantage of exemptions, establishing trusts, or making charitable contributions.

Estate planning tools that you need

There are a few. People frequently use more than one tool, depending on their needs. These tools include:

Last will and testament

This is one of the most popular kinds of estate planning. A final will and testament allows you (the person who owns the estate) to specify how you want the estate handled after your death. A will is relatively simple to create, but there are several conditions for a will to be recognized as legally effective.

Working with an experienced estate planning attorney can help guarantee that these standards are fulfilled. The attorney will guide you in what to include in the will and what to leave out.

One crucial function of the last will and testament is to designate guardianship for any minor children who may be orphaned. If no guardian is named in the will, the choice is left to the courts.

Living will

A living will, also known as an advanced healthcare directive, is something everyone should have. It outlines what you would and would not want to happen in terms of medical interventions as you near the end of your life.

A living will is activated when you become disabled and unable to communicate your wishes, whereas a regular will takes effect when you die. The living will answer concerns about whether you want feeding tubes, artificial respiration, CPR, and other life-sustaining medical treatments.

Without a living will, those decisions could be taken by family members who may either disagree with what you would have wanted or they may disagree with each other, leading to lengthy, costly court conflicts over your care.

Power of attorney

A power of attorney (POA) designates someone else to act on your behalf if you become incapacitated. POAs can be used in a variety of situations, including business transactions.

A healthcare POA is one of the forms that must be completed for an advance healthcare directive. It designates a person you trust to carry out the directive’s wishes. It only activates once you become incapacitated.

A financial POA also names a person legally authorized to handle your financial affairs if you become incapacitated. For example, suppose you are involved in a vehicle accident and finish up in a coma. In that case, the person listed in the financial POA can ensure that your expenses are paid, among other things.

When you die, the POA loses its power, and the traditional will takes effect.

So, who can benefit from an estate plan?

Ultimately, everyone can profit from estate planning. While it is vital for individuals with assets, even those with only a few possessions should consider estate planning.

While it is commonly regarded as a worry for the elderly, younger persons with assets or dependents will benefit as well.

Life is unpredictable, and everyone should be prepared for the worst. It’s better to be proactive and consider your future requirements and aspirations than to leave everything to chance.

Work with an experienced estate planning lawyer Upper Marlboro and put your life in order.

Estate Planning Guide

Estate planning is the act of structuring and arranging your assets to ensure that they are transferred in accordance with your preferences after your death or incapacitation.

Creating a detailed estate plan assists you in safeguarding both your loved ones and your possessions.

Unfortunately, there is no one-size-fits-all solution for developing an estate plan. The specifics will depend on your unique circumstances. While this is the case, the following steps will help you become organized and easily start the process.

Put together your team.

You should assemble a team that will help you create your estate strategy. In your team, you may wish to include a financial advisor, a tax specialist, and an estate planning attorney to create a comprehensive, customized estate plan.

Each member of your team should be able to contribute to the process and offer crucial legal and financial guidance.

Together with your team, devise a strategy to guarantee that your assets are allocated to the people and organizations you specify with as little uncertainty as possible.

Have a guardian for your dependents.

The next step you should do is decide who you want to care for your dependents (if any) after you die. These could be little children, a loved one with special needs, or elderly parents under your care.

If no guardians are listed in your estate plan, a probate court can appoint one for you.

Before naming a guardian, make sure you consult with them ahead of time to obtain their consent. You should note that they are not required to manage a child’s inheritance.

You can appoint a third person, such as a trustee, to handle money or assets until the child is old enough to manage their inheritance on their own.

Also, remember that identifying a couple as co-guardians can be challenging if they divorce. Discuss this matter with your estate attorney, and consider appointing a backup guardian for your dependents.

Outline your wishes pertaining to assets and dependents

You should express your preferences about your assets and beneficiaries. Remember that without an estate plan, a judge may make such decisions for you in probate court.

To limit the danger of your assets going to probate, which can be long, expensive, and not in accordance with your preferences, include the following estate planning documents in your end-of-life strategy:

A living will: A living will, also known as a medical care directive, specifies the medical procedures you want and do not want to receive at the end of your life.

A healthcare Power of Attorney (POA) document, also known as a medical POA or healthcare proxy, gives someone you choose the authority to make healthcare decisions on your behalf if you cannot do so.

Advanced healthcare directive: An advanced directive provides instructions on medical treatments and healthcare services if you become incapacitated.

An advance healthcare directive often includes two documents: a living will and a healthcare power of attorney (POA).

Last will testament: A last will and testament specifies your preferences for your property and dependents after your death.

This document allows you to name beneficiaries, designate guardians for minor children, and appoint an executor for your estate, who will carry out your wishes as outlined in your will.

Create a trust

A trust is meant to hold money and other assets for your heirs. When you create a trust, you control what goes into it, who receives what, and how it is dispersed.

A properly constituted trust ensures that your plan is carried out exactly as planned. It may also prevent your estate from entering probate.

You should work with an estate planning and trusts attorney to ensure that you select the appropriate trust for your needs and that it is formed by your objectives.

As you create a trust, you should know that there are many types of trust. The most common ones being:

Revocable living trusts: A revocable living trust allows you to modify or terminate the trust at any time prior to your death. When you pass away, your revocable trust becomes irrevocable.

Irrevocable trusts: Once created, you cannot change or terminate them. While irrevocable trusts lack the flexibility of revocable trusts, they provide further protection against litigation, creditors, and taxes.

Charity trusts allow you to donate assets or money to a nonprofit organization. The good thing is that assets in a charity trust are no longer considered personal property, so they can be passed to your beneficiaries without being subject to taxes or lawsuits.

Plan for estate taxes

Estate taxes are federal taxes levied on assets such as cash, real estate, stocks, and other valuable property. You should note that your beneficiaries must pay estate taxes after receiving their inheritance, usually payable within nine months of your death.

You can do several things to prepare for or reduce estate taxes, including putting assets in an irrevocable trust or making contributions to family members.

You should consult a tax professional who can collaborate with your attorney and financial advisor to identify which estate tax preparation techniques suit your situation.

Work on avoiding probate.

Probate is the legal process of having your will verified through the courts. It can be time-consuming, expensive, and very public because probate cases are public records.

Furthermore, if you have not specified your wishes in your estate plan, a probate judge may make choices you disapprove of.

Fortunately, you can avoid probate by writing and maintaining a will, naming an executor for your estate, and appointing a trustee to handle trust assets.

Parting shot

These are some of the things you can do when creating an estate plan. As mentioned, you should try as much as possible and ensure you have a solid estate plan before you die. As a rule of thumb, work closely with an experienced probate attorney Largo who will hold your hand and guide you through the process.

Estate Planning Best Practices

Estate planning is the process of organizing your affairs so that your loved ones can be cared for if you die or become incapacitated. Due to the importance of estate planning, you must do the right things to make the estate planning process easy. Besides hiring a reputable estate planning attorney, some of the other things you should do include:

Have a list of your valuables

First, go through your entire home, inside and out, and compile a list of all valuable stuff. Examples include the house, televisions and computers, jewelry, collectibles, automobiles, art and antiques, lawn equipment, and power tools.

As you explore, make notes if you come across something you want to leave for a specific person. Don’t forget about sentimental belongings like family photos.

You also should list items you wish to contribute to a favorite charity.

To ensure you can remember the items, consider taking photos.

You will even be better off if you can ask someone to help you.

Put together your debts.

You should make a separate list of all your open credit cards and other obligations. This may include vehicle loans, mortgages, home equity lines of credit (HELOCs), and any other debts or open lines of credit you have.

Take note of the account numbers, locations of signed agreements, and contact information for the companies that hold the debt.

You should include all your credit cards, noting which ones you use frequently and which are sitting in a drawer unused.

You should note that you can simplify the process by adding a current statement or document with the necessary account information.

Have a list of all your memberships.

You should list all the groups you belong to, such as AARP, The American Legion, a veteran’s association, a professional certification association, or a college alumni club.

This is because, in some situations, these organizations may provide their members with free accidental life insurance benefits, which their beneficiaries may be qualified to receive.

Include any other charities that you support. You can tell your beneficiaries about the charitable organizations or causes that are important to you and to which you would wish donations made in your memory.

You also should note any recurring gifts you make to a nonprofit organization so that your heirs can cancel or continue them.

Document your nonphysical assets.

Add your financial holdings and entitlements to the list, ensuring they are explicit enough for your heirs to claim.

This includes bank and brokerage accounts, 401(k) plans, IRAs, life insurance policies, and other policies like long-term care, auto, disability, and health insurance.

You should include account numbers and the location of any physical papers you possess. List the contact details for the companies that own these non-physical items.

If it is easier, attach a recent statement or similar paper document with crucial information such as the account number, company, and contact information.

Review your retirement accounts.

Accounts and insurance with chosen beneficiaries will be transferred directly to those people or entities following your death.

Remember that it makes no difference how you direct the distribution of these accounts or policies in your will or trust. If there is a dispute, the beneficiary names for the retirement account will take precedence.

Check your online account, or contact your employer’s customer support team or plan administrator, for a current list of your beneficiary selections for all accounts.

You should examine them to ensure they are current. This is especially significant if you are divorced and remarried.

Find a responsible estate administrator.

When you die, your estate administrator or executor will administer your will. You must hire someone accountable and capable of making decisions.

Your spouse is not necessarily the greatest option, as they might be extremely affected by your demise.

You should consider how the emotions surrounding your death will influence this person’s decision-making skills.

If you anticipate any problems, consider other competent candidates. You could name a close friend or family member whom you trust to act impartially on your behalf.

Update your insurance

Life insurance and annuities, like retirement funds, pass directly to your specified beneficiaries. If you have life insurance, ensure your beneficiaries are up-to-date and accurately named.

In terms of timing, this could be the most crucial aspect of your estate plan. Your heirs will require instant access to some of your assets to meet their basic requirements and organize for your burial.

Draft your will

Everyone above the age of eighteen should have a will. This is because it is the rulebook for distributing your possessions, which may avert havoc among your heirs.

It’s best done as soon as you’ve completed all of the above-mentioned documentation. Your list of assets will make it easy to determine who receives what.

A will might appoint a guardian for minor children and specify who will care for your pets. You can also give assets to charitable organizations in your will.

Wills are generally affordable estate-planning documents to create. Your wills and trust attorney Largo will assist you in making a will for a small fee, depending on the complexity of your assets and the geographic region.

You can also create your own will using online tools or software.

When you make a will, sign and date it in front of two unrelated witnesses, who should also sign it, you should then get it notarized.

Finally, ensure that others are aware of the document’s location so that they can access it when necessary.

Simplify your finances

If you’ve changed jobs in the past, you may still have multiple 401(k) retirement plans or IRA accounts with previous companies. If this is the case, you should consider combining these accounts into a single individual IRA.

Consolidating accounts provides better investment options, reduced fees, a more comprehensive range of assets, less paperwork, and easier management for you and your heirs.

Tricks to Fast Track Probate Proceedings

Probate proceedings for some estates might last several months or even years. Unfortunately, you don’t want this, do you?

You want the inheritance to be passed on to the beneficiaries as soon as possible. If you are a beneficiary, you do not want to be stuck in a scenario where you cannot get the assets. While this process is often slow, there are several things you can do to speed it up.

These things include:

Work with an experienced wills and probate attorney

Hiring a qualified probate lawyer can be the difference between a simple and swift probate process and one fraught with frustration and delays.

Work with an attorney who will speed up the process and help you obtain probate within a few weeks. An experienced attorney will direct you in the right direction, and help you make the right decisions.

Many people make the mistake of wanting to save money by doing everything by themselves. This is wrong.

The right thing to do is to work with an experienced professional who will point you in the right direction and help you save time and headaches.

Find out the debtors and creditors as soon as possible

If you are the executor of an estate, one of your responsibilities is to swiftly identify the deceased’s creditors and debts. The most obvious bills and expenses that you, as the Executor, must pay before distributing the legacy to the recipients are IRAs and credit card companies.

Once you acquire probate, you should pay them as soon as possible.

Take charge

If you are the executor or administrator of the estate, only you should interact with your probate counsel. Do not let family members or beneficiaries dictate to the probate lawyer what to do.

Remember that probate lawyers can only accept directions from the executor or administrator. If other family members insist on having a say, your probate lawyer has the right to discharge himself, especially if there are contradicting instructions and competing demands.

If you are not in command and allow everyone else to have their opinion, there will undoubtedly be a delay that you are trying to avoid.

File estate tax as early as possible

If the Internal Revenue Service Form 706 must be completed, the IRS will normally take at least six months to complete their evaluation, which does not include any time required to fix errors on the form.

You can close probate sooner if the personal representative gathers the information needed to complete Form 706 early in the probate procedure. The personal representative must verify that Form 706 is accurately completed and sent to the IRS.

Even if an estate is not obliged to submit the Form, it may need to file a state estate tax or inheritance tax return.

To avoid delays, you should file as soon as possible. If you are confused about how to go about it, get the input of your attorney or any other professional.

Pay attention to the unusual assets.

Certain types of difficult-to-value property may cause probate to be delayed. These assets may include:

  • Collectables
  • Complicated property or business rights.
  • Patents and other intellectual property
  • Extremely illiquid property

In such a scenario, you need to keep your attorney close to you to ensure that these assets do not prolong the probate process. The attorney will analyze the assets and determine how they will be dispersed or disposed of.

Separate the estate money.

As the Executor or Administrator, you must separate the estate funds from your funds. The right way to do it is to open a separate bank account and avoid combining estate and personal funds.

Remember that the beneficiaries are entitled to a thorough record of the executor’s activities. Having a separate estate account and accounting for estate funds will help the probate process move more quickly.

This is because you won’t need to explain many things. The beneficiaries will also have a better understanding of what is going on, and as a result, they won’t need to raise many issues.

Prepare your schedule of assets.

The Schedule of Assets is one of the most important documents you must fill in the Family Justice Court before the grant of probate or letter of administration is issued.

To save time, determine the deceased’s assets and assign a value to them. As part of the administration process, you should file the Schedule of Assets with the probate court.

If you are the estate’s executor or administrator, your probate lawyer will need a list of assets and a valuation of personal effects, real estate, or other assets.

You should provide your probate lawyer with copies of bank statements, title deeds, and insurance policies.

By doing this, you will fasten the process and have an easy time going through the process.

Get a court permission if necessary.

If probate beneficiaries do not get along or speak to one other, work with your probate attorney Largo and seek court authorization to proceed with the probate process.

By presenting files to the court as soon as possible and attending court as necessary, you increase the chances of completing the process on schedule.

The last thing you want is to bring together the beneficiaries so that they can agree on the contentious issues. When you do this, there is a chance that the process will take too long, and the beneficiaries might even disagree, dragging the process for years.

Parting shot

These are some tricks you can use to speed up the probate process. As mentioned, always work with an experienced attorney who knows what they are doing.

You should also research and find the necessary documents so that you can obtain them as soon as possible. It will even be better if you can get them before you start the process.

In some cases, you will find the beneficiaries don’t agree on some contentious issues. To speed up the process,don’t try to make them agree or make peace. Instead, get a court order to proceed with the probate process.

Reasons to Update Your Will

Have you already completed your estate planning? Perhaps you’ve completed your last will and Trust? Great! You are already ahead of the pack!

But when did you do this? Do you know when you should examine your Estate Planning paperwork and, if necessary, make adjustments or revisions to your Will?

Its recommended that you find a wills and trust attorney every four or five years and update your will. It’s also highly recommended that you amend your will after each big life event that impacts the course of your life, whether for the better or worse.

Some of the reasons to revise your will include:

Change in marital status

If you were married, you may have named your spouse as a beneficiary in your will. You should revise your will in the event of a divorce, wedding, or death. It is vital to remember that stepchildren are not legally entitled to your property, so keep this in mind when updating your documentation.

You are having health challenges.

Health changes can have an impact on your will. If you have been diagnosed with a degenerative condition or a life-threatening sickness, it is in your best interests to use this time to adjust the Will to your wishes.

Furthermore, any additions you had planned prior to your diagnosis should be implemented as quickly as possible.

Changes in your finances

This is another significant event that influences your will. A rise in wealth can push you into a higher tax category and result in greater taxes. In addition, you may want to raise the amount of money you leave for your beneficiaries.

In contrast, your financial circumstances may worsen, and you may be unable to contribute the amount you expected. At this stage, you must make changes to your will.

You change your mind about a beneficiary.

It is reasonable to change your mind and thoughts regarding the persons or organizations named as beneficiaries in your will, possibly owing to disagreements after you signed your will or for other causes, good or negative.

Remember, it is your money, and you have the right to change your mind about who receives the cash after your death.

If you feel that the beneficiary you mentioned in your will isn’t the right one, you should consider updating your will and having a new beneficiary.

You want to update estate laws.

Laws affecting estate taxes can and do change over time. When this happens, you should amend your will to reflect any relevant changes when they occur. Consult your wills lawyer to stay up to date on estate rules and how they affect you.

Your beneficiary or executor has died.

If your named executor or beneficiary dies, you must update the information to name a new executor or a different recipient for the asset or property.

Even if your will includes provisions for such occurrences, you may want to consider amending it.

To change the executor, you need to draft an addendum, which is a written amendment that modifies your Will. Make sure you understand your state’s laws so your codicil is valid. The number of witnesses and whether or not a notary is required varies by state.

How much does it cost to amend a will?

The cost of amending a Will varies depending on several things. Did you intend to hire a lawyer, or do you prefer to handle it yourself? How complex are the changes? Which state do you live in?

You should address these questions to accurately estimate the expense of changing a will.

Lawyers can charge a wide range of fees based on your location and other factors. Of course, it is possible to make modifications entirely on your own, but many people are hesitant to do so, fearing that they will not have done everything necessary to ensure the validity of their new will.

Can you make handwritten changes to a will?

Technically, you can make handwritten amendments to your Will. However, different states have different regulations governing how and when this is permitted, so you should proceed with caution.

Family members can easily challenge handwritten modifications in Wills, so if you want your Will and any amendments to be as strong as possible, avoid making handwritten alterations.

Can you make your will null and void?

Yes, you can do it, and there are a number of ways to go about it. Making a new Will or adding a codicil renders your prior one null and void. Of course, you could take drastic measures such as destroying all original copies or selling, giving away, or otherwise disposing of assets listed in the Will.

What next after updating your will?

Even after you’ve modified your will, you must ensure that you have the necessary signatures and witnesses to comply with state law.

You may need to get your Will notarized, and you should keep it somewhere safe. Make sure someone you trust knows where your will and other estate planning paperwork are.

Parting shot

It is a good idea to examine all of your Estate Planning documents periodically. Knowing what you need to do to update your Will (and when to do it) is critical.

Whether you’ve only had one major life event or you haven’t revisited your Will in years and a lot has happened, keeping your Will up to date is an important component of protecting your family when you die.

You should take your time when preparing and updating the will and ensure that you capture all the relevant information.

As mentioned, you should make it a habit to update your Will every 4-5 years or when there is a major life event.

To have an easy time, work with an experienced probate attorney Largo who will not only help you put the will together but also let you know when things aren’t going as planned.