How to Preplan for a Nursing Home

A Guide to Helping Manage a Loved Ones Finances as They Age

Tue, 31 Mar 2026 11:31:21 GMT

As loved ones grow older, handling money can become more complicated due to health changes, memory concerns, or reduced mobility. Even individuals who have been independent their entire lives may eventually need assistance making sound financial decisions. Thoughtful financial planning plays a critical role in protecting their stability while preserving their dignity. By taking a proactive and compassionate approach, families can reduce stress and avoid unnecessary financial setbacks.

Helping an aging parent or relative doesn’t mean taking control right away. Instead, it means building a plan together that adapts to changing needs. Strong financial planning creates clarity, prepares for future expenses, and ensures trusted people are ready to step in when needed.

Start Open and Honest Financial Conversations Early

One of the most important steps in effective financial planning is beginning conversations before a crisis arises. Early discussions allow families to talk calmly about income, bills, savings, debts, and long-term goals. When these conversations happen sooner rather than later, everyone has time to understand preferences and avoid rushed decisions.

Open dialogue also builds trust. By involving your loved one in the financial planning process, you help them feel respected and empowered. This shared understanding makes future transitions smoother if financial responsibilities need to shift.

Prepare for Medical and Long-Term Care Costs

Healthcare expenses are a major concern in later years, making advance financial planning essential. According to Forbes, someone turning 65 or older today has as much as a 70% chance of requiring some type of long-term care during the remainder of their lives. This reality highlights the importance of planning well ahead. Families should explore options such as long-term care insurance, Medicare and Medicaid benefits, and dedicated savings strategies.

Establish Legal Authority and Financial Safeguards

Legal tools are a key component of responsible financial planning for aging adults. Documents like a financial Power of Attorney allow a trusted individual to manage bills, banking, and investments if decision-making becomes difficult. Having these safeguards in place prevents confusion and delays during emergencies.

Managing a loved one’s finances as they age is a meaningful responsibility that requires empathy, foresight, and structured financial planning. If you’re ready to build or refine a plan for an aging family member, consider working with experienced professionals who understand both the legal and financial complexities involved. Contact Nash Bean Ford & Brown, LLP today to get trusted guidance and create a financial plan that protects what matters most.

Why Hiring Estate Planning Attorneys Is Crucial for Protecting Your Legacy

Mon, 24 Nov 2025 14:40:29 GMT

Planning for the future is one of the most important steps you can take to protect your assets and ensure your loved ones are cared for. Without proper guidance, managing your estate can become overwhelming, especially when it comes to navigating complex legal documents and decisions. Hiring an estate planning attorney can provide peace of mind, knowing that your wishes will be clearly outlined and legally protected.

Understanding the Role of Estate Planning Attorneys

Estate planning attorneys focus on helping individuals create comprehensive plans that reflect their financial goals and personal wishes. They guide clients through the creation of essential documents such as wills, trusts, and powers of attorney. Their expertise ensures that your estate plan is legally sound, reducing the risk of disputes or complications after your passing. These professionals also help families navigate tax implications, which can significantly impact the value of your estate.

Maximizing Benefits and Timing Decisions

One critical aspect of estate planning is understanding how timing can affect your benefits and financial decisions. According to Forbes, you can claim benefits any time between 62 and 70, highlighting the importance of strategic planning to maximize your financial security. Estate planning attorneys can help you evaluate the best timing for these decisions while considering other assets and retirement plans, ensuring that you make informed choices that benefit both you and your heirs.

Minimizing Stress for Loved Ones

Proper estate planning not only protects your assets but also eases the burden on your loved ones during difficult times. By clearly outlining your wishes, estate planning attorneys help prevent confusion, disagreements, and delays that often arise when family members are left to make decisions without guidance. This foresight allows your family to focus on healing and supporting one another rather than navigating legal challenges. This planning provides peace of mind, knowing that your wishes are clearly documented and your family will have clear guidance.

Hiring an estate planning attorney is a crucial step for anyone looking to safeguard their legacy and provide peace of mind for their family. From creating essential legal documents to guiding key financial decisions, these professionals ensure your estate is well-organized and protected. With expert guidance, you can confidently plan for the future while minimizing stress for your loved ones. If you need an estate planning attorney , contact Nash Bean Ford & Brown, LLP today.

Estate Planning for Unmarried Couples

Fri, 21 Nov 2025 17:05:09 GMT

If you are in a committed relationship but have decided not to become legally married, you still need to plan to protect your assets for yourselves and your children. We know that complexities can pop up suddenly, so it is never too early to start a shared estate plan.

Because unmarried couples do not automatically receive spousal rights, there is a specific legal approach that needs to be taken that involves creating a will, establishing trusts and designating the surviving partner as the beneficiary on all financial accounts and insurance policies. It is highly recommended that you seek the advice of an experienced estate planning attorney to create all formal legal documents for you.

Here are some important steps you can take to protect those you love in the event of your passing or catastrophic illness:

Set up a durable power of attorney — This document gives your permission for your partner to handle all financial and legal decisions on your behalf if you are unable to do so. This document clears up any ambiguity in terms of who the decision-maker may be.
Create a living will with a proxy — With this document in place, your partner is granted permission to provide directions on your health care wishes in the event you need a medical intervention. Naming your partner as your proxy gives them the authority to discuss your medical care with your health care providers. Without this in place, a medical professional can turn to your next of kin, who may not be aware of your wishes.
Establish joint ownership of property — Clearly defining what an unmarried partner's rights are to shared property after the death of the other partner is crucial. For example, if you own a home together, you will need to establish joint tenancy so that the surviving partner can continue to own the residence. This means that the property automatically falls to the surviving partner without going through probate.
Have a cohabitation agreement in place — Similar to a prenup, this legal document details the responsibilities and rights between an unwed couple if the relationship ends. Some areas to be agreed upon are how property and debt will be distributed, who will care for any minor children and what the ongoing financial support for children or a partner will be. You may want to purchase life insurance to make sure that the surviving partner will be financially secure.
Name your partner as your retirement beneficiary — If you want your retirement account to be handed over to your partner, then you must designate that person as your beneficiary. If you do not take this step, you run the risk of having the funds enter as part of the estate and go through probate.
Include your partner as the executor of your will — By taking this step, you are assured that your final wishes will be carried out as you have specified. The executor should be a responsible individual close to you. They should be someone you can trust to distribute the contents of your will as you see fit.

For your peace of mind, discuss your estate planning goals with your partner and retain a qualified estate planning attorney to handle all the legal requirements. A plan is essential to ensure that your partner and family are protected.

Is this your situation: Family Member Showing Signs of Dementia

Mon, 07 Jul 2025 15:41:40 GMT

One of the saddest things we can experience is the cognitive decline of a loved one, whether it's a spouse, parent or sibling. What makes it even harder is that person's need for help with finances and with activities of daily living. It's worse still if he or she refuses this help despite the fact that he or she desperately needs it. There is no easy solution, but there is a way to help. With the appointment of a legal guardian (also known as a conservator), your loved one can get the help that he or she needs.

A guardian is either a family member or a paid professional who steps in to take over financial decisions, personal care decisions or both.

Two things have to happen for a legal guardianship to be established

A judge must be given proof that:

1. The person with cognitive declines is truly unable to make competent decisions for him- or herself, and

2. The person who wishes to become the guardian has the ability to be a competent guardian.

In order to be appointed as a legal guardian, that candidate has to have a care plan in place that ensures the person with Alzheimer's or other dementia is:

Living in a safe place that allows the person to maintain his or her dignity.
Free from financial exploitation.
Able to receive necessary medical care.
Able to receive necessary long-term care.

Obtaining legal guardianship is never a slam dunk. As mentioned earlier, competency must be established for the person petitioning for the appointment, and incapacity must be proven for the impaired person. A judge uses a wide range of criteria to decide whether people are no longer able to care for themselves.

There's a lot of paperwork involved in being a legal guardian, and many times, if it's a family member, that person might have to leave a job in order to take care of the financial and personal needs of the loved one.

If you are facing these issues on behalf of a cognitively impaired loved one, please contact us. We can walk you through the complex process of obtaining legal guardianship of a loved one.

Savvy Seniors Stay Ahead of Their Finances

Wed, 07 May 2025 14:25:08 GMT

If you live a long life, your chance of declining cognition gets worse. The statistics are stark: Among the over-65 cohort, 29% struggle to make wise and informed financial decisions. By that age, 11% are suffering from Alzheimer's, while a further 15% have mild cognitive impairment, which may demand compensatory workarounds to preserve their independence.

The decline only progresses. By age 82, the likelihood rises to 50% and by age 90 to 80%.

Still, retirees and their families can prepare themselves for the mental challenges of aging.

Warning symptoms

Are stacks of unpaid bills mounting up? Is it taking you (or your parent) too long to settle the invoices? Do you flounder when you must quickly calculate a tip for a restaurant meal? Is a house that was formerly shipshape getting untidy? Is a retiree who always used to be prudent about investing suddenly throwing caution to the wind and making speculative gambles?

It can be alarming for seniors to notice those traits in themselves or for their families to recognize those signs. Before financial calamity strikes, you must act for everyone's sake.

Retirees themselves should stay hypervigilant for financial scammers. Several tricks target the elderly, often to elicit personal information that exposes their accounts. Some of these include:

Posing as a Social Security or Medicare representative or a utility company
Pretending to be a grandchild in need of funds — may be online or by phone
Pyramid schemes
Counterfeit prescription or anti-aging products, such as for improving memory skills
Bogus telemarketing prizes
Keep your antennae up and warn elderly relatives and other vulnerable people. Make sure to monitor accounts regularly for fraud or unauthorized activity.

Simplify finances

When retirees are competently managing their affairs, it is still sensible to streamline accounts.

You might, for instance, limit accounts to one taxable, one traditional IRA and one Roth. You should be clear in your mind as to the function of each. Is it there for income or for emergencies to draw on? Or is it intended for legacies, such as for your children or grandchildren?

If you can automate your bill payments, it will save you the hassle of tracking, paying and balancing accounts. You can also arrange for direct deposits. Another useful resource is Social Security's own Representative Payee Program, originally authorized by Congress in 1939, which helps beneficiaries who are incapable of managing their Social Security income. Now dealing with almost 3 million recipients, the program enables a designated friend, family or an institution, like a nursing home, to direct the income toward food, shelter, bills or medical care. Leftover money goes to an interest-bearing account or savings bonds.

There are plenty of helpful budgeting tools available that retirees may find useful for keeping track of finances. A sampling includes:

BudgetPulse — import information manually from accounts
Budget Simple — free, intuitive interface
Age Well Planner — for creating budgets, planning and cutting spending, plus government resources
Mint — a popular tool for consolidating account information, with alerts for overdue bills or low fund levels
Daily money managers (DMM)

A DMM can be your financial butler and executive secretary, relieving stress and preventing errors. A DMM can perform many critical tasks, preventing them from falling between the cracks. Typical jobs include receiving and paying bills, managing mail, filing insurance claims, and taking on the drudgery of organizing tax return documentation. These providers are certified by the American Association of Daily Money Managers, which requires managers to pass a criminal background check and a written examination.

But ask some key questions before you leap. What are the fees for in-person or virtual meetings? Can you get monthly statements? How many communications are allowed? Are you charged each time? Are you protected against a data breach? Can your fees be refunded for unsatisfactory service?

You should discuss other strategies with your financial advisor or attorney, such as joint accounts or a financial power of attorney. Your advisor might also suggest an annuity for a limited portion (but not all!) of your assets.

Trying to Avoid Conflict in Inheritances

Thu, 13 Mar 2025 16:14:43 GMT

The trouble with inheritances is that you're not around to make sure everyone completely understands the how's and whys of your decision-making process. That is why having frank and honest discussions ahead of time is critical. When siblings have very different personalities, needs, and motivations this can be even more difficult. How can you keep your kids or other heirs from fighting it out after you're gone? Here are a few things to consider.

Start the conversation early and often. No, you don't need to have the conversation with your five-year-old, but once your children are adults, it is time. Talk to them about your wishes for your estate. Establish someone who can be an executor who is likely to be responsible and not instigate arguments between siblings and families.

Establish your wishes in writing. Now that you've had the difficult conversation with your family, it is time to put pen to paper. This is where you should consult a legal expert who can help you craft a will that can work for your estate and, hopefully, keep the peace between your children or heirs.

Understand the clarity of communication. For example, there is a difference between saying that each child will get an equal portion of items from the estate and specifically stating how each of their inheritances will break down in value. There may also be inequity between each child's lifestyle which facilitates a different process between them. Even if you're trying to create scenario that works best for each individual, that sense of fairness will be difficult to overcome.

Know the difference between fair and equal. To this end, it is critical that you and your children understand the difference between fair and equal. Equal is giving each child a stake in the house so, after your death, it is sold and the profits split. Fair might be willing the home to your youngest child when your older children are already established in their own homes. You could, then, offer an asset of similar value to the oldest.

Do you want to make sure that your family is taken care of in the most fair and equitable way? Our experts can help you establish the right process for your inheritance to avoid major conflicts between family members, so call today!

How to Prepare For Your First Estate Lawyer Meeting

Mon, 24 Feb 2025 17:25:57 GMT

Meeting with an estate lawyer for the first time can be a daunting task. However, with proper preparation, you can make the most out of your initial meeting and ensure your estate planning needs are met effectively. This guide will walk you through the necessary steps to prepare, helping you feel more confident and ready to discuss important decisions regarding your future and your loved ones' well-being.

Gather Important Documents in Advance

First and foremost, gather all essential documents that may be relevant to your estate planning. This includes bank statements, deeds, titles, and any existing wills or trusts. Having these documents on hand will provide your lawyer with a clear picture of your current assets and liabilities. According to Legal Zoom, only 32% of Americans have a will, which highlights the importance of starting the estate planning process early. Your estate lawyer can help create or revise these documents to reflect your intentions accurately.

Define Your Estate Planning Goals

Before your meeting, spend some time thinking about your goals and priorities. Consider what you want to achieve with your estate plan—whether it's minimizing taxes, providing for loved ones, or charitable giving. Make a list of specific questions or concerns you have about the estate planning process. This reflective exercise not only helps structure your meeting but also ensures you don't overlook essential considerations. Communicating your wishes clearly will empower your attorney to craft a plan that aligns with your vision.

Consider Family Dynamics and Potential Challenges

Finally, come prepared with information regarding your family dynamics and any potential issues that might arise. Discussing sensitive matters, such as family disputes or specific care needs, is crucial for creating a comprehensive estate plan. This can also include information about beneficiaries, guardians, or executors you wish to appoint. Open discussions about these

topics will help your estate lawyer offer solutions tailored to your unique situation and avoid future conflicts among your heirs.

Preparing for your first estate lawyer meeting involves organization, reflection, and open communication. By gathering your documents, clearly defining your goals, and discussing family dynamics, you're setting the stage for a productive collaboration with your attorney. With these efforts, you can develop an estate plan that secures your legacy and provides peace of mind for you and your loved ones.

If you're ready to take the next step in your estate planning journey, Nash Bean Ford & Brown, LLP is here to help. Contact our experienced estate planning attorneys today to ensure your future and your family's well-being are protected.

What's a Life Insurance Trust?

Wed, 04 Dec 2024 15:30:38 GMT

A life insurance trust is a form of irrevocable trust that invests the proceeds of a life insurance policy into a trust with designated beneficiaries. Most life insurance policies are owned by the insured. The money is paid when the insured dies, but the payment made to the beneficiaries is taxable.

Because a life insurance trust is owned by a trust, which functions as a separate entity from the insured, the beneficiaries do not owe taxes. Life insurance trusts are often used to avoid passing burdensome estate taxes onto the beneficiaries.

Understanding Estate Taxes

The federal government taxes your estate above a certain amount, based on limits set annually and subject to change. When the estimated value of your estate exceeds this amount, the excess amount if subject to the federal estate tax.

This tax is in addition to any income taxes and probate taxes or fees owed at the time of death, and they must be paid in cash within nine months of the death of the estate owner.

If you hold considerable financial assets, your estate may be subject to very high taxes, thus reducing the amount you can pass on to your heirs by a substantial amount.

Life Insurance Trusts: How They Work

An irrevocable life insurance trust has a grantor, the person creating the trust. A trustee is the person chosen to manage the trust. The beneficiaries are those chosen to receive the benefits of the trust.

The trustee purchases life insurance in the trust’s name, with you as the insured. The trust is typically named as owner and beneficiary. Upon your death, the money from the life insurance company is paid to the trust. The trust then pays any probate costs, legal fees and other fees related to the death and funeral expenses, and then distributes the remainder to the trust’s beneficiaries.

Benefits Of Life Insurance Trusts

Life insurance trusts aren’t subject to estate taxes. They also give you greater control of your assets, since you establish the rules and boundaries of the trust fund. A trust cannot be touched by creditors or the courts, so funds inside the trust are relatively secure.

There are a few things to note about life insurance trusts. They’re irrevocable, which means that once you set up the trust, you can’t change it. Be certain of how you wish to create the trust and the ground rules regarding the management and distribution of funds.

Life insurance trusts aren’t for everyone, but they do offer another option to minimize estate taxes.

Tax laws and tax rules are constantly being updated and interpreted. This article contains general information, so please discuss your individual situation with a trusted tax adviser before making tax decisions.

Legal Steps to Take Before a Medical Procedure

Thu, 07 Nov 2024 19:10:06 GMT

You never know when life will pull the rug out from under you in the way of a lost loved one. You may be forced to make decisions you don’t have the answers for, or even worse not be allowed to make decisions because you or your loved ones haven’t prepared end-of-life documents. Anyone over the age of 18 should have estate planning documents drawn up by an attorney to help your family answer those important and difficult questions.

4 Estate Planning Tools You Need Before a Trip to the Hospital

Going to the hospital or doctor may seem like an ordinary thing, much like driving a car, or crossing a street. However, the dangers of these everyday activities can lead to tragedy and loss. It’s important to ensure your affairs are in order in case of these losses.

Healthcare Power of Attorney

Another supporting document to have prepared is the HIPAA authorization form and the Living Will. Having these tough talks can be grueling but allowing someone to help guide you can make the process less scary.

Durable Property Power of Attorney

A Durable Property POA helps define who and how your financial property is taken care of if you were to become incapacitated or couldn’t take care of things for some reason. It assigns an agent or proxy to act in your place once you are no longer able. This includes controlling not only your assets, but any debts or real estate or other property.

Last Will and Testament

A last will and testament is a legally binding document that allows you to have control over who and how your assets are distributed when you pass away. Although it is an excellent starting place, having just a will is not usually enough. There is a process to the distribution of your valuables called probate. This process is often time-consuming and expensive. It involves filing your will and documents with the local courthouse, as well as collecting proof of your assets and liabilities. Putting a trust in place can help you avoid the probate process.

Revocable Living Trust

A trust allows an appointed person to take care of designated property, including money, assets, real estate, businesses, and anything else of value that you specify. This is helpful if you have younger children who may not be ready to take responsibility for those assets yet. Having a trust also helps you avoid the lengthy process of probate. There are many kinds of trusts which can be individualized to your specific life and goals.

Resources: https://www.guttmanlaw.com/blog/2022/april/what-legal-steps-do-i-need-to-take-before-a-medi/

Leaving a House to Heirs

Tue, 15 Oct 2024 16:09:35 GMT

Let's face it, your children may have different ideas about whether to live in, sell or keep the house you own. To prepare for a smooth and efficient transfer of your home, think about your goals and financial situation. Ask your family about their expectations. Anticipate that the conversation, though necessary, may be difficult. You might want to recruit a neutral friend or family member to help facilitate the dialogue.

In the discussion, you want to explore taxes and transaction costs, avoid hurt feelings and not disrupt good relationships. If your home is sold, legal fees, taxes — based on the house's value at the time of your death — and other transaction costs will be incurred. As several states have estate tax exemption limits far below the federal level, heirs may have problems paying the state estate tax bill.

If you still have a mortgage at the time of your death, the mortgage's sale clause may be triggered. If your heirs want to keep the house, other assets in the estate might need to be sold to pay off the debt; additionally, the inheritor would need to qualify for a new mortgage.

Consider your options

Here are some ways to smooth the inheritance associated with a house:

Add heirs to your deed as co-owners. This way, they will take ownership when you die. There are some downsides to this approach:
You'll want to understand how much you can give another person free of gift tax in any one year and in a lifetime.
It is also important to remember that assets gifted during your lifetime don't receive a step-up basis, which means the inheritor may get a larger tax bill.
The home becomes an asset, and if the child has financial trouble, the home may be put under a lien.
Create a will in which you decide who inherits the property. The downside to this approach includes probate, a legal process that may create a privacy concern.
Establish a revocable trust, which allows you to retain control of your home during your lifetime while specifying how and when the asset (along with the rest of your assets) will pass to your beneficiaries. This approach has many benefits, including:
The trust acts as a substitute for a will, enabling assets to be privately and quickly distributed without probate.
You'll retain full control and use of your home but know that you’re providing an efficient distribution of the asset.
Move the house out of your estate into a qualified personal residence trust. Your home is transferred as soon as the trust is established; you retain the right to live in the house (and are responsible for maintenance and taxes) but reduce the gift tax costs. A QPRT includes a date after which ownership is transferred to the beneficiary. If you want to continue to say in the house, you will need to negotiate a lease with the heir. QPRTs are most often used for vacation homes.
Create a transfer-on-death deed. A TOD allows you to avoid probate while giving your heirs a step-up basis for tax purposes. TODs may be less expensive than setting up a revocable trust. The drawback is that only individuals (like your spouse, child, other relative, or friend) or charities can be beneficiaries; there’s no way to skip a generation to pass the asset to grandchildren.
Consider selling the home and renting another. Tax implications are among the considerations here.

It’s natural to want your home to stay in the family but think not just about your needs but about those of your heirs. Working with professionals can help you achieve an outcome that's in everyone’s best interests. Give us a call today at Nash Bean Ford & Brown and we'll help navigate some of these tough life decisions.

Common Estate Planning Documents Explained

Mon, 30 Sep 2024 16:05:57 GMT

When you leave the office of Nash Bean Ford & Brown after creating your personalized estate plan, you’ll receive several documents that you’re told to put in a safe location. Understanding the nuances of these documents can be tricky, with legalese and formatting, as well as all the fine details included in them. So here, we’ve explained a few of the basic ones you may walk away with.

Last Will and Testament, or Trust

No one likes to consider a world without themselves in it. However, planning for that inescapable end can bring peace and comfort not only to you, but also your family members once you’re gone. Many people start their estate planning with the drafting of a will.

A will is a legally binding document that allows you to have control over who and how your assets are distributed when you pass away. There is a process to the distribution of your valuables called probate. This process is often time-consuming and expensive.

Property Power of Attorney

A Property POA helps define who and how your financial property is taken care of if you were to become incapacitated or couldn’t take care of things for some reason. There are different kinds, including durable and limited. Which one is better for you will depend upon your preferences and assets, so we suggest consulting with an expert.

Healthcare Power of Attorney

A Healthcare POA helps define what you’d like to see happen medically once you are unable to make decisions coherently anymore. This document ensures that the agent you choose to represent you will respect your legal wishes on how you’d like to be cared for. Having these tough talks can be grueling but allowing someone to help guide you can make the process feel less scary.

Living Will

A Living Will document goes more specifically into the decisions you’d like made regarding long-term care, end-of-life care, medical procedures, and other end-of-life matters. This brings up some difficult conversations but can be made easier with guidance.

Advanced Healthcare Directive

Another document often included in Healthcare Directives is the HIPAA authorization, which stands for Health Insurance Portability and Accountability Act. This law requires your signature for anyone to view your medical records.

All of these documents safeguard the life values and legacy you hope to pass on, so consulting with a professional on which documents are best suited for you is highly recommended. Reach out to us at Nash Bean Ford & Brown to set up a free consultation!

Written by Valerie Kline

Marketing Coordinator and Office Assistant

Nash Bean Ford & Brown, LLP

Attorneys and Counselors at Law • Est 1857

Resources

Estate Planning Guide and Checklist for 2024 (ncoa.org)

4 essential estate planning documents | LegalZoom

Common Living Trust Problems

7012254372 — Tue, 24 Sep 2024 19:03:33 GMT

Most living trusts (also known as revocable or grantor trusts) have two administrative phases. In the first phase, you administer the trust. In the second phase, after your death, the named trustee takes over its administration. In this way, the trust is a contractual relationship established between you and the trustee who is charged with managing it.

The legal processes the trustee faces can be complicated. Failure to administer correctly can expose the trustee to liability for damages to your estate. Common trustee tasks include notifying beneficiaries, compiling and providing inventories of trust assets, and listing all assets titled in the trust's name with each asset's market value.

To assist your future trustee, take these important steps when setting up your living trust:

Fund your trust. Ensure that your trust is funded by transferring ownership of your assets from your name to the trust's name. Assets still titled in your name at the time of your death will have to be probated.
Name a beneficiary. A viable trust agreement requires at least one beneficiary. Should a beneficiary pass away or become incapacitated after the trust's creation, you must amend the trust accordingly. Without updates, the trustee might need court direction.
Protect beneficiaries. Draft your trust to shield beneficiaries from lawsuits or divorce. This can help safeguard assets from creditors or divorce proceedings that may affect your children or grandchildren.
Choose a trustworthy trustee. Select a trustee you trust to follow your wishes and fulfill their fiduciary responsibilities faithfully. It's also important to designate at least one successor trustee. The initial trustee may prove unsuitable or otherwise unable to do the job. Having an alternative ready will smooth the process for all involved.
Document the trust. It's crucial to have your trust in writing. Oral agreements, even among family and friends, are not legally binding, particularly for trusts involving real property.
Provide specific directions. Clearly state the conditions under which distributions should be made to beneficiaries or on their behalf. If the trustee has discretion over distributions, misunderstandings and disputes can arise, with beneficiaries potentially believing they are entitled to distributions that the trustee deems inappropriate.
Include a pour-over provision in your will. Incorporate this clause into your will to ensure any remaining assets transfer to your trust upon your death. Without it, assets not already in the trust will need to go through probate, potentially leading to improper distribution.
Regularly review your trust. Annually review your trust to ensure its terms still reflect your estate planning goals and adjust as necessary.

The difference between trusts and wills

Trusts and wills are both legal documents that convey how to distribute your assets after your death, but they differ in when they take effect, whether the assets will go through probate, who manages your assets and when assets will be distributed.

Like a will, the validity of a trust can be challenged on various grounds — due execution, lack of capacity, undue influence, fraud and duress. It's also not uncommon for beneficiaries to allege that a trustee hasn't properly handled trust assets, has failed to properly maintain trust property or hasn't communicated adequately. Because trustee duties are so complicated and the stakes for failing to properly administer a trust are so high, it is a good idea to consult with a trust lawyer when drafting a living trust.

3 Common Myths About Estate Planning Lawyers

Mon, 26 Aug 2024 14:08:54 GMT

Estate planning is a crucial aspect of preparing for the future, yet many people harbor misconceptions about what estate planning lawyers actually do. These myths can often deter individuals from seeking the professional help they need to safeguard their assets and provide for their loved ones. In this blog post, we will debunk some common myths surrounding estate planning attorneys, helping you separate fact from fiction.

Myth 1: Estate Planning Is Only for Wealthy People

One pervasive myth is that estate planning is only for the wealthy. According to Legal Zoom, 77% of American adults believe that estate planning is important for everyone regardless of their wealth. This statistic underscores the reality that an estate planning lawyer can assist people of all financial backgrounds in organizing their affairs. From creating a will to setting up a trust, estate planning attorneys ensure that clients' wishes are honored.

Myth 2: Estate Planning Lawyers Only Ever Draft Legal Documents

Another common misconception is that estate planning attorneys are only involved in drafting legal documents. While document preparation is a significant component of their services, their expertise extends far beyond this. Lawyers who offer estate planning also provide valuable advice on tax implications, asset protection strategies, and even healthcare directives, providing a comprehensive roadmap for the future based on individual needs and circumstances.

Myth 3: Estate Planning Isn’t Worth It Because It’s Too Expensive

Some believe that hiring an estate planning lawyer is too expensive and thus not worth the investment. The truth is that the cost of professional legal advice varies widely, and the long-term benefits often outweigh the upfront fees. By ensuring your estate is well-managed and legally sound, a lawyer can help you avoid costly mistakes and provide peace of mind, which is invaluable for anyone setting up plans for the future.

Misconceptions about estate planning attorneys can prevent people from taking essential steps to secure their and their families' future. Whether it is the belief that estate planning is only for the wealthy, thinking that lawyers merely draft documents, or concerns about cost, it is important to challenge these myths and understand the extensive value that estate planning lawyers bring. Seeking their expertise ensures that your wishes are met and your loved ones are protected no matter your financial status. If you need an estate planning attorney, consider reaching out to Nash Bean Ford & Brown, LLP today.

Join Us in Finding An "Answer to Alzheimer's" at the 2024 Walk to End Alzheimer's!

Tue, 13 Aug 2024 15:07:27 GMT

Walk to End Alzheimer's® is the largest event to raise funds and awareness for the care, support and research efforts of the Alzheimer’s Association®. It’s held annually in more than 600 communities nationwide, and our team is excited to participate this year. Nash Bean Ford & Brown, LLP, holds this cause close to our heart, as our clients and their families are often impacted by this devastating disease.

As the world's largest nonprofit funder of Alzheimer's research, the Alzheimer's Association is committed to accelerating the global effort to eliminate Alzheimer's and all other dementia. They have undertaken a multitude of diverse research initiatives working toward methods of treatment, prevention and, ultimately, a cure. Some of their initiatives include funding independent researchers worldwide, connecting researchers by hosting global forums, collaborating with government, industry, and academic stakeholders, creating guidelines for clinical trials that prioritize patient safety and communication, advocating for Alzheimer awareness, and more.

Currently, more than 6 million Americans are living with Alzheimer's and over 11 million family and friends provide their unpaid care. We need your help to end this devastating disease. You can make an impact with a donation or even joining our team. Your kindness and generosity truly make a difference in the fight against Alzheimer’s and all other dementia. Thank you for your support!

Click HERE to donate or join our team!

For more information on the Alzheimer's Association and their commitment to research, visit their website: Our Commitment to Global Research | Alzheimer's Association .

Talking to Loved Ones About Estate Planning

Thu, 20 Jun 2024 18:11:38 GMT

Many people are uncomfortable discussing with their loved ones how they plan to distribute their estates. Perhaps you don't want your children to realize how much they may receive after your death. Or maybe you think your choice of heirs could change in the future.

However, if you don't discuss your estate plans, disagreements and conflicts could erupt once the details are revealed.

For instance, after your death, siblings may resent each other if distributions aren't equal, even if one child is substantially less financially secure than the others. Or, if you're remarried, children from your first marriage may feel anger about assets you leave to your second spouse.

At that time, you won't be able to explain your thoughts and wishes regarding the distribution of your assets.

Discussing your estate plans gives you an opportunity to inform heirs about the distribution of your estate and explain why you decided to handle matters in a certain way. You can go into specific detail, informing heirs how each asset will be distributed or you can give a general overview of your estate plan.

If you've selected one heir as executor, explain why you chose that individual. As an alternative, you can leave a personal letter with your estate planning documents explaining these items.

Even if you reveal your plans to heirs, you may still want to include a personal letter with information about benefits, special wishes, who should receive personal effects, your cemetery and funeral preferences and the location of important documents.

At a minimum, specify where to find:

Income tax returns.
Life insurance policies.
Other insurance policies.
Investment details.
A list of household contents.
Outstanding loan documentation.
Automobile titles.
Important warranties and receipts.
Bank account information.
Credit card details.
Information about your home.

This letter will help your heirs identify all assets and benefits and avoid speculation about your wishes. Preparing the letter will also force you to organize your records and make sure all important documents can be easily located. Since the information is likely to change, review the letter at least annually.

Your Children's Estate Plans

If you have a sizable estate that you'll be leaving to your adult children, your children probably need estate plans of their own.

To encourage them to plan, consider these tips:

Explain why estate planning is important. You don't want to dictate what they should do, just emphasize the need for estate planning. When your children encounter major life events, such as marriage, divorce or a child's birth, remind them to review their estate plans.
Coordinate estate planning across generations. If you have a substantial estate, you may want to coordinate your planning efforts with your children's plans. For instance, if your children also have substantial estates, they may prefer that their inheritance be distributed to your grandchildren instead. A coordinated effort can help minimize taxes.
Encourage your children to get important estate planning documents in place, such as a will, an advanced health care directive or a power of attorney.

Estate Planning Tips for People Under 40

Tue, 21 May 2024 20:13:27 GMT

No one likes to think about estate planning, but it’s important for adults of any age to have their affairs in order, especially if you have family or loved ones. As the old saying goes, “hope for the best, prepare for the worst.”

Here are just a few stress-free tips to help you plan your estate.

Involve your loved ones

They may not like the conversation, but it’s necessary to make your requests known to your family and allow them the opportunity to input their wishes, also. Explaining your plan to your family may potentially lessen their burden when it’s time for them to make tough decisions.

Start early

It’s better to have a plan and not need it, than it is to leave your family unprepared should anything unfortunate happen. Even if you’re earning an entry level salary or paying off debts, it’s still important to make your wishes known. This is particularly vital if you are married or have young children.

Meet with an estate planning professional

When you meet with an estate planning professional, you’ll work out all of the finer details. Do your research ahead of time (learn the difference between a will and a trust, for example), so you can come up with a comprehensive list of questions for the attorney. They will walk you through the necessary components of an estate plan and make sure your plan is compliant with the law.

Update your estate plan annually

Your life can change dramatically in the course of a few years. Make sure your will is up-to-date and accurately reflects your wishes. Most professionals recommend updating your estate plan annually so that you can be ready for any of life’s twists and turns.

Regardless of your age, it’s important to plan ahead and spare your family the hard decisions involved in handling your affairs. Call Nash Bean Ford & Brown, LLP to start planning today, and protect yourself and your loved ones.

Living Happily Ever After: Where Should I Retire

Thu, 09 May 2024 21:32:05 GMT

Before you retire, one of the first things to ask yourself is if you should even move at all. If where you live now is affordable, close to family and friends, and provides access to the activities you enjoy, then staying in the community you are familiar with may be the best move. Another reason for staying close by is if you are living mortgage-free. In this scenario, consider staying local but downsizing to reduce the cost of utility, maintenance and repair bills.

If you have decided that moving is right for you, then the next question to ask is where to retire to. This decision will have a major impact on your financial situation and quality of life, and all factors should be carefully thought out. Here are some criteria to help you find the right retirement spot for you:

Cost of living

According to some estimates, you can expect to spend between 55% and 80% of your current income in retirement. Low housing costs are a major part of the equation. Once you are on a fixed income, you will want to stretch your retirement budget as much as possible. You may have your heart set on retiring to a Hawaiian island, but be aware that Hawaii is one of the most expensive places to live in the country, as are New York, California, Oregon and Massachusetts. More affordable states include Mississippi, Oklahoma, Arkansas, Missouri and Tennessee.

Quality of life

Experts encourage retirees to choose destinations that have quality hospitals and assisted living facilities, adult day services, and ample wellness and fitness opportunities. Places with thriving economies should also be considered in case your financial situation changes and you need to find a job. Many retirees are finding the amenities offered by college towns to be a real draw. These towns usually have excellent cultural, recreational and educational resources. Some colleges even offer classes to senior scholars free of charge or for a minimal fee.

Tax environment

Don't be fooled here. Some states look very inviting because they don't have an income tax, so it looks like a free ride. But every state has to raise money one way or another, and if the taxes don't come from income, they'll come from somewhere else. Naturally, you'll want to consider your new tax environment and your financial situation generally. However, your best bet is to talk to a financial professional who is well versed in state and local laws.

Summers and winters

Think about the climate, particularly if you live in a region that receives cold and rainy weather for a good part of the year. The warmer Southern climes may be attractive to you. If you enjoy sports and outdoor activities, consider a locale where you can play golf or fish all year round to keep you fit. Of course, many places with warm winters can have blistering summers.

Travel plans

Depending on how far away you settle from your family, you will need either a reliable car for shorter distances or a nearby airport to take you longer distances. The airport should be accessible so that your family can come to visit without too much stress.

Start with a trial run by spending several weeks living in a locale before relocating. A trial run will help you decide whether the location is a fit for you in terms of your expectations. Living in a home in the community is vastly different from vacationing in a hotel there. When you rent a home in the area, you will need to carry on all the activities of everyday life, such as grocery shopping, finding restaurants and interacting with people who live in the community. The idea is to immerse yourself in the lifestyle to see if it's right for you. Once you go back home, subscribe to local media to keep up to date on the latest happenings in the area.

Retirement is a time when you must make important decisions in order to successfully transition into this next stage of life. Contact a financial adviser for their expertise and experience in guiding you through this exciting time.

Younger Generations Can Help Older Ones With Estate Planning

Wed, 03 Apr 2024 14:10:55 GMT

How do you approach a conversation with your parents about estate planning? For sure, you don't want to nag or become a nuisance, creating suspicions about your motives. By being open and honest about your concerns, you can allay their fears that this is only about interest in their money. Talk about the opportunities they wish they had as children that they'd want their kids and grandkids to have — the stories or lessons they want their heirs to hear and advice about finances they want to pass down.

Your parents understand their estate, so during your chat, ask them whether they have a list of names and contact information for doctors, attorneys, financial planners and accountants, insurance brokers, clergy and their closest friends.

Take care of the paperwork

Is there an existing will, and if so, is it up to date? Is it still a true reflection of your parents' wishes? Let them know it would be good to establish where they keep their will or trust and find out who they've appointed as the executor. Did your folks create an online will? Let them know it's a good idea to have it reviewed by an attorney.

Bring up the topic of power of attorney should they become incapacitated. Mentioning their end-of-life wishes, though an uncomfortable topic, lets them have a voice regarding any of those decisions. You might want to obtain the relevant forms from an elder law attorney, a hospital or a nursing home. A medical or advance directive explains the sort of care they'd like and whether life support should be used to keep them alive. Open the subject of appointing a health care proxy. Tell them about creating a living will that contains instructions for specific conditions, such as terminal illness, or a more explicit directive about a physician's orders for life-sustaining treatment.

Ask about life insurance. Is there long-term or disability insurance or burial or funeral insurance? Find out the names and contact details of insurance brokers and where your parents keep the documents, and make certified copies if needed. While discussing where to locate documents, find out where your parents' tax return paperwork is also stored.

Documents are important in estate planning, so making a list of financial accounts — e.g., bank and mutual funds, credit cards, store accounts — will help you. Also, ask them whether they are organ donors. What about a memorial service? Do they want to be buried, cremated or have their remains laid to rest in an alternative way?

Work with everyone

Invite other siblings and family members — new spouses, stepchildren and maybe even former spouses — to be part of the conversation. Gently point out that when you don't have conversations about scenarios and legal delegations of decision-making authority, default rules from state law take over that may not reflect their wishes. Note to your folks that not having their own desires properly documented may result in you and their other heirs having to engage in expensive and time-consuming court processes.

Talking about death invokes difficult feelings, and it's understandable that you don't want to think about your parents' mortality. You certainly don't want your dear relatives to think that you're waiting for them to die — or trying to grab the biggest piece of the inheritance pie. Having a plan to care for their money and property makes it possible to talk about their legacy and about them having a voice regarding their end of life. Let your parents know that building a legacy through their children and grandchildren will establish a foundation for estate planning. And showing them that you are there to do what you can to ensure their wishes are honored will go a long way in allaying their fears.

Beware of State Estate and Inheritance Taxes

Wed, 27 Mar 2024 21:47:30 GMT

Estate and inheritance taxes are both types of taxes levied on the transfer of property at death, but they operate differently: An estate tax is levied on the estate of the deceased while an inheritance tax is levied on the heirs of the deceased.

There is a federal estate tax, which generally affects only the wealthiest Americans. The federal government does not levy an inheritance tax. However, in 2023, 12 states and the District of Columbia levied an estate tax, six states levied an inheritance tax, and one state (Maryland) levied both. That said, estate and inheritance taxes do not come into play when assets are left to a spouse who is a U.S. citizen.

State estate taxes usually are higher than inheritance taxes, and they can impact families in unexpected ways. However, they generally come into play if the taxpayer considers one of these states their permanent home or if they have property there. This means that many taxpayers can unexpectedly find themselves owing thousands of dollars, especially when they inherit real estate that has appreciated over the years since it was originally purchased. Consider this statistic: According to the U.S. Bureau of Labor Statistics, prices for housing are 936.78% higher in 2023 versus 1967 (a $936,779.24 difference in value).

You need to be proactive.

So, what can be done to prevent this from happening?

Know the tax estate and inheritance tax thresholds in your state. These rates can change for various reasons. For example, the inheritance tax rate may vary according to the heir's relationship to the decedent or the rate may be adjusted for inflation, effectively lowering the amount of the tax.
In most states, estate taxes are progressive: The tax rate increases with the total value of the decedent's assets, but two states have flat estate taxes with a single tax rate. The highest top rates in the nation range from 16% to 20%. In addition, all states prevent smaller estates from being subject to these taxes by allowing certain exemptions from their estate tax. The lowest exemption is $1 million, and the highest exemption is $12.92 million.
Taxpayers who have estates near those limits can consider giving away assets to reduce the value of their estates. Alternatively, they could include a clause in their will stipulating that any amount over the exemption amount should be given to charity.
Be aware that:
You may be liable for estate taxes even if you live in another state. The determination is made based on where the property is located. In some circumstances, it may make sense to relocate to a state that does not impose estate or inheritance taxes.
In many states, married couples must create an irrevocable trust (e.g., a credit shelter trust) to take full advantage of the exemption amounts for both spouses. Similarly, living trusts, irrevocable trusts, grantor retained annuity trusts, and certain other trusts can be set up for children and other beneficiaries. Irrevocable trusts allow property to pass without an official property transfer, thus avoiding taxation. These trusts need to be part of your estate plan.
Cash received as an inheritance is not taxable. However, if the cash later generates income, that income may be taxable.

Taxpayers with property, especially real property, located in states with high estate and inheritance tax rates should consult a tax professional to ensure their estate plans are as robust as possible.

This is just an introduction, and rules from state to state can change. Be sure to keep in close touch with tax and estate planning advisers to make sure there are no unpleasant surprises.

Is this your situation: Worried About Making Medical Decisions?

Tue, 19 Mar 2024 16:51:48 GMT

Medical decisions are highly personal choices, and they are relatively easy to make when your mental faculties are still with you. But with the possibility of illnesses that can rob you of your decision-making skills, how do you know that your personal wishes are being considered while family members are calling the shots about your healthcare? Before you are unable to establish these decisions in writing, it is important that you do all you can to protect yourself. Let's take a closer look at some of the most basic options.

Living wills. The first step in the process is to make sure you have a living will in place. This document describes all of the things that are most important for you in terms of care when you are unable to make those decisions for yourself. The most basic information includes whether or not you want to be resuscitated or kept on life support. But it can go beyond that as well, up to and including what kind of funeral arrangements you would like.

Medical power of attorney . Going hand in hand with the living will is your medical power of attorney. For most people, your spouse will automatically be the individual with whom medical facilities and professionals consult in the event that you cannot make your own decisions. But there may come a time when this is no longer possible. Selecting someone you trust to make these decisions for you can be critical to ensuring that your wishes are met.

Advanced directives . In some states, these two things are combined to create a single legal document called an advanced directive. This is why it is important to work with a legal expert to make sure that you are creating and signing the correct information.

Direct conversations. Beyond all of the legal documents that will help cement your wishes for the future, it is essential that you begin having conversations with your loved ones long before you have the need for invasive care. It can be uncomfortable, to be sure, but it is necessary. Talk to your spouse, your children, your siblings, or anyone else who may be involved in your long-term care or future medical interventions.

Have you considered the planning for your living wills or medical power of attorney? Call the experts who can help you work through this process and provide peace of mind for your future.

Planning for a Disabled Child's Needs

Fri, 23 Feb 2024 17:57:52 GMT

Planning for a disabled child takes special consideration, especially in terms of estate planning. To be sure your child is cared for the way you would like, you need to get your affairs in order. By following the steps outlined below and consulting with a qualified professional who can help you design a plan that meets your unique situation, you can be assured your child will be well cared for if you die or become incapacitated.

Step 1. Create separate files for yourself, your spouse/partner and your child.

Each file should include the following:

Birth certificate
Social Security card
Medicare, Medicaid information
Other health and long-term care insurance information
Banking information
Copies of legal documents such as a will, health care directive and power of attorney
Life, automobile and other insurance policies
Deeds and mortgage documents
Marriage, divorce and death certificates (as relevant)
Military service records
Titles to real estate, automobiles and other property.
Information regarding funeral arrangements.
List of bank and brokerage accounts, including account numbers and detailed information about assets and liabilities
List of usernames and passwords
List of doctors, medications and allergies; details regarding medical history, etc.
List of emergency contacts, including contact information for the individual you wish to care for your disabled child as well as the counselors, mental health professionals and others who work with her/him
List of professional advisers (e.g., accountant, attorney, financial adviser, insurance broker)

Step 2. Write a letter of intent.

While a letter of intent is not a binding legal document, it is a valuable road map for outlining the life you would like your child to live. The letter of intent should outline your child's daily, weekly and monthly schedules as well as her/his likes and dislikes. It should also list the child's medications and allergies, etc. In addition, the letter should name the people you would like to be part of your child's life as well as anyone you would like to keep your child away from. The letter of intent should be updated annually and kept with your other estate planning documents.

Step 3. Begin the financial planning process.

Planning for funding your child's future needs is another important aspect of planning for her/his future. Your personal financial circumstances will dictate your planning, but it is important to consider these items:

Government benefits may be an important part of your plan. Be sure to document what and how much the child receives as well as how the funds are used. Other aspects of your financial plan may affect these benefits, so be clear about the parameters you need to work within.
Be sure your will names a trustee and a guardian.
Create a special needs trust. Once it is created, you can make the trust the beneficiary of your life insurance policy, etc., without impacting her/his government benefits.
Establish an Achieving a Better Life Experience account , which is a tax-advantaged savings account for individuals with disabilities and their families.). These contributions generally are not tax deductible for federal tax purposes, but some states allow a deduction.

Step 4. Plan for when your child becomes an adult.

Children become legal adults when they turn 18. This status comes with responsibilities and privileges such as the right to make their own health and financial decisions. Not all disabled children are able to assume these responsibilities, which makes it important for you to consider options such as legal guardianship or power of attorney. If the child does not consent to your retaining power over her/his decisions, a court may have to decide.

This article contains a brief overview of some items that must be considered if you have a disabled child. The goal is to have a plan in place that will ensure your child has the kind of life you wish for her/him in the event you die or become incapacitated. The best thing you, as the child's parent, can do is consult a tax and estate planning professional, like Nash Bean Ford and Brown, LLP, who can help strategize a plan that considers the child's unique issues as well as your financial situation. Give us a call today at 309-944-2188 for more information or to set up your free estate planning consultation!

Heirs and Spares: Contingent Beneficiaries

Wed, 14 Feb 2024 18:05:59 GMT

When the Titanic went down in 1912, several women chose to remain on board and drown with their husbands; most famously was Ida Straus, whose family co-owned Macy's Department Store. Although Titanic-scale disasters are extraordinarily rare, you should nevertheless include a contingency beneficiary in your will or trust in case life or death throws you a curveball.

The contingent's role

If primary beneficiaries are unable or unwilling to receive an asset left to them in a will or trust, the next-in-line contingent steps in. The primary might be unlocatable or dead. Contingent beneficiaries serve a similar function when it comes to life insurance and bank, security, retirement, college savings and health savings accounts. In some states, even vehicle and real estate owners can designate contingents.

While family and friends are typical recipients, contingent beneficiaries can be people, organizations, estates, charities or trusts. However, note that minors and pets cannot assume the role, because they have no legal power to accept assigned assets. A child requires a guardian for the assets; pets would require a trustee to administer funds for their lifetimes.

All the primaries must be dead or have renounced their share before distributions are made to contingents. If one primary dies, though, the assets are divided among the other remaining primaries.

Why you should name contingents

You can avoid the time and expense of probate by specifying contingents. Rest assured that they have no rights over your assets while you are alive and may not even realize they are beneficiaries. Unless an account is irrevocable, you can freely change them. In fact, you should regularly review your estate plans, including your contingents, to confirm they are up to date with your life events — births, deaths, marriages, divorces, etc. For example, after a divorce, children who were formerly contingents may now become primaries. Or you may simply have a change of heart, which is entirely permissible.

You can also attach strings that a primary must meet before they receive an inheritance from you. Preconditions run the gamut, from graduation to religion to marriage to staying out of jail to giving up smoking! If the person you select to inherit ends up as a chain-smoking jailbird, a contingent beneficiary might take his or her place.

Many testators also select a favorite charity or nonprofit as the ultimate contingent. Rather than four or five heirs down the pecking order, they prefer to designate a church or college over some distant family member.

Facing Armageddon

Back to the Titanic. It is not unusual for spouses or family members to die in rapid succession, albeit rarely in ocean liner disasters. Still, airplane crashes and highway pileups happen.

Adding to the turmoil, parties might have named each other as reciprocal primary beneficiaries. To preempt inheritance chaos, attorneys use Titanic clauses, particularly for high net worth clients, those with young children or those in second marriages. Also called an "all dead" clause, it kicks in if all your primary and contingent beneficiaries die in one swoop. Here again, nonprofit institutions could outlast everyone.

Couples in second marriages may also own property with joint rights of survivorship, meaning a house might arbitrarily end up with the children of whichever parent is assumed to have died second and thereby cut out the step-siblings.

Many states rely on the Uniform Simultaneous Death Act, which essentially provides that if two people die within 120 hours of one another, each will be deemed to have predeceased the other. In other words, their respective estates are allowed to pass assets to heirs as contingents rather than transferring them back and forth as primaries, which could theoretically involve multiple probate processes.

This explains why many wills mandate that a beneficiary survive the will writer for a certain time period, up to several months. The consequence is that the asset passes as if the original beneficiary had died first and the legacy goes straight to the contingent. It may help preclude extra estate taxes or extra rounds of probate.

Consult an estate lawyer or a financial planner about shoring up any estate documents to include contingent beneficiaries and keep them up to date.

How to Value Items at Death

Tue, 06 Feb 2024 20:22:20 GMT

Who's responsible for valuation of assets?

If you're the executor of an estate, part of your job is to oversee the valuation of assets. Finding out how much the estate is worth and how that value is distributed will determine your approach to probate, the allocation of the assets among the heirs and how much the estate will pay in taxes. Particularly with larger estates, valuation can be a substantial responsibility. It may require you to bring in experts to value antiques and other collectibles.

If the estate is undergoing probate, you'll need to submit the asset values to the court. Probate rules for estate valuation vary somewhat by state. In some states, courts look at gross estate value; in others, at net estate value. Some have separate rules for smaller estates. While all personal property is probated in the decedent's home state, real estate is probated in the state in which it's located. Some assets, such as 401(k)s that have beneficiary designations, normally bypass probate.

Expect to be challenged — by the IRS, by heirs, by creditors or by the court — whenever you value assets. Be sure you're valuing everything reasonably.

Certain types of assets are easy to value. The contents of a bank account or shares of stock in a publicly traded company won't give you any trouble. To value a stock, commodity or precious metal, average the highest and lowest selling price for similar items on the owner's date of death. For mutual funds, use the closing valuation.

Other assets — a used car or collectible, for example — don't have such a definitive value. You estimate their value by using public references for collectibles. When valuing real estate, you can check out the tax assessor's valuation and talk to a real estate agent about sales of comparable properties.

Go with the pros

For assets that are really difficult to value, like artwork or a private business, you'll probably need to hire a professional appraiser. Appraisers typically charge from $125 to $400 an hour, often with an extra charge for visiting the site. Avoid appraisers who charge based on a percentage of the asset's value. This goes against the ethics of the Uniform Standards of Professional Appraisal Practice.

Ask whether the appraiser has any certifications or memberships in professional organizations, and ask for a written estimate of the appraisal fee in advance. Books, tools and appliances are among the items that can be listed as household contents, and you can ask for one overall valuation estimate for them. If there are individual items that were specifically bequeathed in the will, you may want to get an individual appraisal for each. The value of household items should be done based on what a buyer would pay for the items as is.

The heirs may decide to sell everything in an estate sale. In that case, use a reputable estate sale company. Descriptions and values should be seen as general guidelines because there are variations in quality and condition as well as changes in economic conditions and local demand.

As you proceed with the valuation, be aware of the pitfalls. Heirs may be upset if a particular asset doesn't realize the value they expected. Document your work in case there are questions later, and work closely with legal and financial professionals as you move forward.

4 Key Questions to Ask Your Estate Lawyer

Tue, 30 Jan 2024 11:46:48 GMT

Estate planning is a fundamental element of financial stability. You work hard and want to ensure your loved ones are cared for upon your passing. If you haven't already done so, now is the time to begin making plans regarding your estate. According to LegalZoom, a popular online legal database and connection resource, 74% of working-age people worldwide plan to leave an inheritance for their children. It pays to have an experienced estate planning expert by your side. Here are some useful questions to ask an estate lawyer about taking the best care of your family and loved ones.

1. Can I Avoid Probate?

Do you want your spouse, children, and grandchildren to wait a year or more to receive what you left for them? When your estate has to go through the probate process, that's exactly what will happen. The type of estate document you use can determine if the probate process will be necessary. While a will is the simplest document to use, it can also cause your beneficiaries to wait longer due to the necessity of probate. Your estate lawyer will help you to choose the option that best aligns with your wishes.

2. Is There a Way to Minimize Estate Taxes?

Taxes are a part of life. You can't escape them, even when handing down an inheritance. However, there are ways to ensure your beneficiaries receive as much money as possible without handing most of your resources over to taxes. Your estate lawyer will advise the best ways to minimize your taxes based on how you distribute funds.

3. What Is the Difference Between a Will and a Trust?

The main legal documents for estate planning are a will or a trust. A will is a formal document where you list your beneficiaries, assets, and how to distribute them. However, a trust is more of a legal arrangement in which you transfer your assets to a trustee. From then on, a trustee will manage those assets on behalf of your beneficiaries.

4. Is There a Minimum Requirement for Estate Planning?

Many Americans wrongfully assume you have to be rich to plan an estate. Whether you have one house or ten of them, those are assets you want to pass on to your loved ones upon your death. Therefore, regardless of how small your estate is, having legal documents can ensure that your property, finances, and other valuables go to the right person.

Make sure your loved ones are well cared for in the future. With the right legal advice, you can easily do so. For an experienced estate lawyer who can advise and set up your estate planning, contact our team at Nash Bean Ford & Brown, LLP today.

What is a Living Will?

Thu, 25 Jan 2024 16:10:02 GMT

and why you may need one.

Could you imagine being in a situation where you can't communicate the type of medical care you want to receive? There's nothing more frustrating than not being able to make your preferences known.

At the same time, when it comes to emergency treatment, time may be limited, so making every second count is crucial. By setting up a living will, you can indicate your preferences regarding the use of medical treatments in instances when you are unconscious. For instance, you can state whether you want to receive assisted breathing, be fed through a tube or undergo dialysis.

Now, if you don't have a living will, decisions about the medical care you receive will be made by your spouse or another family member. While they likely know you very well, they might not be aware of your desires in terms of medical care.

his is especially true in cases where you have not left written directives for medical teams. With advance care planning, you can appoint someone to operate as your health care proxy. They can make decisions on your behalf and in alignment with your desires as indicated by your living will.

In your living will, you can indicate whether you want to donate your organs and tissues after you die. This decision is completely up to you, so feel free to be honest about your preferences without feeling any pressure.

You can also express your desire to receive pain medication in your final hours while simultaneously refusing life-sustaining care. Follow your heart and express your true wishes in your living will. It's the perfect opportunity to advocate for yourself in advance.

Remember that an advance medical directive can help you make your needs known if medical professionals do not detect any brain activity. In the worst-case scenario, your living will can express your wishes in the event that you are expected to remain unconscious for the rest of your life.

You can stipulate the type of care and level of medical treatment you want to receive in that situation. You can also indicate how long you want to receive said care and treatment.

Discuss your wishes with your proxy

As we mentioned, you can declare someone as your official health care proxy. By speaking with them, you can ensure that your wishes are adhered to. A durable power of attorney for health care can also name someone who can make decisions on your behalf.

You can choose one or more alternatives in the event that your proxy is unable to fulfill the role for you. That way, no matter what, you can trust that there is someone who will act as your advocate if there are disagreements or questions about the care you receive.

How does a living will differ from a living trust?

A living trust focuses on what happens to the physical property and intangible assets of someone who is incapacitated. You'll name a trustee who will then execute your wishes on your behalf if you lack the capacity to do so.

The proxy has the legal authority to act on your behalf. A living will, on the other hand, expresses what you want to have happen to your person in circumstances where you cannot voice your wishes on your own.

Ultimately, the most important thing for you to do is reflect on what matters to you the most. Think about your values and your wishes. By listening to your gut instincts, you can make sure you establish the type of care and treatment options you want to receive in difficult situations.

Plan in Advance

You should look into whether advance care planning is covered by Medicare. It may be part of your annual wellness visit. Alternatively, if you have private health insurance, speak with your insurance provider and ask about coverage options.

Take a moment to have a conversation with your medical providers. By speaking with them, you can learn about the types of decisions that may come up or what you can anticipate needing to cover in your living will.

Your doctor can help you understand what your family may face, and that way, you can address them in writing via your living will. You can even ask your health care proxy to come to the appointment with you for reassurance.

As you make up your mind about the care you want to receive in dire circumstances, you should consider how important it is for you to be independent or self-sufficient. Would you want to receive treatment that extends your life no matter the situation?

Are there any circumstances under which you would no longer like to be treated? Would you want your medical team to pursue treatment only when a cure is likely?

These are heavy questions, but they are important. You might even change your mind and feel differently about your answers as time goes on, at which point you can update your living will.

Unexpected end-of-life situations can happen at any age, but by planning ahead, you can ensure that you receive the medical care you truly want. This will help you avoid unnecessary suffering and relieve other people of having to make difficult decisions on your behalf.

Also, each state has different requirements regarding living wills. In most cases, a form will need to be either signed by a witness or officially notarized. If you are a resident of more than one state, make sure you look into how each state deals with living wills.

If you feel more comfortable with the idea of receiving professional advice about living wills, you can ask a lawyer to assist you with the process of creating yours. For additional comfort, you can consider carrying a wallet-sized card that indicates the existence of advance directives. You can also include the name and number of your health care agent as well as the location of your living will.

Why Is It Important to Have a Will?

Mon, 24 Jul 2023 14:32:39 GMT

It's crucial for families to properly plan for the future. Among other things, this means making sure that a legally sound will is in place. By working with estate planning lawyers, you can ensure that you have a will written up that will be held up in court. If someone passes away and there is no will in place, this can lead to a lot of legal headaches. This article will take a closer look at why working with estate planning lawyers and having a will are so important.

Wills Can Ensure That Your Wishes Are Followed

A will helps to lay out who gets what. Many people who pass away have homes, vehicles, jewelry, personal effects, and various other assets that need to be properly distributed. Much of this property will be valuable in both a monetary and personal sense. According to Legal Zoom, roughly 75% of parents plan to leave an inheritance for their kids. Yet if a will isn't in place, it's often left to probate courts to decide who should get what.

Probate courts can distribute properties as appropriate. However, there's no guarantee that the court will distribute assets as the deceased intended. A will essentially provides guidance and clarity, which often proves crucial. Be sure to work with an experienced estate planning law firm to guarantee your wishes are respected after your passing.

Sound Estate Planning Allows Families to Grieve

Losing a loved one can be difficult. As families grieve, planning funerals and memorials can become a burden. By providing clarity, a will may help families focus on grieving. Have everything about your funeral proceedings laid out clearly by having your estate planning lawyer draft them in your will. Contact different firms in your area so you can talk to their team members and feel confident in your decision.

Protect Your Business and Similar Interests

If you own a small business, it's important to consider how that business will be handled after passing. Your business may rank among the most important aspects of your legacy. Any succession court battles or other issues could tarnish that legacy. Likewise, your hardworking employees, clients, and other stakeholders may be adversely affected. Be sure to work with a law firm that has experience with succession laws to ensure your family is able to benefit from the legacy you leave behind.

Fortunately, by working with estate planning lawyers , it's possible to avoid or at least reduce many of the headaches associated with the passing of a loved one. If you're looking for a law firm you can depend upon, contact Nash Bean Ford & Brown LLP today. Our team is dedicated to helping people prepare for the future so they won't have to worry.

How to Choose the Right Estate Lawyer for You

Mon, 06 Feb 2023 12:34:55 GMT

Finding an estate lawyer to help you write a will is an essential part of estate planning. According to LegalZoom, only 32% of Americans have a will, but everyone can benefit from this type of planning, regardless of age or wealth. Here are some tips to help you in your search for the best estate lawyer.

Get a Referral

Getting a referral is one of the simplest ways to find a reputable estate lawyer, especially if you know people who have recently dealt with estate planning. Ask friends, family members, and business associates about their experiences with estate lawyers to narrow down your search a bit.

Find an Attorney Who Focuses in Estate Planning

When you're trusting a lawyer with estate planning, you need to make sure that they're qualified for the job. It's best to look for a lawyer with a focus in estate planning instead of picking an attorney with no particular specializations.

Ask About Schooling and Experience

Whenever you're looking for a lawyer, you want to make sure they have a quality education and plenty of experience. Before you choose an estate lawyer, ask them about the law school they went to and how long they've been practicing. Experienced lawyers know how to tackle all the obstacles you might face during the estate planning process.

Look for Malpractice Insurance

Just as it's important to hire contractors with insurance to protect your home, you should always hire estate lawyers with malpractice insurance, too. Attorneys aren't required to carry malpractice insurance in certain states, so checking before you hire an attorney is crucial. This insurance protects you in the event that malpractice causes some type of damage.

Check Organization Associations

Estate lawyers aren't required to associate with estate planning organizations, but those who do may provide better service to their clients. Certain organizations are dedicated to making sure lawyers have the knowledge and resources to stay on top of the latest trends in estate planning. A lawyer who belongs to these organizations is also displaying their commitment to learning and serving clients.

Estate planning is an essential part of making sure your loved ones are protected when you're no longer around, and you need to make sure you choose the right lawyer to assist you. If you're looking for a qualified lawyer to help you with estate planning, contact Nash Bean Ford & Brown, LLP for a free consultation today.

What It Means To Die Intestate

Tue, 30 Aug 2022 13:30:00 GMT

Dying intestate means to die without a will.

Did a close relative die and not leave a will? Are you settling the estate? You will face some complexities, but you can get through them if you know the rules.

How will the estate be distributed in the absence of a will? To begin with, many assets aren't passed on by a will, such as:

Life insurance proceeds.
Real estate, bank accounts and assets held in joint tenancy/community property with the right of survivorship.
Property held in a living trust.
IRAs, 401(k)s and retirement plans — assuming a beneficiary was named.
Payable-on-death bank accounts.
Stocks or other securities held in a transfer-on-death account.
Real estate or vehicles held with a transfer-on-death deed or title document.

State law provides a list of those who are eligible to fill the role of executor. Most states make the surviving spouse or registered domestic partner the first choice. Adult children usually are next on the list, followed by other family members.

If you've been chosen to serve as an executor, you'll follow the intestate laws for inheritance rules: spouses, registered domestic partners and blood relatives inherit. Unmarried partners, friends and charities get nothing.

The surviving spouse gets the largest share, splitting the inheritance with the children. If there are no children, the spouse often receives all the property, although there may be exceptions based on state law. More distant relatives inherit only if there's no surviving spouse and there are no children. If no relatives can be found, the state takes the assets.

All states have rules that bar certain people from inheriting, based on past actions. For example, someone who criminally caused the death doesn't profit from it. A parent who abandoned or refused to support a child or committed certain crimes against a child cannot inherit from that child.

Further difficulties

There are some thorny questions you may find yourself wondering about. For example, if the couple had separated before the spouse died or if divorce proceedings had begun, the issue of whether the surviving member is still considered a surviving spouse may have to go before a court.

What about common law marriage? Not every state recognizes this; check your state's laws regarding this semi-legal partnership. However, there is no longer any confusion about same-sex married couples; their situation is the same as any other married couple, in every state.

Interestingly, couples registered as domestic partners or civil union partners and not married may not have all the rights and responsibilities of married people.

Let's turn to children — many state statutes use the term "issue" to describe who inherits in the absence of a will, meaning direct descendants. Legally adopted children inherit, but what about stepchildren? It depends on the circumstances of the relationship. Foster children? They normally do not inherit as children of foster parents. Adoption situations can further complicate the situation. In the case of underage children requiring a guardian, a judge will have to decide.

The bottom line? Contact the legal professionals at Nash Bean Ford & Brown if you find yourself in such a situation.

Is This Your Situation: How Can I Prepare for a Smooth Home Closing?

Thu, 04 Aug 2022 17:30:00 GMT

Top 4 Mistakes That Can Derail Your Home Sale

Whether you're in the process of selling your home or you're thinking about taking that leap, it's important to know that sellers have an important role in the process. It's far more than just picking the right listing price and marketing the property to the widest audience. There are certain steps to the process that must be navigated to ensure you reach the closing table.

With that said, there are some common mistakes that sellers make when embarking on this journey. Here are the top four mistakes that can derail your home sale - and how to avoid them.

Not Disclosing Issues

When you list your home for sale, you'll be required to fill out a home disclosure statement. The form varies from state to state, yet the premise is the same. It's the seller's opportunity to disclose any known issues with the home. This includes things like the age of the roof and water heater, any major repairs or additions, and more serious concerns like asbestos and lead paint.

Most buyers will perform a home inspection prior to purchasing your home, and if it turns out that there are big issues that you likely knew about, this can certainly derail the process.

Always be upfront with any known issues and be sure to complete this disclosure form to the best of your ability.

Missed Deadlines

Whether buying or selling, missing deadlines can easily derail the home sale. There are deadlines to respond to offers. Deadlines for when home inspections and appraisals must be completed. Deadlines that keep the process on track, such as contingency deadlines, earnest money deadlines and even deadlines for various signatures. Stay organized and stay in contact with your agent to make sure the process continues smoothly.

Inability to Make Decisions

As a seller, it's easy to want to play the waiting game: to see if any other buyers want to make an offer before accepting the one right in front of you. Just remember, that indecisiveness could cost you your best offer. To avoid this, make sure that you've asked your agent to show you comparable homes that have recently sold. This will help you understand what the current value of your home is and can help you feel confident in accepting an offer that falls within that range. Don't wait until you get your first offer to start investigating what your home is worth!

Low Appraisals

If the buyers of your home are seeking financing, the mortgage lender will require an appraisal of your home to ensure it's worth the amount that the bank is lending to the buyers. While the appraiser's report is out of your control, you do have the ability to perform an appraisal prior to listing your home for sale, which can give you some comfort knowing that your listing price is in line with that appraisal report.

No matter how much the buyer loves your home - and even if they're willing to pay your full asking price - if there is a low appraisal, the buyer would have to come up with the difference out of pocket. It's better to get your pricing up to speed in advance, rather than face issues right at the finish line.

Getting to the closing table of a home sale isn't always easy. Call Nash Bean Ford & Brown, LLP at 309-944-2188 to get help navigating the sale of your home.

How to Divide Things, Not Families

Wed, 27 Jul 2022 14:00:00 GMT

Don't get into arguments with your siblings over your parents' stuff.

The strains and stresses on surviving children from the death of parents happen because it's a time of grief. Even people committed to reducing their material possessions may desperately want Grandma's cracked teapot or Mother's engagement ring. A casual inquiry among friends brings forth horror stories of damage done to families when they are dividing their parents' or grandparents' possessions.

Maybe we can devise guidelines to help steer into a calmer scenario — remember that the primary motive should be to preserve family relationships. However, if everyone has the attitude that they want to get the best deal or redress what they believe are old imbalances, they'll have a hard time putting those feelings behind them for the good of the family. After all, dealing with items from one's childhood can reawaken all sorts of long-forgotten jealousies, hurts and desires.

Survival guidelines:

Going through your parents' possessions after they've passed away is a task faced with heavy hearts and frayed nerves. But keep your eyes on the prize and remember that nothing — no thing — is as important as maintaining good relationships.

Go through the process knowing the horror stories and determine to keep your relationships intact.

Work hard, talk a lot. Try to see your major stumbling blocks and what helps overcome them. Talk to your friends about their experiences. Share ahead of time what you've learned about property division.

Look hard for ways to delay giving up your parents' home and possessions. Having to make decisions in a short time adds to the stress.

Realize that each item is loaded with emotion, which adds stress to dealing with deciding about material things and increases your sense of loss.

Try filling just one box with very personal things — your parents' writings, photo albums and mementos — and go through this together at some later time. This allows you to delay dealing with the most emotionally charged things and points to a future reunion to look forward to.

Remember to allow for grief. There are many agendas when families gather — the more emotional the occasion, the more likely it is that needs will clash. The more fatigued or stressed people are, the more difficult their interactions.

Before thinking of how to divide things, think about grief. There is a great sense of loss, which hits each family member differently
Each small item can seem indispensable. Be clear about your priorities. If your strongest desire is to maintain or improve your family relationships, realize why we are so involved with material things. Things have an emotional history — the tools Dad used, the cradle Mom may have slept in. Some seem to embody a moment of closeness with a parent, a special memory or a family event. Try to give yourselves time to think and talk about the underlying meanings and memories.

If there are any items that everyone wants, they can be shared. A favorite pair of silver candlesticks? How about deciding that they can spend a year in each child's home? Passing the candlesticks around can become a ritual with each family.

And what about the things no one wants? One person's throwaway is another person's treasure. This will help with the initial sorting: Each family member is given a batch of stick-on dots in a different color. Each can go through a cupboard, closet or drawer and put a dot on anything they would like to keep. Put the unchosen items in the donations pile. Items with two or more dots fall into a discussion category, since more than one heir wants them. Those with just one dot are ready to be packed away for the heir who chose them.

How to Handle Common Trust Problems

Tue, 12 Jul 2022 13:30:00 GMT

Avoid these common mistakes when setting up a trust.

A trust is an estate planning document that disposes of your assets after your death. Trusts are an effective planning tool for those with detailed plans for their worldly goods. Will your trust achieve the purpose it was created for? Not if you make one of the following errors:

Failure to fund. You have to fund your trust by transferring ownership of your assets from your name to the name of the trust. Assets titled in your name will have to go through probate.

Failing to name a beneficiary. A trust is a contractual relationship established between you as the creator of the trust and the trustee, the person charged with managing the trust. Without at least one beneficiary, there can be no viable trust agreement.

If a beneficiary dies or becomes incapacitated after the trust is created and the trust is not amended or doesn't address this issue, the trustee may need to seek direction from a court before proceeding with the trust administration.

Failing to protect beneficiaries from lawsuits or divorce. You have the power to draft the trust so that assets are protected from creditors or divorce proceedings for the beneficiaries. This is a valuable protection for your children and grandchildren.

Choosing the wrong trustee. Your trustee should be someone you can genuinely expect to live up to the fiduciary duty, managing your assets and your trust effectively and in line with your wishes.

Failing to put your trust in writing. It's a common misconception that a trust created orally between family and friends can be legally binding. In fact, trusts that involve real property must be in writing.

Use of ambiguous language. The trust should provide specific directions and conditions for distributions to be made directly to beneficiaries or on behalf of beneficiaries. If the trust gives the trustee discretion regarding distributions, disputes can erupt. Beneficiaries may believe they are entitled to distributions when the trustee doesn't think that the distributions are in the best interest of the trust or the beneficiaries.

Failure to provide a pour-over provision in your will. This clause transfers any remaining assets to your trust when you die. Without this, any assets or property that haven't been transferred to your trust at the time of your death will need to be probated and may not be disposed of correctly.

Failure to name a successor trustee. You may find that the person you selected to manage your affairs is not a good manager. Your choices for successor trustees should be family members or friends you can trust. Corporate trustees, such as banks, also are an option.

Pairing sibling trustees. This isn't necessarily a mistake, but should be considered carefully. Siblings don't always get along and family infighting is the fastest way for your estate to be squandered in court.

Forgetting to review your trusts . This can lead to unwanted consequences, so review what your trust says at least once a year to ensure the terms still align with your overall estate planning goals.

Trusts are versatile and powerful estate planning tools, but only if used correctly. Work closely with a trust attorney at Nash Bean Ford & Brown, LLP and be sure to make your wishes known and ask questions about anything that isn't clear.

How To Pick an Executor

Tue, 21 Jun 2022 14:00:00 GMT

An executor makes important decisions on your behalf

There's a key aspect of creating an estate plan that you shouldn't gloss over: choosing whom to carry out the wishes outlined in your will, making important decisions on your behalf. Select someone who's trustworthy, organized and able to juggle the job along with other life responsibilities.

Here are qualities to look for when choosing the executor of your estate:

Responsibility — addressing estate matters quickly and communicating effectively with beneficiaries to make hard decisions when necessary.

Integrity — showing fidelity to your final wishes.

Diligence — locating and collecting assets you owned and taking physical possession of them if necessary. Executors must secure, insure and appraise assets. They may have to make determinations about the estate's assets — which to retain and which to sell — and how the estate's cash needs will be met.

Comfort with tax matters — working with tax and legal professionals to prepare and file your final federal and state personal income tax returns, as well as any returns for prior years and gift tax returns if they weren't filed.

Impartiality — making decisions without favoring one beneficiary over another.

Availability — settling an estate takes an average of 16 months, so your choice of executor needs to commit time and energy to the tasks involved.

Financial responsibility — willingness and ability to manage an estate. If you feel that you don't have responsible friends or family members, you can name an attorney, accountant, bank or trust company as executor. Unlike a close friend or family member, these parties usually charge fees for being an executor, which vary from state to state.

Prudence — your choice of executor needs to have suitable personal finances. People with debts and liens, individuals with no credit history or those who have declared bankruptcy are not good choices since they often can't get bonded, and many courts require executors to take out a bond as a guarantee that they won't skip town with the money from the estate.

Also, name at least one younger executor. While you only need to name one executor to make your will valid, you should try to name at least one additional younger, healthy person, known as a successor or contingency executor. This person should be likely to outlive you in case your first choice isn't available to serve.

You want an executor who can handle hard work without hesitation, maintain their emotional balance, and manage the tempers and egos of beneficiaries. Probate is hard for everyone involved. The executor's role is to dispose of the estate with patience and expertise and to communicate with the beneficiaries throughout the probate process.

What is Abuse, Neglect, or Financial Exploitation?

Tue, 14 Jun 2022 13:30:00 GMT

Abuse, neglect, or financial exploitation of a person age 60 or older

or adults with disabilities age 18-59

is the least recognized form of family violence.

Abuse, neglect, and financial exploitation takes many forms, and in most cases, victims are subjected to more than one type of mistreatment. In Illinois during FY 2020, 30% of adult abuse reports allege financial exploitation; approximately 20% allege physical abuse; 18% allege active or passive neglect; and 20% allege emotional abuse.

Abandonment - means the desertion or willful forsaking of an eligible adult by an individual responsible for the care and custody of that eligible adult under circumstances in which a reasonable person would continue to provide care and custody.
Confinement – restraining or isolating a person for other than medical reasons.
Emotional abuse – verbal assaults, threats of abuse, harassment, or intimidation so as to compel the person to engage in conduct from which she or he has a right to abstain or to refrain from conduct in which the person has a right to engage.
Financial exploitation – the misuse or withholding of a person’s resources to the disadvantage of the person and/or the profit or advantage of another person.
Passive neglect – the failure by a caregiver to provide a person with the necessities of life including, but not limited to, food, clothing, shelter, or medical care, because of failure to understand the person’s needs, lack of awareness of services to help meet needs, or lack of capacity to care for the person.
Physical Abuse – causing the infliction of physical pain or injury to a person.
Sexual abuse – touching, fondling, or any other sexual activity with a person when the person is unable to understand, unwilling to consent, threatened, or physically forced.
Willful deprivation – willfully denying assistance to a person who requires medication, medical care, shelter, food, therapeutic device, or other physical assistance, thereby exposing that person to the risk of harm.

The Abuse, Neglect, or Financial Exploitation.....

could be...

an intentional or unintentional action by anyone;
caused by economic or emotional dependence of either the victim or the abuser; and/or
accepted by the family and society as a way of life.

Abuse can also be in the form of fraud. See the page, Looking Out for Fraud for more information.

The Abuser...

may be a family member (adult child, spouse, grandchild and other relative) or a non-relative caregiver;
may lose control due to the stress associated with caregiving;
may have an alcohol or substance abuse problem; and
may be frustrated or isolated.

Interventions must take into account, wherever possible, most persons do not to want to sever family ties.

The Victim...

may suffer from some form of dementia or physical impairment, often suffering from multiple disabilities which make him/her dependent on others for care;
tend to be isolated;
may suffer from more than one type of abuse;
may be reluctant to admit his/her loved one is an abuser; and
may be fearful of reporting abuse, neglect, or financial exploitation thinking it could lead to further harm, long-term care facility placement, or total abandonment.

These characteristics make intervening more complicated and cases more difficult.

Article in the Public Domain.

State of Illinois (2022). What is abuse, neglect, or financial exploitation? Illinois Department on Aging. Retrieved June 3, 2022, from https://www2.illinois.gov/aging/ProtectionAdvocacy/Pages/What-is-abuse, neglect, or financial exploiation.aspx

How to Stop Procrastinating About Estate Planning

Tue, 07 Jun 2022 14:00:00 GMT

Common Excuses for Not Having an Estate Plan

Age is not a predictor of when you will need an estate plan. Only 16 percent of folks between the ages of 18 and 34 have created a will or trust. You will not be surprised to discover that 81 percent of Americans age 72 and older have such documents as a last will and testament, a power of attorney, a health care proxy and a living will.

You want to make sure that your assets are distributed properly after your lifetime. What about people between the ages of 53 and 71? There's a drop in the number of people who've worked up a formal estate plan: Just 60 percent have. And those in the 34-to-52 age group? Only 36 percent have.

How to get us to start estate planning earlier in life? What's holding people back? Here are some common excuses:

"I don't have enough assets to warrant drafting a will, and trusts are only for rich people." It's a false belief that estate planning is only helpful for the wealthy. Everyone needs to think about providing for loved ones after he or she is gone, and even those with modest assets often find trusts useful.

"I have plenty of time before I have to think about this." One of the biggest reasons to procrastinate is that you think you're too young to need an estate plan. Estate planning is not just about giving your stuff away when you die. A more important function is to provide protection for you and your family during your lifetime, especially naming guardians for your children!

"Estate planning is too expensive." Actually, you could turn this around and say it's less expensive than not having a plan. Think about it — obtaining legal guardianship can be expensive and time-consuming, and can lead to family fights concerning whom the court should appoint.

Guardianship is Crucial

Indeed, guardianship is one of the key reasons for estate planning. You can name a person to be guardian of your young children, virtually eliminating any chance of families fighting over who should care for them. You want to ensure that your children get an education and proper health care, and have all their basic needs met. The bottom line? You and your family will be better protected during your lifetime — and after you die.

You may have discussed and agreed on a guardian for your children — you may even have made your wishes known to your family. But verbal communication itself is not enough. If you fail to express your wishes in a legally binding, written document, you are placing your children in a situation in which every family member has equal priority of guardianship. Often this means your child may end up in foster care.

The state ultimately will decide who raises your children if there is no legal documentation to the contrary. Life is unpredictable. Especially if you have a young, dependent family, you need to overcome your concerns and reasons for procrastinating about estate planning. Meeting with estate planning attorneys for a consultation is a good first step. An estate plan can help you and your loved ones.

How to Choose a Guardian for Your Child

Tue, 31 May 2022 14:00:00 GMT

Make Sure Your Children are Provided For

Appointing a guardian for your children might seem morbid. If you're a healthy person who doesn't work a dangerous job, it may also strike you as unnecessary, since your decision usually only matters if you die or become disabled before your child's 18th birthday. But estate planning is all about hoping for the best and preparing for the worst.

In this case, if the worst does happen and no guardian has been appointed, then your children are considered wards of court. A ward who is over the age of 14 can nominate a guardian for him- or herself, and the court will appoint the nominee under most circumstances. However, if the ward is under 14, then the court will appoint a guardian for the minor. If that thought makes your skin crawl, then it's time to make a nomination of your own, which you can do by adding a clause to your last will and testament or durable power of attorney. Just like a ward's nomination, this dictate will be accepted in the vast majority of cases.

Multiple Options

There are three kinds of guardians for minors. The first is a Guardian of the Person. This is probably what you think of first when you think of guardianship. It is the guardian with whom the child lives and who makes the decisions about the child's life that a parent would usually make. The second is a Guardian of the Estate, appointed in cases in which the ward has more than $25,000. He or she will help the minor administrate the money. The third is a Guardian of the Person and Estate. No matter whether you nominate one guardian for your child or two, the probate court will be the superior guardian. That means the court reserves the right to revoke a guardianship and will check in with your child regularly to make sure he or she is being taken care of. All guardians must follow court orders.

You may appoint multiple guardians of the same kind for different time periods. For example, you could have your child stay with one guardian until he or she is 13 and another thereafter. This may be the right option if you want to appoint your parents as guardians but don't think they would be up to the task of caring for young children. It may, however, be disruptive to the kids' lives.

It is also a good idea to name a backup in case your first choice isn't able to take on the responsibility. There are many reasons why this might be. You have no way of knowing what your friends and families' circumstances will be at the time of your death or disability. Fortunately, you can name as many backups as you want.

When making your choice, be sure to consider all factors. It's important to choose someone who is in a stable financial situation and has enough free time to care for children. You may choose someone who lives near you, or someone who lives somewhere you can imagine your kids growing up. The important thing is to choose someone you can picture taking good care of your children.

This is a brief overview of a complicated topic. There are other provisions and exceptions, and rules may vary from one jurisdiction to the next. Always consult an attorney at Nash Bean Ford & Brown before modifying your will or making any decisions about guardianship.

What Are the Top Trust Errors?

Tue, 24 May 2022 13:45:00 GMT

Follow All the Rules to Avoid These Common Mistakes

Trusts can be an essential part of any estate plan, but they are complex vehicles. There are many ways they can go wrong. Below are some of the most common errors and how to avoid them.

Funding errors. Properly funding your trust is key, otherwise your trust has no legal effect. You'll need to properly transfer assets to be held in the trust's title, which means filling out and filing all required paperwork.

Failure to designate a successor trustee. Many people appoint themselves as trustees of a living trust. If you do this, however, you also must designate a successor trustee who'll step in and manage your trust if you become incapacitated. Don't leave the successor trustee decision for later. Find someone whom you trust to manage your assets the way you'd like it to be done. It may be tempting to go with your oldest child or best friend but consider the person's temperament and ability to administer the trust for you. You may want to name multiple co-trustees to manage your assets during your disability or after your death. After all, a beneficiary might be hit with a physical or mental infirmity that could have implications for your estate plan. In some cases, you may want to name a professional trustee — a bank, for example. Having a professional make distribution decisions can be better for family harmony.

Failure to review your trust regularly to keep up with changes. Over the years, your life changes. You might have children or get divorced, and then you find that your asset situation has changed. If that happens, check your trust to make sure it's kept pace with reality. Also check your trust if you change jobs, if you retire or even if the stock market radically changes. When a tax law is altered, it, too, may affect your trust assets, so pull out the document and make sure it still will do what you want it to. You must ensure that your trust continues to function well and meet all your changing estate planning needs.

Failure to consider creditors. A revocable, or living, trust does not protect the assets in the trust from creditors. However, an irrevocable trust can do so in many cases, if it is properly set up.

Living trusts are powerful planning tools to use to avoid probate and protect your beneficiaries from creditors or a divorcing spouse. With living trusts, you can provide for your family, fund education for your grandchildren and donate to your favorite charities. Sometimes, even a seemingly trivial error can have serious consequences for your heirs, so remember to name the recipients of your assets.

Keep in mind that this is just a summary. There are many more provisions and exceptions in trust regulations. Your best bet is not to see a trust as a one-size-fits-all solution, but instead as a custom product for each family. The attorneys at Nash Bean Ford & Brown, LLP can help to establish the right kind of trust for your situation.

Succession Planning 101: What's Your Exit Plan?

Tue, 17 May 2022 19:17:56 GMT

Do You Know What Will Happen to Your Business When You Retire?

Business owners should start asking themselves this question on the day they open their doors. But they don't. There are many reasons for this, beginning with the hope that the business will never fail. Even in the rare businesses that do last, however, there inevitably comes a day when the owner wants to leave the business. Preparing for that day is the key to a smooth transition.

Entrepreneurial businesses often follow this trajectory: When the business opens, the entrepreneur-owner does everything from sales to bookkeeping. As the business grows, the owner gradually delegates various tasks to trusted advisers, employees and contractors. Then the day arrives when the owner realizes that he or she is ready to try something else or retire.

That day is not the day to begin thinking about an exit strategy. Ideally, there will be at least seven years between the time when the owner recognizes the need for a plan and the day when the business finally transitions to its new owners. If there are only three years, the plan is considered a short-track one. Any plan shorter than that leads to a frantic hunt for a buyer, possibly resulting in less-than-optimal terms.

Here is a three-step checklist that will help avoid the latter result. Note that this checklist assumes a single owner.

Day one:
Establish the business's vision, goals and objectives.
Determine the anticipated level of family involvement, if any.
Understand each family member's goals.
Develop the outline of a retirement plan, including your ideal age of retirement, desired cash flow and anything else you think is important.
Establish a team of trusted advisers, including accountants, financial professionals, attorneys and mentors.
Between seven years and three years before your planned retirement:
Meet with family to discuss the plan and determine whether any family members are interested in, and capable of, taking over the business.
If no family members are interested, create a realistic exit strategy.
Identify potential problem areas.
Evaluate whether any key staff should be offered an ownership interest.
Decide whether you will have an ongoing role in the business after retirement, what that will be and how long it will continue.
If the transition will be to another family member, identify an outside facilitator to help guide the process. Put a training program in place and begin transitioning primary responsibility for customers or clients.
If the transition will be to an outside party, identify a business broker who will help the process move forward. Meet with advisers to ensure the business is in the best shape to attract a buyer. Put in place any changes necessary to make the business more attractive.
Meet with advisers to determine how the business will be transferred: whether it will be an outright purchase, a gift or bequest, or some combination. Review tax strategies and the legal implications of each option.
Document the plan in writing.
Obtain an appraisal to determine the fair market value of the business and its associated real estate.
Review your estate plan to consider the potential tax implications of a sale or transfer of ownership on the owner, the owner's spouse or partner, and succeeding generations

Pitfalls You Can Avoid in Your Will

Tue, 10 May 2022 13:30:00 GMT

Does your will reflect your wishes?

Misunderstandings regarding inheritance can cause disagreements. You don't want your will to create any conflicts among family members. That's why you need to watch out for ambiguous wording. Describe all gifts and bequests clearly so everyone knows exactly what you mean. If you think there might be some fighting, include your reasoning for your decisions.

Here are some other issues that can occur:

Choosing a bad executor — When coming up with the person who'll administer your estate, you want someone you trust. If the person you choose cannot serve because they are no longer of sound mind or have died, you need to change the executor. Before you add an executor to your will, make sure to ask them.

Improper witness signature — A will is not considered valid until it has been executed according to the laws of your state. In most states, a will is considered executed when one witness signs it, but in some places, it's more complicated. In Tennessee, for example, at least two witnesses must sign in your presence and in the presence of each other. A clause stating that the person signing is of sound mind is critical. Its absence calls into question the signer's capacity.

Failure to date — Without a date, there's no way of telling how old the will is. If other wills are presented to probate court, the judge will have a hard time determining which one is the most current.

Failure to provide intent — The will must state what it is and its purpose.

Lack of specificity — The will should be specific in its terms and conditions; otherwise, beneficiaries may contest it. It must include locations, descriptions and beneficiaries' relationships to you. Leave no room for doubt in your meaning.

Missing assets — Add a residuary or leftovers clause to ensure that any assets not specifically named in the will are still given to your beneficiaries.

Improper changes — Amending a will with a codicil often needs to be done a particular way according to state law. Be sure you're abiding by the law so that your changes take effect.

Forgetting to update your will — Births, adoptions, deaths, divorces, moves to a different state, new business ventures and so on should prompt you to make sure your will is up to date.

Leaving money to Fido and Mittens — You can't leave money to your pets, although you can leave a trust for them. Basically, don't put impractical or illegal conditions on your heirs before they can receive their inheritance.

Will contests can be expensive and stressful and can take a long time to conclude. Your will may be thrown out and declared invalid. A probate judge then decides where your assets go, and the decisions you made about how your estate is divided and with what provisions will be ignored. By avoiding these pitfalls and working with the qualified legal professionals of Nash Bean Ford & Brown, LLP, you will hopefully steer clear of challenges.

How to Dispose of Assets Outside of Your Family

Tue, 03 May 2022 13:15:00 GMT

Are you writing your will and want to leave some or all your assets to people outside your family?

Estate planning isn't just about distributing your things after you're dead; it's about the relationships you've established in your life. It's difficult to face your own mortality, but it's important to make plans to leave items to people in your will or through a living trust.

If you die without a will, your assets will pass to members of your family. The law is concerned with providing for your spouse and children, but if you don't have either of those, then your assets will pass to the nearest available relative or, failing that, the government.

If there's someone other than family whom you'd like assets to go to after you die, you have to make that wish known now. Be aware that your family might fight the transfer of your property to friends, and they might have a legal right to do so. One way to ensure that an asset goes to a friend is to give it as a gift while you're still alive. If that doesn't appeal to you, you can create testamentary documents describing how you want your things to be distributed. Select someone to act as your executor or personal representative who'll see your plans are carried out as you wish and who is willing to fight if family members object.

Get it down in black-and-white

If you want certain items to go to certain people, your will needs to be very specific. Many states allow for a separate list of items with information about whom you want to inherit what. This list is considered valid if it's referred to in the will. Lists like this aren't intended to distribute money or other intangible assets. They're a way to distribute items around your home that might have sentimental value.

Remember that any decision you make can be challenged in court. Dramatic as it may be when a character in a novel slights a relative by leaving him out of the will, in real life, that relative could easily sue. But giving your favorite beer stein to a friend who always admired it is a nice gesture that everyone would probably approve of. To be sure, warn your loved ones in advance to eliminate surprise. If you think your family wouldn't have an issue with or already expects certain people to get some money, talk to them about your intentions.

One of the best ways to secure assets for a friend or companion is to set up a trust. You have more control over when the person receives the money, and it may settle any family concerns.

A carefully prepared, up-to-date estate plan is essential to leave assets to friends. There may be people in your life you consider family but who may not be recognized legally as relatives. Investment and bank accounts with transfer-on-death designations won't usually go to beneficiaries outside your immediate family. You can leave IRA and 401(k) assets to someone outside the family but may need a spouse's permission to do so.

Laws pertaining to estate planning and inheritance rights vary between jurisdictions. Whether you are leaving just a few items of merely sentimental value or substantial assets, be sure to work with qualified professionals so your wishes are carried out with no surprises to your heirs.

What to Know About Special Needs Trusts

Tue, 26 Apr 2022 20:57:45 GMT

Do you need to provide support for a special needs individual without risking his or her disability benefits?

If you need to provide for someone who's physically or mentally disabled or chronically ill but don't want to jeopardize his or her public assistance disability benefits, creating a special needs trust is a popular strategy. Usually, such programs as Social Security Supplemental Security Income, Medicare and Medicaid impose an income or asset ceiling. However, money put in a special needs trust doesn't count toward the ceiling.

Assets held in a special needs trust are required to be used for medical expenses, payments for caretakers and transportation costs. When you create the trust, you'll designate a trustee who will oversee its management and funds disbursement. Assets provided by a third party are not subject to Medicaid's repayment rules, and that's why a special needs trust is often called a supplemental needs trust.

If you decide to create a trust, contact a legal representative, and draft the document carefully. The goal is to ensure that the disabled person and his or her caretakers spend the money you use to fund the trust on the expenses you stipulate in the trust instrument. Because these trusts are used by individuals with a wide range of mental and physical disabilities, you have broad latitude in designating what those expenses may be.

There are two types of trusts:

A third-party trust allows you and other family members and friends to leave an inheritance, especially if your special needs individual is a child. No assets belonging to the special needs beneficiary are used to fund the trust. If it is funded with sufficient assets, such a trust can provide for lifelong needs.
A first-party supplemental needs trust is funded with assets or income from the beneficiary, who must be under the age of 65 when the trust is created and funded. Medicaid will be reimbursed upon the beneficiary's death or upon termination of the trust, whichever occurs first. Funding may come from child support, a personal injury settlement or an outright inheritance from a well-meaning family member who doesn't understand that the gift could disqualify the special needs individual from receiving benefits. The transfer of funds creates no look-back period or ineligibility period for Medicaid nursing home benefits.

The trustee who is chosen should be sensitive to the special needs of the beneficiary, actively monitoring any services provided, prudently investing trust assets and using them for the individual whom the trust is intended for. It's common for a professional corporate trustee and an individual to serve as trustees together.

Special needs trusts are irrevocable, so neither creditors nor winners of lawsuits can access funds designated for the beneficiary. Parents and guardians especially can be assured regarding the future care and well-being of their special needs child.

Of course, this is just a quick summary of a complex trust that needs to be customized for each individual. If you think you need a trust for yourself or a loved one, be sure to work with qualified legal and financial professionals.

Avoid these Top Estate Planning Mistakes

Tue, 19 Apr 2022 19:23:41 GMT

A good estate plan avoids these top mistakes.

A good estate plan protects and provides for the decedent's heirs. It shouldn't cause more problems than it solves. But not every estate plan lives up to this ideal. If you want your wishes carried out, below are the top mistakes you need to avoid.

Failing to plan. If you don't make time to create a thorough estate plan, you're risking the financial future of your estate, your legacy and your loved ones.

Not reviewing your documents to make sure they're not out of date.

Not discussing your plans with family and friends. Even a brief conversation with your beneficiaries can tell you which of your wishes are likely to be controversial, giving you a chance to rethink.

Naming just one beneficiary. In case your only heir dies before you do, you'll want to have a contingent beneficiary.

Forgetting that your retirement plan accounts or life insurance can't be included in wills or trusts. You'll need a beneficiary designation form or to name a revocable trust as the beneficiary.

Forgetting about power of attorney or health care representatives. These folks step in to make decisions if you become incapacitated. In most cases, the roles dissolve on your death.

Not delineating what your final arrangements will be. Not giving some indication of what you'd like to happen at your funeral or with your burial arrangements puts an extra burden on your family when they're grieving. Let them know what they can do to honor you.

Failing to include your digital assets. You should include a digital estate plan that lays out how you'd like all your digital assets — social media accounts, online banking and email — handled after you die, and name a digital executor to ensure your digital assets are handled properly.

Not detailing what charities you want to allocate some assets to. It's important to provide for your heirs but also to provide for other causes. That's why you may want to name a charity as a beneficiary with the proceeds from an investment or a life insurance policy.

Not planning for all contingencies. Wills often leave an estate to the testator's "surviving children," but that raises questions if one of the testator's children dies. Does the money go to that child's heirs or is it split among the survivors? Morbid as it may seem, wills should plan for all those possibilities.

Failing to fund your trust. Creating a trust is only half the battle. A trust is useless unless it's funded with your assets.

Forgetting about taxes. You should know whether the state that you and your beneficiaries live in has a state estate tax or inheritance tax. Understand the limits before you write your will or trust.

Failing to store your estate plan properly. A perfect estate plan is useless if no one knows where to find it. Safes and safety deposit boxes are popular options but remember to tell someone that it's there and how to access it.

Go with qualified professionals.

There are many myths and misconceptions about estate planning. Help your family save thousands of dollars in unnecessary taxes and probate fees by sidestepping errors. By including Nash Bean Ford & Brown, LLP’s experienced estate planning attorneys and other professionals, you'll have help in drafting your plan and making any changes you want to make.

Is This Your Situation: Selling a Small Family-Owned Business

Mon, 11 Apr 2022 21:53:30 GMT

Selling your business and minimizing taxes.

You’ve worked your entire life to build a family business, and now it’s time to pass it on. But how and when you sell the family-owned business can determine what you owe. The following strategies will help you minimize the amount of money you’ll owe to the Internal Revenue Service (IRS).

Use the IRS gift threshold

As soon as you’re ready to begin transferring your business to your beneficiaries, you can start to make annual gifts of a portion of the business that doesn’t exceed the gift tax threshold. By doing this systematically, you can transfer all or part of your business without having to pay the IRS.

Of course, you’ll have to live a long time to fully transfer your business this way, especially if the business is worth a lot of money. But, if you’re transferring a relatively small family business to several beneficiaries, this method could save you a lot of money in gift taxes.

Take advantages of estate tax provisions

Section 6166 of the Internal Revenue Code lets you defer for 5 years estate taxes due on a closely held business that’s included in your estate. For years 1–4, you only have to pay interest on money due, and then you owe the principal plus interest on year 5. Plus, you get up to 10 years to pay annual installments on estate taxes due.

The advantage to this approach is that your heirs have time to raise or borrow the money to pay estate taxes without having to sell the business you left to them. If you take this route, however, you need to know some important details, so be sure to consult with a professional.

Sell your business

One way to avoid gift or estate taxes on your business is to sell it outright to your beneficiaries. The benefit is that you can use the money to help support your lifestyle in your golden years and then leave what’s left to the very beneficiaries who bought your business.

The only caveat is that you must sell your business for fair market value. If you low-ball the price, you might have to pay a gift or estate tax. Of course, you might have to pay a capital gains tax, but at present that’s a pretty low 15%.

This is just the beginning of what can be a complex process. We can help you simplify it. Give us a call today if you have questions about transferring your business to beneficiaries. We’ll help you craft a plan that will minimize taxes and other financial headaches.

Wills vs. Trusts: What's the Difference?

Tue, 29 Mar 2022 21:22:37 GMT

How do I choose?

Wills and trusts are two of the most versatile and powerful tools you'll have when making long-term plans for your estate. But what are the differences, and which one should you use?

A will is a written document expressing your wishes for disposal of your estate and can also name guardians of minor children. It becomes active after your death. A trust is a legal vehicle that holds assets and is managed by a trustee for the benefit of another party. There are several different kinds of trusts.

Wills must go through probate, where they are examined by an authorized court administrator — a lengthy process. Trusts aren't required to go through probate.

Let's take a deeper dive.

Basics of a will: A will states how you want your affairs handled and assets distributed after you die. You can include a directive about how you want your funeral or memorial held. A will gives insight and direction about the handling of assets to your beneficiaries. You can address how you'd like them to use what you have left them. In most cases, your will becomes public upon your death.

Basics of a trust: You may create a trust for the primary purpose of avoiding probate court. A trust covers only property that has been transferred to the trust and is held in the trust's name. That means you may still need a will if you have a trust that covers only some of your property.

A revocable living trust transfers property after death to loved ones. It's called a living trust because it's created while you are still alive. It's revocable because it may be changed while you're living. You maintain ownership of the property held by the trust while you're alive.

A living trust passes property outside probate court with no court or attorney fees after the trust is established. Your property can be passed immediately and directly to your named beneficiaries. A trustee will be named to control the distribution of assets. Your estate remains private and passes directly to your heirs, you have no probate attorney or court costs, and your loved ones may be able to avoid being tied up in probate court.

Trusts tend to be more expensive than wills to create and maintain, leading to a popular misconception that they're only for the very wealthy. However, even those with smaller estates may find a trust useful and well within their budget.

So, what should you choose?

Deciding between a will and a trust is a personal choice. Even though, as noted, a will is typically less expensive and easier to set up than a trust, there are many situations in which you will want both vehicles. Assets you specifically transfer to your trust are subject to its terms. If you leave anything out, your will, if properly drafted, will cover it.

The bottom line? Speak with legal and financial professionals who can help you choose the right estate planning vehicles for your situation.

What is Probate - And How to Avoid It

Tue, 22 Mar 2022 15:38:27 GMT

Probate is a necessary, sometimes tedious, legal process.

Probate is a necessary legal process that a deceased person's heirs have to go through when an estate is being settled. In some cases, probate can be a tedious and cumbersome process that may increase the stress associated with distributing wealth and assets to heirs. The more you know, the smoother the process may run, and there are techniques to avoid it entirely.

What Is Probate All About?

During the probate process, the debts and assets of the deceased are set under valuation. It is then determined, depending on whether there is a will or any prior agreement made by the deceased, how their estate and assets will be managed, and who will be the main beneficiary.

In some cases, probate can become quite complicated, especially when there is conflict between family members and other potential beneficiaries which, in some cases, can even lead to trial.

Necessary Costs and Requirements

Probate poses a number of concerns for potential heirs and beneficiaries:

The process will require that all financial and material assets of the deceased be collected, submitted to inventory and appraised—a procedure that can be quite costly, and may last for months, depending on the total value of the estate.
Bills and debts need to be paid, and creditors or debtors will be provided with a chance to sue the estate, and claim a part—or even all—of the assets, before the process can continue.
Finally, remaining assets will be distributed among beneficiaries. If probate is avoided, this is basically the only step that will be required.

So How Can You Avoid Probate?

To prevent unnecessary stress and expenses, probate can be avoided entirely through a number of means: either you can name a transfer on death beneficiary, establish a revocable living trust, or share ownership with a spouse.

If you want to help your descendants and beneficiaries avoid the hassle and expenses associated with probate, these are the best and most straightforward methods to consider. However, be sure to get proper legal advice before making any major decision.

Estate Planning Building Blocks

Tue, 15 Mar 2022 19:30:20 GMT

You know you need an Estate Plan but where do you start?

You may be convinced that you need an estate plan, but you're fuzzy about what it covers and even how to make one. One great place to start is to determine your net worth. Add up rough estimates of the values of your assets, including bank and investment accounts, jewelry, collectibles, cars and boats, as well as retirement plans. Don't forget the death benefit from your life insurance. Add to that any business interests or money owed to you and, of course, real estate.

Subtract liabilities—credit card debt, car and other personal loans and mortgages.

The estate plan you design can protect property for your children, keeping away predatory creditors and any problems due to remarriages or divorces. You want to give your children the tools to grow your assets and benefit your family for generations.

You're sold—but what does it look like? It includes the following:

A will, in which you state who you want to inherit your property and name a guardian to care for your young children should something happen to you and the other parent.
A trust that holds your property—a living trust—so your survivors won't have to go through probate court, a time-consuming and expensive process.
Health care directives that share your wishes for health care to protect you if you become unable to make medical decisions for yourself. Here, we're talking a living will and a power of attorney for health care. Together, these are called an advance health care directive.
A financial power of attorney that gives a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs.
Naming an adult to manage any money and property your minor children may inherit from you, to protect your children's property.
Beneficiary forms that name beneficiaries for bank accounts and retirement plans so that these accounts automatically pay on death. In almost all states, you can register stocks, bonds and brokerage accounts to transfer to your beneficiaries as well.
End-of-life wishes that detail organ and body donation and disposition of your body—burial or cremation.

Now you may be wondering about how to deal with your business—can this be part of an estate plan? Yes, you should have a succession plan that may include a buyout agreement. And what about storing the documents included in your estate plan? You'll want your executor and attorney to have access to these documents, and make sure information about bank accounts, mutual funds and safe deposit boxes is available, as well as real estate deeds, certificates for stocks, bonds and annuities, retirement plans, 401(k) accounts and IRAs. It's a great help to survivors to make it easy for them to know where to find relevant documents.

You also may be wondering whether and where estate taxes fit into your plan. You'll be happy to discover that most estates—99.7%—won't owe federal estate taxes and that estate taxes kick in only if your taxable estate is worth more than $11.4 million. And married couples can transfer up to twice the exempt amount tax free. There still may be state estate and inheritance taxes, which may have different floors.

This is just an introduction to a complex topic. Let us walk you through all the choices you need to make to create the right estate plan that works for you and your loved ones when it's needed.

Do You Need a Will and a Trust?

Tue, 08 Mar 2022 20:47:50 GMT

The elements of a good Estate Plan might include a will and a trust.

Everyone wants to protect their families, even after they pass from this world. That’s the purpose of estate plans. But how do you know whether all of the elements of a good plan are in place?

The first step is understanding the difference between a will and a trust:

A will lays out your wishes for what happens to your property after you die and names a legal representative to carry out your wishes upon your death. You can change your will at any time.
A revocable trust (sometimes called an inter vivos trust) is a trust that you create during your lifetime. Property placed in this type of trust can be distributed during your lifetime or after your death. You can change the terms of a revocable trust at any time because you still retain ownership on the property even though legal title to the property is held by the person or entity to whom the property is passed. For tax purposes, you still are considered the owner of the property because you control what happens to it. For example, if you wish to do so, you can change the beneficiary of your trust’s assets from your child to a charitable institution.
An irrevocable trust is a trust that is created during your lifetime. Once the property placed in the trust and ownership transfers to your beneficiary, you no longer own that property and cannot make any changes to the trust. For tax purposes, irrevocable trusts remove the value of property from your estate so that it can't be taxed when you die. The trust property is also outside the reach of creditors.
Because wills must pass through probate, they become part of the public record. Unlike wills, trusts do not pass through probate so their terms can remain private.

Having both a will and a trust is key to protecting your family and other beneficiaries. Each has its advantages and disadvantages, but together, they provide fuller protection. For example, trusts don’t allow you to name a guardian for children, but wills do. Similarly, your will can spell out wishes for your funeral or specify who you want to receive your watch collection. Trusts cannot do this. Trusts, however, have other purposes: they can be used to plan for unforeseen events, such as disability, or to do important tax planning.

Furthermore, there are many types of trusts. “Revocable” and “irrevocable” trusts are only the tip of the iceberg. Depending on the goals you are trying to accomplish, you may want to put some property in a revocable trust and other property in an irrevocable trust.

End-of-life issues are another aspect of comprehensive planning but are not addressed fully here. Consider whether you want to put in place a do-not-resuscitate order or whether you want extreme life-saving measures to be taken. Select a specific person or people to make these decisions for you in the event you can’t make them for yourself. To address these issues, you may want to include a “living will” in your estate plan.

Remember that state law often governs these documents, which makes it important to get advice from an expert who understands the laws in your area.

Estate planning is complicated and ever-changing. The best advice is to consult your accountant, attorney, financial planner or insurance representative to get the planning advice you need for your specific situation. Call us today if you’d like us to point you in the right direction.

Is This Your Situation? You're Worried About Your Aging Parent

Tue, 01 Mar 2022 21:03:46 GMT

How can I meet my parent's needs and still respect their wishes?

If you are part of the sandwich generation, you may be raising your own children, while also caring for your aging parents. This can be a trying time and can affect nearly every aspect of your life. So, what can you do to make the process a little easier on you and your family?

What are the most important considerations?

Communicate clearly with your parents. Waiting until the need hits is too late to have this essential conversation. Start the discussion now about what your parents want as they age and how you can honor their preferences. Create a plan that can help all of you be happy — one that will provide the proper care at the proper times for the rest of their lives. This will make it easier to communicate once the need becomes apparent.
Take time for yourself. Being a caretaker can be overwhelming. You not only have the needs of your parents to address, but you probably also have a career and work-related responsibilities. In addition, you may have young children or teenagers who need your constant attention. Stress is a leading cause of heart disease, so it is critical that you be able to take time for yourself.
Bring in a third-party mediator. Throughout the process, both you and your parents could benefit from working with a third-party mediator. This is an expert who is unbiased and objective. He or she can review options, give advice and ensure that both you and your parents understand all of the processes.
Consider the options available. Before you simply decide on a nursing home facility, you should consider other potential options, including in-home health care, community living, assisted living and nursing facilities. They may each have a benefit at a different stage of the aging process. What works for you and your parents?

It can be challenging to be in this position with your parents. Before you and your parents make hasty decisions or say words you later regret, work with an expert in eldercare to help you feel comfortable with the choices you make. Call us today to learn more!