Trusts

Who should have a revocable trust or irrevocable trust?

• Anybody that wants to avoid probate (but there are other ways too…)
• Anybody that is receiving certain government benefits and is expecting an inheritance or settlement
• Anybody with young children (say under 30) and want to continue to control the money.

What is a Trust?

A trust is a “fictional” legal person that holds title to your property.  The trustee controls decisions for the property in the trust.  If you are confused, then I can’t blame you.

Think of a trust as a bucket that you put your stuff into.  Then somebody, called the trustee, has control over the stuff in the bucket.  Later the bucket gets poured out to the people you name in the trust.

A revocable trust may be dissolved during the settlor’s lifetime by the settlor.

An irrevocable trust continues to exist until the termination conditions spelled out in the trust are met. It is possible to set these up to where property can be exchanged in and out of the trust, but the trust itself cannot be revoked or modified by the settlor.

Why have a trust?

• Do you want to avoid probate?
• Do you want to minimize estate tax?
• Do you want your assets protected if you can’t protect them?
• Do you want to spread out your gifts to your children until they are more wise and mature?
• Do you want to continue to have control over your stuff?
• Do you want to protect your stuff from a spouse’s next spouse and their children?

DeWitt Law Firm, Estate Planning

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Special Needs Planning

Who Needs to Do Special Needs Planning?

• Anybody that receives or is about to receive public benefits
• People that have loved ones with an obvious need
• Anybody that may receive public assistance after a settlement
• People with needs that are about to receive an inheritance or settlement

What is Different about Special Needs Estate Planning?

People with special needs need special planning in order to qualify for, or to continue to qualify for public benefits.  Too much money on hand can be a bad thing unless it is protected in certain ways.

Also, you need to carefully consider a guardianship for people with needs.  If they are over 18 and cannot manage their own affairs, you need to look into a guardianship.

When Should You Do Planning?

• When you have a loved one that receives or is about to receive public benefits
• When there is an obvious need
• When you may receive public assistance after a settlement
• When you are about to receive an inheritance or settlement

Why do Planning for People With Special Needs?

1. Without special handling of the money, an inheritance can wipe out a person’s public assistance benefits
2. People may need somebody to manage their affairs for them with a guardianship

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Guardianships

Who should nominate a guardian?

• Anybody that is concerned about who will care for them.
• Anybody that has children under 18.
• Anybody that has a special needs child that cannot make their own decisions.

What is a guardianship?

A guardianship is a court decision appointing somebody to manage the affairs of a person.

When should you nominate a guardian?

If you have young children, very soon.
If you are worried about who cares for you, even sooner.

Why nominate a guardian?

1. Do you have a plan in place that will safeguard your children if you can’t make it in time to pick them up from a daycare or school?  Did you know that they may have to call the authorities if you are too late?
2. Do you have a plan in place in case you don’t make it home in time for the sitter.  Will the sitter end up having to call the authorities?
3. Do you know what will happen to the house and money if your spouse should not make it?  This is especially true in a marriage where the house was owned by one spouse before the marriage.
4. Did you know that without legal documents, you can’t make medical or financial decisions for your spouse legally? This may place you and your children at risk if your spouse is incapacitated even for a short period of time.
5. If you and your spouse can no longer care for your children, who will raise your children?

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Mid-America Accessibility Summit

Having a great time meeting all these great people.





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Powers of Attorney

Who should have a power of attorney?

Everybody.  Seriously.  You never know when fate will strike and you can’t make decisions for a few days.
People going to boot camp should have a temporary power of attorney so somebody can pay their bills while they are away.
People going to a nursing home should also have a power of attorney.

What is a power of attorney?

A power of attorney means that you have signed a paper giving somebody else the right to make decisions and sign for you.  No matter what you have heard, they do not remain active past death.

When should you have a durable power of attorney drawn up?

Now.  As soon as possible.  Like insurance, if you have it you’ll probably never need it…

Why have a power of attorney?

• Who do you want making decisions if you are unable?
• What kind of decisions do you want them to make?

from DeWitt Law Firm, PLLC