Blended Family Horror Story

I know a family whose dad passed away last year and left the vast majority of his property to the client’s step-mom by operation of law after 20+ years of marriage.  That is, no Will or Trust required.  When step-mom passed, she left everything of hers (what was his) to only her children.

This story illustrates the problem of blended families.  While what she did is not right, it is not illegal.  She was given the property.  It was hers to decide what to do with.  Dad didn’t have any say in the matter.  Step-mom made sure her children were well taken care of while cutting her step-children out completely.

Even if step-mom hadn’t created a Trust in her last days, leaving everything to only her children, the results would have been the same.  Under Arkansas law, without a Will or Trust, your property will be divided between only your biological and adopted children.

What can stop this from happening?

1. Adopt the children. It becomes more difficult to cut out adopted children.
2. Create a trust and spell out exactly how the property is to be divided

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4 Cryptocurrency Risks and Scams and How to Navigate Them — Part 1

It’s no secret that Bitcoin and other brands of cryptocurrency are one of the hottest new investment opportunities.  And if you’re not already invested, you may be considering how to get in, what exactly is the best way to get in, and you should definitely be considering risks and potential scams that are easy to get caught by if you’re not eyes wide open on the issues surrounding cryptocurrency.

Launched in 2009, Bitcoin was the first cryptocurrency, and since then, it has evolved from something only computer geeks and hackers talked about into a global phenomenon that’s transformed how the entire world views money.

Bitcoin is still the most popular—and valuable—digital currency. As of November 2017, a single Bitcoin was worth more than $10,000, with the currency’s total market capitalization at roughly $158 billion.  Bitcoin’s smashing success spawned a legion of other coins, known as “altcoins,” such as Ethereum, Litecoin, and Ripple, and the global market value for all cryptocurrency is currently more than $300 billion.

The huge amounts of money transitioning into the world of cryptocurrency has attracted equally large numbers of investors, looking to tap into this seemingly boundless source of new money. However, because it’s largely unregulated, involves extremely complex technology, and offers significant anonymity, the cryptocurrency market has also garnered the attention of cyber criminals.

Indeed, cryptocurrency’s brief history is filled with stories of people losing major money through hacking and a variety of other traps and scams. As with any new investment opportunity, the key to safety with cryptocurrency is education. While you should always do your own research before investing, here are a few of the most common scams to watch for and how to know whether investing in or using cryptocurrency is right for you.

1. Shady Exchanges

A cryptocurrency exchange is an online platform for trading one cryptocurrency for another or for fiat currency like the U.S. dollar. These platforms are where you buy in and cash out your cryptocurrency, so they’re essential to the crypto market. Exchanges typically charge a fee for each transaction and are based on current market rates or rates set by sellers/brokers.

 

Bitcoin’s popularity has caused the number of exchanges to explode, but not all exchanges are trustworthy. In the past, major exchanges have disappeared overnight and taken all of the digital currency with them, while others offer horrible customer service, and/or make getting your money out extremely difficult.

Your best bet is to stick with the largest, most popular exchanges like Coinbase, Kraken, and Bittrex. That said, legitimate smaller exchanges are out there and can be used safely, provided you’ve done your research. Indeed, there are numerous websites that rank and review crypto exchanges for quality, security, and customer service. If the reviews are largely negative, note that it’s difficult to cash out your altcoins, or mention the customer service is exceptionally poor and/or slow, steer clear.

2. Picking Your Wallet

In order to store cryptocurrency, you’ll want a digital wallet, as that’s the safest way to hold your cryptocurrency. Exchanges are for buying and selling, but not the safest for storing.

Your cryptocurrency wallet doesn’t actually “store” money like a traditional wallet; rather, it stores passcodes, known as keys, that allow you to send and receive digital currency to and from the wallet. There are many different wallets available, but not all of them are totally secure.

Wallets come in two forms: hot and cold. A “hot” wallet stores your cryptocurrency in a location that’s connected to the internet—exchange-based wallets, desktop wallets, and mobile wallets. Because they’re connected to the internet, hot wallets are the most convenient, but that also makes them vulnerable to hacking. A “cold” wallet, conversely, stores your cryptocurrency in a location that’s completely offline. Ironically, the most secure type of wallet for storing digital currency is a cold “paper” wallet.

Paper wallets involve printing out your keys and storing them in a secure location. While paper wallets are the most secure option, if you lose the codes, it’s the same as losing paper currency—you’re screwed, meaning there is no way to recover your investment. Paper wallets are also inconvenient—you have to send your money back to an exchange to use it—which can be a pain if you’re using cryptocurrency on a daily basis.

If you primarily use cryptocurrency as a long-term investment, you should store all of your crypto in a paper wallet. If you’re receiving, spending, or trading frequently, however, you should use both a hot/online and paper/offline wallet. Like real-world wallets, store the money you need for the day in your hot/online wallet, but keep the majority of your funds in a paper/offline wallet for safekeeping.

In all cases, whether you have crypto in a hot wallet, paper wallet, or directly in an exchange, make sure you’ve given the details of where it’s stored and how to access it to the people who need to know in case you’re incapacitated or when you die. Otherwise, it’s completely lost. If the people you love don’t know how to find and access it, it’s the same as it not existing at all. Please talk with us about this if you have any cryptocurrency now that may not have been included in your estate plan, or if you do obtain any in the future. Remember: if your family doesn’t know how to access it, it will be lost if you become incapacitated or when you die.

In addition to safety, investing in cryptocurrency comes with an array of other legal, financial, and tax issues you’ll need to consider. The good news is, as your Personal Family Lawyer we can guide you through these challenges and help you incorporate cryptocurrency investments into your family’s overall financial and estate-planning strategies. Contact us today to get started.

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I Have Twins That Are Disabled, Can I Use One Trust?

As with all legal questions, it depends…

First, do they both have the same level of disability?  Will they both qualify as disabled under the Social Security Definition?  If so, then you can setup one third-party Supplemental Needs Trust (Special Needs Trust) to serve both of them.  If one of the twins should pass before the other, the money will stay in the pool to serve the needs of the other twin.

If they have differing levels of disability, then you would be better served by setting up two independent Supplemental Needs Trusts.  You set both trusts up to pour the money into the other trust if something should happen to one of the twins.  That way, the money keeps on helping the twin that needs it longer.

By using a third-party trust, when both twins have passed, you decide where the remaining money and assets in the trust go.

If grandparents have purchased life insurance and made the twins the beneficiaries, you want to make sure that it pays out to the third-party special needs trust, not to them directly.  By paying to them directly, it might disqualify them from means tested benefits.  The same if you have life insurance you are using to fund their care.  Pay your life insurance to the third-party supplemental needs trust, not to the twins directly.

It might also be a good time to think about setting up a first-party (d(4)(A)) trust for both twins.  One requirement for this type of trust is that they be under 65 years old.  By setting up this type of special needs trust, you make sure that if they do come into money of their own, there is a place for it.

Another option is to open an ABLE account for both twins.  Even though it has a Medicaid payback provision, the account is there for small amounts of money.

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New Bill is Potential Game Changer for Your Family’s Tax Strategy

If you follow the mainstream or social media news, you likely know the new Republican tax bill, which recently passed both the House and Senate, is a potential game changer for tax planning. Known as the “Tax Cuts and Jobs Act,” both houses of Congress passed different versions of the bill, so it’s unclear what the final legislation will include, or if it will even pass.

That said, both versions include some common elements, and since we’re close to year end, it’s important to understand what these potential changes might mean for your family’s tax planning. For example, if you are a W-2 employee, you may want to start a side-line business in 2018 to offset some of the potential negative impact of the tax law changes, and we may be able to help you with that.  If you have specific questions on personal impact to you, contact us prior to year end so we can discuss.

You can use this knowledge to implement tax-saving strategies—by potentially deferring income to 2018 or accelerating deductions into 2017—if you take action before year end.

But keep in mind: None of this is set in stone, yet. By the time this article is published, we’ll certainly have more information. And one thing is for sure, knowledgeable, proactive planning is always wise, especially when supported by a trusted advisor who can guide you.

Higher standard deduction

Both the House and Senate versions of the bill increase the standard deductions to nearly identical levels: $12,200 for singles and $24,400 for joint filers in the House and $12,000 and $24,000 in the Senate. Both plans eliminate personal exemptions, though, so those with dependents won’t see quite as much savings. And if you’ve deducted medical expenses and/or charitable donations in the past, that would be eliminated. So if you donate to charity and are able to write off your donations because you itemize your expenses rather than take the standard deduction, consider increasing your charitable donations this year, as they may not be deductible next year. 

Changes to mortgage interest deduction

The bill keeps the mortgage interest deduction, but adds some new limits. Current homeowners can continue deducting mortgage interest up to $1 million. For new home buyers, however, the deduction will be capped at $500,000. And the bill only allows homeowners to take the deduction for their primary residence, not vacation and/or second homes. What’s more, the bill no longer permits taxpayers to deduct the interest on home equity loans or lines of credit.

Increased child tax credit

Those with young children will see an increase in the child tax credit, too. The House raises the credit to $1,600 per child, with a phase-out for joint filers with an income of $230,000. The Senate plan boosts the child credit to $2,000 per child and sets the phase-out at $500,000.

Expanded estate tax exemption

The House bill sets in motion a full repeal of the estate tax  by 2024, but it boosts the exemption from its current $5.49 million to $10 million starting in 2018. The Senate doesn’t repeal the estate tax, but it does significantly raise the exemption to $11.2 million. Chances are you aren’t impacted by the current estate tax, but if you are, contact us so we can take advantage of potential opportunities to save going into 2018, as it’s likely that the estate tax exemption amount will be rolled back after future elections.

Eliminated state and local income tax deductions

Both bills repeal deductions for state and local income taxes. However, they do still allow for up to a $10,000 deduction for state and local property taxes.

Changes to medical expense deduction

In terms of the itemized medical expense deduction, the House plans to totally eliminate it, while the Senate’s bill keeps it and reduces the income threshold above which medical expenses are deductible from 10% to 7.5%

To review your tax strategies and possibly benefit from these potential changes, contact us as your Personal Family Lawyer® right away—time is of the essence! And, at the same time, it’s never too late to start planning for next year. So even if it’s after the 1st, contact us to begin planning for next year now.

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What Happens if I Pass Without a Will?

What happens if you pass without a will depends on your assets and other planning.

If you have literally no assets, other than maybe the clothes on your back, then nothing has to be done.

If you have all of your assets in trust, then the trustee will follow the instructions in the trust agreement.

If you pass with only a Last Will and Testament, then your estate will have to go through Probate and Administration.  If you pass without a Last Will and Testament, then your estate will have to go through Administration.

Probate is admitting the Last Will and Testament.  That is, proving that it is the valid Will of the deceased.

Administration is the process of paying creditors, gathering assets, appointing a Personal Representative, paying taxes, informing heirs, distributing property, and much more.  You can expect this to take 6 months to years to finish.

In Arkansas, if you have under $100,000 of assets, not including your homestead (that is the place you lived) and don’t owe any bills, then an affidavit may be filed instead of the formal process.  It is still not a short process.  The family must wait 45 days.  If real estate was part of the estate, then an advertisement must be ran in the paper, adding another 3 months to the process.  But 4.5 months and not trips to court makes this a much more desirable process.  It is also much less expensive.

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Why Sue Yourself With Your Own Money?

That is just what Probate is!

Probate is really nothing more than suing yourself, using your own money and assets, for the benefit of your creditors and detriment of your family!

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Pay For a Loved One’s Education With an Education Trust Fund

Today’s parents are all too familiar with the budget-busting cost of funding a child’s college education. It can be challenging enough to put aside sufficient savings for a single child’s education, but for multiple kids, the price tag can make donating a kidney for extra cash seem downright reasonable!

In fact, a survey by The College Board found that the “moderate” cost for all expenses (tuition, fees, books, room and board) for a year of in-state public college averaged $24,610 in 2016-2017. A similarly moderate budget for a private college averaged $49,320.

But don’t freak out just yet! If you’re savvy about estate planning, you can use an education trust fund to save for your child or grandchild’s education expenses and specify exactly how you want those funds used.

You can create an education trust that is payable during your lifetime (living trust) or upon your death (testamentary trust). The disbursements from the trust are designated for a beneficiary’s education, and you can specifically designate how and when the funds are to be distributed—meaning the beneficiary can only receive the funds if they’re compliant with your terms.

Education trusts can be used to fund not only a traditional university education, but any type of learning institution, such as trade schools, educational workshops, community colleges, and private academies. Or even alternative education, such as travel, workshops, retreats, business building programs, and the like. You get to decide exactly how broad or how limited the use of the funds can be.

Trusts can be created for multiple beneficiaries, whether through separate trusts for each individual or a single trust that funds all beneficiaries. If a single trust is established for multiple beneficiaries, you can require the assets to be distributed in a number of ways: equally, using a set amount, by percentage, or the decision as to how much each beneficiary receives can be left to the trustee’s discretion.

Education trusts aren’t generally set up as tax-saving vehicles, as would be the case with a traditional 529 Plan (which does provide tax savings, but has much more restrictive use). That said, there could be some tax savings if the income of the trust is taxed at your beneficiary’s tax rate, which could be lower than your personal tax rate on income.

The only part of the trust that will be taxable is income earned by the investments in the trust (interest and dividends). The trust owes yearly income taxes on income above $600; however, if the trust distributes that income, the beneficiary is responsible for paying taxes at their rate.

The trust is only responsible for taxes on income not distributed by year’s end. And that income is taxed at trust tax rates, which could be higher than the beneficiary’s rate—and possibly even higher than your personal tax rate, so make sure you are clear about whether income should be distributed before year’s end for each year the trust earns income.

If the education trust is irrevocable, meaning that the gift cannot be taken back, and the amount contributed is less than the annual gift tax exemption amount ($14,000 in 2017), then no gift-tax return is required. If the gift exceeds that amount, then it would be necessary to file a gift-tax return, reporting the gift and using up part of your lifetime exemption of $5.49 million. A married couple can exempt $10.98 million in their lifetime.

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What is the Difference Between Trustee and Guardian?

The difference between trustee and guardian is immense.  It is like comparing apples and zebras.

A guardian, in this context, is a person appointed by a court to make another person’s legal, financial, and healthcare decisions.

A trustee is the person in charge of managing the assets in a trust for the benefit of the beneficiaries.

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Guardianship Definition

Attestation Clause

An attestation clause is a provision at the end of a Will that sets out the legal requirements of the Will and says those requirements have been met. By signing the attestation clause, a person is stating and confirming that everything within the clause is true.

For example:

This instrument, consisting of 7 pages, including the Attestation and Proof of Will, was on the date hereof declared by JOHN SMITH to be his Last Will and Testament and he either himself signed the Last Will and Testament at the end thereof or acknowledged his signature already made in the presence of us who, at his request and in his presence, have subscribed our names as witnesses hereto.

Witness 1 signature
Witness 1 address

Witness 2 signature
Witness 2 address

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Want to Be an Awesome Parent? Stop Stressing and Spend More Time on Self-Care

All parents have undoubtedly felt guilty at some point for not spending enough time with their children. A large part of this guilt comes from our culture. American parents are pressured to dedicate superhuman levels of time and energy to caring for their children to ensure optimal development.

This notion is so prevalent, it’s even garnered names like “helicopter parenting” and “intensive mothering.” Trouble is, this style of child rearing is extraordinarily taxing on one’s mental and physical health. Not to mention, many believe such obsessive control not only doesn’t work, but may actually harm a child’s development.

If you’re nagged by such guilt, there’s good news. Recent research suggests that worrying about the amount of time you spend with your kids is totally unwarranted. A 2015 study published in the Journal of Marriage and Family found that for children aged 3 to 11, there was no statistically significant association between the amount of time they spent with their mothers and their outcomes in terms of behavioral health, emotional health, or academic performance.

The study did find that teens experienced less delinquency when they spent more time with their mothers. However, this outcome occurred with teens who spent an average of six hours a week with the family—not exactly a massive commitment. What’s more, the study found when parents are stressed, anxious, and guilty, spending time with kids can even be harmful. Perhaps becoming aware of this now can let you off the hook and free up your time for self care first.

“Mothers’ stress, especially when mothers are stressed because of juggling work and trying to find time with kids, may actually be affecting their kids poorly,” study co-author Kei Nomaguchi said in an interview with the Washington Post.

As with everything in life, successful parenting involves finding a healthy balance between caring for your kids and caring for yourself. It’s vital—for you and your children—to develop a self-care routine that allows you to devote regular periods of time each day to relaxing and recharging your mental, physical, and spiritual resources.

There are countless self-care methods, but one of the easiest, least expensive, and most effective practices is mindfulness meditation. Although the word often conjures up images of monks, monasteries, and mountaintops, meditation is no longer the sole domain of celibate yogis and wandering ascetics.

Today, meditation is practiced by millions of Americans, regardless of religious affiliation or lack thereof. And it’s not just childless hipsters who meditate. Even the busiest parents are sitting quietly each day to reduce stress and cultivate mindfulness—the ability to maintain non-judgmental awareness of one’s moment-to-moment experience.

The reason meditation has grown so popular? It works. Dozens of clinical studies have shown that meditation offers myriad benefits: stress reduction, decreased emotional reactivity, increased relationship satisfaction, enhanced memory, sharper focus, and expanded cognitive flexibility.

Some of you are probably thinking you can’t possibly add another item to your daily to-do list; however,  meditating for just 10 to 15 minutes a day is enough to generate results. And once you experience meditation’s benefits, you’ll likely wonder how you ever got by without it.

Just ask Shana Smith, mother of two and author of Meditation for Moms and Dads: 108 Tips for Mindful Parents and Caregivers. Her book intimately details how meditation made her a better mother and kept her healthy and sane during parenthood’s most trying stages. Indeed, she believes meditation is not only possible for busy parents, it should be mandatory.

“If I forget to meditate, I’m much more likely to be overwhelmed by parenting’s physical, mental, and emotional demands,” she said. “With meditation, these demands are more easily kept in perspective within life’s bigger picture.”

Maintaining perspective on life’s big picture is a critical part of estate planning as well. During a Family Wealth Planning Session, as your Personal Family Lawyer®, we’ll help you assess what’s most important for your family’s well-being and security and protect those assets in a comprehensive estate plan. To this end, estate planning—like meditation—can reduce anxiety and stress over your children’s future, allowing you to take better care of both your kids and yourself.

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What is a Supplemental Needs Trust?

A Supplemental Needs Trust (or Special Needs Trust), commonly abbreviated as SNT, is a Trust setup to supplement people on means tested programs.

If setup correctly, a Supplemental Needs Trust (SNT) will not affect a person’s means tested benefits.

SNTs come in two major types:  The first party or self-settled and the third-party trust.

First Party Supplemental Needs Trusts

42 U.S.C. 1396p(d)(4)(A)) and 42 U.S.C. 1396p(d)(4)(C)) authorize first party trusts.

Both authorized Supplemental Needs Trusts have a Medicaid payback requirement.  This means that when the beneficiary passes away, the Trust must pay back Medicaid for all Medicaid benefits received during the beneficiary’s lifetime and in all states.

The first type is the self-settled trust.  This means that it is the person’s own money in the trust.  Until December 2016, a person could not setup these themselves.  However, in December 2016, the President signed into law a change that allowed a person to create these types of trusts themselves.

The request is that the person is under 65 years old and disabled under the Social Security definition.  The trust must be for the “sole benefit” of the beneficiary.  You can’t mix and match people in the trust.

The second type is the “pooled” trust.  The only stated requirement is that the person must be disabled under the Social Security definition of disability.  To create a pooled trust, the pool invests the money in a common investment fund.  Think of it like a mutual fund.  The common pool invests each person’s money but each person has a separate accounting.

Third-Party Supplemental Needs Trusts

The law does not directly authorize third-party trusts. Third-party trusts are a way to use money for the special needs person’s benefit, while making sure the money is never theirs.

Generally, the well written third-party supplemental needs trust is not countable as a Medicaid resource.  Somebody other than the beneficiary must create the trust, the funds must not be available to the beneficiary, the trustee must have complete discretion, and the trust used to supplement Medicaid or other means tested programs.

One major benefit is that there is no requirement to pay back Medicaid.  Since the money never belonged to the person, you can decide where the money goes.

Another benefit is that the trustee can weigh the pros and cons of using the money for things Medicaid provides and spend on them anyway.  The trustee must weigh the spend against the loss of benefits.  Some trusts provide the language to do this, and others restrict the trustee to just supplementing.

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Tangible Personal Property Definition

Adverse Possession in Arkansas

First, adverse possession (also known as “squatter’s rights”) is a legal principle that applies when a person who does not have legal title to a piece of property—usually land (real property)—attempts to claim legal ownership based upon a history of possession or occupation of the land without the permission of its legal owner.

Boiled down, it means you use the land like it is your own land for the required legal period, and the land becomes yours.

But, in Arkansas, it is harder than that…

The statute requires either that the person holds “color of title” to the land, or “color of title” to land next to the parcel and paid the ad valorem taxes on the parcel.  Next to in has been held to mean not across a street, but touching the the land you have “color of title” to.

Color of title is a title that appears correct and valid but may be defective.  The courts have ruled that deeds are mere color of title; the actual title to land is secured with an irrefutable instrument, like a land patent. When that land is subsequently conveyed to another owner by a deed, the deed colors the title to show the new owner. Thus, the chain of title from the land patent to the present may include many deeds. The actual title remains with the land patent and lawful deeds show the chain of title to the present landowner. Because the ownership in land is a very specific thing, requiring precise and proper transfers of ownership, it used to be that people always required a certified abstract be provided with a deed to ensure the deed was not merely a color of title fiction.

To prove adverse possession in Arkansas under common law, you must fulfill 6 requirements in addition to color of title:

1. Actually use the land as it would be used by the rightful owner
2. The use is visible and notorious.  You can’t hide the fact that you’re using the property and you can’t have the owner’s permission
3. The use is exclusive
4. It is hostile,  That is, you can’t have permission to use the land
5. You intend to hold the property adversely to the true owner
6. For a period of seven years continuously

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Abatement

Abatement is a word you usually hearing during the administration of an estate. The administration of an estate is the process of gathering the assets and distributing the assets under court supervision.

If the assets in an estate are not sufficient to pay the debts, then the assets named to people in the Will shall be “abated.” That is, they will be sold to pay the expenses and debts of the estate.

The normal order is intestate property, the residue of the estate, general gifts, demonstrative gifts, and specific gifts.

Intestate property is property not included under a Will. The residue of the estate is what is left over after all of the gifts listed in the Will. General gifts are usually just a cash gift. Demostrative gifts are cash gifts from a specific account. Specific gifts are specified items of property, either personal or real property.

Note: Non-probate assets do not abate.

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Tax Benefits of Buying a Second Home

Buying a second home can provide you with a place to relax, unwind, and escape from it all. It can also provide you with substantial savings if you take advantage of these tax benefits of buying a second home.

Mortgage Interest

Mortgage interest paid on up to $1.1 million in debt on your first and second homes is fully deductible. Typically, this rule only applies if you treat your second home as a home and not a rental property. But some mortgage interest may still be deductible if you occasionally rent out your second home. To benefit from this deduction, you must use the property for 14 days or more than 10% of the number of days you rent it out a year, whichever is longer.

Tax-Free Profit

You can take up to $500,000 in profit from the sale of a home tax-free if it is your primary residence and you meet the two-year ownership and use requirement. Typically, you do not get the same tax benefit from the sale of a second home. But people have taken advantage of this rule by converting their second home to their primary residence before the sale, thus reaping the tax-free profit.

But in 2009, Congress added a few more restrictions to limit the amount of tax-free profit you can take from a second home. Now, a portion of the profit from the sale of a second home is taxable. The portion is determined by the ratio of the amount of time after 2008 you treated the residence as a second home or rental property and the amount of time you owned it.

Buying a second home can offer many benefits. But to maximize the value of your investment, work with a lawyer to make sure you are not overlooking any potential legal, insurance, financial, or tax problems or opportunities. You must meet other requirements—such as living in the home for two years before you sell it—to take advantage of some of these tax benefits. A Personal Family Lawyer® can help you ensure you meet the requirements, so you can reap all the benefits of owning a second home.

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10 Reasons People Put Off Planning

Reason #1: Intimidation

Estate planning does not have to intimidate you!

If you can create a list of the major stuff you own and the major debts you own, you are well on you way to making a plan.

The other part is deciding who you would want to act for you, that is make decisions for you, if you can’t.  Sometimes this is a difficult decision, but with the expert coaching of your attorney, you’ll get through this part with little trouble.

You should expect about an hour for the initial session in getting to know your attorney and setting goals.  Then you’ll go home with homework to guide you through the needed information.  A short meeting will be scheduled to go over the homework.  At the end of that meeting, you should expect to schedule your signing meeting.

In the meantime, expect a set of drafts for your review.

At the signing meeting, we will sit around a conference table, sign, and witness your documents.  Then they will be put into a notebook for you to take home.

Reason #2: Don’t Care/Apathy

“I’ll spend it all!”

Estate planning is very important for day to day life.

I hope you do and don’t run into any unforeseen things like accidents, medical incidents, or random acts of violence in the meantime.

If you were to become incapacitated for any reason, you deserve to know who will make your decisions, pay your bill, choose your healthcare options, and much more.

If you don’t decide now, then your family will likely have to go to court to get a guardianship over your person and property.  This will cost them a great deal of money and time.

Reason #3: Youth

Youth is not an excuse…

Accidents and random acts of violence happen all the time.

If you are single, you should still have somebody that can legally act on you behalf.

If you are married, even more reason to setup a minimum estate plan to make sure your spouse has access and legal authority to act in you place.

If you have children, then you need to think about protecting them and making sure they and your spouse have immediate access to money and assets without the need of getting the courts involved.

Reason #4: Cost

What cost can you put on peace of mind, security, and comfort?

Basic protective planning for a family starts reasonably and can be added to over time.

Reason #5: Time

How long do you think it will take on your part?

What if I told you, it’s probably less, much less, than that.  In only 5 to 8 hours you can have your part done.  That includes time meeting with the attorney, gathering information, working with banks, reassigning beneficiaries, and signing.

Reason #6: Don’t Think You Have Assets or an Estate

EVERYBODY HAS ASSETS!

If you have assets, you have an estate.  Your estate is everything you own.

The clothes you are wearing are your asset.  The car you drive is your asset.

But you have more than that… Cars, clothes, jewelry, money, stocks, bonds, retirement, life insurance, patents, investments and more are your assets.

If you take the short amount of time to add up the value of your assets, you may be surprised at how much you really have.

And, you have some assets without value.  Your rights.  Your right to make financial, legal, and medical decisions.  Your dignity to live in the manner you want.  Your right to choose your end of life.  Your right to deny medical treatment.  And more…

You should protect your rights as well as your assets.

Reason #7: Complicated

The complicated part is done by the estate planning attorney!

Your part is to define your goals and answers the questions the attorney will provide.

Reason #8: Mortality

Almost nobody wants to think about the end.

But, do you want to leave your family a loving legacy instead of a mess?

Reason #9: Somebody Will Take Care of It

Yes, somebody will take care of it if you don’t.

However, that comes at a high price.

If you are to become incapacitated, somebody will hopefully step up and get a guardianship over you.  That requires getting statements from a doctor, filing a petition, going to court, and filing annual reports with the court.  This adds up quickly to several thousand dollars, a lot of time, and emotional expense.

If you pass without a plan, somebody will have to step up and settle your estate.  Petitions, trips to court, time, emotional expense, and more…  Many thousands of dollars will be spent to wrap up.

Reason #10: Uncertainty About Who to Ask

This can be a tough decision.  Who to ask to be your trustee, executor, etc.

This is not a good reason to keep putting off planning.  You will work through this issue with the help of your planning attorney.

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Ready to Write Your Will? Consider This Before You Go It Alone or Online.

Tweety Bird can Mess Up Estate Plan

If you want to avoid family fights over your estate, take a long hard look at your closet.

Personal property is something that people often fail to consider when drawing up wills and other estate planning documents, attorney John J. Scroggin told an audience of financial planners last week at the FPA Be conference in Nashville.

“The single biggest point of conflict among family members is not the million dollars over here,” said Scroggin, who is an accredited estate planner and a partner with the Roswell, Georgia-based law firm Scroggin & Co.

“It’s the yellow Tweety Bird [figurine] that sat in mom’s kitchen for 40 years.”

…

(That Tweety bird, a real contested item in a case Scroggin handled, was worth about $1.50 based on comparable eBay auctions, he said. He offered to buy a duplicate and not tell the feuding siblings who had mom’s. They declined.)

 

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The Downsizing Generation: How to Handle a Surplus of Stuff When a Loved One Ages

As the baby boomer generation ages—and downsizes—more and more adult children will be tasked with going through their loved one’s belongings to decide what to do with everything. As more and more people downsize after retirement, china sets, furniture, heirlooms, and other belongings are often left behind and unwanted.

Traditionally, these items have been passed down to the next generation. But today, the next  generation has different needs, tastes, and wants. As a result, there is a surplus of “stuff” baby boomers don’t need or have room for, and their adult children don’t want. Maybe that includes you.

This is an all too common problem with a few helpful solutions.

The thought of tossing a lifetime of belongings in the trash is more than many can bear, which explains the advent of the senior move management industry. Today, there are a plethora of professionals who can help your loved one go through each item to decide what should be kept, what should be given away, and what should go to charity or donated.

The cost of this professional service can be up to $5,000 for a large estate, but it eases the burden on the adult children and ensures the loved one’s wishes are listened to and honored.

Bear in mind, as the baby boomer generation ages, charities and nonprofits that typically accept used furniture and other belongings are faced with the burden of too much stuff. The dated styles baby boomers preferred during their prime don’t fit the tastes and needs of today’s generation. The current generation views belongings like furniture and dishes as functional and more disposable, better suited to their urban, fast-paced lives where minimalism and portability are more prized than sentimentality and tradition.

Another way to decrease the time and effort it takes to dispose of all your belongings is to be very clear about what you consider to be heirlooms and valuable items by indicating in your will, or in a separate writing ancillary to your will, exactly what’s important to you and what isn’t.

Most importantly, talk to your children or other heirs to see what they want and don’t want. And to make sure they know what’s important to you, and what isn’t. The more you can communicate about this now with your loved one’s, the better.

You may be surprised to discover that most family fights that break up families aren’t over money at all, but over the personal property of mom and dad that the kids fight over because there was not clear instructions.

As more baby boomers age and non-profits turn away dated donations,  the need for thoughtful estate planning is greater than ever. A comprehensive estate plan can ensure your belongings either go to those who will cherish them or to charities that will benefit from them.

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Weathering the Storm: How Families Can Plan for Natural Disasters

Planning for natural disasters is more than just stocking up on canned food and water. In a natural disaster, food and water will keep you alive, but how will you rebuild your life if your home and community are devastated? Here are some simple tips that will help you get back on your feet should disaster strike.

Make sure you have enough insurance. Basic homeowner’s insurance typically won’t cover damage caused by natural disasters like floods or earthquakes. You might need to purchase additional insurance to cover these types of events. If you’d like an objective review of the types and amounts of insurance you have, contact us, we can help.

Keep a thorough inventory of what you own. Having up to date information on your personal belongings—especially valuables—will make getting them replaced using your insurance claim easier. Pictures of your belongings stored in the cloud is one great way to handle this in advance of any natural disasters.

Create a financial plan. Natural disasters can be financially disastrous as well. You may not be able to return to work and could face the expense of repairing—or rebuilding—your home.

Plan well to ensure you can meet your expenses and make a financial recovery. Account for your insurance deductibles, which can be 10-20% of the total damages and have six month’s salary in savings to cover any gaps in your ability to earn an income.

Protect important information by making digital and hard copies. Put a copy in a fireproof/waterproof safe and give copies to friends or family that reside outside of your area for safekeeping.

It’s also a good idea to work with us. We have unique tools that can safeguard your information to make recovering from a natural disaster easier even when you’ve lost everything.

Follow standard safety recommendations. Keep enough non-perishable food and water for your family for 3-5 days. Consider investing in a generator. Build a first-aid kit, and learn CPR as a family.

Keep a comprehensive emergency kit with contact information, survival tools, and a change of clothes for your family members. Designate a meeting place all family members can get to in case your home is wiped out. And talk with your family about what to do in different scenarios.

Families who have someone watching out for them can recover more quickly from natural disasters. Working with us can ensure you have someone waiting to assist you when you face tragedy.

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Everything You Need to Know About Estate Planning

As the saying goes, nothing’s certain except death and taxes. While there’s not much choice in the matter when your accountant reveals your tax bill, end-of-life dealings are far more flexible.

How you choose to live out your twilight years – and what happens to your estate after you go – is entirely up to you, says Cristean Yazbeck from Hamilton Blackstone Lawyers.

“Unlike a will, which only comes into effect once you pass away, estate planning encompasses decisions about what you want for your own lifestyle and medical care should you be in a situation where you can no longer make those decisions for yourself,” he says.

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There is a Legal Way for Strangers to Take Your Stuff

Guardians are meant to make decisions for those who cannot care for themselves or their affairs, due to age, mental illness, or developmental disabilities. It’s a role typically filled by family members or friends. But in rare instances when no one is available, or loved ones are deemed unfit, a court may appoint anyone who has completed the state’s guardian qualification process, even if that person is a stranger.

In Parks’ case, the scheme was allegedly carried out in such a way that the victims’ relatives didn’t know what was happening until it was too late.

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How Much Can I Gift Each Month?

Making gifts is a good way to start distributing your estate while you are still in full control.

Many people wonder how much they can gift without paying gift taxes…

The good news is that currently (as of 2017), you have about $5,000,000 (5 Million Dollars) of lifetime exemption to paying gift taxes.  That means that you can make a gift of up to $5,000,000 without paying gift tax.  But, the money given today applies against your $5,000,000 estate tax exemption later.

If you make a gift of over $14,000 per person per year, you must file a gift tax return.  But, you don’t pay any taxes until you reach that exemption number.  That is not $14,000 total gifts per year, that if $14,000 to each person each year.  For example, you give your 3 children $10,000 each.  That is, $10,000 per person this year.  No gift tax return is due.  However, if you gave them $14,001 each, then a gift tax return is due.

But, no good deed goes completely unpunished.  If you should need to qualify for Medicaid within 5 years of making the gift, it can be counted against you…

As always, it is best to seek professional advice.

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Reasons to Create Your Plan

If you check any of these, you need a plan…

___ Provide a clean, easy legacy, not a mess.  i.e. make it easy for children.

___ Protect Children From Themselves

___ Addictions

___ Drugs

___ Alcohol

___ Gambling

___ Creditors

___ Gold Digger Spouse

___ Poor Money Skills

___ Protect Minor Children

___ Guardians

___ Access to Funds

___ Avoid Probate

___ Time

___ Cost

___ Publicity

___ Support Charity

___ Avoid Family Fighting

___ Peace of Mind

___ Leave an Inheritance, Not a Mess

___ Protect Children’s Inheritance

___ Creditors

___ Financial Predators

___ Gold Digging Spouse

___ Special Needs Planning

___ Avoid Government Interference With Private Affairs

___ Probate

___ Guardianship

___ Avoid Family Fights

___ Special Needs Planning

___ Means Tested Benefits

___ SSI

___ Medicaid

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How Can I File a Claim Against An Estate?

Filing a claim against an estate is probably easier than you think.

The first step is to find out what county the estate is being handled in and if probate is opened.  You can search on Arkansas Court Connect or call the County Clerk in the county and ask.  Be  sure to write down the case number, the executor’s name, and the attorney’s name.

If Probate has not been opened, then you cannot file a claim…

Next, you need to fill out the claim form and file it with the County Clerk.  You can find the form to claim at The Official Arkansas Probate Forms (Form 18).

Leave a two inch margin at the top of the form.  Then create caption like this:

IN THE CIRCUIT COURT OF <TYPE YOUR COUNTY HERE> COUNTY, ARKANSAS

PROBATE DIVISION

IN THE MATTER OF THE GUARDIANSHIP OF: <DECEDENTS NAME>, Deceased

No. <CASE # HERE>

AFFIDAVIT TO CLAIM AGAINST ESTATE 

 

After the caption, you will type in the rest of the form, date, and sign it.

I, ____________, do swear that the attached claim against the estate of ____________, deceased, is correct, that nothing has been paid or delivered toward the satisfaction of the claim except as noted, that there are no offsets to this claim, to the knowledge of this affiant, except as therein stated, and that the sum of ________ Dollars ($ ________) is now justly due (or will or may become due as stated). I further state that if this claim is based upon a written instrument, a true and complete copy, including all endorsements, is attached.

Date: _________, ___.

_________________________________

 

After filling it out, dating, and signing file it with the County Clerk for a fee of $5.00.

The clerk will file mark it and return you a copy.  Send a copy to the attorney of record.

Here is a sample taken from a real case:

 

IN THE CIRCUIT COURT OF BENTON COUNTY, ARKANSAS

PROBATE DIVISION

IN THE MATTER OF THE ESTATE OF JOHN SMITH, Deceased

CASE NO. PR 14-999

AFFIDAVIT TO CLAIM AGAINST ESTATE

I, _______________________________________________________, do solemnly swear that the attached claim against the estate of JOHN SMITH, deceased, is correct, that nothing has been paid or delivered toward the satisfaction thereof except what is credited thereon, that there are no offsets to the same, to the knowledge of his affiant, except as therein stated, and that the sum of ______________________________________________________ DOLLARS ($__________________) is now justly due or will or may become due as stated therein.  I further state that if this claim is based upon a written instrument, the copy thereof, including all endorsements, which is attached hereto, is true and complete.

 

Date:

 

________________________________

Print Name:

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Rampant Risks of Not Planning!

This is just a partial list of what you risk by not planning…

• You stand to lose your autonomy as a person and be put into the hands of Adult Protective Services or somebody else that you don’t desire
• You put your family’s security at risk
• You put your assets at risk
• Your private affairs will be publicized
• If you are incapacitated, your family will have to go to court to access your funds
• Your spouse’s next spouse can cut your children out
• Estate tax rates start at 40%

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Trusts Are Not Just For The Well Heeled

Trusts are not just for the wealthy.

In a nutshell, a trust is a legal arrangement that allows an individual to place his assets such as shares, money and property such that an appointed person or trustee can manage and administer them for the benefit of others (beneficiaries).

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Can a sibling who is executor of parents will legally omit another sibling from their inheritance?

The Executor must make distributions as stated in the Will. The Executor cannot change the Will.

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Philip Seymour Hoffman’s 12 MILLION DOLLAR MISTAKE

A few moves could have saved the loved ones of actor Philip Seymour Hoffman a lot of money. Even if you don’t have a $35 million estate, like Hoffman’s, there are some things you could learn from it…

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Golden Myths of Estate Planning

Do You Believe That Estate Planning Only Applies to End of Life Events?

Nothing Could Be Further from The Truth.

Myth #1: Estate Planning is Only for End of Life Events

Nothing could be further from the truth!

Estate planning covers any unforeseen incidents during your lifetime as well as preparing.

The combination of a Durable Power of Attorney; Power of Attorney for Healthcare; and Living Revocable Trust makes sure your assets are there and working for you in case you are incapacitated (car wreck) for any length of time.

Myth #2: My Spouse Can Take Care of My Affairs (Financial, Legal, and Healthcare)

Not legally.  If you don’t have a Durable Power of Attorney, your spouse may end up in court seeking a guardianship.  Guardianships cost many times what a Durable Power of Attorney costs.

Guardianships are limited in power and require return trips to Court for many things.

Myth #3:  My Children Can Take Care of My Affairs

Not legally.  If you don’t have a Durable Power of Attorney, your children may end up in court seeking a guardianship.  Guardianships cost many times what a Durable Power of Attorney costs.

And, your children may end up fighting over who should be your guardian, adding to the time and cost.

Myth #4:  A Will Helps You When You Become Physically or Mentally Incapacitated

No.  A Will is totally ineffective until passing, and, therefore, does nothing to help you through incapacity and disability.  Your family or friends may have to go to Court to start costly guardianship or conservatorship proceedings.

Myth #5:  A Will is Enough

A Will is not enough.  A Will does nothing for you during your lifetime.  A Will is basically a letter to the court and your heirs detailing how to divide up your property.

Next Steps

Get The Book Below

OR

Call (479)717-6300 Today For Your FREE Initial No Obligation Planning Session.

 

Providing Services Including

Wills ♦ Trusts ♦ Financial, Legal, and Healthcare Powers of Attorney

♦ Revocable Living Trusts

♦ Probate Avoidance ♦ Healthcare Powers of Attorney

♦ Probate and Estate Administration

♦ Special Needs Planning ♦ Special Needs Trusts

♦ Medicaid Planning and Applications ♦ Long Term Care Planning and Selection

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4 Reasons Why a Plan Will Change Your Life

Download a PDF of this article, CLICK HERE, no opt-in or email address required.

Summary

1. Stop Fretting About the Future
2. Stop Worry About Your Family and Protect Them
3. Avoid Court Intervention in Your Private Affairs
4. Leave a Legacy and Never Stop Teaching

Life is uncertain. Accidents happen. Unplanned events occur.  Health can go from good to bad in a heartbeat.

Families are greatly affected and impacted every day, but you can pick if that impact will be positive or negative. When you get your affairs in order, not only are you putting steps in place to ensure the well-being of your loved ones but you are also shaping your legacy in a meaningful way.

Design your plan to positively impact those who love and need you so that even IF there were a situation where you can no longer financially or emotional support others, you can still maintain control over your own legacy.

Reason #1: Stop Fretting About the Future & Your Choices by Getting Peace of Mind

You should prepare not only for when you pass on, but also for incapacity.  At some point in time you could suffer from injury, have a medical incident, dementia, or some other form of incapacity.  Without your plan in place, this incident may leave you helpless, at the mercy of people and institutions that don’t know you or know what you want.  (Adult Protective Services…)

The chances of you becoming unable to make your own decisions, that is becoming incapacitated, at some point in your life is high.

Even being in a “simple” car accident can leave you unable to make legal decisions for months, until you are off the painkillers.  Not to mention what could happen if you hit your head.

You get peace of mind about what will happen during these times by having your legally enforceable plan in place.  Make decisions now and pick who will make your decisions later.  Know that you have picked a strong person you trust to make decisions in times that you can’t, or don’t want to, make decisions.

While nobody can predict the future, you can make sure your future decisions will be made by somebody you trust and that can carry out your wishes.

You create your crystal clear, legally enforceable instructions to your “attorney-in-fact” about who is in charge and the decisions they can make.  You can even spell out specific decisions.

You can create clear, legally enforceable instructions about what will happen to your assets now and later that give you peace of mind before something happens.

Reason #2: Stop Worrying About Your Family & Protect Them

During already tough times, why force your family to make difficult decisions?

With your plan, you can ease the burden on your loved ones in difficult times and make a positive impact.

Without your plan, your family could be in Court for years fighting over what is left.  Your family could be in Court for years fighting over your healthcare if you don’t leave them clear, legally binding instructions.

Without your plan, the State has already decided who gets how much and when they get it.  You can plan to skip the Courts and get your family the money they may desperately need as quickly as possible, without a Judge standing between them and the money and other property.  And, the Court route is expensive in time and money.

Without your plan, your family may have to make tough decisions under very difficult circumstances, at a time when they really need your wisdom, even if it is only in writing.

If you have minor children, they could end up in foster care, even for one night.  On the worst day of their lives, do you want them to have to go with Child Protective Services, even if it is just overnight?

You can take steps to make sure your family knows what you want and how you would make your decisions.

You can take steps to protect your minor children.

If you have children with credit problems, or creditors hounding them, your plan can protect the money from their creditors and help them get back on their feet.

With younger children (under 30) you can hold the bulk of the money back so they can mature and learn to manage money before getting a large lump sum.

If you have children with drug, alcohol, or gambling issues, you can hold the money for when they recover from their addiction.  In the meantime, you can make sure they have a place to live and the bills are paid, without giving them the money directly.

You can plan to make sure your family gets what they need, when they need it, how you want them to have it instead of the Laws and Judge.

Reason #3: Avoid Court Intervention and Interference with Your Personal, Private Affairs

If you don’t have a crystal clear, legally enforceable plan, you risk somebody (perhaps somebody you wouldn’t approve of) going to court and “ripping your rights away.”  That person gets to take over making your decisions.  The courts basically rip away your right to make your own decisions and give them to somebody else.  And, there are many decisions that must be made under future court supervision.  Not to mention the annual reports due to the court.  All of this comes at an emotional and financial cost.  And the cost to your dignity may be high.

Everything involved with this process becomes part of the public record.  You not only get your rights “ripped away,” you lose your privacy too.

If you don’t have a Last Will and Testament, or just a Last Will and Testament, your family will probably end up in court to wrap up your final affairs.  Your assets will be passed out under the supervision of an impersonal Judge who must follow the law and the mandates of your Will (if you have one).  If the law and your Will conflict, the Judge gets the final decision about your personal desires.

You have ways to protect your privacy from public scrutiny! You can defend your dignity!

Reason #4: Leave a Legacy and Never Stop Teaching

You can use your plan to leave a legacy and a final message to your children and loved ones.  Perhaps even a short video.

With your plan, you can even leave a legacy of what is important to you.  You can continue to teach your children.

If charity and giving are important to you, use your plan to leave money to those charities.  Show your children how important giving is.

If you have special people in your life outside of your immediate family, you can leave them a small gift as a remembrance.  It means more than you think.

You leave a legacy of love with your plan.

NEXT STEPS

Life is uncertain. Accidents happen. Unplanned events occur.  Health can go from good to bad quickly.

Your family is depending on you to care for them, even if you can’t be there.

For more information on how your plan can take care of you and your family:

Give us a call at (479)717-6300

OR

Click here to get the book Secrets of Excellent Estate Planning.

Prefer getting your book by mail?  Click Here.

If you would like to talk to us, then give us a call.  (479)717-6300.

If you are ready to create your plan, then we will sit down with you for a complementary initial planning session.  (479)717-6300.

Provided as an educational service by Gary DeWitt, Attorney at Law. If you have questions or comments in the areas of Estate Planning, Wills, Trusts, Powers of Attorney, Medicaid, Medicaid planning, or Probate feel free to contact Gary.

Providing Services Including

Wills ♦ Trusts ♦ Financial, Legal, and Healthcare Powers of Attorney

♦ Revocable Living Trusts

♦ Probate Avoidance ♦ Healthcare Powers of Attorney

♦ Probate and Estate Administration

♦ Special Needs Planning ♦ Special Needs Trusts

♦ Medicaid Planning and Applications ♦ Long Term Care Planning and Selection

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ABC’s of Estate Planning

A Will alone will not stop probate.

Estate Planning Is as Easy As ABC…

A – Avoid Probate

B – Be in Control

C – Call Now

Call (479)717-6300 now or visit www.DeWitt.law now to setup your Complimentary Initial Session to see which plan is right for you.

Probate is done in a court of law!  Probate’s purpose is to transfer property to those named in the Will or to the next generation.

Probate is costly!  It’s time-consuming!  It’s challenging!  It’s public!  It’s emotional!

Your loved ones may be fighting for years in court for what you wanted them to have.

With the proper tools and documents in place, you and your loved ones can avoid Probate.  You can stop your loved ones from having to deal with emotionally painful problem after painful problem.

You stay in control of your money and decisions even if you become incapacitated.

With proactive planning, you leave your loved ones a true legacy.

Without planning you lose the opportunity to protect your family from an impersonal, complex, governmental process that can become a nightmare.

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Don’t Wait Until It’s Too Late For Your Estate

I was reading the article Estate Planning Before Tragedy Strikes (http://ift.tt/2wNvmzy) and found this quote to be of particular importance to families and their children. (bold added)

Before looking into the law, like many young parents, I assumed that my wishes for my 4-year-old would be carried out by my family in the event anything happened to me and my husband. Without a legal document, however, my wishes mean nothing. Were we to die without a will, the court would decide which family member would care for my daughter based on her “best interests.” How would the court know what these interests are? What if my family and my husband’s family disagree on where she should be?

Similarly, any assets we had would be handled by the state. Poor estate planning on superstar Prince’s part recently illustrated how dying “intestate,” or without a will, can affect your family for years to come.

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The Consequences of Not Planning

The consequences of not planning can be expensive financially, emotionally, and personally.

So many people avoid estate planning for one reason or another.

Before you decide against planning or to delay planning, you need to understand the consequences of not having a plan   …

The State of Arkansas Takes Over

A Judge Makes Your Decisions

At the times when you are not able to make your own decisions a Judge, who probably doesn’t know you, can decide who makes your decisions.

Incapacity

Your spouse does not get to just take over your personal, legal, and financial affairs.

If, when, you become incapacitated, a Judge that probably does not know you or is familiar with your circumstances makes the decisions.  The Judge decides who will manage your legal, financial, medical, and personal affairs.

This process, known as guardianship, is expensive on your family in money, time, and emotions.  Family often fights over who should be in charge, leading to more money and time being spent.

Even if everybody agrees, the expense could easily be more than the cost of creating a proper estate plan in the first place.

In short, a Judge will rip your rights away and give them to somebody else to manage.

Intestacy

Intestacy basically means without a Last Will and Testament.

If you don’t have a plan for your assets, that is you are intestate, the State will take over.

In fact, the State of Arkansas already has a plan for your assets.  That plan is called “intestacy.”  In Intestacy, the State has already decided who gets what, how much, and when.

Intestacy takes place in Probate Court before a Judge who probably doesn’t know you or your situation.

Distribution of Assets

Your spouse does not automatically get everything!

When you are intestate, that is without a Last Will and Testament, the State has already decided who gets how much.

Your spouse is only entitled to 1/3^rd of the money and 1/3^rd of the real estate.  Worse, your spouse doesn’t get the 1/3^rd of the real estate outright, but in what is called a “life estate.”  The life estate means they can live there and have to maintain the home, but can’t sell it without permission of all of the other heirs (your children).

Your children get the other 2/3rds outright.

And, the process will take 3 months to years to finish.  During that time, the money is not available to people who may desperately need it.

You Spend Too Much Money

Conservatively, a guardianship costs $1,500 without including fees and expenses.

Intestate proceedings are around $4,000 without fees and expenses.

Expect this to get more expensive every year.

You’ve already spent $5,500 plus an unknown amount on fees and expenses.

$5,500 is almost double what a Trust based estate plan that avoids probate costs up front.

The other downside of a Last Will and Testament is that it must pay off your debts and final expenses.  That is even more money spent.  A Trust does not have to pay off your final debts.  More money saved!

What Can I Do?

If you decide you want you and your family to avoid these expenses and hassles, then you need to take steps to avoid guardianships and probate.  The best way to do that is to create an appropriate estate plan.  An estate plan that protects you, your family, and your money.

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Imagine a Pill

Imagine there’s a pill that takes away your stress about the future and allows you to live life more freely. A pill that makes sure you and your family are taken care of.  Your life is so much better because it’s so much easier to achieve your goals.  A pill that provides other benefits such as:

• a significant decrease in stress over money
• an increase in the amount of money left to children for their care and benefit
• a decrease in the amount paid to courts and attorneys
• improved organization of your personal and financial life
• a team of professionals to care for you, your family, and your money
• becoming proactive instead of reactive to life events
• a more disciplined approach to money and life
• no more worry about who will take care of you
• a significant increase in peace of mind
• a significant decrease in stress overall

There are no unwanted side effects.  How many pills would you order?

While this pill doesn’t exist, estate planning provides the all the same benefits.

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Will Attorney

Lawyer for Wills

Trust Attorney

When you are looking for a trust attorney, there are several questions you should ask…

Here are 3 questions to ask a trust attorney

Question 1: Do you specialize in trusts?  I.e. Are you a trust attorney?

Other attorneys simply don’t have the knowledge, skill, judgment or experience to write a trust properly.

Trust writing is a complex area of law, and requires skills that are not necessarily taught in law school, such as project management and insight.  Only with life experience and professional experience can an attorney be a truly good trust writer.  You should always be willing to ask an attorney about her kills.  A good attorney will share the non-intimate details.

Question 2: Can I trust this trust attorney?

Nothing is more important in a lawyer/client relationship than having a lawyer you trust.  And nothing is more important to most attorneys that they can be trusted by the clients they work for.

Question 3: Do you do all the work yourself?

If the attorney has an assistant create your estate plan, then why hire the attorney?  You may as well hire the assistant (except that it is illegal in most states to practice law without a license…)

Note, it’s not uncommon for lawyers in solo practice to ask a funding coordinator to transfer property into your trust.  Even so, funding is a fairly routine function and you are well protected as long as the lawyer supervises the process.

 

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Questions?  Need Help?

If you need help or have questions, please Click Here to Contact Us.

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Probate is a Hassle

How much easier would you family’s life be if they never had to go to Court?  How much better would it be to not have to spend your hard-earned money on lawyers for Court?

Probate Is A Hassle

Probate is a hassle, is expensive, and involves many trips to Court.

Part of going to Court is finding a lawyer to represent you in court.  That alone can take a lot of time as you interview attorneys to find the one you want to use.  All the phone calls and trips to lawyer’s offices.

Time And Money Wasted

Going to Court is a huge hassle.  You spend hours and hours of your precious time driving to the courthouse and waiting for the Judge.  Not to mention all the high lawyer’s fees and Court costs.  Hours and hours of expensive attorney fees preparing for Court.  Expensive certified mailings to everybody involved.  Summons to appear in Court must be sent via certified mail to everybody involved.

Law Is Devoid Of Emotion

Laws are emotionless and don’t take into account family dynamics.  They were written by the legislature and are generic.  They don’t take into account your specific situation, but just try to cover the most people they can.

The job of a Judge is to follow the law without emotion.  They have little wiggle room to make exceptions for your particular situation.

Property In Limbo

Not to mention that all the property is in limbo during probate.  Until the proper time in the process, which may be years, property cannot be distributed.  You family may have to wait to get money they desperately need.

Public Eye

Maybe even worse than Court is the fact Probate proceedings are public record.  It can really be a hassle to your family to get mailings and phone calls from financial predators just wanting a “piece of the pie.”

Avoid Probate To Avoid Hassle

Probate takes many trips to Court, spending time and money every time.

Avoid Probate and avoid hassle, fees, and costs for your family.

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I’m Looking For An Estate Planning Attorney Near Me

If you are looking for an estate planning attorney near me, hopefully you have come to the right spot.

We are located in centrally located downtown Springdale, Arkansas.  We serve all of Benton and Washington counties including Bella Vista, Arkansas; Bentonville, Arkansas; Rogers, Arkansas; Lowell, Arkansas; Centerton, Arkansas; Springdale, Arkansas; and Fayetteville, Arkansas among others.

If you are unable to get to us, we can come to you at your home or office.

Roots In The Community

By choosing an estate planning attorney near me, you get an attorney with roots in the community.  This attorney cares about his reputation and is more likely to be available in the future when you need help.  They won’t be here today and gone tomorrow.  Attorney’s with roots in the local community are also much more likely to invest time back into the community.

Free First Meeting

Shouldn’t you be able to talk with the lawyer for free before you decide whether to hire him?  Shouldn’t you get the chance to make sure you are comfortable with them?

Also, ask specific questions about your estate and your objectives, such as: “How do I protect my children from abusive relatives if something happens to me?”  “Can I keep my kids from controlling their entire inheritance at age 18?”  “Can I protect my children’s money from creditors?”  “How can I leave money for my child’s education?”

Questions Welcome

An attorney who structures meetings by allowing enough time to answer your questions.  High-volume practices have short appointments so they can move clients quickly through the process.  I don’t know about you, but this is not the level of service I expect when I hire a lawyer.

Fair Fees

At best, you get what you pay for.  Most people do not shop for the cheapest doctor.  Instead, they focus on the doctor’s qualifications and experience.  You should apply the same principle when selecting an estate planning attorney.  If the fee is too low, the lawyer may be leaving something out.  Make sure the fee you pay and the services you receive are of equal value.

Not to say you should use the most expensive attorney out there, but maybe you should make sure the cheapest quote doesn’t nickel and dime you to death.

A fair attorney will charge you a flat fee that includes everything, including filing fees and copies.

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Estate Planning Books

Lawyer For Estate Planning

There are several critical questions to ask when you are looking for a lawyer for estate planning.

Hi, I’m Gary DeWitt, a lawyer for estate planning in Northwest Arkansas.

Here are 3 questions to ask a lawyer for estate planning.

Question 1: Do you specialize in estate planning?

Other attorneys simply don’t have the knowledge, skill, judgment or experience to plan your estate properly.

Estate planning is a complex area of law, and requires skills that are not necessarily taught in law school, such as project management and insight.  Only with life experience and professional experience can an attorney be a truly good estate planner.  You should always be willing to ask an attorney about her plan.  A good attorney will share the non-intimate details.

Question 2: Can I trust this attorney?

Nothing is more important in a lawyer/client relationship than having a lawyer you trust.  And nothing is more important to most attorneys that they can be trusted by the clients they work for.

Question 3: Do you do all the work yourself?

If the attorney has an assistant create your estate plan, then why hire the attorney?  You may as well hire the assistant (except that it is illegal in most states to practice law without a license…)

Note, it’s not uncommon for lawyers in solo practice to ask a funding coordinator to transfer property into your trust.  Even so, funding is a fairly routine function and you are well protected as long as the lawyer supervises the process.

Secrets of Excellent Estate Planning

Feel free to call 479-717-6300 with your questions or to get my free book, “Secrets of Excellent Estate Planning”. The book is also available on my website.

A Will alone will not protect you from Probate. Probate means your family could be in court for years fighting for what you left them. Wills and trusts serve different purposes. And, you need to know the difference.

I offer you expert guidance and honest advice, giving each issue the attention and sensitivity you deserve.  I will give you all the information you need to make well informed decisions for you and your family.

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