The Most Important Documents

I’m often asked what is the most important, a Will or Trust?  My answer is that a durable power of attorney is more important than either of those. 

Why?

If you don’t have a durable power of attorney (and healthcare power of attorney), your rights to manage your private affairs can be ripped away from you during your lifetime and given to a complete stranger, maybe even an overworked Government worker at Adult Protective Services.

Powers of attorney let you decide now who will be in charge and how much power they will have.

The post The Most Important Documents appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/30qIppt


from DeWitt Law Firm, PLLC

If You Don’t Plan, the Government Does

If you haven’t written your own estate plan, the state has written one for you!

First, they have written a plan for your care during your lifetime.  It is called guardianship.  If you are no longer able to manage your own affairs, hopefully a family member and not Adult Protective Services will ask a Judge to take over making your financial, personal, and healthcare decisions.

Second, the state has written a plan for how your stuff is distributed.  This plan is called “intestacy.”  When you pass without a Last Will and Testament or Trust, then the State has decided who gets what, when, and how much for you.  This distribution is rarely what you wanted.

The post If You Don’t Plan, the Government Does appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2HdhNAJ


from DeWitt Law Firm, PLLC

Probate is Tedious

Consequences of Not Estate Planning

Without your plan, you run the risk of Guardianship and Probate.  Perhaps even a complete stranger from the State managing your affairs and money in a cold and impersonal way.

When you become incapacitated – unable to make your own legal, financial, and healthcare decisions – due to accident, health incident, drugs, or alcohol your family may have to seek a guardianship in court to manage your affairs!

A guardianship is also sometimes called “living probate.”

You can think of a guardianship as a limited power to oversee and assist you with your affairs, under court approval.  Guardianships place limits on the power of the Guardian to do things like sell real estate.

Guardianships are public record!

If you and your spouse (or children) don’t own things together, or own things jointly, they will need a guardianship to be able to access accounts (like a 401(k) or IRA) or sell real estate if needed.  It doesn’t matter if you have setup a beneficiary on the account because that only takes effect on death.

Mary never expected her husband John to have a major stroke when he was only 53.  John pulled through but was left with enough mental deficits that he needed help managing money and making healthcare decisions.  He was also left with a few physical deficits that made climbing stairs difficult.

Mary needed to sell the house to downsize and get a single level home that was easier to get around in.

Mary had to, at an expense of time and money:

1. Hire an attorney to get a guardianship ($$$$$)
2. Go to court to get a ruling on the guardianship petition
3. Get 3 appraisals on the property ($$$)
4. Petition the court (ask for permission) to sell the house ($$$)
5. Sell the house
6. Report to the court with the sales information in it ($$)
7. Report annually to the court how the money was used ($$)
8. Repeat as needed
9. If John needs Medicaid, hope the Judge will approve the Medicaid plan

You lose the right to make your own fundamental decisions and manage your affairs.  Your right to make decisions is given to somebody you may not want to make your decisions.  Without a plan in place, that is a risk you take.

If worst comes to worse, Adult Protective Services may be called in to take over your decision making.  Adult Protective Services will not only take a guardianship over you but will take you into custody and take over your affairs.

Not only this, but you must worry about Probate and court challenges by disgruntled family.

The post Consequences of Not Estate Planning appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2GTTmGX


from DeWitt Law Firm, PLLC

Preserve Family Values

Planning shouldn’t just be about moving wealth from one generation to the next.  Planning should also involve preserving and continuing your family story, passing values, giving life lessons, and your experiences so your personal and family legacy carries on long after you are gone.

What family values do you want to pass on to the next generations?

For some, it is the gift of a higher education.  For others, a strong work ethic.

Without incentives and control, wealth can create problems.  With control, and incentives to lead a productive life or get education, you can leave a legacy and pass your values on to your family.

With proper Trust based planning you can make sure that all your values are incorporated with financial incentives and oversight.

Perhaps one of the best ways to preserve family values is by using stories – both written and video.  Take a few minutes to write down family history.  While you may not appreciate it, your children will.  If you know the family genealogy, write it down for future generations.

If you can, record a brief video.  Almost every smart phone has a decent to good video recording.  You can then save that off to a SD card or DVD and include it in your estate planning binder or folder.

The post Preserve Family Values appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2VjCSSR


from DeWitt Law Firm, PLLC

The State’s Plan for Your Stuff

Why Estate Planning?

This is just a quick overview of the major reasons everybody over the age of 18 needs a plan.  

• Plan for your own needs. You need a plan to protect you and your property if you become mentally disabled by accident, medical incident, or dementia or can’t make decisions for yourself for any reason.
• Prevent Probate – pass property to your heirs and loved ones without hassle or public scrutiny privately, securely, and quickly.
• Protect your money during your lifetime.
• Protect your rights during your lifetime.
• Protect your affairs during your lifetime.
• Protect children from themselves, financial predators, and creditors.
• Protect children with addictions or special needs.
• Protect spouses with dementia, special needs, or addictions.
• Protect and provide for your spouse without dementia.
• Reduce or eliminate capital gains and estate taxes.
• Prevent pounding headaches for you and your family.
• Avoid major messes.

The post Why Estate Planning? appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2JgG22f


from DeWitt Law Firm, PLLC

Your Estate

You worked hard for your house, cars, retirement accounts, furniture, cash on hand, and a few extras. 

Those things are your estate.

Your estate is everything you own whether it is owned in just your name or with somebody else.  It is all your stuff. Everything you own, wherever it is, and whoever you own it with.  This includes your real estate, money, accounts, jewelry, clothes, pets, cars, and much more.

But you need to think beyond just what you own.

You can think of your “extended” estate as your choices, decisions, wishes, desires, and rights.  The right to make your own decisions.   To make your medical, financial, and legal decisions.  Your freedom of choice.

Your estate is everything you own.
Your rights are your ability to manage your affairs the way you want and choose who you want to manage them if you can’t.

The post Your Estate appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2IYLSpQ


from DeWitt Law Firm, PLLC

True Story

As I was sitting and thinking about what to write this month, a client told me the story of their husband.  A year ago, he pulled through cancer and was in remission. Then, without warning, something that could happen to anybody happened to him.  He developed an abscess inside his brain.  Within a week, he was gone.

But, instead of having to fight with the doctors during the ordeal, his wife was able to work with them because she had powers of attorney for healthcare.  And, there was no talk of having to get a guardianship in court because of the power of attorney for healthcare and a durable power of attorney.  She was able to access money and accounts as needed.

Then, after he was gone, things went very smoothly because they had done their planning in advance with a Trust.  Without that plan, there could be a hundred loose ends to take care of.

The post True Story appeared first on DeWitt Law Firm, PLLC.

from DeWitt Law Firm, PLLC http://bit.ly/2IYqUal


from DeWitt Law Firm, PLLC