DeWitt Law Firm, PLLC

Monday, October 5, 2015

Wills

Who should have a will?

Anybody and everybody.

What is a Last Will and Testament?

A will is instructions on how to pay the final expenses, who should take care of wrapping everything up, and who gets your stuff.

A Last Will and Testament is only one of the many estate documents of a complete estate plan. If you die without a will or trust, you are said to have died “intestate.” The state will determine who gets what in that case. You really want to put your plan in place of the default state plan.

When should I have a will drafted?

If a will is what you want, then immediately.

When should I have a will updated?

Anytime you have a major life change such as the birth or adoption of a child, buying or selling real estate, major inheritances, etc.

Why have a will?

Answer these 3 questions and you will have a good idea of what your estate plan needs to be:

Who should get my stuff?
How much should each person get?
When should they get it?

Making a will, even a “simple will” is better than nothing in making your wishes known. At the very minimum everybody should create a will. Creating a will is not the hard task you may think it is if you keep the 3 questions in mind. However, writing your own will is not suggested as legal wills are complex legal documents in the area of estate law.

from DeWitt Law Firm, PLLC http://ift.tt/1OTWwdh

from DeWitt Law Firm, PLLC

Sunday, October 4, 2015

Revocable trust is important estate planning tool

(Photo: Desert Valley Times) The use of a revocable trust (sometimes referred to as a “living trust” or “family trust”) to plan one’s estate has become very popular. Despite the popularity of the revocable trust, revocable trusts are not without their potential problems. First, it is important to understand that there is no definitive answer as to whether a trust is necessary. Another estate planner explained that asking whether a revocable trust is good or bad is like asking whether a wrench is good or bad. It depends on what you are trying to accomplish. A trust is just an estate planning tool. Whether it is good or bad depends on your needs and desires. Although there are many factors to consider in determining whether a revocable trust is right for you, here are a few of the more significant factors: Avoiding Probate It is true that a properly funded trust avoids probate. If the goal of the client is to avoid probate, it is critical that the trust be properly funded. To “properly fund” a trust, title to all assets and beneficiary designations for insurance policies and retirement accounts must be reviewed. A properly funded trust avoids probate because the owner of the assets (generally termed the trustor, settlor, grantor or trustmaker in the trust document) conveys ownership from him or herself (in his or her individual capacity) to him or herself as trustee of his or her trust. Probate is avoided because for “probate purposes” the deceased […]

Click here to view original web page at www.thespectrum.com

from DeWitt Law Firm, PLLC http://ift.tt/1Z0rjss

from DeWitt Law Firm, PLLC

Saturday, October 3, 2015

Fill-in-the-blank estate planning is playing with fire

(Photo: Special to the Statesman Journal) This summer, Oregon saw more forest fires and smoke than any other year in recent memory. Families and towns were evacuated, and some did not have homes to go back to. Like a forest fire, an estate plan with a will or living trust that is poorly developed often goes up in smoke along with your family relationships. Putting time and thought into your will or living trust is time well spent. In general, a will transfers an estate after death to beneficiaries through court probate. A will also names guardians for children. A living trust is often the heart and soul of an estate plan. A trust contains instructions for your care during disability and enables named trustees to handle your finances. A trust transfers assets after your death, avoiding court probate. By developing these legal documents beyond filling in the blanks on forms, your estate plan can incorporate your goals, wishes and values into a plan for the benefit of you and your family. The following planning considerations will help preserve family values and alleviate any sparks that could ignite family relationships after you are gone: For children, consider a plan that does not pay outright but provides them with guidance on how to spend inheritance (for example, for college or retirement). Without guidance, most inheritance is spent within 18 months. For nonprofits, consider setting up a charitable fund with as little as $25,000 that continues for generations. Oftentimes, parents are […]

Click here to view original web page at http://ift.tt/18LdI16

from DeWitt Law Firm, PLLC http://ift.tt/1RmcXO7

from DeWitt Law Firm, PLLC

Sibling Rivalry Complicates Estate Planning

When a parent dies, siblings may battle for years over their inheritance. For example, a sibling of the late guitarist Jimi Hendrix and a company affiliated with another sibling recently reached a tentative settlement in a suit involving the Hendrix estate. Their father, Al Hendrix, died in 2002 and left Jimi Hendrix’s estimated $80 million estate under the sole control of one of the siblings. Jimi Hendrix died without a will in 1970. For estates of all sizes, many of these sibling battles can be avoided, estate lawyers and financial advisers say. That can require more than simply writing a will. Leaving detailed instructions regarding jewelry and other family valuables, appointing a professional fiduciary as executor and communicating your wishes before death are a few ways to prevent your heirs from battling it out once you’re gone. Battling over a $15 watch Fights over Mom’s or Dad’s possessions—whether it is a prized watch, lucky five iron or wedding ring—is a common area of conflict in estate settlements, advisers say. Even if the object isn’t of great financial value, the emotional attachment can make it priceless in the eyes of heirs. Parents should anticipate that heirs may have sentimental attachments to certain objects, and they should plan ahead to smooth over conflicts and right any perceived wrongs. Michael Wernersback, regional estate-settlement manager for Wells Fargo Private Bank in Bay St. Louis, Miss., recalls a particularly ugly example of two sisters who fought over their late mother’s jewelry—specifically a $15 watch […]

Click here to view original web page at www.wsj.com

from DeWitt Law Firm, PLLC http://ift.tt/1OO1I2l

from DeWitt Law Firm, PLLC