When it comes to the estate planning process, deciding which family members will receive your assets and property after you pass away is a very important task. Although most people who are planning the distribution of their estates choose to give a sizable proportion of their assets to their minor or adult children, this process may not be as simple or as problem-free as you might think.

Every family has its own unique history and dynamics, and as a result, distributing equal shares of the estate to each child might not be the best solution. Due to other financial, familial, or emotional circumstances, there may be a particular child or children who you might think deserves more or less than their siblings.

If you think that dividing your estate equally among your children is not the best plan for your family, there are many different solutions you can employ to distribute your assets and property however you see fit. By seeking the advice of a qualified estate planning attorney, you can ensure that the tools and strategies you are using are the best way to make the right choice in what could be a difficult situation.

For example, your estate planning attorney can help you decide whether – and how – to broach the subject of the unequal distribution of assets with your children or other family members who will be impacted by the decision. Although each family’s situation is unique, many estate planning experts recommend convening a family meeting to discuss the plan and provide a general overview of the distribution of assets well in advance. This strategy helps minimize the element of surprise and avoid the prospect of tension and conflict in the family after you pass away.

Still, in other scenarios, it may be more beneficial to avoid this type of meeting altogether, particularly if there is already resentment and animosity among the family ranks. Once you have determined the best strategy, your estate planning attorney can handle the steps that will need to be taken to make your plan legally binding.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Determining which of your family members and loved ones will receive your property after you pass away is an important part of the estate planning process. But what you might not realize is that determining how and when the property is distributed can also be controlled with a high degree of precision.

Every family situation is unique, and in many families, circumstances exist that make it preferable for a particular property or asset to be distributed over a period of time, rather than all at once. In these situations, it may be beneficial to consider establishing a special kind of trust through which you can specify the precise terms according to which the property will be distributed.

A property control trust is a special trust that allows the time frame and amount of the property or asset distribution to be specified. Although these types of trusts can be useful tools in many situations, here are a few of the most common scenarios in which they are employed as part of an estate plan.

• College expenses. If you are setting aside property to be used to pay for a child or relative’s post-secondary schooling, it may make sense to arrange to have the assets distributed over a four-year period, or according to the projected time frame for completion of the beneficiary’s chosen course of study.
• Long-term care costs. If a family member or loved one is disabled or requires ongoing care, a property control trust can disburse assets at set intervals to cover these expenses.
• Maturity concerns or other personal issues. In many cases, there may be lingering doubts that a particular beneficiary is ready to manage a sizable inheritance responsibly. In these situations, it may be wise to place controls on access to the bulk of the assets until a beneficiary reaches a certain age, or even indefinitely.
• Unforeseen circumstances. If you suspect that changing family dynamics or other situations could change the way your assets should be distributed, you can elect to grant another person the “power of appointment” to let them make the distribution decision at a later date.

If you have questions about the best way to handle the distribution of your property and assets, schedule a consultation today for a personalized assessment of your situation.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Although the prospect of estate planning can be a little intimidating at first, most people feel far less anxious about their future after having an effective plan in place. After all, one of the primary goals of estate planning is helping to ensure that you can enjoy the security and peace of mind that comes with knowing that your family members and loved ones will be well provided for after you are gone.

Of course, if you’re just getting started with the estate planning process, you may not be sure where to start but never fear, a qualified estate planning attorney will be able to identify the procedures that apply to your situation and focus on solutions that make sense for you.

Just remember that the best estate plan is one that is personalized to your circumstances; when it comes to estate planning, there is no one-size-fits-all solution. Here are a few of the factors that will impact the shape that your estate plan will take.

• Children. Whether your children are minors or independent adults, providing for their care and inheritance will likely comprise a major part of the estate planning process.

• Wills. For people such as healthy younger adults with few assets, a will may be the only estate planning tool that is necessary for the time being. However, for most older adults and those with children, property, and assets, a will is likely to be one component of a larger strategy.

• Estate taxes. The old adage may hold that the only two inevitable outcomes in life are death and taxes, but a qualified estate planning attorney can significantly reduce your estate tax liability through savvy strategizing.

• Probate. If you pass away without a will, or if certain aspects of your estate plan are contested or called into question, your estate could be subject to probate, a legal review process that is often costly and slow-moving. A qualified estate planning attorney can help you choose investments and tools that can help your estate avoid probate.

• Property. Whether you choose to distribute your assets and property via your will, a trust, a tenancy agreement, or using some other manner, the distribution arrangement and mechanism will constitute an important part of the estate planning process.

A qualified estate planning attorney can help you determine what the components of your estate plan should be. Set up a consultation today to get a personalized assessment of your situation.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Estate planning is based on the idea that preparing in advance for the distribution of your assets and property after your demise is the best way to ensure peace of mind for your family when you are gone. Effective estate planning can not only maximize the value of your estate’s assets, but will also minimize the amount of stress and administrative work your family will have to go through in what is sure to be a difficult time.

But sometimes, despite our best intentions, things don’t work out as planned and the end of life comes before final estate planning preparations are in place.

Yet although it is certainly preferable to have a Will in place, it’s not the end of the world if a family member or loved one has passed away without a legal Will. In fact, this occurs far more frequently than you might think, and every jurisdiction has laws and procedures in place to guide the distribution of property and assets when a legal Will is not available.

The process called ‘intestate succession’ is triggered when a person dies without a will. Although every estate is different, in most cases, property is distributed first to the deceased person’s spouse and any children. If the deceased person is neither married nor has any children, the estate’s assets will be distributed to other family members. In the instance that no living relatives can be located, as a last resort, the property is usually claimed by the state.

If one of your family members or loved ones has passed away without a legal Will, you can speed the estate distribution process by seeking out the services of a qualified estate attorney. Your attorney will be able to act as your advocate in the intestate succession process and explain each procedure to you.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

One of the most important parts of the estate planning process is creating a plan to distribute your property and assets in a way that ensures your surviving family members will be well provided for when you are gone. This objective is particularly important when you have a child or children that have not yet reached the age of 18.

Many parents leave the assets directly to their children however, when those children have not reached the age of legal majority, their ability to own and have access to significant assets and property can be limited.

In addition, a custodian, or conservator will need to be designated to oversee the assets until your children reach adulthood.

Here are a few more considerations to keep in mind in the process of willing property or assets to children under the age of 18.

• Use a trust to transfer property. These types of accounts can simplify the process of transferring property to minor children, but they still require the oversight of a third-party trustee.
• Comply with all clauses of your divorce and custody decrees. If you have been through a divorce, it is important to ensure that the property you transfer to your minor child is in keeping with the terms set forth in your divorce and custody documents.

Do you have more questions about when and how to will property and assets to minor children? Call our office to schedule a free consultation today.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

When it comes to estate planning, your chief concern should be developing a comprehensive strategy that will protect your assets, maximize the value of your property, limit tax burden as much as possible, and ensure a sense of security and stability for your surviving family members after you are gone.

Trusts have emerged as an increasingly popular estate planning tool in recent years. These special instruments or accounts offer a simple way to transfer assets or property to surviving family members or loved ones while minimizing tax liability and decreasing the chance that your estate will be held up in probate proceedings for months or even years at a time.

There are several different types of trust that can be used to transfer property to your surviving loved ones. Depending on the size and complexity of your estate, you may want to establish a single trust or multiple trusts of different types. A qualified estate planning attorney can explain the different types of trusts and walk you through several different options.

One particular type of trust that has gained prominence as a savvy estate planning tool is known as a pot trust. Sometimes referred to as a family pot trust, this type of trust is usually used as a means of transferring property to minor children.

Here are a few considerations to help you decide if a pot trust should be part of your estate planning strategy.

• A pot trust allows you to set up a single trust for multiple beneficiaries.
• A pot trust grants the trustee a great deal of flexibility in making spending decisions.
• A pot trust is usually dissolved when the youngest minor in the trust reaches the age of majority.

Is a pot trust right for you? Talk to a qualified estate planning attorney to see if this type of arrangement will benefit your family.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Elder law is a fairly new field of law as compared to other segments of the legal profession.  With senior citizens more active and living longer than ever before, as well as becoming the fastest growing segment of the population, a more specialized area was needed in the legal community to deal with their specific needs.  Elder law combines several elements of the legal profession to assist senior citizens:

• Wills and trusts;
• Estate planning;
• Guardianship and power of attorney;
• Tax law;
• Health care planning;
• Social Security;
• Medicaid/Medicare planning; and
• Elder rights.

Attorneys specializing in the field of elder law are often consulted on a multitude of issues that involve the elderly, including:

• Housing
• Estate plans
• Estate administration
• Abuse, neglect, or exploitation of the older person
• Health and life insurance
• Long-term care
• Social security/Medicaid/Medicare benefits
• Employment
• Retirement

Elder law is unique within the legal field, as it is more defined by the clients it serves than the areas of practice of the attorney.  In essence, it is the only area in the legal profession that takes a ‘holistic’ approach to a client needs.

With today’s senior citizens more active and living longer than ever, they face a new set of legal concerns and challenges that have rarely been addressed by earlier generations.   Elder law seeks to address those concerns and challenges and preserve the rights of the elderly.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Having children brings a whole new urgency to estate planning because in the event of the death of both parents, a guardian will be needed to care for children under the age of 18.  There are two types of guardianships for children:

• Guardians of the estate:  Also referred to as a conservator, this person manages assets or money held by a child, normally inherited from the parents estate; and
• Guardians of the person:  Also known as a personal guardian, they care for the child and become a substitute parent.

One person may be designated to act as both the personal guardian as well as the conservator, or different people may be designated for each role.

Backup Plans

As any parent knows, having a backup plan is important.  Not only should you name a guardian for your children, but choose at least one or more guardians as ‘alternates’.  Should your primary guardian be unable to care for the children, or perhaps preceded you in death and the will was not updated, you certainly do not want this important decision left up to the courts or to others.

Informing the Guardian

It is best to discuss your decision with your appointed guardian prior to naming them in the will.  Raising children is a huge responsibility, as well as expensive, and you should be assured that the person is ready, willing and able to take on this challenge.

Is Two Better than One?

Many parents name a married couple as guardians for their children.  But remember, this couple may not always be together due to death or divorce.  For example, if you name your brother and sister-in-law as guardians, and your brother passes away, your sister-in-law will be raising the children.  Ask yourself, is that really what you wanted?

Choosing a guardian for your children is usually the most difficult task of estate planning for parents, and they often avoid facing it, but it’s a challenge that should be dealt with upon, or even before, the birth of your children.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Certainly you’ve heard the term executor when you have discussed writing a Will or preparing an estate plan.  Let’s examine the legal definition of an executor and their role in carrying out your wishes for your estate.

An executor, or executrix if it is a female, is an individual appointed to handle the estate of a deceased person.  The executor’s primary duty is carrying out the instructions and wishes of the deceased, in accordance with the terms of the Will.  If a person dies intestate, which means dying without a Will, the court will appoint an someone – a personal representative – to handle these duties instead.

An executor of a Will not only ensures the deceased’s wishes are carried out, but they also have the responsibility of collecting the assets of the deceased, paying off any remaining liabilities and distributing property to the beneficiaries named in the Will.  If the Will does not specify how the assets should be distributed, the executor is tasked with determining the beneficiary.

While many are familiar with an executor’s duties regarding property distribution, they don’t realize that the executor also files the appropriate paperwork with the probate court and notifies creditors of the passing. They are also responsible for filing the final income tax return of the deceased, as well as closing out the estate.

As you can see, it’s a large responsibility; but the executor doesn’t have to go it alone.  Executors are able to work with estate or probate lawyers or hire financial advisors using funds from the estate if needed.  It is also possible to name more than one person or institution as an executor, known as co-executors.  This is the choice of those who wish to ensure that at least one person has legal or financial expertise and one is close to the family.

Choosing an executor is an important aspect of estate planning and writing a will.  Working with a professional experienced in this area helps ease the burden and manage the process.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.

Medicare is a Federal health insurance program that falls under the Social Security Program.  Medicare provides benefits for people age 65 and older, as well as individuals under age 65 with certain disabilities or with kidney failure requiring dialysis or a transplant.  The benefits of the Medicare program consist of several parts that can make the program complex and difficult to understand.

Medicare Part A - Hospital Insurance

Most people don’t pay a premium for Part A because they, or a spouse, already paid for this benefit through payroll taxes while working. Part A is hospital insurance that covers inpatient care in skilled nursing facilities (nursing homes) and hospitals. Hospice and home health care are also covered by Part A.

Medicare Part B – Medical Insurance

Most people will need to pay a premium to be covered under Medicare Part B.  It is medical insurance to pay for medically necessary services and supplies provided by Medicare and covers outpatient care, doctor’s services, physical therapists and additional home health care.

Medicare Part C – Medicare Advantage Plan

Medicare Part C combines Part A and Part B and is provided by private insurance companies rather than the Federal Government.  It often offers lower costs and additional benefits that Part A and Part B offer separately.

Medicare Part D – Prescription Drug Coverage

Medicare Part D was signed into law in 2006 and is an optional insurance program that charges a monthly fee in exchange for prescription drug coverage.

Supplemental Coverage

Medigap is the termed often used to describe expenses that are not covered by Medicare.  Many private companies offer supplemental insurance programs to cover these expenses.  Participants in Medicare Part C normally do not require supplemental coverage, as Part C allows users to select medical coverage that addresses most needs.

Learning the basics of the Medicare program is just one part of building a comprehensive retirement plan, as this program may be more costly and provide less coverage than one anticipates.  It’s best to know this before retiring, so your plan can include provisions for payments and any additional coverage that may be needed during retirement, particularly when it comes to long term care.

Legacy APC, A Trusts & Estates Law Firm is a member of the American Academy of Estate Planning Attorneys.