Wills, Trusts, & Estates Planning
Rarely do individuals want to think about what will happen upon their death or disability. By nature, it is unpleasant and morbid. Providing for yourself and your loved ones in the event of death or disability is one of the main motivations for establishing or updating an estate plan. Some other motivations for an estate plan include minimizing the consequences of trauma and loss that accompanies a death or disability. A proper estate plan will enhance your personal security and peace of mind for you and your family. You will dictate what you want to have happen with your life and your wealth. We are here to help you achieve those goals. Our services include the following:
- Wills
- Revocable Trusts
- Irrevocable Trusts
- Living Wills
- Gift Giving
- Health Care Documents
- Power of Attorney
- Planning for Incapacity
- Planning for Special Needs
- Charitable Planning
- Trusts Administration
- Estates Administration
- Other Transfers of Wealth
- Gift Tax Return
- Estate Tax Return
- Probate
Frequently Asked Questions
What is Estate Planning?
Estate planning is formulating specific plans to conserve, accumulate and distribute your assets upon your death or disability. It is dictating what you want to have happen. Estate planning is creating a specific plan that works for the whole family.
Why should you be concerned about estate planning?
Two main reasons why you should be concerned about estate planning are to protect your heirs and to protect your assets.
Is there a difference between estate planning for a woman and a man?
While the estate planning vehicles to implement an estate plan is the same for women and men, women, there are unique considerations for women: Women, on average, live five to seven years longer than men. Women are paid less in wages. Women on average work fewer years than men resulting in lower employer-provided benefits and Social Security benefits. Women are typically left with responsibility of caring for elderly parents. In fact, women outnumber men three to one in caring for elderly parents. Women are typically left with the responsibility of caring for children. Women's unique considerations require thoughtful estate planning though the lens of women's challenging circumstances.
What are some of the basic tools used in estate planning?
The most common estate planning tool is the Will. The other common tools include: the Trust, the Power of Attorney for Property, and the Power of Attorney for Health Care.
Is estate planning only for the wealthy individuals?
No, estate planning is for everyone, wealthy or not - the size of the estate is typically secondary for most individuals.
- If your estate is small, you may wish to focus on who will receive your assets when you die or who will manage your estate.
- If your estate is large, you may wish to focus on preserving your assets for your loved ones and of minimizing or postponing the amount of transfer taxes which might be payable after your death.
Is estate planning only for older individuals?
No, estate planning is for everyone, young or old.
What is my estate?
Your estate is the total value of all assets you own. This includes assets held solely in your name, as well as assets owned jointly with others, such as:
- Bank accounts
- Real estate
- Stocks and bonds
- Life insurance policies
- Retirement accounts
- Annuities
- Any payments owed to you
- Personal property such as automobiles, furniture, jewelry, and artwork
What happens if I do not have a Will, Trust or other appropriate plans?
If you die without a Will, Trust or other appropriate plans, the state law dictates who will receive all or part of your assets, who will act as your executor and who may be appointed as guardian of your minor children. Your wishes are not taken into account.
What happens if I am gay or cohabitating and I do not have a Will, Trust or other appropriate plans?
If you are gay or cohabitating and you die without a Will, Trust or other appropriate plans, your assets will not be distributed to your partner. In fact, the state law dictates who will receive all or part of your assets, who will act as your executor and who may be appointed as guardian your minor children. Your wishes are not taken into account regardless of whether you agree with what it says.
What if my assets are joint ownership, do I need estate planning?
Joint ownership may be a simple way to avoid probate. Joint ownership should be considered as part of, not a substitute for, a complete estate plan. Further, joint ownership is not a solution to the problems associated with incapacity.
What is a Living Will?
A Living Will is a declaration directed to healthcare providers to withhold or remove medical treatments. (To designate a person of your choice who will be empowered to make medical decisions for you if you are incapacitated, see Power of Attorney for Health Care below).
What is a Living Trust?
A Living Trust, also known as an "Inter Vivos Trust," is created during your lifetime. A Living Trust may be revocable or irrevocable.
A Living Trust is simply a written agreement providing for the disposition and management of your property during your lifetime and upon your death. A Living Trust provides for disposition of your property at your death in the same manner as through a will.
What other trusts are there?
There are two other basic types of trusts' testamentary trusts and irrevocable trusts.
What are testamentary trusts?
Testamentary trusts are created after you die. It can be established by the terms of a Will, a Living Trust, or an Irrevocable Life Insurance Trust. Such trusts do not address management of your assets during your lifetime.
What are irrevocable trusts?
Irrevocable trusts cannot be amended or revoked once they have been signed. Irrevocable trusts stand as separate taxpaying entity. Some well-known examples include Irrevocable Life Insurance Trusts, Irrevocable Trusts for Children, and Charitable Trusts. Another common use of an Irrevocable Trust is to provide for asset protection of the trust creator and the trust creator's loved ones.
What is Probate?
Probate is a court-supervised process for individuals who are unable to manage their own affairs as a result of death or disability. Probate is an expensive, public and time-consuming process
What is disability-related probate?
In a disability-related probate, the court appoints a personal representative (also known as "agent", "conservator" or "surrogate"), to manage your finances and your health care if you cannot competently manage them for yourself.
What is death-related probate?
In a death-related probate, the court may validate the deceased individual's will, appoint personal representative, known as "executor", pay debts and expenses and distribute to heirs and beneficiaries based on the deceased wishes as expressed by the terms of his or her will. If the individual dies without a will, the court follows the laws of descent and distribution to determine the heirs of the estate. The court will follow the state law as to who to appoint as a personal representative or an executor.
Do I have to pay estate taxes?
It depends. At death, an estate tax will be imposed on fair market value of your assets. A single person is not subject to estate tax unless his or her net worth exceeds the applicable Federal exclusion amount. The applicable exclusion amount is the amount of assets which can be passed free of Federal estate tax. Estate tax may still be owed to the state. The year of the person's death determines the Federal estate tax rate.
| Year of Death | Applicable Exclusion Amount | Lowest Tax Rate | Highest Tax Rate |
|---|---|---|---|
| 2009 | $3,500,000 | 45% | 45% |
| 2010 | No estate tax | n/a | n/a |
| 2011 | $1,000,000 | 41% | 55% |
What is the effect of my divorce on my estate plan?
You should consult with an attorney when your marital status changes. You do not want your ex-spouse to be getting your assets. The attorney needs to review each of your estate planning documents and all documents titling all assets to ensure those named as executor for asset management duties and those named as heirs to receive assets still reflect your wishes
What is the effect of remarriage on my estate plan?
You should consult with an attorney when you remarried. You may wish to provide for your new spouse in the estate plan while preserving assets for your children.
What if I have an estate plan, do I need to do anything else?
You should review your estate plan every five years or when there is a major change in your life such as a birth or death of someone you named as a guardian or executor, change in marital status or partner status or a large increase or decrease in your assets.
What is a Power of Attorney for Property?
A Power of Attorney is a written document by which one person, known as Principal, appoints another person, known as "Agent" or "Attorney in Fact", to act on his or her behalf. A Power of Attorney for Property permits the Agent to manage the property for you in the event you become disabled and unable to manage your own property.
What is a Power of Attorney for Health Care?
A Power of Attorney is a written document by which one person, known as Principal, appoints, another person, known as "Agent" or "Attorney in Fact", to act on his or her behalf. A Power of Attorney for Health Care permits the Agent to make health care decisions for you, in the event you become disabled and unable to make your own health care decisions.
What is advanced estate planning?
For most people, the basic estate planning techniques will be sufficient. However, for those people with more complex needs, you may require additional techniques to shelter assets from transfer taxation. Our law firm will work with your unique needs to select appropriate estate planning vehicles such as Qualified Personal Residence Trusts, Irrevocable Life Insurance Trusts, Grantor Retained Interest Trusts, Installment Sales, Buy-sell Agreements, Family Partnerships, and Charitable Split-interest Trusts.
What are the fees?
We believe that an attorney-client relationship is enhanced when there is mutual understanding about the nature of the estate planning fees. We charge for estate planning services through a combination of hourly fees and fixed fees. We charge a fixed fee for preparation of most estate planning documents, such as will, trusts and powers of attorney. The fixed fee is dependent on the complexity of the documents. Although the fixed fee includes reasonable revisions, if we have to change the estate planning documents after the documents are prepared, we charge an hourly fee for such changes. Hourly fees are also charged for consultations (only if you retain our services), review of documentations and prior estate planning documents, deeds and other transfer documents.
