The post Why young adults should think about estate planning first appeared on Richard E. Fowlks, Attorney at Law.
]]>It’s important to understand that estate planning can also involve directives carried out before someone passes away. A young adult with significant assets and limited knowledge or experience may want to hand “power of attorney” over to someone else. A person with power of attorney gains the authority to handle financial transactions for the grantor. Such authority covers accessing bank accounts and more. Therefore, it becomes necessary to select an honest person if deciding to sign power of attorney documents.
A young person may pass away due to a tragic accident or an unexpected medical emergency. What if he or she does not die, but becomes entirely incapacitated? With a health care proxy, one can afford a trusted person with the ability to make all medical decisions.
A living will is another document some consider. A living will does not hand authority to anyone. Instead, the incapacitated person expresses his or her wishes in the document. For example, telling doctors “do not resuscitate” after a heart attack may be found in a living will.
Estate planning might focus on writing a will, but there are other steps someone can take to avoid probate. Naming someone a beneficiary to an account would allow IRAs, stocks, bonds and more to pass without probate.
Young people might not be aware estate planning involves so much. If you are confused, meeting with an attorney could help clarify the many aspects of the process.
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]]>The post Probate required for most estates to validate will and assets first appeared on Richard E. Fowlks, Attorney at Law.
]]>During probate, the final bills of the deceased are paid, the value of the assets is assessed and final taxes are paid. The will must be filed properly, along with the death certificate of the estate holder, with the courts. Then the remainder of the estate is distributed according to the will. Estates without a will go through probate, where taxes and bills are paid. The estate is then split up according to the laws of the state.
A court hearing is often necessary during probate to authenticate the will. A probate judge oversees the proceedings. Witnesses may be called upon to authenticate the will. If everything is in order, the judge will validate the will. In Oregon, the only way to avoid probate is for estate holders to make a living trust. A trust document and a successor trustee are required for a living trust to be valid. Without a living trust, an estate in Oregon must enter probate for a minimum of four months.
Estate holders often work their entire lives to leave their families in a better position upon their death. Decedents should be able to determine where their estates will go before they pass. Creating a living trust or a will is often the best way for an estate holder to take care of his or her family and loved ones after passing away. An estate planning attorney might be able to help by looking at an individual’s assets and helping him or her leave them to his or her loved ones.
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]]>The post Retirement accounts might go through probate first appeared on Richard E. Fowlks, Attorney at Law.
]]>In almost all states, your spouse is required to be the beneficiary to a 401(k) unless he or she gives you permission to transfer the account to someone else. If you move to a community property state, your spouse will likely receive half of any contributions that you make to an account during your working years.
Generally speaking, a retirement account is held outside of your estate, which means that it isn’t subject to probate. It also means that creditors can’t claim that money in an effort to recoup any money that they are owed. However, if you make your estate the beneficiary of such an account, you lose that protection.
Minors are not allowed to inherit assets on their own. Therefore, if you plan to transfer your IRA or 401(k) to a minor child or grandchild, make sure to name an adult who will manage it on his or her behalf.
Ideally, you will appoint multiple beneficiaries to assets that can pass outside of your estate. Bypassing the probate process may make it faster and easier to transfer property to a person or organization in a timely manner. It is, generally, a good idea to review beneficiary designations after they are made. This can help to ensure that the designation is still appropriate years or decades after it was first made.
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]]>The post Understanding the key differences between wills and trusts first appeared on Richard E. Fowlks, Attorney at Law.
]]>The main difference between wills and trusts in estate planning is that the trust completely bypasses probate court. A will, on the other hand, has to be validated upon death by the court. If anything is missing such as a signature or information, it holds up the process. Wills are still an important estate planning tool, but assets that can be transferred or renamed are often put into a trust instead.
It may sound like a trust is the best approach to take, but it also has its own drawbacks. Changes cannot be made to a trust after the individual passes away. If more assets were accumulated and they were not placed in the trust, those additional assets go through probate court. Additionally, there are several types of trusts. Each has a certain tax-saving purpose for a specific type of individual and beneficiary.
The best strategy for planning an estate depends on the current situation of the individual and the number of assets they plan to disperse. This is probably why so many people believe that estate planning is mainly for the wealthy. In reality, planning an estate is for everyone, especially when there are going to be surviving family members such as minor children. For more guidance, individuals are encouraged to speak with legal professional. A lawyer may be able to walk the individual through various tax-saving options.
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]]>The post When can your estate plan be harmful instead of helpful? first appeared on Richard E. Fowlks, Attorney at Law.
]]>Generally, estate planning involves utilizing tools like wills and trusts, guardianships, powers of attorney and health care directives. While your estate plan is unique to you, there are common mistakes you and your attorney should look out for to avoid complications later on.
One of the biggest mistakes you can make is not understanding your plan. While an estate planning attorney can help make sure the documents comply with laws, it is your affairs affected. Before signing, you need to make sure you understand how the plan works for you and your beneficiaries and how to maintain or implement the plan. If you have any questions about the things laid out in the documents, you should get clarification before signing.
When life changes happen, like a divorce or death in the family, you need to look over your estate plan again. Not updating beneficiary designation documents means things could go to either someone you do not want to have it anymore or someone who is no longer alive to receive it. It can also mean people may not receive assets you intended for them to inherit because of outdated forms.
Other mistakes to look out for include:
Any of these mistakes can be costly in the long run and cause serious difficulties for your family when someone implements the items laid out in these documents. While estate planning can be made easier with the help of a knowledgeable attorney, you need to know what to look out for. Avoiding some mistakes means you need to be diligent in updating and reviewing your plan as needed.
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]]>The post New decade: Create or review your estate plan right away first appeared on Richard E. Fowlks, Attorney at Law.
]]>One of the most important things to do is to get your plan legally established. This means taking the time to establish trusts if you are using them and writing out the will, but your estate plan goes far beyond this. You also need to make your plans for end-of-life medical care and your final arrangements.
You also have to think about the tax implications of what decisions you make. Each year, you have a specific limit that you can give to each individual. This provides you with a way to pay down your estate to an amount that won’t require your estate to pay taxes.
As you consider your estate plan, think about how you can care for your loved ones in a meaningful manner. For example, a loved one who relies on a needs-based services might not be able to accept an inheritance of cash. Instead, you might be able to provide for them with a special needs trust that is specifically marked as a supplemental support account. Since they don’t control the account, the assets in it don’t count against their asset limit for those services.
Ultimately, your estate plan must reflect your plan for yourself and your assets. Once you have this set for 2020, you can leave it alone until you review it next year to see if it is still reflective of what you want. Of course, if you have any major life changes, you will need to review the plan before next year.
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]]>The post Probate serves a variety of purposes first appeared on Richard E. Fowlks, Attorney at Law.
]]>For some people who are going through the probate process, handling debts is necessary. The creditors of the decedent can make a claim against the estate. These are taken care of in a specific order. If assets remain after the debts are paid, the remaining portion of the estate is passed out in accordance with the estate plan. If there isn’t enough to cover the debts, the heirs don’t have to pay the difference. Instead, the creditors will absorb those costs.
Another aspect of probate involves passing along the titles to assets to the appropriate heir. This is only possible if they were only titled in the name of the person who passed away. This enables the individuals who receive these assets to have free use of them.
The probate process can sometimes get rather complex, especially if the estate is large. Having some assistance with probate and all it entails might help you ensure that you are handling all matters necessary so that you don’t waste any time or money during the process.
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]]>The post Probate entails various points, take them one at a time first appeared on Richard E. Fowlks, Attorney at Law.
]]>We know that many people have some questions about what they are going to have to do. This is common, so finding out how the laws apply to your situation is imperative. You can’t make errors when you are handling these matters because serious repercussions can come if you don’t handle things correctly. We are here to help you with these legal matters.
There are specific steps that you have to handle as your loved one’s estate goes through the probate process. Taking these one step at a time is beneficial because you aren’t likely going to be overwhelmed by everything. This also gives you the opportunity to practice some self-care since you are going to be emotionally raw during this time.
Some people discuss their estate plan with their loved ones. If your family member did this, you have time to prepare for the duties that you will have to undertake. Having a plan in place when the time comes to use it can reduce your stress. We are here to help you get this together when you need it.
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]]>The post Avoiding probate might be possible with planning first appeared on Richard E. Fowlks, Attorney at Law.
]]>There are several things that the probate process does. It is a court process that works to determine what the wishes of the decedent were. The court has to authenticate the will and determine who is going to serve as the executor of the estate. Heirs are identified during the process, as are the assets that are part of the estate.
During this process, all taxes and debts of the estate must be handled in accordance with the law. Once this is done, the remaining assets can be distributed to the appropriate parties. The entire process can take at least six months to one year. This can be a costly process because of the court costs and the attorney fees that you will have during it. For this reason, avoiding probate when possible is usually a good idea.
People who are creating an estate plan have several options for avoiding probate. Trusts are one of these, as are setting up beneficiary designations like the payable on death option that you have when you open a bank account or an investment account.
If you are discussing an estate plan with a loved one, find out what steps they’ve taken to avoid probate. If you are the plan creator, find out what options you have for doing this. You might be able to take a lot of stress off your loved ones.
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]]>The post Guardianships are important components in some estate plans first appeared on Richard E. Fowlks, Attorney at Law.
]]>When you name a guardian for your children, you must consider each child individually. Some parents might find it necessary to name one guardian for a child but have a different one for another child. Think about whether the guardian will be able to handle the situation of taking on multiple children. If you don’t have someone who can care for all your children, it might necessary to split the caregiving responsibilities.
Some parents try to name more than one person. This enables you to have a backup plan just in case the primary person is unable to handle the duties.
Make sure that you discuss the designation with the person. This gives them a chance to prepare for the possibility of having a sudden family. This also gives you the opportunity to let them know what provisions, such as assets placed in a trust, that you are designating to help them with the care of your children.
Setting the guardianship designation is only one component of your estate plan. You need to make sure that you have a comprehensive plan in place so that all your wishes are known and can be upheld. In many cases, an estate plan will include end-of-life care information like a living will, powers of attorney designations, a will and trusts.
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