Let’s face it: the reality is that it is uncomfortable but necessary to have plans in place in the event of your death or if you become sick or incapacitated to a point where you are no longer able to make decisions. I understand this, and take it upon myself to assist you with the highest level of compassion and competency.
Without the appropriate Wills, Trusts, and Estate Planning, your loved ones must endure a long process where strangers and the state decide the fate of your estate. No one wants to work their whole lives for assets that may not be disbursed according to your wishes.
My Estate Planning expertise includes:
The type of Will that is best for you depends on a variety of considerations discussed below. The Law Office is prepared to discuss with you and your family the type of Will that best fulfills the needs of you and your family and is appropriate for your unique situation.
For those with modest estates and no minor children, a simple Will is likely appropriate. Candidates for simple Wills have estates significantly below the applicable exclusion amount (i.e., the value at which your estate is subject to federal estate tax, currently $2.0 million in 2008).
For those with minor children and /or with elderly parents or other relatives who may not be competent to manage finances (such as minor nieces and nephews) are good candidates for Wills with guardianship provisions and contingent trusts for children. The main reason for using this type of Will is to avoid the cumbersome and expensive legal guardianship requirements that exist when a minor beneficiary inherits property. Because a court-appointed guardian is required for any property passing to a minor, the complexities and cost of such property guardianship should be avoided through proper drafting in the Will.
Candidates for this type of Will include married couples whose estates will be subject to federal estate tax. The marital deduction does not actually eliminate any estate tax. It is simply a deferral device where the surviving spouse may inherit the deceased spouse's property without having to pay estate taxes until the surviving spouse dies. Upon the surviving spouse's death, the entire combined estate will be subject to federal estate tax.
A trust is a legal entity that holds title to property for the benefit of a person or entity. The person or entity responsible for managing the trust's assets is called the Trustee. Although the Trustee holds legal title to the the property in the trust, the Trustee can only manage those assets for the benefit of the person(s) the Trust is set up to benefit (i.e., the beneficiaries). The trust's beneficiaries have the right (i.e., equitable title) to have the trust's assets used for their benefit as directed in the trust agreement. A trust can be drafted to meet the legal requirements and conditions that you desire. For example, a trust can be drafted to ensure that upon the death of both parents, individual trusts would be established for each child according to the trust's terms as set forth by the parents. When used correctly, a trust can be a valuable and useful tool to manage assets and preserve wealth.
A revocable living trust is a trust created during the grantor's (i.e., the person who creates the trust) lifetime and which becomes effective upon execution (rather than at the time of death as with a Will). The grantor retains the power to revoke the trust and reaquire its assets at any time prior to the grantor's death or incapacity. Because the grantor is treated as the owner of the trust assets for tax purposes, the entire trust proceeds are includible in the grantor's estate. Upon the grantor's death, the living trust may continue, or the assets may be distributed directly to the trust beneficiaries without the need to pass through probate.
Irrevocable Life Insurance Trust
Irrevocable trusts are normally used to completely remove assets from one's estate and thereby save significant estate taxes. Because an irrevocable trust cannot be amended by the grantor, the appointment of an independent trust advisor should be considered. The independent trust advisor could make limited amendments and change trustees.
Estate Planning
A power of attorney is a written legal instrument which authorizes one person to act as another's agent or attorney. A power of attorney gives a person's agent or attorney authority to make financial and other legal decisions for the principal (i.e., the person creating the power of attorney). The principal can give his attorney limited or broad authority to make legal decisions for him, depending on the principal's needs and situation.
Living Will
A living will is a written legal document that allows you to designate a representative to make medical decisions for you should you become incapacitated due to accident or illness. For example, you can designate whether you would want to be kept on life support and who will make medical decisions for you if you are unable to do so.
Probate is the court procedure used for prove the validity or invalidity of a Will. The decedent's creditors (if any) are permitted to file claims against the estate and to recover payments based on those claims. Once the administration fees, taxes and creditor's claims are paid, the rest of the estate may be distributed to the beneficiaries named in the Will.
The executor is the person named by the decedent in the Will to administer the decedent's estate. The executor's main duties include: