In our last blog post, we talked about whether you should consider explaining your estate plan to your family. If you decide to have the conversation about your estate planning, the following is a list of topics you might consider discussing with them:
- Where can your children find the documents that will be needed after you pass away
- Information about who will be an advisor or trustee
- Information about who will be the beneficiary for your accounts
- Information regarding online information, such as usernames and passwords to your bank information
- Information about who to contact regarding life insurance
- Location of any money, checks, and other financial assets
When someone has children, they promise them that they will take care of them. When they really mean it, they will do everything in their power to ensure their children and future families will live with no worries. If you lay out all of your plans while you are still able to do so, your family will be able to carry out all of your wishes.
Planning your estate will not eliminate every problem, but when you make your needs and wants known to your family through legal documents, you can certainly reduce the amount of headaches and stress your family may experience.
If you need more information about estate planning or how you can communicate to your family about this, please do not hesitate to contact us.
How many times have you watched a movie or TV show that depicted family members gathered around a table, waiting with baited breath to hear from a dead loved one’s lawyer as he officially reads the contents of their loved one’s highly secretive Will?
In the real world, you need to consider whether it is a good idea to die without revealing having revealed to your family what your Will says.
You may feel that it will be best for your family if you do not reveal your estate plans because you want to avoid family arguments or disagreements. However, it may be best if you had a discussion with your family so you can give them an understanding of why you made the decisions you made.
Many people would prefer to keep these talks private or to a minimum, but you should really consider sharing as much information as possible with your family. This is especially true if one child will receive something that is different from the others.
You may have children who are financially responsible and others who are not good at managing money. For those who are financially responsible, you may decide to give them their money at once. For the others, you may decide to give the money in payments. If your children are adults who have children, you may also decide to leave money for your grandchildren.
If one of your children receives all of his or her money up front, the other children will wonder why their money was set up in a trust. When you have a talk about your plans before anything happens to you, everyone will be informed of why you made the decisions you made.
We understand that every family is different. Some families are uncomfortable with these discussions and some families would rather talk about it. If you want to have this talk with your family, but you are unsure of what you should do or how you should do it, contact us today.
After the death of a loved one, the door is wide open to a number of conversations and legal problems that will involve the estate of the deceased. Probate laws deal with how a person’s property and other belongings are dispersed among family members, friends, charities, etc. Because the probate laws are not the same in every state, it is important that you are aware of the laws in your state.
When someone has a Will, the probate procedures are usually more simple because the Will specifically states the deceased’s wishes. However, there will also be several additional factors that must be addressed after a person has passed away. One of those factors include debt and taxes.
Before distributing all of the estate’s assets to the beneficiaries of the Estate, the executor or administrator of the estate has an obligation to notify any potential creditors of the fact that the estate has been opened. When the creditors have been notified, then they are required to file a claim to seek to have the debt paid out of the estate. The process for handling claims from creditors can be very complicated, and the rules vary significantly depending on whether the probate administration is “independent” or “dependent.” In either case, the claims will be paid according to whether sufficient assets exist in the estate to pay them, and they will be paid according to the priority provided by Texas law. For instance, funeral expenses have a higher priority for payment than credit card debts.
Whether you are the creditor trying to be paid from an estate or you are the executor of the estate trying to handle the estate debts, you should seek experienced counsel in dealing with those issues. The attorneys at Ford + Bergner are prepared to assist you with creditor claims in probate estates.
If you need the advice of an attorney who can lead you in the right direction after a loved one has passed away, do not hesitate to contact us today.
While a Will is generally a must-have document when it comes to estate planning, a trust is also useful for a variety of reasons. Here are four types of trusts that you might want to consider.
Also called living trusts, this allows one to change instructions in the trust while still alive. After one passes away, the trustee acts based upon the information in the trust. Families get benefit from this trust because they generally do not have to go to probate court, so this trust offers privacy and can save time.
This type of trust could be used to protect beneficiaries from taxation as it can keep assets separate from one’s taxable estate. One with a life insurance policy might put the policy in the trust so that more money goes to loved ones instead of being taxed.
People can receive benefits by putting an estate or assets into a trust for a charity. This can give one income from a trust along with tax benefits for the gift that passes to a charity after death.
Special Needs Trusts
Despite what impressions you might have of trusts, those of any income level could have reason to create one. This is perhaps best highlighted by special needs trusts as people use this trust to make sure a family member with disabilities has funds. A family needs to establish this kind of trust so that a beneficiary has financial support but is still eligible for government assistance.
There might be many options for you based on your wishes and the type of trust you are interested in, so contact us as we will work with you to ensure you and your loved ones get the most value possible from trusts and estate planning.
Source: What Is a Trust, and Why Should I Have One?