All I Want For Christmas Is Your Estate Plan

Posted by on Dec 12, 2017 in Legal News | 0 comments

The holiday season is fast approaching, and deciding what gifts to get the loved ones in your life can be a fun (if not a little stressful!) tradition. If you’re looking to get a unique gift that is long-lasting, beneficial, and durable for your family, think outside the box and consider setting up an estate plan.

Estate Planning

Estate planning is the process by which you decide where your assets will go after your death, what decisions will be made (and by whom) if you are incapacitated, where your debts will be assigned, and many more important decisions. Dismantling and distributing someone’s estate is a process, but it is far easier and cheaper to carry out when you have an estate plan than it is to go to probate court.

Think of probate court as the Abominable Snow Monster. You want to avoid it at all costs because, unlike Bumble in Rudolph the Red Nosed Reindeer, probate court never turns out to be nice. Instead, probate is a lengthy, time-consuming legal affair that distributes your assets and debts with no regard to what is best for your family.

But, don’t worry! In this article, we’ll tell you how to stay out of probate court by detailing what generally goes into an estate plan. (Remember, these are just a few of the many legal tools you can have in your estate plan).

Key Documents in Your Estate Plan

  • Living Will

 

A living will, as you may or may not know, is also called an “advance healthcare directive.” The living will allows you to determine the healthcare decisions that will be made in advance if you are too incapacitated to give directions to the hospital yourself.

 

A living will is useful for anyone over 18 to have because, once you are no longer a minor, your parents cannot give the hospital directives in your stead. It’s important to have a backup plan.

 

  • Living Trust

A living trust details how you want your assets, property, and funds to be distributed after you die. It also will describe who will take care of your minor children (if you have them), as well as any specific instructions you have regarding your assets. The difference between this and your “last will and testament” is that a living trust is not subject to probate.

  • Durable Power of Attorney

A durable POA is a trusted individual that you name in your estate plan. He or she will make financial and healthcare decisions for you in the event that you are incapacitated. By naming the POA yourself, using your own judgment (as opposed to that of a probate court, who does not know your family dynamics), you can rest assured that you have someone who will handle your affairs responsibly.

  • Last Will

Your last will and testament details how you want your assets divided upon your death. This is different from a living trust because this does have to go through probate. Therefore, the last will and testament is mentioned in this list because it can be viewed as an intermediate document until your living will and living trust are set up.

Again, these are just some of the many resources you have that will allow you to avoid the law’s Abominable Snow Monster. You can also set up forms detailing who your beneficiaries are, where your debts will transfer, and other important decisions, all of which wrap up your affairs properly. This Christmas season, give your family the gift of security and peace of mind by scheduling a consult to set up your estate plan.

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Don’t Let Your Assets Be Frozen This Winter

Posted by on Dec 4, 2017 in asset protection, estate planning |

Winter weather is fast approaching (if not here already), and with it comes snow, sleet, and ice. But not in the lovely, sunny South Florida! While we’re lucky enough to not be iced over, your assets can still be frozen. Follow these tips to avoid having your assets frozen this winter.

How Assets Freeze

First things first: what are frozen assets?

Frozen assets are owned assets that cannot be bought or sold in any way because of a debt that still requires repayment. Until the debts are paid or satisfied, the asset’s owner cannot do anything with the asset.

To understand how to circumvent frozen assets, it’s important to know how the process occurs. One way your assets can be frozen is in probate court. Probate, as those keeping up with these articles know, is the court that you want to avoid at all costs. If you die without an estate plan (which we’ll get to in a moment), your assets will end up in probate court to be distributed.

The probate court also has to verify your will, if you have one. This process can take a long time, even more so if someone decides to contest your will. During the verification process, your assets are frozen. Even for time periods of up to several years, they can be frozen.

If that wasn’t bad enough, once the court verifies your will, they will then distribute your debts along with the assets. This has the potential to cause your family hardship if they not only have to go through probate, but shoulder your debts at the end of the ordeal.

Staying Out of the Cold

To avoid sending your assets to the Age of Winter, an estate plan is key. Estate planning is the process by which you arrange for the management and distribution of your estate after your death or if you are incapacitated. Through estate planning, you can minimize taxes and ensure that your family will stay out of probate court and your assets left unfrozen.

This important step ensures that a person’s wishes are upheld and their decisions, if they are unable to make them, are left to someone who they trust. It may be tempting to set aside the thought of estate planning for now—after all, not many people see their death as imminent—but that is not a wise choice. No matter how large or small, you do have an estate, and setting up arrangements for worst-case-scenarios is vital to your family’s financial health.

Don’t let your assets be frozen this winter. Set up an estate planning consultation today.

 

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