Well, the Super Bowl is upon us. In just a few short days, the Rams and the Bengals will battle it out to see who the top team in the NFL is. Everyone has placed their bets (whether literal or figurative), but the Super Bowl leads us to think about another question: how are we playing the game of life?

As with any athletic endeavor, it helps to be prepared. In life, preparation helps as well. Estate planning is a great legal tool for anyone trying to be as prepared as they can for all of life’s eventualities. If you have a solid estate plan, then you know that you are playing the game of life pretty well.

Estate Planning as a Preventative Measure

Essentially, estate planning helps you prepare in the even of your death. Estate planning manages an individual’s asset base after they die or are incapacitated. Estate plans often include bequests of assets to the deceased’s heirs, as well as the settlement of tax laws on the estate. The majority of estate plans are set up with an attorney who is well-versed in the intricacies of estate law where the individual lives. 

You can’t plan for death after you’re dead, so you have to set up your estate plan before the worst-case scenario occurs. In the game of life, minimizing the impact of major negative events is important for both you and your family. Here are some of those events listed below: 

Death

When you’re making your estate plan, gather up your important documents, along with your contact information. This will help you execute your last will and testament, a document that provides instruction for where you want your assets to go after you die. An attorney should help you prepare the will, as there are a lot of legal requirements and technicalities to which the document must conform, lest it be invalidated. 

Other documents that can prepare your assets for transfer include a living trust, which is a great way to avoid probate court. You should also arrange for your digital assets to be secured, should you own any, and you can even plan your final arrangements when you have an estate plan. All of these preparations help your assets be divided in the way you best see fit. 

Divorce 

For this negative event (or positive, depending on the situation), the work that you do in your estate plan can include removing your ex-spouse as your beneficiary and striking their name through all your legal documents. Though no one can really predict a divorce, you can act quickly to make sure that your former spouse isn’t entitled to anything in your estate plan. Often, meetings with divorce attorneys and meetings with estate attorneys go hand-in-hand.

Illness or Injury 

There are two important preparative documents to know before you suffer an illness or injury that leaves you incapacitated: power of attorney and an advance directive. This list is far from comprehensive, but these two are some of the most important. 

The power of attorney is a trusted individual that you appoint to manage your healthcare and financial affairs if you become incapacitated. Usually, the power of attorney is split between healthcare and finance—one person handles one task, while another handles the other. 

The living will, also known as an advance directive, is important for anyone with specific end-of-life wishes for their healthcare. The directive is a specific set of instructions that you lay out for doctors and nurses who are taking care of you. A common feature of this directive has to do with refusing resuscitation or something similar. Often, the contents of the directive are based in someone’s specific religious or personal views. 

Will Contests 

There is no surefire way to prevent someone from contesting a will, as you can’t control what other people do. However, you can keep that contest from being successful if your will is executed properly with the help of an attorney. A letter of intent can also be persuasive to a court when determining your will’s meaning. If squabbling over your will is something you foresee in your future, talk to a lawyer to safeguard the document as best you can.

These major events are all negative, but, with the right estate plan, they can be managed properly. Death, divorce, incapacitation, and will contests are all preventable with the help of a good estate planning attorney. 

Welcome to the world of probate and trust administration. As you might have guessed, there are a lot of technicalities and complexities when it comes to this field. It’s best to contact a lawyer when you’re looking into your own estate or trust, but this article can serve as a basic guide to understanding what you’re working with. Here are ten common questions about this field and their answers. 

1. What is trust administration?

A closeup shot of a person holding a gavel on the table

It’s best to start with the basics. Essentially, the living trust is often considered a vehicle that gets you around probate court. Trust administration refers to the way in which a trustee manages the trust, according to the legal document’s terms. After the settlor (also known as donor) dies, the trustee must manage the trust for the beneficiary’s benefit. Trust administration is the process by which he or she does so.

2. Can you avoid probate court with a will? 

A will, by itself, isn’t effective for avoiding probate court. Wills have to go through court when there are assets, as this legal process implements the will’s provisions. If the deceased had a personal representative to act as executor of the estate, this executor will be in charge of administration. 

3. What do personal representatives do? 

Personal representatives collect the deceased’s assets. They prepare an inventory of the property, clear up debts, and pay taxes owed. You might have to sell some of the deceased’s assets in order to pay the debts. The executor also distributes assets and helps close the estate. 

4. How long does probate last? 

If the estate does end up in probate, it depends. The amount of debts and assets in the estate will affect is complexity. Also, it depends on how easy it is to contact beneficiaries or whether there are any disputes. If it is a smooth-running, routine probate, the process should last between nine and twelve months, though there’s no guarantee it will be that short. You can see why people try to avoid probate. 

5. Does trust administration take a while? 

Trust administration can be drawn out as well over a period of months or years, as it all depends on how complicated the estate is. There are five basic steps to trust administration, including inventorying assets, determining the estate tax, dividing the trust assets, filing federal and state taxes, and making distributions to beneficiaries.

6. Is a living trust cheaper? 

Living trust can reduce your costs significantly, when you compare it to the fees of probate. However, there is a lot of work to be done, even when administering a simple living trust. Don’t count out the service of an attorney, who will charge for their work. However, the fees associated with trust administration are often lower than the ones for probate, and there is less work involved because the state bureaucracy and courts don’t come into play.

7. What should I do about Social Security? 

The Social Security administration will keep sending out benefit checks, unless they are notified of the death of an individual. The executor has to contact the local Social Security office and let them know about the death. If a check is sent after the deceased passes away, the executor must send the check back, along with a notice telling them about the death. This is important, as the executor can be held liable for fraud if they accept checks after the rightful recipient dies.

8. Are you sure I need a lawyer? 

Yes, we’re sure. There are a lot of pitfalls, even in trust administration. There are legal requirements and technicalities that can easily invalidate or even lead to liability when you are executing a trust. If mistakes are made, you might be liable to beneficiaries for these screw-ups. Qualified attorneys can help you work through postmortem problems that might arise. 

9. What are the duties of a trustee? 

The duties include identifying and protecting trust assets, being scrupulously honest, figuring out what you’re supposed to do, and communicating regularly with the trust’s beneficiaries. You may have to manage the trusts long-term until the time comes to end the trust (something that will be determined by the instrument itself).

10. How do I get started? 

If you’ve been appointed as a trustee and are totally lost, don’t worry. Contact an attorney, as they will guide you through the process, from beginning to end.

Probate and trust administration can be tricky, so it’s best to seek help if you find yourself confused. If you have a good knowledge base and a good lawyer, things should go smoothly for your estate. Visit our website to learn more. 

Cryptocurrency is the big thing in financial planning. Some people love it, some people hate it, and others are undecided. When you’re estate planning, if you have cryptocurrency, it is important to be very detailed about the crypto, no matter whether it is Bitcoin or something else. You should include information about where the currency is held and what it is. You should also include language in your documents that allows your trustee, if there is one, to manage the crypto without any liability.

In this article, we’ll talk about some of the basics when it comes to cryptocurrency. You can estate plan with this volatile digital currency, and the results can be quite beneficial for you and your family.

What is Cryptocurrency?

If you’ve seen any headlines in the past year, you’ve probably seen crypto mentioned time and again. Cryptocurrency is a collection of decentralized binary data. The binary data acts as a digital exchange. Basically, you buy Bitcoin, Ripple, or Litcoin with regular currency, and you can use it as a form of payment. The value of the cryptocurrency is volatile, plummeting and rising frequently. The main allure of crypto is that it is decentralized. It can be circulated without the need for a bank or government to act as a central monetary authority.

What Loved Ones Need to Know 

Basically, if no one knows you have it, then you will lose it, once you die. You need to treat crypto like any other asset when you’re making your estate plan—at least, as far as making sure it is included goes. Loved ones need to know that your crypto stash exists. They need to know where the crypto is, how to access it, and what to do with them. Investors need to choose and execute an estate plan that is based on their circumstances and holdings. If you have a more complex estate, you might need to seek the help of a trustee or custodian. 

Tips for a Secure Transfer

While the way cryptocurrency works into your estate plan depends on the value and nature of your holding, there are some good tips for ensuring that the assets don’t get lost after you die. These include: 

• With a trusted friend or family member (preferably one who understands at least rudimentarily how cryptocurrency works), share your private keys and seed phrase.
• Splinter the private keys and seed phrase among several trusted friends or family members. That way, no one has total control over your digital assets.
• Create a trust. Then, transfer your crypto assets to the trust. You can designated a family member, corporation, or other authorized entity to manage the trust as a trustee.
• Place your assets in custody, using something like a hardware wallet or software application. 
• Utilize what is known as a “dead man’s switch app,” which will trigger the transfer of your crypto assets.
• Instead of choosing a self-sovereign wallet, pick a cascading multi-signature wallet. 

One or a combination of these tips might be helpful to you in deciding how you want to manage the asset transfer. The main key is to be strategic and careful about how you structure your plan. If in doubt, contact an attorney.

Digital Asset Custodian Services 

There are companies out there that offer custodian services. These include businesses like Unchained Capital, Casa, BlockFi, Genesis, and Anchorage, among others. Some companies offer custodian and trustee services. Some trust companies tend to create lifetime discretionary trusts. But, again, there is no template for a successful digital estate plan. Your solutions can range from the complex to the simple—but almost all plans require some flexibility. 

An estate planning attorney familiar with cryptocurrency can help you manage it. A secure transfer is possible, but there are a lot of considerations that go with it. Don’t wait to include your digital assets in your estate plan. Visit our website and learn more about cryptocurrency. 

Well, we made it. It is officially 2022, and, hopefully, things are looking up. We can’t say the same for the case numbers out there, but it’s best to think optimistically, as far as the new year goes. With 2022 upon us, it’s important to think about protecting any new assets that you have obtained or might obtain. In this article, we’ll discuss the most important assets to protect, and you can see if any of them fit you.

Tangible vs. Intangible Assets

Before we get into some examples of assets you must protect, we should discuss the difference between tangible and intangible assets. Tangible assets are, simply put, things you can touch. Intangible assets do not exist in physical form—they usually exist digitally or through legal documents. 

Examples of tangible assets include: land, equipment, vehicles, furniture, machinery, inventory, and securities, such as cash, stocks, and bonds. Intangible assets might encompass things like checking and savings accounts, health savings accounts, life insurance policies, retirement plans, and digital holdings.

Documents You Can Use 

There are some basic must-haves when it comes to your estate plan. Briefly, we’ll go through the basics of what you need to have in your legal toolkit as a savvy estate planner. If any of these sound confusing, don’t worry, as an estate planning attorney will easily be able to help.

Will

The last will and testament is easily one of the most recognizable of all the end-of-life planning documents. This is a final expression of where you want your assets to go after you die. There are requirements to make a will legally valid, which is why it is not a good idea to try to create your will yourself. If a will is improper, that will cause an ensuing tangle in probate court. Contact a lawyer to have your will drawn up correctly. 

Trust

A trust is way to transfer an asset without having to go through probate court. That definition is simplified, but, in this context, it is what you need to know for a basic knowledge base. A trust is a three-party fiduciary relationship. The donor (you) transfers title to an asset to a second party, called a trustee. The trustee holds title to the asset until you designate that it should be transferred to the third party, the beneficiary. If the asset is transfer-upon-death, the beneficiary will receive it once you die, whether it’s a fund or a piece of land. 

Beneficiary Designations 

Every estate plan should have beneficiary designations. These designations are usually made when there is a life insurance policy, retirement account, or financial account established. These designations let you transfer assets directly to people, regardless of what your will says. You can designate individuals or your estate as the beneficiary. The rules differ, depending on the account itself.

Healthcare Power of Attorney 

A power of attorney is a trusted individual that is key to protecting your assets. If you’re too sick or otherwise incapacitated to make decisions yourself, a healthcare POA can make medical decisions on your behalf. A financial power of attorney carries out much the same function, except, instead of medical decisions, he or she makes financial decisions for you when you cannot. As you can see, making sure your POA is trustworthy and sensible is extremely important for this legal tool.

Letter of Intent 

Last but not least, a good estate plan should include a letter of intent. This document usually includes instructions about how the executors of your estate should manage your will. The document can be persuasive in court, should there be any questions or challenges. Whether it is legally binding depends on the state, but, at the very least, it gives your loved ones important information about your end-of-life decisions. 

This list isn’t exhaustive, but you could find it useful when thinking about your estate planning for 2022. You don’t want to wait to update your estate plan, contact an estate planning attorney today to talk about new updates for the new year.

It’s amazing how quickly 2021 has gone. 2020 seemed as though it would never end, with one terrible event after the other prolonging the year. 2021 has gone, by comparison, much more quickly for most people. Now, we have less than a month until the New Year. 

As always, everyone is making New Year’s resolutions. A lot of these resolutions have to do with diet and exercise, while others involve curbing spending and other bad habits. Setting New Year’s resolutions is always a good thing, and we hope you stick with yours. We suggest adding a new resolution to the mix if you don’t have one. This resolution is simple: contact WFP and get an estate plan. 

In this guide, we’ll walk you through how to set up an estate plan. This guide won’t be the be-all, end-all, but it will hopefully be helpful enough to set you on the right path.

What is an Estate Plan? 

An estate plan isn’t just one document, though the word “plan” is singular. This plan encompasses a whole host of documents that concern far more than just where your assets go after you die. Common documents in an estate plan include things like a healthcare directive, where you detail your wishes for medical care in the event that you fall ill and cannot communicate them to a doctor. 

Others include things like a power of attorney, which is a specific individual you select to manage your affairs if you are too incapacitated to do so. Of course, you also have things like trusts and living wills, which concern your assets. An estate plan is the ultimate failsafe. If you don’t have one, your estate will revert to probate court, which will use your assets to pay off creditors. Your family will get very little, if not nothing, after you die. 

How to Get an Estate Plan 

It’s not hard to get an estate plan. All you have to do is contact an estate planning attorney and set up an appointment. The fees and length of time necessary depend on the complexity and value of your property. It’s best to spend the money to set up a good, solid estate plan than to try to cut corners. Trust us, it will be far more expensive to have to fix mistakes after the fact. As with anything legal-related, there are other considerations for you to think about when making your estate plan. 

Other Considerations 

Updating It

After you set up your estate plan, you’re not done, never to look at it again. You have to update it and review it. Take a look at your estate plan every three to five years or after a major life event. Make any necessary changes and remove anyone who shouldn’t be there. If you’re moving to a different state, you’ll need to ensure that your estate plan conforms to the new state’s laws. 

Don’t DIY It

It might be tempting to do it yourself and write your own will. After all, you can follow instructions on LegalZoom, right? This is a terrible idea. The law has a million and one little technicalities and intricacies that are easy to miss when you’re not a trained, licensed lawyer. Making legal mistakes could lead to documents being contested or invalidated, something that will tie up your remaining family in court long after you pass away.

Talk to Family Members 

One thing that people often forget when it comes to their estate plan is the importance of talking to their family members. Tell them ahead of time what you plan to do with your assets. If you have young children and want to appoint a guardian, discuss guardianship with the proposed guardian. Keeping an open, honest dialogue will go a long way to prevent any challenges, contests, or confusion after you die.

Hopefully, this guide has at least given you some inspiration to make you realize that an estate plan is the right choice. It’s the best way to give yourself and your loved ones protection and peace of mind, as far as your assets go.

Have you ever wondered why the holidays are considered the season of giving? Though you receive a lot of gifts, you also give them. The religious aspects of the holiday season (no matter what religion you are) often inspire people to give back to those who are less fortunate, including them in their giving as though they were their own family members. 

The season of giving might have you thinking about your assets and what you want to do with them after you die. You don’t want them to be stuck in probate court, where they’ll be divied up to your creditors, instead of your family. There are ways to transfer your assets now that will not only protect them, but will also give your heirs the gifts they deserve. 

What is Probate?

Probate is a legal proceeding overseen by a judge. The main goal of probate is to satisfy your debts after you die. This means that your assets will go to your creditors, as opposed to your family. Probate court can be avoided, through tools that we will discuss here. These tools include: trusts, joint ownership of real estate, P.O.D. accounts, and small estate provisions. 

Trusts

When you think of estate planning, you likely think of a last will and testament. However, that is far from the only option for asset transfer. A living trust, also known as a revocable living trust, is a document that creates a legal entity separate from you. You transfer title to an asset into the trust, and you or someone else becomes the trustee. The trustee transfers title to the beneficiary (the person you want to get the asset after you die) at a designated time. 

A revocable trust can be revoked, while an irrevocable living trust, which is often used for Medicaid planning, cannot. The cost to set up a trust is not cheap, but these legal fees are often less than those of probate. It all depends on the complexity and value of your property. 

Joint Ownership of Real Estate 

Property that is jointly owned with the right of survivorship can avoid probate. This means that when one owner dies, the property passes to the other owner, who has survivorship rights. The property needs to be retitled as jointly owned with the right of survivorship. A new deed might even have to be recorded to delineate survivorship intention; otherwise, it won’t be clear what type of property it is supposed to be, and the estate will end up in court.

P.O.D. Accounts 

Bank and financial accounts often allow the holder to designate a beneficiary in the event that they die. This type of account is called a “Pay On Death” (P.O.D.) account. This is far preferable to jointly owning the account, as the P.O.D. beneficiary won’t have any rights until you die, so you won’t have to fight for control while you’re alive. Setting up a P.O.D. account usually isn’t overly complex. You just fill out the form provided by the financial institution, sign it, and, when you die, the beneficiary gets your funds and your account is closed.

Small Estate Provisions 

There are ways to avoid probate court if you have a small estate. Most states have these provisions in place. In Florida, you can use a simplified estate process if you have no real estate. Also, all property must be exempt from creditors’ claims, save for amounts necessary to pay for funeral costs and the illness expenses of the last two months before death.

These are far from the only ways to avoid probate, but they are some main ones that you’ll likely run into at some point. Contact an estate planning attorney to discuss more options for asset transfer.