If you know about Thanksgiving, chances are you’ve heard of Black Friday, too. Black Friday always takes place on the Friday after Thanksgiving. The shopping holiday offers great deals for consumers, and millions of people go out shopping on Black Friday, providing the economy with a huge boost.

Buying assets is great, but how are you protecting them? Estate planning provides a lot of ways you can protect your assets, especially from assets’ worst nightmare: a lawsuit. 

Lawsuits in America

America is a litigious society. Millions of lawsuits have been filed over the years, for issues both minor and major. Big money awards usually come from class action lawsuits, and the payouts have come from major companies like General Motors, BP, Volkswagen, WorldCom, and more.

While a lawsuit you face might not be Enron-level (the payout there was $7.2 billion), getting sued can still put a huge dent in your pocket, even if the claims are baseless. If you work in an industry where lawsuits are common, or you just want to protect your assets from the worst-case scenario, consider these legal tools.

Know Your Business Entities

Keeping your personal and business entities separate is important, and, if you don’t take the steps to create a separate business entity, a dispute can cost you everything you own. An LLC or corporation provide protection against liability if you’re sued. If you own a sole proprietorship or partnership, be careful, as they might not offer protection in the event that you’re sued.

Get Insurance

There are some professions that generate more liability than others. Professionals like financial advisors, doctors, real estate agents, and lawyers have to get insurance. Malpractice insurance isn’t the only way to protect yourself against lawsuits. You can also look into homeowners, commercial liability, worker’s compensation, and auto insurance. Shop around to get the best prices for your policy. 

Homestead Exemptions

In Florida, for example, a $25,000 is applied to the first $50,000 of your home’s assessed value. Your home has to be your permanent residence to meet this exemption, and you have to have owned the property as of January 1st of the tax year. States protect some level of home equity across the country. So, even if you declare bankruptcy, state law prohibits the courts from giving your home to creditors.

Get Rid of It 

Creditors can only seize assets that you own. No matter how bad the lawsuit or how much money you owe, a creditor cannot come for an asset that is not yours. If you are solvent and an asset transfer won’t render you insolvent, consider simply transferring ownership of your assets to irrevocable trust. You can also give away assets as gits. Tax laws allow for some amount of exclusion, based on how much you give. 

If an asset means a lot to you and you don’t want to see it taken away by creditors, giving it away might be your only choice. If it’s financially doable for you, it’s an option.

Don’t Wait 

Of course, you don’t want to wait to do any of this. It’s too late to transfer once the judgement is rendered. You want to take these steps now if you believe you’re at a high risk of lawsuits. Even if one doesn’t happen, preparedness is still the best option.

Even the word “lawsuit” is enough to make some peoples’ skin crawl. Luckily, there are ways you can protect yourself from going broke in the event of a lawsuit. Contact an estate planning attorney to put some of these tools into action.

According to History.com, Thanksgiving started in the 1600s, when Plymouth colonists and Wampanoag First Americans shared a harvest feast. That was the first Thanksgiving celebration in the colonies, and, for the next two centuries, Thanksgiving was celebrated by individual states and colonies. 

It wasn’t until 1789 that Thanksgiving became an actual government holiday. President George Washington declared that November 26, a Thursday that year, would be the day of Thanksgiving celebrations. Since then, Turkey Day has always fallen on the final Thursday of the month. It is a time to be grateful, eat delicious food, and watch football.

When it comes to Thanksgiving, we are supposed to be appreciative for what we have. In most households, people go around the table saying something that they’re grateful for. While that’s an awesome tradition, you should take your appreciation a little further. In this article, we’ll talk about the best way to pass assets and wealth to your heirs. 

401(k)s and IRAs

401(k)s and IRAs are investment accounts that grow, free of taxes, while you’re alive. They continue this tax-free growth after being inherited by your beneficiaries. Some heirs, like spouses and people who have disabilities, are able to hold these accounts during their lifetimes. But note, most heirs have to empty 401(k)s within ten years.

Your Home

Your house is likely the most valuable, nonfinancial asset that you have. Depending on where you live, heirs may not have to pay a capital gains tax on the house, should they decide to sell it. The heirs will, however, have to keep up with upkeep and taxes, so make sure that whoever you choose is able to do so.

Term Life Insurance

For loved ones who rely on your caregiving and income, term life insurance can be a godsend. You can get a lot of insurance coverage for, comparatively, not much money. Term insurance is a variety of life insurance that covers people for a set term of years. If someone dies within that term, a death benefit is paid. You can make your loved ones your beneficiaries.

Note that if you don’t die during the term, you won’t get the money back. But, that’s not necessarily a bad thing. After all, you’ve purchased home insurance, but that doesn’t mean you want your house to burn down. Term life insurance is an affordable way to safeguard your loved ones who depend on you.

Whole Life Insurance

Whole life insurance is a simple form of permanent life insurance. It covers your entire lifespan, as long as you pay the premiums. When you die, this life insurance death benefit is paid out to your beneficiary. These policies not only provide a guaranteed benefit upon death for your heirs, there is also a cash-value component that you are able to access for long-term care, emergencies, or other needs. Whole life insurance can be more expensive than term life insurance, and you should avoid borrowing against your policy, as that can backfire pretty badly.

Annuities

Simply put, an annuity is a contract that you sign with an insurance company. You make a lump sum payment or a series of payments. In return, you get periodic payments that last for life. You can put your beneficiaries onto an annuity, ensuring that they get a steady stream of income. Annuities that have a death benefit can also provide a huge lump sum for your beneficiary, if you die. 

Contact an estate planning attorney to set up these documents, as doing them yourself could lead to legal mishaps and unenforceability. Discuss your estate plans with your loved ones sooner than later, especially if you plan to leave a large amount to charity or leave different people different amounts. 

Every year, Veteran’s Day is held to commemorate the sacrifices of U.S veterans. Veteran’s Day takes place on November 11th, and we’re able to honor the men and women who defended our country in armed conflicts. This holiday replaced Armistice Day in the 1950s and, ever 1954, it has been a sacred time of remembrance. 

Veteran’s Day honors the men and women who have made a difference in our lives with their bravery. How are you making a difference in your own life? Contact WFP and consult an estate planning attorney to get your must-have documents in place. A comprehensive estate plan improves your sense of security and peace of mind. 

Must-Have Documents

In this article, we’ll discuss some must-haves for estate planning, including: beneficiary designations, letter of intent, durable power of attorney, wills, trusts, healthcare power of attorney, and guardianship designations. 

Beneficiary Designations 

There are different assets that can pass to your heirs without you having to dictate them in the will (i.e. 401(k) plan assets). For this reason, it’s important to maintain both a beneficiary and contingent beneficiary on these accounts. Insurance plans, for example, should have a beneficiary and a contingent beneficiary, in the event that the assets pass outside of the will.

Letter of Intent

A letter of intent is a document that you leave to your executor or beneficiary. The letter of intent defines what you want done with your assets after you die or if you are incapacitated. Other letters of intent contain special requests and funeral details. Though letters of intent are not legally binding, they’re informative of your intentions and can have an impact in probate court.

Durable Power of Attorney

A durable power of attorney is someone assigned to act on your behalf if you are unable to do so. If you don’t have a durable POA, a court might decide what happens to your assets in the event you’re found incompetent. That decision, in turn, might not comport with your views.

Wills

A last will and testament is a finale expression of what you want to happen with your assets when you die. Wills and testaments have to be written according to the legal rules of the state in which you live; otherwise, they will not be legally enforceable and could be challenged in probate court, where they have to be authenticated.

Trusts

Trusts are a three-party fiduciary relationship. You, the grantor, transfer title of an asset to a trustee. The trustee, a secondary party, holds the title until you want the beneficiary, the third party, to have it. For example, a beneficiary might get title after you die. Often, trusts are vaunted above other estate planning documents because they don’t require you to go through probate court.

Healthcare Power of Attorney

Much like a durable power of attorney, a healthcare power of attorney makes decisions on your behalf if you become unable to do so (if you fall into a coma, for example). The healthcare POA’s decision-making arena involves medical decisions, and they will uphold your wishes for your healthcare, even if you can’t voice them yourself.

Guardianship Designations 

If you have small children, it’s important to include guardianship designations in your estate plan. This paperwork will ensure that your kids have a legal guardian if something happens to you and your spouse. Talk with your proposed guardian before filing a designation to make sure that he or she is on board with this major responsibility.

If this all sounds confusing, don’t worry. Estate planning can be complicated, but, if you have an attorney to help you, it will make more sense. You’ll be able to complete your estate plan efficiently and thoroughly with the help of an estate planning attorney.

Halloween is here! What a time to be alive. Last year, Halloween celebrations were pretty much stifled. Though things aren’t back to normal yet (see the CDC guidelines for more information on how to celebrate safely), there’s at least a little breathing room. Halloween is a lot of peoples’ favorite holiday, even more than Christmas. We can’t say we blame them, as there’s a lot to love about spooky season, from the pumpkin spice to the candy to the horror movies. 

There are some things scarier than Halloween. Living irresponsibly and not having an estate plan is definitely on our list. In this article, we’ll talk about some major “don’ts” when it comes to estate planning. 

Failing to Plan 

Of course, the biggest planning mistake you can make is failing to plan in the first place. Estate planning is important because it secures not only your future, but your loved ones’ futures. If you die intestate, the court will focus on paying off creditors and wrapping up the estate. Not everyone you love will get what you want them to get. 

Not Discussing

It’s a good idea to set expectations now and let people know what you’re planning to do, as part of your will. Let your family know where your assets will go after you pass on. Otherwise, you run the risk of disagreement or contention after you die.

Naming Only One Beneficiary

You should always list more than one beneficiary for your asset. That way, if a beneficiary passes or is otherwise unavailable, the asset won’t revert back into the estate. List a contingent beneficiary for each asset that you’re going to be transferring. 

Forgetting Important Documents and Assets 

Some documents that you absolutely cannot forget about include powers of attorney and healthcare representatives and final arrangements. You also don’t want to forget about digital assets you may have or charities that you find important. An attorney will help you come up with a comprehensive list of everything you want to include in your estate plan, and they’ll likely have suggestions as well, based on your situation. 

Being Overly-Specific

We know that this one might seem counterintuitive, as lawyers often tell you that you should be overly-specific to the point of nausea. However, being too specific can sometimes be a negative when it comes to estate planning. You want to make sure that assets you have now will be of use in the future. Naming certain assets (sports tickets, real estate, etc.) with extreme specification opens up the risk that someone might get left out if the asset isn’t there in the future. The solution is to make sure you continuously update your estate plan to reflect any changes to these specifics.

Improper Funding for Trusts

Creating a trust is half the battle. You have to make sure it’s properly funded with a solid, trustworthy source. An unfunded trust is useless. In order to avoid this, work with an attorney to make sure everything is titled properly and that all the assets in the trust are actually in your name. Though this might not seem like a common problem, it actually is. 

Tax Issues

Taxes and death—the two unavoidables of life. Estate tax liabilities will put a dent in what you leave to beneficiaries. Usually, this liability won’t be an issue unless you have a large estate worth millions. If you do fall into this category, you need to talk to a tax attorney about ways to legally minimize your estate’s tax burden. 

You might be thinking to yourself that there are a lot of ways you can go wrong when it comes to estate planning. Luckily, estate planning attorneys can help you avoid these common pitfalls, ensuring that you’re dotting your Is and crossing your Ts. 

Halloween is spooky season. It’s a time for all ghosts, ghouls, and goblins to come out and make themselves known. For a lot of people, this time of year is their favorite. And we can see why. The leaves are changing (if you live up North, that is), and Christmas is drawing closer. 

Speaking of all things scary and creepy, let’s talk about probate court. Though probate court might not spark the same fear as Stephen King’s It, it’s still no fun at all. Probate court deals with matters of estate administration. In this article, we’ll talk more about probate court’s functions and why you want to avoid it. 

What Does Probate Court Do? 

Probate court is presided over by a judge, of course, and that judge’s main mission is to ensure that someone’s creditors are paid off and their estate is wrapped up neatly. The basic role of the court is to deal with the debts and property of someone who has died. You can go through probate court even if you die with a last will and testament, as that will has to be authenticated. 

Disadvantages of Probate Court 

Public Process

Probate court is a public process. This means that family and friends have a forum to bring claims if they think they’re entitled to your property or that there is a problem with your legal documents after you die. As you can imagine, this increases the chance of conflict after your death. It might even escalate if relatives are battling it out, and your estate could wind up with some heft legal fees. Also, your personal information, down to the age of beneficiaries to how much your jewelry is worth, is out there for the public to see.

Court-Supervised

Probate court is supervised by a judge and controlled by a huge book of laws. Your executor is restricted and bound by these laws, and they’re not often able to act in a way that maximizes your estate’s value. Executors usually have to get the court’s permission for the majority of transactions they enact on behalf of your estate. 

No Advance Planning 

Anyone can go to probate, whether they have a will or not. There’s no advanced planning, and you don’t have to do anything before you die. However, that’s a double-edged sword, as the lack of advance planning means that you won’t have the ability to administer your estate in a way that shows your loved ones how much you care. The values expressed will be those of the court, not yours.

Intestacy

Dying intestate (without a will) is the scariest thing of all. Dying intestate has a lot of potential consequence, as that means that the court has total control. Your next of kin might not end up as your chosen heirs, and your loved ones will be bound by the law, not the provisions you make for them. 

Expensive

Probate can consume a lot of your estate. That number might be in the single-digits, but it still leaves less money for your heirs. Taxes, filing fees, and other costs can make a sizable dent in your estate that your family is not likely to appreciate. 

Time-Consuming

Lastly, probate court is time-consuming. Though it’s been reformed time and again, it’s still unpleasant. Your executor will have to complete tons of forms throughout the process, working on your estate tirelessly. 

How to Avoid Probate Court 

After hearing all these negatives, you are probably wondering how you can avoid probate court. This is where an estate attorney can step in, as they can help you perform legal maneuvers, such as writing a living trust, naming beneficiaries on your bank accounts and retirement, and holding property jointly, that will get you out of probate court. There are ways around it; you just have to seek help first.

As you can see, probate court isn’t something you want to tangle with. Avoiding probate court is something with which an estate planning attorney can help you, as they understand full-well probate court and its disadvantages. 

Breast Cancer Awareness Month happens every October, and it’s a time to reflect on taking care of you and your loved ones. One in eight women will be diagnosed with invasive breast cancer over their lifetime, so this is a problem that affects everyone. 

Early screenings, regular mammograms, and vigilance can help reduce the chances of breast cancer having severe or even fatal effects. To learn more about Breast Cancer Awareness Month and what it means for you and your family, visit www.breastcancer.org. 

As far as estate planning goes, breast cancer has an impact on how you should think about your estate plan, especially if the ailment runs in your family.

Illness and Estate Planning 

When you’re thinking about your estate plan, you should think about major life events and if you’re prepared for them. While some of those events, such as the birth of a new baby or a wedding, are cause for celebration, others, like illness and death, are not. In this article, we’ll discuss some important estate planning tools for illness. These tools will help you protect your assets and dignity in the event of the worst-case scenario.

HIPAA Releases

If you’ve ever been involved the medical field at all, either as a patient, worker, or both, you’ve probably heard the word “HIPAA.” HIPAA refers to the Health Insurance Portability & Accountability Act. It was drafted in 1996, and it imparted stringent requirements for the confidentiality of your healthcare information. 

A HIPAA release authorizes someone you designate to access your health information. This is essential if that person is going to be interacting with medical providers on your behalf. The authorization for this release will have to be, of course, voluntary and in writing. 

Living Will

A living will is a legal document that acts as a statement of your direct wishes as they pertain to your healthcare. Religious views are a common reason someone would choose a living will. A living will addresses specifications for your care—dos and don’ts—and what you do and do not consent to.

Health Care Proxy 

Another healthcare-related document that you often find in estate plans is a proxy. This medical power of attorney designates someone you trust to make medical decisions on your behalf, should you become too incapacitated to do so. Agents have the power to direct your medical care if need be, and they can also be named as your guardian, if a guardian proceeding were to ever occur. 

POLST 

POLST stands for a “Physician Order for Life-Sustaining Treatment.” This document, which your healthcare provider will help you complete, is part of  your medical records. It is accessible to your doctors whenever they need it, and it refers to end-of-life medical decisions. This means that it isn’t as broad as a living will or healthcare proxy. A POLST is useful to those who don’t have family to name or want more assurance that their end-of-life wishes will be honored. 

Power of Attorney (Financial)

Much like a medical power of attorney, a financial power of attorney is a person you designate to handle your financial, legal, and tax matters if you’re unable to do so. Every adult should have this basic document, but it becomes even more important for people who are living with an illness. 

A key question for those suffering from illness is how much control they should give up at the time versus later on, if things worsen. A financial power of attorney can be adjusted, if you feel that your condition merits less (or more) control to be handed over.

Though this list is not exhaustive, it is a way for you to see that, when it comes to illness, taking care of your loved ones requires vigilance and hard work. Contact an estate planning attorney to learn more about ways you can legally prepare in the event of an illness like breast cancer.