November 22, 2016February 23, 2022

Do You Want a Will or a Trust?

One of the first things that people have to decide when they start thinking about estate plans is whether they want to use a will or a trust. Both have their advantages.

If you start asking your friends and family or look on the Internet for estate planning advice, then you are likely to receive a lot of conflicting advice. Should you get a will or a trust? Nearly everyone seems to have an opinion one way or another. You can find out more about the basics of estate planning on our website.

Normally, the opinion of non-attorneys is rooted in which of the two options was best for the person giving the advice. It may or may not be the best advice for you.

To help decide the better option to use as the primary legal instrument in your estate plan it is helpful to know the basic differences between the two.

This was the subject of a Motley Fool article titled “Wills vs. Trusts: Which Are Better?” We also

A will determines who gets your possessions after you pass away. It has no legal effect until then. It is a roadmap for what you want to happen later. The rules for wills vary from state to state, but they need to go through probate court and the details are made public. For people with small estates they can be cost-effective.

Trusts, on the other hand, have legal effect as soon as they are executed. Property is placed in the trust while you are still alive. While trusts can be more costly to obtain and maintain, they do not ordinarily have to go through probate after you pass away and the details are not made available to the public. Trusts are normally preferred to wills for larger estates.

If you are uncertain whether a will or trust is a better option for you, that is okay. You probably should not decide between the two before talking to an estate planning attorney who can help you make the decision. Schedule a consultation if you would like to learn more.

Reference: Motley Fool (Nov. 8, 2016) “Wills vs. Trusts: Which Are Better?”

November 21, 2016April 27, 2024

Two Basic Types of Estate Planning Documents

Estate planning can sometimes seem like it requires a long, complicated list of different documents. It can be helpful to break those documents down into two basic categories.

Once you start planning for your estate you can quickly get bogged down trying to figure out what all of the different estate planning documents are. There are all sorts of different legal documents that are not familiar to most non-attorneys. This often confuses people enough that they give up and delay getting an estate plan.

However, it does not have to be that complicated.

A good way to think about the different documents is to put them into two basic categories, as the Motley Fool discusses in “The Estate-Planning Documents Everyone Needs.”

The first type of estate planning document determines what happens to your belongings after you pass away. This category includes wills, most trusts and even things like a retirement account that has a beneficiary designation.

The second type of estate planning document determines who takes care of your affairs if you are not able to do so. This category includes powers of attorney and advanced health care directives.

Who do you want to have your possessions after you pass away and who would you like to take care of your affairs if you cannot? Answer these questions, and then go to an experienced estate planning attorney. Schedule a consultation with Profit Law Firm, LLC. Tell the attorney your answers, and let the attorney figure out the documents you need to give your answers legal effect.

Reference: Motley Fool (Nov. 7, 2016) “The Estate-Planning Documents Everyone Needs.”

November 18, 2016December 4, 2023

You Are Not Done When You Get an Estate Plan

Getting a formal estate plan from an attorney is not the final step to prepare for your estate. Estate planning is a lifelong process.

If you have taken the important steps of going to an estate planning attorney, discussing your wishes for your estate, having the attorney craft your plans and executing those plans, congratulations. You have done what far too few Americans do and have planned for how your estate will be handled. You have taken the necessary steps to make sure that if anything happens to you, your loved ones will be taken care of according to your requests.

However, do not think you are done with everything forever.

It is extremely important that you update your estate plan when necessary as the Verde News discusses in “Updating Your Estate Plan: When You Should Review It.”

It is impossible to list all of the possible times your estate plan should be updated.

Plans need to be changed whenever there are significant changes in circumstances. That can include changes in your financial situation, death of an important person in your estate plan, changes in estate law and much more.

Estate planning attorneys suggest that you review and change your plans anytime you experience a substantial change in life circumstances. It is also suggested that you review your estate plan every few years and talk to your estate planning attorney to make sure no laws effecting your plan have changed.

If it has been awhile since you have updated your estate plan, then call and schedule an appointment to have your plan reviewed.

Reference: Verde News (Oct. 29, 2016) “Updating Your Estate Plan: When You Should Review It.”

November 17, 2016December 15, 2022

Steps to Get an Estate Plan

Getting an estate plan often seems more difficult than it is. If you follow a few basic rules and steps, then you can get a good estate plan with little hassle.

Many people have the mistaken idea that getting an estate plan is an overly complicated process. They let this idea stop them from doing their own planning and they just keep putting things off.

However, estate planning does not have to be complicated.

Recently Personal Liberty offered some tips to simplify things in “Nuts and Bolts of Estate Planning,” including:

· Organize all of your financial and asset documents so you know what you have and what you need to plan for.

· Make the important decisions about who you want to have your assets and how much everyone should get.

· Think about how your heirs might disagree and how any conflicts can be avoided.

· Your plan does not need to be perfect. You will not be able to create a plan that pleases everyone completely.

· Whenever possible keep your plans flexible so they are easy to change when circumstances change.

· Make sure you are choosing responsible people to act as your executor and trustees.

· Do not surprise your heirs with too much. If you are planning something unusual, it is a good idea to let them know.

An experienced estate planning attorney can help you avoid missteps.

Reference: Personal Liberty (Oct. 28, 2016) “Nuts and Bolts of Estate Planning.”

November 16, 2016October 25, 2023

When a Family Member Dies

If you have never had to deal with a close family member passing away, then you might not know that there are important things that you need to do to make sure everything goes smoothly.

Dealing with the death of a close family member can be a trying experience, especially if it is the first time you are the responsible adult in charge of making sure everything is done properly. You not only have to deal with your own grief, but you also must make sure the deceased’s affairs are in order.

This is tough for even the most meticulous people as the Cape May County Herald discusses in “What to Do When a Family Member or Loved One Dies.”

Some things you need to do are just common sense. For example, you must make sure everything is safe and secure at the home, that any pets are taken care of and that any perishable food items are cleaned out of the refrigerator and pantry.

You should also take some financial steps.

It is important that you log any expenses you have while dealing with the clean up so you can be reimbursed from the estate. You should also be certain to locate any credit cards or check books to make sure they are secure. It is illegal for you or anyone else to use the cards or checks, so destroy them.

The most important thing you need to do when a loved one passes away is to call an estate planning attorney. If you know the family member used a specific estate planning attorney, then call him or her to ask about important documents. Otherwise, call an estate attorney to learn about your legal obligations.

Reference: Cape May County Herald (Oct. 31, 2016) “What to Do When a Family Member or Loved One Dies.”

November 15, 2016February 15, 2024

Convincing Parents to Create Estate Plan

Many children with aging parents know that their parents should do estate planning, but convincing their parents of that can be difficult.

Many elderly people in the U.S. believe estate planning is something only the very wealthy need. If they only have a few major assets and modest back accounts, then they believe estate planning is unnecessary for them.

Many of their adult children know better, however.

The children know estate planning is an important responsibility for everyone regardless of wealth. While those children would like to talk their parents into estate planning they may find it difficult. In the Washington Metropolitan area, estate planning is very important. Maryland estate planning is critical because Maryland has both a state estate tax and a state inheritance tax. The District of Columbia also has a state estate tax.

This topic was addressed by NJ 101.5 in “Talking to your parents about a will.”

If you find yourself having this problem with your aging parents, there are some steps you can take.

First, explain to your parents that without an estate plan their estates will have to go through probate and everything will be distributed according to state law and not your parents’ wishes. That means if they would like to leave something directly to their grandchildren, they will not be able to do so in most cases. It also means that they might be subject to Maryland or D.C estate planning axes.

You can also talk to your parents about how costly and time-consuming probate can be and how it could be a burden on the family.

If all else fails and you can afford it, you might offer to pay for your parents to visit an estate planning attorney. They do not have to commit to anything before seeing the attorney, but the attorney can discuss the benefits of estate planning with your parents and give them some options. At Profit Law Firm, we also conduct two generation family planning sessions. Contact us for a consultation with Maryland estate planning attorneys and DC estate planning attorneys.

Reference: NJ 101.5 (Nov. 1, 2016) “Talking to your parents about a will.”

October 13, 2016August 15, 2022

Should Seniors Get Married?

Getting married always comes with challenges and finances that needs to be worked out. This is especially true for people in their retirement years.

When people fall in love and decide that they want to get married, they often do not think of all of the financial consequences of their decision to wed. In the popular imagination this is something that young couples do all the time. They rush into a marriage without having first considered all of the financial implications.

However, elder law experts point out that the tendency does not go away with age.

Senior citizens are just as likely to get married without thinking everything through. That can be a problem, because seniors have more they need to think about than younger people as the Hartford Courant reports in “Fit To Be Tied? Think Twice About Marriage In Your Golden Years.”

Senior citizens considering getting married need to think about how marriage will affect all of their other plans, including retirement and estate plans. For example, a retired person might think his well-crafted estate plan to leave his assets to his children is solid and that a new wife with assets of her own will not affect those plans. Under the law, in Maryland and DC, however, a spouse is given inheritance rights. Therefore a retired person should contact a Maryland estate plannning attorney to review options to protect his children and the new spouse. There are several trusts that protect a spouse during life, while leaving the underlying assets to children from a prior marriage. Call Profit Law Firm, for consultation to find an option that works for your family.

In reality, it is almost impossible to cut a spouse out of an estate plan entirely. Consequently, whether or not the couple intends it, the new spouse is likely to inherit something without very careful planning. An estate planning

That is not to say senior citizens should never get married. They just need to think about it and visit an elder law attorney familiar with estate planning to learn about all the implications and what can be done about them.

Reference: Hartford Courant (Sept. 24, 2016) “Fit To Be Tied? Think Twice About Marriage In Your Golden Years.”

October 11, 2016February 15, 2024

How to Get an Estate Plan

People seeking retirement advice often express concerns about needing to leave an inheritance for their loved ones. They should get an estate plan to do that.

Different professionals have different roles in your financial well-being. Accountants can assist you with your tax returns. Retirement planners can assist you with your investments. And, as Morningstar explains in “Get Your Estate Plan in Gear” estate planning attorneys can assist you with an estate plan.

The article discusses a couple looking for retirement advice. They wanted to make sure their daughter with special needs would be adequately provided for after they passed away.

The author suggested that they get an estate plan and gave some tips about how to do it, including:

Hire an attorney who specializes in estate planning. If you want to make sure that your loved ones are taken care of, then you do not want to create an estate plan on your own.
Take stock of all the assets you own so you know what needs to be distributed in your estate plan.
Figure out who you want to include in your estate plan as heirs, beneficiaries and in key roles, such as executors and trustees.
Try to learn what type of estate planning documents you might need. If you are not certain, then make sure that you let your attorney know that.
After you get an estate plan from the attorney, make sure you manage the physical documents themselves so they are in good shape and can be found if anything happens to you.
Keep your estate plan up to date and makes changes whenever your life circumstances change.

Reference: Morningstar (Sept. 23, 2016) “Get Your Estate Plan in Gear.”

September 16, 2016

The Role of an Estate Planning Attorney

There are several options for creating an estate plan on your own. That might lead you to wonder what role an estate planning attorney can play and whether you should hire one.

If you can do something by yourself without taking too much time to do it, you are probably hesitant to hire someone to do the job for you. For example, why bother to hire a handyman to fix a squeaky door when fixing it yourself takes no more than a few minutes and some lubricant?

With many downloadable estate planning forms available today, many people are starting to have the same thoughts about estate planning and wonder why they should hire an estate planning attorney when they can do it themselves.

As the Herald Times Reporter in “Estate planning attorneys are like a QB” suggests, estate planning attorneys still have a vital role to play.

Just like the quarterback of a football team, an estate planning attorney plays a key role in coordinating the plans and executing them. The attorney is the one with the expertise and ability to make sure everything goes according to plan. A Maryland estate planning attorney knows the details of Maryland Law and a DC estate planning attorney knows the details of DC law. You tell the estate planning attorney how you want things to go and the attorney creates a plan that does what you want and follows the law. If you are a resident of DC or Maryland, then Profit Law Firm can help you make a game plan for your estate.

The attorney can even call an audible just like a quarterback. If there are potential problems with what you want to do, then the attorney can advise you and help you come up with a different plan.

You can play football without a quarterback, but it is unadvisable. You can also create an estate plan without an attorney. That too is not advisable.

Reference: Green Bay Press-Gazette (Aug. 13, 2016) “Estate planning attorneys are like a QB”

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