December 16, 2016January 16, 2023

Why Homemade Wills Do Not Work

Drafting your own will or using a form that you purchased online to create a will, might seem like a good idea that will save you money. However, those wills often fail to do much more than create large legal bills in probate.

Wills often sound like simple legal documents. In a sense, they are. They are just a legal way to write down who gets your possessions after you pass away.

When it comes to estate planning generally, wills are among the simplest ways to express your parting wishes. However, the truth is that wills are only simple from an estate planning attorney’s perspective. They are not so simple that anyone can just write their own wills or purchase a form online to fill in and use as a will.

Those homemade wills do not always work very well for a variety of reasons, as the Huntsville Item explains in “A humorous look at the danger of homemade wills.”

Some homemade wills do not work for very simple reasons of formalities. In most states, executing a will requires that a specific number of people be present to witness the will being signed.

People who create their own wills often fail to either have the right number of people present or they do not leave any indication of how a court can contact the witnesses, if necessary.

Other homemade wills do not work for less technical reasons. The directions in these wills are often contradictory or impossible to carry out.

Getting a will does not have to be a complicated process but it should begin with hiring an estate planning attorney.

Reference: Huntsville Item (Nov. 27, 2016) “A humorous look at the danger of homemade wills.”

December 15, 2016July 11, 2023

Making an Inheritance Work

If you receive an inheritance, it should not put you in a worse position than you were before. That happens all too often.

A common myth about people who inherit wealth is that it brings them financial security and they no longer need to worry about money. However, as is the case with people who win the lottery, people who suddenly inherit wealth are often soon in a worse financial position than they were previously.

Most of the time, inheritances do not grow a person’s or a family’s wealth.

They end up subtracting from it as Chase News & Stories reports in “How to make sure your inheritance is a boon, not a bust.”

The biggest problem is overspending, especially on unnecessary things. While it might be fine to splurge on one or two things, spending can quickly snowball until there is nothing left. There is always something more that can be purchased and heirs who are not careful, keep purchasing those somethings.

The best way to prevent this is to plan ahead.

Talk to your older relatives about what inheritance you might receive from their estate plans and ask for guidance in wealth management. Your relatives who have wealth, can teach you how they maintained that wealth.

If you do not know ahead of time that you will receive a large inheritance and get one suddenly, then you can still make plans if you are patient. Do not do anything with the inheritance for at least six months. You should take that time to think carefully and to get good financial advice.

Reference: Chase News & Stories (Nov. 23, 2016) “How to make sure your inheritance is a boon, not a bust.”

December 14, 2016February 23, 2022

A Charitable Legacy Requires Planning

If you want to be remembered for charitable giving, then you should get started with an estate plan.

At this time of year, it can seem like giving to charity is something done with little forethought. It can require no more than dropping loose change in a bell ringer’s bowl at the grocery store or putting a new toy in a designated box at the mall.

While anonymous giving like that is helpful, having a true charitable legacy requires more work and considerable forethought.

People who want to be remembered for being charitable benefactors, need to get comprehensive estate plans as the Port Huron Times Herald explains in “Plan today to make a difference tomorrow.”

With an estate plan, you can set up your charitable giving to be ongoing after you pass away. If you want, you can leave one time gifts in your plan but also create new legal entities that will continue to give to charity indefinitely. You can even dictate what charities these entities will give to and for what purposes. In essence, an estate plan gives you much greater control over how and what your charitable giving will accomplish.

The entities you use to accomplish charitable giving can be relatively simple trusts or they can be complex family foundations. We provide more information on charitable giving on the Profit Law Firm, LLC website.

Without proper planning, however, creating a charitable legacy is nearly impossible. Attempts to do so can easily fall afoul of the law and IRS regulations. Thus, if you would like to leave a charitable legacy, consult with an estate planning attorney to review your options. Profit Law Firm can help inform you about the various charitable trusts you can use to accomplish your goals.

Reference: Port Huron Times Herald (Nov. 25, 2016) “Plan today to make a difference tomorrow.”

December 9, 2016May 5, 2022

Remarriage Planning

Before you get remarried late in your life you should do some estate planning. Profit Law Firm has information on how you can do estate planning to protect everyone in your new blended family.

People who are at or near retirement age are getting remarried more often than ever before. Most elder advocates think it is a wonderful thing that people are finding love and comfort late in their lives.

However, there is a potential problem.

Not enough older people getting remarried are properly planning for what doing so will mean for their families and estates. Without proper planning things can quickly go awry as New Hampshire Magazine reports in “Navigating Late-Life Remarriage.”

The biggest problem is that people do not take the time to consider what a second marriage might mean for their children’s ability to receive an inheritance. Children from an earlier marriage can be left out of an estate entirely without planning.

By default, a person’s entire estate goes to a living spouse. It cannot be assumed that the spouse will make plans to leave anything inherited for stepchildren in his or her estate. There is no legal obligation for the spouse to do so and the law will not give the money to those children if the spouse passes away without an estate plan.

This, of course, does not mean that someone should not get remarried late in life. It just means that some planning needs to take place before doing so, in order to protect children. P

Before getting remarried visit an estate planning attorney who can assist with the proper legal plans to make sure your children are protected.

Reference: New Hampshire Magazine (Dec. 2016) “Navigating Late-Life Remarriage.”

December 5, 2016

Attorney-Client Privilege Is not Absolute

When you go to an estate planning attorney you expect that what you tell the attorney will be protected by attorney-client privilege. However, that might not always be the case.

Attorney-client privilege is one of the most important legal doctrines in the U.S. It allows people to be open and honest with their attorneys without fear that the attorney can later be forced to use any information obtained against the client. This doctrine even has an important place in estate planning.

To properly plan an estate a client needs to be able to tell the attorney what his assets are. The client would not be willing to do so if the attorney could later be forced to testify in a different legal dispute about those assets.

However, there are exceptions to attorney-client privilege as the Wills, Trusts & Estates Prof Blog reports in "Treasure-Hunter's Documents Might Be in Deep Water."

In the case discussed, a former treasure hunter hired an attorney to create an offshore trust. The client then got financing for an expedition in which he recovered gold from a sunken ship. However, he refused to pay the people who had financed his treasure hunt.

They are asking the judge to force the attorney to reveal the trust documents so that they will have an easier time recovering the money.

The judge in the case, while not making a decision, has acknowledged that the crime-fraud exception to attorney-client privilege might apply in this case. In other words, if the attorney's services are knowingly used to commit a crime or a fraud, attorney-client privilege does not apply.

Reference: Wills, Trusts & Estates Prof Blog (Nov. 17, 2016) "Treasure-Hunter's Documents Might Be in Deep Water."

December 2, 2016October 25, 2023

Why People Put off Estate Planning

Roughly half of Americans will pass away without estate plans even if they know they should have one. Why do people not make plans they know they should make?

You have heard time and time again that if you do not have an estate plan, then you do not get to decide what happens to your property after you pass away. Who gets what will be determined by state laws. You also do not get a say in who should look after your minor children. That will be determined at the sole discretion of a court.

Most people are aware of these facts and know that they should do some formal estate planning because of them.

However, only about half of Americans ever bother to do that estate planning. Too many people pass away having constantly thought they could always wait to plan their estates. They ended up waiting until it was too late.

The Sabetha Herald recently discussed why people put estate planning off in “Procrastination Factor — Why we avoid any estate planning.”

The biggest reason is that many people would prefer not to think about their own deaths. To begin the estate planning process you need to contemplate a time when you will no longer be alive and that is an uncomfortable thing to think about. Another big reason is that family members often discourage people from estate planning. They would rather not think about a time when their loved ones will no longer be around.

The problem is that death is unavoidable.

You should not let uncomfortable thoughts stop you from taking the necessary steps to prepare. In fact, if you visit an experienced estate planning attorney, you will probably find that planning for your estate is not nearly as uncomfortable as you imagine it to be. We listen to our clients, and work with them to develop a plan that protects their three biggest treasures, their family, their business and their assets, as harmoniously as possible.

Reference: Sabetha Herald (Nov. 14, 2016) “Procrastination Factor — Why we avoid any estate planning.”

December 1, 2016February 27, 2023

Being Prepared for Death

You are going to die, so it is important to be prepared for it. However, do not be taken in by some common estate planning myths.

At some point in the future, you will pass away. That is an undeniable fact.

You might think that if you live long enough medical science will advance to the point people can live forever. The truth is, however, that current medical science is nowhere close to making that happen and it will not be for a long time, if ever.

So, now that you know the facts, it is important to make sure you are prepared and have an estate plan.

It is also important that you not be taken in by a couple of common estate planning myths as WSBT 22 discusses in “Special Report: Are you properly prepared for death?”

The first myth is that if you do not have an estate plan, then your family is doomed. All of your property will go to the government and your children will end up in foster care.

That simply is not the case.

Your property will go to your closest living relatives and the court will make sure your children receive proper care, which normally means they will live with a suitable relative. However, if you do not have an estate plan, then it is the government and not you who decides what happens to your property and children.

The second big myth is that you can get an effective estate plan by downloading a form from the Internet. Most of the time any money saved by downloading a form is lost due to problems that the form will later cost your estate. Our site provides some information on estate planning fundamentals.

There are no substitutes for an experienced estate planning attorney.

Reference: WSBT 22 (Nov. 14, 2016) “Special Report: Are you properly prepared for death?”

November 29, 2016October 30, 2023

When to Discuss Estate Planning: At Holiday Dinners

It is important to discuss your estate plan with your family. Some people struggle over when to do that. They could consider doing so over a holiday dinner, during this holiday season.

One of the most contentious issues many people face is talking about their own deaths and their estate plans with their friends and family. These are typically not the most comfortable of conversations for everyone involved.

Some people would rather just not talk about death. Others are afraid their family will be upset by the estate planning choices they have made. However, nearly all experts agree that one of the essential ingredients to having a successful estate plan and avoiding family fights over the estate is not to surprise family members with your plans. Talking about your estate plan is particularly important in Maryland and the District of Columbia because both states impose a tax on your estate when you die. Talking about your estate plan with your family so that they know how to handle these estate taxes, helps reduce any family friction on your demise.

If you let them know what your plans are and why you made those plans, they are more likely to accept them. If talking about your plans is uncomfortable for you, then you need to find a good time to do it. At Profit Law Firm, we can incorporate family meetings into the estate planning process. Contact us to create an estate plan that protects your loved ones and estate with the harmonious transfer of wealth.

The Street recently suggested one possible time for that conversation in “Thanksgiving Dinner Is a Perfect Time to Discuss Estate Plans.”

You read that right.

The article suggests you talk to your family about your estate plan while eating turkey and stuffing. The reasoning is that everyone is normally in a good mood while eating Thanksgiving or any holiday dinner. If that holds true in your family, it would be a good time to discuss your estate plan.

Of course, if your holiday dinner includes a crazy uncle who irritates everyone else, then it might not be the best time to discuss things.

The bigger point is the best time to discuss your estate plan with your family is when everyone is in a generally good mood already. Whenever that happens to be for your family is a good time to discuss your plans.

Reference: The Street (Nov. 15, 2016) “Thanksgiving Dinner Is a Perfect Time to Discuss Estate Plans.”

November 25, 2016February 27, 2023

What You Should Have in Your Estate Plan

There are a few things that every single estate plan needs to have regardless of the exact legal instruments that you end up using as your primary estate planning tools.

Estate plans can take a variety of shapes. Some estate plans are small and simple. Other estate plans are large and contain many complex legal instruments. However, there are a few things every single estate plan needs to have.

Recently, the Catholic Register discussed what is necessary for all Canadian estate plans in “The must-haves of estate planning.” In the U.S. most of the same things are also necessary. They include:

Someone needs to be appointed as the executor of your will. Even if the primary instrument to distribute your property is a trust, your plan should still include a pour-over will for which you need to appoint someone trustworthy as an executor.
Your estate plan needs to include some basic tax planning, especially if you live in a state that has an estate tax of its own. Both Maryland and the District of Columbia do, so you need some basic tax planning in both these states.
If you have any dependents, then your estate plan needs to provide for their care. While you have some flexibility in your estate, you cannot simply disinherit a spouse or a minor child. Maryland and the District of Columbia, like other states, allow disinherited spouses to claim an elective share of the estate, regardless of an intent to disinherit.
Your estate plan should also include powers of attorney so you can appoint someone to look after your interests if you become incapacitated.

If you have an experienced estate planning attorney create your estate plan, then it will contain all of these things and much more that will make your estate plan as effective as it can possibly be. Schedule a consultation with Profit Law Firm to get the peace of mind that comes with proper estate planning.

Reference: Catholic Register (Nov. 6, 2016) “The must-haves of estate planning.”

November 24, 2016July 13, 2023

Avoid Family Disputes in Your Estate Plan

One of the main estate planning goals of many people is to avoid having a family fight over their estates.

There are very few things that can be more destructive to a family than a fight over an estate. Once the fight begins it becomes nearly impossible to regain family harmony because of the deep and bitter emotions that battles over estates have. People who know this seek to create estate plans that make family fights less likely.

While it is not possible to avoid all fights, there are some steps that can help.

Recently, the Lodi News-Sentinel discussed some of those steps in “Avoid family fights over inheritance,” including:

Plan ahead of time. You should have an estate plan in place long b_81a106d2-a54e-11e6-933b-d37e6ac5f0fe.htmlefore you think you will need one. Sudden deaths happen and it could happen to you. If you have no estate plan, you practically invite your family to fight over your estate.
Consider irrevocable trusts. At some point your family might start thinking about what will happen to your estate after you pass away and they might start angling for position in the estate. If you have planned ahead and have an irrevocable trust, then you will not be as easily influenced to change plans to accommodate everyone.
Use a professional trustee. Instead of appointing a family member to be in charge of your trust after you pass away, use a professional who will remain independent and treat everyone in the family equally.
Hold a family meeting. Bring everyone together and let them know what your plans are and why you made them. Family members who are surprised by your estate plans after you pass away are more likely to argue.

Reference: Lodi News-Sentinel (Nov. 7, 2016) “Avoid family fights over inheritance.”

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Category: Estate Plans