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 30, 2016May 29, 2023

Overlooked Estate Planning Concerns

When people are planning for their estates there are a few often important items that they tend to overlook.

Planning for an estate can be complicated. You need to take stock of all of your assets, figure out what should be done with them, and talk to an estate planning attorney to discuss the best way to make sure those assets are distributed as you desire. When doing that, do not overlook other estate planning issues you might want to address. Otherwise your estate plan may be less effective and comprehensive as it could be. Check out our website for estate planning fundamentals.

If the attorney does not know about certain issues important to you, then the attorney cannot help you plan for them.

Recently, the Lake County News listed some commonly overlooked issues in “Estate Planning: Important but sometimes unaddressed estate planning issues,” including:

It is important to decide what should happen with any digital assets you have. State laws differ about how digital accounts should be handled and who can have access to them. Make sure your attorney knows what digital accounts you have.
If you want to make sure your pets are taken care of after you pass away, then you need to let your estate planning attorney know that.
If you have any dependent adult children still living at home, then you might need to make special plans for them if they are not able to care for themselves.
You need to make sure that any life insurance policies and retirement accounts have alternate beneficiaries listed in case the first beneficiary predeceases you.

Schedule a consultation with Profit Law Firm to create an estate plan that covers the basics.

Reference: Lake County News (Nov. 12, 2016) “Estate Planning: Important but sometimes unaddressed estate planning issues.”

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.”

November 22, 2016February 23, 2026

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 “Will vs. Trust: What’s the Difference?”

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 (Jan., 2026) “Will vs. Trust: What’s the Difference?”

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.”

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Tag: Estate Planning