September 23, 2016November 26, 2024

Librarian Leaves Millions to University

Every once in a while a story comes out about a person who lived frugally and managed to amass a fortune. The latest example is a librarian from New Hampshire.

Robert Morin loved books. It is believed that with only a few exceptions he once read every book published in the U.S. between 1930 and 1940 in chronological order. Thus, it was probably fitting that when he graduated from the University of New Hampshire in 1963 he went to work in the school’s library.

Librarians do not normally make a lot of money, so it came as a surprise to everyone when Morin left the university his entire fortune when he passed away, which was approximately $4 million.

Apparently, Morin lived simply and invested well. He stipulated that $100,000 should go to the library where he worked, but the university can use the rest for other purposes.

My Central Oregon reported this story in “Librarian Quietly Saved $4 Million, Left it to School Where He Worked.”

Similar stories come up every few years. For example, grade school teachers have been known to save and leave millions to charity. In another recent case, a janitor left a small fortune to the school where he worked.

What this shows is that anyone who has the desire to do so can make a fortune by living simply and investing money well.

Of course, not everyone wants to live that way. Those who do, however, should not neglect to spend some of their money visiting with an estate planning attorney so they can makes sure the money goes where they want after they pass away. It does not make sense to save all the money only to have it go to someone you do not want to have it.

Reference: My Central Oregon (Sept. 4, 2016) “Librarian Quietly Saved $4 Million, Left it to School Where He Worked.”

September 15, 2016

A Trust Is Worth It

Setting up a trust can be time-consuming and there is no doubt that even the simplest trust takes some work to create. However, taking the time and making the effort is worth it.

A common question people have when they start to think about estate planning is whether it is worth the effort to create a trust. Just drafting a will is a lot simpler in most cases for the person doing the plan. Creating the trust requires funding the trust, which means that you have to transfer your assets into the trust.

If you just get a will, then you do not have to bother with any of that. However, if you are going to go to the effort of getting an estate plan, then you might as well make the effort of getting the best estate plan you can.

Taking the time to create a trust is almost always worth it as the Green Bay Press-Gazette explains in “Setting up a trust is worth the work.”

The two biggest advantages to a trust are that the trust makes it easier for you to control how your assets are used and distributed after you pass away. Moreover, a trust is much easier for your heirs to deal with after you pass away versus going through probate to sort out a will.

There are other advantages as well, such as keeping the details of your estate unavailable to the general public.

Even though a trust does take more effort to create than a will, the truth is that most of that effort can and should be done by an estate planning attorney. The attorney can make sure everything is set up properly and can normally assist in transferring assets into the trust. If you want to see how a trust might benefit you and your heirs contact Profit Law Firm.

In the end, getting a trust does not have to be that much more work for you.

Reference: Green Bay Press-Gazette (Aug. 29, 2016) “Setting up a trust is worth the work”

September 14, 2016

Estate Plans That Work

Estate plans that are perfect on paper can later become completely unworkable. To avoid that and have a good estate plan, you need to take a few simple steps after you get an estate plan.

When you walk out of an estate planning attorney’s office with a newly executed estate plan in your hands, do not make the mistake of thinking that your estate planning is complete. You have taken an important step toward having an estate plan your family can use after you pass away.

After you have created your estate plan, there is more that still needs to be done as the Reading Eagle recently explained in “Office Space: 4 steps to a perfect estate plan.”

To make sure that your estate plan will work you still need to:

Make sure the people who have important roles in your estate plan are aware of those roles. For example, if you have a general durable power of attorney, then you need to let the designated person know about it so he or she understands what to do should anything happen to you.
Let your family in on your plans so they know what is going on and who needs to do what. You do not necessarily need to tell them everything, but they should at least know where to look when the appropriate time comes.
Do not keep old financial documents you no longer need for any reason. You do not want your family to waste time trying to track down old accounts that no longer exist after you pass away.
Make sure to periodically review your estate plan and keep it up to date with any changes in your circumstances or the circumstances of your heirs and beneficiaries.

Reference: Reading Eagle (Aug. 30, 3016) “Office Space: 4 steps to a perfect estate plan”

September 13, 2016

What You Need to Know About Estate Planning

Estate planning can be a complicated topic to learn. However, most people only need to know the basics and where to find a good attorney.

If you are trying to research estate planning online, you will be forgiven if you get a headache. There are many articles written on the subject, but they often have confusing terminology and long lists of various legal documents most of the public have never heard of. This turns many people off of an important subject that they need to consider.

On the other hand, most people need to know only enough of the basics of estate planning so they know enough to hire a good estate planning attorney.

Recently, Realtor.com published a list of those basics in “7 Things Your Estate Planner Wants You to Know Before You Die,” including:

You are going to die someday so you need to think about it and think about what will happen to your property when you do.
If you die without an estate plan, sorting out your estate will be far more complicated for your family than it needs to be. This is true even if you do not have many assets.
One of the first steps to estate planning is simply to take an inventory of your important assets.
Naming a qualified executor to oversee your estate is one of the best things you can do to make sure everything goes well for your family.
If you own a home, the property tax issues can be complex after you pass away. It is important that you have the advice of a local estate planning attorney.
After you get an estate plan, you need to review it periodically to make sure everything is still up to date.
Should you ever need long term care in a nursing home, you may not need to sell your home to pay for it. However, long-term care planning is complex, so consult with a qualified elder law attorney.

Reference: Realtor.com (Aug. 28, 2016) “7 Things Your Estate Planner Wants You to Know Before You Die”

September 12, 2016

Trust Basics

When looking for estate planning advice people often see suggestions that they should create a trust. That is only helpful if they know what a trust is.

The Internet is full of estate planning advice most of which tends to suggest that people should get a trust. The benefits of doing so are often explained in detail.

Nevertheless, before people can get to the point where they can adequately assess the benefits of a trust for their own circumstances, they first need to know what a trust actually is.

That is not explained as often.

While it might seem obvious to some people, other people do not really know what a trust is. Recently, the Motley Fool discussed some of the basics in “What Is a Trust Fund?”

A classic trust is very simple. Person A (the grantor) creates a legal entity and gives it assets that are managed by Person B (the trustee) for the benefit of Person C (the beneficiary). Those are the three basic elements of every trust.

They can be complicated. For example, a trust can have multiple Persons A, B or C. In some types of trusts a single individual can play more than one role. Despite those complications, the basic structure of the trust does not change.

While there are many different types of trusts, including family, revocable, irrevocable, and many more, they all follow the same pattern. Trusts are a way to pass assets on to beneficiaries in a way through which those assets are independently managed by a trustee.

If you would like to learn more about trusts and whether one is right for you, contact an estate planning attorney.

Reference: Motley Fool (Aug. 28, 2016) “What Is a Trust Fund?”

August 26, 2016January 28, 2024

Estate Planning for Ranchers

If you own a ranch, then having an estate plan is essential to making sure that it stays in your family. Getting a plan does not have to be as complicated as you might think it is.

Some of the most important legal documents a rancher can have are the documents that make up the rancher’s estate plan. They are the documents that determine how the ranch will be passed on to the next generation or whether it will have to be sold.

Despite this, many ranchers put off getting estate plans, if they get them at all.

That is unfortunate because estate planning does not have to be very difficult for ranchers if they break the process down into simple steps, as the Huntsville Item explains in “Estate planning and the family ranch.”

The steps are:

Start a conversation with your family about what to do with the ranch after you pass away. This will help determine which of your relatives might want a stake in the ranch and make sure that everyone in the family is on the same page.
After talking with your family, decide what your objectives are for the ranch and what you would like to see happen to it.
Gather all of your important financial documents.
Choose an experienced estate planning attorney that you are comfortable with and have the attorney draw up an estate plan that meets your objectives.
After your estate plan is complete, make sure that you keep it updated whenever circumstances change.

A qualified estate planning attorney can help you keep the ranch in the family or otherwise pass without a hitch.

Reference: Huntsville Item (July 31, 2016) “Estate planning and the family ranch.”

August 25, 2016June 14, 2025

Last Minute Estate Planning

If you have avoided getting an estate plan and are now facing the prospect of death, it might not be too late for you to get a Maryland estate plan that protects the interests of your family.

Ideally, you should get an estate plan long before you become terminally ill. However, not everyone really thinks about the prospect of their own death until it is imminent and that is somewhat understandable. When faced with the prospect of death do not assume you do not still have time to get an estate plan.

There is still be time to do some planning to help your family, consult Profit Law Firm to find out how.

Recently, NASDAQ listed some estate planning tips for people in that situation in “6 Estate Planning Tips for Those Approaching Death,” including:

Make sure to get powers of attorney in place so when you become incapacitated someone else will be legally able to handle your affairs.
Come up with a plan for your estate to avoid probate with the help of a Maryland estate planning attorney and make sure all of your assets are titled appropriately.
You may want to consider swapping assets for capital gains tax purposes, but only do so after talking to your attorney to make sure you do everything correctly.
It might be a good time to make donations to charities you support.
Review any life insurance policies you have to make sure the beneficiary designations are still appropriate.
Talk to your attorney about the best strategies to avoid income and estate taxes for your family. This could include avoiding income in respect of decedent issues.

Reference: NASDAQ (July 26, 2016) “6 Estate Planning Tips for Those Approaching Death,”

August 24, 2016

You Cannot Avoid Paying for Maryland Estate Planning

You might think that you do not really need an estate plan so there is no point in spending money to get a proper one drawn up. However, that just means that your estate will have to pay more later to do the planning that you did not do.

Estate planning is never free. If you go to an experienced Maryland estate planning attorney, then you have to pay for the attorney’s time to create a proper estate plan for you. Some people would rather not pay, so they do not get estate plans. Instead, they expect that their family and the courts will be able to easily handle everything after they pass away.

In reality, they actually will “pay” for an estate plan, as the Green Bay Press-Gazette points out in “Estate planning: Pay now or pay later.”

The truth is that it is far more expensive not to have an estate plan than to have one. If you have to pay Maryland estate taxes because you did not have a Maryland estate planning attorney, you will pay much more in taxes than you would have ever paid the attorney. If your estate has to hire an attorney to sort out your affairs after you pass away and go to court to get a judge’s approval for everything, then that is going to cost a lot more than going to an attorney and getting an estate plan.

Not having an estate can cost your estate in other ways as well. For example, you may have to pay a higher estate tax bill and miss out on the best, cheapest ways to transfer wealth from one generation to another.

Actually getting an estate plan for most people is much easier and cheaper than you probably assume it is. There is no reason not to go ahead and get one, especially since not doing so will just cost your family more money later. Consult Profit Law Firm about creating a Maryland estate plan and save money on Maryland estate taxes.

Yes, you do tend to get what you pay for.

Reference: Green Bay Press-Gazette (Aug. 1, 2016) “Estate planning: Pay now or pay later.”

August 17, 2016October 25, 2023

Is a Trust Appropriate?

Wills and trusts are the two pillars of estate planning and determining how assets will be passed on to future generations. You need to know whether or not you need one, the other or both.

The two main ways that people pass their assets to their heirs are through a will and through a trust. They both serve the same basic function of transferring assets—but in very different ways. Wills normally go though probate court while trusts are handled privately. It is important to know if you need one or the other. For wills, that is a simple question to answer. Everyone needs a will. Even if you have a trust, you will need a will to deal with any assets inadvertently or intentionally left out of the trust. Trusts are more complicated. Recently, the Brainerd Dispatch discussed some considerations about whether a trust is necessary in the article, “Commentary: When does it make sense to add a trust to your estate plan?” Things to consider include:

Privacy – Wills are normally made available to the public, but most trusts can be kept private. If you do not want other people to know the details of your estate, then a trust is what you need.
Property in Multiple States – If you have property in more than one state, then a trust might be best. Otherwise, your estate may have to be probated in each state to deal with the property.
Control – Trusts can offer you much greater control over how your heirs will inherit your assets.
Charity – Trusts are generally a better tool for giving part of your estate to charity. If set up properly, you can even get a tax break now, keep control of your assets and have the assets go to charity after you pass away.

For help determining what is necessary for your situation, consult an estate planning attorney. For consultation on your situation contact Profit Law Firm, PLLC.

Reference: Brainerd Dispatch (July 23, 2016) “Commentary: When does it make sense to add a trust to your estate plan?”

August 11, 2016February 15, 2024

Maryland Estate Planning for the Demographic Shift

The next few decades will see a tremendous transfer of wealth from one generation to the next and then to the next. It is important to have an estate plan to make sure that everything goes smoothly within your family.

In the next few years an extraordinary amount of wealth is expected to be transferred to the Baby Boomer generation by their parents. It is then expected that the Baby Boomers will be retiring in ever greater numbers and passing that wealth on to their children as Huffington Post Canada discusses in “Estate Planning For A Significant Demographic Shift.”

While the article is about Canada, the exact same shift is going to occur in the U.S.

This demographic shift and the transfer of wealth it will bring makes estate planning more important than it has even been at any previous point in human history. Americans are more prosperous than any other people in history. Billions of dollars’ worth of real estate and financial instruments will be changing hands between generations.

Families that have not planned regarding how that generational transfer will occur risk losing a lot of wealth, if not all their wealth, as the legal system sorts out who gets what. In Maryland, in 2016, if you leave more than $2 million to your heirs, without estate planning, you will pay estate taxes on every dollar over that threshold. And the $2 million includes the total value of your home, regardless of your mortgage. With the cost of housing, life insurance policies or retirement accounts easily could make you eligible forMaryland estate taxes. Your children may have to sell the family home you leave without careful estate planning. To learn strategies for leaving more to your children and less to Maryland estate taxes contact my office.

Since you know the transfer of wealth will occur, make plans for it. Decide now how your assets will be transferred to your children and other heirs.

Planning for it will take a lot less time and cost a lot less money than not planning for it and letting the next generation sort it out with the assistance of probate courts.

Reference: Huffington Post Canada (July 11, 2016) “Estate Planning For A Significant Demographic Shift”

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Tag: Maryland Estate Planning