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Author: Profit Law Firm

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You Actually Do Need a Will

Bigstock-Attractive-Mixed-Race-Couple-P-9992345[1]Some people today suggest that not everyone needs a will because of the many other methods of transferring assets. However, everyone would benefit by at least having a simple will.

There are many different ways to transfer assets after you pass away. You can create all sorts of different trusts. You can title property as joint owners. You can make financial accounts payable on death.

These are all ways to transfer assets that would override any will that you write. Because all these different tools are available, some have suggested that not everyone needs a will today.

In response, however, Forbes notes in “Do You Really Need A Will?” there are still many reasons to have a will.

Anyone with minor children should have a will because, in most jurisdictions, it is the document through which you can appoint the guardian of choice for your children. Other instruments can be used to provide assets for a child, but only a will is available to state who should take care of the child.

Even if you do not have a child, you probably have personal property that is not easily handled in other legal instruments. If you want to have a say in who gets that property, then a will is necessary to do so.

That there are other ways to transfer assets after you pass away is wonderful and an estate planning attorney can help you navigate through the ways to find the best options for your unique circumstances.  Call Profit Law Firm to find the best way to transfer assets for your family.

Nevertheless, a will is still necessary for things that cannot be included in those documents. For that reason expect your estate planning attorney to prepare a will for you, even if it is a very simple one.

Reference: Forbes (Aug. 31, 2016) “Do You Really Need A Will?”

 

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Protect Access to Your Social Security Account

Elder Couple With BillsIf you receive Social Security benefits, it is very important that you that you understand how to protect your Social Security account from thieves.

Recently the Social Security Administration introduced a two-step verification process for access to Social Security account information online. Unfortunately, it required people have access to text messaging, which many senior citizens do not have.

The system had to be temporarily shelved.

That means that Social Security account information is still vulnerable according to Computer World in “Trusting the Social Security Administration?”

The problem stems from Social Security requiring that all benefits be paid by a direct deposit. Identity thieves have been known to create an online account with Social Security before a retiree can do so. This gives them control of the account and they can change the account into which benefits are deposited.

As a consequence of this scam, it is very difficult for retirees to fix the problem as they do not know the login information since they did not create the account for themselves. This has been a known vulnerability for a few years. Attempts to address the problem have not had much success.

One way to help protect yourself is to make sure you create an online account with the Social Security Administration before any identity thieves have a chance to do so. However, that will not protect you should someone gain access to your account later.

For the most protection it is suggested that you block all online access to your Social Security account, which you can do at any time.

Reference: Computer World (Sept. 4, 2016) “Trusting the Social Security Administration?”

 

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Social Security in Foreign Countries

Whether you are currently working in a different country or planning to move to one after you retire, it might still be possible for you to receive Social Security benefits.

Increasingly more and more Americans are working in foreign countries or they are planning to live in one after they retire. In a globalized economy, this trend can be expected to continue.

Americans in either situation need to know what their rights are in regard to Social Security benefits and any benefits they might have in a foreign country’s retirement program.

Recently, Public Opinion gave a quick rundown in “Social Security: Retiring overseas? What you need to know to get benefits abroad.”

Bigstock-Large-Mixed-Race-Family-2589417_(2)[1]If you have worked in the U.S., paid into the Social Security program and worked in a foreign country with a public pension program, then you may be eligible to combine payments from both programs when you retire.

The U.S. has treaties with 25 other nations that allow for this. The details differ depending on the country in question and there are provisions to make sure people cannot draw full benefits from both countries and get a windfall.

If you plan to move overseas after you retire, then you might still be eligible to receive your Social Security benefits. Most American citizens should be able to receive benefits wherever they go.

On the other hand, it is much more complicated for resident aliens who have lawfully paid into the system and wish to leave the country after retiring.

Anyone in that situation should seek the advice of an elder law attorney.

Reference: Public Opinion (Sept. 4, 2016) “Social Security: Retiring overseas? What you need to know to get benefits abroad.”

 

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Social Security Is Not Going Anywhere

Many people hear dire predictions about the future viability of Social Security and assume that the program will end before they can take any benefits. If this results in a failure to educate themselves about the program, it is a big mistake.

People have been predicting the end of Social Security from almost the very moment it was started. President Franklin D. Roosevelt was keenly aware that future generations might seek to end the program and for that reason he insisted that measures be put in place to make it politically difficult for any future politicians to scrap Social Security.

That is why, for example, benefits are not subject to means testing. Even the super wealthy can draw benefits. The idea was to make people view benefits as a right and not as just charity for the poor.

Despite that it is still common for people to believe that Social Security will be gone before they are eligible to draw benefits.

However, as the Albuquerque Journal points out in “Social Security likely here to stay, so get educated” the program is not going away anytime soon.

In fact, both Hillary Clinton and Donald Trump have pledged not to cut benefits or increase the retirement age as part of their Presidential campaigns.

What this means is that, despite warnings about the future of the program and the Social Security trust fund running out of money, you should plan as if the program will be around when you are ready to draw benefits. It is important to educate yourself about how benefits work and when you should start receiving them.

Learn your options and plan accordingly.

Reference: Albuquerque Journal (Sept. 6, 2016) “Social Security likely here to stay, so get educated”

 

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Social Security Is Not Going Anywhere

Many people hear dire predictions about the future viability of Social Security and assume that the program will end before they can take any benefits. If this results in a failure to educate themselves about the program, it is a big mistake.

People have been predicting the end of Social Security from almost the very moment it was started. President Franklin D. Roosevelt was keenly aware that future generations might seek to end the program and for that reason he insisted that measures be put in place to make it politically difficult for any future politicians to scrap Social Security.

That is why, for example, benefits are not subject to means testing. Even the super wealthy can draw benefits. The idea was to make people view benefits as a right and not as just charity for the poor.

Despite that it is still common for people to believe that Social Security will be gone before they are eligible to draw benefits.

However, as the Albuquerque Journal points out in “Social Security likely here to stay, so get educated” the program is not going away anytime soon.

In fact, both Hillary Clinton and Donald Trump have pledged not to cut benefits or increase the retirement age as part of their Presidential campaigns.

What this means is that, despite warnings about the future of the program and the Social Security trust fund running out of money, you should plan as if the program will be around when you are ready to draw benefits. It is important to educate yourself about how benefits work and when you should start receiving them.

Learn your options and plan accordingly.

Reference: Albuquerque Journal (Sept. 6, 2016) “Social Security likely here to stay, so get educated”

 

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The Role of an Estate Planning Attorney

Bigstock-Financial-consultant-presents--14508974[1]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”

Suggested Key Words: Estate Planning Attorney

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A Trust Is Worth It


Bigstock-Vintage-brass-telescope-on-ant-44347372[1]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”

 

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Estate Plans That Work

Bigstock-Senior-Couple-8161132[1]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”

 

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What You Need to Know About Estate Planning

Business_meeting[1]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”

 

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Trust Basics

Bigstock-Financial-consultant-presents--14508974[2]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?”