A durable power of attorney is one of cornerstones of estate planning. It is critical that a trusted individual or entity be named to make financial decisions on your behalf should you become unable make these decisions on your own. Since this is such an important decision, it is also important to understand that you do have the right to revoke the power of attorney at any time, and execute a new document to change your 'agent.' To revoke a power of attorney, you should put it in writing, it is … [Read more...] about Can You Revoke a Durable Power of Attorney?
Three Estate Planning Tools to Avoid Guardianship
Guardianship is a court proceeding in which a surrogate decision-maker is appointed to make either personal and/or financial decisions for an adult that lacks the capacity to make these decisions on their own. It is often used as the last resort in helping an elderly loved one who can no longer handle their own affairs. There are no winners when it comes to guardianship cases, and it is in everyone’s best interest to take steps to avoid the possibility of a court-ordered guardianship in the … [Read more...] about Three Estate Planning Tools to Avoid Guardianship
Trusting a Professional Trustee
A trust can be a powerful estate planning tool, and you need to make several decisions when creating a trust, including choosing a Trustee to manage the property held by a trust. But a Trustee does not necessarily have to be a family member or a trusted friend. To review how a trust works: When you create a trust you transfer assets such as a real estate, stock or money to the trust. These assets are then managed for the benefit of the Beneficiaries by a Trustee. While a Grantor, the … [Read more...] about Trusting a Professional Trustee
Transferring Property Without Probate
Many estate planning tools are set up to allow property to avoid probate. Why? Probate Court can not only tie up property for months, even years, but it can rack up fees and costs as well. Property that avoids probate is called non-probate property, and it generally falls into three different categories: Transfers by Title: Assets transferred by title include property owned in joint tenancy with the right of survivorship, such as a house that is jointly owned by a married couple. It is … [Read more...] about Transferring Property Without Probate
Estate Planning and the Rights of Survivorship
A common phrase used in estate planning is the ‘rights of survivorship,’ particularly when it comes to owning real estate. But do you know what this phrase actually means in plain English? The ‘rights of survivorship’ is the ownership of property by two or more people in which the survivors automatically gain ownership of another’s interest upon their death. In the case of more than one survivor, the decendent's share is divided among the survivors. For example – Harry and Sally are … [Read more...] about Estate Planning and the Rights of Survivorship
Medicaid Changes Likely as Congress Debates Debt Ceiling and Spending
The debate in Washington D.C. regarding the debt ceiling will continue, with ramifications for programs such as Medicaid. Medicaid was designed to offer financial support to those who need long term care – if, that is, they qualify – meaning they have a certain maximum level of income and assets. There are “countable” assets, then there are “exempt” assets such as one’s home. There is a primary budget-cutting stage in Congress that will not affect Medicaid, but the second stage, which has a … [Read more...] about Medicaid Changes Likely as Congress Debates Debt Ceiling and Spending
Managing Those Documents and Records: A Pain or a Blessing?
Whether it’s for you or for your loved ones, managing those endless documents and records that relate to an estate can be quite the challenge. Most of us don’t like the task, but good record keeping will be a blessing when that day comes: a death; disability; maybe a divorce affecting you or a loved one or a son or daughter. These days, managing important records and documents can be more difficult than in the past. With many transactions taking place online today – protected by user names … [Read more...] about Managing Those Documents and Records: A Pain or a Blessing?
Four Items a Will Should Have
Creating a will is the cornerstone of estate planning, don’t underestimate the need for a valid, legal will. It is necessary, even if you have a living trust, to name an executor for your estate, to name a guardian for any children under the age of 18 and to distribute or ‘pour over’ any property not owned by a living trust. The popularity of do it yourself will kits and forms has increased over the past decade, but there are four things that may be missing from this estate planning document … [Read more...] about Four Items a Will Should Have
The Living Trust as a Flexible, Protective Estate Planning Tool
Most people have heard of “trust funds” but many of us don’t understand what a Living Trust is, how it works, who can benefit, and how it needs to be managed. The Living Trust is a legal tool within the family of Estate Planning. Though it costs more to create a Living Trust as compared to a Will, a Living Trust offers many more advantages than a Will, both to the trustor (the one who creates the Trust) and to the trustor’s intended heirs. As you may know, when a Will is the primary legal … [Read more...] about The Living Trust as a Flexible, Protective Estate Planning Tool
Understanding Probate: When It’s Triggered, When Not, and How to Avoid Probate
Probate, or the settlement of an estate in the courts, is triggered upon the death of a person who has a Will as his or her Estate Planning legal tool. Probate also happens when there is no Will. However, there are cases when Probate is not automatically triggered. For example, when there were legal documents in place which will keep the estate out of Probate. The most common Estate Planning documents that help people avoid Probate fall under the category of Trusts. However, avoiding … [Read more...] about Understanding Probate: When It’s Triggered, When Not, and How to Avoid Probate
