Archive for the ‘Estate Plan’ Category

Another New Year! Time to review your estate plan!

Tuesday, January 1st, 2013

Happy New Year! I hope that everyone has a great and wonderful 2013.

And, to get things off to a good start, I’d like to suggest that you review your estate plan to make sure it is up to date and has taken into account all of life’s changes since you created the previous version.

New members to the family? Some members no longer with us? Perhaps a new pet that you want to make sure is taken care of if you are not able to care for him or her yourself? Have you become involved in a new charitable organization that you think deserves a gift? Perhaps the person you have named as the agent under your Power of Attorney is no longer capable or willing to do the job? Perhaps someone in your family has received a college degree that would make them a better fit for the job of executor or agent? Perhaps you have new acquisitions that need to be re-titled in the name of your trust? Planning a job change this year? Perhaps retirement? Is your health status changing?

This is a good time to take a few minutes to just think about these ideas. And if you think your estate plans needs to be updated, please give us a call. We’d be glad to help!

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

The Difficult Talk About End of Life Issues

Friday, November 23rd, 2012

When my kids were little, I worried about ‘the talk’. You know…the one about the ‘birds and the bees’. Like most things in life, it wasn’t as bad as the worry beforehand!

Now is the time to have another type of difficult talk. This is the talk about end of life issues. What sort of medical treatment do you want in case you are found to have a terminal disease? Who should be in control of your finances in case you develop Alzheimer’s or other forms of dementia? Who do you want to take care of your kids if both parents are hurt and not capable of taking care of them?

I wrote a post some time ago about whether or not you need a Power of Attorney. This was followed by a post on who you should name as your Power of Attorney. Yes, these posts are pretty old, but they also still make good sense, just like some good advice such as “don’t spend more than you make”.

Another difficult topic for ‘the talk’ is how to handle medical decisions if you are not able to make those decisions yourself. Again, I had a previous post about making an Advance Directive that you can find here.

The holidays are a time when families get together and it might be a good time for ‘the talk’.

I know people don’t want to dwell on unpleasant things and the incapacity or death of a loved one is unpleasant. But I have found through personal experience that it is so much easier to go through those difficult times when I knew what my loved one wanted to have happen.

Sometimes it might be easier to have this talk with an outsider. As an estate planning attorney, I have this conversation with clients and families all the time.

No, this isn’t because I like being ghoulish. I do this because this type of talk can give the gift of peace of mind to the entire family. Things are always easier to face when we have a plan.

If you already have these documents in place, this is a good time to review them to make sure your wishes are current. Sometimes we change our minds and that’s ok. And sometimes we have the documents in place but haven’t discussed them with the rest of the family. Now might be a good time for that talk!

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

Do you have a blended family?

Thursday, February 2nd, 2012

My parents were divorced and my dad remarried a woman who had children, so I come from a ‘blended’ family. I am also divorced from my children’s father and I’m now married to a man who has children from his first marriage. All to say that I know what it’s like to live in a ‘blended’ family.

I’ve heard that the schools now have projects to trace your family ‘bush’ instead of your family ‘tree’. It’s a sign of the times.

But, the laws haven’t quite caught up with society.

A step-child, even if they have been in your household and you have acted as their parent for their entire lives, is not considered your child for inheritance purposes. And problems can arise when a current spouse and children from a previous relationship all want to take ‘their rightful portion’ of an inheritance.

There are ways to take care of the ones you love by talking to an Estate Planning attorney and making sure that your estate is used the way you want. This is important for everyone.

It is even more important if you have a blended family.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

Is an adopted child considered blood line in a will?

Sunday, November 13th, 2011

I found this question on the internet awhile ago, and thought that others might have the same question themselves.

In this case, there wasn’t a lot of information other than the fact that this man had adopted his wife’s child, but wanted to make sure that all of his inheritances in his Will would pass only to his bloodline.

Legally, as soon as you adopt a child, it is considered YOUR child for all intents and purposes. By law, there is no distinction between a child by blood and a child by adoption. Generally, when the adoption is finalized, the child loses the legal connection to the birth parents and gains the legal connection to the adoptive parents.

This is different than the status of a step-child. A step-child is not considered your child for any legal action, even though you were the parent for the child’s entire life.

There are ways of drafting your Will, Trust or other estate planning documents to create your desired end result.

You can disinherit any of your children by putting the language into the document. It doesn’t have to be an adopted child. I have had clients who wanted to make sure that one of their children did not get anything when they died because of things that child did, or perhaps they have already given one child more than his or her share and now wanted to make sure that what was left would go to another child.

Some people also give different amounts to different children by naming them specifically along with a percentage of the estate value

In this man’s case, he could write his Will so that his adopted child did not inherit something that he felt strongly should be kept in the blood line.

I’ve also had clients who wanted to make sure that their step-children were treated the same as their biological children. I had one client who wanted to make sure that their son’s step-daughter was treated as any of their other grandchildren.

This is relatively easy to accomplish with the right drafting, but you need to make sure it is done correctly or you will not get your desired result. Even worse, you might end up with a document that causes your family to spend lots of dollars, even the entire value of your estate, in litigation to fight over what you really meant when you wrote that you wanted your things to go to ‘your bloodline’. This is one good example of why it is important to go to an Estate Planning professional instead of trying a ‘do it yourself’ plan that you find in the store, on software, or on the internet.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

What is a ‘Life Estate’?

Sunday, September 11th, 2011

I had a question this week from a potential client who knew that her brother was allowed to live in her deceased mother’s house until he died and then the house was supposed to be divided equally between the remaining sisters and brothers. This arrangement is called a ‘life estate’, and it means that the brother has lawful possession as long as he is alive. The other sisters and brothers are called ‘remaindermen’.

A more common example is when a parent (for our example we will say the mother) dies leaving a spouse and children. The spouse later remarries and wants to make sure that his new wife will not need to move out of the family home if something should happen to him. He grants a life estate to his new wife with the remainder of the ownership going to his children at her death.

This sounds like a simple way to handle things and you may wonder why it isn’t used more often.

One problem is that the life estate ends when the named person dies. This means that if the named person is sick or in a nursing home, the remainder owners do not have the right to do anything with the property until the named person dies.

There is also the problem that a person with a ‘life estate’ can only give or sell what he owns. That means that he can’t sell the house to anyone else, or make arrangements for someone else to live in the house either. This has caused problems like the situation where an uncle had a life estate in the family home and put in his Will that the home should go to his favorite niece. She thought it was hers, except that the uncle didn’t have ownership to give! Once he died, the house belonged to the ‘remaindermen’.

In the case of the person who called our office, the brother had gotten married and the family wanted to know if his wife would inherit the house if the brother died. (the answer is no…because once he died, his life estate ended).

Then, there is the problem of who is supposed to pay the bills for the house. You may think that the person living in the house should be paying the bills. But what if the house needs a new roof that is expected to last 30 years? Should a 90 year old person with a life estate be required to put a new roof on the home, even though it is unlikely that he will be in the home long enough to use it all?

A Life Estate can also be set to terminate on the death of someone else. For example, let’s suppose mother has four children. Son 1 is disabled and cannot live on his own. Daughter 1 is not disabled and has agreed to take care of son 1. Son 2 and Daughter 2 are both married and living in another state with their respective families. Mother wants to make sure that Daughter 1 has a home in which to care for Son 1 so she grants a life estate to Daughter 1 for so long as Son 1 is alive, with the remainder being divided equally between the 3 remaining children when Son 1 dies. What this means is that Daughter 1 will probably need to move out of the home after Son 1 dies because otherwise she would need to be able to purchase the other 2/3 of the house from her remaining siblings.

I’ve even seen a case where a cat lover gave a life estate in her home to her friend for so long as her favorite cat was alive so that the friend could take care of the cat and the cat would not need to move to a strange house.

As you can see, a Life Estate can be a useful tool in your estate planning arsenal, but only if it is planned correctly.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.