5 Vital Estate Planning Documents that Protect Your Legacy

Estate planning is not something most people like to think about, but due to the COVID-19 pandemic, many are creating or updating their wills and other important documents. Although you may believe that a will is sufficient for settling your affairs, it is only one piece of the estate planning puzzle. Having a lawyer help you create the following four vital estate planning documents can ensure your rights are protected and your legacy lives on as intended. 

1. Last Will & Testament

A will enables you to dictate how your property and assets will be distributed to beneficiaries following your death. It also gives you the opportunity to name an executor who will manage and settle your estate. If you have minor children or care for an adult with special needs, you can also appoint a guardian for them in your Will. 

When someone dies without a Will, things can become complicated for their loved ones. The probate court will appoint an administrator to handle your estate, and may also appoint guardians for any dependents. Your assets will be distributed according to intestate succession laws, which means your property may not be distributed according to your wishes. The settling of your estate through the probate process can take significantly longer without a Will. If you already have a last Will and Testament, make sure to update it regularly, especially following divorce or the death of a spouse or other loved one. 

2. Living Trust

Alternatively known either as a “Revocable Trust” or “Irrevocable Trust,” a Living Trust is a separate legal entity that is created to hold assets. Typically, this is done to prevent these assets from going through probate, to decrease tax liability, and/or for personal or family reasons. If the Living Trust is “revocable,” you can change the trust terms, transfer property in and out of the trust, or end the trust altogether while you are alive. Upon your death, the named trustee may continue to administer the assets in the trust, or terminate the trust, depending on your Trust instructions.

3. Advance Medical Directive

Also known as a living will, an “Advance Health care” Directive allows you to specify your wishes for end-of-life decisions such as CPR,  life support, and organ donation. Unexpected illness or incapacitation means that your family may have to make medical decisions without knowing what you would have wanted. This can lead to unnecessary conflict and emotional distress for your loved ones, and may even result in them making decisions that do not align with your wishes and values.  It also ensures that medical providers will follow your wishes in determining the kinds of medical treatment you receive.  In the age of COVID-19, Advance Health Care are more important than ever.

4. Power of Attorney for Finances

Another important issue to address is who will take care of your financial matters if you become incapacitated. In a Power of Attorney for finances, you can name an agent who will handle tasks such as paying bills, managing bank and investment accounts, buying and selling real estate, stocks, bonds, and other assets, filing and paying taxes, and other financial matters. Appointing a person you trust to make these decisions is crucial. If you are uncertain about who to name as your agent, an attorney can provide an objective perspective on who may be the best person to handle your health care and/or finances if you are unable to do so.

If you need assistance with estate planning or other legal matters, click here to contact an experienced attorney and get started.

This blog was originally posted on https://www.pa4law.com/5-vital-estate-planning-documents-that-protect-your-legacy/

Read More

Think You Understand Inheritance Rights? Here’s What You Should Know.

Many people believe they understand inheritance rights, but very few (outside of the legal and estate planning professions) actually do. This is because laws regarding inheritance are complex and vary from state to state. Below are the five common myths about inheritance rights that our Wills lawyers debunk:    

Myth 1: I can leave my property to whomever I choose.

It’s true that, in your Will, you can leave your property to anyone you choose. However, inheritance rights may override your wishes as stated in your Will. This is particularly true when it comes to a spouse who survives you. Depending on the state in which you reside, a surviving spouse is legally entitled to one third to one half of your property even if you have not provided for him or her in your Will. The spouse would have to contest the Will, but it is likely that a state court will award the percentage of the estate allowed by that state’s inheritance laws.

Myth 2: My surviving spouse will automatically inherit all of my property.

As you can see in the answer to Myth 1, the words “automatically” and “all” are problematic. A surviving spouse does have inheritance rights, but if the spouse is not named in the Will, he or she will have to contest the will to receive an inheritance. This is an important reason to make sure you have a Will. Moreover, if you wanted your surviving spouseto inherit your entire estate, you would need to specifically mention this in your will.

Myth 3: My ex-spouse cannot inherit my property.

This is not true if you have an outdated Will that leaves an inheritance to your now-ex-spouse. Be sure to meet with your estate planning attorney whenever you experience a major life event like a divorce, to make sure your will is entirely up-to-date and reflects your current wishes, not those of 10 or 20 years ago.

Myth 4: My children and grandchildren have a right to inherit my property.

The fact is that your children and grandchildren do not have a legal right to inherit your property. To ensure that they will inherit, you must name them as beneficiaries in your Will. Again, make sure your Will is up-to-date; a child or grandchild may have been born after your Will was originally written. Let us assume your will names your older children as beneficiaries but does not mention the younger one(s) who were born or adopted after the Will was written. Most states will allow a child to contest a Will if it appears the child was left out by accident. A probate lawyer will tell you this means the child must go to the expense of time and money to contest the Will.

Myth 5: To disinherit a child, I just leave him or her out of my Will.

Disinheritance is specifically addressed by state laws. Let us say that you have named two children as beneficiaries and do not name a third child. If that child contests the Will, the state will not assume the child is disinherited. To disinherit a child, you must state in your Will that you are not leaving assets to this child. Another method is to leave just a small amount to the disinherited child so it is clear the child was not left out by accident.

Clearly, you need the help of an experienced estate attorney to navigate your state’s inheritance laws. Set up a consultation today to create or review your estate plan.

This blog was originally posted on https://www.pa4law.com/think-you-understand-inheritance-rights-heres-what-you-should-know/

Read More