The Benefits of Hiring an Estate Planning Attorney

It is easy to put off creating a will and other estate planning tools such as health care directives, powers of attorney and trusts. Also, it is easy to select an online provider to create the documents – but neither of these is your best option.  There are five outstanding reasons to hire an estate planning attorney now to create your estate plan and the related documents.

1.    Your will and other important documents will be created by an experienced professional. Think about those fill-in-the-blank documents that you find online. They are not much more than a type of form letter. When you hire an attorney, you can rest assured that the documents are customized to your specific goals and wishes. Your attorney will help you with any important steps that many people struggle with, such as selecting an executor or arranging guardianship for minor children. To be official, your documents must be witnessed and notarized, and your attorney will arrange this for you.

2.    Your estate plan will comply with laws in your state. Laws regarding probate and trust differ from state to state, and they do change over time. Your experienced estate planning attorney knows your state laws and stays current with changes. This offers you peace of mind that your documents are in compliance with your state.

3.    Your documents will express your exact wishes in the correct legal language. It should be no surprise that the correct legal language for estate documents can be confusing. Those who take a DIY approach to wills and other documents do not know for sure if their documents truly state what they intend them to state. And when will any errors be discovered? After your death, most likely, when the documents cannot be corrected. On the other hand, your attorney will thoroughly discuss your goals and wishes to clarify them. Your estate planning attorney already knows the correct legal language to express your wishes and ensure the documents accurately reflect those wishes.

4.    Keep your estate plan up-to-date. A proper estate plan looks years ahead to the end of your life, and it cannot predict every change or change-of-heart that might occur. These should be living documents that are revisited at appropriate times and altered as your goals and wishes might change. Your attorney will provide a thorough review and can advise you about what changes would be best and in what form the changes should be made. This presents the possibility of a codicil or amendment versus a new estate plan. Your attorney will guide you in a way that no DIY provider can do.

5.    Someone you and your family can trust. When you have a relationship with an estate attorney, you have a trusted resource who can answer your questions. Most importantly, your attorney is someone your family can turn to, should you become incapacitated, or after you have passed away. While your loved ones might be upset and grieving, your estate planning attorney is someone to guide them through estate settlement.

An estate planning attorney is far more than a provider of services. He or she is a professional who is prepared to “go the distance” at your side. Don’t delay the important task of creating your estate plan. Schedule a consultation with an estate planning attorney who will give you peace of mind.

This blog was originally posted on https://www.pa4law.com/the-benefits-of-hiring-an-estate-planning-attorney/

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How Durable Power of Attorney for Finances Works in Pennsylvania

A durable power of attorney for finances enables someone you have designated to manage your finances when you are no longer able to make financial decisions. A family estate planning attorney will tell you that this document is very important to your family, whether they know it or not. Should you become incapacitated without a durable power of attorney for finances, your loved ones will likely end up in court, asking a judge to allow one of them to pay bills, deposit checks, and manage your financial matters.

The person you designate with a durable power of attorney is called your agent (or attorney-in-fact). You may want to consider your agent as your backup and permit him or her to manage your finances when you are mentally capable, but unavailable due to traveling or some other circumstance. Spouses sometimes do this for one another.

In Pennsylvania, this means your agent is empowered to sell your real estate or other property without informing you or getting your permission.

When does it take effect?

Drafting this document is best handled by an attorney for will preparation. He or she can draft your durable power of attorney for finances, so it goes into effect when you sign it.  Or, the document may stipulate that the power of attorney becomes activated only after a doctor has certified that you are incapacitated. Called a “springing” power of attorney because it springs into effect after a doctor certifies that you cannot make your own decisions.

This might sound like the best approach, but it does present these potential problems for your agent:

•    Delay. It might take days or weeks for a doctor to certify your incapacity, and during this time your agent cannot manage your finances.

•    HIPAA/Privacy issues. Your agent needs proof that you permit the doctor to legally release information about your condition. Make sure you have signed a release form prior to incapacitation.

•    Definition of incapacity. This definition is not clear-cut. Your document will need to clearly define incapacity.

What your agent does

In your durable power of attorney, you can define your agent’s powers as to whether they are broad or limited. Some of the powers you assign may include:

1.    Paying your personal and household expenses;

2.    Buy, sell and mortgage real estate;

3.    Collect benefits from Social Security, Medicare, and others;

4.    Invest your money in the stock market;

5.    Do your banking and other financial tasks;

6.    File tax returns and pay taxes;

7.    Run your business;

8.    Manage your retirement savings and accounts.

There are safeguards, as the agent is obligated to act in your best interests, keep accurate records, maintain your property separately from his or her own, and avoid conflicts of interest. As long as you are not incapacitated, you may revoke a durable power of attorney at any time.

When does it end?

If you do not revoke it, a durable power of attorney stays in effect during your lifetime. When you pass away, the durable power of attorney ends. If you want your agent to handle your finances after your death, you would need to name the agent as the executor of your will.

Read more on why you need a will here.

Establishing a durable power of attorney is an important part of estate planning. Be sure to schedule a consultation soon with Perna & Abracht LLC.

 

This blog was originally posted on https://www.pa4law.com/how-durable-power-of-attorney-for-finances-works-in-pennsylvania/

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What does a Health Care Directive Consist of? Here is the Info.

Everyone has the right to choose his or her own health care interventions and treatments. Yet sometimes an individual is comatose or has dementia or some other debilitation and cannot make health care choices. In this case, a health care directive will express to medical personnel the wishes of the individual when he or she was still able to make health care choices.

A health care directive refers to not just one document, but several. If you don’t have a health care directive in place, consult with a lawyer that handles wills as soon as possible. Your loved ones may thank you, as you will be saving them from some very difficult choices at a later time.

Your Living Will

This is sometimes called a health care declaration. It is not the same as the will you would leave, directing disposition of property after you die. This truly is a document that is activated when you are still living, but no longer able to make your own health care decisions.

In your living will, you must state what kind of medical care you do and do not want to receive. The primary example of this would be indicating if and when you want doctors to end life-support measures such as ventilation or feeding tubes, even though you will die without them (i.e., “pulling the plug”).

The Durable Power of Attorney for Health Care

This important document might also be called your medical power of attorney. In this, your estate planning law firm helps you select a trusted person to name your medical agent (also called attorney-in-fact). He or she will make medical decisions for you if you become incapacitated to make decisions.

Who should you choose as your agent? To review quickly, this should be someone who:

•    Is assertive. Your health care agent may need to stand up to the medical establishment, and/or to family members who don’t agree with your directives. Medical malpractice lawyers will tell you there is always a chance that your agent will need to recognize when medical care has gone wrong.

•    Lives nearby. Your health care agent may be needed to be present for weeks or months to make sure your health care directives are carried out. This could be a particular burden if your agent lives in another city or state.

•    Can be your financial agent. Because medical care involves financial decisions, it’s best to give your health care agent a durable power of attorney for finances as well. If you are naming two separate people, make sure you select two people who can get along and make decisions together on your behalf.

Sometimes the combined living will and durable power of attorney are called the “advance health care directive.” 

DNR Order

This stands for Do Not Resuscitate, and it is a specific order one might give when hospitalized to tell health care personnel you do not wish to have certain life-saving measures. Usually this is given by a person who is terminally ill. However, if you are already incapacitated, you cannot give a DNR order. To make your wishes known, you may create a “prehospital DNR” which can be presented to paramedics if they are called to your home or care facility.

If you do not have these important health care directives in place, schedule time with an an experienced estate attorney who will guide you through the process.

This blog was originally posted on https://www.pa4law.com/what-does-a-health-care-directive-consist-of-here-is-the-info/

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What’s the Difference Between Revocable and Irrevocable Trusts?

To explain it simply, a revocable trust (also called a living trust) may be changed after it is created. An irrevocable trust is quite difficult to change. An individual may choose to form an irrevocable trust to receive certain tax-shelter benefits not provided by a revocable trust.

What is the purpose of a trust?

A trust is a legal entity separate from the individual who created it. The trust is created to manage the assets of the trust creator. A trustee is named, and the trustee manages the trust. Instead of creating a will, wealthy individuals may set up a trust to ensure that:

•    Assets are managed the way the trust creator has directed;

•    Specified individuals benefit from the trust, particularly after the trust creator has passed away;

•    The trust creator is sheltered from taxes on income generated by the assets;

•    The assets in the trust are protected from creditors;

•    The assets in the trust are sheltered from estate taxes.

Why choose a revocable trust?

A revocable trust offers the benefit of flexibility. The creator of the trust may change its terms at any time, including removing beneficiaries, adding new beneficiaries, and change the way the trust’s assets are managed.

An individual may create a revocable trust to ensure privacy for certain assets, to hold assets for minor children or family members with special needs, or to protect assets from probate (a trust is more difficult to contest than a will). In short, the creator of a revocable trust maintains control while also ensuring a level of asset protection.

There are other factors to consider. In a revocable trust, the assets are not shielded from creditors. This means that a judge can order the trust assets to be liquidated in order to satisfy creditors. If a person dies with a revocable trust, the assets in the trust will be taxed at the state and federal levels.

Why choose an irrevocable trust?

The rules regarding an irrevocable trust are quite rigid. When the trust is created, the stipulations set forth cannot be changed except under rare circumstances. Effectively, the trust creator has transferred all ownership of the assets to the irrevocable trust. The assets are no longer considered part of that individual’s estate and thus are not subject to estate taxes. The trust creator is not responsible for taxes on income generated by the assets, and the assets cannot be liquidated in order to satisfy the trust creator’s creditors.

For wealthy people, the benefits of an irrevocable trust can be significant. Also, they can feel assured that the beneficiaries they have designated will benefit from the trust. The trustee is obligated to carry out the wishes of the trust creator. Assets protected by an irrevocable trust very rarely end up in probate.

Setting up the right trust for you

Deciding which type of trust will be most beneficial to you, and setting up a trust, requires the expertise of an experienced estate attorney. This is a complex legal specialty that requires the assistance of an attorney who has planned for sizeable estates. Click here to set up your initial consultation.

This blog was originally posted on https://www.pa4law.com/whats-the-difference-between-revocable-and-irrevocable-trusts/

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Estate Planning: Here is How to Get Started!

It is easy to put off estate planning for another day (or month or year). Perhaps you aren’t sure how to get started. The following are five simple steps that will move you in the right direction.

1.    Create a deadline. Everyone responds more quickly when there is a deadline. Set a deadline for when you will have your estate planning in place. Choose a date not too far out, but also allow for time to gather the information you will need to create a will, confer with your attorney, and have the plan completed. Three months from now would be reasonable.

2.    Collect financial information. This is a task that begs for a spreadsheet. List all your assets and investments, showing their current market values, debts against them, and net values. Show how they are titled (you alone, jointly with your spouse?). Start a physical file where you place deeds and current statements, so you can show them to your attorney.

Here’s a checklist of what to include:

•    Your home

•    Any other real estate

•    Autos, boat, other titled property

•    Bank accounts

•    Retirement savings 

•    Business and partnership interests

•    Life insurance policies and annuities

•    Items of special value

•    Other debts (credit cards, personal loans, unsecured lines of credit)

3.    Who will inherit from you? Decide who will be your heirs – and this often is not as simple as you might think. Yes, there is your spouse and your children. What about siblings, a life partner to whom you aren’t married, stepchildren, nieces and nephews, grandchildren, special friends, a pet? Then there are institutions (schools, churches) and charitable organizations. Create this master list, and gather the information your executor will need, such as full legal names, dates of birth, current addresses, how they are related to you. Then decide how much they will inherit, and how it will be distributed. For instance, you may not want a young person to receive a large lump sum, but installment payments over time. If you have minor children, you may need to create a child’s trust in your will. These are matters to discuss with your estate planning attorney.

4.    Your executor. Choosing an executor deserves some thought, according to lawyers that handle wills.  Let’s say you decide to appoint your eldest child – but your children have a history of disagreeing with one another. This will only add fuel to the fire. Sometimes it’s best to choose someone outside of the family, such as a professional (lawyer, accountant). The executor should be someone you trust, whose judgment you respect, and who will carry out your wishes.

5.    Select your attorney. Estate planning is too important to “go it alone.” It’s best to find an estate attorney who will counsel you through a number of additional issues, such as a health care directive (also called a living will). Your attorney will also make sure documents are drafted properly according to your state laws. He or she will also make sure language is structured in a way that makes your wishes clear to your executor and heirs.

Don’t hesitate to contact an experienced estate planning attorney at Perna & Abracht, LLC, who will ensure that you start and complete the estate planning process with ease.

This blog was originally posted on https://www.pa4law.com/estate-planning-here-is-how-to-get-started/

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Considering a Will? 5 Things You Should Know

If you don’t have a will, you are not alone. It is estimated that one-half to two-thirds of U.S. adults don’t have a will. Yet in this case, it is not good to be in the majority. A will is an important legal document that every adult can and should put in place. Fortunately, for an estate planning attorney, it is a straightforward process to create a will.

1.    Not just for the wealthy. A will is not just for wealthy people with complex personal and business holdings. Even if you are a person of average means, you have personal property and assets (money, real estate, etc.). A will determines what happens to those after you die. Ask yourself the following:

Does it matter to you who receives your property after you die?

Does it matter to you who receives your money after you die?

Does it matter to you who will take care of your children if you die before the children become adults?

Nearly everyone will answer “yes” to one or more of these questions. A will is a legal directive that resolves these concerns. Another benefit is that in your will, you name an executor. This is an individual who will ensure that your wishes are carried out as you have directed. 

2.    If you won’t, a court will. What happens if you die without a will? A court will make decisions regarding your property and money. There is a process called probate, which is lengthy and likely stressful for your loved ones, according to top probate lawyers. A will is the best way to protect your loved ones from these problems, especially if you die unexpectedly in an accident or sudden illness.

3.    How to get started. The first two steps are to designate a guardian of your minor children and appoint an executor of your will. Next, for anyone you intend to mention in your will, gather basic information such as names, addresses, and birth dates.

Your executor will need information about your debts and assets. Gather records of mortgages, loans (auto, school, business) and credit card accounts. Your executor also needs details about real estate, bank accounts, investments, retirement accounts, and insurance policies and annuities.

4.    Why you need a lawyer. It’s possible to go online and create your own will, but there is a simple question to ask yourself: “How do I know it is done right, for the state I live in?” Truthfully, you can’t know this unless you are a lawyer yourself. This is an important legal document that must stand on its own as your wishes after you are gone. It may name beneficiaries that are not immediate heirs, such as stepchildren, godchildren, friends, and charities. An experienced attorney will make sure you address all the issues that may concern your loved ones, and ensure this important document is properly drafted so all questions are answered. Hiring an experienced attorney to ensure your wishes are fulfilled after you are gone is both a wise and sound investment.

5.    A living document. One thing is for certain, that is your life will change. Over time it is advisable to review your will with your attorney and make sure it reflects your wishes at the present time. Be sure to inform your executor where your will is kept so he or she can locate it, register it at the appropriate time, and execute it.

Wondering whether you need a Will? Now is the time to schedule a consultation with attorneys who specialize in wills. Your loved ones will thank you for it.

This blog was originally posted on https://www.pa4law.com/considering-a-will-5-things-you-should-know/

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Joint Custody Agreement: How to Make it Work for You and Your Child

The facts are clear regarding child custody arrangements: children benefit from substantial and frequent contact with both parents. For this reason, the courts favor joint custody arrangements as long as there aren’t any factors that present a threat of harm to the child (such as substance abuse, child abuse or domestic violence).

To be clear, joint custody refers to both parents sharing the physical care of the child. Each parent will have his or her own household, and the child will travel from one household to the other in a schedule the parents have agreed upon.

Good child custody lawyers point out that the phrase “agreed upon,” is important to keep in mind when living with joint custody. You may not enjoy the interaction with your ex, and you may not be entirely happy with every detail of the agreement, but it is very important to abide by the agreement. A parent who habitually ignores the terms of the agreement is putting himself or herself at risk for a modification to the agreement that curtails or even removes joint custody.

What makes joint custody work? This is generally when both parents:

•    Agree it is in the best interest of the child;

•    Cooperate with each other and can make decisions together;

•    Live fairly near one another to minimize travel time and effort for the whole family;

•    Want to be involved in the day-to-day lives of the child.

Often, the most difficult step is coming up with a schedule that works for both parents. Depending on your work schedules, and your child’s school and activities schedule, you might consider custody schedules such alternating weeks, two weeks each, or every weekend (child lives with one parent during the week and the other parent on weekends). Older children may be included in the decision about what works best for them.

There are more complex shared schedules which may be easier to accomplish with young children and are found to be more psychologically beneficial for them:

2-2-3 is when the child lives with one parent for two days, the other parent for two days, and then alternates a 3-day weekend.

2-2-5-5 is when the child lives with one parent for two days, the other parent for two days, then five days with each parent.

3-4-4-3 is when the child lives with one parent for three days, the other parent for four days, and then spends four days with one parent and three days with the other.

Whatever schedule is agreed upon, your family custody attorney and other experts say the following tips will make it work better for your child.

1.    Do not criticize or belittle the other parent in front of the child.

2.    Remember that the child loves both of you as parents and needs the involvement of both parents.

3.    Any inconveniences that you may experience should not be blamed on the ex or on the child.

4.    Keep the custody arrangement separate from child support issues, good child support lawyers say.

5.    Cherish the time you spend with the child rather than regard it as something you have “won” in a fight with your ex.

6.    If you feel a change in the schedule would benefit the child, set aside any resentments you have with your ex, and discuss the change as a positive for the child.

In any issues regarding divorce or child custody, it’s best to sit down with an experienced Perna & Abracht LLC attorney as soon as concerns arise.

This blog was originally posted on https://www.pa4law.com/joint-custody-agreement-how-to-make-it-work-for-you-and-your-child/

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