As estate planning attorneys, we sometimes hear from a client that wants us to provide damage control. The individual does not know where to turn, because their last surviving parent passed away without any estate planning documents in place. There are things that we can do in many cases to mitigate the damage, but this is a tough situation that could have been avoided.They say that the only two certainties of life are death and taxes. With this in mind, everyone is prepared to file their … [Read more...]
Two Business Structures That Provide Asset Protection
You should definitely prioritize asset protection when you are starting a business. It is important to separate your personal property from the business assets, and vice versa. There are two legal structures that are typically utilized for small business owners that want to protect assets, and we will look at them in this post. Limited Liability Companies A limited liability company can provide an asset protection solution in many instances. When you establish an LLC, there is legal separation … [Read more...]
Two Tax Issues That Can Impact Your Estate
Many people feel as though the assets that you have left after you pay taxes all of your life should not be subject to taxation while they are being transferred after you die. Though this argument has merit, there is in fact a federal estate tax, and it is far more than a nuisance. This tax carries a very hefty 40 percent maximum rate.The existence of the estate tax is the bad news; the good news is that most families do not pay the tax, because there is an estate tax credit or exclusion … [Read more...]
Can an Irrevocable Trust Be Changed?
There are many misconceptions held by people with regard to trusts, and one of them is the notion that you surrender all control of assets that you convey any type of trust. The first thing to understand about trusts is that there are two different classes: revocable trusts, and irrevocable trusts.As the name would imply, with the former variety, the grantor of the trust has the right of revocation. If you establish a revocable living trust, and you decide that you want to dissolve it … [Read more...]
Estate Planning for Family Owned Businesses and Farms
If you own a business that you operate along with members of your family, your estate planning situation can be a bit complex. For example, let’s say that you have three children. One child has been running the business alongside you for years, and the other two have pursued different career paths. The business is your most valuable asset, and you want to take care of all of your children equally. How do you proceed under these circumstances?There are estate planning solutions that can be … [Read more...]
What Are the Responsibilities of the Probate Court?
As estate planning and elder law attorneys, we are intimately connected to the probate court. One of the major functions of the court is to provide supervision when an estate is being administered. If you use a last will to express your final wishes, you would name an executor in the document. This estate representative would take care of the hands-on tasks, and the probate court would provide oversight.During probate, creditors must be notified, and they are given a certain amount of time … [Read more...]
Special Needs Planning and Estate Recovery
There are numerous ways to facilitate asset transfers, so you should definitely discuss your options with a licensed estate planning attorney. If you go it alone without any professional guidance, you could make mistakes that have unintended negative consequences. This can definitely enter the picture if you have someone with special needs on your inheritance list. Medicaid and Supplemental Security Income Medicaid is a need-based government health insurance program. Because it is intended for … [Read more...]
Are All Asset Transfers Subject to Probate?
Probate is the legal process of estate administration. If you arrange for the distribution of your personally owned property through the terms of a last will, the probate court would provide supervision. Creditors are given an opportunity to come forward seeking satisfaction during probate, and interested parties would have the opportunity to challenge the validity of the will.This process serves a purpose, but it is not necessarily positive for the rightful heirs to an estate. In Vermont, … [Read more...]
Why Are Living Trusts Utilized?
When you work with an estate planning lawyer to devise your inheritance plan, you have access to knowledge that you would not have at your disposal if you were to go it alone. Your attorney will explain all of your options to you in detail, and at the end of the day, you can make very important decisions in a fully informed manner. With this in mind, we will look at the value of revocable living trusts in this post. Last Wills vs. Living Trusts One of the most common misconceptions that people … [Read more...]
Incapacity Planning Is a Must
When you think about the matter of estate planning, arranging for postmortem asset transfers will probably come to mind. Without question, you have to execute a will or some type of trust to state your final wishes. The ideal course of action will depend upon the circumstances, and there are many possibilities. This is one of the most important financial decisions you will ever make, so you should certainly discuss your options with a licensed estate planning attorney. End-of-Life … [Read more...]
