If your loved one is experiencing any of the above symptoms, it is important for you to consult a physician so that proper diagnosis can be made.  It is also important to mention that if a diagnosis of Alzheimer's/dementia is made, getting that loved one's estate planning documents prepared by an elder law attorney sooner rather than later is essential.*     

  

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What Everyone Should Know About Estate Planning

 

Some differences between a will and trust:   A will does not avoid probate.  A trust can avoid probate, but only if the trust is properly funded.   A will only comes into effect when you pass away.  A trust can hold assets while you are alive.  A trust can be useful if you have property out of estate, as real estate is governed by the probate rules where it is located.  As such if you own 3 pieces of property, each in a different state, if they are not owned by a trust, you are looking at three different probate procedures. 

The power to make decisions for loved ones is not automatic, you must be legally appointed.   Your spouse or other family member can't make legal decision for you unless you legally appoint them in a document.   For example, without a financial power of attorney, your spouse can't access your IRA if needed and without a health care power of attorney, you can't make health care decisions for your child who just turned 18.  A durable power of attorney for financial matters and a durable power of attorney for health care decisions appoint a person to act on your behalf when you are unable to do so.   Without these documents, decisions cannot be legally made and a guardianship may be necessary.  To avoid unnecessary stress and hardship down the road, our office strongly recommends that everyone 18 years and old have both a Durable Power of Attorney for Health and a Durable Power of Attorney for Financial Matters.  

Naming a guardian for your children is important.    This is done through a person's will and if a person does not have a will, a court decides who will be appointed as guardian of a person's children.   Parents put off writing a will because they cannot agree on a potential guardian.   Although this decision is a difficult one to make, after making it, most parents feel a sense of relief that a court isn't choosing who will be the guardian for their children.

Trusts are not all the same and they are not just for the wealthy.   Some trusts are created to avoid probate and to provide a distribution to a person's children upon death.  Others are created to avoid estate tax and some to protect assets from creditors.   We frequently prepare trust for clients who have a loved one who is disabled.  These trusts are called special needs trusts and protect the disabled individual from losing public benefits such as SSI and/or Medicaid.             

Portability of the Estate Tax Exemption:    Portability of the estate tax exemption means that if the first spouse dies and doesn't use all of his or her federal exemption for estate taxes that the surviving spouse can add the unused estate tax exemption of the deceased spouse to their own exemption, allowing spouses together to transfer up to $10 million tax free.  Please note that portability is not automatic and to get it, the executor of the first spouse who died must file an estate tax return, even if no estate taxes are due.   If you have any questions regarding portability and how it could apply to your Estate, please contact our office. 

Communication is key.  Communicating with all family members about your estate planning can significantly reduce the likelihood of potential conflicts or disputes after you are gone.

If you have questions regarding any aspect of what everyone should know about estate planning, please feel free to contact our office.

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