Category: Estate Planning

Estate Planning Essentials for Retired Military Members

Posted on August 30, 2024 by - Estate Planning

Estate planning is important for everyone, but it has particular significance for retired military personnel in San Diego.

This guide covers the special considerations and benefits of estate planning for those who have served in the military, including insights into recent legal changes, common challenges, and how to handle these issues effectively.

Understanding Military-Specific Benefits

For retired military personnel, several key benefits play a major role in estate planning. Here’s how to effectively manage these assets:

1. Military Pensions

Military pensions are a valuable asset for retired service members. Proper estate planning can help ensure that these pensions are passed on to your beneficiaries with minimal tax impact. In San Diego, Hoffman & Forde can assist in structuring your pension benefits to protect them from creditors and ensure they are distributed according to your wishes.

2. Survivor Benefits

The Survivor Benefit Plan (SBP) provides ongoing income to your spouse or other designated beneficiaries after your passing. Coordinating SBP with other parts of your estate plan is important to ensure your loved ones continue to receive support without complications. Our team at Hoffman & Forde can help integrate SBP into your estate plan while following California laws.

3. VA Benefits

Veterans Affairs (VA) benefits, including disability compensation and healthcare, need careful integration into your estate plan. Ensuring these benefits are accounted for and protected is essential. In San Diego, our attorneys are well-versed in VA regulations and can guide you in including these benefits in your estate plan effectively.

Recent Changes in Laws and Regulations

Recent updates in laws can impact your estate planning strategy:

  • Federal Estate Tax Updates

Although California does not impose a state estate tax, changes in federal estate tax laws could affect your estate. It’s important to review these changes and adjust your estate plan to reduce tax liabilities.

  • California State Regulations

While California does not have a state estate tax, state laws related to estate planning can still affect how your assets are managed and distributed. Recent changes in California laws may impact your estate plan, so it’s important to review these regulations.

  • VA Benefits Regulations

Regulations surrounding VA benefits are also subject to change, and these changes can impact how your benefits are handled within your estate plan. Ensuring that your estate plan complies with the latest VA regulations is essential.

Common Challenges in Military Estate Planning

Retired military personnel face special estate planning challenges:

  • Benefit Coordination

Combining military pensions, survivor benefits, and VA benefits with civilian assets can be tricky. Ensuring that all these parts work together without conflicts is a key challenge.

  • Regulatory Compliance

Dealing with the various regulations related to military and VA benefits can be difficult. Working with our firm, can help simplify the process and ensure compliance.

Common Questions Retired Military Personnel Have About Estate Planning

1. How can I ensure my military pension is protected and passed on according to my wishes?

Ensuring your military pension is properly protected involves including it in your estate plan and potentially setting up trusts or other legal structures. We can help create a plan that aligns with your wishes and safeguards your pension.

2. What should I know about the Survivor Benefit Plan (SBP) and its impact on my estate?

The SBP provides ongoing income to your beneficiaries. It’s important to coordinate this benefit with your overall estate plan to ensure that your loved ones receive the intended support. We can help you integrate SBP effectively into your estate plan.

3. How do VA benefits affect my estate planning?

VA benefits, including disability compensation and healthcare, need to be included in your estate plan. This ensures that these benefits are properly accounted for and do not interfere with other parts of your estate. Consulting with us, who are familiar with VA regulations, can provide clarity on how to manage these benefits.

4. What recent legal changes should I be aware of?

Recent updates in federal and state laws can impact your estate planning. It’s important to stay informed about these changes to ensure your plan remains compliant and effective. Regular consultations with our attorneys can help you keep your plan up-to-date.

5. How can I handle the integration of my military and civilian assets?

Combining military pensions and benefits with civilian assets can be challenging. Hoffman & Forde can help you create a cohesive plan that addresses all your assets and ensures they are distributed according to your wishes.

Legal Insights from Our Attorneys

At Hoffman & Forde, we specialize in estate planning for retired military personnel in San Diego. Our team can assist with:

  • Combining Military and Civilian Assets

We can help you manage and integrate your military pensions and benefits with your civilian assets to create a smooth estate plan.

  • Handling Legal Changes

Our attorneys stay updated on recent changes in laws and regulations, ensuring your estate plan remains effective and compliant.

Need Legal Advice?

Hoffman & Forde, Attorneys at Law, is dedicated to supporting retired military personnel and their families in San Diego with the challenges of estate planning. Our experienced team is committed to addressing your specific needs and benefits effectively, ensuring your estate plan is tailored to meet the requirements of military families.

Estate planning is important for securing your family’s future. For retired military personnel, addressing the specific aspects of military benefits and regulations is essential.

Contact us today at (619) 546-7880 to schedule a consultation and ensure that your estate plan is tailored to meet your needs. To learn more about our estate planning services, visit Hoffman & Forde Estate Planning.

Disclaimer: The information in this post is considered attorney advertising under applicable California Law. The contents of this post is for informational purposes only and is not legal advice. The information may be incomplete or out of date. No representations, testimonials, or endorsements on this web site constitute a guarantee, warranty, or prediction regarding the outcome of any legal matter.

San Diego Residents’ Guide to Probate

Posted on July 17, 2024 by - Estate Planning

At Hoffman & Forde, Attorneys at Law, we specialize in estate planning and probate law in San Diego, California.

In this detailed guide, we aim to demystify the probate process, clarifying what it entails, where it applies, when it occurs, why it’s important, how to navigate it effectively, and the benefits of proactive planning.

What is Probate?

Probate is the court-supervised process of validating a deceased person’s will and distributing their assets to beneficiaries. It ensures that debts are settled, taxes are paid, and assets are distributed according to the deceased’s wishes or state law.

In San Diego, Probate typically involves filing paperwork with the Superior Court of California for the county where the deceased resided, initiating the legal process to administer their estate.

Where and When does Probate occur?

Probate generally takes place in the county where the deceased lived at the time of their death, such as San Diego County for residents of San Diego.

The process begins shortly after the individual’s death and involves various legal steps that must be completed within specific timelines. Depending on the intricacy of the estate and any legal challenges that arise, Probate can take anywhere from several months to over a year to complete.

Why is Probate necessary?

Probate becomes necessary in various situations and is important for several reasons:

  • Transferring Assets and Paying Debts – Probate provides a formal process for transferring the deceased’s assets to their beneficiaries and ensures that outstanding debts are paid before the assets are distributed.
  • Resolving Disputes and Uncertainties – Probate helps resolve disputes over the estate. It is essential when there is no clear direction on how the deceased’s property should be distributed, such as when there is no will or if the will is disputed.
  • Validating Wills and Managing Large Estates – Probate confirms the will is valid and follows legal standards. It is also important for handling large or complicated estates, including multiple properties and diverse assets.
  • Protecting the Deceased’s Wishes – Probate ensures that the deceased’s wishes are legally enforceable as stated in their will, preventing potential disputes and mismanagement of the estate.

Without probate, this potentially leads to lengthy court battles and strained relationships among family members.

How to manage Probate effectively?

  • Inventory and Appraisal – Start by compiling a detailed inventory of the deceased’s assets, including real estate, financial accounts, personal belongings, and other property.
    • Obtain professional appraisals where necessary to determine the fair market value of assets.
  • Debts and Taxes – Identify and pay off outstanding debts owed by the estate, including mortgages, loans, credit card balances, and unpaid taxes.
    • This ensures that creditors are satisfied and prevents potential claims against the estate.
  • Distribution of Assets – Follow the instructions laid out in the deceased’s will regarding the distribution of assets to beneficiaries.
    • If there is no will (intestate), distribute assets according to California’s laws of intestate succession.

Benefits of proactive Probate planning

  • Minimize Delays and Costs – Planning and organizing your estate can reduce the time and expense of probate proceedings.
  • Ensure Wishes are Honored – Proper estate planning allows you to specify how your assets are distributed and ensure your wishes are legally enforceable.
  • Preserve Family Relationships – Preemptively address potential conflicts or disputes through precise estate planning, minimizing the likelihood of family disagreements during Probate.
  • Protect Privacy – Probate proceedings are public records. Still, careful planning, such as establishing trusts, can help maintain privacy by keeping asset details out of the public domain.

Need Legal Advice?

Understanding Probate is essential for protecting anyone with assets and loved ones.

By partnering with Hoffman & Forde, Attorneys at Law, you gain access to dedicated professionals who prioritize your family’s financial security and peace of mind. Whether planning or handling the probate process, our firm is here to provide expert guidance and support at every step.

Contact us today for a consultation at (619) 546-7880 to discuss how we can assist you in creating a comprehensive estate plan tailored to your needs.

Benefits of Putting Your Property in Trust: A Comprehensive Guide

Posted on June 11, 2024 by - Estate Planning

Estate planning can often seem daunting, especially with the array of arrangements available for your property. However, understanding some fundamental facts can significantly ease the process.

This post explores the significant advantages of setting up a living trust and how it safeguards your assets and ensures privacy. If you want to bypass probate court, shield your assets, maintain control over them, or keep your affairs private, a living trust is a powerful tool to consider.

What is a living trust?

A living trust is a legal document that facilitates the transfer of your property into a trust, allowing you to retain complete control during your lifetime. After your passing, the assets are distributed to your chosen beneficiaries under the guidance of a trustee whom you appoint.

Types of living trust

  • Revocable Living Trusts – The grantor may change or cancel these while s/he remains alive.
  • Irrevocable Living Trusts – These can be less flexible once set but offer better asset protection and possible tax savings.

Benefits of a Living Trust

Living trusts are widely recommended for future planning after one’s passing. Here are the key advantages:

  • Avoid Probate – Trusts help your beneficiaries save a lot of time and money by avoiding the probate process. Probate is expensive, often costing over $40,000 in attorney fees and other expenses to administer an estate. A living trust provides a simple and efficient way to distribute your property upon death.
  • Protect Your Privacy – Probate is an intrusive process because it becomes a matter of public record, allowing virtually anyone to access the information you provide to the courts. In contrast, a living trust helps maintain the confidentiality of the estate transactions, ensuring the intended will is enforced privately.
  • Maintain Control – With a living trust, transferred assets remain your property during your lifetime but are placed in a separate legal entity known as a trust. This arrangement allows you to increase, decrease, and make changes to the trust as necessary, ensuring it always reflects your current circumstances.

Why a living trust is essential?

A living trust is a powerful tool that goes beyond avoiding probate. Here are some additional benefits you might not be aware of:
  • Continuity of Management – A living trust offers the advantage of taking over the management of your property on your behalf if you become incapacitated, eliminating the need for a guardian to oversee your affairs. This makes the process easy, stress-free, and a relief for your family, especially during such trying times.
  • Asset Protection – Over the years, a well-planned trust has been an effective way to safeguard property from various threats, such as creditors, lawsuits, and future financial hardships. It is essential for protecting your assets to ensure they can be passed on to your intended heirs.
  • Flexibility and Control – Unlike a will, a living trust can be altered or terminated at any time before the death of the person who created it, offering outstanding versatility to the creator. You remain in control of your resources, while the beneficiaries are designated to receive them according to your instructions.
  • Tax Benefits – Using a living trust can lead to significant tax savings, depending on your financial situation. Our dedicated attorneys, with extensive experience in trust matters, can assist you in designing your trust to avoid or reduce estate taxes and other taxes that may be due on your trust.
  • Privacy and Confidentiality – Another essential advantage of a living trust that is often overlooked is that its provisions are protected from public access. Unlike a will, which goes through the public probate process, a living trust remains private as it is part of the living person’s estate. This means others cannot access your estate plan to determine the value or distribution of the property included in the trust.

Do I Need a Trust?

If you’re interested in understanding the significance of living trusts in your family’s life and altering your estate planning approach, contact us today at (619) 546-7880 for a consultation. Our intake specialist will engage with you to gather vital information to evaluate your situation.

What to Know About Buying Rental Property Outside of California

Posted on September 29, 2023 by - Estate Planning

Real estate investment can be a great way to grow wealth and even provide a steady stream of passive income. However, as every Californian knows, real estate prices in the state are often prohibitively expensive, leaving many people with few options. As a result, it is often necessary to look outside the state for more affordable opportunities.

For those who are drawn to the idea of buying rental property outside of California, here are a few critical points to consider.

1. Know the Market

Real estate values vary widely from neighborhood to neighborhood, even street to street. Most of us understand this intuitively regarding the area where we live, but it can be easy to lose sight of this fact when searching for property in another city. Without local knowledge, it’s easy to get lured in by a “great deal” that turns out not to be so great. Alternatively, there may be a part of town where real estate prices will likely  skyrocket in a few years, but you wouldn’t know about it.

If possible, it’s better to buy property in an area that you are already familiar with. If not, it’s a good idea to get to know the place and try to be physically present as much as you can throughout the process.

2. Find a Good Agent

Having a real estate agent you can trust is always important, but it is doubly so for people buying an out-of-state investment property. Tying in to the point above, a good real estate agent can be an invaluable source of knowledge about the local market. They can guide you toward great opportunities and steer you away from a money pit.  The wrong agent, or even just an indifferent one, may prioritize closing the sale over looking out for your best interests.

What’s more, your relationship with a real estate agent can be a great start to building a local network of connections. From inspectors to contractors to property managers, you’ll need a lot of help to make your rental property a success, and a good real estate agent can put you on the right path.

3. Property Managers Can Be a Big Help

It will be tough to administer an out-of-state rental property on your own. For starters, someone has to be on hand to show the property, collect rent, inspect the property for damage, etc. If maintenance issues crop up, they must be dealt with promptly, which may be challenging to orchestrate from another state. Also, you’ll need to be familiar with state and local laws regarding leases, evictions, and more.

Hiring a local property manager simplifies all of this. For a fee, often a percentage of the monthly rent, property managers will find renters, oversee the signing of the lease, collect rent, send maintenance workers, and take care of other problems as they arise.

4. Tax Implications

Owning an out-of-state rental property can be a great investment, but it will complicate your annual tax return. If nothing else, you will almost certainly have to file a return in the state where the property is located. 

You’ll want to take advantage of deductions for depreciation and other associated costs, such as fees paid to a property manager. If you operated at a net loss for the year, you may or may not be able to deduct that loss from your other earnings (like salary). To navigate all of this without incurring the wrath of the IRS, you should strongly consider hiring a tax professional.

Talk to a Real Estate Specialist

If you are considering purchasing a rental property, whether it’s in California or elsewhere, our team of experienced real estate attorneys can provide the expertise and assistance to make the process go smoothly. From minimizing tax exposure to reviewing contracts, we’ll be at your side every step of the way. 

Contact our office today to start putting your investment plan into action.

How to Set Up a Trust

Posted on June 23, 2023 by - Estate Planning

How to set up a trust

A trust is one of the most effective tools for creating a successful financial plan. They can reduce the overall tax burden, provide for your loved ones, and give you some control to ensure your wishes are carried out after you’re gone. However, trusts are also complicated legal arrangements that can be confusing, leaving some people wondering where to start.

Here we’ll review the basics and best practices of setting up a trust. We should say at the outset that we do not recommend attempting to create a trust on your own and strongly advise you to consult with an attorney to ensure your trust meets all legal requirements.

Trust Basics

A trust is a legal arrangement whereby one person holds property for the benefit of another. What does that mean? It’s easier to understand by thinking of the three principal parties to a trust: the settlor, the trustee, and the beneficiary.

The settlor (also called a grantor or trustor) is the person who creates the trust. They provide the property which will fund the trust, decide who will benefit from the arrangement, and define the rules by which the trust operates.

The beneficiary is the person who benefits from the arrangement. Put another way, the beneficiary is the person (or persons) whom the settlor wishes to help by creating the trust.

The trustee is the person who is responsible for managing the trust property and ensuring the terms of the trust are carried out.

Here’s an example: A single parent who owns an apartment building has a will that states that if they die before their child reaches age 25, the title to the apartment building will be transferred to a trust to be managed by their attorney. Any income generated by the building will be used to pay for the child’s care until they are 18, and then the child will receive monthly cash payments from the income until they are 25, at which point they take full ownership of the building. In the meantime, the attorney is responsible for maintaining the building, paying property taxes, etc., and is entitled to compensation for their efforts. In this scenario, the parent is the settlor, the child is the beneficiary, and the attorney is the trustee.

Setting Up the Trust

If you’re interested in creating a trust, follow these basic steps.

1. Define Your Goals

Trusts are a versatile tool that can be used for many purposes. You may wish to establish a charitable legacy, provide care for family members, or reduce the tax burden on your estate. Knowing your goals will help you make the best decisions for your trust.

2. Identify the Assets You Will Place in the Trust

Knowing your goals, consider the property at your disposal and how it can be used to fund the trust.

3. Identify Your Beneficiaries

Be clear on who you want to benefit from your trust. It can be anyone, from your spouse or children to a charitable foundation.

4. Decide Your Trustee

This is one of the most important decisions you’ll make. A trustee can be a family member, an attorney, or even an institution such as a bank. It should be someone you trust, but the trustee should also be someone who can handle financial matters, such as paying taxes and investing money. It is common for the attorney who drafted the trust documents to serve as trustee, but additional safeguards should be in place to ensure the attorney has not abused their position for their own gain.

5. Have an Attorney Draft the Documents

Trusts shouldn’t be handled on a DIY basis, as many rules must be followed. If done improperly, the result may be that your wishes are not followed after you pass away. Meet with a lawyer with experience in trusts, tell them what you want, and they should be capable of creating the necessary documents.  

Getting Started

If you know what you want or need help exploring your options for creating a trust, the next step is to meet with an attorney. Our estate-planning experts have years of experience drafting trusts, wills, and other legal instruments that will accomplish your goals and survive legal scrutiny if challenged.

To schedule your initial consultation, contact our office today.

Wills vs. Trusts: What’s the Difference?

Posted on April 17, 2023 by - Estate Planning

wills vs trusts

Estate planning can be confusing, especially when understanding the differences between wills and trusts. While both documents allow you to distribute your assets and property to loved ones after you pass away, they serve different purposes and have unique advantages and disadvantages.  

If you’re unsure which option is right for you, keep reading. We’ll explain the differences between wills vs. trusts so you can make an informed decision and protect your assets. 

Wills: A Brief Overview

A will is a legal document that ensures your assets and property go to the right people after you pass away. But a will can also be used to name individuals who will manage your state, care for your children, or even outline your burial wishes. 

Your will must be signed and witnessed according to each state’s rules to be considered a valid, legal document. And after you die, your executor must take your will to probate court to make it official. After that, your will will be subject to public record. 

Trusts: A Brief Overview

A trust is a legal arrangement where an individual transfers their assets to a trustee who manages them according to their wishes. The trustee must follow the rules that the individual sets up for how those assets should be managed and who should receive them.

To better understand the difference between a will and a trust, think of a will as a set of instructions that tells beneficiaries what to do with their assets once they pass away. On the other hand, a trust is more like a container that holds your assets, which a trustee then manages.

Advantages of a Will 

There are several advantages to having a will instead of a trust. However, keep in mind that these advantages are unique to your circumstances and goals:  

  • Simplicity: Generally, a will is a simpler document that requires less time and money to prepare than a trust, making it a good option if your assets are small and your instructions are straightforward. 
  • Flexibility: Wills can be changed or updated relatively easily, allowing for greater flexibility. 
  • No trustee necessary: When choosing a will, you do not have to appoint a trustee to manage your assets, simplifying the estate planning process. 

Advantages of a Trust 

Trusts also have several unique advantages over wills, including: 

  • No probate: Probate is a court-supervised process that can be time-consuming and expensive. It can also tie up your assets for months or even years. A trust ensures you avoid probate altogether. 
  • Increased privacy: Unlike wills, which become part of the public record, trusts remain confidential. 
  • Increased control: A trust also gives you more control over how your assets are distributed to beneficiaries and under what circumstances. 

Wills vs. Trusts: Which is Right for Me? 

The answer to this question depends on several factors, including the size and complexity of your estate, your goals for distributing your assets, and your preferences for managing your assets during your lifetime.

Generally speaking, a will may be the best option if you have a simple estate with few assets and straightforward distribution goals. But if you have a larger or more complex estate, a trust may give you the control, flexibility, and privacy you need to manage your assets successfully. 

It’s also important to consider other factors, such as the potential tax implications of your estate plan and your desire for privacy and asset protection. 

Talk to an Estate-Planning Specialist

If you need legal assistance with estate planning, including wills, trusts, and probate matters, contact Hoffman & Forde. Our team of estate planning attorneys is perfectly suited to help you plan for the future and protect your loved ones. With our extensive expertise, we can provide the protection your estate needs in San Diego, Los Angeles, or Orange County. Contact us to schedule an initial consultation.

6 Questions to Ask an Estate Planning Attorney

Posted on March 24, 2023 by - Estate Planning

Questions to Ask an Estate Planning Attorney

Estate planning is an important process for anyone with assets to pass on, but it’s also unfamiliar. For this reason, it’s best to have assistance from a lawyer who knows all of the options available to you and how to prepare the necessary documents to stand up to scrutiny later.

If you plan on consulting with a lawyer, you probably want to get the most out of your meetings. To help with this, here are a few questions to ask your potential estate planning attorney.

1. How Much Experience Do You Have with Estate Planning?

As you may be aware, most lawyers have specialized areas of practice, and many have little or no experience with estate planning. In contrast, any attorney could draft a simple will, anything more complicated that should be handled by an estate planning specialist. Many rules govern the preparation of wills, trusts, and other estate planning documents, so you want to be sure everything is done correctly and efficiently.

2. What Do You Charge for Your Services?

No doubt, this is already on your mind, and it’s perfectly acceptable to ask about the attorney’s fee structure. Some attorneys charge a flat fee for estate planning, others charge by the hour, or they may offer both options.

3. How Long Will It Take to Draft My Estate Plan?

With any legal service, it’s always good for both lawyer and client to be on the same page concerning how long the process will take. Attorneys are used to working on longer time lines and sometimes forget to communicate this to their clients. Estate planning is a fairly straight-forward service, so an attorney should be able to give you an accurate estimate.

4. Can You Create a Comprehensive Estate Plan?

A comprehensive estate plan involves more than just a will. You may want to prepare trusts, powers of attorney, life insurance documents, and more. A good estate planning attorney should be able to assist you with any of this, and provide you with guidance to decide on the best course.

5. Do You Offer Periodic Reviews of My Estate Plan?

Estate planning may seem like a “one and done” process, but it’s important to check periodically that everything is up to date. Life events such as marriage, divorce, and children will likely profoundly affect your estate planning goals. Many attorneys offer a periodic review for a set fee, so it’s good to ask about this service.

6. What Happens If You Retire or Change Firms?

Hopefully, it will be many years before you pass away and your estate plan goes into action; it’s possible that, in the meantime, your attorney retired, moved to a different firm, or even passed away themselves. However, estate planning lawyers should have a plan in place for this eventuality, and it’s important to find out what it is for your peace of mind and to make things easier for your loved ones.

Schedule Your First Meeting

Now that you have some questions prepared, the next step is to schedule an appointment. At Hoffman & Forde, our estate planning team has years of experience helping clients craft plans that meet their unique needs. We are at your disposal to answer any questions and to get the process started right away. Contact our office to set up a consultation.

The Different Types of Power of Attorney

Posted on January 27, 2023 by - Estate Planning

attorney and older clients

Power of attorney (POA) is a very useful legal instrument that authorizes someone to make decisions on your behalf. Similar to an executor who has the power to handle your affairs after you pass away, the person to whom you grant power of attorney (called an “agent” or “attorney, in fact”) has the power to handle things while you are still alive. Contrary to what the name implies, this other person does not need to be an attorney or even have any special skills. Additionally, there are different types of power of attorneys.

Creating one or more POA documents is a common component of estate planning, as it helps protect you, your family, and your property in certain situations. Here are the different types of power of attorney you should know.

Durable vs. Non-Durable Power of Attorney

You may have heard the term “durable power of attorney” before. It means the agent can act on the principal’s behalf even if they become incapacitated. (“Incapacitated” means you can no longer make decisions on your own.) On the other hand, non-durable power of attorney ends when the principal becomes incapacitated. So, for example, if you were to grant POA to your stock broker so they could make trades on your behalf, it would usually be a non-durable POA.

Springing Power of Attorney

Whereas power of attorney usually goes into effect immediately upon signing, a springing power of attorney only becomes effective once certain conditions are met. Most commonly, it becomes effective in the event the principal becomes incapacitated.

While springing POA makes sense in theory, it can create complications and delays. This is because incapacitation is not always clear. For example, if the principal has dementia or has a brain injury, there may be disagreements as to whether they can make their own decisions. In the meantime, medical bills and other affairs that must be managed could be piling up.

General Power of Attorney

In California, a general power of attorney allows the agent to handle any of the principal’s financial affairs, such as paying bills or selling real estate. However, a general POA does not authorize the agent to make healthcare decisions. Typically, this POA is non-durable, meaning it ends if the principal becomes incapacitated.

Limited Power of Attorney

Limited power of attorney also usually relates to handling financial affairs but is restricted in scope. For example, if you own an apartment building, you might grant a limited POA to a property management company to enter into leases, pay bills, etc.

Medical Power of Attorney

A medical power of attorney allows the agent to make healthcare decisions on the principal’s behalf if incapacitated. This can include anything from regular checkups to end-of-life care. Often, the principal will have previously created some healthcare directives defining what they want to happen in certain situations, such as whether to continue life support if they are in a vegetative state.

Choose the Right Power of Attorney

Regardless of which type of power of attorney you might need, a power of attorney should be an integral part of your larger estate plan. Speaking to a lawyer is usually the best first step in determining what POA documents are right for you and ensuring all contingencies are covered.  

Speak with one of our experienced professionals. They will review your current situation, and help you design a strategy to meet your needs. Contact our office to get started.

Estate Planning Mistakes and How to Avoid Them

Posted on January 17, 2023 by - Estate Planning

Estate Planning Attorney with clients

Estate planning is a unique area of law. It’s not adversarial, so it’s relatively easy to accomplish all your goals, but if you make any mistakes, you won’t be around to fix them. For this reason, it’s essential to put a lot of thought into every aspect of your estate plan and benefit from a professional’s advice.

To help you understand your estate planning needs, we’ll go over some of the most common mistakes people make and how to avoid them.

1. Waiting Too Long

This is easily the most common mistake people make. Even though most people recognize the need for an estate plan, it is easy to keep putting it off. None of us enjoy contemplating the prospect of our death, but it will happen someday, and it’s not always as far in the future as we might hope. An unexpected death is tragic enough; failing to leave a clear plan for your estate only makes things harder for your loved ones.

How to avoid: Stop delaying and start thinking seriously about your estate plan. It’s not as time-consuming or expensive as you might think.

2. Failing to Minimize Tax Burden

Every person wants the maximum portion possible of their estate to their beneficiaries and the minimum amount possible to the government via taxation. However, with a little guidance, it is possible to minimize your estate’s tax burden or avoid taxes altogether.

How to avoid: Not all estates will be taxed, so it’s important to first out if all or portions of yours could be taxed. If so, various means, such as living trusts and charitable donations, could reduce or eliminate those taxes. This is best accomplished with the aid of an attorney.

3. Drafting Complex Documents on Your Own

It is possible to create a straightforward estate plan with a fill-in-the-blank will, you find online, but it’s not always a good idea. It may work for someone with few possessions and very specific wishes about who should receive their property after they die. Still, the larger and the more complicated the estate, the more problematic a DIY approach is likely to be.

Because the decedent is not around to answer any questions, estate law is full of formalities that must be followed to prevent mistakes and fraud. This is especially true when it comes to more complicated procedures such as creating a trust. If done improperly, the probate court may set aside your documents and come to its own conclusions.

How to avoid: If you are working on your own estate plan and you’re not sure if you are doing something correctly, it’s a good indication you should speak to a professional. You should talk to an attorney if you have a large estate.

4. Not Naming an Executor

An executor is tasked with putting your estate plan into action after you pass away. For example, if your estate includes a home or real estate, the executor will have the legal authority to transfer the deed or sell the property as appropriate. If you don’t name an executor in your will, the probate court will assign someone to the role. However, that person may not be the one you want to take on the task, or they simply may not be up to the responsibility.

How to avoid: Choose someone capable and trustworthy to be your executor, discuss the situation with that person, and name them your executor. If you’re unsure who to designate or if your estate is particularly complex, having your attorney act as executor may be a good idea.

5. Communication

Depending on the nature of your estate, there may be potential for conflict between beneficiaries after you pass away, which is the last thing most people want as their legacy. The most common root cause for such conflict is when someone fails to communicate their wishes while still alive, leading to surprise, resentment, and confusion.

How to avoid: Simply speaking to people in advance (including those who might be disappointed by your plans), giving them notice, and allowing them to ask questions can clear up many problems and reduce the likelihood of conflict later.

Consult with a Professional

With your legacy on the line and no ability to correct any mistakes after you’re gone, the best choice you can make is to sit down with an estate-planning attorney. You can ask questions, identify issues that may not have occurred to you otherwise, and create a comprehensive estate plan that accomplishes everything you want.

To start the process, schedule an appointment today.

Estate Planning Checklist: What You Should Know

Posted on November 18, 2022 by - Estate Planning

Estate planning meeting

Everyone should have an estate plan—we are have at least some possessions to pass on—yet most people will put off creating an estate plan as long as possible. It’s easy to understand why, but the fact is that while it’s never too early to make an estate plan, someday, it will be too late.  If you’re reading this, the issue is already on your mind. So here’s a must-have estate planning checklist to help you get started.

1. Make an Inventory of Your Assets

The first step in any estate plan is determining what makes up your estate. Once you sit down and start making a list, you may be surprised by how many assets you have: your home, furniture, vehicles, collectibles, insurance policy, etc. So don’t worry if you can’t create a comprehensive list on the first go; think of it as a working document you can add to as new things occur.

Take special care to identify property that other people might not know. For example, cryptocurrency can easily be lost when a USB drive is tossed into the trash. Include information on where these assets are located, passwords, etc.

2. Decide Where Your Property Should Go

Once you know what your estate consists of, think about who you’d like to receive that property after you’re gone. For some people, it is simple; they want their surviving spouse to be their sole beneficiary or have the estate liquidated and divided equally among their children. Others may wish for a specific property to go to certain people or to give money to a charity.

It would also be beneficial to start thinking about how you want to transfer the property or plan for specific scenarios at this stage. For example, if you have minor children, consider what will happen if you die before or after they reach adulthood. Or perhaps your spouse is not the biological parent of your children, and you want them to have continued use of your home during their lifetime and then pass it to your children.

 3. Consider What Happens If You’re Incapacitated

If you are incapacitated, someone will likely need to make decisions on your behalf. For example, if you are severely injured in a car accident, someone may have to make financial decisions for you or even decide whether to continue life support. Thinking about these scenarios in advance can relieve the burden on your loved ones and ensure your wishes are respected.

4. Draft the Documents

After having defined your estate and decided what to do with it, it’s time to create the necessary documents. A wide variety of legal instruments are available to accomplish virtually any estate planning goal. For some, this may consist only of a simple will and perhaps a medical directive. Others may require more complicated measures, such as setting up a trust. You may already have some assets, such as insurance policies or retirement plans with named beneficiaries; verify that those beneficiaries match your current wishes.

At this stage you should also consider who you would like to be appointed as executor of your estate. This person will have a lot of responsibility—e.g., selling your property to distribute the proceeds—so choose someone you trust who is up to the task. A judge will decide who to appoint if you don’t name an executor.

5. Review Your Plan Regularly

An estate plan created when you were 30 years old may not be sufficient when you are 50. Periodically revisit your estate plan to see if your inventory of assets is up to date or if you need to change your beneficiaries. This is especially important after significant life changes, such as divorce.

Before You Begin, Speak to an Attorney

Estate planning is about peace of mind. You want to know that your loved ones are taken care of and that your property goes where it should. However, doing it on your own presents risks because if the documents are not prepared correctly, they may be challenged in court. Also, you may miss out on simple ways to minimize your estate’s tax liability.

Talking to one of our experienced estate attorneys will simplify the entire process and ease your mind. We can help you evaluate your estate and create a comprehensive plan that covers your needs. Contact our office to set up an appointment.