Archive for the ‘ Wills ’ Category

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An Overview of the Types of Wills

Tuesday, November 22nd, 2011

Planning your will is one of the best things you can do for your estate, as well as for your heirs. The question is what is the first step? Before you can make decisions regarding the creation of a will, it is critical to understand what your options are. Numerous types of wills accommodate most desires and wishes within the letter of the law specific to your state.

In short, all wills are documents that legally outline your goals for your estate. There are various ways to make those wishes take place.

  • A Simple Will covers basic needs. This includes the distribution of assets, and is often preferable for those with limited assets and smaller estates.
  • A Guardianship and Trust is a document outlining your goals for your children, including those children who are minors, or those who are disabled and unable to care for themselves. This document will specify your instructions in terms of who will take guardianship of the children, as well as who will manage the children’s estate after your death. This includes all funds and assets you plan to leave to your child after your death.
  • Revocable Living Trusts are another type of will planning tool. This will allow you to create assets that pass on to your heirs according to your wishes, but that do so by avoiding probate court. If you wish to leave money or assets to family, friends or charities, this is a good way of reducing tax implications on the funds. You can also change these trusts throughout your lifetime, as you need to.
  • Pourover Wills are yet another type of will. It compliments a revocable living trust by addressing any assets that are not included in the trust. It works to transfer those assets into the trust at the time of your death.

Selecting the right type of will is a complex process. Because of taxes and legal requirements that do change frequently, it is up to you to choose the right will for your goals and based on the size and type of estate you have. It is always a good idea to work with a trusted attorney for this process since the attorney ensures the will is legally binding and fills all necessary requirements. If a will is not valid, anything you planned for will not occur. To ensure this does not happen, plan to create the right type of will for you with an estate planning attorney.

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How a revocable living trust helps avoid probate

Tuesday, November 8th, 2011

When someone passes away, the last thing the family members and loved ones want to do is start on a long, drawn out process to settle the estate.  If you would like to avoid this situation, especially if you have large estate, you should consider the benefits of a revocable living trust as a means to minimize the process.  Remember, probate takes time, sometimes lasting several months before it is settled, and a year is not out of the question. Do you want to have your heirs wait that long before your assets are distributed?

Overview of the process

Probate administers the estates of deceased individuals. It takes care of all claims under a valid will. Probate decides on the instructions of the deceased and decides upon an executor of the estate. It also decides upon the interests of the heirs and others claiming interest in the estate.  Probate takes time and can become quite costly and time intensive, but one solution for avoiding probate is to create a revocable living trust.

What does the trust do?

The trust takes your property and transfers it to another party (the trust) for the benefit of a third party (your heirs). The trustee hold legal titles and your heirs hold equitable titles in the property, and has a fiduciary responsibility to the heirs.

The rules governing trusts are set down when the trust is created.

Trusts can and will do the following:

  • Pass assets to heirs without probate
  • Save time and money
  • Plan for possible incapacity or disability
  • Allows the grantor to act as trustee
  • Be amended, altered or revoked

Trusts will not save on estate taxes and state inheritance taxes. The cost of the trust should also be weighed against the cost of probate, but often times you will find one clearly outweighs the other, especially when you factor in the time and hassle factors.

The use of revocable living trusts has become more and more popular. It is an option you should consider in planning your estate.

And don’t forget to contact Flanders and Wade –Attorneys at Law for help.

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Why a Living Will May Be Right for You

Wednesday, September 7th, 2011

A living will can also be known as an advanced health care directive, and is part of a family of such directives with different names but all with similar or the same goals. They will give you control over your advance health care decisions.

What is a living will?

A living will is the oldest version of an advanced health care directive. It was first suggested in 1969 in a law journal by Luis Kutner, an Illinois attorney. It originally drew from existing estate law at the time, whereby a person could control the distribution of his or her assets after death.

The living will brought forward the concept of an individual controlling his or her health care decisions in the case where that person can no longer indicate what they want done with their health care. It became a form or “will” used while the person was still alive and therefore a “living will”.

What is a living will used for?

A living will details specific instructions about health care treatment to be followed by health care providers and caregivers. Sometimes it will forbid the use of certain medical treatments. It may also tell providers and caregivers about the use of food and water. It is used when the principal is incapacitated or unable to provide informed consent. The instructions in a living will can be either fairly general or very specific.

Information regarding a person’s wishes for services such as pain relief, antibiotics, hydration, feeding, resuscitation, and the use of ventilators may be included. People are more likely to complete a living will if they avoid the use of technical jargon.

Benefits of creating a living will

Living wills and other advanced health care directives arose as a result of advanced in medical technology and sophisticated medical means to sustain life. There is evidence that dying in a medical facility can be unnecessarily prolonged, painful and expensive.

  • Ensure your wishes are followed in the event of an unforeseen medical emergency
  • Protect your dignity as a patient
  • Establish boundaries or limits that address the financial burden on families which can be considerable.

If you want more information or need to speak with an attorney about a living will in Northern Virginia, contact the Law Firm of Flanders and Wade for a free consultation.

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5 tips for creating a great last will and testament

Monday, August 15th, 2011

When it comes time to create a last will and testament, you will most likely have many things you want to say and accomplish, especially as it related to your family and your assets. But when you actually begin to put those thoughts onto paper, you may feel like you are forgetting something. In fact, this is something that many people worry about – the details of their will and not having things well thought out and planned in advance.

What should you be focusing on while creating your last will and testament? The following is a good place to start.

5 tips for creating a great last will and testament

  1. Make a comprehensive list of all of your assets. This should include both physical assets like your homes as well as money and investments.
  2. List all of your beneficiaries. These people will receive something from you after you pass on. You may wish to list who will get what, but at this point, it is a good first step to just know who you want to honor through your will.
  3. Who will be your executor? This is the person who will execute your will after you die. This person should be someone that you trust to do a good job, a job that is reflected as what you wish to happen (rather than his or her wishes.)
  4. Consider your needs for doing more than just planning a will. In many cases, you may want to do more than just list your assets. You may wish to protect those assets. Discuss options for creating a living trust.
  5. Consider what you should not put into your will. A will is a good place to leave behind assets, but it is not the only option for telling your story. Use a living will to discuss what you want and why you want it in full. Keep in mind that you do need to ensure all of your wishes are clearly stated in a legally binding way, according to estate planning laws.

For many people, the last will and testament is one of the most important ways to ensure that after they die, there is some type of organization and management about their assets. Realize that you should have an attorney with extensive estate planning experience construct your will for you. This is the best way to ensure that your will is going to be legally binding after your death and therefore your goals and needs will be met as a direct result.

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Internet Wills

Sunday, May 2nd, 2010

People often ask me if they should use an online will/trust package and avoid the time and cost of an attorney.

I always tell them that there are two good reasons:

  1. First of all, these packages are notoriously general and vague by necessity.  In order to sell them in all jurisdictions (most claim: “Valid in all fifty states”), they either remove state specific provisions or add things that you probably don’t need in order to comply with some other state’s law.   You end up with documents that may (repeat, may) be valid in Virginia but are not crafted to specifically comply with Virginia law.
  2. Secondly, unlike other products or services you can get on the internet, you cannot “test out” this product.  “Do it yourself” legal documents might be valid and they might not.  This is why all internet legal document sites try to avoid future liability by telling you in the fine print that you should have their documents reviewed by an attorney to make sure they have been properly completed – knowing full well that no one will do this.  If you don’t do it, your heirs are likely to be the first to discover a flawed will after your death.

I tell people that they can go online and find instructions for removing their own appendix, but that doesn’t make it a good idea.  You may do more harm than good.  When you need medical attention, you should look for a good doctor.  When you need legal representation, should look for a good lawyer.

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What is a Pour Over Will?

Tuesday, April 6th, 2010

A Pour Over Will is the type of Last Will and Testament that accompanies a Revocable Living Trust.  As wills go, this type of will is relatively simple since most of the complicated details are specified in the Revocable Living Trust.  For the most part, a Pour Over Will only has one beneficiary.  That beneficiary is the Revocable Living Trust which was created at the same time.  Of course, if the Trust has been funded correctly, very little will pass through this will.  The Pour Over Will simply serves as a safety net to capture any assets which have not been transferred to the Trust prior to death.  Also, if minor children are involved, the Pour Over Will can also be used to name potential guardians in the event of the deaths of both parents.

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