Author: Laura Pennington

Millennials and estate planning sounds like it might not necessarily go together but far too many millennials jump to this conclusion and their family members are left dealing with the aftermath. No matter how much money is generated over the course of a lifetime, it is not real wealth if it is not effectively transferred to future generations. Estate planning is one of the most neglected aspects of wealth building and personal finance today, even among high-income professionals and successful entrepreneurs. 

An increasing number of both of these individuals happen to be millennials. Many people assume that they are neither rich enough nor old enough to make estate planning a top priority. Millennials are managing their money just as effectively as baby boomers and generation X, according to recent studies, may have a lot to lose falling for this myth. Estate planning can be a misnomer because it does seem to imply that it is only for the wealthy, leaving far too many of these millennials to ignore the estate planning process and expose themselves and their family members to problems in the event of an accident.

Sudden incapacity or death of millennial without an estate plan can lead to probate disputes and other problems after the fact. Estate planning is simply a prudent look ahead to protect family members and loved ones in the event that something unexpected happens and is increasingly important for millennials who are garnering more and more wealth in the current economy.

 

Have you put off an estate plan because you don’t think you need it? Far too many families wind up dealing with the impact of a loved one’s loss without any planning in place. 

Many people don’t realize the value of estate planning until it’s too late. Most people set up their initial consultations with an estate planning attorney after they’ve had a negative experience with a friend or family member, or perhaps after they have seen a news about a celebrity’s death that prompted numerous estate planning issues.

Estate planning involves so much more than simply ensuring that your stuff ultimately gets passed on to your loved ones.

It might be easy to think of estate planning as simply putting together a will and outlining how your physical possessions will pass on to future generations, but you should consider that a good estate plan takes care of you during the course of your life, as well as your individual family members after you pass away.

Tools like wills, trusts, powers of attorney and more can help to articulate the individual decisions and desires you have if something were to happen to you unexpectedly. The right estate planning attorney is an invaluable asset as you navigate these complex processes and articulate a plan that protects you and your loved ones now and well into the future.

The new federal exemption amount has increased as a result of the new tax law, which means that the amount you or your estate can pass on to your heirs free of taxes has increased to approximately $11 million this year from $5.49 million in 2017. 

An existing will that already includes a reference to the federal exemption amount rather than a specific amount for calculating children’s inheritance could mean that more is going to the children and less to your spouse than intended. If you intend to pass on significant wealth to your children and your spouse, you may need to consider reevaluating estate plan based on the wording inside your will. Your spouse could end up with a smaller portion of your estate than you intended due to the new estate tax rules if you have unclear wording in your will. For wealthy individuals who have wills drawn up prior to 2018, there’s a chance that no specific dollar amount is included directly inside the will. This means that it may not be clear how much money goes into a trust for your children.

Rather, the will might refer to the current federal estate tax exemption amount which has changed since you put together the original will. This is why it is worth scheduling a consultation with an experienced estate planning lawyer as soon as possible to give you the clarity you need to restructure your will or include new wording that is clear.

 

Eleven years after the death of James Brown, his estate planning has fallen short in the plan to distribute his wealth efficiently. None of the beneficiaries in the will have received even a dime of the money. This includes underprivileged children in South Carolina and Georgia. Mr. Brown intended to donate significant amounts of money to these entities, however, a number of legal disputes have emerged and kept the estate dispute alive for more than 10 years. A dozen separate lawsuits related to the estate were initially filed after Mr. Brown passed away in 2006 on Christmas Day. The most recent of these was filed last month in California. 

Nine of the children and grandchildren of Mr. Brown are suing the widow and the estate administrator, arguing that copyright deals made by the widow were improper and illegal. Another lawsuit alleges that the widow was not actually ever James Brown’s wife. His will initially set aside $2 million to underwrite scholarships for his grandchildren and it gave his household effects and costumes to the six children he did recognize, a bequest that was estimated approximately $2 million.

The will was challenged, however, and an initial settlement was proposed that would give the children and grandchildren a quarter of the estate and the widow another quarter. However, that was overturned by the Supreme Court due to asset distribution that did not appear to be in line with James Brown’s original goals.

Second marriages can be rewarding and fulfilling, but they can also introduce a whole new spectrum of financial problems if they don’t work out. Thankfully, in combination with pre-nuptial and post-nuptial agreements, estate planning can help to plan ahead just in case. Unfortunately, with second marriages facing a divorce rate of more than 60 percent, those getting married for the second time should definitely consider what to put in place to protect themselves. 

The benefit of using estate planning tools in a second marriage is that even if the marriage is successful, it will end at death. In a second marriage, this can make for some tense moments between adult children and the second spouse if estate planning hasn’t factored in these concerns. The new spouse, for example, may want to have stable living arrangements, but children from the first marriage may expect that they’ll be receiving property from their deceased parent.

One such solution to make everyone happy is known as giving the surviving spouse the “right of occupancy” in the house that the couple shared. A will or trust can do this and it gives the second spouse the chance to live in the house for a fixed number of years, until he or she passes away, or until he or she voluntarily departs. This may be important for second marriages because it addresses the short term concerns of the surviving spouse while ultimately giving the property rights to the children from the first marriage. Incorporating this into an estate plan reduces the chances that further litigation will make the situation more complicated. Reach out to us for advice on protecting and planning for the future at info@lawesq.net.

A new study shows that the majority of families with a business don’t have a successor in place and that many parents are not even confident about whether they want the children to take over the company in the future. Failing to set up a conversation to consider these concerns can be devastating for a company. 

According to the research, only 27 percent of family-owned businesses had a succession plan in place with regard to senior management positions. What’s most disconcerting about these findings is that two-thirds of the surveyed owners were over the age of 50. Only half of those who completed the survey were thinking about passing the business on to the next generation in their family.

What this indicates is that many people are questioning their next move, but waiting too long to have the conversation with relevant stakeholders. Although people are living longer these days, planning should be done well in advance of possible healthcare issues or a voluntary exit from the business. The conversation involving children and their interest and ability to participate in running the business should happen as soon as possible. Waiting too long leaves the door open for a critical event like a disability or death to raise a lot of questions very quickly.

You don’t have to arrive at a final answer right away, but it’s valuable to think about the future even if you’re not sure whether children will be taking over. Contact an estate planning expert to help you initiate this conversation today. Send us a message to learn more about planning for your family business at info@lawesq.net.

There are two main approaches to Medicaid planning. The first is known as crisis planning, where an individual is facing the risk of losing all their assets by paying for care in a facility. The second refers to planning ahead of time and this is known as pre-planning.

If you are healthy enough, one popular option is to select long term care insurance because of the flexibility that it provides. Even if you are not eligible for long term care insurance or find that it’s too expensive at your level of health, there are other options to help you protect your assets. In many cases, this advanced planning can help to save most, if not all, of the senior’s assets.

The good news is that there are multiple planning options available for you, but that they can be tailored to your family. The key is learning what tools are available for your family and talking to an estate planning attorney to determine what’s right for you. Having an experienced elder care attorney on your side can help you protect your assets against a possible long term care crisis.

While crisis planning can also be done, you will have enough on your mind in a crisis situation when facility care is needed. That’s why it’s best for everyone to evaluate their needs in advance and to plan ahead with regard to Medicaid. It’s never too early to start thinking about your health and your needs in the future- set up an appointment to walk through it with us at info@lawesq.net.

Single parents have a lot on their plates, but skipping over estate planning and tax planning is a bad idea. Many people overestimate the amount of time they’ll have to dedicate to the process, but investing some time to meet with a specialist and accomplish your planning is a valuable process.

You play a critical role in the life of your child or children, and while it’s hard to think about what life would look like if something happened to you, you must consider a range of factors like:

• Who would take care of the children?
• Do you have plans for your death as well as possible incapacitation?
• Who would be in charge of managing their food, education, and housing?

Although each situation is unique, there are several estate planning options that tend to align well with the needs of a single parent. These include:

• A will. Although it’s often the most basic for of estate planning for anyone, it’s critical to name who will be responsible for your estate. You may also use this to nominate a guardian to care for your children.
• A revocable living trust. Living trusts gives you the power over the assets inside while you are alive but empowers another individual if you become incapacitated or pass away. This is very beneficial because even an older teenager is not likely equipped to manage a big inheritance and a living trust can outline provisions to address these concerns. A side benefit of this approach is that it avoids probate, saving your heirs time and money.
• Power of attorney and health care directives. You need these regardless of your age or health condition. It’s simply a good idea to name someone who has the ability to make critical decisions on your behalf should something happen to you.

Talk to an estate planning specialist to uncover the estate planning tools you need to accomplish your goals. We’re here to help- send us a consultation request to info@lawesq.net.

 

As people grow their wealth, they often forget about the fact that it can be exposed to major risks if not planning properly. Some of the most common threats to wealth include lawsuits, bankruptcy, or divorce, but an individual may only realize just how harmful these can be after it’s too late. Using trusts, LLCs, or other entities, your assets can be protected from these dangerous threats.

Typically, a basic approach to asset protection is to guard assets from lawsuits first. Yet, as it mentioned in this Time article talking about building wealth, clients are often not convinced about the benefits of doing this even when it’s brought up by a professional. In many cases, the hesitation has to do with the way you think about money. 

Some of the common thoughts that clients who have built wealth have when the planning conversation happens include:

• “I already have liability insurance; isn’t that enough?”
• “Asset protection planning is only for extremely wealthy people.”
• “Asset protection seems shady.”
• “You won’t be sued unless you’ve given someone cause to come after you.”

Although these are thoughts held by many Americans, there are flaws in their logic. In an ideal world, these reasons might cover your bases, but that’s not the world we live in. The reality is that without asset protection planning, you are exposed to a tremendous amount of risk. Trying to plan in the moment of crisis doesn’t do you any favors. Asset protection planning should be approached early to avoid the catastrophic outcomes that can been through bankruptcy, divorce, lawsuits, and other problems. To start planning today, contact us at info@lawesq.net.

A New York woman is making headlines because she hasn’t included her sons in her will, opting instead to leave everything to her dog. The assets in question? Worth $1 million. Rose Ann Bolsany believes that her Maltese Terrier Bella Mia, now three, deserves the world, and she’s set up her estate planning to ensure that the pooch receives it. 

The dog has grown accustomed to quite a high standard of living already, wearing styled outfits and having steak for dinner, and that’s to say nothing of the room she has to herself.

Rose Ann’s behavior might come across as lavish, but she’s not alone in stressing the importance of pet planning. On the other side of the spectrum are the sad stories about dogs and other pets who are caught in limbo after their owners die. Planning ahead with pet trusts can help to provide for their care and establish guidelines about what happens next.

If you think you need a pet trust, whether large or small, contact our offices for a consultation today. We understand that pets are members of your family, too. Schedule an appointment right now over email at info@lawesq.net.