Articles Posted in Estate Planning

Many people associate estate planning with the extremely wealthy, but in reality, most people benefit from creating a strategy for how their assets should be handled. Anyone who has anything to leave behind needs to create an estate because an estate plan will function as a guidebook for how anything you leave behind should be handled. 

This article reviews some of the most critical reasons why people should consider engaging in the estate planning process.

# 1 – Estate Planning Can Include Documents of Varying Purposes

As Bill Gates prepares to navigate the divorce process, divorce has again entered the public consciousness and caused many people to question the nature of how marriages dissolves and how it impacts various aspects of our lives. One often overlooked aspect of divorce is how it can impact overall plans for the future. 

To minimize the potential impact that divorce has on their lives, many high-power couples including Bill and Melinda Gates enter into settlement agreements. Even ordinary couples, however, discover that divorce has the potential to impact their estate plans. This article discusses some of the most important issues that couples should consider about how divorce can impact estate plans as well as what you can do to make sure that your estate plan continues to achieve your goals.

Life Insurance

Perhaps at the beginning of your marriage, you met with an estate planning attorney. If children have recently entered your life, however, it’s important to make sure that your estate plan contains various important details. This article reviews just some of the most key considerations that you must have if you plan on updating your child’s estate plan.

# 1 – Address Who Would Function as Guardian

It’s critical to make sure you consider who would take care of your children if they were still young when you and your partner passed away or become incapacitated. If you have not made these arrangements, you are leaving your child in a vulnerable position.

In the recent Texas case of In Re Estate of Tillotson, the administrator of a deceased individual’s estate filed a motion to have the deceased individual’s husband turn over the deceased individual’s community property interest in several accounts. When the trial court granted the motion, the surviving spouse appealed. 

The court of appeals found that the administrator had the power to file a motion seeking partition of community property. The appeals court noted that the state’s estate code provides that an executor or administrator through a written application can request the partition and distribution of an estate. The court also noted that if an intestate deceased spouse survives a child, the deceased spouse’s undivided one-half interest in the community estate passes to the deceased spouse’s children. 

The appeals court went on to discuss the Texas estate code that permits a surviving spouse to seek a partition but noted that this code does not make this right exclusive to the surviving spouse. Consequently, the court of appeals affirmed the trial court’s order.

If you decide to create a trust as part of your estate plan, there are various tasks that you must successfully navigate including appointing a trustee who can oversee the trust. A trustee performs the critical task of both managing the trust and distributing assets in a manner that conforms to the trust’s terms. 

While a trustee performs a critical task, many people have misconceptions about the role. For example, some people think that picking a friend or family member to serve as a trustee is a wise idea because it’s a potentially cost-effective option. In reality, there are some distinct benefits to selecting a professional trustee. This article reviews some of the important to consider when deciding whether to select a professional trustee or a loved one to function as a trustee for your trust.

Experience Can Prove Helpful

Estate planning is a critical process in planning for your eventual death or incapacity. Unfortunately, however, too many people neglect estate planning or do the bare minimum. In reality, however, to make sure that your goals are achieved, it’s critical to treat estate planning seriously. This means engaging in activities like routinely updating your estate plan and speaking with an estate planning attorney if you have concerns about your estate. To make the most of your estate plan, it’s also a good idea to consider the various wise asset location strategies that you might utilize to make the most of your estate. 

What Qualifies As “Smart” Can Change

To a degree, smart asset location is subjective. While one person might decide that their assets should only pass on to charity, another individual might decide to pass on their life savings to their children. Often, it’s not the question of how much is left behind but instead what is left after a person’s death or incapacity and who receives what. 

Senator Bernie Sanders recently introduced the “99.5% Act”, which is focused on the assets of the top 0.5% of wealthy Americans. This marks the first legislation introduced following President Joe Biden’s coming into office that would result in the lowering of the federal estate tax exemption. For many people interested in passing on assets to loved ones, it’s critical to understand the nature of these changes.

Changes Introduced by the Bill

The bill would lead to several critical changes in many of the country’s federal tax provisions, which include: