Why would someone need an estate plan?

Posted by on Feb 25, 2016 in Estate Planning | 0 comments One thing in life is certain, death comes to us all. While none of us like to think about dying, the fact is that improper or no planning leads to family disputes, assets going into the wrong hands, long court litigations, large amounts of dollars in federal tax and not to mention all those fees spent on probate. Having an estate plan is the best way to ensure your wishes are adhered to, and the people in your life who you love are not only taken care of, but don’t end up turning on each other. Is money really the main concern? Absolutely not. Estate Planning is about preparing for your life and leaving your legacy. If you were in an accident and incapacitated, wouldn’t you feel better knowing you already elected a person to handle your medical decisions and that person knows your wishes? The same goes for your financial decisions. If you don’t choose, then the state will choose for you. We as consumers often hear about probate, but what does that mean? Probate is the court process of administering a deceased person’s estate. Because it is a court process, it is a matter of public record. Public record means anyone who wishes to look, has access to some of the most private information. For example, this is how creditors find the information they need to collect from estates. When you hear about families being left with nothing but debt – that is what they mean. Avoiding probate is the same as protecting your beneficiaries. What happens if you don’t have a will? If your estate is unprotected upon death, then the state in which you die determines how your estate is to be administered. It has to go somewhere right? The process is called “intestate succession.” And let me assure you, while the laws are written to protect, often times things happen under the state laws that we would never in a million years want to happen. When should someone consider having an estate plan drafted? There are 9 life events that trigger either the drafting of a plan or the reviewing of an existing plan. 1.    Marriage 2.    Re-Marriage 3.    Divorce 4.    The Birth of a Child 5.    The Death of a Beneficiary 6.    Illness or disability 7.    A substantial increase in assets or income 8.    Moving to another state 9.    Changes in state law...
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Estate Planning Is Only Useful When You Have A Plan!

Posted by on Jan 21, 2016 in Estate Planning | 0 comments Most people tend to think that estate planning is for the wealthy or for the elderly. This is a serious falsehood. No matter your stage in life or the amount of your accumulated wealth, estate planning is an essential tool. Because state law does not mandate estate plans like they do insurance in some instances, people forget to utilize this helpful set of documents. When something is not forefront in our minds, we delay acting. Estate planning is only useful when you have it in place and no one knows when the time will come that it is needed. What if you had a horrible accident and became incapacitated tomorrow? Have you appointed a health care and financial power of attorney who you trust and who knows your wishes? Would you be comfortable with the state deciding who will have this privilege? If the answer is no to both of those questions then you should consider getting a plan in place now before something happens. Below are some additional guidelines concerning basic estate planning. A Proper Estate Plan Is Crucial Regardless of Net Worth: This is true for everyone but especially for those folks who are responsible for a lot of other people in their lives. Think of it this way, the less you have, the more important every penny is. Mistakes are more tolerable for those with money. You don’t want to leave your loved ones with massive amounts of debt and no plan to be able to deal with them. Even if debt is all you have, you still need a plan and there are ways to secure a plan for debt. Get ahead of it so you are in control of the debt instead of the debt controlling you. Talk With Your Family And Friends About Your Wishes: When a person dies and they have not discussed their plans with their beneficiaries or family, almost always this creates serious conflict. When people are fighting over the terms of your estate, it can delay beneficiaries from receiving inheritances for months or even years. Instead, include your family in the decision process by having candid conversations. This allows them to feel secure about the future and also allows for family members to accept decisions that may not be what they wanted or had in mind. Discussing your plan prevents conflict and allows the family to heal and properly...
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Why Estate Planning is Important for Women

Posted by on Nov 22, 2015 in Estate Planning | 0 comments Despite your age, gender, or wealth, estate planning is vital for everyone. That being said, estate planning may be more important for women than it is for men. 1. Women tend to live longer than men Recent statistics show that, on average, a woman will outlive her husband by seven years. Additionally, the average groom is 2.3 years older than his bride. That means women need their assets to last longer than men do. It also means that wives are probably going to outlive their husbands, so they will likely inherit their husbands’ estates, and they will probably have the last word about the final disposition of assets going to the couple’s heirs. 2. Women tend to earn less during their lives than men Full-time working women earned only 81.2 cents for each dollar a man earns, according to the latest statistics. Also, women work fewer years than men in order to care for home and family, further reducing their ability to save. Simply put, women earn less money over their lifetimes than men. Because women must plan to make fewer dollars last longer, it’s important for them to get sound retirement planning advice. 3. Most custodial parents are women Approximately 84% of custodial parents are women. Women who are parents of young children need to plan for the continued care of those children if something unforeseen should happen. They also need to determine who will handle the children’s property until they are older. 4. Women are business owners Women own more than 8.6 million businesses in the US, generating revenue of $1.3 trillion each year. Women who are business owners need to protect their assets and plan for the succession of their businesses. 5. Women are professionals Women make up 57.5% of professional occupations. Women in professions with high litigation risks like medicine, law, and real estate, can benefit from asset protection planning. 6. Women are wealthy Women control $14 trillion in assets  and three-fourths of the financial wealth in the United States. It’s important for women to get sound investment, charitable giving, and tax planning advice. Estate planning is the only way through which a woman can ensure that this wealth is distributed according to her wishes upon her death. They say men are from Mars and women are from Venus, but is this true when it comes to estate planning? Absolutely. Women should make special considerations...
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9 Life Changes That Require An Estate Plan Review

Posted by on Oct 3, 2015 in Estate Planning | 0 comments Updating your estate plan is probably something you don’t think about too often. It actually is probably the last thing you think about, but when it matters, it is the most important thing. As painful as it is to consider, estate plans are critical. If anything happens to you, it’s important to know your loved ones are taken care of and your wishes are honored. Throughout life, those last wishes change with the major events you go through. Here are nine of the biggest life changing events that signal when you need to update your estate plan. 1. Marriage Did you know your spouse may not be the sole beneficiary or heir of your estate? Depending on the state where you live at the time of your death, who is entitled to benefit from your estate after your death is up in the air without a solid estate plan. For example, stepchildren do not inherit from step parents by default — in most, states they have to be specifically named in an estate plan. To ensure your spouse, or anyone else gets particular belongings from your estate, you must outline it in your plan. Whenever you get married, take a look through the dispositive provisions of your estate plan and make any necessary adjustments. 2. Remarriage Generally, a marriage license does not mean your new spouse will receive your entire estate after your death. Instead, the laws of most states provide that your new spouse will share in your estate assets in conjunction with your children from a previous marriage unless you change this default through a will, living trust, or other estate planning vehicle. If you get remarried, it’s important that you update your estate plan to include your spouse and his or her stepchildren, if any. 3. Divorce Once a divorce decree has been entered by a court, the laws of many states automatically disinherit a former spouse. Still, if you included provisions in your estate plan that give specific property to your former spouse by name, you may need to change your plan in order to disinherit him or her going forward. 4. The Birth of a Child Congratulations! Your life has forever changed by welcoming a little bundle of joy into the world. This change is worthy of updating your estate plan to protect your child or children. Updating your estate plan after the birth...
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What Happens to Your Assets if You Don’t Leave a Will?

Posted by on Sep 3, 2015 in Estate Planning | 0 comments Talking about the inevitable is a difficult subject. Many times people just get too busy with life or avoid the subject all together. 70% of American adults do not have a will! If your estate is unprotected upon death, then the state in which you die determines how your estate is to be administered. It has to go somewhere right? The process is called “intestate succession.” And let me assure you, while the laws are written to protect, often times things happen under the state laws that we would never in a million years want to happen. For example, by drafting a will, you can disinherit that niece who stole from grandma and has destroyed your family’s reputation in Small Town, USA. Without a will, through intestate succession, that niece is still given a piece of the pie. Another example, you really have a close relationship with someone who is not a blood relative. Under a will, that person can be remembered by you. Without a will, that person is never even considered. It comes down to you deciding or the state deciding. To talk in depth about your estate plan, please contact Westby Law today at 602.686.6375 or email us at ewestby@westbylaw.com. Estate planning is not for the wealthy, it’s for the...
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How well do you trust your family?

Posted by on Aug 15, 2015 in Estate Planning | 0 comments Take the guess work out of that question by building an estate plan. When you have a trust in place, there are fiduciary duties that come along with the placement of that trust. This helps to ensure not only that your wishes are adhered to, but it has the ability to keep your assets private by avoiding probate. Probate is the legal process of administering the estate once a person has died. Because it is a legal judicial process, the records thereof are public. Family, friends or especially creditors deserve access to that information. The need to probate is determined by the type of property the deceased person had at the time of death and how that property was held, (e.g. what type of title is on the property). Before asking if you can avoid probate, first ask if you need probate. For example, if a property is held by “joint tenancy with right of survivorship” there is no need for probate because the property automatically transfers to the other joint tenant upon death. But the estate will need to be probated when the second joint tenant is deceased unless he or she sets up an estate plan or gets another joint tenant on the property. So even the survivorship title ends up being limiting without proper planning. An estate must be probated upon death if there is: Real property titled in the deceased person’s name with a value over $75,000, Personal property of the deceased valued over $50,000, or Unpaid wages of the deceased of at least $5,000 Having a will is not necessarily going to help you avoid probate. It certainly can but it depends on the individual circumstances and a few other moving parts. One of the most effective ways to avoid probate is byway of a revocable living trust. A trust has a longer life than a will, as a will “speaks upon death.” A trust is able to hold property much longer than a will and make distribution of assets clean, and certainly less costly. Proper estate planning saves time and money in the long run and it helps the family move forward upon the death of a loved one. I urge you to speak with an estate planning attorney about your individual plan and prepare things ahead of time. Remember estate planning is not for the wealthy, it is for every day people...
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