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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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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Do It Yourself? You May Be Facing Serious Consequences!

Posted by on Oct 24, 2014 in Estate Planning | 0 comments The whole idea behind having a proper estate plan drawn up is to avoid creditors, avoid hurt feelings, avoid folks coming out of the woodwork once you have passed away claiming rights to what you worked your whole life to obtain and thought you secured. You should be doing all you can to avoid any potential post-death controversies. A will, for example, can be contested on several grounds questioning its validity. Such grounds include but are not limited to: undue influence, improper execution, and lack of capacity. Therefore the more care that is taken in the documents preparation upon implementation the less likely it is that someone will dispute the documents after death. I understand we are all trying to save a buck – and that is exactly what you will be doing if you have a proper estate plan written up by a knowledgeable attorney. Trust me the costs on the back end far exceed any costs for drafting and executing the documents. Even if you have already created your own estate plan via some internet service or even by writing one up in your own handwriting, I urge you to have it reviewed by an estate planning attorney. He or she will tell you what you have done correctly, and what you could/should do to your plan. This is particularly important if you have a modest estate. Therefore the best course of action to get started is: 1) think about what you have and who you want to benefit upon your death; 2) talk to a knowledgeable estate planning attorney to draw up a plan and speak candidly about the best methods and documents for your needs; 3) have that plan implemented, including signing properly, and safeguarded for when the time comes. Arizona does not mandate any wills or trusts be recorded, thus sometimes even a proper estate plan can become “lost” if fallen into the wrong hands. The best way to guard against this practice is to have your estate plan distributed to several people. One of my clients gave it to his wife, his three children, and his siblings. By doing so, he has ensured that these documents can be found. If you have any questions regarding an estate plan, please do not hesitate to contact me. eawestby@westbylaw.com. And remember, estate planning is not for the wealthy, it is for the...
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