by Bill Miller | Nov 14, 2018 | Estate Planning
Holidays and families seem to go together, even when things are not perfect. For example, as Molly looked across a holiday table surrounded by family, she worried about their futures. Her son was there with his daughter, who was intellectually disabled. Molly’s daughter arrived with her second husband and the two children from her first marriage. Her younger son seemed to be doing okay, except that he often borrowed money from her. Molly wondered how her family would survive after she was gone. Would they make the right decisions and have the support they needed? She decided it was time to talk to her family about estate planning.
Talk About Your Estate Planning
An estate plan doesn’t just affect you – your family’s future also may depend on it. While it is not necessary, or even a good idea, to discuss every detail of your estate plan, your family needs to know the following:
- The name and contact information of your estate planning attorney;
- Where your estate planning documents, both originals and copies, are kept; and
- As much of your plan as you feel comfortable talking about.
You could meet with your family as a group. However, if your Will contains anything that might be upsetting, you might consider meeting with your family individually. In addition to your own plans, you could use this time to discuss another important topic – their plans.
Talk About Their Estate Planning
Since every adult needs to have an estate plan, this may be the perfect opportunity to encourage your family members to do their own. A basic estate plan typically consists of the following documents:
- A Last Will and Testament,
- A durable power of attorney, and
- Some form of advanced directive, like a health care power of attorney and living Will.
Estate plans are not just about death, though. A durable power of attorney names someone who may act on your behalf in legal and financial affairs if you become incapacitated. An advanced directive allows you to name someone to make medical decisions for you if necessary.
Trusts are also an option, with a revocable living trust being one way to transfer assets quickly to family members by avoiding probate. Also, trusts can address specific situations in your family.
For example, Molly’s son has a child with special needs. In addition to basic estate planning, he may establish a special needs trust for her future care. Molly’s daughter may use a trust to protect her children’s inheritance if she passes away before her second husband. And Molly’s youngest son should have his own basic estate planning, but Molly may also want to establish a spendthrift or discretionary trust to protect his inheritance.
Do You Need to Talk to Your Family About Your Estate Planning?
First, you need to actually have an estate plan! For a free consultation with an experienced Alabama estate planning attorney, contact us at 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Oct 26, 2018 | Estate Planning
We all make mistakes, great and small. Some errors are easy to fix. However, the person who flubs their estate planning may not have that option because the error shows up after they have become incapacitated or died. However, let’s look at some common estate planning mistakes and how to fix them now.
#1: Failing to Update Your Estate Plan
Estate plans should evolve to fit your life. After all your goals as a single young professional are far different than as a parent – or empty nester – or senior citizen. Major events like births, deaths, marriages, and divorces should trigger an immediate review of your estate plan. However, it’s better to have regular maybe even annual reviews of your plans.
For example, Blake and Tina prepared Wills 25 years ago. They figured there was no need to prepare new Wills or to engage in any other estate planning. They were wrong. During that 25-year time span, they had three children, built several businesses, bought real estate, and increased their net worth substantially. When Blake and Tina pass away, their families will be stuck trying to work their out-of-date Will.
#2: Failing to Coordinate Your Estate Plan with Beneficiary Designations
Much of an estate plan deals with finances – assets, money, financial accounts, and real property, for example. When a decedent’s assets become part of their probate estate, they are split according to the terms of the Will or according to Alabama intestacy laws.
However, not all assets become probate assets. Accountholders for financial accounts and insurance policies, for instance, typically name beneficiaries. Upon the accountholder’s death, funds remaining in the accounts are given to the beneficiaries instead of passing through probate.
You should sync your beneficiary designations with your estate planning to keep your estate in balance.
For example, Blake and Tina prepared a current, up-to-date estate plan several years ago. They then opened some financial accounts and purchased life insurance policies and named beneficiaries on the accounts. Unwittingly, they created a potential imbalance. As things stand, if Blake and Tina died together, their oldest son would receive more from their estates due to their beneficiary designations.
#3: Failing to Plan for Incapacity
Estate plans are not just about death. When someone becomes incapacitated and unable to make their own decisions, it’s important to have a durable power of attorney and an advance directive in place. Both of these documents name agents to take over for the incapacitated person. In addition, your Will has no effect until your death. However, you may set up a revocable living trust and name a successor trustee to take over if you become incapacitated.
For example, Jan’s estate plan consisted of a Will only. Jan later suffered a traumatic permanent brain injury and was unable to make decisions for herself. Her family was forced to ask a judge to appoint a guardian and a conservator to handle her affairs. Jan could have made things easier by addressing potential incapacity in her estate plan. In addition, she could have engaged in some Medicaid planning.
#4: Failing to Prepare an Estate Plan
This the biggest mistake of all. An estate plan protects you and your family.
The attorneys at Miller Estate and Elder Law help their clients develop estate plans that suit their circumstances. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment. Though our offices are in Anniston and Birmingham, we help clients in Talladega, Gadsden and surrounding communities.
by Bill Miller | Oct 5, 2018 | Estate Planning
Can you imagine letting a stranger make decisions that affect your loved ones? That’s what happens, however, when you pass away without leaving a valid Will. Like it or not, most if not all of your estate will go through probate. Without the guidance and instructions of your Will, a judge will decide how your estate will be distributed according to the intestacy laws of Alabama. Why let the state do your estate planning when you can do it yourself?
What Is Intestacy?
Intestacy is just a word that means someone died without leaving a Will. Even though there’s no Will, a deceased person’s estate will become probate estate assets – with some exceptions. For example:
- Beneficiary Designations. Financial accounts and insurance policies may name beneficiaries who will receive the funds in the account outside of the probate proceeding.
- Property Titles. Property may be owned jointly. If property is owned jointly with right of survivorship, the property typically becomes the sole property of the surviving owner(s) upon one owner’s death.
- Trusts. The deceased person may have transferred property to one or more trusts. Trust assets may pass to beneficiaries immediately upon the death of the trust grantor, depending on the terms of the trust.
Other assets typically become part of the probate estate. If there’s no Will, property passes according to Alabama law.
Sometimes, that’s a problem.
How Does Property Pass If There’s No Will?
If there’s a surviving spouse, then he or she typically is entitled to at least part of the estate. The Alabama Probate Code lays out the following progression:
- When the decedent left children behind, the estate passes based on whether they are the children of the surviving spouse also.
- When the decedent was not surviving by spouse or children, then his or her parents will inherit.
- If there are parents either, then to the children of the decedent’s parents. Usually, that will be the decedent’s siblings.
- And so it goes. Next in line would be the grandparents, then descendants of the grandparents.
- If there are no heirs, then the estate passes to the State of Alabama.
This is a simple explanation of laws that can be quite complicated.
It’s all carefully spelled out in the Alabama Probate Code. However, the person who passed away may not have wanted their estate to be distributed according to state law. By failing to leave a Will, though, the decedent lost the opportunity to state how their estate would be distributed.
Avoiding Intestacy
It’s fairly simple – prepare and sign an estate plan! Then remember to review it every so often and definitely after any kind of major life event.
The attorneys at Miller Estate and Elder Law help clients like you develop estate plans that meet their needs. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We also offer free workshops and guides with more information about topics that matter to you. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Oct 1, 2018 | Estate Planning
Some things we can do on the fly, spontaneously, on the spur of the moment. Other events require planning to make them run smoothly. Estate planning, as the name states, is about planning. Unless you are a psychic and can tell the exact moment you will need an estate plan, you need an estate plan NOW.
An Estate Plan Helps Your Family
Preparing a Will, general durable power of attorney, and advanced directive may not seem that important. However, it may help to think about what each of these documents does:
- A Will sets out the final wishes of the testator. This includes naming an executor, making specific gifts, naming a guardian if there are minor children involved, and more. When someone dies without leaving a Will, most of their property will be passed to heirs through a probate proceeding.
- A general durable power of attorney names a trusted person to handle the principal’s affairs if necessary. Without this important document, family members may have to ask a court to appoint a guardian or conservator to care for you if you become incapacitated.
- Advanced directives inform families and doctors of your wishes regarding medical treatment. Again, without an advanced directive, your family may have to ask a guardian to be appointed.
Because you thoughtfully prepared an estate plan, your family may avoid the stress and inconvenience of a prolonged court case.
Future Is Uncertain
Passing away is a certainty. We just usually don’t know when and how. That’s possibly the most compelling reason you need an estate plan now. An estate plan needs to already be in place before you need it.
How many times do we read about people, sometimes celebrities, who have passed away unexpectedly. And how many times did those same people not have the estate planning they needed? Advance planning would have helped their families deal with their loss.
Do It While You Can
Your estate plan doesn’t just deal with death. Your general durable power of attorney and advance directive can give you and your family peace of mind now. Injuries, serious medical conditions, and accidents can occur at any time, at any age. Make sure if the unthinkable happens to you, that your plans are in place.
Medicaid Is a Complex Program
Schedule a consultation with one of the attorneys at Miller Estate and Elder Law, and find out where you stand. Our phone number is 256-251-2137, or you may want to use the Contact Form on our website. We have offices in in Anniston and Birmingham and assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
by Bill Miller | Sep 24, 2018 | Estate Planning
It is said you have to spend money to make money. Estate planning is not quite like that – you won’t make money writing an estate plan. However, most people save money with a complete estate plan.
Avoid Probate
Probate proceedings can cost thousands of dollars in fees. Estate plans can be structured so that most –and sometimes all – of the decedent’s assets pass without going through probate.
For example, assets transferred to heirs through a trust seldom pass through probate. Doing so preserves more of your estate for your loved ones.
Avoid Guardianships
Sometimes people need extra help taking care of themselves, and sometimes that help takes the form of a guardianship. However, before a court will appoint a guardian, paperwork must be filed. It’s also very likely there will be several hearings. An investigation may be conducted to make certain the person applying for guardianship is suitable. Fees related to guardianship proceedings can run into the thousands.
However, a general durable power of attorney allows the principal (the person signing the power of attorney) to name an agent to handle their affairs. The power of attorney may become active only if the principal becomes incapacitated. The cost of preparing a durable power of attorney is small compared to the cost of a guardianship.
Protect Assets
Estate plans sometimes include asset protection trusts. These are especially useful to people who may be vulnerable to claims from creditors, ex-spouses, and civil judgments.
With the right planning, as advised by an attorney, you may be able to save your assets for your family.
Incapacity Planning
It may seem difficult or counterproductive to put money into incapacity planning. Medicaid provides the most money for long-term care, and they have strict rules about eligibility. Without Medicaid, your loved one could spend every penny they have on long-term nursing care before However, using estate planning strategies, an individual can set up trusts and use other strategies to prepare for the high cost of long-term care.
Talk to an Attorney About Your Estate Planning Options.
The attorneys at Miller Estate and Elder Law use their experience and skills to help clients just like you prepare complete estate plans. We also help with Medicaid planning and estate planning. For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form.
We also offer free guides, videos, and workshops.
We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Sep 21, 2018 | Estate Planning, Probate
Your Last Will and Testament is one of the most important documents you will ever sign. Within that document, you will name someone to act as your estate’s executor or personal representative. Your personal representatives will make decisions and take actions that affect your loved ones. Knowing what to look for in a personal representative may make your decision a little easier.
A Personal Representative Is a Fiduciary
Fiduciaries are people or entities who are trusted to handle property for someone else’s benefit. Banks are sometimes called fiduciaries.
Responsibilities of an executor or personal representative include:
- Gathering and protecting estate assets,
- Managing estate assets, and
- Distributing property according to the terms of the Will or the laws of the State of Alabama.
Because of the importance and sensitivity of these tasks, it is important to consider individuals carefully before deciding on an executor.
A Personal Representative Is Prudent
Someone who is prudent acts with care and thought for the future. Alabama state law notes that a personal representative may take a wide range of actions on the decedent’s property, including:
Voting on stocks, executing and filing deeds, receiving and retaining assets, insure estate assets, borrow money, deal with contracts and creditors, pay taxes, and so on.
A Personal Representative Is Diligent and Detail-Oriented.
Gathering and maintaining assets requires someone who is hardworking and who sweats the details. Even small estates need someone who will find all the assets, no matter where located. And the family of the decedent needs someone who can protect and maintain assets of every type. Insurance may need to be purchased, licenses and registrations obtained, and investments monitored.
A Personal Representative is Loyal
As fiduciaries, personal representatives owe a standard of care to the estate, to you, and to your family. Look for someone who is willing and able to honor the preferences set forth in your Will.
Personal Representatives Are Patient and Diplomatic
Disagreements and disputes among family and heirs may turn into a family feud during probate. It’s not easy, but a personal representative must have the patience of a saint sometimes when dealing with distressed heirs and family members. If this sounds like your family, choose a personal representative with conflict resolutions skills.
Talk to an Experienced Alabama Estate Planning Attorney.
The attorneys at Miller Estate and Elder Law help clients like you make thoughtful decisions about their estate plans. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. Although we’re located in Anniston, we also help clients in the Birmingham, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
