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.
by Bill Miller | Aug 17, 2018 | Estate Planning, Special Needs, trust
Julia’s daughter, Jenna, is a happy 17-year old woman. She participates in social activities, attends school, and has a job despite being born with multiple birth defects. While she’s satisfied with the progress Jenna has made, Julie is worried about her future. She wonders if her daughter’s needs can be anticipated and provided for in her estate planning.
The Basics
Typically, an estate plan consists of a Will, a durable power of attorney, and an advanced health care directive like a health care power of attorney. But complete estate plans address all of the testator’s needs and some people need more than the basics.
Julia can provide for Jenna in her Will. She could also have Jenna’s inheritance transferred to a trust for her benefit.
Extra Protection
Parents of a disabled child may have options that ensure their child’s future support.
- Special Needs Trust. This type of trust may calm at least some of Julia’s fears. The trust would be funded with money and assets that a trustee could use for Jenna’s support. However, if the trust is not properly drafted, it could reduce or eliminate Jenna’s eligibility for public benefits like Medicaid.
- Medicaid Income Trust. Also known as a Miller Trust or a Qualified Income Trust, Jenna can transfer some of her monthly income to this trust to remain below Medicaid’s income limits.
- ABLE Account. Julia might consider setting up savings plan called an ABLE account. ABLE stands for Achieving a Better Life Experience. Anyone can contribute to Jenna’s account, and the funds will be used for Jenna’s support.
- Guardianship. Jenna will be considered an adult at age 18, even though she has the mental age of a 10-year old child. If she has not already done so, Julia should talk to an attorney about setting up a guardianship for Jenna. Although disabled people often need to be as independent as possible, they remain vulnerable to people who may take advantage of them.
It can be difficult to find a way to provide for a disabled child’s future while preserving eligibility for public benefits and their own independence.
Consult with an Alabama Estate Planning Attorney.
Another thing Julia could do? Provide a letter of intent for future caregivers that gives instructions for Jenna’s care. While not technically an estate planning document, Julia can keep this letter with her important papers.
The attorneys at Adams & Miller have the experience you need to get the estate plan you and your loved ones deserve. Contact Adams & Miller, P.C. at 256-251-2137 to schedule an appointment or fill out our convenient Contact Form. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities.
by Bill Miller | Aug 15, 2018 | Elder Law, Estate Planning, Medicaid Planning
Ned was a prominent business man in the community before suffering a devastating stroke. Sally was young and carefree, until she was involved in a catastrophic car accident that nearly took her life. And Jane’s mother, Lucy, was near death and worried about where all her property would go after she passed away. These individuals have something in common: they were involved in emergencies that could have been helped – or were helped – by estate planning.
The Need for Incapacity Planning
Ned and his family had absolutely no warning before he fell ill. One day he was running his business and planning a vacation with his wife. The next, he was lying in the Emergency Room. His family did not know where to turn when handling his complicated finances and his business interests.
Ned had never signed a durable power of attorney, which would have remained active even after his incapacity. If he had, his family would have known who was responsible for taking over his financial affairs. He also had never put together any business succession plans with his associates. They were left scrambling for ways to keep the companies afloat.
The Need to Make Health Care Decisions
Sally’s injuries were life-threatening and life-changing. If she lived, she would face a tough road ahead. Her family had many tough decisions to make – but no one was authorized to make them.
She also had never signed a durable power of attorney or a health care power of attorney. Because Sally was over age 18, her mother was unable to make medical or financial decisions for her. The medical issues were the most pressing. Her doctors needed to talk to someone who could make decisions about Sally’s care. Finally, Sally’s mother was forced to start a court proceeding to become her guardian and conservator.
The Need to Have a Plan
Jane’s mother would be entering a hospice soon. She knew she was not going to survive her liver cancer. Jane wanted her mother to be as comfortable as possible, but something was bothering Lucy. She had never made a Will. It was important to her that she use her last days to make a good plan for her estate and her heirs.
Jane contacted an attorney who met with her mother. Because her mother was still mentally alert, she was considered to have the capacity to prepare her Will. She knew who her beneficiaries were, and what property she owned. The attorney prepared the Will, which Lucy signed a week before death.
Good Estate Planning is Key.
We can’t always know when something bad is going to happen to us. However, we can have plans in place that will handle those bad times if they come.
The attorneys at Adams & Miller, P.C. know how to help you with estate planning. 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.
