by Bill Miller | Aug 10, 2018 | Estate Planning, trust
David and Amy knew they needed a Will. At least, that’s what they thought. They made an appointment with an Alabama estate planning lawyer to discuss their Wills. Their attorney told them all about trust-based estate plans. David and Amy were surprised to learn that there were other options that better fit their lifestyles.
A Complete Estate Plan Revisited
More than a Will is involved when someone creates an estate plan. Typically, a general durable power of attorney and some form of advanced health care directive are signed along with a Will. And then there are trusts.
For some, a trust should make up the foundation of their estate plan. A Will is still necessary. However, the Will and trust work together and work for the testator.
Advantages to Trust-Based Estate Plans
All trusts involve the following parties:
- The Settlor or Grantor (sometimes more than one),
- At least one Trustee, and
- One or more beneficiaries.
The settlor sometimes also serves as trustee and is a beneficiary. It depends on the type of trust. There are various types of trust that each have a different purpose.
An estate plan that is based on a trust and not a Will offers some useful benefits:
- Avoiding Probate. A will-based estate passes through the probate court. Trusts typically do not. Instead, trust assets may pass directly to the beneficiaries upon the death of the settlor. This, again, depends on the type of trust and the terms contained in the trust document.
- Lowering Taxes. Some estates allow property transfers with little to no tax consequences. This tactic is especially helpful to larger estates.
- Asset Protection. Wills do not protect assets, particularly during the testator’s lifetime. A well-crafted trust-based estate plan, however, can safeguard assets both before and after the settlor’s death. Many asset protection trusts are irrevocable, which makes the trust impossible or at least very difficult to change.
- Protects Personal Information. Wills become part of public court records during probate. Trusts usually do not. A trust-based plan helps protect your personal information and that of your heirs.
Everyone still needs to have a Will. However, it does not have to be the foundation of your estate plan.
Talk to Your Attorney About Trusts.
Schedule a consultation with one of the attorneys at Adams & Miller, PC. You may be pleasantly surprised to discover the options available for your estate plan. Our phone number is 256-251-2137, or you may want to use the Contact Form on our website. We also offer free guides and videos about estate planning and trusts.
We have offices in in Anniston and Birmingham and assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
by Bill Miller | Aug 3, 2018 | Estate Planning
Would you hire a heart surgeon to wire the electricity in your home? When you’re dealing with something important, really important, that could affect your life and your loved ones, you need help from someone who specializes. If you’re wondering whether you need to hire an Alabama Estate Planning attorney to put together your estate plan, the answer is “yes!” And here’s why:
Estate Planning Is Not a Deck
Do-it-yourself works for some projects, but not others. Building a deck on the back of your house is one thing. Building a future for your family and yourself is entirely different.
An experienced estate planning attorney will see the big picture. He or she will analyze the moving parts of your life and get them humming along in sync. For instance, naming beneficiaries for some of your financial accounts is recommended. However, it can throw the rest of your estate plan out of whack. One heir could accidentally receive a bigger or smaller piece of the pie if your plans are not carefully crafted and updated regularly.
Plan for the Future
Writing a Will using an online website gives you a very simple estate plan.
But you need more than a Will.
A Will does not plan for possible incapacity or disability. It only takes effect upon your death. A complete estate plan addresses potential problems head on. In some cases, a Will-based estate plan may not even be the right option for you. Some estate plans are founded on trusts. Some of those trusts help provide income during retirement or prevent you from being disqualified for Medicaid.
Get the Right Asset Protection
Not all asset protection strategies work for all people. Any trusts or other asset protection vehicles should be crafted by an attorney who knows Alabama law.
And there’s more than one type of trust – which one might you need? Trusts can be complicated and lead to completely unintended consequences. Talk to your estate planning lawyer to learn what’s right for you.
Estate Planning Can Have Life-Changing Consequences.
Isn’t it best, then, to hire an Alabama estate planning attorney to get the right advice?
For a free consultation with an experienced Alabama attorney, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham and serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
We also offer free workshops and resources.
by Bill Miller | Jul 27, 2018 | Estate Planning, Probate
Josiah M. had few possessions when he died, though he had many loving friends and family. He lived in a rented independent living facility, owned one car, and had several small bank accounts. His family began the process of probating his estate. His attorney suggested they take the small estate probate route.
Probate occurs when a judge determines that the Will of a deceased person is valid. It also refers to the administration of the estate whether a Will exists or not. Many people try to avoid probate proceedings because they can be expensive and lengthy.
A Fairly Easy Solution
Sometimes the person who passed away, the decedent, does not own much property at the time of death. Even then, some of the property they own may not become part of their probate estate.
A surviving spouse or one of the heirs can file a petition for summary distribution of the decedent’s personal property. Note that real property – like homes or land – cannot be transferred through a small estate proceeding.
Summary distribution can be requested under certain circumstances:
- The value of the estate does not exceed $25,000.
- The decedent was an Alabama resident at the time of death.
- A petition for appointment of personal representative is not pending or has not been granted.
- It’s been at least 30 days since the notice of filing was published.
- Funeral expenses have been paid or arrangements have been made to pay them.
- A probate judge has determined succession if the decedent did not leave a Will.
- Decedent’s Will, if any, has been filed in the office of the judge of probate.
- Notice of filing the petition has been published in a local newspaper or posted at the courthouse.
- All claims against the estate have been paid or arrangements have been made to pay them.
For people trying to probate a small estate, this procedure provides a faster, easier way to settle the estate.
Use the Right Probate Procedure When the Time Comes.
Josiah’s family was able to file a petition for summary distribution of his estate. He did not own real property and his probate assets (excluding bank accounts and insurance policies with named beneficiaries) were worth less than $25,000. His estate met all the other qualifications, also.
The attorneys at Miller Estate and Elder Law assist clients probate whether the estate is large or small. 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 | Jul 20, 2018 | Estate Planning, trust
Frank had heard about trusts and though he might want to set one up. Researching trusts online just confused him. There were so many types of trusts. However, he did learn enough about living trusts and testamentary trusts to know he wanted to learn more. Frank made an appointment with his attorney to see which one might be right for him.
What’s the Difference?
It comes down to when the trust is actually established.
A testamentary trust is established by an individual’s Last Will and Testament (the Will). The person who signed the Will, the testator, does not create and fund the trust during his or her lifetime. Instead, the trust is set up when the testator’s Will is probated.
The term “living trust” says it all. Also called an inter vivos trust, a living trust is established while the grantor is still alive.
Testamentary Trust Details
This type of trust offers most of the same advantages of any trust. For example, many trusts are used for asset protection. A testamentary trust can be set up to protect an estate from its heirs’ frivolous financial behavior. Giving some beneficiaries a large lump sum inheritance is a recipe for disaster.
More than one testamentary trust can be set up through a Will. For example, Frank might want to set up one trust for his son and one for his daughter.
The trustee of a testamentary trust acts like any other trustee. In other words, the trustee manages the trust assets. Heirs are not always ready to manage assets passed down through a Will. The trustee can distribute trust assets according to the terms of the trust, but also keep an eye on the beneficiaries.
Beneficiaries may enjoy some important tax advantages by receiving their inheritance through a testamentary trust instead of a lump sum. Distributions may be spread out to minimize the tax burden.
Still Have Questions About Using a Testamentary Trust?
Frank decided that a testamentary trust was right for his estate based on his attorney’s advice. If you are interested in establishing a trust, contact a qualified Alabama estate planning attorney today.
The attorneys at Miller Estate and Elder Law assist their clients with all phases of estate planning. 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 | Jul 17, 2018 | Estate Planning
Watching a family fight over a loved one’s Will is heartbreaking. Take Marjorie J.’s family. When Marjorie passed away last year, she left behind a pretty nice estate. She intended her property and money to go to her family – or, at least, some of them. However, several people were shocked to learn they were not even mentioned in the Will and would receive nothing. They began to question whether Marjorie’s Will was valid. The stage was set for an expensive, disheartening courtroom battle.
If only Marjorie had known there were ways to avoid a Will contest.
Include a No-Contest Clause
Marjorie picked up a form to use for her most recent Will. The form was okay, as far as it went. However, it did not have a no-contest clause that could have headed off any future Will contests.
This clause states that anyone who challenges the Will loses their inheritance. No-contest clauses are usually upheld in court. Marjorie’s son, for example, files a lawsuit challenging her Will. He lost the lawsuit and the money he would have inherited.
One thing to remember if you want to put a no-contest clause in your Will: for someone to lose their inheritance, they must be receiving something. If you plan to use a no-contest clause, it’s best to leave a small sum to the people you think will contest the Will. This might discourage them from fighting it.
Communicate with Loved Ones
It is not always easy to talk about estate plans with family members. But it is necessary. Keeping your family informed can help manage their expectations. This is especially true if you plan to disinherit someone. In fact, failing to mention why you are disinheriting someone could lead to a Will contest.
For example, Marjorie had given her son a lot of financial support throughout the years. Her daughter had never needed any help, though. So, Marjorie left the bulk of her estate to her daughter to “even things out.” Had she explained this to her son, or even just mentioned it in her Will, he might have handled it better.
Explore Trusts
Sometimes a Will is not the best way to pass your property to your heirs. Trusts offer tax benefits and confidentiality. They are also less likely to be contested.
Marjorie did not speak to an attorney about trusts. She felt they were only for really wealthy people. However, passing her property through a trust may have been a better choice.
Consult with an Alabama Estate Planning Attorney.
The attorneys at Miller Estate and Elder Law have the experience you need to get the estate plan you deserve. Contact Miller Estate and Elder Law 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 | Jul 6, 2018 | Estate Planning, Medicaid, Medicaid Planning
At age 98, Jamison truly is his family’s patriarch. His children want him to attend the annual family reunion. The problem? Jamison lives in Alabama. The reunion is in Texas. Although he does not live in a nursing home, Jamison requires some skilled nursing care and is legally blind. They are concerned that Jamison’s Medicaid benefits will not pay for medical services while he is away from Alabama.
Jamison’s family is right to be worried. Although the funds for Medicaid benefits come from the federal government, individual states manage Medicaid for their citizens. Jamison’s Medicaid benefits, then, are administered by Alabama Medicaid. Individual states are allowed to develop their own rules and regulations, as long as they comply with federal regulations.
It’s the Law
Federal law at 42 CFR 431.52 provides that state plans will pay for services provided to Medicaid recipients who are temporarily out-of-state. However, the following conditions must be met:
(1) Medical services are needed because of a medical emergency;
(2) Medical services are needed, and the beneficiary’s health would be endangered if he were required to travel to his State of residence;
(3) The State determines, on the basis of medical advice, that the needed medical services, or necessary supplementary resources, are more readily available in the other State;
(4) It is the general practice for beneficiaries in a particular locality to use medical resources in another State.
The law goes on. States are required to establish procedures so individuals who are eligible for Medicaid under another state’s program can receive medical services.
But It May Not Be Easy
Note that medical costs incurred during an emergency are covered. This means that individuals may be billed for services related to non-emergencies, unless that care fits the other criteria listed above. Also, the out-of-state provider has to enroll as a provider with the Alabama Medicaid Agency. And, finally, some services have to be pre-approved.
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.
