by Bill Miller | Jun 9, 2018 | Estate Planning
Every family is different. Only you can know how to approach your family about something as sensitive as estate planning. But discussions like this will help their peace of mind as they deal with difficult decisions and life events.
How to Help You with Incapacity . . . and How to Pay for It.
Facing the possibility of your future needs is hard. Your family and friends may be able to provide day-to-day living assistance. Discussing how you’d like family members assist you enables them to help without being asked. This may also be the time to share how you feel about in-house and nursing home care.
Let your family know how your long-term care will be covered. For example, do you have funds saved up specifically for long-term care, have you purchased insurance to cover increased medical needs, or have you already started planning your Medicaid eligibility.
Finally, tell your family about any estate planning documents you’ve prepared. Your Health Care Proxy or Medical Power of Attorney, Living Will, and Durable Power of Attorney provide your loved ones with guidance on how to handle medical and financial decisions for you.
What You Want Them to Do with Your Stuff.
We encourage our clients to talk to their families about how to handle their possessions after they pass away. While talking about this is great, it’s even better to have a Will or trust in place that distributes your estate as quickly and painlessly as possible. You don’t have to tell your family every detail of your estate plan. However, make sure your executor knows that you have a plan, where your plan documents are located, and which attorney to contact after your passing.
How to Say Goodbye.
Talking about death can be upsetting. Let your family know you’ve made plans to make your passing easier on them. If you’ve paid for pre-funeral arrangements or have definite ideas about your memorial service, share these now.
It’s never easy to talk to your family about estate planning.
But it is necessary.
If you haven’t made your estate plan yet, don’t delay.
The attorneys at Miller Estate and Elder Law stand ready to assess your needs and develop the right plan to meet those needs. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham, and we help clients in the Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
by Bill Miller | Jun 3, 2018 | Estate Planning
When something is durable, it’s built to last. Tough. Resistant to pressure. Strong. Just the qualities you want in an important legal document like a durable general power of attorney.
A Powerful Legal Document.
A power of attorney is a legal instrument where one person authorizes another person (the agent) to act on their behalf. Sometimes the authorization is very broad. Some are very limited while others apply only to a specific occasion. There are even documents with the specific purpose of authorizing someone to make medical decisions for you. Whether a power of attorney is general or durable is an extremely important distinction.
When is it Durable?
Authorization to act granted by a general power of attorney ends when the principal, the person who signed the power of attorney, becomes incapacitated, disabled, or unable to communicate.
A durable power of attorney, however, remains in effect regardless of the principal’s capacity, or ability to make decisions.
Consequences of Signing a Power of Attorney That is Not Durable.
Let’s say Margie, a 55-year old woman, signs a general power of attorney as part of her estate plan. She authorizes her husband, George, to act on her behalf. The powers given to George take effect immediately and cover pretty much every financial decision Margie might have to make.
Unfortunately, the next year Margie receives serious brain injuries in an auto accident. She is no longer able to communicate in any meaningful way. Fortunately, her advanced directive for healthcare authorizes George to make medical decisions for her. He begins the heavy task of working out their finances. In the process, he learns that the power of attorney is no longer in effect because it is not a durable. George is forced to hire an attorney and start a conservatorship proceeding.
Make Sure You’ve Signed the Right Power of Attorney.
If you have not reviewed your estate plan for a while, or you’ve never taken that important step of making your plans, it’s time.
Schedule a consultation with one of our attorneys and find out where you stand. Our phone number is 256-251-2137, or you may use the Contact Form on our website. We have offices in Anniston and Birmingham, but also assist clients in communities like Hoover, Vestavia Hills, Irondale, and Calera.
by Bill Miller | May 28, 2018 | Business, Estate Planning
When someone starts a business, the last thing they want to think about is death. A close second? Incapacity. However, planning for these events is critical to a company’s success. If you are a business owner, you need to include your business interest in your estate plan.
What is “business succession?”
It’s a way of ensuring that a business will continue operating if the owner (or one of the owners) dies or becomes unable to participate for some reason. It also may protect a company when an owner retires or is in the midst of divorce negotiations.
How can I include a business in my estate plan?
First, if you have partners, you can put a buy-sell agreement in place. This document spells out how the business will be handled if you can no longer participate in the company. For example, your buy-sell may provide for an owner’s interest to be bought out by the other partner or by the company itself. Having a good buy-sell in place is no good, however, if there’s no capital to pay for the buy-out. Business owners may use insurance policies, sinking funds, payment plans, or personal funds to purchase another owner’s interest.
Your estate plans must be synchronized with your business succession interests. Does your durable power of attorney address your business interests? Your power of attorney can be broad or limited. Does your agent have the power to make decisions about your business? More importantly, does your agent have the ability to make those decisions?
Does your Will leave your business interests to family members who have little interest in the business? Your loved ones may not be the best people to continue operating the company.
What can happen if I don’t have a business succession plan?
Without the right planning, a business could be in real trouble.
Let’s look at Dan and Bob’s Construction Company. Dan and Bob started their company from nothing. After 30 years, business was thriving and expanding every year. Then Bob suffered a major stroke, something the average 50-year old doesn’t expect to happen. Although Dan and Bob were astute businessmen when it came to building houses, they had failed to put together a business succession plan.
The company was thrown into confusion because Dan did not have the authority to make financial decisions by himself. One of Bob’s sons tried to take his place in the business but had no interests in business of any kind. Bob had not executed a durable power of attorney that would allow anyone to make financial decisions for him, so his wife had to petition for a guardianship/conservatorship. The company suffered cost overruns and angry clients because they fell behind in honoring their contracts.
A buy-sell agreement would have allowed the company to smoothly transition. Bob’s partnership interest could have been bought out by Dan or by the company itself.
Don’t Have an Estate Plan Yet?
The attorneys at Miller Estate and Elder Law help their clients develop estate plans that cover all their assets, including business interests.
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.
by Bill Miller | May 17, 2018 | Estate Planning, Probate
Probate or avoid probate – one of the main issues you must decide when creating your estate plan. For many people, probate is not the best solution for settling an estate. Probate proceedings can be long, expensive, and frustrating for the heirs and the executor. Fortunately, there are perfectly legal ways to avoid probate.
Probate Explained
After someone dies, their property – their stuff – has to go somewhere. So, if the person who died left a valid Will, someone submits the Will to the court to be probated. An executor appointed by the court begins the sometimes tedious process of gathering the decedent’s assets and claims against the estate. The executor pays claims and distributes property is to heirs. Additionally, the executor closes the probate estate when everything is done.
When there is no Will, the property is still distributed. However, the law determines who gets what, not the decedent.
It is usually best for the heirs when the decedent’s property does not pass to them through probate. We’re going to look at three ways to make this happen.
Joint Tenancy to Avoid Probate
With this type of property ownership, two or more people own the property. Each owner has an undivided, equal interest in the property. In joint tenancy, a deceased owner’s interest does not pass to the other joint tenants.
Sometimes people own property with a joint tenancy with right of survivorship. This means that if one owner dies, the other owner gains possession of their ownership interest. In Alabama, this joint tenancy with the right of survivorship does not occur automatically. Instead, legal document must clearly state the right of survivorship.
Property that passes through right of survivorship usually does not become part of the probate estate. Without the right of survivorship, it does.
Beneficiary Designations to Avoid Probate
With most financial accounts and certain other assets, the owner may designate who will receive the asset upon the owner’s death. You’ve probably seen beneficiary designations on retirement accounts, bank accounts, and insurance policies.
One thing to remember is that beneficiary designations trump the Will. Usually, property passed through beneficiary designations will not pass through probate. Instead, it is transferred quickly to the beneficiaries named by the deceased owner.
Although the speedy transfer is great, discuss these designations with your estate planning attorney. Unless your estate plan and the designations are in sync, your heirs could receive more or less than you intended. For example, if your Will states that your three children will inherit equal shares of your estate, but you name your oldest child as beneficiary on your insurance policy, the oldest child will likely receive more than the other two children.
Revocable Living Trusts to Avoid Probate
Trusts are useful estate planning tools. There are various trusts for various purposes, including the revocable living trust.
Revocable means the settlor, the person who established the trust, can change the trust fairly easily. After signing the trust document, the settlor transfers assets to the trust. People often use this type of trust to avoid probate, reduce estate taxes, or manage assets. In general, trusts avoid probate because the trust assets never become part of the settlor’s estate.
A Little Planning Is What’s Needed.
For most people, it’s not that difficult to avoid probate. It just takes some astute estate planning with the assistance of an attorney who knows Alabama law.
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.
To learn more:
Pros and Cons of TODs and PODs
by Bill Miller | May 10, 2018 | Estate Planning
As we pass through life, we make memories, build families, and learn life lessons. Some memories may bring a smile to your lips and a tear to your eyes. Even if you’ve been entertaining and instructing family for years, it’s still time to consider writing an ethical will.
Isn’t My Regular Will Enough?
An ethical will may also be known as a legacy letter. It’s something in writing, a written expression, that your family may cherish for years. No matter how well you communicate, it’s unlikely you’ve told every family member every little thing about your life. Well, you can include those details, memories, and lessons in your ethical will.
Some of the things you may want to include are:
- Your complete family history.
- A detailed personal history.
- The theories, beliefs and opinions you hold dear.
- Things you’ve done that you are particularly proud of.
- Actions your loved ones have taken that made you proud, but you somehow never talked about.
- Lessons you learned from your parents, grandparents, aunts, and uncles.
- Secrets about your early years that may delight your family.
There’s no wrong way to write your ethical will. Remember, this is not a legally binding document like your Last Will and Testament.
Won’t Writing This Will Take A Long Time?
It’s probably not something you can do in one sitting. Spend some time reflecting on your life. Start a journal or diary and jot down what you think is important. Then, when you are ready, start writing.
Organizing your thoughts is more important than the format you use. You could sort your information into categories or include subheadings like “Our Family History” or “My Early Years.” Keep your ethical will safe by storing it with your other estate planning documents.
When Should I Write My Ethical Will?
That’s up to you and where you are in life right now. People just starting their life’s journey may want to start keeping a journal now. Others may just write their ethical will as important milestones happen.
Make Your Estate Plan Complete.
Estate planning documents give their makers an opportunity to state their final wishes, or what type of medical treatment they want, among other things. While it’s not a legal-binding document, an ethical will can be an important part of your estate plan.
The attorneys at Miller Estate and Elder Law help their clients develop comprehensive estate plans customized to meet their needs. 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.
Keep reading at:
Estate Planning Discussions to Have with Your Family Right Now
by Bill Miller | May 5, 2018 | Estate Planning
During this time of the year, people’s thoughts turn to an old standby – spring cleaning. As you know, the onset of spring inspires many of us to clean our homes until they sparkle. Home owners dust every item, tossing things that are no longer useful. This is also a great time to give your estate plan a good review. Spring cleaning your estate plan can start now.
Spring Cleaning Your Estate Plan – First, Find the Your Documents
Hopefully, you put your estate planning documents in a secure but accessible place. Once you find them, pull them out for a good review. Then ask yourself, “Has anything in my life changed since I signed these documents?” If so, now might be the time for spring cleaning your estate plan.
Life Changes. So Do Your Estate Plans.
If your family has grown or gotten smaller, you may need to review your beneficiaries, executors, and agents.
Have you or someone close to you gotten married or divorced recently? Control where your assets go by preparing a good estate plan, then updating as needed.
And your estate plan doesn’t just deal with death – it also addresses issues you might face in the future.
Your durable power of attorney allows an agent to keep your financial affairs humming if you’re not able to do so. If you named an agent years ago, is that agent still around to help out? Are you still in contact? Most importantly, does that person still want to serve as your agent. It’s time to give some thought to updating your power of attorney.
It’s possible you signed an advance directive years ago. This document gives the agent of your choice the authority to make medical decisions if you cannot. Doctors and other healthcare providers will know what treatments you want and don’t want. Even end-of-life treatment can be spelled out in a living will. Things may have changed since you signed your advance directive. Your preferences or even the person you want to serve as agent should be reviewed and refreshed if needed. Your Advanced Directive has to be HIPAA compliant or it may be invalid. If you signed it years ago, chances are it is not HIPAA compliant.
When’s the Last Time You Reviewed Your Estate Plans?
At Miller Estate and Elder Law, we make it our business to put our client’s needs first. We assist our clients in making good estate plans and keeping them current. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and Birmingham and we assist clients in the Leeds, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.
