Estate Planning for Differently-abled People

Studies show that more than 15 percent of people aged 5 years and above have special needs.

Having a special needs child is not a choice you make – it comes naturally. While you have limited power over disability, you can do things differently to make life better for this heir or beneficiary- from identifying the best learning institutions to getting medical care for them.

People with unique needs require specialized care and knowledge at all stages of their lives. Furthermore, the family also gets misinformed, with people taking advantage of the situation.

When misinformed, you find yourself making wrong decisions all the time.
Previously, we have seen how tough it is to come up with the best estate plan even when special needs aren’t in the picture. Now, if you have a differently abled person in the picture, it becomes more complex.

There are a few questions that will cross your mind when you have someone who needs special care to include in the plan:

• Where will he live when am gone?
• Who will take care of him/her?
• What services does he need?
• How much do these services cost, and how will they be paid for.
• Does he have the capacity to make rational decisions on his/her own?

These are tough questions to answer when faced with an estate planning task that involves differently abled. We suggest that you engage with a qualified estate planning attorney to get some closure.

The counsel helps you to draft the different documents that will make things work. They also help you understand the government’s role in taking care of your beneficiary and what you require to qualify for the assistance.

• Tips to Develop the Best Estate Plan for a Differently Abled Person

  Have a Document Showing Your Intentveryon

  This document seeks to inform seeks involved in the estate about the heir. The letter talks about how the person is different, the comforts, habits, functional capabilities and so on.
  This document doesn’t have legally binding features; rather it works to notify the members that are left behind about the person’s needs and what they need to do.

  Talk to the estate planning lawyer to guide you on drafting the document the right way. This letter needs to be reviewed and updated frequently to reflect the needs of the person. After every update, try and communicate the changes to the relevant people.

  Create a Trust

  This is aimed at paying for the distinctive needs of the person. While the government offers assistance to people with special needs, you also need to supplement according to the wishes of the person in the picture.
  After setting it up, the next thing is to fund the trust. Try and understand how much is needed depending on the present routine of the heir. Understand that due to a few issues, you might be forced to allocate above what you wanted to.
  After you decide on the amount to set aside for the trust:

  • Don’t opt for less than is needed. If you don’t have enough money to fund it, then go for life insurance or source for funds from other people, such as other family members.
  • Don’t go for more than what is needed. This will encourage fraud, instead allows the trustee to distribute the extra funds for the other members of the family.

  Once it is set up and you are satisfied with the result, you need to come up with a document that tells the trustee how things should run. It should guide them on the distributions, how much and when to do it. Specifically, point out allocation of the money towards hiring lawyers, estate managers and other experts that can make the process smooth.

  Make it Fast

  It is a fact that the loved one won’t have the capacity to contest a will in court, which means your estate plan should minimize court dates.

  Even when a special needs heir is involved, as long as the case goes to court, a third party will have some say in the succession. And litigation takes time and is tiresome, which makes it good for all those involved if you can make the estate plan perfect.
• Final Words

  When you have differently abled person in your family or among your beneficiaries, chances are that you haven’t thought the estate planning through with him in mind. Visit your estate planning lawyer to get an idea of what to do and how to do it. Remember, the earlier you start the estate planning process the better.

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Estate Planning for Folks without Kids or Beneficiaries

The most vital role of estate planning is to determine how to allocate your properties. But what if there is no one to take over your estate? Do you still need to plan your estate or you leave it the way it is?

As of 2018, Statista reported that a little less than half of women in America were childless.

Many people don’t see the point in coming up with a plan, which is a huge mistake. When you pass away without an estate plan, you increase the chances of your estate going to someone that doesn’t deserve the property.

• The Rules of Inheritance

  These are rules that determine where your estate ends up when you pass away. Every state has its own rules that describe who gets precedence and how much they are supposed to collect when you become deceased.

  In as much as the statutes differ from one state to another, there is a priority among the heirs that cuts across states.

  Intestate (Presence of Will) vs. Testate (Absence of Will)

  The rules of inheritance apply depending on a variety of factors, chief among them being the presence or absence of a will.
  A person that leaves a legal will behind is said to have died intestate, while a person who dies minus leaving a valid will behind is said to have died testate.

  While the different states have differing views on wills, it is a fact that most of them recognize the document to be valid when it has been prepared by a person aged 18 years or older. Additionally, most states let a parent to strike their kids off a will as they feel like, but this doesn’t apply to spouses.

  The Priority

  When you have a surviving spouse, you get automatic priority in the succession laws. When your spouse dies and you have no surviving kids, then you as the surviving spouse will inherit the whole estate.

  Children are also given priority when the surviving parent is unmarried at the time of death of the other spouse. In such a case, the kids receive the entire estate.

  On the other hand, if both the spouse and kids are alive, then they split the property, though the amount each receives in the inheritance varies from state to state. Grandkids are reflected under special circumstances, for instance, if the parents are deceased, then the grandkids have the right to share in the estate.

  Collateral Heirs

  These include siblings and other relatives that aren’t direct descendants of the departed. In cases where the person didn’t have any kids, grandkids, parents or partner, then the siblings can inherit a part of the estate.

  Alternative Heirs

  If you don’t have relatives to inherit your estate, then you can designate the wealth to an acquaintance or a charity.

  Truth is that anyone has a right to inherit your estate, excluding the lawyer who made the will. It is usually better to choose the beneficiary rather than let someone else decide where your money needs to go.

  Without an heir, you can go ahead and leave the estate to a charity that you are comfortable with. It is therefore, prudent that you start your charitable acts when you are still alive so that you identify the best charity to leave the estate to.

  Before you make a charity your beneficiary, sit down with your estate planning lawyer who has familiarity with charitable funding to guide you. The lawyer will advise you on how to meet your goals easily and cheaply.

  Get Somebody to Assist with Your Decisions

  In most cases, the immediate family is usually tasked with assisting you to decide – but what happens when you don’t have anyone to turn to when incapacitated? This is why you need someone to handle critical decisions on your behalf.

  • Power of attorney (POA) – this is tasked with making crucial decisions for you in various areas. You can decide to have a POA for investments and another one for medical issues.
  • A living will – this person will make decisions for you when you near death.

  All these people are vital, work with your estate planning lawyer to choose the best one for your circumstances.
• Takeaway

  Even without kids or an apparent heir, you still need to come up with an estate plan. Make sure you have a will to guide the state on how to distribute your wealth. You also need to have a list of beneficiaries to receive your estate when you die.

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Estate Planning for Non-citizens

The number of non-citizens in the US has quadrupled since 1965. Studies show that non-citizensn in the US reached a record 44 million in 2017.

While you might find it pleasing to relocate to the country to look for work or to live, challenges arise once you decide to plan your estate.

As a non-citizen, the country permits you to buy and own properties, and pass them on to your family when you pass away. This is why it is vital to protect it for your loved ones.

While you have the right to use the same tools for estate planning akin to other citizens, the laws that apply to you vary slightly. This means that if you fail to handle your estate plan the right way, you will end up paying higher taxes than the citizens or end up having the estate tied up in court for a long time.

This is why it is essential to consult an estate planning lawyer to make sure the plan you come up with is all-inclusive, and it follows the set rules.
Here are a few tips to make you handle your estate plan the right way.

• Define Your Domicile

  You are considered to be domiciled in the country if you plan to live in the US without any intention of going back to your country of origin.

  To this end, you need to state the duration you wish to stay in the country, your green card status, ties to other countries, business interests, and any locations where you are affiliated.
• Appoint an Attorney

  Since your family might be in a far-off country, you must have an estate planning lawyer to assist with the process. The lawyer advises you on the steps to take and when to perform these tasks so that you uphold your status in the country.
• Appoint a Healthcare Proxy

  The minute you become debilitated and incapable of making decisions, you ought to have somebody to make medical judgments on your behalf. The person you choose will have the right to your medical info and the authority to talk to the doctors for you.
• Have an Advance Directive

  The advance healthcare directive is an order that tells the attending physician what to do when you are debilitated and cannot communicate your wishes.

  The doctor uses the document to confirm your wishes regarding therapeutic procedures that they might use to prolong your lifespan.

  Some people argue that the directive is similar to a proxy, but it is prudent to have both of them because each has its unique role.
• Plan for Your Final Rites

  Write down the details of what happens when you pass on. Your demise is an emotional period for your loved ones, but if you have a brief that tells them your specific wishes during the funeral, it makes things easy for them,
  With enough money, you can buy a plot in a cemetery. When you do, don’t forget to include this in the will.

  If the state doesn’t have this provision, then make things clear about what needs to be done when you pass on – regarding your burial and funeral. Leave the document with someone that you trust, and then ask them to present it to the executor when you become deceased.
• Have a Will

  While we recommend that you transfer your properties to your heirs through a trust, it is still vital that you come up with a will.

  The document identifies who will inherit what and also name a guardian if you have minors. It also appoints an executor to manage the estate and allocation process.

  Ensure you prepare the will in line with what your estate planning lawyer tells you. Document all aspects of the estate and then have witnesses to countersign the document.
• Create a Trust

  You must consider establishing a trust. Once you decide to set up one, you have four types that you can opt for:

  • Living trust
  • Revocable trust
  • Irrevocable
  • Testamentary

  You establish a living trust when you are still alive; then, your family can come up with a testamentary trust when you pass on.

  Having a trust will permit you to manage your estate the right way by use of a trustee. A trust is ideal when you want the estate to be managed the right way.
• In Closing

  Non-US citizens have a right to settle in the country. With this step come a lot of responsibilities that they need to handle. One of these is setting up the right estate plan for their loved ones. An estate planning lawyer makes it easy for this to happen.

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Estate Planning for New Homebuyers

It is a well-known fact that 33 percent of people buying houses are first-time homebuyers.

So, you have just bought your first house, or this is an addition to the ones that you already have. Well, many people are so excited when they buy a home that they forget one vital element of life – estate planning.

Studies show that more than half the population of adults in the country hasn’t come up with a will yet. They are still procrastinating on whether a will is ideal or not.

We have a few triggers that will make you decide to update your estate plan, that is if you have one, or to come up with a new one if you don’t have one at all. Purchasing a home is one trigger that you need to work with.

Let us look at a few tips to help you update your estate plan the right way when you buy a home.

• Decide on Ownership

  You have to decide on how the property needs to be passed on when you die, something that isn’t easy to think about when you have just moved into your new house.

  For instance, when you own the house alone, it will be passed on to your relatives as per the state laws or will go to the beneficiaries that you have spelled out in your will.

  On the other hand, if you have purchased the house jointly with your wife, then the property goes directly to her. If you own the house with someone that isn’t your relative, then the property is passed down to the person as per your desires.

  So, before you go ahead and come up with a way to pass on the property, make sure you consider these aspects, then update your estate plan the right way.
• Get a Power of Attorney to Handle Decisions

  Having a house is one thing, but managing it when you are incapacitated can be a tough task for you. This is why you need to come up with a document that mentions the person that will make the decisions on your behalf. The document that you come up with is called a power of attorney.

  When you have this document set up adequately, it allows you to name someone that you trust to handle your financial decisions when you are ill, and you cannot make decisions as required.

  If you don’t have someone in mind to take up this role, then a beneficiary might go to court and take up the part, which will take a lot of time and might result in missed payments on your mortgage.
• Update Your Will

  A home is a unique part of any estate plan because it doesn’t just represent a property, but a place that you have fond memories about.

  For you to transfer the property to someone that won’t cherish these memories is a bad thing – which is why you need to make sure that you pass the property to someone that will love the property.

  Without a will, you grant the federal government the right to administer the property on your behalf – meaning the state will determine who gets the house.
  You have put a lot of money, love and time into making a house your home, so it is just right that you decide who gets it so that they maintain it the way you want it to be handled.

  If you don’t want anyone to have the house, you can recommend the executor to sell it and then share out the proceeds with a few beneficiaries, or all of them.
• Choose an Executor

  The executor is that person that makes sure the desires of the will are followed to the latter. They make sure they distribute the funds to your beneficiaries the right way and then act on your behalf when you pass away.

  You need to choose someone that you trust, someone that will make sure the property gets to the beneficiary as you intend, someone that won’t side with a few beneficiaries to make others feel left out.

  After appointing the executor, let them know what you wish and then follow it to the latter. Tell them where you have stored the will so that they have access to it as needed.
• In Closing

  When you buy a new house, so many things change, among them the way ownership changes hands. You need to make sure you draft a will to tell your beneficiaries what you have decided. Take time to understand what the law stipulates about the estate plan. Talk to an estate planning lawyer for more information regarding the same.

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Estate Planning Essentials for College Students

College is an exciting time for young adults. It’s one of their first major steps towards adulthood and with it comes adult responsibilities. To make the transition easier, parents should sit down with their college kids and come up with an estate plan. This will ease any parental concerns and let the student live their college life to the fullest!

As college students around the country settle into their spring semesters, the last thing on their minds is how their minds is creating an estate plan or will – spring break is a stretch. Estate planning is uncharted territory for most college students. As a child, these are all duties parents automatically assume, but depending on a number of factors such as family dynamics, this could have disastrous consequences.. In New York, the age of majority is set at 18. This means anyone 18 and over has the legal right to make decisions regarding privacy, health/medical concerns, and finances without parental consent.

With than in mind, it is crucial for college students to devise some sort of plan that dictates where any assets will go, who is allowed to make medical decisions for them, and who has control/input over their private affairs. There are several things young students should consider including a living will/HIPPA, educational privacy agreements, and financial power of attorney. Deciding on some of these key things early in life will make the future much less complicated and is a good step towards having a successful adulthood.

• Creating a Living Will

  You are never too young to dictate what you want to happen when your dying. As a college student, death is most likely the farthest thing on your mind, but with the leading cause of death for people ages 15-24 being unintentional injury, it could happen. The sole purpose of having a living will is to legally document what types of life-saving and/or life-prolonging procedures you want administered if you are incapacitated. Some people may want every measure possible to be taken to save their life, while others want to keep it simple and pain free. These decisions are very intimate and personal, so it is important to strongly consider all your options and then get it written in stone.

  One of the first documents college students are required to sign is known as the HIPPA Authorization, or the Health Insurance Portability and Accountability Act document. By signing this, you are dictating the amount of privacy you receive as a patient. HIPPA prevents doctors from consulting your parents about any medical conditions, treatment, and care unless specified in the contract.
  By creating a living will and drafting a HIPPA document, you are ensuring that your medical treatment falls in line with your wishes and as a legal adult it is your right to choose.
• Do you need educational privacy?

  As a college student, academics should be one of your top priorities. The material is harder, the studying is much more intensive, and it costs money that one way or another you have to pay back. Part of this new level of education includes the right to educational privacy via the FERPA doctrine. Under the Family Educational Rights and Privacy Act (FERPA), parents are prevented from receiving any information about students from academic institutions, including grades, academic status, and health care. Taking this step may seem small, but it can be the first taste of true freedom. Signing it can bring forth a whole new level of responsibility.
• The Financial Power of Attorney

  Just like drafting a living will, selecting a financial power of attorney is a crucial step in one’s adult life. As you start taking on more responsibility – getting a job, paying your own bills, taking over car insurance – wealth gradually starts to accumulate. Having an official document outlining who is responsible for any financial obligations if you become incapacitated is wise. Most often, college students appoint their parents as the financial power of attorney, but this person can be anyone you trust and know has the income to support you if required. Just like when signing a lease or taking out a loan, having a cosigner can maximize your chances of success. Having a financial power of attorney acts as a safety net if for any reason you can’t pay your expenses. In the event you become incapacitated, these expenses still accumulate until officially stopped, so it’s critical to have someone who can take care of these things until otherwise stated. Taking this step provides you with financial security in a very delicate part of your journey towards adulthood.

  Among other things, a financial power of attorney can:

  • Pay Bills
  • Pay Taxes
  • Transfer/Sell Assets
  • Pay Medical Expenses

  As a college student, you have your entire life in front of you. The world is your oyster and you get to design the future you want for yourself. The decisions you make in college can impact the rest of your life, both in positive and negative ways. Life is already jam-packed with stress from school and work, making it very easy to ignore the little things and disregard the future. All these newfound adult responsibilities can be overwhelming, but having certain statutes in place can make things much easier. Before getting anything in writing, it is advisable to take some time to discuss these matters with a trusted individual such as a parent, legal guardian, or close friend. They can offer valuable insight and point you in the right direction as to where to start.

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Estate Planning During Family Gatherings

Estate planning is a family activity. Getting the entire family together can be difficult. People have their own lives involving work, school, family activities, and other time-consuming obligations. Family gatherings such as holiday parties and picnics can be the perfect setting for an estate planning discussion to take place. This article has several tips to make these meetings flow seamlessly.

Family gatherings hold a special place in many of our hearts. Reconnecting with family members we haven’t seen in years, reminiscing about joyous memories over the years, remembering those who’ve passed in recent years, introducing children to new cousins. These reunions often take place during the major holidays including Easter, the Fourth of July, Thanksgiving, and Christmas. Having these reunions can be very positive for families as it allows people to slow down and really take in what’s most important to them. Family gatherings also happen to be an excellent place to discuss estate planning.

Whether a family is two people or sixty people, making an estate plan can be an intense process and there are many possible constituents worth consulting, especially within an extended family. While some families are closer than others, it is uncommon for entire families to all congregate at once so it is important to take advantage of these opportunities as they arise. The items that should be discussed regarding your estate vary widely. Every family is different – different environments, different social dynamics, different levels of comforts sharing intimate knowledge. In most instances, there is no need to share dollar amounts and other critical personal information at these meetings, but an important thing you must weigh is whether or not to share certain information that may cause controversy. In some instances, information may be worth hiding, but it opens the door to accusations and conflict later than can majorly complicate estate planning. A good baseline is to share the information that’s necessary for everyone in the group to understand, without oversharing.

• Tips for the Estate Planning Discussion

  Going into a family meeting can be confusing at times. Different people bring different perspectives and the lines blur between what is beneficial and what is negative at times. It can also be quite awkward and in some cases, controversial, bringing up the topic of death. No one really likes to touch upon the topic of death and estate planning can be cast in a negative light because of it. By planning ahead, you can offer a degree of control that pushes the conversation towards a more positive position overall. The tips below will serve as a great starting point when coming up with a plan:

  • Don’t call for a meeting before a holiday

  If you decide to bring up the topic of estate planning during a holiday, try to bring it up after the actual holiday and any major festivities have occurred. These types of meetings typically bring some negative energy to the table, so having it take place after any major fun plans will keep from spoiling everything.

  • Consider having your estate planning lawyer and accountant present at the meeting

  If the meeting is taking place outside of a holiday break, having your estate planning lawyer and accountant present can make the entire conversation smoother. It also brings a note of legitimacy to the meeting and makes any information you present seem more concrete. If you can’t have your estate planning attorney at the meeting, work with them to create a plan so you don’t go into the meeting blindly.

  • Hire a babysitter

  During serious adult conversations, children should not be present unless absolutely necessary. They can cause major distractions and disruptions that most family members won’t particularly appreciate, especially the ones without children. Hiring a babysitter or even paying an older teenage family member to watch the younger children will make the meeting flow more smoothly and without distraction.

  • Have a plan

  Going into the meeting with a set plan will make the meeting much less confusing and easier to digest. The plan doesn’t necessarily need to go into great depth and touch upon every single topic you want to discuss. Creating an outline with basic topics and discussion points, while leaving wiggle room for discussion is ideal. Also, by creating an outline with clear points, you make it easier to move past any elaborate conversation or diverging arguments.

  • Timing

  Consider having an official start and stop time. Having a time frame prevents excessive tangents of conversation from arising and opens the door for people on a tight schedule to be present. Picking a time where most people are free is also recommended to allow for optimal information coverage.

  • Encourage Discussion

  Estate planning isn’t the most exciting of topics for most. Encouraging discussion, preferably of the positive variety, can make the conversation more stimulating. People want to feel involved and should feel welcome to express any opinions they might have. Getting family members on the same plan initially allows much less room for arguments and disputes later.

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Estate Planning: Handling Creditor Claims

Every state comes with its own rules and regulations on how the debts need to be paid.
The executor is required to notify the creditors that the person has passed away so that these creditors can lay claim for their payments. The way the notice is sent to the creditor varies from one state to another. As an executor, you might have to publish notices in the dailies or send letters of notification directly to the creditor.

• When Does the State Come In

  Once the executor notifies the creditors, they have to follow the rules that have been put in place by the state regarding asking for payment of their debts. For instance, the creditor might be required to lay claim in a certain period of time.
• Make It Easy for the Executor

  When preparing your estate plan, it is advisable that you come up with a list of creditors that shows their names, contacts and the amount of debt that you owe them.

  Keep on updating this list because cases have been reported of creditors claiming more than what you have listed down. The executor needs to be very careful because he might find himself settling debts if creditors don’t get paid.

  At times, you might find people masquerading as creditors with the aim of getting paid when they didn’t have any business with the deceased. The executor needs to be careful with such people.

  If the executor matches the claim to what has been listed on the documents, then they can pay the bill using part of the estate. On the other hand, the executor has the right to reject fraudulent claims, a process that might lead to lawsuits with the aim of getting payment made. This can lead to unwarranted expenses and a lot of delays.
• Determine the Value of the Estate in Line With the Debts

  Once the executor determines the number of valid claims that have been raised against the estate, he can go ahead and confirm whether there is enough in form of assets to pay off the debts. If the estate isn’t big enough to pay off the debts, then the estate is regarded to be insolvent.

  If the estate doesn’t provide enough money to pay the debts, then the beneficiaries won’t get anything.

  When determining who to pay first, you need to start with payment of taxes (federal and probate), then go to probate expenses, then funeral costs, illness costs and finally paying of general creditors.

  The best way to deal with creditor claims is through a qualified estate planning lawyer. The aim of the lawyer is to work closely with the accountant handling the estate then incorporates the debt payments into the estate plan. The lawyer refers the executor to trusted tax professionals to make sure nothing goes wrong.
• How Can You Avoid Claims on Your Estate?

  This is the question top on many people’s minds when they start planning their estate. One of the best ways to avoid contests on your property is to use a living trust.

  The living trust doesn’t mean that creditors will forego their money and leave the estate as it is, rather, they will have to substantiate that they have proof of an existing debt before they get paid their bills.

  The aim is to try and get the court to approve their payments. This takes longer and is more expensive, which means only the genuine creditors are willing to go through such a process.
• Reimbursement of Paid Bills

  For some people, once the family realizes that the deceased had debts, they go ahead and continue paying off creditors. This is true if the deceased made the debts known to the family members.

  If the family has settled some debts before the case goes to probate, the executor of the estate needs to reimburse them as required. However, his comes with a condition. If the deceased left the responsibility of refinancing mortgages and other debts to a beneficiary, then he shouldn’t be refunded.
• Mortgages

  A beneficiary who ends up with a real estate property will have to assume the existing mortgage during and after the probate case.
• In Closing

  When you have assets, make sure you meet with your estate planning lawyer to come up with all the debts that you owe. This makes it easier for your family to handle the claims after you are deceased. The list should include the name of the creditor, what you owe them and the repayment agreement.

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