Thursday, July 26, 2018

Estate Planning and Blended Families

Blended families, or families that include a stepparent, stepsibling or half-sibling, are common. In fact, according to a Pew Research Center study, 16 percent of U.S. children live in a blended family. When it comes to estate planning, the needs of blended families differ from the needs of more traditional families. Make sure the special estate planning needs of your blended family are met by utilizing the following tips.

Discuss your decisions in advance

Everyone, regardless of if they’re from a blended family or not, should discuss their estate planning decisions in advance. Not only does discussing your decisions provide your loved ones with insight into why you’ve made certain choices, but it is also protects against hurt feelings down the road. A death in the family is stressful, as is terminal illness or the incapacitation of a loved one. Family members can get angry towards one another when dealing with the emotional and logistical fallout of a stressful situation. This can create problems and result in arguments.

For example…

John Smith and his second wife, Jane, have been married for ten years. The couple has children together, and John has an adult son from a previous relationship. John was recently in a car accident and is incapacitated. His legal documents name Jane as his medical power of attorney. Charlie, John’s son from his previous marriage, is upset his stepmom is his dad’s POA. Charlie feels that Jane doesn’t know what his dad would really want in this situation. Jane and Charlie fight about it, and the whole situation becomes more stressful with the added family tension.

If John explained the reasoning behind his decision to name Jane as his POA in advance, odds are Charlie wouldn’t be upset. The extra stress wouldn’t be added to the situation, and the family wouldn’t worry about taking care of John while dealing with arguments. This type of interfamily conflict doesn’t just occur in blended families. However, with different types of parent/child and sibling/stepsibling relationships, blended families should take extra care to explain all legal decisions to everyone.

Define fair and plan accordingly

When it comes to leaving an inheritance to heirs, everyone has a different opinion. Some people opt to donate everything to charity. Others want to pass as much financial support as possible down to their heirs. Regardless of how you define fair in terms of inheritance, it’s important to plan accordingly. This is especially true for members of blended families. Often times, couples set up their estate plan to have everything go to their spouse if he or she survives them. Then, once the surviving spouse passes away, assets are typically left to the couple’s children or grandchildren. This setup can cause problems for blended families, however.

For example…

Dan and Deb’s estate plan is set up to have all assets go to the surviving spouse if one of them dies first. Then, assets will be divided equally among the couples children and stepchildren. Dan is 65 years old. Deb is 35. While there’s no way to predict which one of them will pass away first, odds are pretty good that Deb will survive Dan. This means that Dan’s children from his previous relationship – who are roughly the same age as Deb – will not receive their share of inheritance for years, which is potentially problematic.

If Dan and Deb see this setup as fair, then there’s no problem. However, if Dan prefers that his older children receive their inheritance following his death, he should create a workaround using his legal documents. For example, Dan could figure out each child’s fair share and name his adult children as beneficiaries on a life insurance policy or some other accounts. That way, they receive their share of inheritance outside the probate process. Deb can then use her plan to take care of the couple’s younger children without having to worry about Dan’s older children.

Using a workaround may seem odd, but it adds a layer of protection for everyone. This is because when someone inherits assets, the assets officially become theirs. Any previous plan for distribution can be thrown out the window. So, say Dan died first and left everything to Deb. In the years following Dan’s death, his adult children and Deb had a falling out. Deb updated her estate plan accordingly and is now leaving nothing to Dan’s adult children, even though he would’ve wanted them to receive a share of what she inherited from him. Deb’s decision is legal.

How can Boyum Law Firm help you?

Boyum Law Firm can help you with your estate planning, Medicaid planning, and probate law needs. To contact Boyum Law, click here.

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Thursday, July 19, 2018

Do You Need A Living Will?

Imagine lying in a hospital bed. You were in a car accident, suffered severe injures, and are in a permanent vegetative state. As the doctor explained to your loved ones, you won’t survive without life support. So, what happens to you next? Well, that depends on whether or not you’ve created a living will. Read on to discover what a living will is and how it can protect you and your loved ones from a scenario like the one above.

What is a living will?

A living will is one of five essential estate planning documents. It explains whether or not you’d like to be kept on life support if you cannot survive without it, are terminally ill, or in a persistent vegetative state or coma. Additionally, your living will expresses what pain medications you do and do not want to receive as well as your religious beliefs in relation to medical care. In other words, your living will serves as a physical, legal copy of all the decisions you would’ve made for yourself in the event you need life support and are unable to express your wishes.

How does a living will protect you and your loved ones?

A living will protects you and your loved ones in different ways. First, the document protects you by clearly stating your wishes. That way, you receive the care you want even if you’re unable to voice your opinion. Second, the document protects your loved ones from having to make decisions for you. Having doctors tell you that your loved one needs life support to survive is difficult. The situation becomes even more challenging when you have to decide whether or not they should receive that care. By clearly stating your wishes in advance, you can protect your loved ones from having to make the tough call for you. Additionally, you can avoid family drama in the wake of tragedy. Your loved ones may not all agree on what to do for you. You can avoid family warfare by making the decision for yourself in advance.

How can Boyum Law Firm help you?

Boyum Law Firm can help you with your estate planning, Medicaid planning, and probate law needs. To contact Boyum Law Firm, click here.

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Tuesday, July 10, 2018

3 Common Estate Planning Myths Debunked

Estate plans may look like unassuming pieces of paper, but for being made of something simple, they’re shrouded in mystery. In order to clear up some of the mystery surrounding estate planning, we’re debunking three common estate planning myths.

1. Myth: All you need is a last will and testament.

One common misconception that many people have about estate planning is that all you need is a last will and testament. While a last will enables you to cover a lot of ground when estate planning, it can’t do it all. For example, your last will won’t be able to help you and your loved ones in the event you become incapacitated. You need a durable and medical power of attorney (POA) in this type of situation. This is because POA documents enable you to name an individual to make medical and financial decisions on your behalf. For this reason, creating a last will and testament is a great place to start your plan, but it’s important to cover all the bases with other documents. Your estate planning attorney should discuss which documents are best for you and your plan.

2. Myth: There’ll always be time to create a plan later.

Another common myth that many people believe about estate planning is that there’ll always be time to create a plan later. It’s easy to push your estate plan to the side and say you’ll take care of it when you’re older. However, procrastinating can land you in hot water. This is because creating an estate plan provides a variety of benefits, such as:

  • the ability to protect you and your loved ones from the unforeseeable.
  • the ability to plan for the distribution of your assets.
  • the opportunity to appoint representatives, such as a personal representative and/or legal guardian for your children, in your documents.

If you become incapacitated or die before creating your plan, you could leave your loved ones facing many challenging decisions. Plus, your assets will be subject to the probate process and probably won’t be distributed as you would’ve liked. For this reason, it’s best to create a plan now so you’ll be protected in the future.

3. Myth: Once you create a plan, it’s set in stone.

Finally, a third common estate planning myth is that once you create an estate plan, it’s set in stone. The truth is, estate plans are flexible and can be updated at anytime. Whether a relationship has changed within your family or your original personal representative has died and you need to appoint a new one, you can update your plan by meeting with your attorney and drafting new documents. An important side note, however, is that using an attorney to create your estate plan is important if you want to be able to update it. Specific language has to be included in your documents stating that old drafts are void with the creation of a new one. Do-it-yourself services might not include this specific language, which is why you should always hire an estate planner to create your estate plan.

How can Boyum Law Firm help you?

Boyum Law Firm can help you with your estate planning, Medicaid planning, and probate law needs. To contact Boyum Law Firm, click here.

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Thursday, July 5, 2018

3 Ways to Utilize Your Last Will and Testament

From appointing a legal guardian for your kids to naming a personal representative, creating a last will and testament enables you to cover a lot of ground when it comes to estate planning. Make sure you utilize your legal document to its fullest potential by using your last will and testament to do the following:

1. Name a legal guardian for minor children.

Use your last will and testament to its fullest potential and build on your plans by naming a legal guardian for your minor children. Part of parenting is making plans. From scheduling play dates to setting up college savings funds, you meticulously make plans to ensure your children are well cared for.  You plan to be there for every milestone, but what if the unthinkable happens? Have you made plans for who will step in and raise your child if you’re gone? The best way to prepare for this situation is to designate a legal guardian. A legal guardian is a person who makes legal, medical, and financial decisions for a ward. You name a legal guardian in a last will and testament. By naming a legal guardian, you can ensure your child is always well cared for, even if your best laid plans fall through.

2. Distribute your assets.

Another way to utilize your last will and testament is to use the document to distribute your assets. Your last will is customizable, so you can work with your attorney to create a plan and distribute your estate as you like. There is one drawback to using your last will to distribute your assets, however. Since your will has to be filed in probate, it’s a public document. Anyone can access it and see who you gave what. If privacy is a concern for you and your heirs, creating a trust is the better route to go when distributing your assets since trust documents are private. If you’re keeping things simple and don’t have privacy concerns, your last will is a quick and efficient route to take.

3. Name a personal representative.

Finally, you can use your last will and testament to name a personal representative. A personal representative, known as an executor in other states, is an individual you appoint to settle your estate when you die. Your representative completes a variety of tasks to settle your estate. These tasks include paying off debts and collecting, protecting, and distributing your assets. Selecting a trusted individual is the key to ensuring your estate is settled smoothly. By naming your personal representative in your last will, you can guarantee you have the right person for the job. If you don’t name a representative yourself, the court will appoint one for you. The court may appoint a candidate that you would’ve considered less than ideal. For this reason, it’s best to utilize your last will and testament and take care of the appointment yourself.

How can Boyum Law Firm help you?

Boyum Law Firm can help you with your estate planning, Medicaid planning, and probate law needs. To contact Boyum Law Firm, click here.

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