Estate Plan Updates for the New Year

Since estate planning enables you to create a plan for the unimaginable, provides your family with financial security, and prevents potential warfare over assets, it’s an important task to check off your to-do list. However, estate planning isn’t a one-and-done deal. A solid estate plan is routinely updated. The start of the new year is a great time to take stock of last year’s changes and make updates to your plan as needed. Read on to discover which parts of your estate plan you should review for potential changes.

1. Beneficiaries

The start of the new year is a great time to review the beneficiaries listed on your accounts. If you recently became married or divorced, checking beneficiaries on your accounts is especially important. This is because the person listed as a beneficiary receives the assets in your account when you die. You’d want to remove an ex spouse or add a new spouse. Or, if you’d like the assets in your accounts to go to your children or a charity, it’s important to double check that they’re listed on the account. This is because the person listed as a beneficiary will receive the money in the account even if your will says otherwise.

2. Powers of Attorney

It’s also important to review your durable and healthcare power of attorney documents at the start of the new year. It’s important to review your powers of attorney because the individuals listed there have the power to make financial and medical decisions on your behalf if you become incapacitated. If you’d no longer like the individuals listed to make decisions on your behalf or if they are no longer able to, you need to update your documents.

3. Guardians for minor children

Similar to checking your powers of attorney at the start of the new year, you should also check the guardians you’ve listed for minor children. The start of the new year is a great time to check in with your selected guardians to make sure they’re still willing to step in and raise your children if something happens to you.

4. Executor(s)

You also need to check who you have listed as the executor of your will at the start of the new year. If your executor has become ill or has died, you need to update your estate plan to include a new executor.

5. Changes in assets

Any changes in assets over the course of the past year also require estate plan updates. You can change the amount your heirs will receive based on the changes in your assets. Or, if you’ve gained family heirlooms or items with sentimental value, you should update your last will and testament to reflect who you’d like to receive those items when you’re gone. This will help to prevent family warfare later on.

To contact Boyum Law Firm for help with updating your estate plan with the new year, click here. 

 

 

 

 

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How to Use Your Estate Plan to Make Charitable Donations

Whether it’s donating time, food, or gifts to those in need, many people give back to their communities during the holiday season. However, if you’re looking to make a lasting impact, you should consider making a charitable donation through your estate plan. Read on to discover the benefits of using your estate plan for charitable giving and to learn how to set up a plan.

Benefits of using your estate plan for charitable giving

Using your estate plan for charitable giving provides a variety of benefits for you and your community. For example, donating to charity through your estate plan enables you to support a cause that’s important to you, even when you’re gone. Additionally, making charitable donations through your estate plan comes with certain types of tax breaks and retirement benefits depending on how the donations are made. At the same time, the organization you support gets the resources it needs to operate. So, you’re able to help others as well as yourself by giving back through your estate plan.

How to set up your estate plan to make charitable donations

There’s a variety of ways to set up your estate plan to make charitable donations, including:

• • Using your last will and testament: The simplest way to make a donation, according to this CNBC article, is to use your last will and testament. In order to use your last will and testament, all you need to do is list what assets you’d like to go to a specific charity. Then, the charity will receive those assets during the probate process after your death.
  • Listing charities as beneficiaries: This strategy is also fairly simple. You would just need to list a charity as the beneficiary to an account. Then, after you’re gone, the money in the account goes to the charity listed.
  • Creating a split-interest trust: This strategy is more complicated because it enables you to make a donation while still keeping some of the benefits of owning the assets. As explained in this this Schwab article, two types of trusts are commonly used when making charitable donations. The first is a charitable remainder trust. Using this type of trust, you, the donor, receive a fixed payment or percentage from the trust. This payment is made annually for a fixed number of years or until your death.  The second type of split-interest trust is a charitable lead trust. With this type of trust, the charity receives an income for a certain number of years. Once the number of years is up, the remainder of the trust goes back to you or your heirs.

Since there are many ways to use estate planning to donate to charity, you should consult an attorney. This is because an attorney will be able to help you decide what your best option is based on the type of tax and retirement benefits you are looking for. To find out how Boyum Law Firm can help you donate to charity through your estate plan, click here.

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Give the Gift of a Completed Estate Plan This Holiday Season

It’s the holiday season. Snow, gift giving, and time spent with family abound. If you’re struggling to come up with a gift idea for your loved ones, consider completing your estate plan. Not only will this gift create peace of mind, it’ll take the guess work out of your final wishes and create a plan for the unimaginable. Read on to discover the benefits of giving the gift of a completed estate plan this holiday season.

Create Peace of Mind

Completing your estate plan is an excellent gift to give this holiday season because it shows your loved ones you care about their peace of mind and that you’re prepared for the future. This is because sitting down with a lawyer and constructing the legal documents needed to create an estate plan requires thinking through many important decisions. Some of these decisions are stressful because they require you to consider the unimaginable, such as if you become incapacitated. Other decisions are more cheerful, such as deciding how you’d like to pass your legacy down to loved ones. No matter what type of decisions you’re making, sitting down with a lawyer to get your affairs in order shows loved ones you care about their futures and want to give them peace of mind. For this reason, completing your estate plan is a great gift idea.

Take the guess work out of your final wishes

Creating a completed estate plan is a good gift to give your loved ones because it takes the guess work out of your final wishes. Estate planning takes the guess work out of your final wishes by enabling you to decide who gets what in advanced. This is an important step to take for your loved ones. As an estate planning law firm, Boyum Law knows nothing hurts a relationship between family members like fighting over a deceased loved one’s possessions. By having the proper legal documents in place, you can ensure your loved one’s relationships don’t suffer when you’re gone. This is because you will have already decided who gets what. Since a completed estate plan prevents potential family fights and relationship damage, it is a good gift idea.

Create a plan for the unimaginable

Another benefit to giving the gift of a completed estate plan is the ability to plan for the unimaginable. Estate planning enables you to create a plan for the unimaginable through the use of a living will, powers of attorney, and HIPPA release. This is because these documents layout in advanced what type of life sustaining care you’d like to receive, who can make medical and financial decisions on your behalf, and who has access to information about your health in the event you become incapacitated. With these decisions made in advanced, your family will not have to worry about making decisions for you. Instead, they can follow your pre-made plan and not worry if they’re making the right choices. For this reason, you should consider giving the gift of a completed estate plan this holiday season.

If you’d like to give your family the gift of a completed estate plan this holiday season, contact Boyum Law here.

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A Revocable Living Trust Vs. a Will: Which One is Right for You?

When it comes to estate planning, it’s important to make sure your documents are designed to fit your needs. Different legal documents have different purposes, as discussed in an earlier blog post. However, the purposes of some documents do overlap, such as a revocable living trust and a last will and testament. Both of these estate planning documents enable you to pass assets down to heirs. However, both accomplish this task in a different way. Read on to discover the benefits and drawbacks of using each document to pass along assets.

What is a revocable living trust?

A revocable living trust is a type of trust often used in estate planning. It’s made up of three components: a grantor, who creates and places assets into the trust; beneficiaries, who receive the assets; and a trustee, who manages the trust.

Benefits

1. 1. Flexibility: One of the key benefits of using a revocable living trust to pass down assets to heirs is flexibility. A revocable living trust is flexible because the trust’s provisions can be changed at any time. This means that the grantor’s assets are not locked in and remain accessible.
   2. Durability: Another benefit to a revocable living trust is durability. A revocable living trust is durable because assets placed within this type of trust will continue to be managed even if the grantor becomes incapacitated or dies. This means that the assets placed within this type of trust are protected against unforeseeable circumstances.
   3. Privacy: Privacy is perhaps the most well-known benefit of a revocable living trust. A revocable living trust provides the grantor and their heirs with privacy by avoiding probate. Once documents are filed in probate, they become public record. Anyone can access public records, so by avoiding probate, the public is not privy to who gets what in the family.

Drawbacks

Limited Ability: The main drawback of a revocable living trust is its limited ability. A revocable living trust is limited in its abilities because its only use is for passing assets down to heirs.

What is a last will and testament?

A last will and testament is a customized document. It lists instructions for how you’d like your assets distributed among your heirs. You also appoint a personal representative, otherwise known as an executor, in this document. The executor is responsible for distributing your assets.

Benefits

Multi-Functionality: The main benefit of a last will and testament solves the main drawback of a revocable living trust. This is because a last will and testament covers more ground when it comes to estate planning and is multi functional. A last will and testament is multi functional because besides including a place to list instructions for the distribution of your assets, it provides a space to appoint a legal guardian for minors. For this reason, families that include small children should create a last will and testament.

Drawbacks

1. A lack of privacy: One of the main drawbacks to using a last will and testament to pass down assets to heirs is that a last will and testament must be filed in probate court. As previously discussed, once the document is filed in probate court, it becomes public record. This means the inheritance of your heirs is public information, so anyone can access the information in your document.

2. The Unknown: The unknown is a drawback of using a last will and testament to pass down assets to heirs because a last will and testament doesn’t take effect until death. This means that if you become incapacitated, the assets listed in your last will and testament cannot continue to be managed.

Solution? Create both.

The easiest way to get around the drawbacks of both documents is to create both. That way, you have a guardian appointed, but your assets can avoid probate and have an added layer of protection in the event you become incapacitated. To learn how Boyum Law can help you create your own revocable living trust and last will and testament, click here.

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How To Stop Mail For A Deceased Loved One

Mail is a fact of life, and with it comes junk mail. When a loved one passes, one of the first steps the executor of the will must take is to have the deceased’s mail forwarded to the executor’s address. This will include not just the important mail, but also the inconsequential. Read on to learn how to stop receiving a deceased person’s mail.

After Probate

The personal representative of an officially closed estate that has been through probate can hand-deliver or mail a copy of the probate order closing the estate to the post office local to the deceased’s address. They must request all mail service be stopped. If this step is not taken, the post office will only honor a forwarding order for one year.

Commercial Mail

Commercial marketing lists specifically can be stopped before the important lists. To do so, go to the Deceased Do Not Contact Registration page on DMAchoice.org. The site was created by the Direct Marketing Association to help individuals manage their mail. Withing three months after registering the decedent on the website, the junk mail should start to taper off.

Subscriptions

Magazines and other subscriptions are different than other forms of commercial mail. This can also include solicitations from organizations to which the deceased previously donated. To cancel a subscription for a deceased person, contact the sender directly and inform them of the subscriber’s passing. Most magazines will even refund any unused subscription.

Shared Address

If you are received a deceased person’s mail because you are the current occupant of their mailing address, simply write “Deceased, Return to Sender” on all mail meant for the deceased person. Leave it in your mailbox just like any other letter. Do not open or read the mail, as opening mail for someone else is a federal offense.

 

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How a Revocable Living Trust Protects Your Privacy

When it comes to estate planning, it’s important to cover all the bases. Creating these four estate planning documents is a solid start. However, people with privacy concerns should take an extra step and create a revocable living trust. Read on to discover what a revocable living trust is and how it works to protect your privacy.

What is a revocable living trust?

A revocable living trust is a type of trust often used in estate planning. It’s made up of three components: a grantor, who creates and places assets into the trust; beneficiaries, who receive the assets; and a trustee, who manages the trust. The grantor is allowed to act as their own trustee, which enables them to continue to manage their own investments and finances after they’re placed in the trust. A family member or corporate trustee could be appointed instead, though, if preferred.

How are assets managed?

Assets are managed by the trustee, but the grantor still has a say because the trust’s provisions can be changed at anytime. This means the grantor’s assets are not locked into the trust, unable to be used.  One benefit of this type of trust is that assets will continue to be managed even if the grantor becomes incapacitated or dies.  So, this type of trust provides a certain amount of financial freedom for the grantor and holds up under unforeseeable circumstances. It can also continue to be used for generations.

How does a revocable living trust protect privacy?

A revocable living trust is able to protect a family’s privacy by letting trust assets avoid probate. Once a person’s legal documents go to probate, they are public records. Public records can be viewed by anyone. Since the assets listed in a revocable living trust don’t go to probate, they aren’t available to the public. This means that outside people do not have access to information about who in a family is a beneficiary of a trust. So, family finances and the squabbles that come along with who gets what are able to stay within the family with a revocable living trust. Prying eyes will have to look elsewhere to discover financial information.

Who should create a revocable living trust?

Estate planners often push for celebrities and the ultra wealthy to create a revocable living trust in order to protect their privacy. However, you don’t need to be a celebrity or Warren Buffett to want privacy regarding financial affairs. A revocable living trust can be created for anyone who wants to keep their family finances private.

Contact Boyum Law Firm here to create your own revocable living trust.

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How To Choose A Legal Guardian For Your Children

When you are taking care of your children, it is hard to fathom that you may not be there one day. Things happen every day that cannot be predicted. It is important to plan for every eventuality, especially when children are concerned. Read on to learn how to pick the right legal guardian for your children in case anything happens.

The Basic Qualifiers

Ask yourself these questions about a potential guardian to eliminate unsuited candidates and highlight your best options.

Values

Does the prospective guardian share the same basic values as you? Beliefs and values are an important part of a child’s upbringing, so you should make sure that your choice will continue the same moral, religious, personal, and/or political values for your child.

Relationship

The relationship a guardian already has in place with your child is important. It is much easier for a child to adjust to a new life with their guardian if they know them well.

Family Situation

If a potential guardian already has children, will they be able to take in yours? It is important to consider that a full house may not have room for any more kids, no matter how well they would care for them otherwise.

Age and Health

Guardianship can be a long commitment, depending on the age of the child. Make sure the guardian you choose will be fit and able to take care of your children at least until they hit the age of majority.

Location

If your children are old enough to have already established a social group, relocating them cross-country can be damaging to their emotional and mental well-being, especially during what will already be a difficult time in their lives.

Still, there are more factors to consider when choosing and supporting a legal guardian for your children.

Financial Stability

Ideally, your estate and life insurance will leave enough to provide for you children through college. No matter your financial situation, your children will likely have an inheritance that needs to be managed. If the best option for a child’s guardian is not the best option to manage the finances of their inheritance, you can appoint both a personal guardian and a guardian of the estate. This way, your children receive the best care possibly while their inheritance remains protected.

Ask The Guardian

When you feel you have made the best choice, it is important to get the consent of the guardian you have chosen. Make sure they understand why you chose them and what their responsibilities would be. Also make sure that they are willing to take your children in.

Update Your Will

Once you have made your choice, put it in writing. Putting a guardian in your will, however, does not mean that it cannot be changed. If your life changes, make sure to update your choice in your will to reflect the current situation.

 

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