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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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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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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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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How To Organize Your Digital Estate In Three Steps

In the age of technology, the number of online accounts people own is increasing. These accounts, otherwise known as digital assets, affect your estate plan. Important documents, such as bank statements and bills, used to arrive in the mail. Now, most people receive these documents via password-protected email accounts. This impacts your estate when you die because it affects your personal representative’s ability to gather your assets and pay your debts. Additionally, other online assets, such as your social media accounts, will need to be deactivated or memorialized when you die. You can make the probate and end-of-life process easier on your personal representative and heirs by organizing your digital assets with these three steps.

1. Catalog Your Accounts and Assets

Cataloging your accounts and assets is the first step to organizing your digital estate. Odds are, you have online accounts ranging from iTunes to email to Facebook. Creating a list of all your accounts and assets will help you keep track of what you have. This will come in handy later on when your heirs or personal representative are memorializing or deactivating your accounts and sorting through your assets during the probate process.

2. Keep Track of Login Information

Keeping track of login information is the next step to organizing your digital estate. There are two ways to keep track of your login information:

1. The old fashioned use of pencil and paper.

2. Going digital.

Writing down your login information using pencil and paper is quick and easy. If you’re more tech savvy, an app or website is the better way to go. Apps, such as the ones discussed in this article, make it easy to store password information on your phone or tablet. Websites, such as KeePass, can also help you keep track of passwords.

Note: Safety precautions are necessary, but there are benefits.

Both routes for organizing your login information require safety precautions. If you use the old fashioned paper and pencil option to organize your digital estate, split up and store your usernames and passwords in two different locations. That way, no one can easily access or take all of your information. Or, keep your logins with a trusted individual or a secure location, such as a safe.

Going digital also requires safety precautions. Online accounts are hackable, so it’s important to make sure the site you use is reputable. Also, make sure you pass along your login information for the app or master key for the website you use to a trusted individual. Otherwise you’ll be back to square one and no one will know your login information or be able to easily access your accounts.

By organizing your login information, you can cut down on the time your personal representative or heirs spend gaining access to your online accounts and assets. This could help your estate get settled more quickly.

 3. Leave Instructions In Advance

The final step to organizing your digital estate is leaving instructions in advance. Similar to using your estate plan to leave burial instructions, you should leave instructions for your digital estate. By leaving instructions, you can dictate if you would or would not like your social media accounts deactivated or memorialized. You can give someone else permission to take over your blog or website, and you can ensure your heirs have access to any digital assets you own, such as cryptocurrency.

How Can Boyum Law Firm Help You?

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

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Starting a Business? Boyum Law Firm Can Help

You have the perfect business idea, but mountains of paperwork and confusing legal requirements are preventing your dream from becoming reality. Contacting Boyum Law Firm for help makes the process of setting up your business easier. Here’s why:

We have experience.

Boyum Law Firm has helped numerous clients create limited liability companies and/or corporations for their businesses.  Working with other clients has enabled us to strengthen our skill set, and everything we’ve learned through the years will be applied to help you and your business. Additionally, we’re well-seasoned veterans at filing the state and federal paperwork needed to turn your dream into reality. Filling out Nebraska Tax Applications and obtaining Employer Identification Numbers from the IRS becomes much easier the tenth time around, so we’ll have your business up and running in no time.

You have questions. We have answers.

Creating your own company leads to many questions, such as what type of entity is right for me? How do I name my business? Does Nebraska law require me to create a limited liability company (LLC) or corporation for my business? Boyum Law has the answers to all three questions and more. Additionally, we have questions of our own to ask you in order to ensure we lead you and your business down the right path. After all, there are benefits and drawbacks to creating an LLC vs. a corporation, so it’s important to make sure you choose the option that best fits your business needs.

We speak legalese.

Creating an LLC or corporation requires creating legal documents with language that can be a bit complicated. Luckily, our staff at Boyum Law is fluent in legalese. This means that we can explain how clauses within your operating agreement and other legal documents work to protect you and your company.

We’ll help you keep track of important documents.

Boyum Law creates a handmade binder for each client with an LLC and corporation. We’ll place all of your important paperwork in this binder so you can keep everything from your business minutes to by-laws all in one safe place.

Contact Boyum Law Firm

To contact Boyum Law Firm for help with setting up an LLC or corporation, click here.

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Transparency Is Key When Estate Planning: Here’s Why

Talking about death, end-of-life decisions, and money is uncomfortable but necessary when estate planning. It’s not enough to talk to an attorney in order to make a plan, either. Sharing information with your loved ones and the reasoning behind your decisions is also important. Here’s why:

Peace of Mind Matters

Your loved ones, especially adult children, worry about what will happen to you in the event of a medical emergency or incapacitation. Creating and sharing estate planning documents with them can provide peace of mind. If they know you’ve created a plan for worst-case scenario situations, they won’t be as worried about the unknown and unpredictable.

Family Warfare Happens

Most people have seen or read a horror story about inter-family conflict following the death of a loved one. You might think your loved ones could never fight like that. However, no matter how confident you are in your heirs’ ability to get along, it’s important to remember that grief changes things. Emotions are heightened during the stressful situation. Things that seemed minor, such as who inherits your coffee pot, might now feel major. Additionally, if you were the parent who served as your children’s referee during conflicts, they may argue without  being able to find a solution on their own.

By talking through inheritance decisions in advance, you can prevent family warfare. Having an open conversation with loved ones enables you to lay it all out on the table. You can provide insight on the reasoning you used to make inheritance decisions. This can help prevent hurt feelings and arguments later on. Family warfare happens, but transparency could help prevent it.

Decisions Aren’t Always Yours Alone

Estate planning documents, such as powers of attorney documents, include places for you to list another person in some capacity. For example, your last will and testament includes a space to list a legal guardian for your children. It’s ultimately up to you to decide who the best person is for a variety of jobs in your estate plan. However, just because you’d like a specific person to fulfill a certain role in your plan doesn’t mean that person is actually interested in the job.

It’s important to remember that estate planning roles require your selected individual to fulfill a variety of responsibilities. Just because you’d like to list your sister as the legal guardian of your children does not mean she wants that responsibility. For this reason, it’s important to talk to your first-choice person to make sure they’re up to the task before listing them in your documents. That way, no one is surprised with unexpected responsibility when you die. You also won’t have to redo your documents if you check to make sure the person wants the job before listing them.

How Can Boyum Law Firm help you?

Boyum Law can help you create estate planning documents that provide peace of mind. To contact Boyum Law, click here.

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