Some estate planning surprises are good, some are scary, and some are maddening.  But, all of these types of surprises occur.  If you have questions, be sure to consult with a qualified estate planning attorney.

• If you don’t appoint a guardian for your minor children in your will, the court will decide who raises your children and manages your money on their behalf after you die.  What if the court picks your angry sister or your alcoholic sister-in-law?

• If you don’t have a stand-by guardian authorization and/or first responders nominated, your children may be taken into foster care if you are in a car accident or otherwise unable to care for them.

• Any assets in your individual name guarantee probate regardless of whether you have a will or not.

• Even 18 year olds need at least a HIPPA Authorization form if not their own estate plan.

• You need to update your estate plan every three to five years.

• You also need to update your estate plan if you move to a new state, get married, get divorced, start a new business, or have a new child.

• You can avoid a conservatorship of the estate by having up-to-date powers of attorney for finances. A trust is also a critical component to avoid conservatorship.

• You can totally avoid probate fees.

• You can avoid or minimize the federal estate tax if you do the proper planning.  Those who don’t plan can pay tax unnecessarily.

• You can avoid court interference (saving time, hassle, and money, and staying in control) by having a comprehensive, well executed up-to-date estate plan in place.

• You can superfund a 529 Plan for children, grandchildren, a spouse, or yourself.

• You need umbrella liability insurance.

• Your spouse can’t legally sign your name.  You need powers of attorney to legally sign each other’s name.

• You can give away more than $13,000 a year and not pay gift tax.

If you have questions or concerns, consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

Everyone, age 18 or older, needs estate planning.

Why should I invest in estate planning?

• If you don’t do your own planning, the state statutes as interpreted by the court will do it for you.  Anytime the court is involved, it will cost you money, a great deal of time and loss of control.

• If your family is dependent upon your income for their survival, your estate planning attorney will help you to consider disability and life insurance to continue that income stream if anything should happen to you.  If you are injured or sick and can’t work, or if you die, your family will be assisted by taking advantage of these products.

• Car, homeowners, and umbrella liability insurances should also be evaluated.  If you get in a horrific car crash, all your assets may be seized by creditors without the proper amount and type of insurance.

• You can plan to avoid probate which saves money, time, stress, and hassle.  It also keeps your family and business affairs private.

• If you want to avoid paying for a court conservatorship, you need an up-to-date power of attorney for finances (i.e. general durable power of attorney) and a Living Trust.

If you have questions about how estate planning can actually save you money, consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

As we discussed in the first two parts of this article, these estate planning mistakes are all too common.  Don’t let your estate plan fail because of these dreaded mistakes.

Grave Mistake:  Not paying for quality legal work

Some clients mistakenly think that all the documents are forms that are just spit out of the computer so they should just pay copying fees.  This is an exaggeration but know that no client gets a form document.  They are all customized to meet your needs by a highly educated and highly trained attorney who is conveying great value to you.

Standard provisions are included to protect you and your family as required by law and prudent practice.

Trying to save money on legal fees is short sighted.  Estate planning is unique to the individual. By not taking advantage of free consultations offered by qualified attorneys you are missing the opportunity to make sure that your estate plan addresses your specific needs. Trying to save a few dollars when some of life’s most important decisions are at stake is a risky strategy.

And, how much is it worth to ensure your plan works?  That you are protected if you become disabled?  That your daughter’s inheritance isn’t taken by her abusive alcoholic husband?  That your pets are loved and cared for, not euthanized?  That your spouse isn’t prey for predators who found her financial information from probate filings?

Grave Mistake:  Refusing to make important decisions

We know that it’s not easy to think and talk about death, disability and  inheritances.  In fact, naming a guardian for minor children is likely the most difficult decision that must be made during the estate planning process.

But, don’t let these decisions stop you.  Make the best decisions you can now, knowing that you can change them later so long as you are alive and well.

Don’t fail to make decisions such as naming successor trustees and successor guardians because you may not have the opportunity to make updates later.  If you are incapacitated, you cannot change your estate plan.

Be sure to read parts 1 and 2 of this 3 part article:  Don’t Make These Grave Estate Planning Mistakes.  And, if you have any questions or concerns, consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

As we discussed in the first part of this article, these estate planning mistakes are all too common.  Don’t let your estate plan fail because of these dreaded mistakes.

Grave Mistake:  Not following through

If you tell your estate planning attorney that you are going to change the beneficiary of your life insurance to your trust, you must do it.  If you say that you’re going to write a memorandum, describing a special gift for each grandchild, do it.

You’re part of the team and you must take responsibility for your own portion of the planning. A qualified Estate Planning Attorney will make it very clear to you the assets which are your responsibility to title in the name of the trust versus the assets which your attorney has agreed to change title on in order to place the asset in the trust.

In addition, is it imperative that you update your estate plan every three to five years or upon the occurrence of a significant life event such as marriage, divorce, new child, and a move to a new state.

Grave Mistake:  Getting advice from the wrong people

While friends and family members mean well, they are often the source of wrong information.  Your estate planning attorney should be your source for all things estate planning.

And, remember that while other professionals have much to contribute, only attorneys can draft legal documents.  Do not accept legal documents from anyone other than directly from an attorney.

Grave Mistake:  Not reading your documents

Today, most estate planning documents are written in plain English.  Occasionally, prudent legal practice requires the use of certain legal terms because of the applicable statutes, regulations, or case law.

You can look any confusing terms up online or in a dictionary or call your estate planning attorney with your questions.

You should read your documents so that you better understand them and to make sure that your estate planning attorney has carried out your wishes.

Be sure to read parts 1 and 3 of this 3 part article:  Don’t Make These Grave Estate Planning Mistakes.  And, if you have any questions or concerns, consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

These estate planning mistakes are all too common.  You likely want an estate plan that works, meaning that it does what you want it to do.  Don’t let your estate plan fail because of these dreaded mistakes.

Grave Mistake:   The evil of procrastination

If you need and estate plan or need to update your estate plan, call a qualified estate planning attorney the very minute you finish reading this blog article.  Get it on your calendar and follow through.

Don’t wait until you’re ready to hop a plane to Africa because you’re afraid that you’ll be eaten by a lion.  And, don’t wait until you’re knocking on death’s door or have been admitted to a nursing home.

You will have more options, a better plan, and pay lower legal fees if you plan ahead.

Grave Mistake:  Not disclosing all information

A client failed to disclose the full extent of his assets because he didn’t want to pay increased legal fees.  The estate planning attorney based his recommendations and documents upon the information disclosed.  The client died shortly thereafter and his estate owed $200,000 in federal estate taxes, needlessly.

Had this client disclosed all of his assets, his legal fees would possibly have been increased but he would have saved $200,000 in taxes.

Like a medical doctor needs to know all of your symptoms, your estate planning attorney needs to know all about your health, goals, family, and finances.  Disclose marriages, divorces, out of wedlock children, adopted children, health issues, alcohol and drug problems, and relationship struggles.  If in doubt, disclose the information.

Be sure to read parts 2 and 3 of this 3 part article:  Don’t Make These Grave Estate Planning Mistakes.  And, if you have any questions or concerns, consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

If you are setting up a new business or a professional practice, the Limited Liability Company (LLC) may be a good fit for you.  A Limited Liability Company is a simple business entity.  In a nutshell, the LLC has the operational flexibility and tax benefits of a partnership and the limited liability features of a Corporation.  LLCs are recognized in all the 50 states plus Washington D.C. and are used for millions of new businesses nationwide.

Often sole proprietors and small businesses choose the LLC for their business entity.  Depending on the complexity, LLC’s can be inexpensive to set up and to maintain and an LLC can protect members’ personal assets from business creditors and debts.  LLCs avoid double taxation because the profits and losses pass through the LLC onto the members’ personal tax returns.  LLCs are not a separate tax entity.

Consult with a qualified estate planning attorney if you are setting up a new small business or professional practice (or if your current business doesn’t have a protective structure.)  The attorney will help you select the appropriate type of entity, check for business name availability, and set up and implement the entity so you receive all the benefits that type of entitiy can provide.  To help protect your home and personal assets, set up your new business in a protected structure. An LLC is a unique entity that has many potential benefits.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

Sometimes people don’t realize that they need estate planning.  They often think that they are too young or too poor to need good planning.  Neither are ever true.

You need estate planning if you…

• Love someone
• Want to remain in control
• Don’t want to be hooked up to machines, artificially extending your life
• Want to protect yourself while alive if you become disabled and want to lessening the burden on your loved ones when you die
• Want to (or don’t want to) be an organ donor
• Have children
• Have grandchildren
• Want to provide for step-children or other special people in your life
• Are married
• Or divorced
• Are single
• Are age 18, or older
• Own a business
• Own real estate
• Want to decide who gets your assets after you die
• Want to prevent your no-good, greedy son-in-law from getting your money
• Want to avoid or minimize the federal taxes
• Want to ensure your children are not unintentionally disinherited
• Will need long term care someday
• Have lived in a community property state
• Have moved to a new state
• Haven’t updated your current estate plan in the last 5 years
• Own rental property
• Want to avoid probate
• Don’t want your family to be stressed making funeral arrangements
• Don’t want your family to have to go to court because have already made your own financial or medical decisions
• Are a young professional
• Are retired
• Want to take steps to protect your children’s inheritances from their divorcing spouses, bankruptcies, malpractice cases, business failures, car accidents, and other creditors
• Want to assist your children and grandchildren to go to college even when you are disabled or after you have died
• Want to help a charity such as your family foundation, your alma mater, an animal shelter, or the local community library after your death

You need estate planning if you fit in one or more of these categories.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

Smart estate planning includes divorce protection via a trust.  While we all hope that our children live the dream of “happily ever after,” fifty percent of them won’t.  If your child receives his or her inheritance outright, if comingled in a joint account, it can be taken in a divorce property distribution.  If your child receives his or her inheritance in a trust, your gift cannot be taken.  Hence, your child has divorce protection.

Picture it like this:  A trust is like a pirate’s treasure chest, and only the pirate, your child, has the golden key to get into the treasure chest.  You place your hard earned money into the treasure chest for your child.  If you give your child the inheritance outright, it is like throwing dollar bills up into the wind.

This also works for large lifetime gifts as well.  Perhaps, you’d like to gift during your lifetime to see your child enjoy your gift, save taxes, or to get as much settled before your passing as possible.  Give your gift in a trust.

While trusts cannot be used to avoid child support or alimony obligations, they do avoid distribution of property to people other than your child because your child is the only beneficiary of the trust.

Your child can be the trustee (the legal owner of the trust) and the beneficiary of the trust.  To increase asset protection, it is wise to have a co-trustee serving with your child.  Typically, CPAs, estate planning attorneys, and corporate fiduciaries (banks and trust companies) serve as professional trustees.

Trusts for your children are not typically expensive to maintain.  They do required their own tax returns and tax id number.  Some people are concerned because trusts have a compressed income tax bracket.  However, the tax follows the income so if the income comes out of the trust to your child, it is taxed to your child and not the trust.  In addition, if a professional fiduciary is acting as trustee there are some professional fees for trustee responsibility.

If you have any questions about using trusts for divorce protection, please consult with a qualified estate planning attorney.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

We’ve heard these words in our office:  “My dad died and his will didn’t work.  I want a trust.”

It is a common misconception that once you have a will, you’re covered.  While a will is extremely important and necessary for all adults, it’s not all encompassing.

In fact, in many cases, a will controls very little property.  For example, in the case of our client quoted above, her dad was remarried.  He owned all of his accounts in joint names with his second wife and had forgotten to change his beneficiary on his retirement accounts, insurance plans and annuity  from his first wife to his second wife.

So when, “Dad” died, his first wife inherited much of his estate even though his will instructed that all of his assets should go to our client and her sister.

Dad’s will did work as well as a will works, but it didn’t carry out his intent.  A will only controls assets owned solely in an individual’s name.  So, the girls only inherited their dad’s car and a few personal possessions that his wife allowed them to take.  They received no financial assets.  All the money went to either the first or the second wife.

Dad, like most people didn’t realize the importance of asset ownership.

Our client did do trust planning and she carefully funded all of her assets into her trust.  Because her assets are properly owned, if our client becomes incapacitated or dies, her trust will provide instruction and carry out her estate planning wishes.

Her children won’t be disinherited like she and her sister were.

In addition, our client has a will to appoint an executor, nominate guardians for her minor children. Also our client’s trust will protect her children’s inheritance by distributing it to them in trust with someone appointed to manage the children’s assets.

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.

New blog posts coming soon!

The Law Offices of H. Brooks Travis is a member of the American Academy of Estate Planning Attorneys.