MISTAKEN IDEAS REGARDING ESTATE PLANNING
There is a great deal of confusion and mythology regarding estate planning. It’s a subject that healthy, busy people really don’t want to think about. Understandably, the thought of suddenly becoming unable to function (due to disease or a catastrophic illness) and needing to depend upon someone else, along with having to come to grips with the inevitability of death, can really be distressing. However, by taking methodical, concerted action by creating a well-advised estate plan, one can at least confront these unpleasant realities in a rational way. The following are some examples of erroneous information some people have regarding estate planning: 1. “I don’t have a will and I don’t really own a lot of property, so what’s the problem if I die without one?” You DO have a problem. Without having a witnessed will that is also valid within your state, if you die as a single custodial parent, your surviving minor children run the chance of being taken care of by blood relatives of the probate court’s choosing—not yours. In addition, any remaining financial assets in your name will be evenly distributed to your immediate family members. Without a clear-cut estate plan, your surviving spouse may not have enough of your money to supplement his/her retirement income. 2. “If I become incapacitated, my executor will take care of everything.” WRONG . Your executor is someone you have designated in your will to carry out your wishes after you pass away. If you’re still alive, and find yourself in failing health, your executor can’t help you. With a smart estate plan, you can...WHY “DO IT YOURSELF/FILL IN THE BLANK” WILLS & TRUSTS OFTEN RESULT IN DISASTER
WHY “DO IT YOURSELF/FILL IN THE BLANK” WILLS & TRUSTS OFTEN RESULT IN DISASTER Retaining the services and expertise of an attorney who can assist you in preparing a smart estate plan requires a serious investment of time and money. The benefits (however) far outweigh whatever the upfront costs may be. Having the assurance and peace of mind that you and your family will be legally and financially protected in taking on the challenges of the future is inestimable. However, these guarantees vanish immediately when one chooses to forgo retaining experienced legal advice and opting for the “do-it-yourself” approach to estate planning. Many unpleasant scenarios and real potential dangers await those who want to save a few dollars in the short-term; and whose loved ones will probably end up having to pay tens of thousands of dollars correcting their mistakes. Everyone is unique. No two families are the same. The slick advertising that online legal services utilize (especially with using formercelebrity attorneys to pitch their offerings) cannot deny this simple fact: virtual legal document preparers that promise cheap, fill in the blank options for estate planning will never replace the professional, confidential relationship between a lawyer and his/her client. When circumstances require urgent technical advice and counsel, these do-it-yourself websites are of no use to a distraught client. Their staff is prohibited from rendering any kind of practical legal guidance to consumers. If you are making a terrible mistake in your estate planning, they can’t prevent you from doing so (the unauthorized practice of law is a criminal offense in all 50 states). In addition, these online services...What is the gross value of the estate?
The gross value of the estate is the fair market value of the estate before the debts are paid. For example, a $200,00 home is left to a child by a parent in a will. As the estate goes through the probate process, there will be fees of approximately $8,000 in Statutory and Attorney Fees. These fees are due, even if there’s a mortgage against the home for $180,000, because the fee is based on the full fair market value of the estate before paying off any debts. In addition to court mandated fees, there are other expenses necessary to prepare everything for probate. These may include, but are not limited to: Bondsman fees Asset appraisal fees Court filing fees Publication fees Extraordinary fees The best and safest way to avoid probate is through estate planning and using a Revocable Living...Estate Planning Lessons We Can Learn From Elvis’ Mistakes
Elvis’ estate planning failures certainly adversely affected the life of his daughter, Lisa Marie, and have carried over into issues with her estate.