Here are several questions you should ask yourself:
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Don’t hesitate to ask your attorney questions such as:
Many executors decide, sometime during the process of winding up an estate, that they could use some legal advice from a lawyer who's familiar with local probate procedure . But if you're handling an estate that's straightforward and not too large, you may find that you can get by just fine without professional help.
Common questions about estate planningWhat makes up my estate? ... Who needs estate planning? ... What makes up a well-designed estate plan? ... If I have a living trust, do I still need a will? ... What is probate? ... Is probate a concern only for those with large estates? ... What is a trust? ... What Is a Revocable Living Trust?More items...
Estate planning involves determining how an individual's assets will be preserved, managed, and distributed after death. It also takes into account the management of an individual's properties and financial obligations in the event that they become incapacitated.
Typically, an executor must: Find the deceased person's assets and manage them until they are distributed to inheritors. This may involve deciding whether to sell real estate or securities owned by the deceased person. Decide whether or not probate court proceedings are needed.
5 Important Questions to Ask When Forming A Trust– November 29, 2021 by Rachel RoanWhy do you need a trust?Who will the trust benefit?Who will administrate the trust, now and later?Which assets will fund the trust?What are the long-term tax consequences?
A will is the foundation of a strong estate plan and it must include any requirements set by state law.You should include your estate assets, choose your beneficiaries, and nominate a personal representative.Your will does not need to include certain assets that pass outside of probate.More items...•
The 6 Steps to a Successful Estate PlanStep 1: Define your Estate Planning Goals. What do you want to happen? ... Step 2: Gather and Organize your Financial Data. Gather your documents. ... Step 3: Analyze & Discuss. ... Step 4: Develop your Estate Strategies. ... Step 5: Implement your Estate Plan. ... Step 6: Track & Monitor your Progress.
Some times beneficiaries want to see more detailed documents such as a Deceased's bank statement or pension documentation. Strictly speaking a beneficiary has no entitlement as of right to such documentation and it is your discretion as Executor whether or not to disclose it. The nature of the beneficiary's interest.
An executor must account to the residuary beneficiaries named in the Will (and sometimes to others) for all the assets of the estate, including all receipts and disbursements occurring over the course of administration.
Yes, an Executor has the authority to withhold paying an inheritance to a Beneficiary of a Trust or an Heir or Legatee, with valid reason.
How can a beneficiary claim money from a bare/absolute trust? If a beneficiary of a bare trust is over the age of 18 years then they can simply ask the trustees to pay the money out to them that they are entitled to. As long as there is no other criteria to satisfy, the trustees should not refuse.
The trust itself must report income to the IRS and pay capital gains taxes on earnings. It must distribute income earned on trust assets to beneficiaries annually. If you receive assets from a simple trust, it is considered taxable income and you must report it as such and pay the appropriate taxes.
Grantor—If you are the grantor of an irrevocable grantor trust, then you will need to pay the taxes due on trust income from your own assets—rather than from assets held in the trust—and to plan accordingly for this expense.
Call Arizona Estate Attorney Dave Weed at (480)426-8359 to discuss your case today.
If you fail to open a probate estate, you could be liable for taxes and other claims. Even if you do not think a probate estate is necessary, it is important to discuss your options with an experienced estate attorney.
The days and weeks following the death of a loved one can seem like a blur. The grieving process is difficult enough, but there will also be a funeral to plan, relatives to notify and financial issues to handle . Meeting with an estate attorney as soon as possible can ease your burden and make a difficult time easier to bear.
The best way to protect the assets is to open the estate right away.
If you are unsure about the tax situation, you should contact the person who handled returns for the deceased. They should have copies of past tax returns, and they should be up to speed on any outstanding audits, tax debts or other issues. The days and weeks following the death of a loved one can seem like a blur.
There is a great deal of confusion about how debts are handled when an individual dies. Some people think that these debts simply disappear when the debtor dies, but that is not always the case. While some debts are forgiven on death, others follow the deceased and become part of the estate. The good news is that the family members ...
The death of a loved one is always hard, but the difficulty of handling the estate can make an already difficult situation that much worse. Dealing with the complexities of the estate, closing the financial affairs of a deceased loved one and handling the taxes due can really put a strain on your emotions.
Regardless of the task at hand, finding an experienced lawyer usually makes the process run more smoothly. A seasoned estate planning lawyer will have experience handling all different types of challenges and understand how to help you craft a plan that meets your specific needs.
Make sure to ask how much of a lawyer’s focus is in estate planning, whether they keep up with the latest changes in estate and tax law, what types of estates have they handled, and whether they help with probate and estate administration.
Estate planning involves so much more than simply drafting a will. Powers of attorney are critical documents that can protect your interests while you are still alive, and trusts and life insurance are often important tools for optimizing your heirs’ inheritance.
An annual or semi-annual review of your estate plan is a must. Find out if a lawyer will do these reviews with you and ask for a rough estimate of how much the fee for review will be. It is also important to remember to update your estate plan after important life events such as marriage, divorce or the birth of a child.
Although most attorneys strive to make themselves available to their clients, emergencies happen. Knowing who to talk to if your lawyer is not available when an urgent matter arises can help you avoid stress and make things easier for everyone involved.
If you are a business owner, having an attorney who understands business succession planning or collaborates with succession planning lawyers can help to ensure all your bases are covered in the event of your incapacitation or death.
Depending on the complexity of your estate, an attorney may charge a flat fee instead of an hourly rate. Some do both, charging a flat fee for basics like powers of attorney and an hourly rate for more extensive tasks such as establishing a trust.
Decades ago, an attorney might commonly handle many types of legal issues. You may imagine the type of small town attorney you’ve seen in television shows. Attorneys with a general practice still exist, but they’re less common.
Someone right out of law school will have the skills to understand the statutes and rules that regulate estates. They can probably create a by-the-book estate plan, and they’ll charge a low rate to do it.
An estate plan is more than a will or even a trust. An estate plan should be a comprehensive blueprint carefully designed to do more than say who gets what. An estate plan should:
Each day without an estate plan is another day you risk leaving your assets and your loved ones unprotected. It’s an unpleasant thought, but we don’t know what could happen tomorrow.
More established lawyers often work with junior attorneys or paralegals. They may help draft documents or communicate with clients on basic issues.
If an attorney doesn’t specialize in estate planning, they’re probably not going to be as good at it as a lawyer that does. An estate planning specialist knows all of the current laws and regulations and knows to carefully word your documents.
Finding the most experienced attorney possible should be your main priority. Experienced estate planning attorneys have faced most of the challenges that can arise from estate planning, so they know what issues to look out for when drafting your documents.
Some estate planning attorneys draw up documents while others also execute the estate plan and trusts. It will be more efficient and affordable to work with a lawyer that draws up the documents and executes the plan to ensure all of the assets are correctly transferred into the trust.
Some estate planning attorneys will conduct regular reviews of your affairs. This can be beneficial because it will allow them to note where you should make any changes based on your current situation. Many people who experience a life change may not remember to update their estate plans, but they must.
Your estate plan may have multiple wills and trusts. Your estate planning attorney should be knowledgeable about wills, trusts, insurance, and taxes so you can understand the nuances of estate planning. Your lawyer should also be able to help you determine which tool is best for you.
Lawyers typically charge flat fees or charge by the hour, but some do both. No matter how an attorney charges, it’s important you know how their fees are determined so you can make the right financial choice.
In many cases, there is no rush to draft your estate plan. However, you should plan to address certain aspects of your plan with other professionals, including accountants and money managers. A lawyer’s expertise may overlap with your accountant, but they are not investment advisors.
So it’s important to periodically review your estate plan to ensure it is up to date. Some estate planning attorneys will offer for a small additional fee to semi-annually or annually review your estate.
All things being equal, working with an attorney who focuses exclusively on estate planning can be beneficial. They’re more likely to have seen a broader range of estate planning circumstances and can strategically assess your particular needs. But we don’t recommend discounting lawyers with a broader practice.
Putting in an estate plan is typically a one-time exercise, so you want to ensure at the outset that your plan covers the broader picture of your financial and personal life. From there, periodic reviews to make updates are typically sufficient.
Some estate planning attorneys will offer for a small additional fee to semi-annually or annually review your estate. This is a great option, and you should consider using an attorney that offers this. It may seem unnecessary at first blush, but think of it as annual insurance for your estate. At the right price, this additional service is well ...
Your attorney should send you your estate planning documents to review before finalizing them for signing and execution. Some actions can be irrevocable (see “irrevocable trust”), and you want to make sure that all of your wishes are accurately reflected in your documents before singing them.
An experienced attorney should be able to tell you which nuances of your case may cause delays and how to plan for them. Knowing this information in advance can help you obtain any necessary paperwork in advance, saving time. 6.
Some attorneys know immigration very well, others are proficient with criminal law, yet others primarily focus on real estate closings. When hiring a probate attorney, ask them (or look at their website) about other areas of law they practice.
If a will exists, then the original will and death certificate also need to be filed in court.
The role of a probate attorney includes, but is not limited to, settling disputes, the sale of the estate property, and distributing the assets of the deceased among the beneficiaries. So, you’ve made the decision to hire a probate attorney, but have you considered the necessary questions to ask?
The probate process can vary in length of time, but generally, completion can take a few months to a year (or more). The main determining factors on this duration includes the number and type of assets and the state’s legal requirements.
The term probate refers to various steps such as the verification process, the court where the issue is handled, and the distribution of the deceased’s assets.