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Important-Estate-Planning-Information-for-Unmarried-Partners

Important Estate Planning Information for Unmarried Partners

While estate planning is one of those things that many think is reserved for those who are entering their golden years, this just isn’t true. In fact, holding on to this belief can have serious consequences for your loved ones if you pass on unexpectedly. One situation in which estate planning is vitally important, no matter what your age, is if you have a life partner to whom you are not legally married.

Life Partnerships

Life partnerships are those in which two people have made an informal agreement to remain with each other for life, even though there is no legal documentation. For the purposes of estate planning, neither partner has any rights over the other’s property or end of life decisions unless there is a registered domestic partnership or civil union depending on the state in which you live. If you are in a life partnership at the time of your death, and you have not made a will, your surviving partner will not be legally entitled to anything you owned or that was considered your property. Instead, everything will go to your living relatives. In cases of medical incapacitation, the same rule applies – your partner will not be able to speak or make decisions on your behalf.

Make a Will

There are many who don’t consider writing a will because they don’t want to consider their future death. If you are in a domestic partnership, and you want to leave your property to your significant other, you must create a will – regardless of your age. The unfortunate truth is that accidents happen, and you have to protect those you love. If you own property that you want to make sure goes to your partner, you need to take the time to consider estate planning.

Children

If you have any children at the time of your death, their fate will be left to the courts if you don’t have a will. By appointing guardianship, you will make sure they can stay with your partner. There are extenuating circumstances in which your appointment may be overruled by the courts, but this generally only occurs in situations where your partner or appointed guardian is deemed unfit to raise your children.

Titled Documents and Beneficiaries

If you own a home or car, the best way to make sure they go to your partner is by purchasing them in both of your names. However, you can also will these titled items in your will if there is some reason that you don’t want both names on the document. You will also want to make sure any retirement investments or bank accounts are included in your will, and that you have filed a beneficiary designation so you can ensure they go to your partner or whomever else you choose.

By taking the proper steps to estate planning now, you will be able to make sure your domestic partner receives the assets you intended for them to have upon your death. If you have any questions, make sure to contact an estate planning attorney in your area.

dying without a will

Implications of Dying Without a Will

Each state has different laws that govern what happens if a person dies “intestate” or without a will. Dying without a will gives the state power over your assets and the distribution of said assets. Normally, the distribution of the assets is given to the spouse and children of the deceased or to another family member. The state’s distribution is based upon the estimation of how most people would divide their wealth in the event of death.

The problem with letting the government rule where your assets go after you die is that, most likely, they will not follow what would have been your wishes. Perhaps you’d like to leave a piece of property to your sibling. The state will probably not do this. If you’d like full control of where your assets will go when you pass away, estate planning is essential.

What Is a Will and Why Should You Care?

A will is a document that states how a person’s assets and personal properties are to be distributed in the event that the person dies. In a will, you can choose exactly who gets what. However, keep in mind there’s a circumstance called forced heirship laws, which protect the rights of spouses and sometimes children from being disinherited. In some states, there are spousal rights of election laws, which allow a living spouse to receive a portion of the interest in your estate, no matter what your will says.

Wills range from very simple to very complex. Tax objectives and family goals are taken into consideration when writing a will. The simplest forms of wills spell out the distribution of assets. Other wills may also specify who would care for a child in case the parent dies, which minimizes the state’s involvement in your child’s care. A will can also appoint a trustee to manage your property funding, as well as an executor of your estate.

The most important benefit of having a will is that you can distribute assets to people that the state would not give anything to if you die without a will. For example, in a will you can benefit godchildren, stepchildren, a friend, or donate to charity.

How to Get a Will

A qualified lawyer can help you create your will and will make sure it conforms to the laws of your state. Once the will is formulated, it must be signed in front of a witness. In some states, it’s required that the will be notarized.

Wills can be amended. This amendment is called a codicil. A codicil is signed with the same formalities as the original will. A qualified attorney must also handle codicils to make sure they have legal standing in order to avoid any issues in the future. One final note on wills: If you own joint property with someone else as joint tenants with right of survivorship, the property will be automatically passed directly to the joint owner upon your death and is not going to be part of your will.

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Filing for Bankruptcy in the U.S.

Individuals or entities looking to file for bankruptcy should look for a qualified attorney to help with the case. Although corporations and partnerships are required by law to hire an attorney in order to file for bankruptcy, this is not a requirement for individuals. However, handling the case alone can be a very bad decision in this very delicate process.

Bankruptcy cases are inherently complex, and many laws apply to bankruptcies. One misstep can wreak havoc on your process and cause you to lose your rights as a debtor. The consequences of incorrectly filing for bankruptcy affect the debtor for many, many years. The implications are not only financial, but also legal. Hiring a qualified attorney is the first step in successfully filing for bankruptcy.

Steps to File for Bankruptcy

In the United States, in order to file for bankruptcy, debtors are required to list all their assets and liabilities – in other words, properties and debt -- in their bankruptcy schedules. No debt or asset should be left out. If a debt is left out of the schedule, it may not be settled, causing the debtor to continue to be responsible for that debt. Also, if a judge determines that the debtor is fraudulently leaving information out of the schedules, that judge may reject the discharge of all the debtor’s debts. In some cases, judges have found that debtors have submitted bankruptcy schedules but have hid assets, falsified records, or told lies. This fraud is a crime under U.S. law and severely punishable.

Individuals looking to file for bankruptcy in the United States should become aware of the laws in the United States Bankruptcy code, any local rules of the court that is handling the case, and also the Federal Rules of Bankruptcy Procedure. Most of this information is easily found online by running a simple search.

Requirement of Credit Counseling

It is a general requirement for individuals filing for bankruptcy to get credit counseling from an approved specialist. This counseling needs to start within 180 days before the bankruptcy case is filed. The credit counseling specialist will give the debtor a certificate of credit counseling that must be submitted along with a statement of compliance. Debtors who do not obtain credit counseling and follow these steps risk their case being dismissed.

Bankruptcy Legal Counseling

Anyone looking to file for bankruptcy should get legal services from a professional attorney specializing in bankruptcy law in the United States. Some people may even be able to get free legal counseling if they can prove that they cannot afford an attorney. Those who believe they cannot afford an attorney should contact their local bar association for more information.

Foreclosure and Bankruptcy

If a homeowner is behind on his or her mortgage payments, there may be options to help with this situation before considering bankruptcy. There are many fraudulent schemes out there promising help with foreclosure, so homeowners should search for help with caution. The first point of contact should be the homeowner’s mortgage company in order to find out which programs they may have available.

Facts-About-Estate-Planning-in-the-United-States

Facts About Estate Planning in the United States

Nearly all people have an estate, although most people think they don’t. An estate comprises everything a person owns, including vehicles, real estate, checking accounts, savings accounts, furniture, investments, life insurance policies, etc. Some estates are larger than others, but the fact of the matter is, you cannot take your estate with you when you pass away.

In order to make sure your desires for your belongings are considered once you die, you need to hire an estate planning professional to set up your will and other documents. These will lay out instructions on how you want your estate handled. You also want to pay the least amount of taxes and legal fees possible in the process.

Planning Ahead

Estate planning is precisely the plan you make ahead of time, stating who will get your belongings after you pass away. It also entails instructions about who would care for you if you have a severe medical condition like a coma and cannot make decisions for yourself.

Estate plans also include information on who will be the legal guardians of any minor children you leave behind, who will provide for your spouse and kids, who your business will be transferred to, and more. Estate plans can be updated as life situations change. Everyone should consider estate planning.

Most people think about estate planning after becoming a certain age, for example, when reaching retirement age. However, it’s impossible to know when someone will die. An accident or illness can happen to anybody, at any age. Thus, there is a need to plan for the uncertain future as soon as possible.

A huge percentage of the population does not plan ahead, because they do not believe they have enough assets to make it worth it. However, estate planning is for people of all social classes. Oftentimes, the ones who have small estates should consider estate planning more than the wealthy.

Consequences of Not Planning Ahead

Individuals who are too busy or careless to plan ahead are probably not aware that the state would take over their assets in the event of their passing if there is no will in place. If you become disabled and your name is on the title of your assets, a court appointee is the only person allowed to sign for you. In that case, the court will take full control of all your assets, not your family. Assets in this case are very hard to recover, and the process can be hugely time consuming.

In the event of the death of someone without an estate plan, probate laws decide how the assets will be distributed. Oftentimes, this means the spouses and children of the deceased all receive a share of the wealth. If there are minor kids, then inheritances will be controlled by the state as well.

The biggest benefit of estate planning is peace of mind. All people--married, widowed, divorced, or single--should consider estate planning to ensure the wealth they leave behind is distributed according to their wishes.

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Estate Planning: Power of Attorney

Assigning power of attorney is a major part of estate planning, and one that you should always make sure you have in place early on. While most people never plan on having someone else make decisions for them, there is no way of knowing what may happen in the future. Between accidents, serious illness, and other factors, it is in your and your family’s best interest to assign power of attorney ahead of time.

What is a Power of Attorney?

A power of attorney is someone that you name to make certain decisions for you if you become incapacitated or unable to properly take care of important decisions. Laws concerning power of attorney assignment vary from one state to another, so it is important that you check with a lawyer or government agency to ensure you follow the proper steps. There are also state-specific regulations that govern who may or may not be given power of attorney.

Decisions a Power of Attorney Can Make

It is up to you to decide what decisions your power of attorney will be able to handle on your behalf. You also have the right to assign different people to specific areas. The most common decisions that are assigned are:

• Decisions relating to your finances.
• Medical decisions, including whether to start, stop, or withhold certain treatments and services. Many choose a separate person or persons to help with making these choices, or you can assign one power of attorney for all decisions.
• Making gifts on your behalf.
• Recommending a guardian for your children.

Who Can Be Given Power of Attorney?

You can assign power of attorney, or attorney-in-fact, to nearly anyone you choose, but it is often reserved for spouses, adult children, and other trusted individuals. Whomever you choose should be someone you trust to act responsibly on your behalf, and make decisions he or she honestly believes you would make for yourself, if possible. You can choose to name different individuals for different aspects, such as one for finances and another for health care decisions. The choice is up to you, but you should also speak to the person in question to make sure he or she is comfortable handling the responsibility.

What Should be Included in the Document?

When preparing a power of attorney, you should make very clear what the person you are assigning will be able to control or make decisions about on your behalf. You should also clearly set limits for spending and other financial decisions, as well as requiring documentation of all activities performed for you. You will also need to consider whether others will be unhappy with your decision. If you believe this is a possibility, you can have witnesses on hand, or request that an attorney or physician write a statement stating that you were of sound mind when the decision was made.

A power of attorney is an important part of estate planning. You should always discuss your intentions with an estate planning lawyer to make sure you are following the laws and requirements in your state.

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Estate Planning for Blended Families and Single Individuals

The dynamics of families have changed over the years and become increasingly varied. This can make planning for the future a difficult prospect, with many intricacies and factors that must be considered to make sure that all your wishes are honored and your estate is handled properly.

Estate Planning for Blended Families

Blended families are very common nowadays, with 42% of adults having some type of step-relationship in the United States. Blended families are composed of divorced, widowed, or remarried individuals and their family members. Estate planning for blended families can be complicated and requires special attention.

It is easy to make mistakes when doing estate planning for a blended family, thus the need to hire the services of a qualified estate planning attorney to make sure all documents are correct. It is also possible that spouses and former spouses might disagree on how the wealth should be distributed, who will care for children in case a parent dies, which assets would be passed along to whom, etc.

Some of the most important questions to ask before estate planning are:

  • What would happen when you pass away?
  • Who would make medical and other decisions for you if you weren’t able to?
  • How will your children be provided for?
  • Who will be the guardian of the children in case you die?
  • How will your spouse be provided for?
  • Will you distribute any of your wealth to former spouses?
  • If your spouse and yourself cannot agree, will you need two separate attorneys?
  • Do you have a prenuptial agreement to take into consideration in your planning?

Once you come up with a decision of what you would like to happen in the event of your death or major disability, the next step is to contact a lawyer to structure your plan and put everything on paper. While there are many free estate-planning services online, they are not prepared to handle blended family situations, thus it’s important to seek proper counsel in this regard.

Properly setup estate plans can be expensive. However, they can save you a ton on money down the road if you compare costs versus benefits. Not to mention, you will get peace of mind to know that your wishes will be followed when you pass away.

Estate Planning for Single Individuals

There are more single people today than ever before. According to the United States census, nearly 50% of all Americans live singly, whether they have been divorced, widowed, or never been married before.

A lot of singles do not realize the importance of estate planning, because they do not have any dependents. However, single people also face the same issues married people do in regards to the planning of their wealth distribution once they pass away. Singles also face some special situations, such as to whom their wealth will be distributed if they have no living relatives, for example. Also, in case of a coma or a health situation where the single person is unable to make decisions for himself, who will make those decisions? Questions like these need to be considered, and careful thought needs to be given to estate planning, even for singles.

bankruptcy-laws

Bankruptcy Law in the United States

In the United States, bankruptcy laws allow for the relief of certain debts an individual, corporation, or partnership might have and cannot pay. Bankruptcy also sets up the repayment terms of debts that cannot be discharged. Finally, it also allows for the repayment of secure debts, such as a home or a vehicle that serve as collateral for the debt.

The United States Code contains the federal statutory bankruptcy law in Title 11. The Bankruptcy Code is the code that establishes laws related to bankruptcy in the United States. Bankruptcy is a federal matter that cannot be regulated at the state level. However, states are able to pass laws about other pieces of the relationship between the debtor and the creditor.

The United States Bankruptcy Courts, part of the District Courts of the United States, are responsible for supervising all bankruptcies in the country. Most of the administration and supervision of bankruptcies is handled by the United States Trustees. Lastly, bankruptcy courts’ procedures are run by the Bankruptcy Rules. The Supreme Court, under the direction of Congress, declared these rules.

Types of Bankruptcies in the United States

There are 5 bankruptcy chapters in the U.S. These are:

  • Chapter 7: This allows the annulment of credit cards, personal loans, and other types of unsecured debts. Oftentimes, secured debts are not altered in any way, which means the individual or entity may remain the owner of the collateral as long as payments are being made on the debt. Chapter 7 bankruptcy is for people with mostly business debts and for corporations. Individuals cannot file a Chapter 7 bankruptcy unless they meet the income requirements for this type of bankruptcy.
  • Chapter 9: This bankruptcy chapter has to do with the restructuring of local establishments and municipalities such as schools and hospitals owned by the county. Chapter 9 is not available to individuals or corporations.
  • Chapter 11: This chapter is the most complete one in the Bankruptcy code, allowing for many different options when it comes to reorganizing debt for individuals and other entities. For example, Chapter 11 allows the entity to repay some debts, to annul others, and then reorganize the rest. Individuals must be aware that although Chapter 11 is a viable bankruptcy option, it does come with a high filing fees and administrative costs. Thus, most people choose either a Chapter 7 or a Chapter 13 bankruptcy instead.
  • Chapter 12: This chapter is only for family farmers. It has many of the characteristics and features of Chapter 13, and it allows for the reorganization of these family farmers’ debts.
  • Chapter 13: This chapter allows for the annulment of certain debts, while at the same time allowing for the repayment of other debts, all within 3-5 years. Chapter 13 permits the reduction in principal of some secured debt such as a mortgage. Only individuals may file Chapter 13 bankruptcies, as long as the income and debt qualifications are there and the process is completed successfully.
estate-planning

Common Estate Planning Mistakes and How to Avoid Them

No matter how old or young you are, and no matter how much wealth you have, estate planning is something that should be on your radar. Obviously, your circumstances will determine to what extent you need to plan for your demise, but the unexpected can always happen, and it’s good to have a solid plan for your assets in place when it does. In our opinion, the biggest estate planning mistake that you can make is not having an estate plan at all. But, here are a few more:

Mistake #1: Not Taking Advantage of a Life Insurance Trust

Life insurance trusts are something that people all too often overlook, and it’s to the financial detriment of their life insurance policies’ beneficiaries. If not protected by a trust, a life insurance policy can become subject to onerous estate taxes once it is paid out. Make sure that you consult a qualified estate planning attorney, who can help you set up a life insurance trust that will ensure your life insurance policy is able to pay out as much as possible to the people who will need it.

Mistake #2: Not Keeping Your Will Current

At least every year or so, you should take the time to review the last will and testament you have in place. Things change all the time, and you want your will to reflect any changes that have taken place in your family. This can include adding or subtracting beneficiaries, as well as adjusting how assets are divvied out, based upon changes to your own financial situation. The last thing you should want for your beneficiaries is to leave behind an outdated will that has the potential to create a fractious situation following your demise.

Mistake #3: Not Having a Living Will

Anything can and will happen in this life, and sometimes our exit from the world is not what we would have planned. If you find yourself terminally injured and in need of life-sustaining care, then having a living will is crucial. This legal document defines what kinds of life-sustaining treatment you’re open to receiving and when it is appropriate to pull the plug. Also, this living will should grant someone with healthcare power of attorney or general power of attorney. This is necessary in the event that you are incapacitated and need someone to make important medical decisions for you. If you have a designated general power of attorney, they can also make important financial, business and personal decisions.

Mistake #4: Picking a Poor Executor

Most often, people will name an immediate relative as the executor of their estate. While it seems an obvious decision to make, it requires some thought. Can you confidently say that the person you’ve chosen will act ethically and expeditiously on your behalf? If not, then it could make sense to select an executor for your estate who is not directly affected by it. In some cases, individuals elect to have an estate planning lawyer act as the executor of their estates, knowing that these individuals will be able to objectively handle any confusion or disagreements surrounding the will’s terms.

The Biggest Mistake

Of all the mistakes you can possibly make, the biggest one is not retaining the services of an experienced estate planning attorney. So, if you’re serious about securing your family’s wealth, make sure that you get in touch with one of the qualified estate planning attorneys in our office today!

power-of-attorney

Estate Planning: What You Need to Know

Estate planning is the process of setting up the distribution of a person’s assets. It involves all the documents that rule a person’s assets, including, but not limited to, trusts and wills. Estate plans also lay out the management, distribution, and protection of such assets. In other words, when a person passes away, the estate plan ensures that a person’s wishes are implemented.

Who Needs Estate Planning?

The future is unknown for everyone. While a person may be living one minute, there’s no guarantee that he or she will be living the next minute. This is why it’s so important to plan for the future and to protect your loved ones financially, making sure your assets go to the right hands, per your wishes. Sadly, most people do not think of death as a possibility in the near future and thus do not plan ahead.

Others might not even be aware of their assets and do not see the need to get an estate plan. Almost all people have some kind of estate: a house, a business, a life insurance policy, an employee benefits package, etc. Estate plans are not only for asset distribution but also for stating what would happen if you become disabled.

Benefits of an Estate Plan

Estate plans are hugely important and everyone should have one. As stated above, an estate plan will clearly state how your assets will be managed in the event of your death, as well as what type of healthcare you’ll want should you become incapacitated. In an estate plan, you can be as specific as you want to be about whom you’d like to care for you and who will be the beneficiaries of the wealth you leave behind.

Distribution of Property Using a Will

A will is a document that lays out your property distribution plan upon your death. It also includes the transfer of such properties from your name to the name of the person or institution of your choice. A will comes into effect only upon someone’s death. As soon as someone with a will passes away, the will is admitted to the probate court system. There’s also what’s called a living will, which is a will that contains instructions about your healthcare wishes in the event of becoming disabled.

Durable Power of Attorney for Healthcare and Property

This document assigns the person of your choice to decide your healthcare treatment in the event that you are unable to approve the care yourself. Another form of durable power of attorney is the Durable Power of Attorney for Property, in which the person you have appointed gets to make financial decisions for you in the event of permanent disability.

Living Trusts

Unlike a living will, a living trust is revocable, which means the person with the living trust remains in control of his wealth. Living trusts are used to assign a trustee to follow the instructions within the trust, but the person with the living trust can change the document at any time.

It’s never too late to start your estate planning. Contact a qualified estate planning attorney to set up your estate plan and protect your assets immediately.

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Important Facts About Living Wills and Power of Attorney in the State of Nevada

In the State of Nevada, it is relatively easy to establish a living will and power of attorney, especially as compared to other states. The forms that any individual needs in order to establish these legal documents are readily available from the state. While this means that it’s possible for an individual to handle the production of these legal agreements for themselves, it is always advisable that this be done under the supervision of a lawyer. This is especially true if the individual in question has highly specific requests for their living will, or if that person has a high net worth.

In order to understand how living wills and power of attorney work within the state of Nevada, we thought it would be useful to share some facts about them.

Who Can Have Healthcare Power of Attorney?

While you might think that you can grant healthcare power of attorney to anyone, this is not always the case. Most notably, healthcare providers and those who are employed at or operate a health care facility cannot be granted healthcare power of attorney. The only exception to this is when an individual’s spouse, next of kin, or guardian fills one of these roles.

How Can I Establish a Living Will?

Provided your needs are not overly complex, it’s possible to draft a living will yourself in the state of Nevada. However, this is usually not advised, and it is suggested that both the living will and the document granting power of attorney be drafted by or under the supervision of a qualified attorney. The reason for this is simple. If your living will is unclear in certain parts or neglects to address certain circumstances, then whoever you’ve given power of attorney to will be in the unenviable position of guessing what your wishes might have been. Moreover, there may be other issues that need to be addressed alongside your medical care. For this reason, strongly consider drafting these documents with a lawyer rather than going it alone.

The State Attorney General’s Living Will Lockbox

Once you’ve established a living will, it’s important that people be aware of it. If they’re not, then there is no way for anyone to know what your wishes would be in the event that you need life-sustaining care. The state of Nevada provides a way for individuals to address this concern, as the State Attorney General provides a “Living Will Lockbox” through the Internet. Here, an individual can upload their living will, where it will remain until it’s needed.

In addition to this, and depending upon your circumstance, you may wish to carry a living will card in your wallet. This card would direct people to your living will, so that they can know your wishes with respect to life-sustaining and end-of-life care. When used in conjunction with the State Attorney General’s lockbox, you will be absolutely assured that the terms of your living will are followed to the letter.

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