The Law Office works with clients to answer two questions for each client in their individual circumstances:
• Who will inherit my assets when I die?
• What is the best way to leave these assets to my beneficiaries?
The goal is to devise an estate plan that is tailored to each individual's needs and meets their objectives.
Estate planning begins with the client providing the attorney with information about their family; about their financial assets -- from real estate and stocks to retirement plans and life insurance; and about any concerns unique to their situation, such as a desire to provide for a differently abled child. With this knowledge and an understanding of a client's objectives, the attorney can assist the client in knowledgeably answering the first question - who will inherit my assets when I die -- and the attorney can devise a comprehensive plan for the disposition of the client's assets, with an eye to tax consequences of various options. For example, if you want to leave half of your estate to your niece and half to your friend, in some states, like Maryland, it makes a difference from a tax perspective whether you leave your friend the proceeds of your life insurance policy or you leave them the money in your bank account. This is so, even if the insurance policy amount and the value of the bank account are of roughly equal value. The lawyer's job is to be aware of these complexities and devise a plan that maximizes the benefits to the client.
Estate planning tools include wills, of course, but also a variety of trusts. There are many different trusts. The one created in a will is called a testamentary trust. Another is a revocable living trust. The benefits of revocable living trusts are often overstated, but they do provide great benefit to individuals who own property in several different states or who are concerned with the management of their financial affairs should they become incapacitated. Also, there are irrevocable trusts that you can establish for different purposes. For example, an irrevocable life insurance trust can increase funds available to your beneficiaries at your death. Irrevocable charitable trusts can be a good way to leave money to your favorite charity, while at the same time maximizing the value of certain kinds of assets.
In other circumstances, parents may have a disabled child who will require adult care throughout life, and the parents may be concerned about what will happen to the child after they die. These parents could have the part of their estate that would otherwise be inherited by this disabled child go to a special needs trust for the benefit of that child. Doing so could avoid leaving an inheritance to a child who is unable to handle it. And it could avoid having a disabled child lose their eligibility for medicaid due to the inheritance.
A good estate plan will also include powers of attorney that provide for agents to make decisions for the client if the client should become temporarily or permanently unable to make medical and financial decisions for themselves. This could happen as a result of an accident, illness, or the natural aging process.
Planning with an attorney can bring clarity to what options are available in the client's individual circumstances and how to use estate planning tools to accomplish what the client wants.
• Who will inherit my assets when I die?
• What is the best way to leave these assets to my beneficiaries?
The goal is to devise an estate plan that is tailored to each individual's needs and meets their objectives.
Estate planning begins with the client providing the attorney with information about their family; about their financial assets -- from real estate and stocks to retirement plans and life insurance; and about any concerns unique to their situation, such as a desire to provide for a differently abled child. With this knowledge and an understanding of a client's objectives, the attorney can assist the client in knowledgeably answering the first question - who will inherit my assets when I die -- and the attorney can devise a comprehensive plan for the disposition of the client's assets, with an eye to tax consequences of various options. For example, if you want to leave half of your estate to your niece and half to your friend, in some states, like Maryland, it makes a difference from a tax perspective whether you leave your friend the proceeds of your life insurance policy or you leave them the money in your bank account. This is so, even if the insurance policy amount and the value of the bank account are of roughly equal value. The lawyer's job is to be aware of these complexities and devise a plan that maximizes the benefits to the client.
Estate planning tools include wills, of course, but also a variety of trusts. There are many different trusts. The one created in a will is called a testamentary trust. Another is a revocable living trust. The benefits of revocable living trusts are often overstated, but they do provide great benefit to individuals who own property in several different states or who are concerned with the management of their financial affairs should they become incapacitated. Also, there are irrevocable trusts that you can establish for different purposes. For example, an irrevocable life insurance trust can increase funds available to your beneficiaries at your death. Irrevocable charitable trusts can be a good way to leave money to your favorite charity, while at the same time maximizing the value of certain kinds of assets.
In other circumstances, parents may have a disabled child who will require adult care throughout life, and the parents may be concerned about what will happen to the child after they die. These parents could have the part of their estate that would otherwise be inherited by this disabled child go to a special needs trust for the benefit of that child. Doing so could avoid leaving an inheritance to a child who is unable to handle it. And it could avoid having a disabled child lose their eligibility for medicaid due to the inheritance.
A good estate plan will also include powers of attorney that provide for agents to make decisions for the client if the client should become temporarily or permanently unable to make medical and financial decisions for themselves. This could happen as a result of an accident, illness, or the natural aging process.
Planning with an attorney can bring clarity to what options are available in the client's individual circumstances and how to use estate planning tools to accomplish what the client wants.