Tag Archives: Estate Planning

Just living together can cause unwanted estate planning problems

k11782415Many couples, especially those who get together later in life, are just living together.  For whatever reason, they’ve decided not to get married.  Living together, they accumulate stuff but who owns what?

One of the biggest problems with just living together is estate planning.  If you’re one of these couples and you’re not careful, your loved ones might end up losing their home and getting nothing.

If a partner dies without a will, this is called dying intestate.  In this instance, state intestacy laws determine who will inherit that partner’s assets.  In most cases, that means a biological relative may inherit those assets, not the surviving partner.  This is probably not what either of the partners really wanted.  To alleviate this problem, a will should be drafted and executed by each of the partners.   It should include a statement that directly disinherits biological relatives and leaves the assets to the surviving partner.

Another document each partner should prepare is an advance  healthcare directive and durable power of attorney.  Unless these documents specifically name the other partner to make their medical decisions for them, a physician will not follow the instructions of anyone except a biological relative because of potential family objections.

A further document that should be considered – a revocable trust.  This will enable the partners to transfer property and money between them and will allow one partner to transfer control of his or her assets upon death.

A last point you should be aware of – the unlimited marital estate inheritance exclusion.  This exclusion cannot be used by an unmarried couple.  Instead, there may be sizable inheritance tax repercussions if estate planning is not done correctly.

It would be smart for any couple living together without the protection of marital laws to consult an estate attorney to find out what the best plan of action is for them.

For more information about estate planning, check out our website www.diesmart.com.

 

Your never to young to write a will.

yelchinAnton Yelchinleft, the Star Trek star, died a few months ago in a bizarre automobile accident.  He was 27 years old.  His assets were about $1.4 million….and he had no will.  He also had no spouse or children.  Therefore, his parents are asking the probate court to make them administrators of his estate.

He may not have wanted his parents involved in his estate.  He may have wanted someone else to handle his affairs.  But we’ll never know.  Accidents do happen and you need to be prepared.  Write a will today.  Make sure that people know what your wishes are so that they can be carried out after you’re gone.

For information about estate planning, check out our website, www.diesmart.com.

Who gets your bible and your jelly jar collection?

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Do you have a tangible personal property memo as part of your estate plan?  I just read a Forbes article that really makes a good case for why one is necessary.

An example they used is as follow, “When a widow with incapacity issues and squabbling adult children died, the executor she named in her will rushed to her home and changed the locks just as one son showed up to take things left in her will to his siblings.”

“in another case, an elderly woman who lived in a run-down house despite having millions of dollars in securities in the bank, had told various nieces, nephews and friends from church that she would give them specific pieces of costume jewelry, the family bible and her collection of homemade jams.  What they were fighting over were these sentimental, valueless items because they had an emotional attachment to them.”

How can you prevent these kinds of squabbles at what is already a very emotional time in your family’s life?  Put everything in writing.  Don’t must make oral promises.  Spell out who gets what in a will, trust or personal property memorandum.  That way, there won’t be any guessing games or arguments.  Your executor will distribute specific items to those who you wanted to have them.

For more information about end of life planning, check out our website at www.diesmart.com.

Seven towns want their residents to become immortal!

cemeteryBet you never thought that there would be places where death is a crime.  Well, there are.  Seven cities in Italy, France, Brazil, Spain and Norway urge their citizens not to die.

 

  1. Sellia, Italy – The town has only 537 residents, the majority over 65.  The mayor decreed that getting sick was not an option.  If the residents died, it might kill the town as well.  Even though the ban is not enforceable, the town government encourages its residents to stay healthy.  Anyone who doesn’t get a yearly checkup will be fined.
  2.   Cugnaux, France – Because there were only 17 plots left in the town cemeteries, in 2007 the mayor decreed dying illegal for anyone who didn’t already have a crypt to be buried in.  The only available land for a new cemetery was on a nearby military air base.  However, the defense ministry did not want the town to bury its dead there.  Luckily, the defense ministry finally gave in and agreed to allow burials.
  3. Sarpourenx, France – In 2008, because of overcrowded cemetery conditions, the mayor forbid residents from passing on.  “Offender shall be severely punished.”
  4. Biritiba Mirim, Brazil – In 2005, there was such a shortage of space in the local cemetery that the mayor banned death.  Luckily, a new cemetery opened in 2010 so people are allowed to go on dying.
  5. Lanjaron, Spain – In 1999, this town faced a grave shortage.  So the mayor forbid his citizens to die until municipal officials could find space for a new cemetery.
  6. Falciano Del Massico, Italy – In 2012, this town decided to outlaw death as a way of prodding a neighboring town into letting it share cemetery space.  (The neighboring town had been charging non-residents more for a plot.)  As of 2014, the town was still fighting to get a new cemetery.
  7. Longyearbyen, Norway – It’s the world’s northernmost settlement and mostly a mining town.  In 1950, realizing that bodies in the local cemetery were not decomposing, the town stopped allowing new burials.  If you get sick and think you’re going to die, you’d better go elsewhere.

If you know of another town anywhere in the world that doesn’t allow death, we’d love to know about it.

For information about end of life planning, check out our website www.diesmart.com.

From 29 to 6 – at what cost?

Prin eAs everyone probably knows by now, Prince died on April 21, 2016 and he didn’t have a will.  You’d think that someone who had attorneys involved in almost every phase of his life and was worth more than $250 million would have done some estate planning, but evidently not.

Once his death was announced, 29 people came forward claiming to be Prince’s relatives.  After several court hearings and DNA testing, the group was whittled down to 6.   A few weeks ago, the judge ordered additional genetic testing to conclusively determine whether these people are his descendants.

What did all of these court hearings, testing sessions and attorneys cost?  We don’t know but the amount is definitely a sizeable figure.  It’s an amount that could have been avoided if Prince had written a will and a trust.  In those documents, he could have spelled out exactly what he wanted done with his money and to whom he wanted it to go.

You probably don’t have $250 million to worry about but, whatever the amount, you can make it much more cost effective and a lot less nerve wracking for your heirs if you’ll just prepare the appropriate legal papers.  That way, there won’t be a lot of guessing and fighting in court about what others think you meant to happen.  It will all be spelled out in your will and trust so there will be no doubt about your wishes.

For information about estate planning, go to our website www.diesmart.com or consult a estate planning attorney.