Tag Archives: inheritance

Want to avoid probate?

estateplanningYou may think that if you have a will and in it you name the person who should inherit your home, that’s all you have to do.  Yes, it is if you’re willing to have the home go through a probate process.  That probate process will cost the beneficiary a lot of money as well as time and will be a public record.

However, there’s now a way that many can avoid the whole probate process and that’s thru the use of a transfer on death (beneficiary) deed.

There are several states that have a similar law and California just joined their ranks in January of this year.

If you live in one of these states, you now have the option to complete a Revocable Transfer On Death Beneficiary deed and name a beneficiary for your home.    After your death, the beneficiary can directly claim ownership rights to the property without involving the probate court and paying probate fees.

The deed can be completed and filed without hiring a lawyer or paying a third party to record the deed with the county recorder.

For some homeowners, a TOD Deed can be a cost effective way to avoid probate on the death of the last owner.   If you own a home and have it listed in your will, you might want to consider this new option.

For more information about probate and estate planning, go to www.diesmart.com.

Are your beneficiary designations up to date?

k8758525Do you have a bank account?  What about a brokerage account or life insurance policy?  Have you set up an annuity  or a retirement plan?

You probably have a least one or two of these types of accounts.  When you set them up, you were asked to name a beneficiary for each.  At the time, the person you named was someone you wanted to receive these assets when you died.  It might have been a spouse or significant other.

It’s been several years since you named that person.  Have your circumstances changed?  Are you now divorced or no longer involved with him or her?  Have you remarried or had children you want to be sure are protected?

Most people name a beneficiary and then forget about it.  They never go back and update the information provided so it reflects their current wishes.   They figure it doesn’t matter because they have a current will that designates who should inherit what.  However, it does matter.  Whoever is named as a beneficiary receives that asset when you die, regardless of what it says in your will.   So your ex-husband or former girlfriend may receive a large sum of money that you didn’t want them to have.

Don’t let this happen.  Review your beneficiary designations whenever your circumstances change and be sure that your assets will go where you want them to when you die.

For more information about estate planning, go to our website www.diesmart.com.

You need a will. Why shouldn’t you write your own?

blended familyMost blank will forms are based on the assumption that you are part of a traditional nuclear family with a husband, a wife and a common set of children.  It will further assume that you wish to follow the traditional path of inheritance:  The surviving spouse will inherit the deceased’s assets and they will they pass to the children upon the second spouse’s death.

Instead, as is very often the case today, you may be part of a blended family.  If so, you should definitely see an attorney and prepare a will that will protect every member of that new family.

Let’s look at an example of what might happen if you don’t have a well written will.

John and Susan had both been married previously.  John had two children from his first marriage and Susan had three.   When they got married, all was well for several years.  Then John died suddenly.  Susan inherited all of John’s estate (which included assets he had brought into the marriage).

When Susan died, her three children inherited her assets; John’s children got nothing.  Why, because they were not Susan’s legal children and neither John or Susan’s will legally protected them.  A lengthy legal battle ensued with the biggest winner being the attorneys.

Although this blog is based on an article from the Sydney Morning Herald, it is critical for everyone in a blended family to take heed.

Make sure your legal paperwork protects your family and distributes your assets the way you want them allocated.  Don’t take a shortcut now that may result in unnecessary pain and suffering at a later date.

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

Why is Michael Jackson’s estate back in the news?

michael jacksonWhen Michael Jackson died in 2009 at age 50, he left a will that specified what should be done with his assets.

He may not have taken into consideration what those assets would be worth in subsequent years…but the IRS has now done so.  There is now a huge dispute between the Internal Revenue Service and Michael Jackson’s estate over what should be paid in estate taxes.

According to Michael Jackson’s representatives, the value of the estate is currently $2,105; according to the IRS, it’s more like $434 million.    “With interest and penalties, lawyers estimate the case – set for trial at a Los Angeles tax tribunal in 2017 – could be worth more than $1 billion.”  The outcome of this trial could impact celebrity estate planning.

Howard Weitzman, the estate’s lead attorney, that the Michael Jackson name has “experienced a commercial rebirth thanks to the savvy executors who have managed the estate’s assets.”  He estimates that Jackson earned no more than $50 million for the licensing of his name and image when he was alive and doesn’t think that what’s been done since Jackson’s death should impact what the estate pays.

It is important to note that this is the first time ever that the IRS is pursuing estate taxes for name and likeness earnings after a celebrity’s death.

If the estate loses the case, Michael Jackson’s heirs will be hit with a huge tax bill.  If the IRS wins, this will probably be the first of many celebrity estate cases that it will pursue.

You are probably not worth $434 million and your heirs won’t be faced with this kind of issue when you die.

However, knowing what your estate is worth and putting into place the correct type of plan to protect these assets for your loved one is critically important.  If you don’t have a will, you should consult an estate attorney and get one written today.  Otherwise, the government will decide what will happen to your assets and your family will have no say in the matter.

For information about estate planning, go to www.diesmart.com.

 

 

What’s your most important password?

passwordsYou may guess it’s the password to your online bank account, to Facebook or to a shopping site.  Those are all important but there’s one that it’s critical you share with a loved one.  It’s the password to your email account.

Why is this so important?  When you die, your loved one or executor will try to access all of your online accounts so that they can close them down or, if necessary, continue their use.  For example, they may want to shut down your account on Amazon since you won’t be doing any more shopping.  Or, if you pay your utility bills online, they may want to continue to pay them until they sell your home.

You may use the same login information and password for all of your accounts but chances are that you have several different ones.  However, most of the accounts have a system that will enable a user to recover a forgotten login or password.  The user just needs to know how to access the email account linked to that other site so he or she can recover the information when it is sent out.

Although it is not strictly legal for you to share your password and login information, it is the easiest way to ensure that when you’re gone, your executor will be able to easily access your information and settle your estate.

For more information about digital estates and the steps you should take to be sure you have included them in your planning process, check out our book “Access Denied ” or go to our site www.diesmart.com.