The Nelson Law Firm Bluffton Estate Planning | Tax Law | Business Law2024-03-13T13:26:25Zhttps://www.nelsonlawfirmbluffton.com/feed/atom/WordPressOn Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471902024-03-13T13:26:25Z2024-03-13T13:26:25ZEstate planning largely revolves around leaving assets to your loved ones upon your death. Nonetheless, there is much more to it than this.
Charity plays a huge part in the lives of many people. If this is the case for you, then you may want to make charitable giving a part of your legacy. You can do this in numerous ways with your estate plan. Here’s how you can make charity a part of your plan.
Leave money in your will
One of the most straightforward ways to give to charity is to leave money in your will. You can do this by naming one or more charities as beneficiaries. However, before doing so, it’s important to ensure that you make clear that the beneficiaries are charities. This can help reduce the amount of estate taxes. Also, you don’t necessarily have to leave lump sums of money. You can give property to charity as well as other assets such as heirlooms, art collections and other valuables. If you are leaving a piece of real estate behind, you may be able to set up your estate plan so that you can continue to live in the property for the remainder of your life.
Charitable remainder trusts
Another option for giving to charity is to set up charitable remainder trusts. One of the main benefits of these legal instruments is that you can set precise terms. For example, rather than donating a large amount, you can set up the trust so that smaller payments are made over a set number of years. This could help with the long-term sustainability of the charity and it means that your legacy lives on for several years. Having access to legal information will help ensure that you establish an estate plan that honors your final wishes. ]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471862024-02-27T12:15:25Z2024-02-27T12:15:25ZA payable-on-death (POD) account is a bank account that has a beneficiary designation. Essentially, you have the ability to use a Totten trust – the technical name for the necessary paperwork – and transform your personal bank account into a POD account if you would like. You can then select any beneficiary, giving them a right to those funds when you pass away.
One of the major advantages is that the contents of the account transfer into the beneficiary’s name immediately. This keeps those assets out of probate. Probate can take longer, it may be more expensive and there is the possibility of a dispute between beneficiaries. To avoid this, rather than putting the bank account in your will, you can just create a POD account and specify exactly who you want to have control of that account.
Can they access the account immediately?
No, one of the other benefits of a POD account is that it does not actually take effect until you pass away. This means that you are not giving up control. You can still use that account just like you do right now, and your beneficiary cannot access it and use your money without permission. Once you pass away and they provide the proper paperwork to the bank, however, then they become the owner of the account.
Setting up your estate plan
A POD account is just one estate planning tool that you may want to consider. Be sure you know about all of the legal options you have while setting up your plan, especially when considering complex financial assets and trying to avoid disputes between your family members.
]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471852024-02-13T12:00:04Z2024-02-13T12:00:04ZIf you haven’t made an estate plan yet, you may think that you’re falling behind. Perhaps you assume that most people already have a plan in place, and you’re the one who needs to get caught back up. In fact, maybe this assumption is why you are now considering making an estate plan in the first place.
It is quite important to make your plan in advance. That said, it is a myth that most people have already done so. The truth is that the majority of Americans don’t yet have an estate plan. You’re not alone if you haven’t made your plan yet, although you do want to take steps to get it in place.
Why do people procrastinate estate planning?
Most people won’t say that they’re never going to make an estate plan. They know that it can be useful. They’ll tell you that they’re just going to do it later, meaning that they’ve been procrastinating.In some cases, people do this because they find estate planning confusing or even overwhelming. They’re not sure where to start, so they keep putting it off. There are also those who think that they need to wait until they have more financial assets. They keep pushing estate planning into the future as their assets grow.One of the biggest reasons, though, is that people just guess about when they will need an estate plan. They may assume that they will live until they are in their 70s or 80s, so they’re waiting to make an estate plan when they are closer to the end of their life.
Making an estate plan
Regardless of the reason, procrastinating estate planning is risky because a person could pass away unexpectedly, with no plan in place. This is just one reason why it’s important for you to look into all of your estate planning options this year.
]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471832024-02-01T02:40:55Z2024-02-01T02:40:55Zcommon mistakes that you’ll want to avoid when estate planning are detailed below.
Procrastination
One of the biggest mistakes people make is procrastinating when it comes to estate planning. It's easy to put off creating a will or establishing a trust, but failing to do so can leave your family in a difficult situation if something unexpected happens. Start the estate planning process early to ensure your wishes are documented and legally binding.
Not updating documents
When your life changes, so should your estate plan. Failing to update your will, trust or other estate planning documents after significant life events, such as marriage, divorce, birth or death, can lead to complications and disputes. Regularly review and update your estate plan to ensure it remains relevant.
DIY estate planning
While do-it-yourself (DIY) solutions are appealing for some tasks, estate planning is not one of them. Using generic templates or online services may lead to errors in your documents that can render them invalid or result in unintended consequences. Consult with an experienced estate planning attorney to better ensure that your plan is legally sound and tailored to your specific needs.
Neglecting beneficiary designations
Certain assets, such as retirement accounts and life insurance policies, allow you to designate beneficiaries directly. Failing to update these beneficiary designations or not designating them at all can lead to assets passing to unintended recipients, bypassing the wishes detailed in your estate plan.
Avoiding these common mistakes is essential for a smooth and effective estate planning process. Working with professionals and staying proactive in managing your estate plan can help ensure your assets are distributed according to your wishes.]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471822024-01-15T17:17:33Z2024-01-15T17:17:33ZYour estate executor is the person who will be in charge of reading your estate planning documents and following the instructions that you have listed within. Say that you have two adult children and you want to divide your financial assets between both of them. The estate plan may outline your intentions, but is the estate executor who inventories these accounts and then splits them up between the beneficiaries.
As such, it’s important to find the right person. Here are a few things to look for.
Responsibility and attention to detail
To start with, this person needs to be very responsible and dedicated to accomplishing the goals set before them. They also need to pay attention to small details. Administering an estate can be a complex and technical process, and you need someone who is focused and intelligent enough to handle it.
Proximity to your family
Although some things can be done online or over the phone, many steps need to be taken in person. This also could be an urgent situation where the estate executor suddenly has to begin performing these duties without much warning – such as after an unexpected passing. It is often best to choose a person who lives relatively close by.
Willingness to take on the role
Finally, remember that being an estate executor can be hard. Not only is it intellectually complex, but it can be emotionally difficult, especially if a direct descendent is named as the executor. Once you choose the person who you think would be best for the role, be sure you talk to them to ensure that they are willing to do it.Naming an estate executor is just one part of estate planning. Take the time to carefully consider all the steps you need to take.
]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471812023-12-29T21:32:56Z2023-12-29T21:32:56ZFor many people, the main focus of estate planning is money. They have amassed a certain amount of wealth and they want to make a plan to pass that wealth to the next generation. They can write a will, put money in a trust, use a payable-on-death (POD) account and much more.
It is important to consider the financial side of estate planning. But it’s also crucial to note that this is not all that estate planning can be used to accomplish. There are many other goals that have very little to do with finances, and they deserve consideration.
Making medical plans
For example, a person could use an advance directive or a living will to list out the types of medical treatment that they want. These instructions can tell doctors and nurses what type of medicine they want to take or refuse to take, if they want to be resuscitated or kept on life-support, and much more.Another example is when someone uses a medical power of attorney. This establishes a third party as their agent. If the elderly person is incapacitated, the agent assumes legal control and is able to make medical choices for them.
Distributing sentimental items
Next, people who are making an estate plan need to consider that low-value, sentimental items often cause estate disputes. Children and other family members may fight over who gets to have these assets because they all have an emotional connection to them.Failing to plan for sentimental items can lead to a dispute because heirs can’t come to an agreement. This process goes more smoothly if there is an estate plan giving them instructions so they don’t have to debate anything or make decisions on their own.Creating an estate plan is highly beneficial on many levels. Those involved in this process need to know what areas to consider, what legal tools they have and what steps to take moving forward.]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471802023-12-15T03:28:51Z2023-12-15T03:28:51Zadministrators and executors come in.
While these two terms are sometimes used interchangeably, they have unique distinctions that you should be aware of. Understanding the roles of executors and administrators is crucial for effective management and strategic decision-making.
What is an executor?
This is a designated individual responsible for carrying out the wishes outlined in a person’s will. They play a pivotal role in the posthumous distribution of assets, helping ensure that the deceased’s intentions are honored. Executors act as fiduciaries, overseeing the entire probate process and addressing any legal matters that may arise.
Executors hold significant legal authority granted by the deceased through their will. This authority encompasses managing the deceased’s financial affairs, repaying outstanding debts and distributing assets to beneficiaries. Their decisions are binding and must align with the legal framework governing wills and probate.
What is an administrator?
On the other hand, administrators are individuals appointed by the court when there is no valid will or appointed executor. Their key responsibility is to oversee the distribution of the deceased’s assets according to the intestacy laws.
Unlike executors, administrators derive their authority from the court’s appointment. Their decisions are guided by intestacy laws, which stipulate the rightful heirs and the distribution of assets in the absence of a will. Administrators must adhere strictly to these legal parameters.
Understanding the nuances between executors and administrators is important for anyone involved in estate planning or business succession. While executors execute predetermined plans, administrators navigate the complexities of intestacy laws.]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471792023-12-05T14:10:59Z2023-12-05T14:10:59ZA will is a document that outlines the deceased's last wishes. Courts often scrutinize wills closely to ensure there are no issues. However, there may be reasons to invalidate a will.
A will dispute could make probate take longer, but it may be necessary. Here are a few reasons a will might be contested:
Undue influence
A testator's last wishes might have been similar for many years. However, right before their passing, they may have made drastic changes to their will that benefit one person, such as a caretaker, power of attorney or guardian. This may have happened because of undue influence. Undue influence is the attempt to persuade someone for personal gain, which can lead to will disputes.
Forgery
The executor and probate court evaluate the authenticity of a will. If it appears that the most recent will has strange handwriting, wordage or signature, it could be a forgery. A will dispute could happen if a will is clearly forged.
Missing witnesses
For a will to be valid, there must be two witnesses who don’t benefit from an estate. Witnesses are important so that it’s clear the testator is in sound mind and not pressured into signing the will. Without the witnesses, there may be grounds to contest the will.
Problems with the executor
The executor of the estate is typically assigned by the testator. The role of the executor is important, but it’s not meant for everyone. If the executor fails their fiduciary duty, there may be reason to contest the will and assign a new executor.
Multiple wills
Many people make multiple wills. When a new will is made, the old one should be discarded. If a will isn’t discarded and it’s unclear which will came first, then it can create issues for beneficiaries. If you believe that it’s necessary to contest a will or a will you’re benefiting from is facing a dispute, it may benefit you to reach out for legal help.]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471182023-11-17T18:01:43Z2023-11-17T18:01:43ZYou may not consider your digital assets when considering estate planning. However, it is essential that you plan for these, as well as your tangible assets.
Digital assets encompass a wide range of electronic records and accounts, including social media profiles, email accounts, digital photographs and online banking or investment accounts. The fate of these assets is governed by a combination of state law, federal law and the terms of service agreements of the digital platforms.Under South Carolina law, the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), you will find legal guidelines for managing digital assets after death. This law allows you to specify in your will, trust, power of attorney or other record who can access your digital assets and what they can do with them. In the absence of explicit instructions, the terms of service agreements of the digital platforms take precedence.It's important to actively plan for your digital legacy. Without clear directives, loved ones may struggle to access or manage digital assets, potentially losing sentimental and monetary value. Here are steps to consider:
Inventory your digital assets: Compile a list of all digital assets, including login credentials. This list should be kept in a secure location and updated regularly.
Estate planning documents: Incorporate digital assets into your will or trust. Specify a digital executor, someone you trust to manage your digital legacy.
Understand platform policies: Familiarize yourself with the policies of various digital platforms regarding deceased users. Some platforms may allow for accounts to be memorialized, while others may delete them.
Secure storage: Securely store your digital asset inventory and estate planning documents, and ensure your executor knows where to find them.
By proactively managing digital assets, you can ensure your digital legacy is preserved and your wishes are respected.]]>On Behalf of The Nelson Law Firmhttps://www.nelsonlawfirmbluffton.com/?p=471142023-10-31T23:53:52Z2023-10-31T23:53:52ZMany people who haven’t yet begun the process of developing an estate plan think that the will is the only instrument used to designate how assets will be distributed after they die. While the will is always the central document of an estate plan, there are multiple ways to distribute assets.
In fact, if you use your will to bequeath your assets, it will likely need to go through probate, which means more time and work for your personal representative, and costs will be deducted from your estate. Let’s look at a few other ways that people codify how their assets will be distributed after they’re gone.
Ownership/title
If you have a joint owner with the right of survivorship on a bank account or piece of property, like a home, that asset also belongs to them and is solely theirs on your death. On some assets, like bank accounts, you can add a transfer-on-death (TOD) or payable-on-death (POD) designation so it goes to the person of your choice after you pass away.
Beneficiary designation
If you have retirement or investment accounts, you likely have listed beneficiaries for these accounts with the bank or other company that holds the account. That’s how those assets are transferred upon your death. The same is true for life insurance policies.
Trusts
There are a multitude of trusts you can set up to leave assets to loved ones. All of these have different requirements.A living trust is a common estate planning tool for those who want their estate to avoid probate. People typically place their homes, cars, bank accounts and other valuable assets in their living trust and designate in the trust document how they’re to be distributed. You need to title those assets in the trust’s name, but you have complete control over them while you’re alive.
Your will
A will generally includes a residuary clause. This allows you to designate any assets you may not have included anywhere in the estate plan (like relatively low-value items or new purchases) to be distributed as you designate. This is simply a brief overview of all the ways in which you can designate beneficiaries. It’s crucial to understand how they all work together and which choices are best for your unique situation. Having experienced legal guidance is critical.]]>