February, 2019 - Simms Law Firm

What actually is your estate?

An estate is your net worth on your date of death.

It includes all property that you own or control such as bank accounts, real estate, life insurance policies, stocks, and personal property like artwork, jewelry, and vehicles.

And, an estate also includes your debts, such as car loans, mortgages, and credit card debt.

What is an Estate Plan and Why is it so Important to have one?

No one likes to think about death, but, it is important to be prepared when the time comes so that your loved ones have a clear understanding of your final wishes.

Estate planning is making a plan in advance that provides details of how you want things handled when you pass.

So, basically an estate plan is a set of written instructions that describes how and to whom you want your property to be distributed after you die.

An estate plan may also provide other details such as funeral arrangements and care for pets when you have passed.

Complete estate plans should also include health care instructions if you should become ill or disabled before you pass. You should also direct who can make financial and legal decisions for you if you become ill or disabled.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.

This blog post is not case-specific and is provided only for educational purposes and is not intended to provide specific legal advice. Blog topics may or may not be updated and entries may be out-of-date at the time you view them.

The content of your will and other estate planning documents is very important. If you choose to write your will yourself, your family could face a number of obstacles after you are gone. As your will passes through probate court, its content could be challenged by anyone who feels they were wronged. An estate planning attorney can help you avoid such dilemmas by ensuring that all wording is clear and that your intentions are understood.

Your will can also be challenged if it was not signed according the requirements of your state’s statutes. Having a wrongly signed will is the same having no will at all.

An experienced attorney can also help avoid having to probate your will, resulting in cost and time savings for your family.

An estate planning attorney also has knowledge of financial issues that may affect your estate. Drafting a will is not just about who will end up with your money and your house. An attorney will look at all aspects of your finances, such as any retirement accounts you may have and will also consider your debts. There might be other details to consider such as who will care for your pet when you pass.

A properly drafted estate plan can give you peace of mind. It is important to remember that having a will is important no matter the size of your estate. Each estate is different, and an attorney can help you find an estate plan that best meets your needs.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.

“Problem” Heirs

Do you have a child or heir with credit problems or a drug or alcohol problem? Or maybe your child is having marital problems and you do not want their spouse to end up with your money! None of us want our life’s earnings to be squandered, and an inheritance could end up making matters worse.

You might not want to disinherit your child entirely because of his or her personal problems. Here is a solution to allow you to control your child’s inheritance and insure that it won’t be squandered or misused.

Create a Trust! A Trust can pass wealth to an heir while controlling how, when, and why your heir can access the funds. One of the advantages of a Trust is flexibility. Here are some of the ways you can accomplish your goals:

Appoint a Trustee who can resist the pleas of a desperate beneficiary. Do you have a close relative who can do this? If not, appoint a professional Trustee, such as the trust company of your bank.

Specify the specific circumstances under which the funds will be paid out. Or, you can give the Trustee complete discretion over disbursement decisions. For example:

If you heir has drug or alcohol problem, require drug testing before the funds are paid. Or give your heir incentive to change by structuring lump-sum disbursements after prescribed periods of time – perhaps require five years of sobriety.

Create an incentive for work by disbursing funds that are tied to wages or earnings.

Direct that payments must be made directly to third-party providers such as a landlord, mortgage company or utility company.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.

Many people ask me why they have heard that they should avoid probate.

Here is how the probate process works:

Probate is a legal process that wraps up a person’s legal and financial affairs after their death. During this court process, property is identified and inventoried. Also, during this process, outstanding debts and taxes are identified and paid.

Probate is a complex process filled with very specific legal requirements. Property cannot be distributed to beneficiaries until all these requirements are met.

The most common misunderstanding is that probate is not required if there is a Will. When a person dies with property in his or her sole name (no co-owner or beneficiary designation) there must be a probate – will or no will.

Probate can take a long time. I have handled probates that were open from 6 months to 3 years!

Probates are expensive. Legal fees and costs can depend on the size of the estate or the time it takes to complete the process. Even small estates can take a long time, depending on the circumstances.

Probate is a public process. Every document filed with the court is a matter of public record. Others can see how much the deceased left behind and how much each beneficiary received.

If you have concerns about the probate process, contact our office to learn how you can structure your assets to avoid this probate process.

Call the Law Offices of Debra G. Simms at 386.256.4882 to learn more.

Contact Us

Monthly Archives:

Contact Us