At St. Peter O’Brien Law Offices, P.C, we specialize in safeguarding both your loved ones and your assets. Estate planning is a lifelong process that requires periodic review of your legal documents and planning goals. Significant life events, such as the passing of three years since your last attorney review, changes in marital status, retirement, serious illnesses within the family, or acquiring new property or life insurance, may necessitate adjustments to your estate plan. We’re here to guide you through these considerations, ensuring your plan evolves with the ever-changing landscape of your life.
Most people spend their lives earning, saving and accumulating property. However, they hesitate when it comes to making a plan for these assets when they pass on.
We develop so many important relationships in our lifetimes – family, friends, and organizations. We value each of them for different reasons.
Without a Will to guide them, the people you love can flounder on the division and distributions of assets, causing stress in their relationships that can sometimes be permanent.
A Will takes into consideration the people and projects you value. It gives you the opportunity to ease the lives of your family and friends by letting them know that you thought enough of them to make a plan for this transition.
A Will assists your family with understanding the decisions you have made regarding your assets and ensures that your wishes are carried out.
No, the courts follow a specific set of rules regarding distributions.
Yes, modest estates are making meaningful gifts to charities that are deeply appreciated.
No, there are several factors related to tax planning – the value of your investment assets may increase; you may receive insurance proceeds; or inherit assets during your life that could change the value of your estate.
A trust is a legal document that enables a Trustee to control, invest, manage and distribute the assets of the Grantor for the benefit of the Beneficiary.
There are two types of Trusts: a Revocable Trust and an Irrevocable Trust, which you create and maintain during your lifetime.
An Irrevocable Trust is created during your lifetime and cannot be changed. These trusts are generally used to accomplish a specific tax or estate planning goal.
A Revocable Trust, also known as a Living Trust and sometimes inter vivos trust, can be established at any time during yoru life. You can change the terms of the trust during your lifetime.
Both types of Trusts can serve several purposes: 1) Save estate taxes; 2) Manage assets for minor children; and 3) Manage assets for disabled adult children or even your spouse.
A Revocable Trust can be amended or revoked by the person that created it (the “Settlor”). This type of trust becomes irrevocable upon the death of its Settlor. An irrevocable trust cannot be changed after it is signed.
For a Revocable Trust, the beneficiary is usually the Settlor until the Settlor’s death.
If you are able to manage your own assets, you should name yourself as the Trustee. However, you can also choose an adult that you trust. Usually, your trustee is your spouse, a relative or friend. You many even choose a professional fiduciary to represent your interests. You should ask whoever you choose if they are willing to act as your Agent.
This is a person that may have to act in the stead of your first choice in the event that the first Trustee resigns, becomes incapacitated or cannot serve for other reasons.
Yes, you can appoint more than one trustee to act on your behalf. However, if the trustees disagree, a court may have to step in to resolve the dispute.
No, the Trust controls the assets titled in the name of the Trust. The Will controls all assets not titled in the name of the Trust.
A Funded Trust is an alternative to a probate. If your assets are all contained within the turst, a probate may be unnecessary. This Trust is usually for the benefit of its Settlor until he or she passes away. An unfunded trust typically receives its assets through a “pour-over will” following the Settlor’s death.
The Trustee should manage and invest the assets and income of the trust for the benefit of the Settlor/Beneficiary during his or her lifetime and make those assets available to the Settlor/Beneficiary in accordance with the provisions of the trust.
A Revocable Trust, when fully funded, has the following purposes: 1) reduce or eliminate the need for probate; 2) avoid the need for a conservatorship for the Settlor if he or she becomes disabled; 3) protect an inheritance from a Beneficiary’s creditors, a Beneficiary’s divorce or a spendthrift; 4) tax planning; and 5) privacy.
A Testamentary Trust is set up in your Will. It becomes active after your death and helps determine how your estate will be administered. This Trust is useful when your assets do not need management during your lifetime.
No, it is usually best to provide for discretion in some matters. For example, you may wish to grant a Trustee broad powers of investment of estate assets so they will have the flexibility to adapt to future changes in economic conditions.
From the American Bar Association:
Families who head to an attorney to discuss or put in place their powers of attorney, have, at some level, had a conversation about mortality, either with themselves or with their loved ones. The bottom line is the concept, forethought and some variety of a conclusion has transpired. In all likelihood a few particulars may have been overlooked; but the attorney can walk them through the process, sweeping up the previously untended details, to put together a succinct package that provides an appropriate safety net. Relief is achieved; life continues with a certain sense of confidence.
A Power of Attorney allows you to choose someone you trust to make decisions on your behalf when you are unable to do so yourself.
Who will make decisions for you when the unexpected happens? For example:
Powers of Attorney can be made for different purposes –financial and health care are common. However, there are Powers of Attorney that can be for specific reasons or purposes.
A medical Power of Attorney allows your Agent to make health care decisions for you, while a financial Power of Attorney allows your agent to make financial decisions for you as you would make them yourself and for your benefit.
Your Power of Attorney takes effect according to its terms, either immediately or upon the happening of some later event, and may be revoked at any time.
Your Power of Attorney does not affect your rights to make decisions for yourself. It just allows your Agent to make decisions for you when you are unable to do so.
You should choose an adult that you trust. Usually, your Agent is your spouse, a relative, or friend that you trust. You may even choose a professional fiduciary to represent your interests. You should ask whoever you choose if they are willing to act as your Agent.
You may change your mind and revoke your Power of Attorney at any time as long as you are not incapacitated.
You may change your mind and revoke your Power of Attorney at any time as long as you are not incapacitated.
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