Estate planning is going to involve inventorying your assets in anticipation of future distribution of the same to your loved ones.  You must then decide on how you are going to get these assets from point A to point B.  When you’re doing this you have to identify those who will be receiving inheritances and ideally choose the vehicles of asset transfer that are appropriate given the age and proclivities of these recipients.

Along these lines many people have to stop and take pause as they are considering how they will provide for minor children when they are planning for the future.  There are two different levels to this.  Parents of minor children are going to have to go forward in a precautionary manner under the assumption that it is possible that they will pass away prior to the children reaching adulthood.

This would entail naming a guardian who would care for the children in the event of the death of the parents.  Life insurance would also be a key component, and the proceeds could be directed into a trust for the benefit of the children.  One could also name a property guardian in his or her will, or select a custodian to handle the funds in behalf of the minor children under the Uniform Transfers to Minors Act.

In other cases older people such as grandparents or great-grandparents may want to provide for children with the knowledge that they will probably still be minors when these inheritances become available.  These individuals often create trusts that include stipulations with regard to how money can be spent for the child’s well-being while he or she is still a minor.  The trust agreement can go on to provide a framework for asset distribution after the child becomes an adult, and this can sometimes include incentives toward positive behavior such as educational achievement.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

If you were asked to visualize the typical estate planning client sitting in the lawyer’s office, who would you see? The stereotypes might include a fifty-something successful entrepreneur, sixty or seventy year-old retired grandparents, or even an eighty-plus year-old widow all planning how to handle the estate they will eventually be leaving behind. Yet young people, especially those with children, need to have an estate plan in place to protect their family in case one or both parents die.

Modern families are busy with the activities of daily life: juggling two jobs, attending sports practices and games with the kids, maintaining the home, and once in awhile taking time out for dinner and a movie. Perhaps all that they’ve accomplished in the way of estate planning is the purchase of a life insurance policy.

Even though a young family might not own the same level of assets as more established individuals, they too can benefit from the services of an estate planning lawyer. An estate planning lawyer can draft the correct documents needed to make certain that the children will live with the right guardians in the event that both parents die, for example, in a car accident. While parents might assume that the kids will live with grandparents or other family members if something happens, state agencies that oversee child welfare might not agree unless the proper guardianship documents are in place.

Young parents should have the legal documents that are needed in case of emergency. An estate planning lawyer can prepare durable power of attorney and appointment of healthcare representative (also called medical power of attorney) forms for a potential medical emergency.

Estate planning needs begin early and change over time. A competent estate planning lawyer provides the counsel needed for every age group.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

If you want to provide for a disabled child or adult, you might want to consider a special needs trust, also called a supplemental needs trust.

A special needs trust gives a disabled or incapacitated person the little “extras” in life without endangering their public assistance benefits such as food stamps, Medicaid, or Supplemental Security Income “SSI.”

Such trusts can allow for education, travel, and home care above what is provided by public benefits, etc.

• –the recipient be less than 65 years old at the time the trust is established
• –the trust be irrevocable
• –the trust must be set up by a parent, grandparent, guardian, or the court (if the trust is a pooled special needs trust, the trust can be set up by the disabled person)
• –trustee must have absolute discretion over the funds; no direct payments to the disabled recipient
• –if a pooled trust, at the death of the disabled person, the trust can retain a portion of any remaining funds to benefit other beneficiaries of the pooled trust.

Special Needs Trusts Funded by Those Other Than the Disabled Person.

This type of trust does not need to reimburse the state for Medicaid costs at the death of the disabled person.

Other features include

• –the trust can be revocable by settlor
• –can be established after disabled person turns 65
• –any remaining funds can go to other family members if disabled person passes away

Please contact your Estate Planning Attorney who can help you establish a Special Needs Trust for your loved ones.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

A divorce, whether acrimonious or amicable, is an emotionally and, oftentimes, financially devastating life event.

A Separation Agreement or final Decree of Divorce stipulates division of assets, child custody, visitation and support and alimony payments. However, there are other things you need to do to prevent your ex-spouse creating further financial difficulties or receiving assets if you die.

If you have minor children, a Last Will and Testament or a Living Trust is essential. These legal documents permit you to appoint a Guardian to raise your children and a Trustee to distribute your estate. If you do not have a valid Will or Living Trust, your ex-spouse (or someone else you do not want) may receive custody of your children and acquire your assets.

A Health Care Power of Attorney may be another critical document. A Health Care Power of Attorney allows a person of your choosing to make decisions on your behalf should you become incapacitated and unable to form your own decisions.

Numerous other details, which may seem trivial, must be looked after; otherwise, the consequences may not be quite so minor. If you and your ex-spouse have joint bank or investment accounts, these must be put into your name only or he or she can withdraw money or automatically receive the proceeds should you die.

Life insurance policies, pension plans, 401k plans or any type of asset that has trustee and/or beneficiary designations need to be reviewed and your ex-spouse’s name replaced, if necessary. If you want your children to be beneficiaries, you can appoint a trustee to manage the assets until they reach the age of majority.

Be aware a Last Will and Testament is not legally binding on beneficiary designations and accounts with joint names. This means, you must change the beneficiary clauses and accounts to ensure your ex-spouse has no entitlement to these assets.

An ex-spouse can run up expenses on credit cards and utility accounts held in joint names and you are equally responsible for his or her debts. Cancel or delete his or her name from these accounts immediately to protect yourself.

If you need legal advice about estate planning after a divorce, please contact us. One of our knowledgeable estate planning attorneys will assist you.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

If you’ve just had a baby, you know how busy and overwhelming life can be. Amid all the excitement and the adjustments you’re making, it’s important to take some time to think about your estate plan, and how you’d like to provide for your child in the event that you pass away.

Especially at this time in your life, planning for this unfortunate circumstance is the last thing you’re likely to want to think about; however, this is an essential part of protecting and providing for your family.

Here’s a few things you’ll want to consider when planning your estate:

• Making sure your property goes where you want it to, when you want it to, and in the amount you want it to.
• Making sure that you name a guardian to raise your child in the unlikely event that both you and the child’s other parent pass away while the child is still a minor.
• Making sure that someone is in place to manage the children’s property and financial affairs until they’re old enough to do so themselves.

As part of a good estate plan, you’ll have a will or living trust that will allow you to name someone you know and trust to serve as guardian for your child. This person will be responsible for bringing up your child and making all the day-to-day care giving and educational decisions. This is important because, if you don’t appoint someone to take over this essential may, then someone will be selected by the probate court, and it may or may not be the person you would have selected.

The same is true for naming someone to take care of your child’s finances. In general, if only one parent passes away, then the other parent just continues to take care of bringing up the child, including handling any property or money on behalf of the child. However, if both parents pass away, a conservator will be named to handle money and property for the benefit of the child. You’ll want to name someone you trust instead of leaving it completely up to the legal system.

Minors don’t have the legal capacity to handle their own financial affairs, so, in order to avoid the need for a court-appointed conservator, you can establish a trust on behalf of your child. This allows you to name a trustee to oversee your child’s financial affairs, and it allows you to control when property is distributed to your child. Instead of handing over all of a child’s inheritance when they reach age 18 or 21, many parents choose to distribute funds in stages as their child matures into a young adult.

An estate planning attorney can help you put the documents in place that will ensure your child is cared for even if you’re no longer here.

Frank & Kraft, Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.