Bonfrisco Law Firm

What Does Estate Planning Cost?

Michael Bonfrisco, Estate Planning Attorney — Tue, 26 Mar 2013 18:13:50 +0000

Over half of all Americans do not have a comprehensive estate plan despite knowing that they need one. One of the reasons people often cite for not creating an estate plan is the cost involved. Instead of thinking in terms of what the cost is to create an estate plan, think in terms of what the cost is if you fail to create an estate plan.

There is no simple answer to questions regarding the cost of an estate plan because each estate plan is as individual as the person creating the plan. For some people, a Last Will and Testament is all they really need while for others an estate plan requires numerous trusts, life insurance policies, and maybe a business succession plan. Regardless of the complexity of the estate plan you might need, it will be more cost efficient to create it than to continue putting it off.

Failing to create an estate plan can cost your estate thousands of dollars in legal fees and taxes. Assets that could go to your family and loved ones when you die could be lost to these costs. Just the basic costs involved in probating an estate can add up quickly—and could be avoided with some simple advance planning.

Mistakes in an estate plan can also be costly which is why do-it-yourself estate planning documents are not a good way to try and cut costs. An out of date document, for example, could be more trouble than not having one at all when it comes time to probate your estate.

So the next time you decide to put off creating your estate plan because you are concerned about the costs, remember that not creating a plan will cost more in the long run.

What Estate Planning Document Ultimately Controls?

Michael Bonfrisco, Estate Planning Attorney — Tue, 26 Mar 2013 18:13:19 +0000

A comprehensive estate plan typically includes more than one document. Although a Last Will and Testament is usually the foundation for any estate plan, most include secondary documents such as trusts, insurance policies, and financial accounts. Even documents such as titles are actually part of your estate plan. Sometimes these documents appear to conflict with each other, begging the question “Which document ultimately controls?”

Imagine, for example, that your mother’s Will clearly states that all of her assets are to go to you; however, upon her death you encounter an investment account that is titled as a payable on death account with your brother as the payee. Who receives the assets in the investment account? As a general rule, a Will disposes of property that is individually held by the maker of the Will only. Accounts or property that are jointly held, or that include a beneficiary designation, such as an investment account, will be disposed of according to the way in which the asset is held or titled.

What this means is that most likely, if an investment account is properly titled as a payable on death account, then the funds in the account will go to the payable on death beneficiary despite language in the Will indicating that all assets go to another beneficiary. For this reason, it is very important to understand what the estate planning ramifications are of titling accounts or property jointly or including a payable on death designation as they can essentially “override” broader intentions in a Will.

Common Questions You May Be Asked at Your First Estate Planning Consultation

Michael Bonfrisco, Estate Planning Attorney — Tue, 26 Mar 2013 18:12:28 +0000

Even if you are accustomed to working with an attorney and discussing confidential information, you may still be shocked at some of the highly personal questions your estate planning attorney will ask you at your first consultation. Along with understanding that your answers are confidential, it may help to know what your attorney needs to know.

Questions about out of wedlock or adopted children—all biological children are potential heirs to your estate even if they were given up for adoption of born out of wedlock. Ultimately, only you can decide whether you want them to remain heirs; however, your attorney must know about them in order to honor that decision.
Attempts at having children—if you plan to have children in the future, your estate plan should be created to reflect that desire. In addition, if fertility treatments are part of that plan then you may have genetic material frozen at some point. This material is actually an estate asset and must be accounted for in your plan.
Your health – your attorney will operate on the assumption that you will live as long as the average man or women unless you mention any serious or chronic health problems. If you have any, your plan should be created with the possibility of an earlier death in mind as well as with the possibility of incapacity.
Business interests – if you have an interest in a business then you need a business succession plan. Without one, your efforts to build that business could be for nothing in the event of your unexpected death or incapacity.

For more information about what to expect, please join us at one of our upcoming estate planning seminars.

What is a Conservator?

Michael Bonfrisco, Estate Planning Attorney — Fri, 08 Feb 2013 16:15:06 +0000

There are two types of guardians you can appoint for your minor child. The first is someone who will oversee their day-to-day care, such as choosing the schools they’ll attend, deciding which faith they’ll be raised in and making decisions regarding any medical treatments they might need.

The other type of guardian is someone who manages your child’s property and assets until they come of age. This kind of guardian is more commonly known as a conservator and it can require some special knowledge and skills.

Depending upon the inheritance you leave behind, your conservator may need to make investment decisions, buy and sell assets and negotiate real estate deals. These decisions must typically be approved by the court and a regular accounting of the child’s assets must be provided by the conservator.

Of course, your conservator can enlist the help of qualified professionals, such as attorneys, stock brokers and the like, but you still need to choose someone who’s generally good at managing money and understands some of the complexities of the financial world.

Smaller estates on the other hand, may not require such extensive knowledge. A standard savings account for example, may just need someone to oversee the funds until the child reaches the age of majority.

Still, because of the time and effort that managing an estate can take, it is common for a conservator to be paid for their time. And because most of the documents for the court will probably be prepared by a lawyer, their fees may come out of your child’s inheritance.

For further information on property guardians, guardianships and trusts, talk to an estate planning attorney who can help you make the best choice for your child’s property.

Have You Planned for Fido?

lrosales — Mon, 21 Jan 2013 20:47:12 +0000

Estimates are that one in every five pet owners has made plans for their pet in the event of their death. Are you one of them? If not, maybe now is the time to plan. The consequences of not making a plan for your pet can be tragic.

Some people assume that a loved one or family member will step in and take care of the family dog or cat when they die; however, that does not always happen. Your family member may not have the financial means to care for the pet, may not live somewhere that allows pets, or may simply not be inclined to care for an animal. When this happens, your beloved pet may end up in a local animal shelter. The good news is that this can easily be avoided by some simple planning on your part now.

The first thing you need to do is talk to your intended guardian and make sure that he or she is willing and capable of taking on your pet in the event of your death. Once you have found your guardian, you can set up a pet trust through your estate planning attorney to ensure that the financial aspect of caring for your pet is covered as well. Your pet trust can be nothing more than a simple means of providing funds for your pet’s care or it can be a very complex document that determines everything from what food your pet will be given to what veterinarian he or she is to use. The important thing is that you act now to prevent your pet from being left alone after you die.

What to Expect from Your First Meeting with Your Estate Planning Attorney

Michael Bonfrisco, Estate Planning Attorney — Thu, 03 Jan 2013 20:09:40 +0000

You have probably been gently prodded or even pushed by well-meaning family members and friends to finally create an estate plan. If you have taken the important step of making an appointment, or plan to do so in the near future, you are likely wondering what to expect from your first meeting. Although each meeting is unique, there are some common things that occur at your first estate planning meeting, including:

Your attorney will gather some basic information and run a conflicts check before any sensitive information is shared.
If you are married or are in a domestic partnership or union, it is usually best that your partner attend the initial appointment with you.
An overall idea of the type and value of your assets should be revealed to your attorney.
Family relationships will be explored to determine how you wish your assets to be distributed upon your death.
Any business interests that you have will be discuss so that you can formulate a business continuity or succession plan for those interests.
Any known medical issues will be discussed as well as your thoughts on incapacity planning.
Gifting, charitable interests and any other philanthropic objectives of yours will be explored to ensure that they become part of the overall plan.

Once you and your attorney have touched on all of the above, you will be able to sit down and create a comprehensive estate plan that will protect you and your loved ones now an in the future.

How to Approach Estate Planning with a Second Marriage

Michael Bonfrisco, Estate Planning Attorney — Thu, 03 Jan 2013 20:08:57 +0000

Estate planning can be an emotionally charged undertaking even in a first marriage. When you sit down to discuss estate planning with a future or current second spouse, it can get even more emotionally charged and complicated. There is no right or wrong way to estate plan when you are contemplating, or are in, a second marriage; however, there are some things that you and your new spouse can consider before sitting down at the proverbial estate planning table.

Consider your wishes and goals separately before sitting down together to talk.
Imagine different scenarios and how you would want them to play out. For example, what happens if you die first? If your spouse dies first? What if your two have children together down the road? What happens if you two get divorced in the future?
Talk to your estate planning attorney about a life estate or Qualified Terminable Interest Property (QTIP) trust if you want to protect your spouse without actually handing over assets to him or her.
Pay particular attention to personal items or family heirlooms when estate planning as any existing children may be offended if these items are inadvertently left to a new spouse.
Talk to your attorney about a pre-nuptial or anti-nuptial agreement. People often make the mistake of assuming these are geared at the idea of a future divorce when, in fact, they are often an excellent tool for estate planning for couples getting re-married.

How to Protect a Loved One by Using a Trust

Michael Bonfrisco, Estate Planning Attorney — Thu, 03 Jan 2013 20:08:39 +0000

The overall concept of an estate plan is to provide for the distribution and transfer of all your estate assets upon your death. Often, an estate plan calls for you to begin transferring assets while still alive through gifts as well. Although there are numerous tools that will effectuate the transfer of assets, when you wish to protect a beneficiary from his or herself, you may wish to consider using a trust.

Whether your intended beneficiary is young, notoriously bad with money, or simply lacking in the experience necessary to handle a large financial gift, it is not uncommon for a benefactor to be concerned about handing over a large sum of money or a valuable asset. Trusts are the perfect tool for this situation.

By placing assets or funds into a trust, you have the ability to appoint a neutral party as the trustee to oversee the administration of the trust. Your trust terms can be as specific or as flexible as you wish; however, the bottom line is that the trustee will decide when and how assets are distributed to the beneficiary. By using a trust, you effectively protect the beneficiary from being frivolous or foolhardy with the assets left to him or her by placing control of those assets in the hands of someone more experienced with financial affairs.

Along with preventing your beneficiary from spending the money foolishly, you may also be able to protect the assets from creditors of the beneficiary in the event the beneficiary fails to handle his or her finances outside of the trust funds in a prudent manner.

Are You and Your Adult Children on the Same Page Regarding Your Estate Plan?

Michael Bonfrisco, Estate Planning Attorney — Thu, 03 Jan 2013 20:06:49 +0000

Estate planning is a subject matter that most people prefer not to think about, much less discuss in depth with their children. Avoiding the topic, however, could leave you and your adult children seriously disconnected on important topics.

As you and your children age, they will likely begin to worry about you. They will probably worry about whether or not you are financially secure enough to live comfortably during your golden years. They may also be concerned about what your wishes are in the event you become incapacitated or terminally ill. Without guidance from you, your children will continue to worry about these things and will reach their own conclusions. Those conclusions could be seriously off the mark.

Your child, for instance, could be socking away money to take care of you when you are older when, in fact, that will not be necessary. On the other hand, your child could be under the impression that he or she will be inheriting a large sum of money that is not forthcoming. Either way, your child is making financial plans based on inaccurate information or conjecture.

By the same token, your child may think that he or she knows how you would want situations such as a terminal illness to be handled, but maybe he or she is wrong. The only way your child can really know what your wishes are is if you tell him or her.

Taking about finances, estate planning and illness with your children is not easy, but it could save a considerable amount of confusion and misunderstandings down the road.

Do I Need an Asset Protection Plan?

Michael Bonfrisco, Estate Planning Attorney — Fri, 23 Nov 2012 11:49:51 +0000

If you are like most people you automatically assume that an asset protection plan is just a fancy way to describe hiding or fraudulently transferring assets. In reality, nothing could be farther from the truth. Moreover, chances are that you could benefit from an asset protection plan at some point in your life.

As is the case with other situations in life, if you suddenly find yourself in a situations where you need to protect your assets it is probably going to be too late to do so unless you already have an asset protection plan in place. Protecting you assets could become necessary if you are personally sued for liability or for any of a myriad of other reasons. Asset protection also works in your favor if you need to qualify for a state or federal assistance program that takes resources into consideration when determining eligibility.

Protecting future assets can be done relatively easier through the creation of a spendthrift trust. In order for a trust to qualify as a spendthrift trust, however, you cannot be the trustee of the trust as is allowed in other types of trusts. Furthermore, the trust must be completely discretionary and there must be the possibility of distribution of assets to other beneficiaries besides you at some point in the future.

Protecting current assets can be a bit more complicated. Ensuring your assets is one method of protecting them. Transferring assets into another entity or into another category of assets that is protected are other ways in which you may be able to protect current assets. Be sure to talk to your estate planning attorney about your options.