The typical layperson probably does not know much about the estate planning process.  He or she may know what a last Will is meant to accomplish but not know how a last will is handled.

If you do set out your final wishes by executing a last Will, it is not going to be a private family matter. Because you may have outstanding debts or financial claims against you at your death, individuals or entities have an opportunity to recover from the estate; and if someone wants to contest the Will, he or she will have an opportunity to do so.

The forum for this to take place is called probate.  The probate court determines whether or not the Will is valid, and the administration of the estate is conducted under the supervision of the probate court. Handling the actual tasks involved is the responsibility of the executor or personal representative.

So, depending on the details of your estate, the executor will have to take care of a wide array of details. Debts must be settled, taxes must be paid, and property may have to be liquidated. The executor must work with the heirs to the estate as well, and this is not always smooth sailing.

Given the potential difficulties of probate, you might benefit from the assistance of a legal professional in preparing your estate; and your executor may also need to bring in a probate attorney once you pass away to help navigate the estate through the process.

If you are interested in finding out more, simply take a moment to arrange for a consultation with an experienced Ashland KY probate lawyer.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

In the process of estate planning you will inevitably hear the word “probate” so we would like to explain a little bit about it.

A lot of people think that a last will is a document that is just passed around among family members. But your will actually must be found valid by the probate court, and interested parties can step forward to challenge the will in court. During probate, creditors and claimants can also come forward seeking satisfaction.

Once a will is accepted by the court, the executor must inventory the assets and prepare them for distribution to the beneficiaries of the estate.

This has the potential to take a considerable amount of time. Exactly how long it will take depends on the complexity of the case, but in some cases it can take years.

Probate can also be expensive.  Court costs and various professional fees can come into play. In the end, probate expenses can potentially wind up consuming a considerable portion of your estate, and this is money that could have otherwise been put to good use by your loved ones.

Fortunately, there are strategies to avoid probate. If you would like to explore them in depth, take action to arrange for a consultation with a licensed Ashland, KY estate planning lawyer. Your attorney will gain an understanding of your wishes, evaluate your assets, and guide you in the right direction.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

A lot of people are not aware of all of the costs that may impact their legacies when they are doing their planning. With this in mind let’s take a glance at Probate costs.

If you use a last Will to direct the transfer of assets to your loved ones, your estate has to go through a legal process that is called Probate. During this time any parties who had business with the estate could come forward seeking satisfaction, and if anybody wanted to challenge the Will they could do so before the Probate court.

Once these things are settled, the executor or personal representative prepares assets for transfer to the rightful heirs to the estate.

There are expenses involved in all of this. They start with court costs and the executor’s remuneration. The executor may have to retain a probate lawyer, and since final taxes will probably be an issue, a tax accountant is often necessary.

Sometimes property needs to be liquidated, and this can require the services of an appraiser and a liquidation company. All this can add up to diminish the value of your estate by a considerable percentage.

This is one of the reasons why people often choose to arrange for the transfer of assets outside of the probate process. There are a number of ways of doing this, and if you would like to explore your options, the wise course of action would be to sit down and discuss the matter with an Ashland or Northern Kentucky Estate Planning lawyer.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

The last will is the most common estate planning vehicle, and everyone knows what a will is intended to accomplish. However, when you are planning your estate you don’t have to use a last will. There are a number of different vehicles to transfer assets; and depending on the nature of your assets, the dynamics of your family, and the specific details of your wishes, a last will may not be the best option for you.

One reason a lot of people look for alternatives to a last will is because your estate must go through the probate process when you rely on a last will. Probate is the period of time during which the probate or surrogate court determines the validity of the will and supervises the process of estate administration.

During this time disgruntled parties could step forward and challenge your wishes. This in itself is one reason why some people choose to avoid probate. They know that some interested parties may not be happy with their decisions and they don’t want to leave the door open to will challenges.

Another reason why people avoid probate is because it is potentially costly. By the time you add up court costs, attorney fees, accountant expenses, appraisal charges, and liquidation fees the overall value of your estate can be reduced by perhaps 5% or more.

And finally, it takes a significant amount of time for probate to run its course, and your family members will not receive what has been left to them until the probate court closes the estate.

To gain an understanding of how you should proceed given the realities of probate, you need to be apprised of all of your options. This is why it is a good idea to retain the services of an estate planning attorney when you are evaluating your legacy.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

Part two of two parts on Probate and Estate Planning (continued from August 24)

In our earlier post on Probate we defined Probate for you and gave you some examples of how an estate is settled in the courts.  Again, Probate is designed as a protective tool for families, but Probate does have drawbacks, not the least of which is loss of privacy.

Another critical factor – often overlooked – is the fulfillment of the wishes of the deceased: it may be that he or she wanted to leave this or that to an heir (or heirs), but the documents in place at time of death were not specific enough, or perhaps were contested in Probate.

However, there are ways to avoid Probate that deserve a serious look.  Again, we’re not saying that Probate is bad…

But we are saying this:

It’s not just about avoiding Probate so you can “stay out of the courts.”  It’s really about control over the fate of your estate … and the future well being of your loved ones.

This is where Estate Planning comes into play – and why a plan that is designed just for you can actually save money (such as taxes) in the long run … for you or your spouse, and for the loved ones that you want to provide for after your death.

Back to control, and your loved ones’ future …

A legally-enforceable Estate Plan, and planning tools such as a Living Trust, can provide you with:

• Protection of your assets – in your lifetime and beyond
• A plan that can be tailored to very specific individuals, even one by one, who you want to honor with an inheritance
• Disbursements of certain assets over time, for the benefit of certain heirs
• Privacy in the settlement of your estate; no Probate
• Customized options that take into consideration today’s changing family structures
• Someone who you appoint to handle your affairs later on
• Peace of mind, knowing your wishes will be fulfilled

Estate Planning, of course, is something that needs to be handled by an attorney who is trained in Estate Planning.  With the proper Plan, you’ll not only avoid Probate, but have a Plan that you’ll be proud of.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

Part one of two parts on Probate

You’ve probably heard of the term “Probate.”  Probate relates to the settlement of an estate by means of a specific process in the courts.  Many estates are settled in Probate, but not all of them by any means.

The most common Probates involve individuals who do not have a formal Estate Plan or Living Trust in place.  Probate is put into practice in every state, although the procedures can vary.  The intent of Probate is to offer a legal process for reviewing the estate, the payment of due taxes, payment to creditors, and the final disbursements of the estate’s assets.

So Probate is not necessarily a bad thing; again, the intent is protection.  Certainly Probate has drawbacks such as the time to get through the courts (there are many steps), perhaps complexity, perhaps people who contest an inheritance, the cost of Probate, and other concerns.

If a couple is married and one spouse dies, assets are often transferred automatically to the surviving spouse outside of the courts, so no Probate process kicks in.  However, if the surviving spouse then dies and he or she did not have any legal Estate Planning tools in place that would have kept the estate out of Probate, then the estate is settled in the courts.

Even if there’s a Will in place – or if there is no Will – and there is no other legally-binding estate planning in place, the estate goes to Probate.

However, Probate can be avoided.

Individuals and couples who want more control over how their estate is handled – and who want to avoid Probate – can do so by having an attorney create an Estate Plan.  The Plan can include various tools, such as a Living Trust, which can ensure that the estate does not go to Probate.

You may think, “This may be a big expense” but careful planning for your estate and your heirs – even if you do not have a lot of assets – can actually save a lot of money in the long run, not to mention keeping your affairs private (since Probate matters are public record.)

So, while Probate is intended to protect an estate, even more protection – as well as significant savings in taxes and other benefits – comes with a proper Estate Plan.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’ve been appointed the executor of a loved one’s estate, you have many upcoming responsibilities.  It’s important to make sure that your handle all of the affairs with care and dedication.  Take a look at the information below to better understand the importance of keeping an open line of communication with beneficiaries. If you have any questions, or if you need help understanding your duties as executor, contact an estate planning attorney.

As an executor, it’s your responsibility to stay in contact with beneficiaries throughout the probate process.  This helps the beneficiaries to understand the process and avoids frustration, hurt feelings, anger, and conflict.

Not keeping an open line of communication could create problems.

Take a look at the following example:

Kevin’s mother passed away several months ago.  His mother’s boyfriend was appointed as the executor.  Since his mother’s death, Kevin hasn’t heard a word from the executor or the executor’s attorney.

Frustrated, he decided to hire his own attorney to determine the status of his inheritance.  After his attorney contacted the estate’s attorney, Kevin learned that his mother had been involved in a lawsuit at the end of her life, and that this issue was holding up the closing of the estate.

As you can see, the executor had no form of communication with Kevin. The executor was likely not in contact with other beneficiaries either.  If Kevin hadn’t hired an attorney and gotten in touch with the executor, he may have assumed that he was being left out.

Beneficiaries have a right to know the status of their inheritances.  As executor, it is your job to make sure that all beneficiaries are updated and know what’s going on.  Take the time to communicate with beneficiaries throughout the probate process.  If you have any questions, or if you’d like to discuss your role as an executor, consult with a qualified estate planning attorney.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

If you’re taking a look at your asset ownership when creating your estate plan, you may be considering using joint tenancy as a way to own certain assets.  This can be beneficial in many cases, but it has many pitfalls.  We’ve outlined below some information on the use of joint ownership.  If you have any questions, or if you’d like to discuss how joint ownership would affect your estate plan, meet with an estate planning attorney.

What is joint tenancy?

Joint tenancy is a form of ownership in which two or more people own property.  Many people choose to use this type of ownership, especially with real estate.  Joint tenancy is also used with other assets such as bank accounts.  In most cases, married couples choose to use this type of ownership.

What are the benefits of joint tenancy?

One main benefit of owning property jointly with another person is the fact that the asset can avoid the probate process.  Once you die, the property will be transferred to the co-owner without having to go through probate. This is a great way to make sure that your assets are quickly inherited.  It’s also an easy way to title your asset and can quickly give you and another individual access to the responsibilities and benefits of the asset.

What are the disadvantages to joint tenancy?

There are also disadvantages that you should be aware of.  Both owners will share responsibilities and will have constant access to the asset.  This means that it’s especially important to choose someone who is responsible and reliable so no one takes advantage of you when owning property jointly.

Your property will also be subject to creditors if a co-owner is involved in bankruptcy or other financial difficulties.  This means that the property can be taken from you, even though you’ve done nothing wrong.

Children are often unintentionally disinherited, especially if a surviving spouse gets remarried.  And, there is no asset protection granted when you inherit through joint tenancy.

Take the time to carefully weigh out the advantages and disadvantages of joint tenancy before choosing this option.  And talk with a qualified estate planning attorney about whether this option is best for you.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

A will is one of the most basic and important estate planning documents.  If you’re just getting started with your estate planning, you may be considering implementing a will into your plan.  However, you may be unsure of the benefits of a will.

Take a look at the information below to learn more.  If you have additional questions or if you’d like to create a will, contact an estate planning attorney.

What is a will?

A will is a legal document that allows you to appoint a guardian for the care of your minor child after your death, decide how your assets will be distributed after your death, and choose who will settle your estate.

What happens if I don’t have a will?

If you don’t have a will, your wishes likely will not be followed.  Your state’s laws will determine how your assets are distributed.  This means the wrong people may be given your belongings.  For instance, in Kentucky, your children may receive much of your property instead of your spouse.

In addition, you won’t have a say in the guardian for your children and the executor of your estate.  These are important roles and responsibilities and you should take the time to make the important choices.

How do I create a will?

While you can legally create a will on your own, it’s a good idea to work with an attorney.  Your attorney will be able to guide you through your decisions as well as give you valuable legal advice.

If you’ve been thinking about creating a will, now is the time to do so.  You want to make sure that you’re always prepared.  If you have any questions about the process, or if you’re ready to create you will, consult with a qualified estate planning attorney.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.

When a loved one dies, you will likely feel overwhelmed, sad, and stressed.  You may feel angry and scared as well.  All of these emotions are completely natural.

Your mind will likely start spinning and you wonder what you should do next.  The smallest task may seem insurmountable.  Know that you will get through it and that there is no emergency, meaning that you don’t have to get everything done right away.

Also, important to remember is that there are many people who will help you.  Who to call when a loved one dies:

• Family, friends, and clergy will likely be among your first telephone calls if you loved one died in a hospital or some other kind of care facility. 

• If your loved one died at home, you’ll likely call the funeral home first to have the body removed and to make arrangements. 

The funeral home will give you a check list of tasks to be completed and give you death certificates.  Ask for at least one for each asset owned.  If you don’t know how many assets your loved one owned yet, request 10 death certificates to get started.

The funeral home will also help you to write the obituary and have it published in the local paper so friends know about the death and the funeral or memorial services.

• Your estate planning attorney will walk you through estate and trust settlement.  She will be the calm in your storm, providing professional guidance with experience and empathy.
• If  your loved one was still employed, call the employer to give notice of death and stop health insurance coverage when a loved one dies.

• Your life insurance agent will assist you with receiving life insurance proceeds.
• The Social Security Administration will assist in stopping monthly payments and in processing any applicable survivor benefits. Similarly, if your loved one was a veteran, the Veterans Administration will assist with stopping monthly pension or compensation payments and determining eligibility for survivor benefits and burial assistance.

The Potter Law Firm is a member of the American Academy of Estate Planning Attorneys.