Our men and women who serve our nation at home and abroad face different challenges than the everyday person. And when it comes to estate planning, those in uniform absolutely face challenges – and many of them.

For instance, some soldiers are deployed into active-duty combat, which brings an entirely new set of circumstances for those depending on him/her back home. As Kimberly Lankford notes at Kiplinger, there are special options through the Department of Veterans Affairs available for life insurance.

There’s also special considerations than can be made for beneficiaries should something happen, including immediate access to needed funds – instead of a typical process that is delayed by court proceedings and probate. The job-related risks also highlight the need for an accurate, updated power of attorney document.

Wealth Management also points out some other common issues facing families:

• Often, moving place to place makes it difficult for the significant other to find steady work that provides benefits such as a retirement plan
• Many families are younger, which can present more unknowns when looking to plan for the future
• Members sometimes own property in multiple states

Augusta is unique in that it boasts Fort Gordon and an extensive military history dating back to Revolutionary War times. And with the U.S. Army Cyber Command coming to the area very soon, many more members of our armed forces will be relocating to the Augusta/Fort Gordon area.

And as a law firm dedicated to nothing other than estate planning and serving our community by helping them protect their families, we look forward to helping those who have dedicated their lives to helping our nation.

Prince’s recent passing drew scores of remembrance across the international spectrum. But he clearly ignored his own advice in songs like “Purple Rain”:

I never meant 2 cause you any sorrow

I never meant 2 cause you any pain

I only wanted 2 one time see you laughing

I only wanted 2 see you laughing in the purple rain

His family is likely wondering why he didn’t create an estate plan and not only defer millions of dollars of taxes – but make things much less painful.

As Yahoo Finance notes, “Between the current federal estate tax rate of 40% and an additional 16% from the state of Minnesota, the majority of Prince’s estate is going to the Tax Man. Needless to say, there is much that could have been done to avoid probate and minimize estate tax.”

For an estate valued at over $300 million, that’s a significant chunk of change going to the government – and not Prince’s family. It’s also surprising, as Forbes’ Winnie Sun noted: “Prince had a reputation in the legal world of being very hands on in his legal affairs. He went through numerous lawyers handling his affairs.”

This opens all sorts of paparazzi-level drama possibilities. For instance, he has no heirs listed and his family knows of none, but if someone had some sort of proof they were his child, then that person could be in line to inherit everything.

So, what could he have done differently?

First, actually establishing a plan would have helped his family avoid probate.  This time-consuming process, even if done without conflict between family members, is still painful going through many details. It also brings higher attorney’s fees, because the lawyers must create and submit affidavits, family tree, certificates, and more to the court.

Then, there’s usually months (with South Carolina requiring at least 8 months) for the court-appointed Executor to determine what assets there are. And with someone with many assets like Prince, it will take the Executor plenty of effort to have a complete list, replete with song royalties and much more. A last will and testament still must go through probate, but the specific instructions would speed up the process and also keep many of the assets out of the public eye. And it prevents much of the drama that could occur.

Second, using trusts to designate funds for specific people and purposes could have kept plenty of the $150 million-plus dollars within the family or a cause he cared deeply about. And trusts could have entirely avoided probate. From a revocable trust to special provisions that can be written, much of the money could’ve had instructions attached to take away the guesswork and keep much more of it out of the government’s hands.

You don’t need to own a multi-million dollar estate to warrant an estate plan. A significant percentage of your belongings, no matter the total value, could go to the government upon your passing without a plan in place. And from simple plans to complex, multi-faceted arrangements, we’ve done them all and are ready to help.

Recently, the Georgia Institute of Technology took a look at the concept of a “senior moment” and found a striking conclusion: Their minds have trouble sifting through much of what is absorbed, leading to trouble recalling information when needed. This ultimately leads to less confidence in one’s memory, which has adverse effects. Per their press release:

Researchers looked at brain activity from EEG sensors and saw that older participants wandered into a brief “mental time travel” when trying to recall details.

We all have senior moments, from teenagers to those enjoying retirement. And as the methodology shows, college students have their troubles, too:

Researchers showed older adults (60 years and up) and college students a series of pictures of everyday objects while EEG sensors were connected to their heads. Each photo was accompanied by a color and scene (e.g., living room). Participants were told to focus on one and ignore the other. An hour later, they were asked if the object was new or old, and if it matched the color and the scene.

Neither age group was very good at recalling what they were told to ignore.

However, the college students were more confident in their answers when answering questions from the researchers afterwards, an interesting difference.

We found this fascinating to read, and we hope you do as well!

When many people hear the phrase “asset protection” they immediately tune out, because they think it relates to business owners or those who own property. However, it’s a much wider-ranging phrase than it may initially seem to be.

Do you own a checking account? What about a savings account? Have a retirement plan? Any sort of mutual fund, stocks, bond investments? What about a house – or even a car?

If you said yes to any of the above questions (or many others), you have assets.

Assets are defined by Investopedia as “a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.”

In other words, it’s something that has value. And for estate planning, that value can be measured in different ways. From a hilarious family story behind a trinket to an expensive work of art, you value things differently – and it’s up to you what happens to these valuables.

There are a few areas where our asset protection expertise is invaluable.

Creditors are always looking to get what they believe is rightfully theirs. And though a person’s death does end claims for some companies, others can still go after a person’s assets. A good estate plan can dictate how people and companies are compensated, but it can also include ways to limit the amount of assets taken away from your estate.

An estate plan also reduces the strain of decision making on your loved ones. It’s hard enough to deal with the passing of a family member or trusted friend. Having to sort through a person’s things and determine what to do with them becomes a difficult part of the process, but it can be easier having a plan set in place so everyone knows what to do.

There are also ways to defer or even avoid taxes on many assets! This keeps more of what’s yours in the family and going to charities or other places you want your assets to go. And that’s why taking the time to consult an expert estate planning attorney like us makes sense, because we protect your family from undue financial and emotional stress.

If you’re unsure, we offer free two-hour workshops on a monthly basis – a great place to bring your questions!

While often an unfortunate and uncomfortable topic to address, your estate plan typically needs an update if you’ve experienced a major life change – and a change in marital status would certainly qualify as such an occasion.

There are many complicating factors that stem from divorce. For example, often when a married couple creates a will, they list the other as one of the beneficiaries. Often (though not always), that person is also named as the executor. If you get a divorce, then you’ll certainly want to change who receives your items – and who is in charge of distributing them and making sure your wishes are kept.

In addition, we think through other related documents, such as your life insurance, retirement accounts, and more. The beneficiaries on these need to be re-examined and often changed, especially because there are laws in place that will distribute assets to your ex if they’re listed.

If you have children, then thinking for them also changes. And for those under the age of 18, there are ways to ensure your assets will best support them without being subjected to undue taxes or someone else’s creditors – and keep those in charge of helping your children liable to best support your kids.

Other documents requiring a thorough examination range from durable powers of attorney to healthcare directives. While it may have been the logical choice to have your then-spouse be the one deciding how to best care for you when you were married, now it can create an incredibly awkward – and potentially dangerous – situation. A high-profile example of this occurred in 2015, when celebrity basketball player Lamar Odom was in a coma and his ex-wife was the one tasked with making the decisions for his health.

If you’ve experienced a divorce, you have plenty to deal with already. That’s why experts like us make it easy to protect yourself and your loved ones no matter the changing situation.

Occasionally, we like sharing information we believe is important or of interest to us and our clients. Recently, The New York Times published an article focusing on a Harvard University study into the status of a person’s brain after fighting off an infection.

Could it be that Alzheimer’s disease stems from the toxic remnants of the brain’s attempt to fight off infection?

Provocative new research by a team of investigators at Harvard leads to this startling hypothesis, which could explain the origins of plaque, the mysterious hard little balls that pockmark the brains of people with Alzheimer’s.

You can read more on the Times site by clicking here.

Life insurance policies offer the option to designate beneficiaries in the event you pass away – in other words, you get to name who gets the benefits from the life insurance plan. Most people with these policies do have at least one beneficiary named, which ensures a smoother process when it comes to those benefits being paid out.

However, as this 2013 article by Insure.com for Nasdaq states, there are many common mistakes to make when it comes to beneficiaries. For example:

4. Falling into a tax trap

Life insurance death benefits are generally tax-free — except when three different people play the roles of policy owner, the insured and the beneficiary. In that case, the death benefit could count as a taxable gift to the beneficiary, says Amy Rose Herrick, a Chartered Financial Consultant and life insurance agent with offices in the U.S. Virgin Islands and Tecumseh, Kan.

Say, for instance, a wife owns a life insurance policy on her husband’s life and names their adult daughter as beneficiary. The wife effectively is creating a gift of the policy proceeds to her daughter, Herrick says. The person who makes the gift — the wife — is the one who would be subject to the tax, if the amount of the gift exceeds federal limits.

The problem could be avoided in most cases by having the husband own the policy, insuring himself. However the situation can get tricky in community-property states. Consult a financial adviser to decide the best way to structure the policy.

We recommend a full review of your portfolio every three years, which keeps all aspects – including your insurance policies and listed beneficiaries – as up to date as possible. Life changes, such as new grandkids or the passing of family that had been previously listed on the policy, demand the most up-to-date directions for any probate proceedings.

Questions or comments? Contact us today!

When setting up an estate plan, one aspect to consider for those with disabled family members is this: What benefits are they getting?

There’s a great reason to ask the question.

If you leave a large lump sum for a disabled family member, it could disqualify them from receiving particular benefits, such as Medicaid, Supplemental Security Income, and more, because the income impacts eligibility for the government benefits.

An example of this would be someone who receives a lump sum of an inheritance. That could cause assets to rise all at once, which would preclude your loved one from gaining access to the programs and funds necessary because the government thinks he/she is more well off than they actually are.

That’s where a special needs trust comes in handy. These trusts are in your control – not the one to whom you’re giving it to – and thus, don’t count against them when it comes to being eligible for government benefits. These are typically referred to as special needs trusts, because they’re intended to help those with disabilities.

It takes excellent planning to think through details like these – but we specialize in trusts, especially special needs trusts. You can read more information about special needs planning here.

It’s one of the most stunning biological facts: Women, throughout the world and regardless of factor, tend to outlive men. As the BBC’s David Robson writes:

In 1800, life expectancy at birth was 33 years for women and 31 years for men; today it is 83.5 years and 79.5 years, respectively. In both cases, women live about 5% longer than men.

You can explore the potential scientific and biological reasons for this in Robson’s article, but from a will planning and estate planning standpoint, it brings up an important point: Women, on average, are the ones who have to more often work through the details of an estate plan.

But incredibly, according to this 2014 Forbes article, 51% of Americans ages 51 to 64 don’t have a will. That’s a lot of potential heartbreak if state laws have to determine what happens to everything the deceased leaves behind (and what everyone has to work through – including probate – in the absence of a will).

Put the two numbers together, and the notion of women having a bit more of a vested interest in checking “Create estate plan” off the family’s to-do list makes perfect sense.

Many people have had the unfortunate experience of struggling to take care of a parent who has lost a spouse. But without proper planning, it can be made more stressful – and lonely – for those involved when there is no provision spelled out. With changes to the tax code, brackets, and maximum limits on the rise, having an estate planning attorney take a look through any needed changes on your documents – or create your initial plan – is the safest best you can make.

Before you sell any real estate, you should contact us. Why? Because we can often help you avoid all of the tax on the sale!

We use techniques that can allow you to sell the real estate and either defer the tax or eliminate the tax altogether. We are your Tax Lawyers.

Whenever you sell real estate, you may have gain on the sale. This gain can result from selling the property for more than you bought it for because the property has appreciated in value. However, you can also have gain even if the property value has not increased in value or has even gone down in value. For example: Rental property, both residential and commercial, provide gain because you are taking depreciation deductions.

The gain on the sale can be taxed as capital gains income with a rate of about 25%, federal and state, or some of the gain can be taxed at ordinary income rates as high as 45% federal and state.

This tax is the bad news.

The good news is you can do proper planning and avoid the tax altogether – because we can help you avoid it!

We use tools that can allow you to sell the property without tax and invest in other real estate you control and manage.  But even if you are selling partly because you are tired of managing real estate, there are still tools that allow you to defer or avoid tax and escape the hassles of real estate management altogether.

The planning to avoid tax on sale of real estate is part of a careful estate plan to make sure the tax savings are preserved for your spouse and other family members.

If you have already sold your estate, we cannot help.  But we can help avoid that tax if you contact us before the sale.

So, if you are planning on selling real estate – contact us early!  We can help you keep those taxes rather than pay them to Uncle Sam.