It’s never too early to start thinking about your estate plan. When you’re in your 30s or even in your 20s, it can be wise to start planning for your future. After all, life is unpredictable and anything can happen at any time. It’s better to be prepared. This article explains several estate planning essentials every young adult should consider.

1. Student Loans – While federal student loans discharge in the event of your death, if you took out a private loan or your parents co-signed with you, they could be on the hook for the loan in the event of your passing. If this is the case, you should consider buying insurance in the amount necessary to account for your debts. This should include your mortgage or any other outstanding loans you may have.
2. Power of Attorney – Who will make decisions for you if you are medically or physically unable to? Assigning power of attorney can mitigate any unnecessary, additional stress for your loved ones during what would be an already difficult time. Look online for a template to set up a POA. 
3. Last Will and Testament – Life is unpredictable. If you passed away today, what would happen to your things? Without a will, a judge will decide that. Find an attorney who specializes in estate planning to help you create a solid last will and testament and name an executor. 
4. Retirement Accounts and Beneficiaries – while you may not have as many assets as older people quite yet, it’s important to name a beneficiary and keep these documents updated whenever you make a big life change. This includes getting married or divorced. 
5. Digital Assets – from cryptocurrency to social media accounts, list all of your digital assets and login information in a document with your estate attorney to help protect and preserve your accounts after your passing.
6. Child Guardianship – It’s tough to think about, but critical to address. Help mitigate any additional pain or confusion by appointing a guardian in advance. If this isn’t done, the decision will be left up to a judge. 
7. Don’t forget about pets – Who will take care of your beloved pet when you pass away? Prevent more heartache by deciding this now. You can also create a pet trust to cover food costs and veterinary care.

One common misconception surrounding estate planning is that it’s something to worry about once you get older. This could not be further from the truth. It’s never too early to set up your will, especially if you have any pets, children, or even just a bank account. This article makes some great points regarding the importance of creating a will or estate plan sooner rather than later. 

So, what happens if you die without creating a will? State authorities will assume control of your assets and dependents and distribute them in accordance with your state’s laws. Do you share a home with a partner? Without a will, your partner most likely has no legal right to remain in the home after you pass away. It’s vital to express your wishes in a will or estate plan to ensure your loved ones are taken care of after your passing. 

Even if you are single, having a will in place can protect your assets and accounts. Here are just a few examples:

• Pets – you can ensure your pets go to a loved one or someone you trust to care for them.
• Financial Accounts – with a will, you can ensure your accounts are transferred to the intended recipient
• Heirlooms and valuables – Pass on your most treasured possessions to someone special

If you’re ready to set up a will or discuss an estate plan, contact Rhodes Law Firm today! We can help give you peace of mind and guide you through the process.

Your will is the cornerstone of your estate planning. Without it, your entire estate can become an afterthought to the courts.

Because you must follow the law with this planning, your will is often created first. It can also serve as a template for powers-of-attorney and any other required documents.

What comes after this is a discussion of proper estate planning. Your will is the start, with vetting by attorneys and perhaps drafting a living will or healthcare directive being the next level.

But what about the other half of estate planning? How much should you pay for your estate plan?

The answer is different for everyone, but it depends on how extensive your estate planning needs are. Keep reading to learn more about estate planning can prepare you for the future.

What Is Estate Planning?

Estate planning is the process of anticipating and arranging someone’s affairs during their life if that person becomes incapacitated after death. These plans may eliminate the guessing and maximize the value of an estate by reducing the taxes and other expenses assigned to the estate after someone’s death.

The goal of an estate plan can vary. Estate plans exist to grant the wishes and meet the needs of the property owner. Estate planning includes:

• Wills
• Advanced Healthcare Directive
• Probate
• Trusts
• Power of Attorney

With an estate plan, you will have control over who will inherit your assets rather than the government. Instead of letting the state’s default laws pick your heirs, estate planning enables you to choose who will get your assets upon your passing.

Why Can Estate Planning Can Be Worth The Investment

Most individuals who have property or a family should create an estate plan. Depending on the size of your estate and other variables, you might or might not need an estate plan.

Estate plans are helpful if you want your partner to manage your finances and make medical decisions for you if you become incapacitated and you want to leave your assets to them. You must have an estate plan to guarantee that your assets will pass to your partner upon your death and to formally designate your partner as your agent in your financial and medical power of attorney.

Be Proactive to Find an Estate Planner

You need to be prepared for the inevitability of mortality. That is why you need to be proactive about connecting with an estate planner and securing your assets for the future.

By discussing costs upfront, you can have an open conversation about fees and consultation costs. You need to attend your first educational meeting to talk about different aspects of an estate plan.

Once you choose an attorney, you need to put your deal in writing. By starting with a comprehensive contract, you will be able to keep the firm accountable as you entrust them with your finances and assets. It is necessary to research different firms to select the correct firm to manage your estate.

How Much Does Estate Planning Cost?

The cost of estate planning can greatly vary. When budgeting for your estate planning it’s critical to understand who will be working on your estate plan and what kind of plan you require. Estate planning fees are usually broken out into hourly rates, flat fees, or contingency fees.

Hourly Rate

Your lawyer will probably charge you an hourly rate if they are unable to determine a fixed price. Any time spent making your estate plan will be charged at an hourly rate.

If your lawyer charges by the hour, they may also need a retainer upfront. This retainer pays for onboarding costs and contributes to your bottom line. If your estate planner will take more time or work, they may opt for an hourly fee.

Flat Fee

Your lawyer may charge a flat fee to cover the cost of their estate planning services and experience. Usually, this fee includes the creation of a will or a power of attorney.

If your attorney requests a fixed fee, you need to inquire what is covered in that arrangement. Your fixed fees may need to be paid in full before the attorney starts working.

Contingency Fee

In circumstances where you will get financial compensation, a contingency fee is used. For instance, you pay your lawyer a percentage when you obtain once a lawsuit is finalized.

Because payment would be circumstantial, lawyers rarely offer contingency fees as an option for estate plans. A probate lawyer could charge you this fee if they are going to settle an estate.

Lingering Fees

Before you invest in an estate plan, you need to inquire about different fees. These fees are variables that can impact the overall cost of your estate plan. You need to be proactive in scheduling an upfront consultation.

Use A Qualified Estate Planning Professional

An estate plan’s ability to reduce the costs, delays, and invasion of privacy associated with the probate procedure is one of its primary benefits. Estates allow you to provide for your family even after you pass. Many people find great comfort in the ability to care for their loved ones. This makes it essential to minimize the expenses and taxes and to ease the burden of loss on your family.

Interested in finalizing an estate plan for you and your family? Contact our team at the Rhodes Law Firm to get started on estate planning and securing your financial future.

If you have an estate plan or are in the process of creating one, it may be wise to ensure its language doesn’t unintentionally exclude an heir with disabilities. If you have a loved one with a disability, default probate laws may disqualify your disabled beneficiary from receiving full government benefits (Supplemental Security Income). Essentially, a direct inheritance would be considered an available resource and would reduce benefits and insurance amounts until these funds are fully used. This article offers insight on how to protect your disabled heir’s benefits.

Ensuring your funds are held in a Special Needs Trust (SNT) can help prevent any issues such as this from arising after your death. These trusts are just one of the various estate plan solutions for beneficiaries with disabilities. Other options include an ABLE account, a pooled trust, or purchasing exempt resources for your beneficiary. 

If you would like to review your estate plan options and ensure all of your heirs will be well taken care of, contact Rhodes Law Firm today. Our team can discuss the various strategies available and make sure your estate plan will stand the test of time. 

Losing a loved one is never easy, and trying to cope with that loss while deciding what happens to their belongings can be extremely painful.

Memories come flooding in, emotions run high, and invariably drama can ensue. Family members whom you haven’t seen in years (or ever in some instances) are fighting over who gets to keep what.

When the dispute becomes too intense with no clear resolution being reached from either side, the courts can step in and decide how a deceased person’s assets are divided.

This is called probate.

Whether you’ve been named the executor of a will, want a small trinket as a special reminder, or have yet to draft your own will, knowing what probate is and how it works can help you navigate this emotional time.

Keep reading to learn more about the probate process, how it works, and how you can avoid probate should you desire.

What Is Probate?

Probate is the legal process where a probate court determines the validity and authenticity of a deceased person’s will. Whether the will is valid or not, or if there is no will, the probate court will also determine inheritors and prioritize paying off outstanding debts.

Wills are validated to ensure legitimacy. It’s not uncommon, especially with large estates, for multiple wills to start appearing after death. Most of the time the deceased drafted several wills over their lifetime and someone found an older draft.

The court will determine which of the wills is valid. The probate court has the final ruling on which will is valid and who the inheritors are.

How Does Probate Work?

Probate does not begin automatically when someone dies. If there is a will present then the will must be filed at the courts, if no will is present then paperwork must still be filed with the court.

With a Will

Typically the executor of the will file the document with the probate court. However, anyone in possession of a will may file it in court when that person dies.

After validation, the court will officially appoint the executor. The executor then has the legal powers to act on behalf of the deceased.

The executor’s responsibilities however are not so straightforward. The executor is responsible for distributing a deceased person’s assets to their heirs, and sometimes that means finding an heir or heirs.

Typically the executor is a family member so most executors are able to easily contact all heirs. However, there are times when there has been a falling out with a family member or a long-lost relative is listed no one has ever heard of.

In these cases, it’s important to note the executor cannot decide to who the assets go, but instead must execute the will as written by the deceased.

Without a Will

When no will is present an administrator is appointed over the estate rather than an executor. This also occurs when a will is deemed invalid and there is not another will to file.

Once the court has appointed an administrator the administrator executes similar duties to an executor. They are responsible for locating heirs and distributing the assets.

Again though the administrator does not necessarily determine who gets what The probate court will determine based on the hierarchy of heirs who gets what of the deceased assets.

If no heirs can be located and none come forward the state overseeing the estate can claim the assets for the state itself. However, there is a timeframe that must pass before that can happen.

Jointly Owned Property

Assets that are jointly owned can sometimes be tricky. Especially when one owner is still living while the other is deceased. The probate court in these instances uses a hierarchy of heirs.

At the top of the hierarchy is typically the surviving spouse. After that are any children the deceased may have had. Past that the courts will decide how the assets are distributed.

It is worth noting, however, that without a will friends of the deceased are not considered a part of the hierarchy of heirs.

Joint accounts are considered assets and are left to the surviving owner. In these instances the owner is a surviving spouse, however, any joint account with rights of survivorship will be distributed to the surviving owner. Regardless of the relationship with the deceased.

This also applied to co-owned property as well.

Avoiding Probate

There are ways to avoid entering into probate. You may want to avoid probate in cases where you would like specific assets to go to specific heirs without writing a will.

It’s not a secret drama that unfolds when wills are discussed and brought up. Feelings can be hurt, and respect and loyalty can be turned into feelings of betrayal and rudeness.

Transfer Ownership Prior to Death

Rather than waiting until being deceased for an heir to take possession of an asset, you could transfer the ownership to the heir while alive.

This can be beneficial in certain situations where a person may be married more than once in their lifetime. Or possibly chooses not to marry the person they now share a home with (roommate, friend, significant other).

Living Trust

A living trust or trust fund holds onto the asset of the deceased. Trusts have designated beneficiaries and can specify how to distribute the assets.

When assets are placed in a Trust Fund the deceased is also able to dictate certain criteria for the heirs to meet prior to receiving their inheritance. This can include a child or relative attending college, using funds only to pay for a home, or reconnecting with the family.

Secure Your Heir’s Inheritance

Death is difficult to process. The loss leaves an ache that never really goes away. Many people handle grief differently and can react in extreme ways. Often this appears in the form of laying claim to a passed relative’s assets and can become aggressive.

To avoid these things and to help your loved ones grieve easier and remember the happier times you should understand the probate process. Whether in a will or without one, knowing how your assets will be divided can go a long way in helping your family through a difficult time.

Contact our team of experts today to help you with all your estate needs.

Splitting up is never easy, no matter your age. However, more and more, elderly couples are deciding to go their separate ways. Divorcing after so many years together may complicate an already complicated matter. According to this Kiplinger article, “gray divorce” is on the rise and there are a few things to keep in mind if this is something you are going through. 

1. Divide and conquer your financial advisors and attorneys. It may be best for one spouse to keep the existing planner and attorney and for the other to get new providers. 
2. Consolidate your nest egg to one financial institution so it is easier to keep track. 
3. Negotiate ahead of time how payments will be split for any upcoming nuptials for your children. 
4. Update your beneficiaries to reflect your separation. You may want your inheritance to go to an adult child or sibling instead of your former spouse.
5. Consider a prenup if you get remarried. This will serve as an added layer of protection for your adult children and grandchildren. Also take this time to update your power of attorney to your new spouse.

It pays to plan ahead. If you’re going through a divorce in your older age, we can help you navigate all of the important considerations and decisions. Give Rhodes Law Firm a call today. 

Do you have a plan in place should you become severely ill or incapacitated? It may be grim to think about, but it is vitally important to have a power of attorney in place to make decisions on your behalf. This article explains just how important it is to have someone selected to make your financial and health decisions. A power of attorney would pay your bills, handle your insurance claims, or even file your taxes. 

Whether you are young, old, single or married, you should have a power of attorney in place. Without one, your loved ones will likely have to petition the court to step in on your behalf – a time-consuming and pricey process. This also opens up the possibility of loved ones fighting over who should be your guardian. You can save all of this unnecessary stress and frustration by appointing someone now.

An experienced and well-versed estate attorney can help you draft your power of attorney that meets your specific state’s requirements. Whenever you are ready to get a plan in place, contact Rhodes Law Firm. Our team of skilled attorneys are here for you.