Are your Young Adult Children Protected?
Young adults rarely think about estate planning because they often have no assets (real estate, car, etc.). However, they are just as in need of planning as any other older adult. If your 18 year old is attending college in another state you likely will not be able to communicate with your child’s doctors, even in an emergency. Imagine your child is in an automobile accident in a distant state and you cannot talk to their doctor because they are unconscious or unable to give permission- every parent’s worst nightmare come true. The problem is easily solved by ensuring that your young adult has a Durable Power of Attorney and Advanced Directive, giving you the automatic right to speak with the hospital. These documents are inexpensive and easily amended as the children age and perhaps want to pass agency to a spouse. Until then, don’t let your children go unprotected.
– Kathryn Bedell, Esq.
What is a Special Needs Trust and Do You Need One?
Any parent or spouse who knows that their child or other beneficiary has special needs that will require them to avail themselves to governmental programs (like Maine Care) in the future will want to consider a Supplemental Needs (also known as Special Needs) Trust in their Estate Planning. A Supplemental Needs Trust is specifically designed to ensure that the beneficiary will not be deemed to have inherited assets that could potentially disqualify them for the program they are on. This can be especially important for children who have extreme medical needs and cannot afford to lose that funding. A Supplemental Needs Trust will protect the money so it will be there for the needs of the child/grandchild/beneficiary. It is a very restrictive trust that must last for the rest of that beneficiary’s life. This requires special care when choosing a Trustee and Successor Trustee to oversee the trust. If you think this may apply to your family situation don’t hesitate to call and learn more.
– Kathryn Bedell, Esq.
I’m a Young Parent, How Should I Set Up My Life Insurance Policy?
Many people with young kids to educate and mortgages to pay off will have large term-life insurance policies to cover these expenses if anything happens to them. Young families often do not do estate planning and make simple mistakes that can prove costly down the road. Most standard Wills will have a trust in place for minor beneficiaries. The Trustee holds on to the money and spends on behalf of the minor, for their benefit until they reach a certain age (i.e. 25 years old). For this reason, if you have young children, your life insurance should flow through your will to fund these trusts for your children. Instead I find that young families will name the children themselves or worse, a brother or sister thinking that they will spend the money on the kids behalf. But then time goes by, people get divorced, etc.. life happens. These policies are forgotten. Part of the Estate Planning process is going through all your assets and making sure details like this are attended to. I offer a sizable discount to young families because they so often neglect this critical issue. See my young family discount and call me today.
– Kathryn Bedell, Esq.
Is your Trust Fully Funded?
Many of my clients come to me with Trusts that have not been funded or fully funded. What does that mean? It means they had a trust document drawn up by their lawyer in the past, but everything they own is not in the trust. Their house is not in the trust, bank and stock accounts, etc. are not in the trust. They likely did the trust to avoid probate and in fact will not only have probate, but will also have to deal with the trust, who is likely the beneficiary in the Will. What should you do to prevent this? Check out my Determining Your Net Worth hand out and make sure that everything on that worksheet is either in your trust or has beneficiaries (IRA’s, 401Ks cannot be in the trust). Is the house in the trust? Are the timeshares in the trust? What about the cars? In order to have that seamless transition you are expecting when you pass you need to make sure EVERYTHING you own has been included. It doesn’t matter how big or small that account is. The details matter. Learn more about trusts in my hand out – Trusts are they Right for Me?
– Kathryn Bedell, Esq.
BUYER BEWARE – On-line Estate Planning Documents
In these uncertain times Estate Planning (Wills, Trusts, Powers of Attorney, Advance Health Care Directives) is on everyone’s minds. Many people use on-line services to generate basic forms. Unfortunately, those documents are often cut and paste, and can often have wrong information. Maine, for example, just passed a sweeping change to it’s Probate Code in September, and many on-line national programs have not caught up yet.
The Estate Planning Process is so much more complex than drafting a few forms. One of the most critical elements of the Estate Planning process is reviewing a client’s assets and making sure they are all titled properly. No on-line program can do this.
Working with an attorney is not as expensive as one might think. At Ballou and Bedell the entire process for a single person is $475 and $775 for a married couple. We offer a generous discount (25%) for any young families with minor children. These documents, if done well, can potentially last you the rest of your life, depending on your age. Don’t be penny wise and pound foolish.
Call us today and put your mind at rest.
– Kathryn Bedell, Esq.
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