On behalf of Larmore Scarlett, LLP
posted in Estate Administration
on Monday, May 20, 2013
Outdated legal documents can wreak havoc on estate plans. Residents of Chester, Pennsylvania, are reminded to review their wills or powers of attorney to ensure that everything is up to date. Having an accurate and effective estate administration plan can prevent disasters that could have negative effects otherwise.
A recent study found that many Americans forget to update their will after they have signed it. As circumstances and tax situations change, the need to keep those documents current should be a top priority. There are four documents that require attention: a will, trust, health care directive, and a financial power of attorney.
On behalf of Larmore Scarlett, LLP
posted in Estate Planning
on Monday, May 13, 2013
Sometimes the slightest error or a moment of forgetfulness can come back to haunt you years later, and the field of estate planning is no exception. Sometimes something as simple as changing a beneficiary’s name on an insurance policy can have drastic implications for you and your loved ones.
The Supreme Court recently heard oral arguments in one such case. A federal employee named his wife as his beneficiary on his life insurance policy. They got divorced and he remarried two years later but neglected to update his policy. When he died his ex-wife, not his grieving widow, collected the benefits that valued nearly $125,000.
On behalf of Larmore Scarlett, LLP
posted in Estate Administration
on Friday, May 3, 2013
Younger folks in Pennsylvania might assume that they do not need a will if they do not have children or a significant amount of assets. However, a will is one of the most important estate planning tools that anyone over the age of 18 should have to protect their interests. While younger folks may not understand the importance of having a will, older folks with a significant amount of assets usually understand that they will need to create wills and use other estate planning tools, such as a trust, to protect their wealth.
Although older, wealthy individuals may make sure that they at least create a will to address how they would like their personal property and other assets to be distributed after death, the death of a multi-millionaire in New York left many stunned when they realized the man had died without a will. The 97-year-old man, who was a successful real estate developer and Holocaust survivor, died last year. As of last week, the public administrator who is working on settling the man's estate still has not been able to identify any potential heirs.
On behalf of Larmore Scarlett, LLP
posted in Probate Litigation
on Monday, April 22, 2013
Last week we discussed a few basic benefits and drawbacks of having your estate go through probate, a process that transfers a person's property upon death. Probate can be expensive and time-consuming and it often leaves a decedent with less control over his or her property.
We talked about trusts as a tool that can help you keep your assets out of probate. Setting up a living trust can help you determine where those assets go, setting up successor trustees and instructions for what to do with them. But that isn't your only option if you wish to avoid probate.
On behalf of Larmore Scarlett, LLP
posted in Probate Litigation
on Friday, April 12, 2013
If you've been looking into drafting or updating your estate plan, you have likely come across the term "probate." Probate is a court-supervised process that sorts out and transfers a person's property upon their death. Typically the decedent's property is collected after death, certain debts, claims and taxes are paid from the estate, any disputes over assets are settled and eventually the property is distributed.
Probate does offer some benefits if you would like your property transferred in a public forum with court supervision. However, if you want more control over your assets you may wish to avoid probate. The process can be time-consuming, costly and vulnerable to error. In addition the cost of probating your estate may leave less for your heirs.
On behalf of Larmore Scarlett, LLP
posted in Estate Planning
on Tuesday, April 9, 2013
In our most recent post we talked about the federal budget and some of the ways that it might affect estate planning. Some commentators have expressed concerns that the tightening of federal purse strings might shrink the arsenal of estate planning professionals, leaving fewer options for people who want to formulate a useful, comprehensive plan.
Specifically, we talked about proposed restrictions on grantor retained annuity trusts. As the administration tries to close tax "loopholes" they have proposed a requirement that trusts have certain minimum terms, making it more difficult to save on estate and gift taxes.
On behalf of Larmore Scarlett, LLP
posted in Estate Planning
on Saturday, March 30, 2013
Many people have been closely watching the development of the federal budget, keeping an eye on how limited funds and the current financial climate may affect the budget. What many may not have thought of, however, is the implications the budget could have for their estate plans.
Part of the White House's strategy to balance the budget and increase revenue involves closing "tax loopholes." This may include restricting certain estate planning practices and techniques that have previously been available to those crafting their estate plans. Some of these restrictions had been part of federal budget talks for months.
On behalf of Larmore Scarlett, LLP
posted in Estate Planning
on Friday, March 22, 2013
If you are going through or recently finalized a divorce, you've probably seen your share of paperwork and are ready to put the entire exhausting ordeal behind you. However, before you embark on your new life there is one more step you should consider: updating your estate plan.
Typically, your spouse is the major beneficiary in your will or trusts when you die. Unless your divorce was unusually amicable, you probably don't want that to be the case after you split. You may choose instead to leave certain assets to your children, to another relative, a close friend or even a charitable organization that you support. Updating your estate plan is the best way to make sure your wishes are followed.
On behalf of Larmore Scarlett, LLP
posted in Trustees, Executors & Fiduciaries
on Thursday, March 14, 2013
One man's story demonstrates why it is so important to select a responsible and trustworthy person when designating power of attorney. Understanding the details of powers of attorney is also critical.
Knowing he would be unable to take care of his finances during his 10-month prison sentence, this man granted his fiancée power of attorney over his finances. His fiancée did some of the financial tasks he expected she would perform, like paying his bills. However, she did much more with his finances than he anticipated.
On behalf of Larmore Scarlett, LLP
posted in Trust Administration
on Thursday, March 7, 2013
When writing one's will, there are certain details that a person is unlikely to forget. For instance, including financial assets and family heirlooms in a will is not uncommon and is likely on most people's radar. However, there are other important considerations to make when writing one's will or planning how one's estate will be managed.
For many people, their pets are a very important part of the family. However, if pet owners do not clarify what should happen to their pets when they are no longer around, their beloved pets could end up in a shelter or on the street. Taking the time to ensure one's pets will be provided for is important.
