MVP Law Group, P.A. makes available the information and materials in this forum for informational purposes only. The information is general in nature and does not constitute legal advice or any contractual obligations. Further, the use of this site, and the sending or receipt of this information, does not create an attorney-client relationship between us. And, therefore, your communication with us through this forum will not be considered as privileged or confidential.
Question #1 – Health Care Proxy
What does it mean to have a health care proxy? Does it cost any money to obtain one?
Answer #1
A Health Care Proxy is a document that allows a patient to appoint an agent to make health care decisions on the patient’s behalf in the event that the patient is incapable of making such decisions. Once the document is drafted, the patient continues to be allowed to make health care decisions as long as they are still competent to do so. In Maryland, we use a document called an Advance Directive which lays out your health care wishes in the event you are unable to communicate them and appoints an agent to make health care decisions on your behalf.
You can request that an Attorney draft an Advance Directive on your behalf OR you can download an advance directive off of the Maryland Office of the Attorney General website.
Question #2 – Life Insurance
How should I decide how much life insurance to purchase?
Answer #2
There are several considerations: how much will it take to meet your family’s needs; how long your family will need the monetary support; and if any family members suffer from chronic health issues or disabilities. We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #3 – Trusts
What are Qualified Terminable Interest Property (QTIP) Trust and Qualified Personal Residence Trust (QPRT) and how does one qualify for these types of trusts?
Answer #3
A QTIP is the most common type of marital trust. A QTIP allows the grantor to provide for a surviving spouse and maintain control of how the trust's assets are distributed once the surviving spouse has died. It has two principal requirements, namely that the spouse have a “qualifying income interest for life,” and that the decedent’s personal representative elect to treat this type of trust as qualifying for the marital deduction on the death of the first to die. IRC §2056(b)(7).
A QPRT is an irrevocable trust created by the Grantor for the Grantor’s benefit. The Grantor funds the trust by transferring a primary or secondary residence into the trust retaining the continued right to use the residence for the term of the trust. The Grantor must select a term of years that the trust will exist. After the trust ends, the residence will pass to the named trust beneficiaries. The QPRT is a tax strategy for the wealthy.
Question #4 – Will
What type of stuff does a will not cover?
Answer #4
A will cannot cover property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust. A will cannot cover proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan. However, you may on your own change the name of the beneficiary on the forms provided by the insurance agency, financial institution, etc. A will cannot cover stocks and bonds held in beneficiary forms. Additionally, a will cannot cover money in a payable-on-death bank account, as a simple form can be obtained from your bank to change the beneficiary listed.
Question #5 – Life Insurance
What is the difference between term and whole-life insurance?
Answer #5
Term life insurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time.. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the applicant must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.
Whole life insurance is life insurance that remains in force for the insured's whole life and requires (in most cases) premiums to be paid every year into the policy.
We recommend that you speak with an experienced Professional in the Life Insurance business.
Question #6 – Will
If I leave my children out of my will, does that automatically disinherit them?
Answer #6
No; however, you are allowed to disinherit your children. When you disinherit a child you must make sure to mention them by name in the will and say that they should receive nothing; otherwise, there is still potential for them to take something.
Question #7 – Will
At what age should I meet with a lawyer to start planning my will?
Answer #7
It does not necessarily depend upon age, but upon life circumstances. We recommend that when circumstances change you plan for it accordingly in your will. Such as the following situations: marriage; divorce; birth; death; acquiring of a business; dissolution of a business; etc.
Question #8 –Will
Do I need to hire a lawyer to make a legal and binding will?
Answer #8
No. There are many self-help kits on the internet that allow individuals to prepare and plan their own wills; however, certain situations may require the expertise of a licensed professional who has experience in the estate planning process. Additionally, different states have differing requirements in order to make a will valid under the law. It is always better to have the assistance of an experienced attorney to guide you through the challenging process.
Question #9 – Probate
Does the executor of my estate have to be my lawyer?
Answer #9
No; however, the executor of your estate should be someone whom you trust.
Question #10 – Will
Can a will be changed after the person that created it has passed away?
Answer #10
No.
MVP Law Group would like to thank everyone who contributed a question or comment.
Our next “Estate Planning Q & A Forum” is scheduled for Friday, January 27th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment