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 – Probate
What is the probate process?
Answer #1
In short, Probate involves paperwork and court appearances by lawyers once an individual dies. Probate is the legal process of overseeing the estate of a deceased person by resolving all claims and distributing the deceased person's property in accordance with the valid will. The probate court decides the validity of a testator’s will.
Question #2 – Probate
Is life insurance subject to probate?
Answer #2
No, unless you name your estate as the beneficiary of the policy.
Question #3 – Wills
What is the youngest age at which I can set up a will?
Answer #3
In order to draft a will, the individual must be:
a)At least 18 years old;
b)Of sound mind;
c)Free from duress, coercion; and
d)Able to completely understand the property they own, its value, and who they wish to leave it to upon their death.
Question #4 –Advance Directive
Who should I give copies of my Advance Directive to?
Answer #4
You should provide copies of your Advance Directive to the following interested persons:
1.Designated health care agent;
2.Primary care physician;
3.Hospital or treatment center;
4.Therapist;
5.Any other doctors that you frequent (i.e., oncologist; cardiologist; gynecologist)
6.You may wish to keep a copy of the Advance Directive in your vehicle;
7.You may wish to keep a copy of the Advance Directive in your wallet/purse.
Question #5 – Probate
If I do not have any family, who closes my estate?
Answer #5
Your family does not have to close your estate. You may designate a close friend/colleague or someone that you trust to close your estate.
Question #6 – Probate
What is non-probate property?
Answer #6
Non-probate is property held as Joint Tenants/ or Tenants by the Entireties, or property transferred to a living trust, proceeds of a Life Insurance Policy, money in a pension plan, IRA, 401(k) plan, or other retirement plan, stocks and bonds held in beneficiary forms and money in a payable-on-death bank account.
Question #7 – Wills
What is the difference between a Grantor and a Testator?
Answer #7
A grantor is the title used for the individual who sets up a trust. A testator is the title used for the individual that has written and executed a Last Will and Testament.
Question #8 –Trusts
What is a trust?
Answer #8
A trust is a legal agreement that allows you (the trustor) to transfer property and assets for the benefit of someone else (the beneficiaries). Beneficiaries can be individuals, businesses, or charitable organizations. You place your assets under control of a trustee, an individual or organization that manages and distributes the assets as set out in a trust document specifying your wishes.
Question #9 – Trusts
I am interested in drafting a trust; however, I heard they are relatively complex?
Answer #9
There are roughly eight steps in the process of developing a valid trust document:
1. Decide what type of trust best suits your particular situation. You may already know what you are looking for, but if not, an experience lawyer will be able to help you determine which type of trust would satisfy your goals.
2. Decide what items to leave in the trust. Several types of property may be transferred to a Trust. The following types of property can be effectively transferred to a Trust:
a. Personal property
b. Automobiles
c. Real Estate (Real property)
d. Bank Accounts
e. Registered Stocks & Bonds
f. Life Insurance
g. Retirement Plans
3. Decide who will inherit your trust property.
4. Choose someone to be your successor trustee.
5. Choose someone to manage children's property (if applicable to your situation).
6. Prepare the trust and sign it in front of a notary.
7. Transfer title of property to yourself as trustee.
8. Store your trust document safely.
Question #10 – Wills
Can you cancel your own Will?
Answer #10
Yes, you may revoke your own will. You may revoke by: including a provision in a subsequent will which revokes any prior will, or by burning, canceling, tearing or obliterating your will and any copies of it.
MVP Law Group would like to thank everyone who contributed a question or comment.
Our next “Estate Planning Q & A Forum” is scheduled for Monday, February 13th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Friday, January 27, 2012
Tuesday, January 24, 2012
Next Estate Planning Q&A Forum - Friday, January 27, 2012
MVP Law Group is excited to announce the launch of our “Estate Planning Q & A Forum.” Every other Friday, we will post the 10 most frequently asked questions received during the week from our Facebook/Twitter followers and website visitors. We will answer those questions on our Estate Planning Blog.
Our next “Q & A Forum” will take place Friday, January 27th, 2012. Act now and submit your questions!
Our next “Q & A Forum” will take place Friday, January 27th, 2012. Act now and submit your questions!
Friday, January 13, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Friday, January 13, 2012
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.
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:
Posts (Atom)
