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 – Wills
Is it possible to leave my company or business to someone in my will?
Answer #1
Yes. You should have a provision in your will for your business and should also prepare the necessary Business Succession documents for transfer of your company/business to someone else.
Question #2 – Wills
When do changes to your will become inadmissible?
Answer #2
When a doctor has declared you incapacitated/incompetent; when you no longer understand the nature of your property; when you are no longer of sound mind, etc.
Question #3 – General
Who makes decisions on your behalf if you become incapacitated?
Answer #3
If you have made the necessary preparations prior to your incapacitation, whomever you listed to make those decisions. If you did not prepare for your incapacitation, then your family/friend may have to petition the Court to ultimately make decisions on your behalf.
Question #4 – POA
What is a financial power of attorney? Is it necessary to have one?
Answer #4
A power of attorney is a written instrument executed by one person, called the principal/grantor, which designates another person, called the agent/attorney-in-fact, to perform acts on the principal’s/grantor’s behalf. An executed POA allows your agent to make decisions on your behalf when you are unable to do so on your own.
Question #5 – General
How is joint tenancy different from tenancy by the entirety?
Answer #5
Joint tenancy is a type of ownership of real or personal property held by two or more persons in which each owns an undivided interest in the whole.
Tenancy by the entirety is a type of ownership of real property held by a Husband and Wife where each owns the undivided whole of the property, with the Right of Survivorship, so that upon the death of one, the survivor is entitled to the decedent's share.
Question #6 – General
How do you determine if an estate is taxable?
Answer #6
If your death occurs during a year when the federal estate tax is in effect, then whether your estate will be liable for federal estate taxes will depend on the value of your gross estate, the amount of debt you owe at the time of your death, the total expenses that will be incurred while settling your estate, and any deductions that your estate can take.
Question #7 – General
What is the tax rate for taxable estates?
Answer #7
The federal estate and gift tax rate for deaths in 2011 and 2012 is 35%.
Question #8 – Trusts
Does a living trust ever become public, like a will does when it goes to probate court?
Answer #8
No, a trust is not a public document.
Question #9 – Pour Over Will
If I have a living trust, why would I still need to create a will?
Answer #9
A trust document cannot necessarily cover all of your belongings. Accordingly, a pour over will would be recommended to handle all outstanding assets not covered in the trust.
Question #10 – General
Do all banks have the options to have an account Transfer on Death or make an account Payable on Death?
Answer #10
Yes, all banks should have the options.
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, March 9th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Monday, February 27, 2012
Monday, February 13, 2012
MVP LAW GROUP – Estate Planning Q&A Forum, Monday, February 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 – General
Can I name anyone to become the beneficiaries of my retirement’s accounts?
Answer #1
Generally, yes; however, it does depend upon the type of Retirement account set up, as some restrict beneficiaries to spouses and children. You should carefully consider whom you are listing as a beneficiary, particularly their age and their ability to manage the assets.
Question #2 – General
What are the benefits of having an accounts set up with a “pay on death” for my beneficiaries?
Answer #2
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
Question #3 – General
What type of assets can be held in joint tenancy?
Answer #3
Joint tenancy is a type of ownership in which two or more people share an interest in personal property or real estate.
Question #4 –Wills
Can my 16 year old child be a beneficiary in my will?
Answer #4
Your 16 year old child may be a beneficiary in your will; however, you should have a guardian provision included in your will as well to hold the assets for your child if you die while your 16 year old is still a child. The guardian will hold the assets of your child until your child becomes emancipated under the law.
Question #5 – Wills
If my minor child cannot legally be a beneficiary and I would like to leave them something in my will, who has control over the items left to them until they are legally able to inherit them?
Answer #5
Please see answer to Question #4.
Question #6 – Wills
If I am terminally ill, at what point do admissions and changes to my will become invalid?
Answer #6
It depends. If someone is terminally ill, that does not declare them mentally incompetent so that they cannot make changes to their will. As long as you are over the age of 18, understand the provisions of the will, and understand the disposition of your property in your will, and have not been declared mentally incompetent, you can make changes to your will up until your death.
Question #7 – Advance Directive
What is the purpose of an advance directive?
Answer #7
The purpose of an Advance Directive is to have your health care wishes carried out in your best interest if you are unable to dictate how you want to be treated. The advance directive allows you to make decisions regarding types of treatments and also allows you to appoint a Health Care Agent to carry out your wishes in the event you are unable to do so.
Question #8 – Advance Directive
What is a “durable power of attorney for health care”? Does this role actually have to be fulfilled by my attorney?
Answer #8
In Maryland, we have one document entitled an Advance Directive which combines the medical directive and durable power of attorney for health care. You are allowed to designate a particular person as your power of attorney or ‘Health Care Agent’. Once designated as your health care agent, that person is able to carry out your wishes with regards to health care treatment in the event you are unable to do so.
Question #9 – Advance Directive
If I create an advance directive, will it still be valid if I move out of state?
Answer #9
It depends upon the particular requirements of another state.
Question #10 – Wills
Do I have to have a legal will?
Answer #10
You do not have to have a legal will. Disposing of property both personal and real is entirely optional. If you do not wish to create a will, any belongings both personal and real will be disposed of in accordance with the Intestacy Laws of the state where you lived when you died.
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, February 24th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
Question #1 – General
Can I name anyone to become the beneficiaries of my retirement’s accounts?
Answer #1
Generally, yes; however, it does depend upon the type of Retirement account set up, as some restrict beneficiaries to spouses and children. You should carefully consider whom you are listing as a beneficiary, particularly their age and their ability to manage the assets.
Question #2 – General
What are the benefits of having an accounts set up with a “pay on death” for my beneficiaries?
Answer #2
The beneficiaries of those assets receive their share of the assets immediately, as they do not have to undergo the probate process.
Question #3 – General
What type of assets can be held in joint tenancy?
Answer #3
Joint tenancy is a type of ownership in which two or more people share an interest in personal property or real estate.
Question #4 –Wills
Can my 16 year old child be a beneficiary in my will?
Answer #4
Your 16 year old child may be a beneficiary in your will; however, you should have a guardian provision included in your will as well to hold the assets for your child if you die while your 16 year old is still a child. The guardian will hold the assets of your child until your child becomes emancipated under the law.
Question #5 – Wills
If my minor child cannot legally be a beneficiary and I would like to leave them something in my will, who has control over the items left to them until they are legally able to inherit them?
Answer #5
Please see answer to Question #4.
Question #6 – Wills
If I am terminally ill, at what point do admissions and changes to my will become invalid?
Answer #6
It depends. If someone is terminally ill, that does not declare them mentally incompetent so that they cannot make changes to their will. As long as you are over the age of 18, understand the provisions of the will, and understand the disposition of your property in your will, and have not been declared mentally incompetent, you can make changes to your will up until your death.
Question #7 – Advance Directive
What is the purpose of an advance directive?
Answer #7
The purpose of an Advance Directive is to have your health care wishes carried out in your best interest if you are unable to dictate how you want to be treated. The advance directive allows you to make decisions regarding types of treatments and also allows you to appoint a Health Care Agent to carry out your wishes in the event you are unable to do so.
Question #8 – Advance Directive
What is a “durable power of attorney for health care”? Does this role actually have to be fulfilled by my attorney?
Answer #8
In Maryland, we have one document entitled an Advance Directive which combines the medical directive and durable power of attorney for health care. You are allowed to designate a particular person as your power of attorney or ‘Health Care Agent’. Once designated as your health care agent, that person is able to carry out your wishes with regards to health care treatment in the event you are unable to do so.
Question #9 – Advance Directive
If I create an advance directive, will it still be valid if I move out of state?
Answer #9
It depends upon the particular requirements of another state.
Question #10 – Wills
Do I have to have a legal will?
Answer #10
You do not have to have a legal will. Disposing of property both personal and real is entirely optional. If you do not wish to create a will, any belongings both personal and real will be disposed of in accordance with the Intestacy Laws of the state where you lived when you died.
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, February 24th, 2012!
Please remember to submit your questions/comments on our Website, Facebook or Twitter.
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