Probate is a lengthy and expensive process which on average can take eight to twelve months to complete. The process is expensive. Closing a small estate could cost the estate thousands of dollars in legal fees. Closing a large estate could cost tens of thousands.
Closing a probate can only be accomplished by successfully performing a variety of steps. The court provides little forgiveness for mistakes, which is why the majority of executors hire an estate planning attorney to assist them.
The necessary steps to close a probate include: proving in court the validity of the decedent’s will (if there is one) and being appointed executor of the estate; identifying and inventorying the decedent’s assets; keeping track of expenditures; paying the estate’s debts and taxes; filing a tax return for the decedent; having the property or properties appraised; distributing the assets; filing an account with the court (which means listing any income gained by the estate after the date of death; as well as listing all expenses and estate distributions). … All of which must be completed in a certain order and within a strict time frame.
In addition to the aforementioned, the executor may be responsible to file a notice to creditors in a local newspaper and to post bond.
Without question, the best approach towards probate in most cases is to skip it altogether. This can be accomplished with the use of a valid trust agreement.
However, whether one is in a position where they are leaving assets to heirs, or in a position where they acting as executor with the responsibility of closing a friend or loved one’s estate, the best option always, is to consult a qualified attorney.

What Happens to Digital Content When We Die?

Right or wrong, good or bad, technology has made it possible for us to entertain ourselves every waking moment of every waking day. Whether we choose to “shuffle” through a thousand songs on I-Pod – watch a movie on Vudu.com – or read a novel on Kindle Fire; the benefits of downloadable technology are clear. Downloads provide the ability to store and transport mass quantities of information on singular and relatively small devices.

However, digital download technology has its downsides as well. Namely, that the technology has advanced so quickly laws concerning ownership rights have lagged. Only nineteen states have passed laws dealing with digital assets; and most of the laws only really deal with e-mail and social media accounts like Facebook, Twitter and Google but not with digital content stored on devices like I-Pod, Nook or Kindle.

As a matter of fact, in the absence of laws, most states rely on the terms of service or privacy policies provided by the service that manages the assets; i.e. Apple, Barnes and Noble, Amazon, etc.

Yet, many people own large and extensive collections of downloads. These collections are worth a great deal of money; and so it only makes sense these people would like their collections to be made available to their heirs in the event of death.

Be that as it may, most if not all of the aforementioned user agreements deny the buyer the right to bequeath digital content. The terms of service state the buyer isn’t purchasing digital content, but instead is purchasing a license to use the content. In other words, the license doesn’t give the person the right to transfer content to anyone else, for any reason, ever. So, when the person expires the license expires with them.

As a remedy, some estate planning attorneys have suggested setting up trusts to purchase online content. The thinking is that if the trust owns the content, the contract will not expire with the person. … Of course, these trusts have never been tested.

Nevertheless, it may provide comfort knowing people do legally have the right to bequeath devices containing digital content. They also have the ability to pass along account passwords.

Regardless of how our laws progress, one thing is for certain; technology has provided us the means to keep entertained while we wait and see.

For more information about trusts or other estate planning documents, please contact a qualified estate planning attorney.

Planning for the New Year

The start of a new year is the perfect time to consider reviewing your estate plan.

As the previous year comes to an end, it is only natural to look back and reflect. Was it a good year? Was it a bad year? Usually the answer depends on the events which occurred during the year, and whether the bulk of those events were positive or negative.

For instance, if you were married or remarried, had a child or a grandchild, then yours was probably a great 2016. On the other hand, if you got divorced or lost a family member, yours was probably a horrible year. In either case, the aforementioned events (great or horrible) are significant enough to be reflected in your planning.

Aside from being a major life event, buying a home is another reason to update estate planning. As is, re-financing, or selling a home.

Other occurrences which warrant updating include changes in your health, opening new bank accounts, starting or closing a business.

In addition to reflecting on the events which transpired during the year, you should ask yourself, are you, at this stage in your life, still happy with the choices you made as to who will serve as trustee or executor? Are you still happy with the person chosen to handle your financial affairs should you become incapacitated, and/or the person chosen to make your health care decisions?

If you have young children, are you still happy with the person you chose to serve as their guardian or guardians?

If you are still comfortable with your previous choices, and even if you didn’t experience any major life events, you should still consider taking your plan to your attorney for a review. Your attorney can advise whether there have been any changes in the tax laws since your last update; and if so, whether those changes affect your planning.

The start of a new year is a natural time for looking back and planning ahead. When better to give thought to your estate planning needs?

Alzheimer’s is a horrible disease for which there is no cure. However, working with a qualified estate planning attorney to create a plan while in the early stages of the disease can be empowering.

We can’t stress enough how important it is to see your doctor if you experience any symptoms associated with Alzheimer’s. As long as the effects of Alzheimer’s remain irreversible, early detection coupled with treatment provides the only opportunity to prolong independence. (For more information on symptoms, please refer to our previous article entitled Planning In Case of Dementia).

In regards to Alzheimer’s and estate planning, there are four specific documents which may be of great use.

The first is the trust agreement.

By putting your assets into a trust, you prevent them from being used against you in regards to qualifying for state or federal benefits intended to ease the high cost of care and treatment. Not to mention, a trust protects your estate from recovery cost associated with those benefits. This means you can leave assets to your beneficiaries.

A durable power of attorney allows you the ability to pick someone of your choosing to make decisions on your behalf should you become incapacitated. This person has the ability to pay bills or manage your estate should you be unable to do so.

A health care power of attorney allows you to appoint someone to make medical decisions.

A healthcare directive allows you to choose an agent to make end of life decisions.

An estate plan may not be able to extend life, but it can extend your quality of life.

For more information about wills, trusts or other estate planning documents, please contact a qualified estate planning attorney.