CURIOUS ABOUT ESTATE PLANNING? Be sure to join Attorney Robert W. Haley for a seminar on January 19th! Friday, January 19th, 2023 in Danville at 12:00pm starts our office's return to presenting live, in-person, seminars on a variety of topics for the new year! Certified Elder Law Attorney®, Robert W. Haley will be giving an estate planning seminar on 5 @ 55: Estate Planning Basics that everyone should have in place. This free seminar is being presented through Dan River Church on 2805 Riverside Drive in Danville, VA.
For more information on this seminar, please contact them directly at (434) 582-2020. We hope to see you there! Should you be interested in the possibility of Mr. Haley of giving a seminar at an upcoming event for your business, church or organization this year, give us a call and ask for Mal Rorrer at 855-503-5337 to learn more!
There are a certainly a lot of myths and misconceptions in Estate Planning! Whether at seminars in person, through consults or webinars and even over the phone, we often hear these myths listed below come up quite frequently:
MYTH#1: "Estate planning is only for the rich."
When people hear the word "estate", the automatic association is that of a millionaire, for example, "stately Wayne Manor". This is a popular misconception. Often, people believe that estate planning only benefits the wealthy, but nothing could be further from the truth. This myth is one of the first ones Mr. Haley dispels during his seminars and consultations!
If you own property and assets or have loved ones that depend on you to provide for their income or care, you have an estate and need a plan—regardless of the size of your estate!
Estate planning is something everyone needs to engage in regardless of age, estate size, or marital status. If you have a bank account, investments, a car, home or other property—you have an estate. More importantly, if you have a spouse, minor children, or other dependents, an estate plan is crucial for protecting their interests and their future income needs.
An estate plan can help you accomplish these and other important goals:
MYTH#2: "Estate planning is only about distributing my assets after I’m gone."
Everyone knows that they need a will. But what happens when someone is in a serious accident, is in a coma, or is suffering from dementia or a stroke? Legacy and incapacity planning are two areas of planning that encompass far more than simply managing your assets during or after your lifetime.
Just like your goals, your legacy is unique to you and your family. While it includes important charitable planning goals and gifting strategies, it goes well beyond the monetary aspects to include passing down the values, experiences, hard work and memories that define your life and are important to you and your family in a way that’s meaningful to you.
Incapacity planning helps you prepare for unexpected events at every stage of your life from naming a guardian for your minor children, to who will manage your affairs if you’re no longer able to do so yourself, to the type of care you will you receive and who will oversee your care.
MYTH#3: "A will can oversee the distribution of all of my assets."
A will is a legal document that instructs how your property will be distributed after your death. It allows you to name an executor, who is your personal representative charged with overseeing the distribution of your property and shepherding it through the probate process. Probate is the process that’s required to validate your will and transfer your assets.
However, certain assets may sit outside of your will. These include life insurance policies or qualified retirement accounts (401(k)s, IRAs, etc.) that have a beneficiary designation, as well as assets or accounts with a pay-on-death (POD) or a transfer-on-death (TOD) designation. These assets transfer directly to the named beneficiaries and are not subject to probate. This is why it’s so important to review your account beneficiary designations annually or whenever changes in your life occur. For example, if you divorce and remarry and fail to update the beneficiary designation on your IRA account to your new spouse, your ex-spouse would receive those assets upon your death. Even if your will and/or trust names your current spouse as the beneficiary or co-trustee, since these assets sit outside of your will or a trust, they are not governed by those documents.
In addition to a will, it’s important to work with the right estate attorney to draw up other important legal documents to protect your interests and the interest of your dependents and/or heirs. These include:
MYTH#4: "Once I put a plan in place, I am finished! I don’t need to revisit it later."
Planning is never a “once and done” proposition. Your life, preferences, circumstances and goals change over time, and may be also be impacted by outside influences, such as the financial markets, tax law changes and economic events. What if you marry or divorce, welcome a new child or grandchild, your minor children become adults, you move to another state, or experience the death of a spouse? All of these changes need to be reflected and accounted for in your estate planning. That’s why it’s important to periodically review and update your estate planning documents, including your beneficiary designations and how your various accounts are titled!
If you or a loved one are concerned about issues with situations like this in estate planning and elder law concerns including Asset Protection/Medicaid Planning and questions regarding long-term care and the nursing home, reach out to us! Book a call with us on our website: www.VAElderLaw.com to get started. We have offices in Bassett, Danville and Lynchburg to serve you.