Posted on May 2, 2024 by admin

As we continue to embrace the digital world, the increase in online scams and cyber threats is an unfortunate reality. These risks impact everyone, including legal professionals who handle sensitive client information. However, with the right precautions, you can protect yourself from these digital dangers. It’s equally important to understand how lawyers safeguard client data against these threats. Let’s explore effective strategies for personal security online and the protective measures legal professionals implement for their clients.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Seven Essential Tips to Shield Yourself from the Dark Side

Confirm Identities: Always verify the identity of anyone requesting your personal details online. Scammers frequently pose as reputable companies. If a message seems suspicious, reach out directly to the company through official channels.
Strengthen Your Passwords: Use long, unique passwords combining letters, numbers, and symbols. Avoid predictable patterns and consider using a password manager to keep track of your different passwords securely.
Be Wary of Links and Attachments: Don’t click on links or download attachments from unfamiliar sources. These can redirect to fraudulent websites or download malware onto your device. If uncertain, it’s safer to avoid engaging.
Update Regularly: Keep your operating systems and applications up to date to protect against vulnerabilities. Use reputable antivirus software to further safeguard your devices.
Educate Yourself on Scams: Familiarize yourself with common scams like phishing. Awareness is your primary defense.
Verify Unsolicited Calls: If contacted by someone claiming to be from a bank or a government agency, or even a relative in crisis, hang up and call back using a number you trust. Establish a family emergency code phrase to confirm identities in urgent situations.
Never Allow Remote Access: Do not grant remote access to your computer unless you initiated contact with a legitimate tech support team yourself. Scammers often impersonate credible businesses to gain access.

What to Do if You Fall Victim to the Dark Side

Despite your best efforts, if you find yourself scammed, act swiftly. Notify your bank or service provider to secure your account if sensitive information was compromised. Change your passwords immediately, ensuring they are robust and unique. Report the incident to help prevent further fraud, whether it’s through local authorities, consumer protection agencies, or online platforms.

In the spirit of “Star Wars Day” (May the Fourth), let’s call these cyber threats the “Dark Side” for a bit of thematic fun.

Rest Assured, Your Legal Guardians are on Watch

At Peaceful Warrior Law, we go beyond merely dispensing legal advice; we serve as lifelong, trusted advisors. If you’ve been impacted by a scam, we’re prepared to help fortify your defenses against future incidents. We specialize in creating robust estate plans that not only secure your data but also safeguard your legacy. If your elderly relatives are without an up-to-date estate plan, we can assist in protecting their assets and information too.

We Can Help

Interested in learning more about how we can help you and your family establish a secure Life & Legacy estate plan? Schedule a complimentary 15-minute consultation with us today.

This blog serves as an educational resource from our Personal Family Lawyer® Firm, ensuring you’re well-informed about crucial decisions for your life and your loved ones. To start organizing your estate or to discuss further how to protect your legacy, please contact our office to arrange a Family Wealth Planning Session.

Note: This content, sourced for educational and informational purposes, should not replace specific legal advice tailored to your circumstances.

Posted on February 6, 2024June 28, 2024 by admin

Table of Contents

Introduction to Estate Planning
Why Estate Planning is Crucial
Components of an Estate Plan
– Wills and Trusts
– Power of Attorney
– Healthcare Directives
– Beneficiary Designations
– Guardianship Designations
Steps to Creating an Estate Plan
Step 1: Understand What Comprises an Estate Plan
Step 2: Inventory Your Assets
Step 3: Identify Your Goals
Step 4: Meet with an Estate Planning Attorney
Step 5: Choose Your Executors and Trustees
Step 6: Review Your Beneficiary Designations
Step 7: Legally Execute Your Estate Planning Documents
Step 8: Safeguard Your Documents
Step 9: Review and Update Regularly
Step 10: Fund Your Trust
Conclusion

Your estate is made up of everything you own, which includes your personal possessions as well as your home, a car, bank accounts, insurance, furniture and more.

But your wealth is much more than just your financial assets. It includes your purposes, passions, family values, memories and stories that make up your personal legacy. Your wealth is the culmination of tangible and intangible pieces of your life that embody who you are and how you would like to be remembered.

Why is putting an estate plan in place important? Well for starters, everyone is going to die. And if you don’t have a proactive plan in place, the state has a default plan set for you. The states plan is more expensive, more time consuming, and less effective at accurately distributing your wealth in the manner that you desire.

The purpose of estate planning is to give you the control over how your estate is distributed to the people or organizations you care about, and to preserve your legacy for the next generation and beyond.

Estate planning is also used for a number of other important things, including:

Providing instructions for your care in case you are unable to do so;
Naming someone to manage your financial affairs if you are unable to do so;
Naming a guardian for your children;
Providing for children or other family members who have special needs in a way that won’t affect government benefits, and protecting loved ones from the “incidents of life” – creditors, predators, and unnecessary taxes;
Providing protection for your assets, both during your lifetime and after;
Minimizing taxes and probate fees;
Planning for retirement and long-term care costs.

How to put an estate plan together?

Step 1: Understand what comprises of an Estate Plan. Estate planning goes beyond just having a will. It also includes:

Wills and Trusts: To direct how your assets should be distributed.
Power of Attorney: To appoint someone to manage your affairs if you’re unable to do so.
Healthcare Directives: To specify your wishes for medical treatment and appoint someone to make decisions on your behalf if you’re incapacitated.
Beneficiary Designations: To ensure your retirement accounts and insurance policies are passed on as intended.
Guardianship Designations: To appoint guardians for minor children, if applicable.

Step 2: Inventory Your Assets. List all of your assets including your real estate, bank accounts, investments, insurance policies, and personal possessions of value. This comprehensive inventory will form the foundation of your estate plan.

Step 3: Identify Your Goals. It is important to consider what you aim to achieve with your estate plan. Is generational wealth a concept that is important to you? Do you want to support a charitable cause? Do you want to make sure that your children don’t burn through their entire inheritance on fancy material items? Your goals will guide the structure of your estate plan.

Step 4: Meet with an Estate Planning Attorney at Peaceful Warrior Law. Estate planning can be complex and the laws not only vary by state, but depending on the types of assets that you own, each asset is governed by a different set of laws. It is best to have your Estate Planning Attorney coordinate with your Financial Advisor and CPA to ensure your plan is legally sound and aligns with your financial goals.

Step 5: Choose Your Executors and Trustees. The people who you select as your Executors and Trustees for your Estate Plan is crucial. Executors are the personal representatives that you select to administer the terms of your will. Trustees are the fiduciary roles you select to make the management, investment, and distribution decisions that are laid out in the terms of your trust. These decisions should not be taken lightly.

Step 6: Review Your Beneficiary Designations. Ensure that your beneficiary designations of your life insurance policies and retirement accounts are up to date with your estate planning goals and that there is no inconsistency. Be very careful when naming minor children as the beneficiary designated on any of these accounts.

Step 7: Meet with Your Estate Planning Attorney to legally execute your Estate Planning Documents. Once you have met with an Estate Planning attorney at Peaceful Warrior Law, you will have created a blueprint for your perfect estate plan, which includes a Living Trust, a Will, Financial Powers of Attorney, Advance Health Care Directives, and Guardian Nominations. You then will go back into the office with your attorney to sign and notarize these documents and discuss what is important in the next steps thereafter.

Step 8: Safeguard Your Documents. Store your estate planning documents in a safe, accessible place. Inform your Executors and Trustees, as well as your close family members about where these documents can be found. Trusts are considered private, and therefore do not get recorded anywhere. Wills become public once the person has died, but it is very important not to lose the original Will that you prepared.

Step 9: Review and Update Regularly. Life changes, such as marraige, divorce, the birth or adoption of a child, changes in the law, and acquisition of new assets — can all necessitate updates to your Estate Plan. It is important to regularly review and update your plan so that your wishes are reflected at the time when you need it.

Step 10: Fund Your Trust. Arguably the most important part of your estate plan is actually retitling your assets into your Trust so your family can avoid probate court. Meet with an estate planning attorney at Peaceful Warrior Law if you need help with how to fund your trust.

Posted on July 31, 2023 by admin

You might think that estate planning is something you can complete one time and then check off your to-do list for good. But the reality is that in order for your estate plan to work for you no matter how your life changes, your plan needs to change with it.

To make sure any big changes in your life are considered in your plan, I recommend reviewing your estate plan with your attorney at least every three years. But if any major life events happen before then, it’s crucial to have your plan reviewed as soon as possible so it can be updated if needed.

Last week, we started to explore 10 life changes that might affect your estate plan. This week, we’re coving five more life events that mean it’s time to review your plan.

06 | You Became Seriously Ill or Injured

A sudden illness or injury can leave you incapacitated and unable to manage your affairs. Therefore, it’s essential to review your estate plan to ensure it includes powers of attorney for healthcare and finances. These documents let you name someone you trust to pay your bills and manage your assets, as well as make medical decisions for you if you can’t speak for yourself.

It’s also important to include healthcare directives that describe what kind of healthcare you want if you become incapacitated. This can include dietary restrictions or preferences, religious beliefs, or limits to certain treatments or life-sustaining measures. By legally documenting your healthcare choices, your power of attorney will feel more comfortable in the role and will be able to make medical decisions for you that align with your wishes.

07 | You Moved Here From Another State

Each state has its own laws and regulations regarding estate planning, so if you moved here from another state after completing your estate plan, it’s crucial to have your plan reviewed by a local attorney. If your existing plan doesn’t meet our state’s requirements for how an estate plan is signed or witnessed, or contains terms or processes that differ from the processes of our state, this can cause delays when your plan needs to be used and may even require a court to review its validity.

Reviewing your plan with a local attorney and making any changes to comply with our laws will make sure that your estate plan can be relied upon at any moment without delay or confusion.

08 | You Got Married

Marriage brings about not only joy and celebration but also important legal updates that are easy to put off. When you tie the knot, your estate plan needs to reflect your new marital status. Some states automatically make your spouse a co-owner of some of your property, but that doesn’t ensure an easy transfer of that property to your spouse when you die. Other states do not make any automatic updates in ownership.

To make sure your assets will go to your new spouse if you die or become incapacitated, it’s essential to update beneficiaries and make arrangements for shared assets. Additionally, you might consider creating provisions to protect your spouse financially and emotionally in the event of your passing.

09 | You Got a Divorce

The end of a marriage is a significant life event that requires immediate attention to your estate plan. After a divorce, you’ll likely need to revoke and redo your entire estate plan. This includes creating a new will and trust, updating beneficiary designations on life insurance and retirement accounts, and revising asset distribution to reflect your new circumstances and relationships.

If you have children from your previous marriage, you may need to revisit guardianship arrangements and provide for their financial needs accordingly.

10 | The Law Changed

Tax laws are subject to change, and revisions to estate tax exemptions can have a substantial impact on your estate plan. If there are significant changes in federal or state estate tax laws, it’s crucial to review your plan with an estate planning attorney to minimize tax burdens and protect your wealth for your loved ones.

Even if you weren’t affected by federal or state estate taxes in the past, changes in federal estate tax law are scheduled for 2026, so now is the time to review whether this change will affect your family’s estate tax filing status. Estate taxes can cost your family tens or even hundreds of thousands of dollars, but these tax liabilities are optional and can be avoided with proper estate planning.

By Your Side Through All of Life’s Changes

Your estate plan serves as the bedrock protecting your family and finances, not just for today but also for the future. However, estate planning isn’t a one-time task – it should adapt and evolve alongside the changes in your life.

My mission is to be by your side through all of life’s changes, ensuring your estate plan remains up-to-date and effective no matter what life brings your way. That’s why I offer my clients a complimentary review of your estate plan every three years, and I encourage you to reach out at (858) 427-0539 any time before then with questions about life changes or events that might affect your plan.

If you’re ready to create an estate plan that protects your loved ones and your legacy, or want your existing plan reviewed, give me a call at (858) 427-0539. I’d be honored to help ensure your family’s well-being for years to come.

Reach out to me at (858) 427-0539 to get started. I can’t wait to hear from you.

This article is a service of Brittany Cohen, Personal Family Lawyer. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session, during which you’ll get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

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858-427-0539

Posted on June 28, 2023June 28, 2024 by admin

How to Benefit from an Estate Plan When You Own Real Estate

Avoiding Probate and Tax Pitfalls in Real Estate Transfers

June 28, 2023

Adding a child’s name to a property deed might seem simple, but it can lead to probate and tax issues. Discover smarter ways to handle real estate in your estate plan.

1. Introduction

2. Understanding Property Ownership Types

Tenants in Common
Joint Tenants with Right of Survivorship

3. Legal Implications of Adding a Child to a Deed

Potential Probate Issues
Medicaid and Medicare Considerations

4. Tax Consequences of Transferring Real Estate

Gift Tax Implications
Example Scenario
Inherited Property and Step-Up in Basis

5. Effective Estate Planning Strategies

Creating a Trust
Consulting with an Estate Planning Attorney
Addressing Government Benefits Concerns

6. Conclusion

Introduction

Many parents believe that by adding a child’s name to a property deed, they can pass along the property outside of probate. Unfortunately, those who act on that belief often find they have invited more problems than they have avoided. Estate planning, particularly when it involves real estate, is a complex process that requires careful consideration to avoid pitfalls such as probate complications and adverse tax consequences. This guide will explore various aspects of estate planning for real estate owners, providing insights into ownership types, legal implications, tax consequences, and effective strategies to safeguard your property and legacy.

Understanding Property Ownership Types

Tenants in Common

When more than one person owns property together and they are not married, the property is often held as tenants in common. This type of ownership means that each owner has an individual, divisible interest in the property. If one owner dies, their share of the property does not automatically transfer to the surviving owners but goes to the deceased owner’s heirs through probate. This can lead to unwanted complications and delays.

Joint Tenants with Right of Survivorship

An alternative to tenants in common is joint tenancy with the right of survivorship. This arrangement means that if one owner dies, their share of the property automatically transfers to the surviving owners, bypassing probate. This designation must be explicitly stated in the deed to ensure that the property is handled according to the owners’ wishes. Seeking legal advice to set up this type of ownership can help prevent probate and ensure a smoother transition of property ownership.

Legal Implications of Adding a Child to a Deed

Probate Complications

Adding a child’s name to a property deed with the intent to avoid probate can inadvertently cause more problems. If the deed does not explicitly state joint tenancy with right of survivorship, the property will still go through probate upon the death of one owner. This process can be time-consuming and costly, defeating the original purpose of avoiding probate.

Medicaid and Medicare Considerations

Tax Consequences of Transferring Real Estate

Gift Tax Implications

When real estate is transferred as a gift by adding a child’s name to the deed, it is subject to gift tax rules. The IRS considers this a taxable event, and the original cost basis of the property (what you paid for it) transfers to the new owner. This can result in significant capital gains tax when the property is eventually sold.

Example Scenario:

Consider a home purchased for $50,000 that is now worth $350,000. If you add your children to the deed and they sell the home after your death, they will be taxed on the difference between the original cost basis ($50,000) and the sale price ($350,000), resulting in a taxable gain of $300,000. This substantial tax burden can be avoided with proper estate planning.

Inherited Property and Step-Up in Basis

If your children inherit the property through a will instead, they benefit from a step-up in basis. This means the property’s value at the time of inheritance becomes the new cost basis. Using the same example, if the property is worth $350,000 at the time of inheritance, and the children sell it for that amount, there will be no taxable gain. This strategy can significantly reduce the tax burden on your heirs.

Effective Estate Planning Strategies

Creating a Trust

One of the most effective ways to avoid probate and minimize taxes is to create a trust. By transferring real estate into a trust and naming your children as beneficiaries, you can ensure the property passes outside of probate in a tax-advantaged way. Trusts offer flexibility and control over how and when your assets are distributed, providing peace of mind and protection for your heirs.

Consulting with an Estate Planning Attorney

Given the complexities of estate planning, it is advisable to consult with an experienced estate planning attorney. They can help you navigate the various legal and tax implications, ensuring your estate plan aligns with your goals and protects your assets. An attorney can also coordinate with financial advisors and tax professionals to create a comprehensive plan that meets all your needs.

Addressing Government Benefits Concerns

For those concerned about the potential impact of Medicaid or Medicare on their property, specialized estate planning strategies are available. An attorney can help structure your estate to protect your home from being taken to cover medical bills. This might include setting up irrevocable trusts or other legal mechanisms designed to shield your assets while still qualifying for benefits.

Conclusion

Effective estate planning is crucial for real estate owners who want to avoid probate, minimize taxes, and protect their property from potential government claims. By understanding the different types of property ownership, the legal implications of adding a child to a deed, and the tax consequences of transferring real estate, you can make informed decisions that benefit your heirs and preserve your legacy. Consulting with an estate planning attorney and utilizing tools such as trusts can provide additional security and peace of mind.

About Attorney Brittany Cohen

This article is a service of Brittany Cohen, Esq., Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

By integrating the knowledge of historic preservation, local events, health and wellness, arts and culture, and home design, we ensure your estate plan not only protects your financial assets but also preserves the rich tapestry of your life and legacy. Whether you’re passionate about architecture or community engagement, our holistic approach to estate planning will reflect your unique values and aspirations.

Tag: estate plan update