“He said, she said.”

“It’s your word against mine.”

“But he said…”

These commonly said phrases don’t have much ground to stand on, do they?

It’s common that very important things get overlooked when serious actions are taking place. In this article we found, a father and his two daughters were going over financial arrangements for when he dies. One daughter was appointed the signatory of the bank account for bills; whatever money is left over, the two daughters can split.

Now, here’s where “double checking” could have saved A LOT of trouble. After the unfortunate death of their father, the daughter that was not the signatory of the account noticed that the other had actually become the owner of the account…and kept all $100,000 to herself, including reimbursement for the bills out of another asset of the estate. To add on top that “double checking,” there was no will to support what was originally planned.

Read the full article here to see what advice The Moneyologist had to give on this situation!

First and foremost, estate planning should be on everyone’s list of priorities. And yes, even for young adults. It’s always best to be prepared for anything on a scale from the “not-so-bad” to the “absolute worst.”  Either way — think ahead.

Those of you that have remarried: have you thought about readdressing your estate plan (assuming you already have one)? You know… All of your assets, life insurance, pensions, real estate, cars, personal belongings, and debts? Everything that falls under your estate plan can, and inevitably does, go to the wayside when you’re about to walk down the aisle…again. We understand that so much is going on that most people are not thinking of the what ifs from previous marriages, or even the about-to-be new. Like mentioned earlier, be prepared and think ahead.

CNBC published an article that talks about this exact topic: Remarrying? Update Your Estate Plan, and it really broke this all down pretty well. Below is the link.

http://www.cnbc.com/2016/10/14/remarrying-update-your-estate-plan.html

But to sum it up nicely, there are a few things (if not all) in mind while reading it.

John Scroggin, partner of Scroggin and Company of Roswell, Georgia, worded not only how great a bypass trust is, but we believe that it’s fitting for this entire process: “It’s all about protecting from a second, third, or fourth spouse and the divorce issues that can come from that.”

Sarah Michaelson wrote over at Business Insider, “I remember putting money into a 401(k) in my 20s, and retirement was an abstraction: a far-away land that I would reach in another lifetime.”

We see a lot of it among younger workers; the word retirement isn’t in the vocabulary, or if it is, it’s an abstract notion of someday. And long-term investments may not be in the forefront of their financial decisions. And one of these is protection of yourself and those you love, especially as you transition into a family.

As Michael writes: “Think you’re too young? Think this doesn’t matter? Consider this: Everybody has a “default” estate plan at birth, defined by your state’s laws….It is worth the awkwardness to think this through and plan.”

There’s a lot of long-term planning many in their 20s and 30s look to do: 401(k), saving for a house, a wedding, planning for a new child, etc. It’s an exciting time in life, which many new transitions!

But as you enjoy planning what’s to come, don’t neglect to protect what you already have – or see what strategies you can use moving forward to best protect what’s yours. We want the best for you and your family, and are happy to offer the advice you need!

If you’ve done any sort of research about estate planning, you’ve likely come across the term “revocable trust.” It’s a common tactic lawyers such as ourselves recommend to help avoid unnecessary taxes and keep processes simpler upon a person’s passing.

But if you don’t understand what it is, it can be confusing. So here’s a handy explainer:

A trust, on its own, is an agreement that allows a third-party to hold assets on your behalf. What you place in a trust typically avoids probate and gets passed along much faster – and can be done in a way that avoids many costly penalties.

Revocable trusts (also referenced as living trusts) are trusts that can be easily changed. These can have all kinds of items and assets you intend to be passed on to whatever third party you designate.

However, as long as you are considered medically competent, you can revoke the trust at any time – for any reason. It’s handy if there’s a chance of life circumstances changing in your lifetime, or if you may want to change who the third party designee is.

The downside: Typically, you’ll still be taxed on these assets, because they still remain part of your estate until your passing.

Irrevocable trusts differ in several ways, but may not be the ways you would think:

• Once enacted, the assets funded to the trust can be protected from the cost of long term care, or may be able to avoid estate taxes, depending on your goal.
• Our Irrevocable Trusts allow for changes to be made down the road should life changes occur, such as updating successor trustees, or changing distribution patterns.
• They represent a great tactic to avoid certain expenses while preserving your ongoing ability to have a say in how such assets are handled.

Depending on our client’s goal, whether it is simply to organize the estate to ease the burden on a surviving spouse, probate avoidance, or asset protection in dealing with the cost of long term care, our firm will create the most appropriate estate plan. In creating these plans, we may choose to use either a Revocable Trust or an Irrevocable Trust.

South Carolina and Georgia have differing laws when it comes to probate, trusts, and more in estate planning. But as a law firm dedicated solely to the practice and with licensing in both, we’re able to help residents in Aiken, SC and all through the Augusta, GA area decide if a trust is the best option for them. Contact us today!

As the discussion about Medicare and Medicaid continues to go on, TIME recently published an article analyzing a huge burden on the Medicaid system: Nursing home expenses. There can be astronomical figures associated with these needs, too:

Experts estimate that about half of all people turning 65 today will need daily help as they age, either at home or in nursing homes. Such long-term care will cost an average of about $91,000 for men and double that for women, because they live longer.

Thankfully, long-term care planning is something any expert estate planning attorney is well-versed in – so don’t hesitate to read the TIME article, then ask us how we can help!

Long-term insurance policies are focused on issues such as day-to-day living expenses and the assistance some people need to live life to the fullest. It’s not an uncommon policy to find in people’s portfolio, especially as a office devoted to elder car law and estate planning.

However, the industry behind these policies is in trouble, and policyholders are feeling the pressure from it. Kaiser Health News’ Barbara Ostrov wrote about this very issue, as seen on TIME.com. To wit:

But insurers botched just about every aspect of the policies they sold in the early days of the industry, said Joseph Belth, a retired professor of insurance at Indiana University known as one of the insurance industry’s toughest critics.

Another issue is Medicare’s role – or lack of one. Many people assume Medicare will help pay for most of their living expenses upon retirement, and are often shocked to discover a different scenario altogether when it comes time to retire. And that’s another reason long-term care planning has become thornier than it would seem for many Americans.

Read more on this story, and then contact us regarding any questions you have for your long-term planning needs – it’s our specialty, and we’re here to help.

Retirement is a hot topic for all ages. For those younger, it’s often a matter of saving for it or sometimes wondering if it’s a realistic possibility for them. But for those nearing retirement age, it’s a topic that speaks to an entire life change.

The New York Times recently published an article entitled “Of Retirement Age, but Remaining in the Work Force” that features some very interesting stories of people staying in the workforce longer – and showing that it’s a growing trend.

For example:

A recent Pew Research Center analysis of federal employment data lays out the numbers. In May 2000, 12.8 percent of those older than 65 held a job. By this May, the number had climbed substantially, to 18.8 percent.

You can read the full article by clicking here.

Typically, you’ll hear us talk about how much of an impact an estate plan can have for a family. And it’s true: Loved ones go through far less questions, decision-making, and inconvenience with a proper estate plan in place.

The same is true for those who aren’t married – but there are different challenges. In fact, it’s why the Wall Street Journal ran an article with the sub-title reading “It can be more complex than for married couples.”

So what challenges are there?

It starts with beneficiaries. On your insurance policies, retirement plans, etc., you’re usually required to name a beneficiary. This determines who gets the payouts from that account. If you’re single with children, that can make the decision easy (unless they are minors) – but for those without, there are a myriad of options.

Heirs are a similar matter. For those married, it’s nearly always the spouse listed, followed by children, and so on. But the typical line of “who gets your items” changes if you haven’t established a family. If someone has no living relatives, your assets could end up in the state’s coffers.

Establishing a clear directive for who – whether relatives, charities, etc. – receives your wealth is important.

There are also different provisions to make for long-term care and other special situations. Estate planning focuses on making things as easy as possible in bad situations, and we know them all!

Then, the worst-case scenario: What happens if you live alone and someone needs to make decisions for your health?

Without a proper directive in place, there can be situations where distant relatives are left with the responsibility. Take, for example, this Main Street article:

“I just had a client become disabled due to a brain injury,” [Karen] Lee says. “Although he had written a will in 1997, he never had a power of attorney. He was not only single and had no kids, he was an only child. There was no one to help make medical or financial decisions.” Lee says her client’s first cousin stepped up, but had to go to court to get granted conservatorship to make decisions on his behalf. “That took four months. And even after, all decisions had to be made with the court approval. It was a colossal mess,” she says.

So whether you’re single, married, or in whatever stage of life, there is an estate planning solution for you. And as a law firm devoted entirely to the practice, we’ve worked with hundreds of clients from all backgrounds – meaning we understand how to best have your wishes carried out should something tragic occur, but also to help maximize the benefits you leave for your family.

Our men and women who serve our nation at home and abroad face different challenges than the everyday person. And when it comes to estate planning, those in uniform absolutely face challenges – and many of them.

For instance, some soldiers are deployed into active-duty combat, which brings an entirely new set of circumstances for those depending on him/her back home. As Kimberly Lankford notes at Kiplinger, there are special options through the Department of Veterans Affairs available for life insurance.

There’s also special considerations than can be made for beneficiaries should something happen, including immediate access to needed funds – instead of a typical process that is delayed by court proceedings and probate. The job-related risks also highlight the need for an accurate, updated power of attorney document.

Wealth Management also points out some other common issues facing families:

• Often, moving place to place makes it difficult for the significant other to find steady work that provides benefits such as a retirement plan
• Many families are younger, which can present more unknowns when looking to plan for the future
• Members sometimes own property in multiple states

Augusta is unique in that it boasts Fort Gordon and an extensive military history dating back to Revolutionary War times. And with the U.S. Army Cyber Command coming to the area very soon, many more members of our armed forces will be relocating to the Augusta/Fort Gordon area.

And as a law firm dedicated to nothing other than estate planning and serving our community by helping them protect their families, we look forward to helping those who have dedicated their lives to helping our nation.

Prince’s recent passing drew scores of remembrance across the international spectrum. But he clearly ignored his own advice in songs like “Purple Rain”:

I never meant 2 cause you any sorrow

I never meant 2 cause you any pain

I only wanted 2 one time see you laughing

I only wanted 2 see you laughing in the purple rain

His family is likely wondering why he didn’t create an estate plan and not only defer millions of dollars of taxes – but make things much less painful.

As Yahoo Finance notes, “Between the current federal estate tax rate of 40% and an additional 16% from the state of Minnesota, the majority of Prince’s estate is going to the Tax Man. Needless to say, there is much that could have been done to avoid probate and minimize estate tax.”

For an estate valued at over $300 million, that’s a significant chunk of change going to the government – and not Prince’s family. It’s also surprising, as Forbes’ Winnie Sun noted: “Prince had a reputation in the legal world of being very hands on in his legal affairs. He went through numerous lawyers handling his affairs.”

This opens all sorts of paparazzi-level drama possibilities. For instance, he has no heirs listed and his family knows of none, but if someone had some sort of proof they were his child, then that person could be in line to inherit everything.

So, what could he have done differently?

First, actually establishing a plan would have helped his family avoid probate.  This time-consuming process, even if done without conflict between family members, is still painful going through many details. It also brings higher attorney’s fees, because the lawyers must create and submit affidavits, family tree, certificates, and more to the court.

Then, there’s usually months (with South Carolina requiring at least 8 months) for the court-appointed Executor to determine what assets there are. And with someone with many assets like Prince, it will take the Executor plenty of effort to have a complete list, replete with song royalties and much more. A last will and testament still must go through probate, but the specific instructions would speed up the process and also keep many of the assets out of the public eye. And it prevents much of the drama that could occur.

Second, using trusts to designate funds for specific people and purposes could have kept plenty of the $150 million-plus dollars within the family or a cause he cared deeply about. And trusts could have entirely avoided probate. From a revocable trust to special provisions that can be written, much of the money could’ve had instructions attached to take away the guesswork and keep much more of it out of the government’s hands.

You don’t need to own a multi-million dollar estate to warrant an estate plan. A significant percentage of your belongings, no matter the total value, could go to the government upon your passing without a plan in place. And from simple plans to complex, multi-faceted arrangements, we’ve done them all and are ready to help.