You Plan for Date Night – But Not for Your Kids Future?!  Marietta Will and Trust Attorney

You Plan for Date Night – But Not for Your Kids Future?! Marietta Will and Trust Attorney

Picture this – you get an opportunity to spend some alone time with your spouse. What do you do to prepare for date night? You carefully select a babysitter. Then, you write detailed instructions; when to feed the baby, how often to change diapers, what snacks are allowed…and you leave a myriad of contact information including your cell phone numbers, the grandparent’s phone numbers, the neighbor’s phone number…you get the idea.

Putting this plan in place takes some time, but it provides you with a great sense of peace knowing that the babysitter you chose will have all that he or she needs to make sure your children are okay during your absence.

Now I’m going to ask you a question. Answer honestly. How much time have you spent planning for your children’s future in the event that you can no longer care for them?

If you are like most parents of young children, I already know the answer. It’s a sad fact that most parents of young children do not have an estate plan in place.  If you think about it, you probably spend more time preparing to go out for a dinner and a movie than you do planning for the potential that you won’t be there to raise them.

I get it. The odds are in your favor. Chances are great that you will live a long, healthy life. But, accidents happen. Even young and healthy people can face the unexpected. You could be temporarily or permanently incapacitated – or worse. If something does happen to one or both parents, it can devastate a child’s world. Even though you can’t plan away the emotional trauma they will suffer, you can put a solid foundation under them that will ensure that they are cared for by the person you choose.

In a way, the process is similar to planning for a date night, but the first step is to select a guardian rather than a babysitter. This person will raise your child, so you should carefully consider who should fill this role. It’s often best to brainstorm with a Marietta will and trust attorney, as he or she can help you consider each person from all angles.

The next step is to make a plan that legally documents your wishes and preferences, including your preferences for your children’s upbringing, what type of education you envision, experiences you wish for them to have, at what age should they inherit money that you leave for them, etc. Again, an experienced Marietta will and trust attorney can help guide you through this process.

Just like having a detailed plan for date night, once your estate plan is in place, you’ll be able to relax and enjoy the peace of mind that your children will have a secure future even if you aren’t there. Call our office at 770-425-6060 today and schedule a Georgia Family Treasures Planning Session to get started.

Soon-to-Be Parents – Here’s One More New Thing to Learn! | Marietta Guardianship Lawyer

Soon-to-Be Parents – Here’s One More New Thing to Learn! | Marietta Guardianship Lawyer

You are pregnant! Congratulations! Your world is about to become brighter and sweeter than you ever imagined. I know that you are in the process of learning a lot of new things. So, as your neighborhood Marietta guardianship lawyer, I’m hoping that in between the baby showers and reading “What to Expect,” you spend a couple of minutes reading this.

You know that you are responsible for raising your child from newborn until, well, forever. You probably have things pretty well mapped out in your mind already. But, I’m going to ask you to think about something you probably haven’t yet…

What would happen to your child if you weren’t there to raise him or her?

I know that is no fun to think about. But this little human is solely relying on you to make sure they are able to navigate life – whether you are there or not. Don’t worry – the statistics are in your favor. Chances are you will never have to execute your plan, but you do need to decide who will raise your child if you can’t and then legally document this choice.

Here are a few things all new parents will need to consider when creating an estate plan:

  • Guardians for your child. Selecting guardians for your children is the most important aspect of estate planning for new parents. By selecting a guardian, you ensure that your child will be raised by the person YOU choose and not a court-appointed guardian. You can also avoid potential legal battles among family members for guardianship.
  • Put your child’s inheritance in trust. Leaving your estate ooutright to a child is never a good idea. Most teenagers and young adults are not financially responsible enough to be entrusted with a large sum of money. By creating a trust, you can ensure that your child will inherit your estate when they reach maturity.
  • Trustees of your child’s inheritance. You will need to select someone to manage your estate while your child is still a minor. Some people select the guardian for this role, but you can select a separate trustee who will work with the guardian to make sure they have access to the funds they need for your child.

As a parent, you will do everything to protect your children. By creating an estate plan now, you can ensure that they will be safe in case you are no longer there. For more information about how estate planning can protect your new bundle of joy, contact our Marietta guardianship lawyers at 770-425-6060.

Cobb County Wills and Trusts Lawyer: How to Handle Underage Beneficiaries

Cobb County Wills and Trusts Lawyer: How to Handle Underage Beneficiaries

Many grandparents wish to leave a legacy behind for their grandchildren; however, they may run into some issues if those children are underage. A Cobb County Wills and Trust lawyer can help you determine what the best options are for leaving assets to underage beneficiaries, whether those assets are held in a Will or Trust, financial accounts, or as part of a life insurance benefit.

Underage Beneficiaries in a Will or Trust

Cobb County Will and Trust lawyers will always ask their clients if any of their beneficiaries are underage, or even if they would like to keep younger beneficiaries from accessing their full inheritance until they’ve reached a certain age, which is often 25. If the children are underage, an adult property guardian must be named since minors are not allowed to own property. If a significant amount of property is left to the minor, a trust should be set up to manage the property until the child comes of age. In fact, trusts can be used to ensure the minor only receives their full inheritance once they reach a certain age or milestone, such as graduating from college, while at the same time providing assets to make sure the child can achieve that milestone. A Marietta Wills and Trusts attorney can speak with you about leaving an inheritance to an underage child and will help you choose the best option for administering the distributions.  

Underage Beneficiaries of Financial Accounts

Many people choose to make beneficiary designations directly on their financial accounts, such as savings accounts, annuities, and retirement plans.  Cobb County Wills and Trusts attorneys urge their clients to carefully examine the details surrounding these beneficiary designations, as minor beneficiaries often cannot directly inherit assets after your passing. It is important to consult with a Cobb County Will and Trust lawyer to determine the best way for your underage beneficiaries to receive the inheritance you leave for them at the time when they can make informed financial decisions on their own. Directing the assets to a Will or trust is often the best bet in these situations, but consulting with an attorney will give you a much better idea of how this should be done.

Underage Beneficiaries on Life Insurance

Many parents and grandparents name their children or grandchildren as beneficiaries on their life insurance policies. As with the cases above though, an adult guardian or a trust must be named in order to hold the life insurance proceeds until the minors come of age. It is generally not advised to name minors as beneficiaries to life insurance policies, as courts will often appoint an adult to look after the proceeds until the child comes of age – and that adult may not be someone you would have wanted appointed to such a role. Speaking with a Cobb County Will and Trust lawyer may help you determine the best way to handle your life insurance beneficiary designations.

If you have any questions about the best ways to leave an inheritance to underage beneficiaries, please contact us at 770-425-6060 or steve@georgiaestateplan.com to set up a complimentary, no obligation Georgia Family Treasures Planning Session.

A gift to help with your New Year’s resolution

Dreamstime_7616564

If one of your New Year’s resolutions this year includes getting your financial and legal affairs in order should something unexpectedly happen to you, I have a gift I think you’ll enjoy.

To be specific, I just put the finishing touches on a free report I wrote entitled, “What You Don’t Know CAN Hurt Your Family: 5 Easy Ways to Make Sure Your Children, Wishes and Assets Stay Protected Should Something Happen to You”.

In this report you’ll learn 5 easy ways to get your legal and financial affairs in order, just in time for the New Year.  You won’t even need the help of an attorney for some of these important steps; simply follow my instructions in the guide and cross each item off of your “to-do” list as you go.

You’ll also discover:

  • How to legally name guardians for your minor children in a way that will hold up in a court of law
  • The difference between a will and a trust, and which tool you really need to make sure your family, wishes and assets stay protected upon your passing.
  • The details about simple document you can use to give someone legal permission to act on your behalf if you were incapacitated in an accident but did not die (…and without this document, no one will be able to help you under the current HIPPA laws!)
  • How to amass your “entire family wealth” and leave a true legacy to your children (hint: you don’t have to be wealthy and it’s easier than you think!)
  • And so much more!

To grab a copy of this report, simply visit http://bit.ly/gNUxIJ.

I’d also like to encourage you to forward this to any of your family or friends who really need to get their affairs in order just in time for the New Year.  I would especially encourage you to reach out to anyone who has minor children, owns their own home, cares for aging parents or is approaching retirement age themselves.

Again, you can get a copy of this free report now by going to http://bit.ly/dGpJM1. 

All my best,

Steve

The Distribution Of Your Inheritance CAN Hurt Your Kids, Reveals Marietta GA Probate Lawyer

The Distribution Of Your Inheritance CAN Hurt Your Kids, Reveals Marietta GA Probate Lawyer

By Steve Worrall, Marietta GA probate lawyer

If you are reading this Atlanta area probate and estate planning blog right now, chances are you concerned about what would happen to your assets, investments and total inheritance when you die.  I am sure like most people, you want to leave an inheritance to your children in a way that’s safe, secure and free from the red-tape of probate.

Yet what most well-intentioned parents fail to understand is that it is the way their inheritance gets passed down to family members that can have detrimental and life-altering consequences—which are far worse than having money tied up in the Georgia probate courts.

For that reason, I want to share some of my knowledge as an Georgia probate lawyer and give you a brief overview of the 4 ways your inheritance can be passed down to your children and how you can ultimately protect your inheritance from impulse spending, divorce, bankruptcy or poor decision making with proper education and a bit of planning:

  1. Outright Distribution:  An outright distribution is just that, mom and dad die and the children receive their inheritance outright, in one lump sum.  Simple, clean, but dangerous.  Statistics show that an inheritance will be gone within 18 months of a child receiving it.  And it does not matter how old the child is or how much the inheritance.  If a child gets divorced or goes bankrupt, the inheritance could be lost.
  2. Convenience Trust:  With this arrangement, the inheritance is distributed to a trust, but the child can withdraw the trust assets at any time and for any reason, just by requesting it.  There may be an independent trustee managing the trust, or the child may be their own trustee or co-trustee.  Since no one can force the child to withdraw the income and principal from the trust, the convenience trust offers some creditor protection, and perhaps a mental barrier to withdrawing the trust’s assets, but not much else.  This also can act as a separate property trust, so that the child’s spouse cannot access the inheritance.
  3. Step-Distribution:  This method is a more commonly used way of leaving money to your heirs.  It’s also known as the “speed-bump” approach.  With this type of distribution, the inheritance flows into a trust, usually with an independent trustee, which is managed and controlled for the child.  At certain intervals in the child’s life, a portion of the trust’s principal is released in a lump sum to the child.  For example, one third of the principal is paid to the child at age 30, one third at 35 and the remainder at 40.  They still have access to income and principal for health, education and other guidelines you structure, but you can leave your children a powerful message with this type of trust – “don’t blow the inheritance!”  The idea is that if they blow it the first time, they may not get any future distributions.  This may act as an incentive to the child to manage their money well, but it still adds little asset protection, and once the principal is gone, it’s out of the bloodline and gone forever.
  4. Lifetime Trust:  This type of trust holds and manages the child’s inheritance for the life of the child.   An independent trustee is usually chosen to manage the trust and many times the child can serve as co-trustee.  Principal and income may be distributed according to various guidelines and incentives that the parent provides in the trust document.  These guidelines act as a spigot or faucet:  adhere to the guidelines and philosophies of the trust and assets will flow; get into trouble and the trustee can turn the spigot off.

Once the child dies, any remaining assets in the trust can pass to the child’s heirs or other individuals or entities.  The lifetime trust provides the most flexible vehicle for values-based legacy planning.  It also provides the greatest degree of asset protection, including protections against divorce, bankruptcy and lawsuits such as malpractice or personal injury.   This is by far the most popular choice of trust arrangements among my clients, as it provides the greatest amount of asset protection and guidance for beneficiaries throughout their lives.

So now that you have read the 4 most common ways to pass an inheritance on to family members, I encourage YOU today to get clear on how you would like your inheritance distributed when you die.  Do you understand the potential consequences of turning your inheritance over to a child not ready for the responsibility? Are you concerned that your money or assets may one day be lost in a messy divorce or bankruptcy proceeding?    Are you simply unsure of the best way to protect your money—and your children—when you die?

If so, I would like to extend the opportunity for you to schedule a Peace of Mind Planning Session ($600 value) at no-charge with our office.  Here a Marietta GA probate lawyer will help you work through such hard questions and ultimately create a rock-solid plan for distributing your assets in a way that aligns with your core values, but also meets your children’s long-term financial needs.

However, we only have 8 such Sessions available each month, so call (770-425-6060) to immediately schedule an appointment with Marietta GA probate lawyer, Steve Worrall before they are all gone!

 

Pin It on Pinterest