Posts

When a Will Isn’t Enough to Avoid Conflict: Remember Your Personal Property

“When the parents are gone, there’s all kinds of unforeseen stuff they leave us with, stuff they never intended.” – Ira Glass, in This American Life, Episode 763: “Left Behind”

If you grew up with siblings, you probably remember some sibling rivalry. That rivalry can continue well into adulthood, especially after the parents are gone. In many families, parents are like the glue that keeps the family together. Once their gone, old issues can resurface, especially when it comes to dividing the parents’ personal property.  That’s why it’s important to have a plan for how you want your personal, sentimental property distributed to the people that you love. If you don’t, that can make an already tough situation so much worse.

This American Life, a popular podcast, recently featured a family with such a story. Eleven adult siblings needed to divide their dead parents’ stuff. But they didn’t all get along. Although their parents (who were both attorneys) had wills, they didn’t list in their will which child would get which items. They left all that to the kids, saying simply, everyone should get an equal amount. So the siblings invented a remarkably elaborate cheat-proof system to divide up the remains of their childhood. In the end, it was a system that played off the siblings’ natural suspicions towards each other and did nothing to bring them closer together after losing their parents.

Here’s a quote from the narrator:

“What they have left to them is just these things, right? And this mandate– to get along well enough one last time to split it up amongst themselves. And they don’t want to screw it up. They want to honor their parents’ last request. But they know it’s going to be tough for them, given how they are sometimes with each other.”

This is an example of incomplete planning that can lead to conflict after you’re gone. If the parents in this story had left a personal property memorandum that referred back to their Wills, that could have reduced the strain on their children, especially the estate’s executor. It would have also saved a lot of time and conflict….and their relationships with each other.

You can listen to this story (16 minute run time) here.

Or you can read the transcript here. 

 

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents, she ensures you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why Myrna offers a 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. Call our office today to schedule a Planning Session. Mention this article to find out how to get this session at no charge. Call us at (813) 514-2946.

Check out another blog post about embracing the emotional side of estate planning. Here

New Year’s Resolution: Tackle that estate plan!

It’s that time of year when many of us are working on our New Year’s resolutions. Whether it’s to eat healthier, get organized or finally clean out the garage, many of our resolutions center around some type of self-improvement. Doesn’t it feel great when you’ve finished that dreaded item on your to do list?

For many folks, estate planning is at the BOTTOM of the to do list. Studies have shown that over 50% of Americans don’t have a Will. Yet 100% of folks would benefit from some type of estate planning!  With an updated, effective estate plan, you can guard against unnecessary heartache, financial hardship and family drama. For example, if your health deteriorates to the point where you’re dying and you can’t communicate your wishes, without any advance medical directives in place, your loved ones have the emotional burden of trying to figure out what medical care you do or don’t want. Moreover, who’s going to be in charge of the decisions? And without an updated Will, can you be sure that your property goes to the right people?

I understand that for many of us, estate planning is uncomfortable, emotional and overwhelming. Who wants to spend time thinking about leaving their loved ones behind? I guide my clients through the process, one step at a time. Let’s tackle this resolution together. Then you can get back to your other resolutions, like cleaning out that garage.

Know the Difference: Wills vs. Trusts

Do you know the differences between “will” and “trust”? Both are useful estate planning devices that serve different purposes, and both can work together to create a complete estate plan.

Will characteristics:

  • A will goes into effect only after you die
  • A will only covers property that is in your name at your death
  • A will passes through a court process called Probate. In Probate, the court oversees the will’s administration and ensures the will is valid and the property gets distributed the way the deceased wanted.
  • Because a will passes through Probate, it’s a public record.
  • A will allows you to name a guardian for children (Note: Our firm recommends that in addition to this, you use a stand alone guardian nomination.)

Trust characteristics:

  • A trust can be used to begin distributing property before death, at death or afterwards.
  • A trust covers only property that has been transferred to the trust. In order for property to be included in a trust, it must be put in the name of the trust.
  • A trust passes property outside of probate, so a court does not need to oversee the process, which can save time and money.
  • A trust remains private Unlike a will, which becomes part of the public record, a trust can remain private.

Consult with a qualified attorney to advise you on how best to use a will and a trust in your estate plan.

This article is a service of the Law Firm of Myrna Serrano Setty, P.A. We don’t just draft documents, we guide our clients to help make things as easy as possible for themselves and their families in case of death or disability.

Call us at (813) 514-2946 today and learn how to get a valuable Planning Session at no cost to you.

 

The Key Differences Between Wills and Trusts

Image result for paperwork

Many people, when they think about estate planning, focus on a will. But wills aren’t the only option, and there’s a lot more to an estate plan than just a will.

Luckily, if you use other tools, such as trusts, you can help keep our loved ones out of court. How do you know whether a will or trust is best for your personal circumstances? The best way is to meet with an attorney for a planning session, to review your goals and needs. From there, you can make the right choice for the people you love.

In the meantime, here are some key differences between wills and trusts:

When they take effect

A will only goes into effect when you die, but a revocable living trust takes effect as soon as it’s signed and your assets are transferred into the name of the trust. A will directs who will receive your property at your death, and a trust specifies how your property will be distributed before your death, at your death, or at a specified time after death. This is what keeps your family out of court if you become incapacitated or die.

Because a will only goes into effect when you die, it doesn’t protect you if you become incapacitated and are no longer able to make decisions about your financial and healthcare needs. If you do become incapacitated, your family will have to petition the court to appoint a conservator or guardian to handle your affairs, which can be expensive, time consuming, and stressful.

However, with a trust, you can appoint someone to manage your medical and financial decisions for you. This helps to keep your family out of court, which is a huge deal during emergencies when decisions have to be made quickly.

What property they cover

A will covers any property solely owned in your name. A will does not cover property co-owned by you with others listed as joint tenants, nor does your will cover assets that pass directly to a beneficiary by contract, such as life insurance.

A trust can cover property that has been transferred, or “funded,” to the trust or where the trust is the named beneficiary of an account or policy. So if an asset hasn’t been properly funded to the trust, it won’t be covered, so it’s critical to work with an attorney who can help you properly fund your trust.

Unfortunately, many lawyers set up trusts, but don’t make sure that assets are properly re-titled or beneficiary designated, and the trust doesn’t work when your family needs it.

Administration

In order for assets in a will to be transferred to a beneficiary, the will must pass through the court process called probate. The court oversees the will’s administration in probate, ensuring your property is distributed according to your wishes, with automatic supervision to handle any disputes.

Because probate is a public proceeding, your will becomes part of the public record upon your death, allowing everyone to see the contents of your estate, who your beneficiaries are, and what they’ll receive.

But trusts don’t have as much court involvement, which saves time and money. And because your trust doesn’t get recorded with the court, its contents stay private.

Cost

Wills and trusts do differ in cost—not only when they’re created, but also when they’re used. Generally, will-based plans are a lot cheaper than trust-based plans. For example, depending on the options you choose, you might spend an average of $1,500 for a will-based plan. With a trust-based plan, depending on the options you choose, you could spend about $4,000 to set it up. But wills have to go through probate, where attorney’s fees and court costs can add up, especially if the will is contested. That can cost a lot more than setting up a trust in the first place. In addition to the financial costs, think of how much time it is spent in administering a will through the probate process.

The probate process in Florida is not a fast process. Your loved ones could have to wait for months before getting permission to access certain accounts, receive their inheritance or get Court permission to sell property. With a properly funded trust, you can save a lot of time.

When you meet with attorney Myrna Serrano Setty, she’ll carefully analyze your assets and help you design an estate plan that offers maximum protection for your family’s particular situation and budget.

This article is a service of attorney Myrna Serrano Setty. Myrna doesn’t just draft documents, she helps her clients make informed and empowered decisions about life and death, for themselves and their loved ones. Contact her firm at (813) 514-2946 to get started.

The Last Will and Testament of a Procrastinator

If you don’t have a Will, the State of Florida has one for you. And you may not like it! It is called intestate succession and the consequences are serious. This is an example.

Last Will and Testament of Paul Procrastinator

I, Paul Procrastinator, a resident of Tampa, Florida, am using the default settings set by my home state of Florida.

Article One: My family consists of my Second Wife and my children from my first marriage. Some of my children are minors and some are grown up with their own families.

Article Two: I direct the Probate Judge to appoint anyone of his or her choosing to administer all property in my name and distribute it under the terms of this Will.

Article Three: I direct that the Administrator pay all my debts, including taxes, probate fees, administrative fees, and attorney’s fees.

Article Four: I leave one-half of my home to my Second Wife and one-half to my children from my first marriage. But my Second Wife can decide if she wants to use the home for her lifetime, and then the home goes to my children after she dies. She only gets 6 months after my death to decide.

Article Five: I leave one-half of my cash to my Second Wife and one-half to my children from my first marriage.  If any of my children are minors, their share will be held by a Guardian. The guardian may be anyone of the Probate Judge’s choosing, even my First Wife.

Article Six:  I will let my Second Wife and my children decide which items of my personal property, such as my boat, my golf clubs, and my great-grandma’s antique jewelry, they should get. They can figure it out.

Article Seven: When each of my minor children reaches age 18, I direct that his share be then paid to him outright, regardless of his financial or emotional maturity.

Article Eight: If my Second Wife does not survive me, I direct that her share be added to my children’s shares. If none of my children survive me, I direct that my home and the rest of my property go to my Second Wife, leaving nothing for my grandchildren.

Article Nine: If I am not survived by my Second Wife or any of my children, I direct the Probate Court to look for my closest blood relatives and divide my estate among them in a way which gives an equal share to them or their descendants. If no relatives are located, I direct that all of my property go to the State.

_____________________________________________________________________________________

Don’t let the state of Florida draft your Will. Don’t accidentally disinherit your children or grandchildren. We can help. Call us today at (813) 514-2946 to get started on your estate plan.