Posts Tagged ‘Will’

Have You Checked Your Beneficiary Designation Lately?

Sunday, July 10th, 2011

I encourage my clients to review their estate planning documents on a regular basis, and an annual checkup seems like something that can be scheduled and easy to remember.

But what about things that aren’t part of the documents that I help to create?  What about your individual IRA?  or your life insurance policy?  or your company retirement plan? or your investment portfolio?

These types of plans are contractual in nature and the contract is between you and the insurance carrier or the plan administrator, or….whomever.

It is also important to make sure that these beneficiaries are up to date.  If the beneficiary is a minor child, do you have the person you want today as the trustee of these funds?  Have the children now become adults and you want them to have access to the funds immediately?  Have you created a trust and just never got around to changing the beneficiary of your insurance so that the funds will go into the trust to be distributed the way you wanted?

One of the biggest problems is selecting a beneficiary and just forgetting about it.  What happens if that person has died before you?  What happens if that person is no longer the one that you want to have access to the funds?  Maybe they got married to someone you hate.  Maybe they ran off to join a commune.  Maybe receiving the funds will make them ineligible (for just a little while) for medicaid benefits they are receiving now?  Maybe…. (fill in the blank).

I had a very personal example of this.  My mother had a life insurance policy that she got when she was working.  Her plan was that we could use her life insurance proceeds to pay for the funeral and then there would be a little left over for each of us (I’m the oldest of 7 children).  We all knew she had the life insurance and we all knew what she wanted us to do with the proceeds, but what we didn’t know was that she hadn’t really named a beneficiary at all.  I know she meant to have the beneficiary set to ‘all of my children equally’, but it never got recorded at the life insurance company.  The funeral home would have taken an assignment of the insurance proceeds, but that assignment had to be signed by all of the named beneficiaries and there were no named beneficiaries!

That meant that we needed to get a certified copy of her divorce papers, and all 7 of us had to sign affidavits that we were indeed her children before we could get access to the funds.  Of course we needed to have this done on the forms provided by the insurance company, which took time.  And somebody had to pay the funeral home right away.  So mom’s plan to use the insurance proceeds to pay for the funeral only ‘kinda’ worked.  One of us had to pay the funeral home and then each of the other 6 had to reimburse the one that paid when they got their one-seventh of the proceeds.

I have a great family and it worked out fine, but I’ve heard lots of examples of where one child has been ‘stuck’ with the entire funeral bill and the others refused to reimburse the sibling that paid the funeral home itself.

Please, take a few minutes and double check your beneficiary designations on all of those ‘contractual’ assets.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

July is Sandwich Generation Month!

Monday, July 4th, 2011

When I hear the word ‘Sandwich’ I tend to think of Peanut-Butter and Jelly, which always brings a smile to my face.

But there is a new way of viewing ‘Sandwich’ that is not so much fun.  That’s the role more of us are playing by being the caregivers of both our parents and our children.

In the grand scheme, this is not really anything new.  Families used to always take care of the generations, often in a single home.  Grandma and Grandpa shared the same home with their children and grandchildren providing wisdom and assistance as the new generation came along, and receiving the attention and care of those in the family as they slowed down in their elder years.

But things changed, especially here in the United States, and families tended to live in their own separate homes with Grandma and Grandpa often living across town or even across the country.  Most of us today can’t imagine even sharing a room with a sister or brother, let alone imagine sharing a home with Grandma or Grandpa.

None of us would consider leaving a two-year old home alone.  After all, the two-year old can’t really get food to eat or make sure they make it to the bathroom on time.  And there are things in the home that could injure the child if they are not used correctly.  The two-year old is also just learning about freedom and self-reliance and if the two-year old refuses to do what we tell them to do for their own good, we can pick them up and put them in their bedroom for a ‘time out’.  The parents get to set the ground rules because a two-year old doesn’t know that it is even possible to stay up past 8:00.

It’s a different story with our aging parents.  They DO know that they can stay up past 8:00, and they’ve done it for years!  Why, they even taught US!  And most of the time, they are too large to pick up and physically move to the bedroom for a ‘time out’ when they get cantankerous.  Unfortunately, our aging parents might also be in the position of not being able to get food for themselves or eating correctly, or making it to the bathroom on time, or using things in the home that can cause injury if not used correctly.

Our parents are living longer and having more health issues, both physical and mental, then previous generations.  I know there was nobody in my family that ever got cancer until my uncle was diagnosed a few years ago.  But nobody in the family had ever lived to be 85 before either.   On my dad’s side of the family, there wasn’t a history of dementia until the family members starting living into their 90′s.

Luckily, there are more and more services available to help us take care of our parents.  These services can take away some of the stress involved in day-to-day chores such as making sure that our parents are eating correctly and being kept clean and safe.  There was a time when babysitters and day-care centers for children were a new concept, even though today we see them as an established institution in our lifestyle.  It appears that there will come a day when adult care givers and adult day-care centers will also become established in our lifestyle.

These services cost money.  But unlike children who have no resources of their own, often our parents will have some resources available to them to help pay for the services needed for their care.

Also, as parents of minor children you have the legal authority to make decisions for your children.  This is not so for your parents.  It is important to have the correct documents in place so that you have the authority to make important and day-to-day decisions for your aging parents.  These include Powers of Attorney and Medical Directives.  You might also want to consider establishing a Trust so that your parent’s assets can be transferred with a minimum of hassle and used for their benefit.

What should you do?  Read…there are a lot of resources available on the web.  Talk to your parents…find out what they want while they are able to tell you.  Talk to people you trust…your doctor, your pastor, your lawyer.  Ask them to recommend services or service providers that they trust.  Unfortunately there are some scams out there that sound good but don’t really offer the right services for your needs.  And most of all, have patience. Remember that these are the people that spent their time raising you, dealing with you when you made mistakes and who helped mold you into who you are today.  Be patient with them, knowing that they are also having difficulty dealing with this role reversal.

If you have any questions about this or any other legal subject, please feel free to give us a call at 757-234-4650 or visit our website at http://www.BeaversLaw.com.

Hampton Office !

Friday, May 20th, 2011

We have just opened a new satellite office to better serve our clients in the Hampton area.

Our Hampton office is in the Peninsula Town Center with an address of:

Kristina Beavers, Attorney at Law

4410 Claiborne Sq, Suite 334

Hampton, VA 23666

You can use the same phone number of 757-234-4650 to access us at either office (don’t you just love technology!)

To learn more about Kristina Beavers, Attorney at Law, check out our website at www.BeaversLaw.com

What is a probate estate?

Thursday, January 13th, 2011

Your Will tells the world how you want to distribute your probate estate.  So, the question becomes ‘What is a probate estate?’

In general, your probate estate consists of anything you own the instant after your death.

Your probate estate does not include life insurance proceeds where the beneficiary of the policy is a person or anything other than ‘the estate of the insured’ because an insurance policy is a contract with the insurance company to pay the proceeds to your beneficiary after your death.  So, the instant after your death, the proceeds now belong to the beneficiary.

Your probate estate does not include property you own with someone else that is titled ‘jointly with right of survivorship’ because ownership of your interest in that property is automatically transferred to the other owner at the instant of your death.

At first glance, it would seem that the best option would be to re-title your assets (e.g., home, bank accounts) to be held jointly with right of survivorship.  However, there are big potential problems with that option that should be considered before you make your final decision.

You should contact an estate planning attorney for more information.

Do I need a Will?

Wednesday, January 5th, 2011

A Will is a written statement signed by you that tells everyone how you want your ‘probate estate’ to be distributed after you die.  It doesn’t mean anything until after you die and you can change the terms of the Will, or even revoke your Will, up until the instant of your death.

If you have no probate estate when you die, then you really don’t need a Will because you have nothing to distribute.

If you die with things in your probate estate and without a will, the law of the state where you die will make the determination of what happens to your things.  In Virginia, the laws distribute the contents of your probate estate to your family members in a manner that the lawmakers decided was most likely to be what the majority of people would want.  This is sort of a ‘default Will’ and you don’t need to do anything to use this process.

However, if you want to make sure that your estate is distributed the way you had planned, then you need to draft a Will.

Contact an estate planning attorney for more information.