Estate Planning

Myths About Estate Planning

/in

Most people understand that it is important to have a Will and a plan for end-of-life healthcare. However, many people, especially younger people, have not actually accomplished any estate planning. There are many reasons why people put off estate planning. Here are some of the more common myths about estate planning and the excuses for procrastination and how to overcome them:

I do not have any assets:

Having an estate plan can help you avoid a lot of the expenses associated with the probate process. Even if you don’t have much wealth to distribute, a good estate plan will make sure those assets go to your heirs and not the court. Also, there are many aspects of estate planning that have little to do with disturbing your wealth. You may want to have a Directive to Physicians or Medical Power of Attorney so others can care for you if you are incapacitated.

I am too young:

Hopefully, you will live a long healthy life, but unfortunately that is not always how things work out. It is important to realize that you will pass away eventually and you don’t know when that could be. It is better to be prepared than to be unprepared.

I’m confused:

With all the options available, beginning the estate planning process can be intimidating. If you work with an attorney, they will be able to help you understand what you need to know and make the process as simple as possible.

It is expensive:

Attorneys’ rates vary, and even the same attorney might charge a different fee for similar work. However, having a plan is almost always cheaper than not having one. Probate can be expensive. A good lawyer might cost up-front but will save you money in the long run.

I do not have enough time:

While it may take a few unpleasant hours in an attorney’s office to get it done, estate planning ultimately saves time. If you pass away without a will, the probate process for those left behind will be much more complicated and difficult. Probate often takes months or even years. A little planning now will save a lot of time for your heirs.

I do not want to think about it: 

This is a tough one. Planning for the end-of-life does involve a lot of difficult and deeply personal decisions. You will have to decide what will happen to everything you have spent your life working for. You will need to choose an executor and appoint someone to have power of attorney. You will need to consider whether you want every effort made to keep you alive or if you would rather pass away than be in a vegetative state. Nobody wants to think about their death, but it is something that is going to happen. Again, it is better to be prepared than unprepared.

Estate planning can be complicated. Take the first step towards putting your affairs in order by calling the attorneys at the De Bruin Law Firm. Our attorneys have the knowledge and understanding you need to help make estate planning as painless as possible.

Debts Of An Estate

/in

Creditors will often attempt to collect on the debts of an estate from the deceased. Sometimes they do have a right to collect and other times they do not. Creditors can be aggressive while trying to collect debt and may pressure you into paying off a debt that you do not necessarily owe. Understanding the law is important so that you can avoid being bullied into paying off debt you do not owe.

When Do I Have To Pay My Loved One’s Debt?

In general, the rule of thumb is that you cannot be held personally responsible for the deceased’s debt. You may be responsible if it is a joint account, or if is your spouse’s debt in a community property state. South Carolina is not a community property state. Further, a creditor may attempt to collect from the estate of the deceased. The creditor has a right to assets before they are passed on to heirs, however, there are some assets that are exempt.  Also, if the assets in the estate do not cover the amount owed, the creditor is out of luck. A creditor cannot collect money beyond what the estate has.

The creditor should talk to the executor regarding any debt owed. If you are the executor, you may want an attorney’s assistance in determining the best way to pay off debt. Otherwise, if you are being contacted by creditors, you have no obligation to respond to them and should refer them to the executor. If you are not an immediate family member or representative of the estate, then the debt collector is forbidden from discussing the debt with you and may be in violation of the law.

Reporting The Death

If you have been appointed as executor, then it is your duty to notify any creditors of the death. It is also important to prevent identity theft by notifying the credit reporting agencies of the death and requesting a credit report. The Social Security Administration is supposed to notify all credit reporting agencies, but it is a good idea to take the responsibility of making sure it has been done. Identity thieves target the accounts of the deceased and notifying credit reporting agencies will help prevent identity theft.

No Personal Liability For Debts

You are not obligated to pay the debts of the deceased from your own assets, generally. If the estate has insufficient funds to cover a debt, the creditors simply do not get the money. Creditors frequently violate the law in their overly aggressive attempts to collect debt. If you are not the executor, they have no right to call you for any reason other than to get the contact information of the executor. If you are being harassed by a debt collector, the best course of action is to send them a letter via certified mail asking them to stop contacting you.

Contact An Attorney

After the death of loved one is a difficult time to handle complicated finances. Harassment from creditors is unwelcome and may even violate the law. If you are the executor of an estate and have been overwhelmed by aggressive creditors, the lawyers of the De Bruin Law Firm can help. You need an estate planning attorney who knows which debts you are and are not obligated to pay.

The Estate Planning Toolbox

/in

The first document that comes to mind for most people when it comes to Estate Planning is the Will. However, there are many other documents and tools that can be used to make sure your estate is handled according to your wishes after you pass away.

WILLS

This is the centerpiece of your Estate Plan. The Will dictates how your assess will be distributed after your death. In your Will, you will name beneficiaries (usually family members) who will receive your assets once you die. You will also name an executor who will be in charge of making sure the assets are distributed in accordance with the Will. You may also name a guardian to look over any children you may have.

Durable Power Of Attorney

Unlike a will, this document is only used while you are still alive. Power of attorney allows a representative you appoint to make decisions on your behalf should you become incapacitated. Generally, two separate power of attorney documents are drafted; one appointing an agent over all financial decisions and one appointing an agent over medical decisions. You are free to choose the same person for both functions. It is important to have someone able to make healthcare decisions for you. If you become incapacitated, you will want someone who has knowledge of your end-of-life wishes to have power of attorney over the decisions that will need to be made.

Living Will

Like a medical power of attorney, this document also outlines your end-of-life wishes. This document is also commonly called a directive to physicians. This document lines out what to do in certain medical situations – Do you always want palliative care? Do you want every measure taken to keep you alive, or would you rather not continue living if you are in a vegetative state? These are difficult and deeply personal questions. Make sure you get to answer them for yourself.

Trusts

There are many types of trusts. Trusts are generally used to avoid estate taxes, but are also quite useful for controlling assets as well. Assets are placed in a trust and then no longer belong to an individual but to the trust itself. The trustee or trustees (usually yourself and your spouse) manages the assets in the trust. In the case of most estate planning trusts, the trust is managed for the benefit of beneficiaries. One common reason trusts are used is to keep money from children until they are older and more responsible. Assets in a trust do not need to go through the probate process as they technically belong to the trust and not the deceased individual.

As you can see, there are many aspects to estate planning that go beyond a simple will. Distributing your assets is only one of the many things that need to be sorted out before you die. Planning for end-of-life can be challenging and confusing. If you need help with drafting a will, creating a trust, or establishing power of attorney, contact the offices of the De Bruin Law Firm today.

The De Bruin Law firm offers a wide range of legal services to clients in Greenville, SC and the surrounding upstate. Our experienced attorneys can help you with legal matters in the areas of business law, criminal law, estate planning, and real estate law.

Our Services

Quick Links

    Contact Us