Tag Archive for: Creating a Will

10 Common Estate Planning Mistakes and How to Avoid Them

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Every year more than 3.3 million people die in the United States. The death of a loved one can be an incredibly difficult time for their friends and family.

However, a lot of people are surprised by the amount of practical admin involved when a loved one dies. Making a plan for your estate before your death can help to ease this burden for your loved ones. It will also ensure that you can provide them with financial stability after your death.

That said, common estate planning mistakes can make things much more complicated for your loved ones after you die. So it is important to avoid these when creating an estate plan.

Not sure which mistakes to look out for? Then you’re in the right place. Read on to find out ten common estate planning mistakes and how to avoid them.

1. Forgetting to Make an Estate Plan

Only 33% of people in America have a comprehensive estate plan in place for when they die. So if you haven’t put your plan together yet, you’re in good company! Now is a good time to change this.

An estate plan lets you control what happens to your belongings after you die. This might include:

  • Leaving the family home to your spouse
  • Creating financial trusts for your children
  • Making charitable donations
  • Outlining who will be in charge of your business after you die

If you do not have an estate plan in place, this leaves room for a lot of legal disputes after your death. While family (and particularly spouses) usually take legal priority, others can dispute this. This could make life very hard and uncertain for the loved ones that you leave behind.

Fortunately, you can stop this from happening – even a basic estate plan is better than no plan at all. Your loved ones will be able to use this as evidence of your wishes. So make sure you get this down in writing and have it witnessed by a legal professional.

2. Not Updating Your Estate Plans Regularly

A lot of people make their first will when they take out life insurance, start making money, or have their first child. However, life can change a lot so it is important to update your will regularly.

For example, you may:

  • Have acquired different types of assets, such as a business or life insurance policy, that you need to account for in your will
  • Have got divorced and want to adjust the role of your ex in your will
  • Want to add or change beneficiaries
  • Decide to include contingent beneficiaries as you get older

Reviewing and updating your will ensures that it reflects your most recent wishes and covers all of your assets.

Loved ones, such as your children or spouse, are allowed to dispute an estate plan after your death. This is easier to do if your estate plan is very out-of-date. The person disputing your will could, for example, say that it doesn’t reflect your most recent wishes.

Updating your estate plan will make it harder for people to do this. This can make the administration of your estate much easier for your loved ones.

3. Not Giving Someone Power of Attorney

When making an estate plan, a lot of people focus on what will happen to their assets after they die. However, this means that they overlook other important things, such as giving someone power of attorney.

Power of attorney legally authorizes a person (or several people) to act on your behalf if you become incapacitated. For example, this may happen if you have an accident that leaves you in a coma or unable to communicate.

You can give someone power of attorney in two areas: financial decisions and health care decisions.

Without power of attorney, your loved ones may struggle to act on your behalf. They may also not legally be allowed to make decisions about your finances and healthcare.

Giving one or more people the power of attorney makes it easier for them to manage your estate. This also allows you to pick who you want to represent your interests if you are incapacitated.

4. Forgetting to Factor in Retirement Costs

Most people will make an estate plan while they are working but your financial situation can change a lot after retirement. Failing to factor in your retirement costs could leave your loved ones with a lot less financial support after your death.

Fortunately, it is easy to avoid this common estate planning mistake with some basic planning. You will need to look at:

  • Nursing home costs
  • The cost of at-home care
  • How much you need to spend before you qualify for Medicare funding

This will help you make informed decisions about your spending during retirement. It can also help you figure out how much you need to save to qualify for Medicare without bankrupting your spouse.

5. Signing Over the Deed to Your Home

Good estate planning can save your loved ones money on inheritance taxes.

However, one of the biggest mistakes people make is signing over the deed to their home before they die. This might involve signing your home over to your spouse or your children, for example.

This is a bad idea for multiple reasons. Firstly, it means that you no longer have legal control of your own home while you are still alive. So if the new owner wants to kick you out and sell it, there is nothing you can do!

Giving your child or spouse the title of your home is also seen as a taxable gift. This means that you won’t save them any money by putting their name on the deed.

Instead, you should speak to your estate planning lawyer about tax-free ways to pass on your assets.

6. Choosing the Wrong Person to Handle Your Estate

When making an estate plan you will have to choose estate plan beneficiaries. These are the people who will inherit your assets.

However, you also need to appoint someone to be the executor of your estate. They will oversee the probate process.

A lot of people choose their spouse or a close relative to be the executor of their estate. This can be a big responsibility for someone who is also grieving. They will have to handle complex financial, legal, and tax proceedings.

An experienced estate lawyer will be able to help you choose the right executor for your estate. So it is a good idea to discuss this with them while you are creating an estate plan.

7. Not Making Non-Taxable Gifts Before Your Death

If you have a lot of assets to pass on to your loved ones this can become very expensive for them. They will have to pay inheritance tax on the majority of your assets.

You can save them money by gifting certain assets before your death. For example, you make an estate tax-free gift of up to $15,000 per year to your spouse. This can significantly ease the burden of inheritance tax for your loved ones when you do die.

8. Forgetting to Transfer Your Insurance Policy to a Life Insurance Trust

Speaking of inheritance tax, you can save your loved ones money by putting certain assets into trusts and retirement plans. Your life insurance policy is a significant asset and will be included in your estate taxes after your death.

However, you can transfer this to a life insurance trust. This makes the proceeds of your policy tax-free as they are not directly owned by you.

The trust will then pay out your policy to your loved ones. So they will still see the financial benefits of your life insurance policy.

9. Thinking That You Do Not Need to Make an Estate Plan

If you don’t have a lot of money in the bank you might think an estate plan is unnecessary. However, an estate plan isn’t just about your finances.

You can also use this to:

  • Appoint someone to make medical decisions on your behalf
  • Give a business partner power of attorney while you are out of the country
  • Name a guardian for your children

So, if you want to have control of who makes decisions on your behalf, it is a good idea to create an estate plan sooner rather than later.

10. Creating an Estate Plan Without Expert Help

Estate planning isn’t as simple as drawing up a will and naming beneficiaries. Probate is a complex legal process and having a thorough plan in place will make this smoother for your loved ones.

Because of this, it is a good idea to speak to an estate planning lawyer about your assets. They will teach you about:

  • Strategies for reducing inheritance tax
  • Different state inheritance laws
  • Proposed changes in tax law that could affect your will

They will also ensure that your estate plan is strong enough to counter legal challenges. So even if you already have a do-it-yourself plan in place, it is a good idea to review this with an experienced estate lawyer.

Get Help Avoiding These Common Estate Planning Mistakes Today

As you can see, drawing up an estate plan isn’t as simple as making a will. How you distribute your assets will have a big impact on how much tax your loved ones have to pay. So the more detailed your estate plan is, the easier life will be for your loved ones after your death.

Do you feel ready to put together your estate plan and want help avoiding common estate planning mistakes? Then get in touch with De Bruin today. Our experts in estate planning will be happy to help.

Estate Planning 101: The Different Types of Wills

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Let’s be honest; no one likes to talk about their last wishes when they pass away. Unfortunately, this is a conversation everyone should have with their family members to ensure their assets are transferred to their designated beneficiaries without any issues.

Several types of wills are available that work best for specific situations and others that may not fit your needs. To learn more about these different wills and how they can benefit you and your family, continue reading below. We will cover all you need to know about these different types of wills and who you can contact for more information.

Simple Will

Of all the different types of wills, this one is relatively straightforward. With a simple will, you can list who receives your assets and who will be the guardian over your children if you pass away prematurely.

With this type of will, you can declare:

  • How do you want to give away your assets
  • Who receives what kind of asset
  • Who will be the listed executor of your estate

If you have a complicated estate where you own a business or your estate will be heavily taxed, you should opt for a different type of will.

Other situations where you should not use a simple will:

  • You want to leave land to your children or another family member
  • You have children from a previous marriage
  • You need to set up a special needs trust
  • You have reason to believe someone will challenge your will

When in doubt, you can reach out to a reputable estate planning attorney to help you figure out which types of wills work best for your situation.

Testamentary Trust Will

A testamentary will is a trust you place certain assets into for your benefit. A named trustee will handle the trust on your behalf when you pass away. This is an excellent option if you have beneficiaries that are minors or who are people you don’t want to inherit and handle on their own.

This type of will allows you to place conditions on how your beneficiaries receive the assets. For example, you can put instructions to release a certain amount of money or a particular asset to become available when a child graduates college or when someone gets married.

Living Will

A living will isn’t an actual will; instead, it is a statement of your last wishes. This living will covers how you wish to be medically cared for and if the hospital can or cannot use any life-saving measures. For example, if you were to go into a vegetative state, would you want the staff to keep you alive via machines, or would you want them to take you off life support.

Having a living will in place takes the health-care decision burden off of your family. If you want to ensure that your medical-related wishes are honored, you should make sure to have a living will put in place.

Holographic Wills

Holographic wills aren’t the sci-fi floating document you may be picturing right now. Instead, these wills are entirely written in your handwriting, and the witness and notary requirements that come with wills are less stringent than a holographic will.

The main issue with these types of wills is they are more ambiguous. This means it can cause problems with your beneficiaries as they may have different opinions regarding your final wishes. One beneficiary may think you mean one thing, whereas another can interpret your wishes as something else.

Joint Wills

A husband and a wife typically create joint wills. For example, one spouse may agree to leave the entire estate to the other if one of them were to pass away before the other.

These wills were a bit more common back in the day because they saved a lot of time and money, but times have changed. The surviving spouse can’t change a joint will without the other spouse’s permission. So if you were to remarry, the assets in the joint will can’t and won’t transfer to your stepchild in your new relationship.

Oral Wills

Oral wills are, as the name implies, a will spoken verbally to one or more witnesses. Most states don’t recognize these types of wills because they aren’t concrete and are hard to decipher correctly. Generally, they aren’t acceptable unless the will is spoken while you’re on your deathbed.

Will vs. Trust

Trusts and wills are both excellent tools used for estate planning, but one only works during a significant life event, whereas you can use the other while alive. Wills and trusts are both set up while you are alive, but wills only kick into effect when you pass away. A trust can be used during your life or go into effect when you pass away.

Different Types of Trusts

Just like there are several different types of wills available for you to use, there are other trusts that you can use. For example, you can use an irrevocable trust to protect your assets from creditors. With an irrevocable trust, you give up your ownership rights to assets when you transfer them. A trustee manages these types of trusts.

Special Needs Trust

As mentioned earlier, if you need a special needs trust, you won’t be able to list your wishes in a simple will. If you are concerned about the financial need of a beneficiary with a disability, you can create a special needs trust.

These legal arrangements enable your beneficiaries to receive financial support from the trust without jeopardizing their state or federal public assistance program eligibility. You should contact a reputable estate planning attorney if you need a special needs trust. The last thing you need is for your loved one to lose access to supplemental security income or other federal benefits because the trust affects their income.

What Happens if You Die without a Will?

If you die without a will, the distribution of your assets and property must go through probate. The state handles this process. In general, the court must declare someone as the executor of your estate before they can handle sorting through your debts and assets.

In general, the court allows a portion of your estate to go to your surviving spouse, and they will divide the remaining assets amongst your children if you have any. The court does not take in any factors that may influence it to divide the assets unequally. For example, if you don’t want one child to receive something, the court won’t know that. They will treat all your heirs as equals.

So if you have specific assets that you wish to go to one particular person, you should create a will. This will lessen the burden that your family has to go through with probate court. Depending on the size of your estate, it could take months, if not years, for the probate process to complete.

How to Create a Will or a Trust

If you wish to create a will or a trust, you can do so without the need of an attorney, but that is not recommended. There are specific tax considerations and laws that you must keep in mind when creating these types of documents.

The last thing you want is to create a will online that does not have the proper protection or clear intentions. When you pass away, if the will is not direct on your last wishes, your beneficiaries are left to try to interpret your wishes.

Estate Planning Attorney

If you want to ensure your last wishes are honored and well understood, it would be best if you reached out to an attorney to create the document on your behalf. You may be tempted to pay the small fee online to file your paperwork, but if there are any discrepancies or mistakes made, it will cause problems down the road. Partnering with an estate planning attorney will ensure you have honored all your last wishes.

Help with Different Types of Wills

Making sure that your last wishes are honored is a big deal to your family, so it is best that you get a will that clearly states what you want to happen you pass away.

Whether you need help creating your living will or a simple will, reputable attorneys can help you navigate the different types of wills. If you are ready to create your will or you have questions about what option is best for you and your situation, contact us.

What Are Nonprobate Assets?

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Whether you are planning your estate or you are the executor of someone else’s estate, it is crucial that you understand the difference between probate and nonprobate assets. Nonprobate assets are essentially assets that do not have to go through probate upon the death of the estate owner. This term often confuses people, but it is actually rather simple. These assets are those that immediately transfer at the time of death, and are not an asset of the estate. Common nonprobate assets include:

Life Insurance

If there is a beneficiary listed properly on the life insurance policy, the proceeds will not go through the probate, but will go directly to the beneficiary. Life insurance is a wise decision if you have dependents who rely on your income, because they will receive the money from the policy quicker. However, you must make sure that the beneficiary designations are always accurate, or the proceeds will automatically go to the estate, and will be subject to taxes, creditors, and probate fees.

Retirement Accounts

If you name a beneficiary to your retirement account, they are automatically entitled to the account’s assets at the time of your death. Just like life insurance, however, you must make sure that your beneficiary is accurate, or they face the same dilemma. Be sure to consider your retirement accounts when discussing your assets with your estate planning attorney.

Payable On Death (POD) Accounts

Transferring most of your money to a POD account is a good strategy for ensuring your family receives the funds as soon as possible without being subject to extra fees. However, it is wise to still make sure your estate has some cash to cover funeral costs and other expenses.

Jointly Held Property

If you own property that is jointly held, you can set up your estate so that after your death, the interest is automatically given to the other owner (or owners). This is an advantageous if you have jointly held property with a spouse or one of your children, but it can be tricky with divorces or multiple children, so be sure to consult with a real estate attorney about this issue.

Trust Assets

If your assets are transferred to a trust before your death, it is a nonprobate asset. This is because assets in a trust are controlled by the trust, not the recently deceased, and therefore, do not need probate.

Given the difference between probate and nonprobate assets, it is clear that it is important to regularly estate plan to ensure that after you pass, your family will have access to the funds they need. Keep your affairs in order by regularly updating your will to accommodate any major life changes, including an employment change, a divorce, the birth of a child, the death of a beneficiary, and the purchase of property. When you need an estate planning lawyer in South Carolina, The De Bruin Law Firm has estate planning lawyers who may be able to help. Contact us today.

Changing A Will

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Your circumstances and those of your family will change over time – in fact, it would be odd if your situation and circumstances did not change. A new job or loss of a job, a divorce, a new child – all of these things require adjustments in your family’s budget, your living arrangements, and your estate plan. Changing your estate plan does not need to be a time-consuming and tedious process; in fact, if there are only a few minor changes to be made to your existing will, oftentimes these changes can be accomplished through the use of a codicil or written amendment.

Even though a codicil is a less-expensive and quicker way to change a will than simply creating a new will from scratch, you will still want to be aware of a few issues that can arise if your codicil is not properly prepared, executed, and/or stored.

Your Codicil Does Not Replace Your Will

 You must remember that a codicil is simply an amendment to an existing will – it does not replace a will you have already created. Therefore, it is important that you keep your codicil together with your will in the same location. If your executor or administrator cannot find your codicil, the terms of your will are likely to be enforced as written. Conversely, if your executor or administrator cannot find your original will, the executor or administrator may know all of the instructions you have for the handling of your estate. Therefore, once you have created a codicil, make sure to keep it in a secure location with your will. You should also inform your executor or administrator that you have created a codicil and where it and your will can be found.

You Must Clearly Indicate the Changes You Wish to Make to Your Will

 In order to be effective, your codicil must clearly indicate the changes you are attempting to make to your will. A codicil that is ambiguous or unclear may be disregarded by a probate court. Your codicil should specify the precise term of your will you are changing and reference where in your will this term can be found. The codicil should then clearly and unequivocally state that you are changing this term and how you are changing it.

 You Must Generally Comply with the Same Formalities Required to Execute a Will

 Your codicil must generally be executed in the same manner as your will. A codicil that is not so executed may (again) be disregarded by a probate court if its admission is challenged.

The De Bruin Law Firm is a South Carolina estate planning firm that can assist you in crafting and amending an estate plan to provide for your children as your family grows and its situation changes. If you have recently acquired a new asset or had a new addition to your family, come see us right away. We will help ensure that your estate plan accurately reflects the wishes and desires you have for your estate and your family if you were to unexpectedly pass away. Contact the attorneys at the De Bruin Law Firm today by phone or by using our firm’s online contact form.

The attorneys at the De Bruin Law Firm understand that estate matters are emotional and stressful. We are available to provide objective advice and guidance to our clients. To schedule a free consultation, call 864-982-5930 or use the link below.

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The attorneys at the De Bruin Law Firm understand that Estate Matters can be difficult to understand and plan for. We are available to provide our clients advice and guidance during the Estate Planning Process. To view common fees associated with an Estate Plan please call us at 864-982-5930 or use the link below to view some of our common Estate Planning Fees.

5 Key Benefits To Establishing Trusts

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Most people grow up hearing about trust fund babies or thinking that a trust is only for individuals who are rich. This is simply not the case. Establishing trusts can benefit many different people during life and after passing. The way a trust is established can provide many positive features that aren’t involved in a regular estate inheritance. Working with an estate attorney can help you to decide which estate planning options are best for you. Consider these six benefits to establishing a trust with your finances for now or later on.

Avoid Probate

First, what is probate? Probate is a process by which a judge rules on the validity of a will. This means that after a person passes, a will can be contested. Unlike a will, a trust is less likely to be contested. Therefore, expensive legal fees and delays in the execution of the estate can be avoided. This allows you to make changes and amendments to your estate trust when you’re alive, but after passing the trust acts as a will and allows the trustee to execute final wishes while bypassing the probate courts.

Regulated Distribution

There are sometimes concerns about how an individual may utilize inherited finances. The way in which regulations can be set with a trust may be beneficial. As a grantor of a trust, there can be regulations where the money is distributed in even, small increments, or it may have restrictions based on age or any number of factors. This may put your mind at ease on how the beneficiaries use the money for years to come.

Charitable Trusts

Not everyone who works with an estate attorney or establishes a trust has children as the beneficiaries. In fact, charitable trusts are a great use for individuals who don’t wish their financial assets to go to distinct individuals. Charitable trusts allow grantors to have set money designated towards a charity of choosing during the life of the trust. These, again, can be distributed after passing in one lump sum, or the trust can exist like a living trust that distributes money in a regulated manner.

Taxes

In addition to avoiding probate, trusts help reduce tax liability when money is transferred from the grantor to the beneficiaries or trustee. Assets placed into a trust a less likely to incur taxes. There are specific restrictions and rules that apply to what is taxable and nontaxable with a trust. According to HowStuffWorks.com, “A trust can provide a way to avoid or reduce estate taxes because assets and property placed into a trust are not subject to these taxes. For example, with a children’s trust, a grantor can make tax-free monetary gifts from an estate to children or grandchildren” up to the annual exclusion amount.

Privacy

A unique benefit of established trust funds is privacy. The probate process is fully open to the public. However, when individuals choose to bypass the probate process with a trust, the passing of assets can remain private. This means that beneficiaries will not receive public scrutiny or company scrutiny. In fact, assets can remain private even among family members, reducing fighting and remain contest-resistant.

4 Questions To Consider When Creating A Will

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Making the decision to start estate planning by creating a Will is a very personal decision. Along with it being a personal decision it should also be a timely decision. No one wants to think about what could happen in the future. We’re all going to live to be 100 years-old right? Unfortunately, it’s important to start the process of creating a Will earlier in life so that you’re sure your affairs would be in order if something unexpected happens. Once you have decided to start the process of estate planning, there are several questions you should ask yourself as you work with an estate planning lawyer. Consider these topics as you work through the process.

Should I Have A Living Will As Well?

A will is a document intended to express your wishes after you pass. This includes everything from what happens to children, to who inherits property, and what happens with your finances. A living will is intended for times when you may still be alive but unable to make decisions concerning your care. If you have strong feelings about whether or not you want to be put on a ventilator, or if you know you’re going to have a medical procedure that involves anesthesia, a living will would be an important document to have so that your wishes are known. A living will is a document that compliments a standard will.

How Does This Affect My Children?

The purpose of creating a will is simply to make sure that your wishes are carried out after you pass. This includes any funeral arrangements and financial decisions. When it comes to individuals who have children, who do you want to have make decisions about their lives? If they’re minors, who will be their guardians? How will they be financially taken care of? If your children are older, will they receive equal treatment in the will? Will one be the executor of the estate over the other? These are questions that must be considered.

Who Are My Beneficiaries?

Not everyone has children and not everyone wants their entire estate to go to their children. That’s okay. Deciding who benefits from your estate is a very personal decision. Maybe you have two children and raised a nephew. You can designate equal assets to each of the three individuals so there is no squabbling. Or maybe you don’t have children and wish your assets to go to a very specific charity. That’s the purpose of the will is to be able to specify your wishes and know it will be carried out to the letter of the law.

Do I Need A Trust?

There are a variety of reasons someone may want or need to establish a trust. A trust is when assets are set up in an account with specific rules to them. Essentially the assets are set up where one person manages the assets for the benefit of another. This could be a trust fund for children that only allows access to the money when they go to college and or reach 18 years of age. Or it could be you’re looking to have your children manage your finances as you age. A trust could be of benefit there. Look at your unique situation and see if one could be of benefit to you.

5 Common Mistakes To Avoid When Planning For Your Family’s Future

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In their twenties and thirties, the last thing most people are thinking about are what will happen to their assets after they pass away. However, it’s never too early to think about estate planning, even if you don’t feel like you have much of an estate to plan at this point. Unfortunately, there’s a lot of confusion over how to properly execute estate planning as well as tactics that can help your estate save money over the long term. At De Bruin Law Firm, we understand how instrumental an estate planning attorney can be to the security of your family, and we strive to handle each case with a personal touch. To that end, we’ve gathered up some of the most common mistakes that people make when they try to execute this legal process on their own.

Not Knowing The Difference Between An Estate Plan And A Will

Lots of people know that they should have a last will and testament to ensure their wishes are carried out after they pass away. Not everyone realizes a will is only one part of the puzzle. While both are estate planning devices, they serve very different functions when it comes to your family’s future. Basically, a will is one element of a complete estate plan. Other essential elements include a power of attorney, an advanced directive, and, for some people, trusts that will benefit children, grandchildren, a favorite charity, or even a family pet in the future.

Not Planning For Disability

Even those who are familiar with the elements of a good estate plan can become hyper-focused on structuring this plan to be executed after their death. There are other reasons to have an estate plan in place, however, included unexpected disability. Physical limitations that make it impossible to work, care for your family, or take care of your property also leave your estate at risk.

Not Giving Enough Money Away

While it’s important to make good investments so that your wealth is secure for your dependents in the future, waiting until you’ve passed away isn’t always the best way to bequeath it. According to the Internal Revenue Code, gifts up to $13,000 a year per spouse may be excluded from estate tax. This has two benefits, a) you avoid giving your hard earned income to the government and b) you are able to see the benefits of your gift in the lives of individuals you gift to while you’re still alive.

Not Choosing The Right Person To Manage Your Estate

As we mentioned previously, a comprehensive estate plan includes several different types of documentation, including your selection for power of attorney. This position should only be awarded to a person that you can trust to act in your best interests in the event that you’re disabled or pass away. This person should be provided with as much information as possible about your wishes so that they can execute your will accurately.

Not Enlisting The Services Of An Estate Planning Attorney

As you can see, estate planning isn’t a chore that should be taken lightly. It has powerful implications for yourself, should you be disabled, as well as your family and causes you care about. The best way to make sure you’ve constructed a comprehensive plan for your future is to consult with a qualified estate planning attorney.

De Bruin Law Firm has been helping South Carolina families secure their future for many years. Don’t make these mistakes! Contact us for a consultation today.

Benefits And Pitfalls Of Transferring Property Through Joint Ownership

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Transferring property when its held jointly can come with certain complications. Joint ownership is a term that arises when more than one person owns property. And, ultimately, it can be used as a simple and cost-effective way to transfer property after death. For example, a parent who wants to make sure that an adult child inherits money in a bank account can add the adult child’s name as a joint owner of the account. When the parent passes away, the adult child automatically becomes sole owner of the account and there will be no need to open a probate estate to transfer the money.

Transfer Property

Under South Carolina law, people can also transfer real estate after death by adding someone to the deed as a joint tenant with rights of survivorship. By adding a second person to a deed as a joint tenant with rights of survivorship, the real estate will automatically belong to the surviving owner when the other owner passes away. The surviving owner will only need to file a certified copy of the death certificate with the Register of Deeds for the county where the real estate is located.

When property is jointly owned, there is no need to go through probate to transfer the property. By avoiding probate, the property is transferred quickly and the costs of opening a probate estate are avoided. However, there are potential problems with adding another person’s name to your property.

Potential Problems With Joint Ownership

One potential problem is that the other person actually owns the property also. That ownership gives the second owner certain rights to the property that the initial owner might not want. For example, both owners of a bank account have the right to withdraw money from the account. In the perfect world where everyone can be trusted, that will not be a problem. Unfortunately, there are some people who will freely spend the funds in the bank account even if they were only named on a bank account for estate planning purposes.

There are also potential problems with joint real estate ownership. If you add someone’s name to the deed to your home for estate planning purposes and later decide to sell the home, the other owner will need to sign off on the sale also. A problem will arise if the joint tenant does not want to sell the property.

Estate Planning Documents

When developing an estate plan, it is important to make sure that all of your estate planning documents are consistent to avoid future problems. Dispute with heirs may arise if your will states that one heir will receive all of your money although a different heir is named as a joint owner of your bank account. It is very important to speak with an estate planning attorney to make sure that you do everything possible to avoid disputes after your death.

Contact An Attorney In Greenville For Help

At the De Bruin Law Firm in Greenville, South Carolina, our estate planning attorneys can help you to determine if adding another person’s name to your property is in your best interest. Our estate planning attorneys can also prepare any necessary deeds or other conveyancing documents. In the event there is a dispute resulting from the ownership or transfer of property, our estate planning attorneys will aggressively represent your interests. Contact the De Bruin Law Firm today to schedule an appointment with one of our estate planning attorneys.

Using A Trust To Control Assets

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A trust is a versatile estate planning document that can be used in many different ways and for many different reasons. One benefit of a trust is that it can provide instructions for how money or assets are to be distributed. There are numerous possibilities for using a trust to control assets. Some examples of how a trust can be used to control money and/or assets are as follows:

Minor or Disabled Individuals:

Care and Support of a Minor or Disabled Individual: Some minors and disabled individuals acquire their own money or property through employment, inheritance, or case settlements. An individual can establish a trust to protect the money or property owned by the minor or disabled person. For example, the trust can state that money in a specific bank account is to be used only for food, clothing, housing or education. Creating a trust can be especially useful to ensure that the parent or guardian for the minor or disabled individual does not spend the money inappropriately.

Property after Death

Post-Death Control of Property: Some people want to make sure that their heirs spend the inherited money wisely. Other people want to maintain a certain amount of control over their money and property after they are gone. For example, a parent can create a trust stating that his or her children will only receive the inherited money if they graduate from college. By setting up a trust, parents can encourage their children to take certain actions even if they are not around to guide them.

Control of Property

Pre-Death Control of Property: Sometimes, it may be desirable to use a trust account as a way of controlling one’s own assets and property during one’s lifetime. For example, a person who wins the lottery might want to limit how much money can be spent per month in order to make sure that the money lasts as long as possible. It is possible to establish a trust restricting access to your own money. This can be a useful estate planning tool for people who are concerned about their inability to control their spending or manage their own money properly.

Types Of Trusts

Under South Carolina law, there are various types of trusts that can be created. Individuals can establish a revocable living trust, which allows them to control all of their property during their lifetime and cancel it at any time. An individual can also create an irrevocable trust, which is a trust that cannot be cancelled. Individuals also have the option to create a testamentary trust which becomes effective upon death. It is important to speak with an estate planning attorney who can explain the different types of trusts that are available and create the trust that will help you to accomplish your goals.

At the De Bruin Law Firm in Greenville, South Carolina, our estate planning attorneys can analyze your needs and create the right type of trust that accomplishes your goals. Contact the De Bruin Law Firm today to schedule an appointment with one of our estate planning attorneys.

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.

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