Tag Archive for: Estate Planning

Protecting Your Greenville Rental Properties Through Your Estate Plan

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For many real estate investors in Greenville, South Carolina, building a portfolio of rental properties is the result of years of hard work, careful financial planning, and savvy market navigation. Each property represents a significant investment and a source of income. Yet, the very success of this enterprise brings with it a complex set of risks that go far beyond fluctuating market values or difficult tenants. The most pressing challenge is often one that is overlooked until it is too late: how to protect these assets from liability and ensure they pass seamlessly to the next generation without being dismantled by legal complications.

What Are the Primary Risks to Your Rental Property Portfolio?

Before exploring solutions, it is important to identify the specific threats your real estate investments face. For landlords in South Carolina, these risks are both external and internal, arising during your lifetime and after your passing.

  • Personal and Business Liability: A tenant or a visitor could slip and fall on one of your properties, leading to a significant lawsuit. Without a proper legal structure, a judgment from a lawsuit related to one property could potentially put your other rental properties, your personal residence, savings, and other assets at risk.
  • The Probate Process: If you own rental properties in your own name, they are considered part of your personal estate. Upon your death, these properties will have to go through the probate court process in Greenville County. Probate is a public, often time-consuming, and expensive legal procedure where a court oversees the settling of your debts and the distribution of your assets. This process can delay your heirs’ access to the properties and their income for months or even years.
  • Creditor Claims: Your properties can be vulnerable to claims from your personal creditors. Similarly, if a lawsuit or debt arises from one property, it could impact others if they are not properly insulated from each other.
  • Heir and Family Disputes: When rental properties are left to multiple heirs without clear instructions, conflict often follows. Beneficiaries may disagree on key decisions: Should the properties be sold or kept? Who should manage them? How should rental income be distributed? These disagreements can lead to costly legal battles that diminish the value of the inheritance.
  • Personal Incapacity: If you were to become unable to manage your own affairs due to illness or injury, who would step in to manage your properties? Without a plan, your family would have to petition the court to have a guardian or conservator appointed, a public and restrictive process that may not align with your wishes.

How Does an LLC Protect Landlords in South Carolina?

The first line of defense for a real estate investor is establishing the right business structure. For most landlords, this means creating a Limited Liability Company, or LLC. An LLC is a legal entity, separate from its owners (who are called “members”), created under state law. Placing your rental properties into an LLC is a powerful first step in shielding your personal wealth from business-related liabilities.

The primary benefit of an LLC is the liability protection it offers. It creates what is often referred to as a “corporate veil” between your business assets (the rental properties) and your personal assets (your primary home, vehicles, and personal bank accounts).

Consider this scenario: A major plumbing failure occurs at one of your rental units, causing extensive damage to a tenant’s personal belongings and leading to a lawsuit.

  • If you own the property in your personal name, the tenant could sue you directly, and a judgment could be satisfied from your personal savings, your other properties, and other assets.
  • If the property is owned by an LLC, the tenant generally sues the LLC. The lawsuit is confined to that business entity, and any potential judgment is typically limited to the assets held within that specific LLC. Your personal assets and any other properties held in separate LLCs remain protected behind the corporate veil.

This separation is the cornerstone of asset protection for any serious real estate investor.

Should I Put Each Rental Property in a Separate LLC?

As your portfolio grows, a new question emerges: should you place all your properties into one large LLC or create a separate LLC for each individual property? There are distinct advantages and disadvantages to each approach, and the right answer depends on your financial situation and tolerance for risk.

  • Using a Single LLC: Placing all your rental properties into one LLC is simpler and less expensive to set up and maintain. However, it consolidates your risk. A lawsuit related to Property A would expose the equity in Properties B, C, and D within the same LLC. While it protects your personal assets, it does not protect the properties from each other.
  • Using Multiple LLCs: Creating a separate LLC for each property offers the maximum level of liability protection. A problem at one property is completely isolated and cannot affect the others. The drawback is the increased administrative burden and cost. Each LLC requires its own formation fees, annual filings with the South Carolina Secretary of State, and separate bank accounts.

For investors with a small number of properties or lower equity, a single LLC may be sufficient. However, for those with a substantial portfolio of high-equity properties, the strategy of isolating each asset in its own LLC becomes a much more attractive and prudent approach to risk management.

Integrating Your LLCs into Your Estate Plan

Forming one or more LLCs is an excellent start, but it only solves half of the problem. An LLC provides liability protection during your lifetime, but it does not, by itself, avoid probate. Your ownership stake in an LLC is called a “membership interest,” and it is considered a personal asset. When you pass away, that membership interest, just like a stock certificate or a bank account, must go through probate unless you have integrated it into a comprehensive estate plan.

This is where the two fields of law—business formation and estate planning—intersect. The goal is to create a seamless plan where the LLC protects your properties from lawsuits, and your estate plan directs how the ownership of that protected business passes to your heirs without court intervention. The most effective tool for achieving this is a Revocable Living Trust.

What Role Does a Revocable Living Trust Play?

A Revocable Living Trust is a legal document that creates a separate entity to hold your assets. You, as the creator of the trust (the “grantor”), typically serve as the initial manager (the “trustee”) and the initial beneficiary. The key step is to transfer your assets—including the membership interests of your rental property LLCs—into the trust.

Once this is done, the LLCs are no longer owned by you personally. They are owned by your trust. This simple change in title has profound effects:

  • Complete Probate Avoidance: Because you no longer personally own the LLCs at the time of your death, they are not part of your probate estate. Upon your passing, the person you named as your “successor trustee” in the trust document immediately takes control of the trust assets, including the LLCs, without any need for court approval. The process is efficient, private, and far less expensive than probate.
  • Seamless Incapacity Planning: The trust also protects you if you become incapacitated. Your successor trustee is empowered to step in and manage the trust assets—paying bills, collecting rent, and handling repairs for the rental properties—without having to go to court.
  • Enhanced Privacy: Probate is a public record. Anyone can go to the courthouse and see a list of your assets, their approximate value, and who your beneficiaries are. A trust is a private document, and its administration is handled confidentially among your trustee and beneficiaries.
  • Greater Control and Flexibility: Within the trust document, you can leave detailed instructions for your heirs. You can specify how the properties should be managed, whether they can be sold, and how the income should be used. This allows you to maintain control over your legacy long after you are gone, helping to prevent the family disputes that often arise when instructions are unclear.

How Do I Transfer My Rental Property LLCs to a Trust?

The process of funding your trust with your LLC membership interests requires careful attention to detail to ensure the transfer is legally valid. Attempting to do this without proper guidance can result in a failed plan.

The general steps include:

  • Drafting the Trust Document: First, a comprehensive Revocable Living Trust is created that reflects your wishes for asset management and distribution.
  • Reviewing the LLC Operating Agreement: This document governs your LLC. It is important to review it to ensure there are no restrictions on the transfer of membership interests to a trust. If you are the sole member, this is straightforward; with multiple members, it may require consent.
  • Preparing an Assignment of Membership Interest: This is the legal document that formally transfers your ownership of the LLC from you as an individual to you as the trustee of your trust.
  • Executing the Assignment: You sign the assignment document, officially making the trust the new owner of the LLC.
  • Amending LLC Records: The LLC’s internal records, including its membership ledger, should be updated to show that the trust is now the member.

Each step must be executed correctly to ensure the probate avoidance and asset protection benefits are fully realized.

Advanced Considerations for Greenville Real Estate Investors

A well-drafted trust allows for sophisticated planning that addresses the unique dynamics of your family and your business.

  • Accommodating Unequal Contributions: If you have one child who has been actively involved in managing the properties and others who have not, you may not want to divide ownership equally. A trust can be structured to give the active child managerial control while ensuring the other children receive a fair financial benefit, preventing conflicts over management styles.
  • Providing for Heirs with Special Needs: You can use the trust to hold properties for the benefit of a minor child until they reach a certain age. For a beneficiary with special needs who receives government assistance, an inheritance can be left in a “Special Needs Trust” to provide financial support without disqualifying them from their vital benefits.
  • Protecting Beneficiaries from Themselves: If you are concerned about an heir’s ability to manage money or their exposure to creditors or a potential divorce, you can include “spendthrift” provisions in your trust. This protects their inheritance by restricting their ability to sell their interest or have it seized by a creditor.
  • Creating a Liquidation Plan: You may not want your children to be landlords forever. Your trust can give your successor trustee clear instructions on when and how to sell the properties, such as when they reach a certain age, if the properties become unprofitable, or upon the agreement of the beneficiaries.

Taking the Next Step to Protect Your Real Estate Legacy

Owning rental properties in the Greenville area is an effective way to build wealth, but that wealth is only secure if it is properly protected. A proactive approach that pairs the liability shield of an LLC with the probate avoidance and control of a Revocable Living Trust provides a powerful, two-part solution. This integrated strategy ensures that your properties are safeguarded from legal threats during your lifetime and that your legacy can be passed on to your loved ones privately, efficiently, and according to your specific wishes.

If you are a landlord or investor in the Greenville area seeking to secure your portfolio for the future, the DeBruin Law Firm offers experienced legal guidance in creating these comprehensive plans. We are dedicated to helping clients safeguard their hard-earned assets.

To discuss your specific circumstances, we invite you to call us at (864) 982-5930 or message us online to schedule a consultation.

HIPAA Authorizations in Estate Planning: Ensuring Access to Medical Information in Greenville

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When unforeseen health crises arise, who will speak for your medical care? And perhaps even more importantly for your family, who will be able to access the medical information needed to make informed decisions and manage your affairs? In Greenville, as elsewhere, many individuals meticulously plan their estates, outlining how assets should be distributed and appointing fiduciaries to manage their financial legacies. Yet, a vital piece of this protective mosaic is often overlooked: ensuring access to medical information. Without proper authorization, even your closest family members or appointed agents may find themselves locked out of critical discussions with healthcare providers.

The Importance of Medical Information Access in Estate Planning

Your medical records contain sensitive, personal information about your health, diagnoses, treatments, and prognosis. The Health Insurance Portability and Accountability Act (HIPAA) of 1996 established strict federal standards to protect the privacy of this health information. While HIPAA is vital for safeguarding patient privacy, it can inadvertently create barriers for family members or fiduciaries when a person becomes incapacitated or passes away.

Imagine a scenario where a spouse is suddenly hospitalized and unable to communicate. Without a HIPAA authorization, the other spouse, despite their marital relationship, may be denied access to treatment details, unable to discuss care options with doctors, or even be prevented from knowing where their loved one is being treated. This legal barrier can lead to immense stress, delays in care, and an inability for families to fully support their loved one during a vulnerable time.

For estate planning, this access is paramount. The individuals you designate to make healthcare decisions for you (your healthcare agent) or to manage your financial affairs (your power of attorney agent or trustee) often need medical information to fulfill their roles effectively. For instance, a financial agent might need to confirm a diagnosis for an insurance claim or to understand the duration of a long-term care need. Without a valid HIPAA release, they could be stymied at every turn.

What is a HIPAA Authorization?

A HIPAA authorization is a legal document that gives specific individuals or entities permission to access your protected health information (PHI). It acts as a waiver of your HIPAA privacy rights, allowing healthcare providers to share your medical records with the people you name. This authorization is distinct from, but works in conjunction with, other estate planning documents like a Durable Power of Attorney for Healthcare or a Living Will.

For an authorization to be valid under HIPAA, it must contain several key elements:

  • Specific Description of Information to be Disclosed: The authorization must clearly state what type of information can be released (e.g., all medical records, specific diagnoses, treatment plans).
  • Identification of Parties Authorized to Make the Disclosure: This specifies the healthcare providers or entities that are permitted to release your information.
  • Identification of Parties to Whom Information May Be Disclosed: You must clearly name the individuals or organizations who are allowed to receive your health information.
  • Purpose of the Disclosure: The reason for sharing the information must be stated (e.g., for healthcare decision-making, insurance purposes, estate administration).
  • Expiration Date or Event: The authorization must specify when it expires, or describe an event that triggers its expiration (e.g., “upon my death” or “when my medical condition improves”). If no date or event is specified, it remains valid until revoked.
  • Signature and Date: The authorization must be signed and dated by the individual or their authorized representative.
  • Right to Revoke: The document must inform you of your right to revoke the authorization in writing at any time.

Without these elements, a healthcare provider may refuse to release information, citing HIPAA regulations.

Distinguishing HIPAA Authorizations from Other Estate Planning Documents

While a HIPAA authorization grants access to information, it does not grant the authority to make decisions. This is where other estate planning documents come into play:

  • Durable Power of Attorney for Healthcare (Healthcare Power of Attorney): This document designates a specific person (your healthcare agent or proxy) to make medical decisions on your behalf if you become unable to do so yourself. While this document grants decision-making authority, it does not automatically grant access to your medical records due to HIPAA. A HIPAA authorization is essential to ensure your healthcare agent can obtain the necessary information to make informed decisions.
  • Living Will (Advance Directive for Healthcare): A Living Will expresses your wishes regarding life-sustaining treatment in the event you are terminally ill or in a persistent vegetative state. It guides your healthcare providers and agents in end-of-life decisions. Like the Healthcare Power of Attorney, a Living Will states your desires, but does not provide direct access to your medical records; a HIPAA authorization is needed for your designated individuals to review the information relevant to these decisions.
  • Durable Power of Attorney for Finances: This document appoints an agent to manage your financial affairs if you become incapacitated. While primarily focused on financial matters, your financial agent may also need access to medical information to file insurance claims, apply for benefits, or manage medical bills. A broad HIPAA authorization can facilitate this process.
  • Last Will and Testament: Your Last Will and Testament primarily dictates how your assets are distributed after your death and appoints an executor to manage your estate. After your passing, your executor may need access to some medical records, particularly to settle medical bills or insurance claims. A post-mortem HIPAA authorization can be included in your estate plan to address this.

It is important to emphasize that these documents work in concert. A healthcare agent with decision-making power is significantly more effective if they also have the ability, via a HIPAA authorization, to discuss your condition thoroughly with your medical team.

Legal Ramifications of a Missing HIPAA Authorization

In South Carolina, the absence of a HIPAA authorization can lead to significant complications and distress for families. Without this specific document, healthcare providers are legally bound to protect your medical information. This means:

  • Delays in Medical Care: Family members may struggle to get updates on your condition, understand treatment options, or authorize necessary procedures if they cannot access your medical records. Valuable time can be lost trying to navigate HIPAA regulations.
  • Inability to Make Informed Decisions: Even if you have a healthcare power of attorney, your agent may not be able to effectively make decisions without detailed medical information from your doctors. They might not understand the full scope of your diagnosis or the potential side effects of treatments.
  • Financial Complications: Your financial agent may encounter difficulties with health insurance claims, applying for disability benefits, or accessing long-term care insurance proceeds if they cannot obtain the required medical documentation.
  • Family Conflict: When medical information is withheld, it can exacerbate existing family tensions, as different family members may seek information or believe they have the right to intervene. The lack of a clear authorization can create confusion and disputes during already emotional times.
  • Court Intervention: In extreme cases, if no valid authorization exists and medical information is critically needed, family members may be forced to seek a court order to gain access. This process is time-consuming, expensive, and adds further burden during a crisis.

These legal hurdles are entirely avoidable with proactive planning and the inclusion of a comprehensive HIPAA authorization in your estate plan.

Strategic Integration of HIPAA Authorizations into Your Estate Plan

Integrating HIPAA authorizations effectively requires careful thought to ensure they align with your overall estate planning goals.

Who Should Be Authorized?

The individuals you authorize to access your medical information should be the same trusted people you designate as your healthcare agents, financial agents, and successor trustees. Consider:

  • Spouse or Partner: Often the primary individual.
  • Adult Children: If you have multiple children, decide if all or only certain ones should have access.
  • Trusted Friends or Other Relatives: If you do not have close family members or prefer someone outside your immediate family.
  • Professional Fiduciaries: If you appoint a professional to manage your affairs, they will also require access.

It is generally recommended to name primary and at least one successor individual to ensure continuity if your first choice is unable to act.

Scope of Authorization

The authorization can be broad or specific. While a broad authorization simplifies things by allowing access to all your health information, you may choose to limit it if you have specific privacy concerns. However, for comprehensive estate planning, a broad authorization is typically more effective to prevent unforeseen barriers. This includes permission to discuss your mental health, which some standard authorizations may omit.

Effective Dates and Events

Most HIPAA authorizations are designed to become effective immediately upon signing and remain valid indefinitely or until revoked. For estate planning purposes, it’s beneficial to have one that is immediately effective, so your designated individuals can access information if needed for planning or if you become incapacitated. It should also explicitly state that it remains valid after your death, allowing your executor to handle final medical bills and related matters.

Collaboration with Healthcare Providers

Once your HIPAA authorization is executed, it is a good practice to:

  • Provide Copies: Give copies to your authorized individuals and ensure they know where the original is stored.
  • Inform Your Doctors: Provide copies to your primary care physician and any specialists you regularly see. Ask them to add it to your medical file. This proactive step can prevent delays when the authorization is needed.
  • Review Regularly: As with all estate planning documents, review your HIPAA authorization periodically (e.g., every 3-5 years, or after significant life events) to ensure it still reflects your wishes and includes all relevant individuals.

Common Scenarios Where HIPAA Authorization Proves Invaluable

Let’s consider specific situations where a well-drafted HIPAA authorization can make a significant difference:

  • Emergency Hospitalization: Your spouse needs to know your diagnosis and prognosis to make decisions about your care. Without a HIPAA release, hospital staff might refuse to share details, citing privacy concerns.
  • Long-Term Care Planning: Your adult child is helping you plan for long-term care, and needs to discuss your cognitive abilities or physical limitations with your doctors to determine appropriate living arrangements and care levels.
  • Insurance Claims and Benefits: Your designated agent is attempting to file a claim with your disability insurance or long-term care insurance provider. These providers will require medical documentation to process the claim, which your agent cannot obtain without a HIPAA authorization.
  • Managing Medications: If you are incapacitated, your appointed agent might need to discuss your medication regimen with your doctor to ensure continuity of care or to pick up prescriptions.
  • End-of-Life Discussions: Your healthcare agent needs to discuss your prognosis and treatment options with your medical team to align decisions with your Living Will, especially if new information arises.
  • Post-Mortem Administration: After your passing, your executor may need to access medical records to resolve outstanding medical bills, deal with health insurance claims, or handle potential wrongful death claims. A specific post-mortem authorization is highly beneficial here.

These examples underscore that medical information access is not just for life-threatening emergencies, but also for routine management of affairs that intersect with your health.

Ensuring Your Documents Are Readily Accessible

Creating the HIPAA authorization is only half the battle; ensuring it is accessible when needed is just as vital.

  • Secure but Accessible Storage: Do not lock your original HIPAA authorization in a safe deposit box that no one can access without a court order. Store it with your other estate planning documents in a fireproof, waterproof home safe that your designated agents know how to access.
  • Provide Copies to Authorized Individuals: Give each person you name in your authorization a copy. Instruct them to keep it in an easily retrievable location, perhaps with a copy of your Healthcare Power of Attorney.
  • Digital Copies: While original documents are usually preferred for legal purposes, having scanned digital copies of your HIPAA authorization on a secure, encrypted drive or a secure cloud storage can provide backup and quick reference. However, note that scanned copies may not always suffice for official original-will requirements, but for a HIPAA release, they can often facilitate initial information sharing.
  • Inform Your Healthcare Providers: As mentioned, providing copies to your doctors and hospitals ahead of time can expedite access when it is most needed.

Review and Update Your HIPAA Authorization Regularly

Life circumstances change, and so should your estate plan, including your HIPAA authorization. It is important to review and update this document when:

  • You get married, divorced, or remarry: Your relationships change, and your designated individuals may need to be updated.
  • You have children or grandchildren: You may want to add adult children to your list of authorized individuals.
  • An authorized individual passes away or becomes incapacitated: You will need to name a new primary or successor.
  • You move to a new state: While HIPAA is federal law, state laws can influence how medical powers of attorney and related documents are interpreted.
  • There are significant changes in your health: You might want to adjust who has access based on new medical needs.
  • Every few years, generally: Even without major life events, a periodic review ensures the document remains current and reflects your wishes.

Safeguarding Your Medical Information While Ensuring Access

The goal of a HIPAA authorization is not to compromise your privacy but to ensure that the right people have the right information at the right time. By carefully naming your authorized individuals and defining the scope of their access, you maintain control over your sensitive medical data while preventing unnecessary obstacles for those acting on your behalf.

It is a delicate balance, and a well-drafted authorization achieves this by:

  • Limiting Scope to Necessary Individuals: Only those directly involved in your care or financial management gain access.
  • Defining Purpose: The reason for access is clearly stated, preventing misuse of information.
  • Retaining Right to Revoke: You always have the power to cancel the authorization if your wishes or circumstances change.

This proactive approach protects your privacy by design, channeling information only to your chosen representatives.

Secure Your Healthcare Future: HIPAA Authorization in Your Estate Plan.

A comprehensive estate plan includes HIPAA authorization for seamless access to medical information. Without it, healthcare directives or financial powers of attorney may be ineffective, causing stress for your family. This essential document ensures your trusted loved ones can manage your health with full access to necessary information.

At De Bruin Law Firm, we believe in a holistic approach to estate planning that anticipates both financial and healthcare needs. Our dedicated team is here to guide you through the process of creating or updating your estate plan, ensuring that it includes comprehensive HIPAA authorizations tailored to your specific wishes and circumstances.

Call us today at (864) 982-5930 or message us online to schedule a consultation. Let us help you put a solid plan in place for securely managing your medical and financial future.

Estate Planning for Snowbirds: Coordinating SC Plans with Other States

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The allure of warmer climates during colder months draws many individuals and families to maintain residences in more than one state. These “snowbirds,” who often split their time between South Carolina and another state, face unique challenges when it comes to estate planning. While mild winters of Greenville and the surrounding areas offer a delightful escape, the legal landscape of managing assets across state lines can be complex.

The Complexities of Multi-State Residency for Estate Planning

For individuals who own property or reside in more than one state, the process of estate planning moves beyond the typical considerations. Each state has its own distinct laws governing wills, trusts, probate, and inheritance. Without proper coordination, an estate plan meticulously crafted in one state could be entirely ineffective or lead to unintended consequences in another. This lack of harmonization can result in significant delays, increased costs, and potential disputes among beneficiaries.

  • Varying State Laws: Different states have varying requirements for the validity of wills, the probate process, and how assets are distributed. For instance, South Carolina’s probate laws may differ significantly from those in Florida, North Carolina, or New York. What constitutes a valid will in one state might not be fully recognized in another, leading to complications upon death.
  • Ancillary Probate: Owning real property in multiple states often necessitates “ancillary probate.” This means that in addition to the primary probate process in the decedent’s state of domicile, a separate probate proceeding must occur in each state where real estate is owned. This duplicative process adds layers of expense, time, and administrative burden for the grieving family.
  • Conflicting Legal Directives: Without a unified strategy, directives in one state’s documents might contradict those in another. This ambiguity can force courts to interpret the testator’s true intentions, potentially leading to outcomes contrary to their wishes.

Establishing Domicile: More Than Just a Winter Address

One of the foundational aspects of multi-state estate planning is determining one’s legal domicile. A domicile is more than just where you spend most of your time; it’s the place you consider your permanent home and where you intend to return. For snowbirds, establishing clear domicile is vital because it dictates which state’s laws will primarily govern their estate.

Factors Determining Domicile: Courts consider various factors when determining domicile, including:

  • Where you are registered to vote.
  • The state where your driver’s license was issued.
  • The address used for federal and state tax returns.
  • The location of your primary bank accounts.
  • Where your vehicles are registered.
  • The address listed on your passport.
  • The location of your most valuable possessions or family heirlooms.
  • Where you spend the majority of your time, though this alone is not conclusive.
  • Your declarations of residency in legal documents.

Importance for Probate and Taxation: Your state of domicile generally dictates where your primary probate will occur. It can also have substantial implications for state income taxes, estate taxes, and inheritance taxes, as these can vary widely between jurisdictions. Clearly establishing a domicile can help avoid disputes and unintended tax liabilities.

Key Estate Planning Tools for Snowbirds

Several powerful estate planning tools can be tailored to meet the unique needs of snowbirds, helping to ensure a seamless transfer of assets and adherence to their wishes across state lines.

Revocable Living Trusts: These trusts are exceptionally versatile for snowbirds.

  • Avoiding Probate: Assets transferred into a revocable living trust during your lifetime bypass the probate process entirely, in all states where the assets are held. This can eliminate the need for ancillary probate in multiple states, saving significant time and expense.
  • Privacy: Unlike wills, which become public record during probate, the administration of a trust remains private.
  • Continuity of Management: If you become incapacitated, a successor trustee can immediately step in to manage trust assets without court intervention, ensuring your financial affairs are handled smoothly regardless of your physical location.
  • Flexibility: A revocable living trust can be altered or revoked during your lifetime as your circumstances or wishes change.

Wills (and Pour-Over Wills): Even with a trust, a will remains an important part of a comprehensive estate plan for snowbirds.

  • “Pour-Over” Wills: This type of will works in conjunction with a revocable living trust. It acts as a safety net, dictating that any assets not transferred into the trust during your lifetime should be “poured over” into the trust upon your death and distributed according to its terms.
  • Specific Bequests and Guardianship: A will is still the primary document for naming guardians for minor children. It can also be used for specific bequests of personal property not placed in a trust.
  • State-Specific Requirements: Ensure your will meets the execution requirements of both your domicile state and any other state where you own real property, or at least your domicile state’s requirements so that the other states will typically recognize it.

Durable Powers of Attorney:

  • Financial Power of Attorney: This document designates an agent to manage your financial affairs if you become incapacitated. For snowbirds, it’s particularly important to ensure this document is recognized and effective in all states where you have assets or conduct business. Some states have specific statutory forms, and it may be advisable to execute powers of attorney for each state.
  • Healthcare Power of Attorney/Healthcare Directives: These documents allow you to appoint an agent to make medical decisions on your behalf and express your wishes regarding medical treatment. Like financial powers of attorney, it’s important to confirm their validity across states, especially if you spend significant time in different locations.

Deeds and Property Titling: The way real property is titled can significantly impact how it passes upon your death and whether it avoids probate.

  • Joint Tenancy with Right of Survivorship (JTWROS): Property held as JTWROS automatically passes to the surviving owner(s) upon death, bypassing probate. This can be a straightforward way to handle a vacation home owned with a spouse or partner.
  • Tenancy by the Entirety: Available in some states for married couples, this form of ownership also includes a right of survivorship and offers creditor protection.
  • Tenancy in Common: In contrast to JTWROS, property held as tenancy in common does not have rights of survivorship. Each owner’s share passes according to their will or state intestacy laws, often requiring probate.
  • Transfer-on-Death (TOD) or Beneficiary Deeds: Some states allow for real estate to be transferred directly to a named beneficiary upon the owner’s death via a TOD or beneficiary deed, thus avoiding probate for that property. South Carolina, however, does not currently recognize these types of deeds for real property.

Navigating State-Specific Nuances for Snowbirds

Each state presents its own set of rules and considerations that snowbirds must account for in their estate planning.

South Carolina Specifics

  • Probate Process: South Carolina has a judicial probate process, meaning the court oversees the administration of an estate. While generally considered less burdensome than some states, it still involves court filings and oversight.
  • Intestacy Laws: If a South Carolina resident dies without a valid will, their assets will be distributed according to South Carolina’s intestacy statutes. This may not align with a snowbird’s wishes, especially concerning blended families or non-traditional heirs.
  • Will Execution: South Carolina requires a will to be in writing, signed by the testator (or by another person in the testator’s presence, by the testator’s direction), and attested by at least two witnesses in the testator’s presence.

Other Common Snowbird States (Examples)

  • Florida: Known for its streamlined probate process for smaller estates and its homestead exemption, which protects a primary residence from creditors and sometimes from being subject to forced sale. Florida also recognizes “Lady Bird Deeds” or enhanced life estate deeds, which allow property to pass to beneficiaries outside of probate while retaining control during life.
  • North Carolina: Has a more court-supervised probate process than Florida, and its intestacy laws are similar to South Carolina’s. North Carolina also has specific requirements for powers of attorney.
  • New York: Characterized by a typically lengthier and more formal probate process, New York has different rules regarding spousal elective shares and the taxation of estates.

Tax Implications for Multi-State Estates

Taxation is a significant consideration for snowbirds, as various state tax laws can impact an estate plan.

  • State Estate or Inheritance Taxes: A handful of states levy their own estate taxes or inheritance taxes in addition to the federal estate tax. Some states have both. The state of domicile is usually the one that assesses estate or inheritance taxes, but some states may also tax real property located within their borders, regardless of the owner’s domicile. South Carolina does not currently have a state estate or inheritance tax.
  • State Income Taxes: Domicile also influences state income tax obligations. Some states have no state income tax, while others have progressive tax rates. This can impact strategies for income-generating assets within the estate.
  • Property Taxes: Each state and sometimes each county or municipality will have its own property tax rates and assessment methods. Understanding these differences is important, particularly if one property is intended to be held longer or passed down.
  • Capital Gains Taxes: The sale of appreciated property, regardless of location, will be subject to federal capital gains taxes. State capital gains taxes may also apply, depending on the state where the property is located and your state of domicile.

Safeguarding Your Multi-State Estate Documents

Protecting your estate planning documents is as important as creating them, especially when managing assets across different states. A lost or compromised document can derail years of careful planning and lead to severe complications for your loved ones.

Secure Storage Options:

  • Bank Safe Deposit Box: This is a highly secure location for original documents like wills and deeds. Access is typically restricted, often requiring legal authority or a court order after your passing, which adds a layer of protection against unauthorized removal or destruction. Be sure to name a co-lessee, such as your executor, for easier access upon your passing.
  • Fireproof, Waterproof Home Safe: A robust home safe offers immediate access and protection from environmental damage. Ensure it is bolted down to prevent theft and limit access to trusted individuals.

Digital Backups: Maintain scanned copies of all documents in secure, encrypted cloud storage or on encrypted USB drives. While scanned copies of wills may not always be accepted as originals for probate purposes, they serve as valuable backups and proof of existence.

Informing Key Individuals: Your executor, trusted family members, and agents named in your powers of attorney should know the location of your original documents and how to access them. This forethought can prevent delays and confusion during an already difficult time.

Professional Custody (with caution): While some individuals leave original documents with their attorney, this can create issues if the attorney retires, moves, or passes away, potentially requiring a court order to access them. Generally, keeping documents in a place you control or through a trusted financial institution is preferable.

Coordinating Real Estate Documents Across States

Real estate documents, particularly property deeds, title abstracts, and mortgage paperwork, are vital components of a snowbird’s estate plan. Their proper management is paramount to avoid disputes, delays in sales, or loss of critical information.

  • Deed Management: Ensure you have original, recorded deeds for all properties you own. For properties in different states, understand the recording requirements and customary practices for each jurisdiction.
  • Title Insurance Policies: Keep your title insurance policies with your property records. These policies protect against defects in the title that existed before you purchased the property.
  • Mortgage and Loan Documents: Maintain all paperwork related to mortgages or loans on your properties. This includes loan agreements, promissory notes, and any modification agreements.
  • Leases and Rental Agreements: If you rent out either of your properties, keep copies of all leases and rental agreements.
  • Compliance with State Law: Be aware of any state-specific requirements for retaining transaction records. For example, South Carolina law requires brokers-in-charge to retain transaction records for at least five years. Property owners should also maintain these for future legal needs.

The Importance of Regular Review and Updates

Life for a snowbird often involves changing residences, acquiring new properties, or evolving family dynamics. Your estate plan must adapt to these changes.

  • Life Events: Marriage, divorce, the birth or adoption of children, the death of a beneficiary or executor, and significant changes in financial circumstances all warrant a review of your estate plan.
  • Changes in State Laws: Estate laws are not static. Tax laws, probate procedures, and even definitions of legal relationships can change. Regular consultation with an attorney helps ensure your plan remains compliant and effective under current laws.
  • Acquisition or Sale of Property: Each time you buy or sell real estate in a different state, your estate plan should be revisited to ensure the property is properly integrated or removed from your overall strategy.

Multi-State Estate Planning in South Carolina? Secure Your Legacy.

Navigating multi-state estate planning requires knowledgeable guidance. At De Bruin Law Firm, we are dedicated to assisting snowbirds and other multi-state residents in Greenville and across South Carolina in creating cohesive, effective estate plans. We focus on protecting your legacy and ensuring your wishes are honored, no matter where your journey takes you. Whether you need help drafting a new will, establishing a trust, or coordinating existing plans across state lines, our team is here to provide tailored advice and comprehensive support.

We invite you to take the next step in securing your future. Contact us today at (864) 982-5930 or message us online to schedule a consultation. Let us help you develop a robust estate plan that offers peace of mind for you and your loved ones.

Safeguarding Your Estate Plan: Why Protecting Your Will Is Just as Important as Creating It

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When it comes to safeguarding critical estate planning and real estate documents, strong security is not just advisable — it’s essential. These documents represent your wishes, your assets, and your legal authority. If they go missing or fall into the wrong hands, it could unravel years of careful planning.

The Case of the Disappearing Will: A Cautionary Tale

A few years back, a South Carolina family’s probate process turned into a nightmare. After both parents passed away, their adult children began gathering important papers at the family home. What most of the family didn’t realize was that one of the children had been intentionally disinherited in a valid will that their parents had executed years earlier.

Within days of the funeral, that disinherited child quietly gained access to the home. Somewhere in the shuffle, the original will disappeared. When it came time to probate the estate, no one could locate it. And under South Carolina law, without a will, the estate would be distributed according to the state’s intestacy statutes — meaning all children, including the one the parents intended to disinherit, would inherit an equal share.

Though a photocopy of the will was eventually found, the legal battle to have it accepted by the probate court was lengthy, stressful, and costly. Without clear evidence that the will existed at the time of death or proof of what happened to it, the court presumed it had been revoked. Years of thoughtful estate planning were nearly undone by one missing document.

Legal Risk of a Missing Will in South Carolina

South Carolina law takes the safekeeping of estate planning documents seriously. If a person dies and no original will can be produced, the law presumes the testator intended to revoke it, even if copies exist. To overcome that presumption, surviving family members must prove the existence and validity of the lost will, as well as the circumstances surrounding its disappearance. This process is complicated, expensive, and can tear families apart.

It’s a situation that’s avoidable — but only if proper precautions are taken.

Best Practices for Safekeeping Your Estate Documents

To prevent this type of issue, it’s critical to store your original will in a secure, reliable, and accessible location. Here are two recommended options:

Safe Deposit Box at a Bank

This is one of the most secure places to store estate documents. Upon your passing, access to the box is typically limited to people you give access to, by court order or with proper legal authority, making it difficult for anyone to remove or destroy your will without leaving a trace.

Additionally, banks often inventory the contents of a safe deposit box when items are added and after a person’s death, providing valuable evidence that your will existed at the time of death — an important factor if a copy ever needs to be probated.

Best Practices:

  • Name a co-lessee (such as your executor) who can access the box without delay.
  • Store only original documents and maintain electronic backups elsewhere.
  • Inform trusted individuals about the location of the box and what it contains.

Fireproof, Waterproof Home Safe

If a bank isn’t an option, a high-quality home safe is the next best choice.

Advantages:

  • Offers immediate access and full control over the contents.
  • Provides solid protection from natural disasters.

Best Practices:

  • Invest in a safe rated for high temperatures and submersion.
  • Keep it bolted down to prevent theft.
  • Limit access and inform your executor where the safe is located and how to open it.

What to Avoid

While some people consider leaving original estate documents with their attorney, this can create problems if the attorney retires, moves, or passes away. In those situations, accessing the documents may require a court order, especially if they’re stored in a law office’s work safe. For that reason, it’s typically better to keep your will in a place you control or can manage through a trusted financial institution.

The Importance of Protecting Real Estate Documents

Real estate documents are just as important as estate planning documents, especially when property is a major part of your estate.

Documents to protect include:

  • Property deeds
  • Title abstracts
  • Mortgage paperwork
  • Sale contracts or leases

Losing these documents can delay sales, cause ownership disputes, or result in the loss of valuable information.

Legal Requirements in South Carolina

Under S.C. Code §40-57-135(D)(1), brokers-in-charge must retain transaction records for at least five years. Property owners should also maintain these documents for future legal needs or transactions.

Electronic and Hybrid Storage Options

Cloud Storage

  • Provides remote access and backup.
  • Requires strong encryption and password protection.
  • Scanned copies may not be acceptable for original-will requirements.

Encrypted USB Drives

  • Hardware-encrypted drives offer portable, offline security.
  • Best stored in a fireproof safe or bank box.

Hybrid Approach

For maximum security and redundancy, combine all storage options:

  • Keep original wills and deeds in a bank safety deposit box if possible, or in a highly secured fireproof, waterproof home safe.
  • Copies on encrypted USB drives at home.
  • Scanned copies in secure cloud storage.

Legal Access and Compliance at the Time of Death

Under S.C. Code §34-19-50, spouses, adult children, or named executors can access a decedent’s safety deposit box under specific conditions to retrieve wills or burial deeds. Ensuring your designees know this can prevent unnecessary delays or confusion.

Final Thoughts

Your estate plan isn’t complete until you’ve made sure it’s protected. The story of a disinherited heir turning an entire estate plan upside down is a sobering reminder that what happens to your documents after you’re gone can be just as impactful as what they say.

Take the time now to secure your will, real estate records, and other legal documents in safe, well-considered locations. It’s a small effort that can prevent enormous stress, confusion, and conflict for your loved ones down the road.

How De Bruin Law Firm Can Help

At De Bruin Law Firm, we understand how important it is to protect your legacy through secure, compliant estate and real estate planning. Whether you need help drafting a will or choosing the best storage strategy for your documents, our team is here to guide you.

Call us today at (864) 982-5930 or message us online to schedule a consultation and ensure you have your estate planning and real estate plans and documents in order, and that you have a solid plan for securely storing your most important documents.

Estate Planning And Victims Of Asbestos Exposure

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There are many reasons why someone may want to devise their estate plan. Perhaps they are wanting to protect assets and ensure that those they love receive a piece of their legacy that can be passed down to future generations. Or they may have just been diagnosed with an illness and want to get their affairs in order. There are limitless factors that can contribute to someone becoming sick. For instance, someone who is diagnosed with an asbestos-related condition later in life because of working with asbestos material may be motivated to solidify their end of life wishes through establishing a legally-binding documentation, like an estate plan. 

The initial signs of asbestos exposure typically involve the lungs. This is because asbestos mainly causes lung-related disease, but it can cause illness in other areas of the body too, such as the stomach, throat, and colon. The most common signs of exposure to asbestos are chest pain, cough, and shortness of breath. Additionally, pleural plaques may be a sign that someone sustained enough exposure to be vulnerable to other diseases, which may have developed before a lung cancer or mesothelioma diagnosis. Other symptoms related to asbestos exposure include:

  • Crackling sound when breathing
  • Wheezing
  • Dry cough
  • Pleural plaques
  • Pleural effusion
  • Respiratory complications
  • Loss of appetite
  • Clubbed fingers
  • Difficulty swallowing
  • Hoarseness
  • Hernia 
  • Bowel obstruction
  • Pelvic pain
  • Abdominal pain
  • Abdominal distention and swelling

It is estimated that 20% of people who have worked with asbestos are going to develop an asbestos-related illness. Those who have been heavily exposed receive an asbestos disease diagnosis at an even higher rate. There are many factors that can contribute to someone having an asbestos-related disease, such as how long they worked with the material and the concentration of the asbestos fibers inhaled. But most people who get sick from asbestos exposure had worked with it for their career. Employers have a duty to provide workers with sufficient protection so that they do not develop serious illness down the road. An employer may be liable through a personal injury lawsuit for how a former employee had suffered later in life due to asbestos exposure in the workplace.

As a D.C. asbestos lawyer at Cohen & Cohen, P.C. explains, if you or someone you care about was diagnosed with an asbestos caused mesothelioma or other condition, you may want to discuss your situation with a lawyer so that you don’t endure financial hardship in addition to dealing with the illness itself. Depending on the cause or your mesothelioma, you may be able to file a personal injury lawsuit. Regardless of the cause, an estate planning lawyer can help you to get your affairs in order so that you can have at least that peace of mind. 

If you have found yourself in an awful situation of dealing with an asbestos-related diagnosis, it may be scary to imagine a time when you are not here with loved ones, but having your affairs in order can provide some relief while you continue to take care of yourself. Having an estate plan in place can give you that peace of mind that victims of serious illness do not expect.

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.

Will Types in Greenville, South Carolina

The Simple Will: A Foundation for Estate Planning

Of all the different types of wills available to those living in Greenville, SC, the simple will is relatively straightforward and serves as a foundational document for many individuals. At its core, a simple will allows you to clearly outline your wishes regarding the distribution of your assets and the guardianship of your minor children in the event of your premature passing.

With this type of will, you can declare precisely how you wish to give away your assets, specifying who receives what kind of asset – whether it’s a piece of property, a financial account, or personal belongings. Furthermore, you designate an executor for your estate, the individual or entity responsible for carrying out the instructions laid out in your will and managing the probate process. The executor ensures that your debts are paid, assets are distributed as you’ve directed, and all legal formalities are observed.

While seemingly comprehensive, a simple will is best suited for estates that are not overly complex. If you own a business, have a substantial estate that might be subject to significant taxes, or possess intricate financial arrangements, a simple will may not be sufficient. In such cases, other, more specialized types of wills or estate planning tools might be more appropriate to address the nuances of your financial situation and minimize potential tax burdens.

There are also specific situations where relying solely on a simple will might not be the most effective strategy. For instance, if your intention is to leave land to your children or other family members, or if you have children from a previous marriage, a simple will might not adequately address the complexities of these arrangements. 

Similarly, if you need to establish a special needs trust for a beneficiary with a disability to ensure they can receive financial support without jeopardizing their public assistance eligibility, a simple will won’t suffice. 

Lastly, if you have any reason to believe that your will might be challenged by an estranged family member or another party, a simple will may not offer the robust legal protections needed. In any of these situations, seeking the guidance of a reputable estate planning attorney is highly recommended to determine the best type of will and overall estate plan for your unique circumstances.

Testamentary Trust Will: Conditional Bequests and Beneficiary Protection

A testamentary will introduces an element of conditional giving through the creation of a trust. Unlike a simple will, which directly distributes assets, a testamentary will establishes a trust into which certain assets are placed for the benefit of named individuals. A designated trustee is then responsible for managing this trust on your behalf after your passing. This option is particularly valuable if you have beneficiaries who are minors or individuals you prefer not to have direct, immediate control over a large inheritance.

The power of a testamentary will lies in its ability to place conditions on how your beneficiaries receive their assets. For example, you can stipulate that a certain amount of money or a particular asset becomes available only when a child graduates from college, reaches a specific age, or gets married. This allows for a more controlled and responsible distribution of wealth, aligning the inheritance with specific life milestones or needs. It provides a layer of protection, ensuring that assets are used wisely and for their intended purpose, especially for younger or less financially experienced beneficiaries.

Living Will: Your Healthcare Directives

While often discussed alongside other types of wills, a living will isn’t a document that dictates the distribution of your assets. Instead, it serves as a crucial statement of your last wishes regarding your medical care and end-of-life decisions. This legally binding document outlines your preferences for medical treatment, including whether or not you wish for life-saving measures to be employed in specific circumstances. For instance, you can specify whether you would want to be kept alive via machines if you were to enter a vegetative state or if you would prefer to be taken off life support.

The primary benefit of having a living will in place is that it alleviates the immense burden of making difficult healthcare decisions from your family during an emotionally challenging time. It ensures that your medical wishes are honored, providing clarity and peace of mind to both you and your loved ones. To guarantee that your medical-related wishes are respected and followed, establishing a living will is an essential component of comprehensive estate planning.

Holographic Wills: The Handwritten Exception

Holographic wills are often misunderstood, conjuring images of futuristic, floating documents. In reality, a holographic will is a will that is entirely written in your own handwriting. What distinguishes them from other wills is that the typical requirements for witnesses and notarization are often less stringent or even waived in jurisdictions that recognize them.

However, the main drawback of holographic wills lies in their potential for ambiguity. Because they are often written without the guidance of legal professionals, the language used can be open to different interpretations. This can lead to significant problems and disputes among your beneficiaries, as one individual might interpret your wishes in one way, while another may have a completely different understanding. This lack of clarity can result in prolonged legal battles and family discord, making them a less desirable option for most people.

Joint Wills: The Shared Estate Plan

Joint wills are typically created by a husband and wife, outlining their shared wishes for the disposition of their assets. A common arrangement is for one spouse to agree to leave their entire estate to the other in the event of their passing. Historically, joint wills were a more common choice due to their perceived efficiency in saving time and money in the estate planning process.

However, times have changed, and the limitations of joint wills have become more apparent. A significant restriction of a joint will is that the surviving spouse generally cannot alter the will without the permission of the deceased spouse’s estate or, in some cases, without the consent of the beneficiaries named in the joint will. 

This inflexibility can create considerable challenges, particularly if the surviving spouse remarries. For example, assets held within a joint will cannot easily be transferred or bequeathed to stepchildren from a new relationship, limiting the surviving spouse’s ability to adapt their estate plan to new family dynamics. For these reasons, joint wills are far less common today, with most couples opting for individual wills or other estate planning strategies that offer greater flexibility.

Oral Wills: The Spoken Word

As the name implies, oral wills are wills that are spoken verbally to one or more witnesses. While they might seem convenient, most states do not legally recognize these types of wills. The primary reason for this lack of recognition is their inherent lack of concrete evidence and the difficulty in accurately deciphering and verifying the testator’s true intentions. Without a written record, there is significant room for misinterpretation, forgetfulness, or even fraudulent claims.

Generally, oral wills are only considered acceptable in very limited and extraordinary circumstances, such as when a person is on their deathbed and facing imminent demise, and there is no opportunity to create a written will. Even in these rare situations, strict legal requirements typically apply, and proving the validity of an oral will can be an arduous process, often leading to challenges and disputes among potential beneficiaries.

Wills vs. Trusts: Understanding the Differences

Both wills and trusts are invaluable tools in estate planning, designed to manage and distribute your assets. However, they operate under different principles and offer distinct advantages. The fundamental difference lies in their timing and how they function. Wills only become effective upon your passing. They are essentially a set of instructions for the probate court to follow in distributing your assets after your death.

Trusts, on the other hand, can be effective during your lifetime or become effective upon your passing, depending on the type of trust created. A trust involves transferring ownership of assets to a trustee, who then manages those assets for the benefit of designated beneficiaries according to the terms of the trust agreement. This allows for greater control over asset distribution, potential avoidance of probate, and can offer privacy that a will does not. While both are set up while you are alive, a will’s power only truly kicks in after your death, whereas a trust can provide ongoing management and protection of assets both during your life and beyond.

Different Types of Trusts: Beyond the Basics

Just as there are various types of wills, a diverse range of trusts exists to cater to specific estate planning needs. Each type of trust offers unique benefits and serves different purposes. For instance, an irrevocable trust is a powerful tool for protecting your assets from creditors and can also offer significant tax advantages. 

With an irrevocable trust, once you transfer assets into it, you generally give up your ownership rights to those assets. A named trustee manages these types of trusts, ensuring they are administered according to your instructions and for the benefit of your beneficiaries. This loss of direct control is often balanced by the asset protection and tax benefits it provides.

Special Needs Trust: Protecting Vulnerable Beneficiaries

As mentioned earlier, a simple will is not suitable if you need to establish a special needs trust. If you are concerned about the financial well-being of a beneficiary with a disability, a special needs trust is an indispensable legal arrangement. These trusts are specifically designed to enable your beneficiaries to receive financial support from the trust without jeopardizing their eligibility for state or federal public assistance programs, such as Supplemental Security Income (SSI) or Medicaid.

Without a properly structured special needs trust, an inheritance could be considered an asset by government agencies, making the beneficiary ineligible for crucial public benefits. This could leave your loved one without the essential financial assistance they rely on for medical care, housing, and other necessities. 

Therefore, if you have a beneficiary with special needs, it is absolutely critical to contact a reputable estate planning attorney to ensure the trust is meticulously drafted to comply with all relevant laws and regulations, safeguarding your loved one’s access to vital governmental support. The complexity of these trusts necessitates expert legal guidance to avoid inadvertently disqualifying a loved one from essential benefits.

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.

A Step-by-Step Guide on How to Make a Living Will

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What Is a Living Will?

Living wills are quite different from the typical wills you might think of. They have nothing to do with bequeathing assets or property. In fact, a living will is a medical document also known as an advance directive.

An advance directive allows a person to put their end-of-life wishes regarding medical care into a legally binding document. The purpose of a living will is to make sure a person gets the treatment they desire in the event they become incapacitated and cannot communicate their wishes.

How Do Living Wills Work?

Advance directives are common in every state. Individuals can fill out a form detailing their wishes, or they can work with a lawyer to draft their living will. It is up to the person how much detail they provide in the document.

Some of the more common directives include palliative care and extraordinary measures.

Palliative care refers to measures taken to decrease pain and suffering. Extraordinary measures can refer to something like resuscitation. Some people elect palliative care but reject extraordinary measures.

By putting these directives in their living will, a person can rest assured the doctors will have to follow these orders.

For a living will to be valid, it has to meet certain state requirements. It will likely need to be notarized, and often living wills require having a witness present.

You can revoke a living will at any time. It is yours to change and do with what you see fit.

As soon as you sign your living will, it can take effect. Or it can go into effect once the person can no longer communicate their wishes. Either way, medical caregivers3 will rely on your personal communication with them for as long as you are coherent.

Do I Need a Living Will?

Thinking about the end of our lives is awful. Still, every adult can benefit from having a living will. A living will is especially important for those living with a terminal illness.

If you are about to undergo major surgery, it’s also a good idea to have a living will in place.

If you become incapacitated and there is no living will, your doctors will ask your nearest living relatives (spouse, children, siblings, parents) to make medical decisions for you.

That’s a lot to ask of your family members while coping with the possibility of losing you. It can also cause rifts to develop between family members who disagree about the appropriate course of action.

If you haven’t talked to your family about your end-of-life wishes, they are in a trickier position because they don’t know what you would want.

Additionally, there are some states in which family members do not have complete authority to make decisions on your behalf without a living will.

In that case, your family may need to get a court order for certain medical actions. It’s also not uncommon in that situation for doctors to decide which family member to listen to. It can all get very complicated very quickly.

What Are the Benefits of a Living Will?

Now that you understand some of the risks involved in not having a living will let’s talk about the many benefits. We’ve narrowed it down to seven benefits for the sake of expediency, but rest assured, there are more.

Establish Power of Attorney

A medical power of attorney is a legally binding document that gives the responsibility and power of decision-making to whomever you decide to trust with your end-of-life health care decisions.

If you become incapacitated or too ill to advocate for yourself, your power of attorney will advocate on your behalf. Sometimes this person is called a healthcare agent or a healthcare proxy.

It’s essential that you choose a power of attorney you trust with your life since they will literally have your life in their hands.

Prevent Family Disputes

The reality is that family members don’t always agree. When you make a living will, you eliminate the chance of your relatives disagreeing over what kind of care you should receive.

Reduce Burden on Surviving Family Members

When you specify your desires, it makes it a lot easier for your surviving family members to cope with what’s happening. Knowing that you are getting the exact treatment you want will give them reassurance.

Without a living will, every choice your family members face will add to their grief and suffering. Additionally, medical treatments like long-term care can be incredibly costly. Making decisions ahead of time can minimize your cost of care and save your family from a financial burden.

Know Your Outcomes

There is no way to predict when you might become ill or incapacitated. Accidents happen, and diseases turn up without warning sometimes. When you have a living will, you don’t have to wonder what will happen.

Authorize Treatments

Lots of medical procedures require prior authorization from the person receiving the treatment. A living will gives you the opportunity to authorize treatments in advance just in case something happens.

Refuse Treatments

A living will also gives you the freedom to refuse treatments you don’t want. For example, if you aren’t comfortable with the idea of being on life support, you can refuse it in your living will.

Peace of Mind

Overall, having a living will gives you peace of mind. You and your family will feel better knowing everything is taken care of, and you will get the treatment you want when the time comes.

How To Make a Living Will: Step By Step

If the idea of writing a living will still sounds overwhelming, you can relax. We’ve broken it down into seven relatively simple steps for you to follow.

Decide Whether To Hire a Lawyer

An estate planning attorney who knows the laws in your state can help you create a thorough advance directive that covers all the bases.

Estate lawyers understand the living will format and requirements. They’ll make sure to ask the questions you might not think of on your own.

It’s also perfectly fine to make a living will on your own. There are several resources out there, including the National Hospice and Palliative Care Organization, which has a downloadable state-specific form you can fill out.

Know Your State’s Laws

Whether you hire a lawyer or write your living will on your own, it is crucial that you follow the requirements in your state. For residents of South Carolina, it is important to be familiar with the state’s Death With Dignity Act.

In most states, you must be at least 18 years old to create a living will. You also need to be of sound mind. Some states require witnesses and notarization.

Decide What You Want

It is your choice what to include in your living will. You can decide what kinds of treatment to authorize and what to refuse.

Most living wills express desires related to life-prolonging care, food and water, and palliative care.

It’s not easy to decide what kind of care you’ll want at the end of your life. It can be difficult to make decisions without taking into consideration the wishes of your surviving loved ones because it affects them too.

For more ideas, take a look at this complete guide on what to include in your living will.

Revise Your Living Will As Needed

What you put in your living will can change. You may have a different perspective as you grow older. It’s perfectly fine to change your advance directive if you choose.

Share Your Living Will

It’s a good idea to share your living will with select people. Your family, doctor, and health care proxy are good places to start.

Make Copies

Make a few copies of your living will, just to be safe. You should give a copy to your doctor and one to your health care proxy. Then store the original in a safe, secure place where your family can access it as needed.

What is a Simple Living Will in South Carolina?

Creating a simple living will in South Carolina is a thoughtful step to ensure your healthcare wishes are honored if you are unable to communicate them yourself. It’s a key part of what’s known as an advance directive, giving you control over future medical treatment decisions.

Understanding a Simple Living Will

A simple living will, often referred to in South Carolina as a “Declaration of a Desire for a Natural Death,” is a legal document. Its primary function is to state your preferences regarding medical treatment, particularly life-sustaining procedures, should you become terminally ill or be in a permanent vegetative state with no reasonable hope of recovery. It is distinct from a traditional will, which deals with the distribution of your property after death.

Purpose of a Simple Living Will

The main purpose of a living will is to provide clear guidance to your healthcare providers and loved ones about the medical care you wish to receive, or not receive, in end-of-life situations. This removes the burden of difficult decision-making from your family during an emotionally challenging time and ensures that your personal values and wishes about medical intervention are respected. It serves as your voice when you cannot speak for yourself.

Key Decisions Covered By a Simple Living Will in SC

A simple living will in South Carolina typically addresses your desires concerning the use of life-sustaining procedures. These can include decisions about:

  • Cardiopulmonary Resuscitation (CPR): Whether you wish to be resuscitated if your heart or breathing stops.
  • Mechanical Ventilation: Whether you want to be placed on a breathing machine.
  • Artificial Nutrition and Hydration: Whether you wish to receive food and water through tubes.
  • Other Life-Sustaining Treatments: This can encompass other medical interventions that would only prolong the dying process without a reasonable expectation of recovery.
  • Pain Management and Comfort Care: While focused on withholding life-sustaining measures, a living will can also indicate your desire for comfort care to alleviate pain.

It’s important to note that a living will in South Carolina becomes effective only when your attending physician and one other physician certify that you have a terminal condition or are in a permanent vegetative state and your death would occur without life-sustaining procedures.

Eligibility and Requirements for a  Simple Living Will in SC

To create a valid simple living will in South Carolina, you must meet certain requirements:

  • Age: You must be at least 18 years old.
  • Sound Mind: You must be of sound mind, meaning you understand the nature and effect of the document you are creating.
  • In Writing: The living will must be a written document. Oral statements are not legally binding.
  • Signature and Witnesses: You must sign the living will in the presence of two witnesses. Specific rules apply to who can be a witness; generally, they should not be individuals who would inherit from you, your attending physician or their employee, or anyone financially responsible for your medical care. At least one witness cannot be an employee of the healthcare facility where you are a patient.
  • Notarization: While not always strictly required for validity, having the living will notarized can make it “self-proving,” which can simplify the process of it being accepted.

Creating Your Simple Living Will in South Carolina

Creating a simple living will involves careful consideration of your values and preferences regarding end-of-life care. You can obtain standard forms provided by the state or utilize resources from healthcare providers or legal aid. Many people choose to consult with an attorney to ensure the document accurately reflects their wishes and meets all legal requirements in South Carolina. Once completed and properly witnessed and/or notarized, it is crucial to share copies with your healthcare providers, your designated healthcare agent (if you have a healthcare power of attorney), and trusted family members. Keep the original in a safe, accessible place. Periodically reviewing and updating your living will is also advisable to ensure it still aligns with your healthcare desires and personal circumstances.

Where Can I Get a Living Will from in Greenville, SC?

A living will, officially known as a “Declaration of a Desire for a Natural Death” in South Carolina, is a cornerstone of thoughtful estate planning. It serves as a vital legal document, empowering individuals to articulate their preferences for medical treatment, especially regarding end-of-life care, in the unfortunate event they become unable to communicate these critical decisions themselves. 

For residents of Greenville, SC, understanding the available resources for establishing such a document is essential for securing peace of mind and ensuring one’s wishes are honored.

The South Carolina living will come into effect when an individual has a terminal condition or is in a persistent vegetative state, and life-sustaining measures would only prolong the dying process. 

It allows you to explicitly state whether you wish to receive interventions like artificial nutrition and hydration. South Carolina law has specific stipulations for a living will to be valid: the individual must be at least 18 years old and of sound mind, and the document must be in writing. Crucially, it must be signed in the presence of two witnesses and a notary public, with one witness potentially also serving as the notary. 

Strict rules govern who can be a witness, excluding relatives, medical personnel involved in your care, those financially responsible for your care, and beneficiaries of your estate or life insurance. If you are a patient in a hospital or nursing home, an ombudsman from the S.C. Ombudsman’s Office must also serve as a witness. It’s important to remember that a living will is not effective during pregnancy in South Carolina.

A living will is distinct from a last will and testament (which dictates asset distribution after death) and a healthcare power of attorney (which appoints an agent for broader medical decisions if you are incapacitated). While a living will can designate an agent to enforce or revoke it, this power is typically narrower than that granted by a healthcare power of attorney.

Here are the primary avenues for obtaining a living will in Greenville, SC:

Greenville, SC Estate Planning Attorneys

This is widely considered the most reliable and highly recommended approach. Experienced estate planning attorneys in Greenville offer invaluable, personalized guidance. They can meticulously draft your living will to ensure it precisely reflects your unique wishes, no matter how complex, and rigorously adheres to all intricacies of South Carolina law. Beyond the living will itself, these legal professionals can integrate it seamlessly into a comprehensive estate plan, which typically includes a healthcare power of attorney, a durable power of attorney for finances, and a last will and testament. This holistic approach ensures all aspects of your future care and asset management are coordinated and legally sound.

Greenville boasts numerous reputable law firms specializing in estate planning. Directories such as Justia and Super Lawyers can provide listings, with examples like Dobson Law Group and Moon Law being prominent. A consultation with an attorney offers the opportunity to delve into the nuances of these documents, clarify any uncertainties, and make informed decisions that will withstand legal scrutiny. The cost of legal services may vary, but the peace of mind and assurance of legal validity often outweigh the expense.

South Carolina Legal Services (SCLS)

For eligible low-income residents across South Carolina, including those in Greenville, South Carolina Legal Services (SCLS) provides a crucial lifeline. This non-profit organization offers free legal assistance for a broad spectrum of civil matters, which often encompasses the preparation of wills and other vital life planning documents like living wills. To inquire about eligibility and services, individuals can contact their Greenville office directly or utilize their statewide intake line. It’s important to note that SCLS typically has specific income and asset guidelines that applicants must meet to qualify for their pro bono services. Their assistance can be invaluable for those who might otherwise face barriers to accessing essential legal planning.

Healthcare Providers and Hospitals

Many healthcare institutions and systems, such as Prisma Health, a major provider in Greenville, offer resources related to advance directives, including living wills. They often provide general information, educational materials, and even standard forms, such as the official South Carolina “Declaration of a Desire for a Natural Death.” While these resources are beneficial for understanding the general scope and format of a living will, healthcare providers typically advise patients to consult with an attorney for personalized legal advice. The forms provided by hospitals are usually generic and may not fully capture specific, nuanced wishes or address complex family dynamics. Nevertheless, these resources serve as an excellent starting point for familiarizing yourself with the document and initiating discussions about advance care planning.

Online Legal Resources and Templates

The digital age offers a plethora of websites providing free or low-cost living will templates specifically tailored for South Carolina. These online platforms can be a convenient initial step for individuals seeking to draft their own documents. However, caution is paramount when using generic templates. While they may cover the basic legal requirements, they often lack the flexibility to accommodate unique circumstances or detailed personal preferences. South Carolina law specifies particular language and formatting for living wills, and even minor deviations or omissions in a self-prepared document could inadvertently render it invalid or ineffective when it truly matters.

If you choose to use an online template, it is highly advisable to have a South Carolina estate planning attorney review the completed document. This professional review can identify any potential flaws, ensure the document’s legal validity, and confirm that it accurately and comprehensively reflects your intentions. The relatively small cost of a legal review can prevent significant complications and distress for your loved ones during a difficult time.

Beyond Obtaining the Document: Crucial Steps

Simply obtaining a living will is only the first step. To ensure its effectiveness, several other crucial actions must be taken:

  • Open Communication: Have frank and open discussions about your wishes with your closest family members and, most importantly, your primary care physician. This ensures that everyone involved understands your desires and can advocate for them if you become incapacitated.
  • Strategic Distribution of Copies: Once your living will is properly executed, make multiple copies. The original should be given to a trusted individual, such as your appointed healthcare agent (if applicable), or kept in a secure, accessible location at home. Provide copies to your primary care physician, any specialists, and other close family members. Crucially, avoid storing the only copy in a safety deposit box, as it may not be readily accessible in an emergency.
  • Regular Review and Updates: Life circumstances, medical conditions, and personal preferences can change over time. It is highly recommended to review your living will periodically, ideally every few years or after significant life events such as a new medical diagnosis, marriage, divorce, or the birth of a child. South Carolina law allows you to revoke or amend your living will at any time as long as you are competent.

In essence, while various pathways exist for acquiring a living will in Greenville, SC, engaging with a knowledgeable estate planning attorney provides the most robust and personalized assurance that your end-of-life wishes will be clearly articulated and legally enforced. For those with financial constraints, South Carolina Legal Services offers invaluable support. Ultimately, the objective is to create a legally sound and comprehensive document that provides profound peace of mind, ensuring your medical preferences are honored and alleviating potential burdens on your loved ones during challenging times.

Important Considerations:

  • Discussion with Family and Physicians: Regardless of where you obtain your living will, it’s vital to discuss your wishes with your family members and your primary care physician. This ensures that everyone involved understands your desires and can advocate for them if needed.
  • Distribution of Copies: Once your living will is properly executed, make several copies. Provide the original to a trusted individual (like your appointed healthcare agent, if applicable), and give copies to your primary care physician, other healthcare providers, and close family members. Keep a copy in a safe, accessible place, but not in a safety deposit box where it might be difficult to retrieve quickly in an emergency.
  • Review and Update: Life circumstances change, and so might your medical preferences. It’s advisable to review your living will periodically (e.g., every few years or after significant life events like a new diagnosis, marriage, or divorce) and update it as necessary. You can revoke a living will at any time if you are competent.

Do You Need a Living Will in SC?

Right now, writing a living will might feel uncomfortable to think about. In the long-term, you’ll be glad you learned how to make a living will and got it done before too late.

You and your loved ones can rest easy knowing the tough decisions are already made, and you will get exactly the care you desire. Contact De Bruin Law Firm today to schedule a free consultation to discuss your advance directive.

What Is Estate Planning?

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Did you know that only 33% of Americans have a will or living trust? In fact, since the beginning of the pandemic, the number of 18 to 34-year-olds with estate plans increased by 50%.

Whether you’re 18 or 80, everyone needs an estate plan. No matter how many assets your own, estate planning protects your loved ones and is a powerful way to create a legacy.

But what is estate planning exactly? Keep reading to learn more about how an estate planning attorney can help you make plans for the future.

What Is Estate Planning?

Estate planning is simply the process of making a clear plan for your assets. A will or trust is a plan for the management or transfer of your estate after your death or incapacitation. This ensures that your affairs are handled the way you want.

A will is a legal document that provides instructions around an individual’s property. This also includes making a plan for all of your assets including:

  • House, land, or cars
  • Bank or retirement accounts
  • Stocks or investments
  • Jewelry or furniture
  • Digital assets (online and email accounts)
  • Digital property (virtual currency, reward points, domain names)

Estate planning is not just about your finances and property. It also encompasses decisions around guardianship, custody of minor children, and medical actions if you become incapacitated and can’t make your own decisions.

If you die without a will, state laws of descent and distribution will determine who receives your property. In South Carolina, this means that your estate is subject to the state’s inheritance laws or intestate succession laws. While this usually means that your property will go to your closest living relatives, it can also be a time-consuming and expensive process for your eventual heirs.

All in all, a will ensures that whatever happens next your interests are protected.

Key Steps for Creating a Will

Everyone over the age of 18 should invest in creating a plan. From social media accounts to land, everyone owns assets. An estate plan guarantees that everyone knows your wishes.

Planning a will also include naming an executor, choosing beneficiaries, and setting up funeral arrangements. This also encompasses planning for potential estate taxes. A properly prepared estate plan will lay out your wishes, prevent misunderstanding, and ensure everything is done in the most tax-advantaged manner.

While a lot of steps go into the planning process, there are a number of key steps in the process including:

  1. Taking an inventory of everything you own
  2. Determining what type of estate plan you need
  3. Choosing a guardian for yourself, children, or pets
  4. Establishing directives like Durable Power of Attorney and executor
  5. Naming beneficiaries for assets that don’t already have them designated
  6. Partnering with a highly reviewed estate planning lawyer
  7. Creating, signing, and storing your plan
  8. Updating your estate planning documents as needed over time

While estate planning can feel overwhelming, it can also be a straightforward process when working with the right partner. Consulting an estate planning attorney at the beginning of your planning journey can save you a lot of time in the long term.

Estate Planning Documents and Taxes

There are a number of documents that make up an estate plan. Each item works together to create a clear plan for your final wishes.

Common planning documents include:

  • Guardianship
  • Will
  • Living Trusts
  • Financial Power of Attorney
  • Durable Power of Attorney
  • Advance Healthcare Directive
  • HIPPA Authorization
  • Intestate Succession Plan

Taxes also play a significant role in the estate planning process. The goal is to leave as much as you can for your heirs. The estate planning process includes tools to pass assets while avoiding hefty taxes.

South Carolina does not have an inheritance, estate, or gift tax. At the same time, there are other state and federal laws a lawyer can help you navigate. For example, federal laws do apply to gifts over $16,000 in a single calendar year.

Strategies that protect assets like AB trusts, estate freezing, education funding strategies, and charitable contributions can considerably reduce state and federal taxes.

Appointing the Right Executor

An executor of a will is the person legally named to take responsibility for your wishes. The executor legally administers an estate. This includes following instructions in will documents, ensuring assets are distributed, and estimating the value of the estate as determined by the Internal Revenue Code.

The executor is also responsible for paying debts and taxes.

An executor can either be a family member, lawyer, or accountant over the age of 18. They also must have no prior felonies. Working closely with an estate planning attorney can help you avoid intricacies around co-executors, disputes with heirs, and personal liability exposure.

Common Mistakes to Avoid

It can be easy to put off estate planning because it can seem complicated, costly, and confusing. Additionally, low-cost estate planning strategies can have long-term negative consequences for you and your loved ones.

Because a will captures your future plans, it’s essential to find the right partner. A cautious attorney will help you avoid future misunderstandings, delays, and inaccuracies.

Common mistakes to avoid include:

  • Not regularly updating a plan over time
  • Not planning for potential disability or long-term care
  • Not thinking through the full implication of taxes
  • Not having liquid assets that can be converted into cash
  • Not putting children’s names on deeds to property
  • Not making gifts during your lifetime

Find an Estate Planning Lawyer

If you’ve wondered “what is estate planning” in the last year, you are not alone. Americans across the country are investing in estate planning services because it’s the only legal tool to create a lasting legacy. Today is a great day to start thinking about how you can use a will to execute your future wishes.

If you are looking for a trusted local partner in Greenville, South Carolina, the De Bruin Law Firm is here to guide you throughout the estate planning process. We believe in delivering preeminent legal services based on sound and strategic legal counsel.

Contact us today to schedule a consultation and learn how we can put our years of local experience to work for you.

How Can an Estate Planning Lawyer Help You?

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As you get older, the importance of developing an estate plan increases dramatically. However, according to a recent survey, only 42% of Americans have a plan for their estate.

Looking ahead at end-of-life situations feels grim, but you need to have a plan for what you leave behind. Should you pass intestate, meaning without a will, the state will be in charge of distributing your assets.

This sort of planning involves a significant amount of legal paperwork, intimate knowledge of estate planning laws, and a sound strategy. For this, you need an estate planning lawyer to guide you through the complex process of preserving your legacy.

The Duties of an Estate Planning Lawyer

It should be obvious that estate planning lawyers are attorneys who specialize in estate planning. That means their chief responsibility is assisting you in your end-of-life preparations. They ensure that your loved ones receive the benefits you’ve decided to pass along.

Start your estate planning with an attorney as soon as you’re able. Your estate plan needs to account for so much more than the money you’re leaving to loved ones. It may include designating guardianship, determining what to do with a business you own, and making determinations on financial assets like stocks.

You need the help of an attorney to guide you through the plan-making process.

Develop a Will

Writing a will is a critical aspect of estate planning. While you can write one on your own, enlisting the help of a qualified estate planning attorney will make the process much easier.

An attorney builds a will that uses specific language, can help the will stand up to contestation, and ensures that your assets are distributed in the way that you desire.

Will writing can be complex, and it’s easy to make mistakes. Unfortunately, a minor oversight could put your entire estate in jeopardy.

Establish a Trust

While wills typically go into effect in the event of your passing, a trust can go into effect immediately. Another key difference is that a will must go through the probate process and become public record, while a trust remains private.

Your lawyer may determine that establishing a trust is a more appropriate measure.

With a trust, you’ll name a trustee who will be responsible for distributing the assets named in the trust according to its outlined terms.

Assistance with Taxes

Inheritance and estate taxes can quickly drain any funds you pass along to your family members. This may leave them without the financial support you planned to provide for them.

An estate planning lawyer will work with you and your loved ones to navigate these complicated tax laws and help you minimize the tax liabilities associated with estate planning.

Powers of Attorney

Should you become incapacitated and unable to make decisions on your own, a lawyer can help establish powers of attorney so a loved one can act on your behalf. This is especially important if you’re someone’s primary caregiver, as you need to ensure that they’re provided for.

Situations When You Need an Estate Planning Attorney

In addition to their most common duties, an estate planning lawyer can aid you and your family members in a number of complex situations.

Updating Your Plan

Family dynamics are ever-changing, so you may deem it necessary to make changes to your end-of-life plan. Fortunately, a lawyer makes the process simple.

You may want to leave assets to a specific family member, add a new beneficiary like a grandchild or step-child, or exclude someone from your will.

Some members of your family may prove themselves too irresponsible to manage their inheritance. You may also need help navigating laws that prohibit non-immediate family members from receiving benefits.

Interstate or International Assets

Dealing with your state’s estate laws is complicated enough, but the process becomes even more difficult if you have assets in another state or another country. You’ll have to abide by the laws in those states and countries as well as the ones where you currently reside.

Without professional legal help in this situation, it’s almost impossible to ensure that your assets are protected and distributed in the manner you desire.

Succession for Your Business

If you’re an entrepreneur and own a small business or a stake in one, you need to ensure that your business doesn’t fall into the wrong hands when you pass. An attorney will help you determine your business’s succession plan and ensure that an appropriate individual takes the reins.

Protecting Your Will

Since wills go through the probate process, certain situations allow interested parties to contest the validity of your will. The responsibility of defending the will then falls to your named executor.

An experienced attorney can help ensure that your will is able to stand up to contestation. They can include a powerful no-contest clause that renders anyone who contests a will unable to receive benefits.

Establishing an Irrevocable Trust

While many estate plans allow you to modify them, an irrevocable trust cannot be changed. Due to the permanence of such a trust, it’s advised you consult with an attorney.

Irrevocable trusts have a few unique advantages and can certainly benefit your loved ones. They may help someone who depends on you for primary care retain their medical benefits, help a beneficiary who needs financial aid minimize costly estate taxes, and can protect your assets from debtors who come to collect from your estate.

An Estate Planning Lawyer Keeps Your Assets in Order

Planning your estate is a difficult thing to do, and it’s advised you start the process early. Consult with an estate planning lawyer so your beneficiaries don’t have to worry about what happens to your assets after your passing.

The best estate planning lawyers will help you develop a plan for your financial assets. They’ll determine if you need a will or trust. Finally, they can help you through all of the complex legal situations surrounding estate law.

Looking to hire a lawyer to help with your estate planning? The De Bruin Law Firm is ready to help. Schedule a consultation 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.

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