ESTATE PLANNING AND ADMINISTRATION – BE PREPARED FOR THE UNFORESEEN
Life throws us curve balls that you may never be prepared for. Estate planning provides a way for people to have some security in knowing that important life decisions will be planned for, and the planning devices will be enforceable under Kentucky law, such as trusts, wills and guardianship appointments, among others. Whether you want to plan for future medical care, distribution of certain assets, or a transfer of ownership of a business upon someone’s death, estate planning can provide you peace of mind that the inevitable consequences of future life events are already taken care of.
We often hear individuals say that they do not own enough to need an Estate Plan. An estate doesn’t have to be in the millions! Everyone has an estate and it includes your home, autos, stocks, bank account, personal collections and furniture. Make sure you take the time to create an estate plan that protects your family. With proper estate planning you, and not the government, decide how your affairs are handled for your family.
IF YOU DIE WITHOUT A PLAN, THE STATE DECIDES WHO RECEIVES YOUR ASSETS
Kentucky law, for instance, states that without a will, your estate goes first to your children, then to your parents, then to your siblings and finally to your surviving spouse! With a proper estate plan you avoid this disposition scheme and you decide who receives your assets.
IF YOU WAIT TOO LONG, YOU MAY LOSE THE ABILITY TO MAKE A PLAN
As estate planning lawyers, we see many situations where clients are unable to plan because of incompetency caused by disease and illness. It is important that an estate plan be put into place early in life so as to convey your wishes and to avoid the government from dictating everything.
REVOCABLE LIVING TRUSTS ARE CRUCIAL TO A COMPREHENSIVE ESTATE PLAN
Implementing a Revocable Living Trust as part of your estate plan ensures there is NO court action necessary to transfer your assets upon your death and allows your surviving spouse and/or other heirs to immediately receive their inheritance. It also allows you to dictate who will receive such assets and the way in which they receive them. This is very important as it allows you to protect the inheritance you leave for your loved ones from taxes, spousal rights (assets are protected from in-laws / divorce), creditors and ensures your loved ones are the only beneficiaries of your estate. Additionally, with proper use of a Revocable Living Trust, the need for attorneys can be greatly minimized. Lastly, a Revocable Living Trust allows you to decide out of the public view and without court intervention, who will be in charge of administrating the inheritance you leave your loved ones.
One Question We Get Asked A Lot Is Whether It is Best to Use a Will or a Trust
Using a Revocable Living Trust is Definitely the Best Option
If You Have a Will Your Family Goes Through Probate
Probate is the court supervised and lengthy procedure that removes the name of a deceased person from assets and transfers them to one’s heirs. There are many problems with Probate:
• All claims, real or imagined, must be settled in court
• Probate takes time… many months or even years and the incurrence of unnecessary attorney fees and court costs
• Probate fees… 4% to 8% of the estate value are typical
• Probate is public, so the whole world will know your affairs
• A Will is of no help if you become incapacitated
If You Use a Revocable Living Trust There Will Be NO PROBATE
A Revocable Living Trust is the sure fire way to pass along your estate to your heirs without lawyers, courts or the probate system. It also allows your assets to be transferred immediately without the lengthy time and high costs of traditional probate. There are many benefits of using a Revocable Living Trust:
• Keeps you in total control for as long as you live and are competent
• Eliminates court interference if you become incapacitated and can’t manage your own affairs
• Allows you and not the government to dictate who is in charge and where your assets go upon your passing
• Allows your heirs to do final settlement of your estate without cost or delay
• Allows all your affairs to remain private and minimizes taxes
WHAT IS ESTATE PLANNING?
Our seasoned attorneys will evaluate what assets you have to determine what type of estate is best for you upon your passing. This process involves the decision to set up trust accounts, create wills, appoint guardians for your minor children in the event of unexpected death, among other estate planning tools.
Along with an estate and administration of an estate comes a cost. If you do not have a large amount of assets, it may not be necessary for you to have a formal estate set up, or the best decision for you may be to have a small estate that only protects specific pieces of property that will not be subject to probate in court, as discussed below. See our probate practice area page for more information on the types of assets that our probated.
HOW YOUR ASSETS CAN DETERMINE WHAT PLAN IS BEST FOR YOU
If you are an individual with a large amount of assets, such as stocks and bonds, real estate, and other savings, our attorneys will help you formulate a plan that adequately protects these significant assets. Along with setting up an estate upon a loved one’s passing comes the responsibility to think about drafting a will. While not required, a will can alleviate many problems that arise among family members upon a loved one’s passing. Our wills practice area page provides detailed information on the drafting of a will and the execution of a will.
Further, our trusts practice page provides you guidance on the different types of trust accounts that may be set up to protect assets and control how and when those assets are distributed. Likewise, if you own a business and want the integrity and value of the business to continue upon your passing, our firm can help you with business succession planning. We also have a practice area page devoted to this particular topic for further, detailed information.
Whether your estate plan involves complex decisions arising from a diverse set of assets, or whether your estate plan involves very basic and easily identifiable assets, it is imperative that a law firm that dedicates estate planning as a practice area is consulted in order to ensure the validity of any estate planning documents that you execute.
SMALL ESTATES
If you do not have many assets, as discussed above, a small estate may enable you to avoid probate proceedings. In Kentucky, if the estate of a decedent is small enough, the administrator or executor may avoid probate proceedings and receive the estate’s assets without opening what is called a formal estate, necessitating the need to go to court and endure probate proceedings.
WHAT IS ESTATE ADMINISTRATION?
Once you have met with one of our attorneys to determine what estate plan is best for you, the next step is ensuring that your estate is properly administered. An individual administers a loved one’s estate once that loved-one has passed away. Under Kentucky law, provided in Chapter 395.00 of the Kentucky Revised Statutes (KRS), a personal representative of the deceased becomes the administrator or executor of the estate, depending upon whether a personal representative was named in a will. If a personal representative is named in a will, then the person is called the executor of the estate. If there is no will, then the personal representative is appointed as administrator of the estate. A court chooses and appoints this person, typically a close family member or heir.
It is important to note that Kentucky law provides that an administrator or executor of an estate be at least 18 years old. In some cases, if the deceased so desires and intends, a minor may be able to execute or administer the deceased’s estate, according to the terms of the will. However, this only occurs in rare cases.
CONTACT GOEING GOEING & MCQUINN TODAY FOR A FREE CONSULTATION
You are taking a step forward by reading and learning about what the law firm of Goeing Goeing & McQuinn has to offer in order to meet your estate planning needs. Our estate planning attorneys allow our clients to formulate a unique, individualized plan that will protect what is most important to them in the future, but with the necessary expertise to ensure the plan complies with Kentucky law, and will be enforceable under Kentucky law. Don’t let an unforeseen event cause chaos and rifts among family members. Be prepared now to alleviate stress later on in life. Our exceptional estate planning attorneys have years of experience helping Kentucky citizens like you create estate plans that meet the wishes and intent of the planner. To find out what plan is best for you, contact one of our attorneys today by calling us locally at (859) 904-2045. We look forward to helping you plan for your future.