The concept of a blended family was once the exception to the norm in America. In today’s modern world, however, blended families are becoming more common than “traditional” families. If you are part of a blended family, you may have “your children”, “his/her children” and “our children”. Ideally, you and your spouse have managed to integrate all the children into the family unit and do not differentiate on a day to day basis. The law, however, does still differentiate. As a result, estate planning takes on a heightened importance.

If you have children from a previous relationship, the other biological parent may have legal rights to the children. If paternity was established, then the other parent likely has legal rights to the child, even if he or she does not exercise those rights. If, for example, your children have lived with you and your new spouse for years without any contact with the other parent, the other parent may still have legal rights to the children in the event of your death. If your desire is for your children to continue to live with your current spouse in the event of your death, you need to make this wish clear to your estate planning attorney while completing your estate plan.

In most cases, a court will look to the non-custodial parent first upon the death of a parent when considering who should have custody of the children. If you feel the other parent is not fit to have custody of your children, or if your children have had no contact with the parent, then you need to discuss your options with an experienced estate planning attorney now, before a court is forced to make decisions after the fact.

If the other parent is no longer living, this does not necessarily mean that your spouse will be given custody of your children either. Again, your wishes will be considered by a court, but only if you express them in the proper legal form. A legal adoption or naming your spouse as guardian.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Many people understand the basic concept of a trust, but aren’t entirely familiar with how a trust is actually administered once it is created. The laws of the state in which the trust was created, as well as the terms of your, trust will dictate the specifics of how your trust is administered; however, there are some commonalities among all trusts.

When you create a trust, you must designate a trustee as well as beneficiaries. The trustee will be responsible for administering the trust while the beneficiaries are the people, pets or entities, who will receive the income generated by the trust and/or the principal assets of the trust. The trustee can be a person or group, such as an investment firm or bank. Regardless of who the trustee is, their job is to administer the trust according to the terms of the trust itself as long as the terms do not violate the law.

Once a trust is legally created on paper, there are a number of practical matters that often need to be accomplished such as opening a bank account or investment account. Tax documents may need to be filed and beneficiaries notified. Administration of the trust requires ongoing accounting of the principal assets and investments. The income generated by the trust assets must be documented and any expenses incurred by the trust paid.

Trust administration also requires distribution of the trust income or principal on a monthly, quarterly or yearly basis in many cases. Upon the termination of the trust, the remaining assets must also be distributed and a final accounting completed. Yearly tax returns are also part of trust administration along with regular contact with the beneficiaries regarding the status of trust assets.

Even a modest trust can require a significant amount of legal and financial expertise. For this reason, many grantors choose to appoint an attorney or law firm as trustee. Even if the trustee is not an attorney, it is generally wise to consult with an attorney as well as a certified public account to be certain the trust is administered in accordance with the state and federal laws and all tax obligations are fulfilled.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

At some point in your life, you may be faced with deciding how to handle a parent who has become incapable of caring for herself or himself. This may be due to a physical incapacity, a mental incapacity, or both. When the child becomes the parent, it can be a confusing and complicated situation. Not only must you make a difficult decision to step in, but there are legal steps that must be taken as well.

Often, when an adult child is required to step in to take over legally for a parent, it feels as though you are taking away your parent’s independence. The decision is never easy, but must be made if necessary. Once you have determined that your parent is not capable of managing his or her own affairs, you will need to seek a court appointed guardianship, conservatorship, or both. Individual states determine both the scope of a guardianship or conservatorship as well as the process by which one may be obtained. In most states, however, a guardianship allows you to make decision over the person of the ward, in this case your parent, while a conservatorship allows you to make decision regarding the estate of the ward. As conservator, for example, you may be able to become the beneficiary of any income or benefits, such as Social Security retirement or disability, owed to your parent. As guardian, you may be able to decide where your parent will live or what doctor he or she will be treated by.

In order to become guardian or conservator, you must petition the appropriate court. You will also need to give notice to any interest parties, including your parent. The court will then conduct a hearing to decide if your parent does, indeed, need a guardian or conservator. If the court agrees that appointment of a guardian and/or conservator is warranted, then the court will decide whether you are a suitable guardian or conservator. Seek the advice of an experienced estate planning attorney if you see the need to become the guardian or conservator over a parent.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

How your property is titled is a crucial consideration when estate planning under normal circumstances; however, it takes on heightened importance when you are part of a blended family. If you are part of a marriage where both spouses have children from a previous relationship, you may wish to pass down property directly to your children and your spouse pass down property directly to his or her children. How your property is titled can directly impact your ability to achieve that goal.

If you die without leaving a valid Last Will and Testament behind, your estate will pass to your heirs through the laws of intestate succession in effect in the state where you lived at the time of death. Your estate at the time of your death will include all property, real or personal, tangible and intangible, in which you have an ownership interest. Although you and your new spouse may have reached an agreement that you plan to view all of your property as joint property, this agreement does not legally make your property joint property. You may, for example, have decided that it made more sense for you to move into your spouse’s home when you were married. If the ownership document is still in your spouse’s name then the home is not part of your estate at the time of death since you have no legal ownership in the property.

In order to make sure that you have a legal ownership share in all property of the marriage, consider titling the property jointly. On the other hand, if you have property that you wish to retain as separate property, you may wish to avoid titling the property jointly. Once you have decided how to title your property, you should still prepare a will in order to ensure that your wishes with regard to the property are carried out in the event of your death.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Purchasing life insurance is often a critical part of estate planning. Although many other factors that impact your estate can change, life insurance is often purchased predominantly because the policy holder believes its value is fixed. By knowing ahead of time how much your life insurance policy is worth, and what it will cost you in premiums, you can adjust the remainder of your estate accordingly. While it is true that many forms of life insurance do provide fixed values, universal life insurance does not.

Universal life insurance is in the class of permanent life insurance along with whole life. This simply means that, unlike term insurance, the policy is guaranteed to remain in force until the maturity date of the policy, usually round age 95 to 100. Term insurance, on the other hand, only remains in effect for a specified period, such as a 10 year term. Unlike whole life, however, universal life insurance premiums are not fixed at the beginning of the contract. The policy holder of a universal life insurance policy may pay as little, or as much, as he or she wishes in premiums as long as the cost of the policy is covered. With a universal life policy, the insurer bills the policy for costs on a regular basis. The policy holder must maintain enough funds through payment of premiums to cover the costs. Additional funds paid as premiums then go toward the cash reserve and death benefit value of the policy.

With a universal life insurance policy, the death benefit and current cash value are constantly fluctuating, unlike a whole life or term life policy. With a whole life policy, the cash value growth rate is fixed at the beginning of the policy as is the death benefit value. With a term policy, there is no cash value, but the death benefit value is fixed. Because the premiums are not fixed in a universal policy, the cash value growth as well as the death benefit are subject to change

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Most people have heard the term “power of attorney”, yet many do not completely understand what a power of attorney is and what the limitations of a power of attorney are.

A power of attorney is a legal agreement whereby you, as the grantor, give the legal power to make decisions on your behalf to another person. The person to whom you give power of attorney is often referred to as your agent. A power of attorney can be general or specific. Any type of power of attorney can also be made durable.

A general power of attorney gives your agent broad power to act on your behalf. As the holder of a general power of attorney, your agent can sign your name to legal documents, make legal decisions and often access your finances. Giving a general power of attorney to someone should only be done after careful thought and consideration.

A specific power of attorney gives your agent the authority to act on your behalf to accomplish a specific task or for a specific reason. For example, you could give someone power of attorney for the sole purpose of completing the sale of a car while you are out of town.

A general power of attorney has no definite termination date. A specific power of attorney terminates when indicated on the document or when the task has been completed. Either type of power of attorney terminates upon the death or incapacity of the grantor. Termination upon the incapacity of the grantor in a traditional power of attorney gave rise to the durable power of attorney. Because a traditional power of attorney terminates right when many people want it to operate, upon their incapacity, the durable power of attorney was created. A durable power of attorney survives the incapacity of the grantor.

Although power of attorney forms are easy to find, consultation with an attorney is recommended given the broad powers that can be conferred by a power of attorney and the serious nature of the circumstances

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Most states recognize some form of advanced directive, often referred to as a health care directive or living will. Understanding the benefits and purpose of a health care directive can help you decide whether executing one should be part of your estate plan.

A health care directive generally allows you to accomplish two important things. First, you may legally appoint someone who will have the authority to make health care decisions on your behalf in the event you become incapacitated and unable to do so. You can also appoint an alternate person in the event the first person is unable to serve as your appointee. In the absence of a legal appointment ahead of time, a court is typically required to make the decision to appoint someone and who to appoint if the need arises.

The second function of a living will is to make known your wishes with regard to specific types of treatment or procedures in the event you cannot express those wishes due to an incapacitation. For example, if you do not wish a blood transfusion or do not want to be resuscitated, you may state those wishes in your living will.

Preparing and executing a healthcare directive is usually relatively simple and will be kept on file until such time as you decide to revoke it or modify it. By executing an advanced directive, you can have the peace of mind to know that your wishes with regard to medical treatment will be followed even if you are unable to express them at some point in time.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Estate planning can be complicated, yet necessary, in order to protect your loved ones in the event of your death. Parents with young children have specific concerns that others may not. One estate planning tool that is often overlooked by parents with young children is the use of a trust. A trust can be an integral part of an estate plan for parents with children that have not yet reached the age of majority.

Although there are many different variations of the basic trust, they all share the same essential elements. A trust requires a grantor, a beneficiary, a trustee and trust funds or assets. Despite what many people think, trusts are not only for those with substantial estates or assets. A trust can be created by anyone and is often an excellent tool for estate planning when minor children are involved.

A trust offers a number of advantages to estate planning for young children. By creating a trust, you are able to appoint a trustee to oversee and administer the trust. This not only allows you to have continued control over the use of the funds even after death, but allows the trust funds to grow over time. When structured correctly, your children may have income to provide for their needs while they are minors as well as a lump sum to inherit when they reach the age of majority, or at a later age as determined by you.

Substantial liquid assets are not necessary to create and fund a trust. Any number of sources can be used to fund the trust, including real property, savings, or even life insurance or retirement proceeds in some cases. Consult with your estate planning attorney to find out whether a trust is a viable option for your particular estate planning needs.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

If you suspect that someone you care about has become the victim of elder abuse, there are a number of steps you should take. First, the local authorities should be contacted. Next, file a complaint with the state licensing agency. Finally, and most importantly, you should take the legal steps necessary to gain control over your loved one in order to remove him or her from the abusive situation.

This last step may sound obvious and easy; however, in many cases it is not as easy at it sounds. Unless your loved one has been declared incompetent, he or she retains the legal authority to make decisions regarding where to live and what to do with his or her finances. Sadly, many victims of elder abuse are too ashamed or afraid to admit the abuse and therefore do nothing to change the situation.

If you believe that intervention is necessary to protect your loved one, you may need to petition for guardianship or conservatorship. Although state laws differ somewhat, in most states a guardian has legal authority over the person of the ward, in this case your loved one, while a conservator has legal authority over the estate of the ward.

Without the legal authority granted by a guardianship or conservatorship, your hands may be tied. As guardian, however, you have the legal authority to decide where your loved one will live and what medical treatment he or she will receive. As conservator, you will have the legal authority to supervise all financial transactions carried out by your loved one. Consult with an elder law attorney if you believe that petitioning to become a guardian and/or conservator may be necessary.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

For most people, the last thing they are thinking about in their 20s is retirement planning. In your 20s is when you typically settle on a definitive career path and land your first “real” job. Thinking about how to fund your retirement in 40 years is likely not at the top of your “to do” list. It should be though, right along with estate planning.

Unfortunately, the days of easy retirement planning went by the wayside many years ago. Pensions are rare these days and the future of the Social Security retirement system is questionable. As a consequence, most people are using various other tools to plan for retirement. If you are lucky enough to have an employer funded retirement plan, then you may only need to supplement that plan; however, starting early is still critical.

The cost of medical care, inflation and housing have steadily increased the projected costs of living comfortably during your golden years. The best way to be sure you won’t have to worry is to start planning as soon as you are able to do so. By maximizing your money now, you should be in a comfortable position when the time comes to retire. Along with started your retirement plan early, be sure to create an estate plan that works with your retirement plan in order to protect your loved ones in the event of your death. The more complex your retirement plan becomes, the more comprehensive your estate plan will need to be in order to account for the variety and complexity of your assets.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.