Arizona Estate Planning

Are You Single with a Minor Child? If So, You Need a Plan

You have a minor child who depends on you for their survival, so you need to make sure that they will be cared for if you are ever unable to care for them. By creating an estate plan, you can address your minor child’s care and custody and provide instructions about how your money and property should be used for their care should something happen to you.

Care and Custody of Your Child

Creating an estate plan allows you to name someone to care for your minor child if you are unable. A child under the age of majority (eighteen or twenty-one depending on your state law) cannot legally care for themselves (unless they have been emancipated). A guardian must be appointed to take care of the minor child if both parents have passed away or are unable to care for the child. It is important to note that if the other legal parent is still alive, that parent may receive custody of the child. However, you need to have a plan in case there is no other legal parent or the other legal parent cannot care for the child. If you do not choose a guardian, the judge will look to state law to determine the appropriate guardian, who may not be the person that you would have chosen.

How do you nominate a guardian?

There are a few different ways to nominate a guardian to care for your child after your death. First, it can be done in a last will and testament (also known as a will). In this document, you can name someone to be your child’s guardian after your death, a person to wind […]

On the Net2023-06-22T12:12:44-07:00May 6th, 2023|Beneficiaries, Common Problems, Estate Planning, Estate Planning for Singles|

What Happens to Elvis’s Legacy Now?

Elvis Presley, the King of Rock and Roll, died in 1977. Like most celebrities of his stature, he left behind a complicated legacy—and a considerable estate. Elvis’s estate, including Graceland, ended up in the hands of his only child, Lisa Marie Presley, who passed away in January at fifty-four years old. It is now set to pass to Lisa Marie’s three daughters.

Several complications could make administering Lisa Marie’s estate a messy affair, however. Personal financial issues, a wide age gap between her children, and a challenge to her will by mother Priscilla Presley cast doubt over what will happen not only to her estate, but the future of Elvis’s legacy.

Lisa Marie: Her Inheritance and Finances

Lisa Marie was born in 1968 to Elvis and Priscilla Presley. Less than a decade later, her father passed away from a heart attack at the age of forty-two. Lisa Marie would die of her own heart problems nearly forty-six years later, in January 2023.

Elvis never lost popularity in the decades following his death—his estate raked in an estimated $400 million last year, as the 2022 Elvis biopic movie helped to boost the value of the estate from around $500 million to more than $1 billion.^[1]

The Elvis Presley Trust

When Elvis died, his estate was placed in a trust, with Lisa Marie, Elvis’s grandmother, and his father as the beneficiaries. Elvis stipulated that Lisa Marie’s inheritance was to be held in trust for her until her twenty-fifth birthday on February 1, 1993. On that date, the trust automatically dissolved, and Lisa Marie inherited $100 million.^[2]

Part of her inheritance was her childhood home, Graceland, which has become a museum and international tourist attraction that generates over $10 million per […]

On the Net2023-04-08T08:47:27-07:00April 20th, 2023|Common Problems, Estate Fights, Rich & Famous|

What to Do with a Loved One’s Used Medical Equipment

After a loved one has passed away and the funeral has been held, the task of sorting through their personal belongings begins. While items with sentimental value or family historical importance may have been distributed to beneficiaries in the estate plan, many more might still be lying around the house.

The question of what to do with a loved one’s remaining possessions is one that every family faces. Some items, like trinkets and personal effects, may be given away to family or friends. Others, including medical equipment, can be sold or donated to charity. From eyeglasses and hearing aids to wheelchairs and at-home hospital beds, there are options for giving used medical equipment a second life.

Death and Decluttering

Even if somebody is careful to declutter during their lifetime, it is unlikely that they will pass away without any possessions. When somebody is dealing with an ailment or just age-related decline, certain medical items are likely to be needed right up until their final moments:

Elder-care or assisted-living products such as bathroom grab bars, shower seats, entryway ramps, and personal alert systems
Mobility aids like canes, wheelchairs, scooters, and walkers
Eyeglasses and hearing aids
Big-ticket medical equipment such as hospital beds, kidney machines, prostheses, ventilators, apnea monitors, and infusion pumps

Family members charged with clearing out the deceased’s home may unwittingly find themselves in control of these left-behind medical items. Nobody in the family may have a use for them, but that does not mean they must be discarded. Provided it is in relatively good condition, the medical equipment can be given to those in need, listed for private sale, or purchased by a dealer.

Donating Used Medical Equipment

The fastest and easiest way to get rid of unneeded medical items […]

On the Net2023-04-08T08:39:08-07:00April 13th, 2023|Common Problems, FAQ|

Garn–St Germain Act: What You Need to Know

Garn–St Germain Act: What You Need to Know

It is important to let your estate planning attorney know if you own real estate that is subject to a mortgage. Most mortgages include due-on-sale clauses stating that, upon the transfer of the mortgaged property, the entire amount of the debt owed on the mortgage is immediately due and payable. Under the Garn–St Germain Depository Institutions Act of 1982^[1] (Garn–St Germain Act), lenders are prohibited from enforcing due-on-sale clauses in some circumstances but not in others. If your estate plan involves the transfer of property subject to a mortgage, it is important to keep this in mind.

What Is the Garn-St Germain Act?

The Garn–St Germain Act is a federal law that allows lenders to enter into or enforce contracts, including mortgage agreements, that contain due-on-sale clauses even if a state’s constitution or laws, including their judicial decisions, prohibit them. However, the Garn–St Germain Act lists nine situations in which due-on-sale clauses are not enforceable, including some transfers that may be relevant to your estate plan. In the nine situations specified, lenders may not enforce due-on-sale provisions in real property loans “secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home.”^[2]

This generally means that the statutory exceptions apply to due-on-sale clauses in mortgages on residential—not commercial—real estate with less than five apartments. Although we will not cover every situation involving mortgages on residential real estate in which lenders are not permitted to enforce due-on-sale clauses, the following exceptions are especially relevant when you are creating or updating your estate plan:

A […]

On the Net2023-04-08T08:39:56-07:00April 8th, 2023|Common Problems, FAQ|

Disability Panels to Take Back Control

When you create an estate plan, it is an admission of your mortality. But even if you accept that you are not going to live forever, you may be slower to face the possibility that you could become incapacitated before you die.

Although it can be an uncomfortable topic, incapacity is an essential but often overlooked part of drafting revocable living trusts. Placing your money and property in a living trust can accomplish many estate planning objectives, including planning for incapacity. Should you suffer a disability, your mental competency could come into question. At that point, it will need to be determined if a backup trustee should take over the management of your living trust.

Who, exactly, makes this key determination is very important. Naming a disability panel in your trust allows you to exert control over your incapacity plan by choosing a group of people you trust to determine if you are incapacitated.

Disability Is Common among Older Americans

Today, Americans can expect to live longer than previous generations. Living longer does not always mean living better, though.

Older Americans are much more likely than younger Americans to have a disability, according to the Pew Research Center.^[1] About one-quarter of Americans, and roughly half of Americans over age seventy-five, report living with a disability. For eighteen- to thirty-four-year-olds, that number is just 6 percent. Around 13 percent of thirty-five- to sixty-four-year-olds say they have a disability.

Disability can befall anyone at any age. However, the longer you live, the more likely you are to suffer from a disability, and certain disabling conditions such as Alzheimer’s are age-related. Currently, more than 6 million Americans are […]

On the Net2023-03-21T08:30:58-07:00March 28th, 2023|Common Problems, Estate Planning, Healthcare Directives|

Ways Your Will Can Be Revoked

A will (which should be accompanied by other important documents such as healthcare and financial powers of attorney, as well as an advance healthcare directive) is a foundational estate planning document. However, according to Gallup, only 46 percent of US adults have a will.^[1] This number has remained consistent in Gallup polls dating back to 1990. If you are among the minority of Americans with this crucial estate planning document, then you probably recognize the risks of not having a will.

But simply creating a will does not mean that your estate plan is complete or final: your will may need to be updated from time to time. It may even need to be revoked and redrafted entirely.

Usually, revoking a will is a purposeful act on the part of the will maker. But many states have laws that automatically revoke a will, or portions of it, in specific situations. Certain actions by a beneficiary can also revoke that person’s interest in the will.

What Is in a Will?

A will—more formally known as a last will and testament—provides instructions about who should receive a person’s money and property after the person’s death and who they would like to care for their dependents. A basic will should specify the following:

who receives personal assets (e.g. property, bank account balances, investments, business interests, and personal possessions) and in what amount
an executor or person responsible for making sure that instructions in the will are carried out
guardian arrangements for minor children

When a person passes away, their will goes through a legal process called probate, usually in a probate court located in the county where […]

On the Net2023-03-21T08:33:59-07:00March 8th, 2023|Common Problems, Do It Yourself - Fail, FAQ, Wills|

Aaron Carter: A Life Gone Too Soon

Musician Aaron Carter, a former child pop star and younger brother of Backstreet Boys singer Nick Carter, died in November at the age of thirty-four.

Aaron’s untimely passing is one of the more tragic celebrity deaths of 2022. It is also one of the messiest from an estate planning perspective. The late singer, who struggled with substance abuse and family discord, died unmarried and without a will, raising questions about the value of his estate, what will become of his remaining fortune, and who will provide care for his young child.

Aaron’s one-year-old son stands to legally inherit everything, and other family members have reportedly said they do not plan to dispute his inheritance. But there is still the issue of who will manage his son’s money until he comes of age. Because Aaron did not have an estate plan, this matter will be decided by the courts.

From Child Stardom to Bankruptcy

Aaron Carter did not achieve the stardom of his older brother Nick, but he was a highly successful performer in his own right. He opened for the Backstreet Boys at age nine and shortly thereafter landed a record deal. Between his music and an acting career that featured television and Broadway appearances, Aaron made over $200 million before turning eighteen, he said in 2016.^[1]

But growing up as a celebrity was not without difficulties. Despite a decade of nearly nonstop touring and music making, Aaron learned on his eighteenth birthday in 2005 that he had only $2 million in his bank account and owed around $4 million in taxes.^[2] In 2013, hoping for a fresh start, he filed for bankruptcy. His […]

On the Net2023-02-25T07:51:53-08:00February 7th, 2023|Common Problems, Rich & Famous|

Three Things to Do If Your Spouse Dies with a Will or Trust with a Disclaimer Provision

Losing your spouse is one of the most difficult things you might face in life. Although it is important to take time to grieve, there are also some crucial steps you need to take as soon as possible to address your spouse’s accounts and property and secure your own future.

If your spouse’s will or trust, or your joint trust, has a disclaimer provision, one of the time-sensitive decisions you will need to make is whether to disclaim (refuse to accept) money or property that you will otherwise receive as a trust beneficiary. State and federal law set forth the requirements that you must meet in order for the disclaimer to work as intended. Under Internal Revenue Code (I.R.C.) § 2518, a qualified disclaimer is simply an irrevocable, unqualified refusal to accept a gift or bequest of a property interest. The disclaimer allows the interest in property to pass to someone other than the beneficiary who originally would have received it, and it is not considered a taxable gift from the first beneficiary to the next beneficiary in line. There is a special exemption under I.R.C. § 2518(b)(4) that allows a surviving spouse to benefit from disclaimed money or property, but taking advantage of the exemption requires careful planning.

A qualified disclaimer must meet the following requirements:

It must be made in writing as required by state law.
It must be made within nine months after your spouse’s date of death.
You must not accept the property interest or its benefits.
The interest must pass to someone other than you without any direction by you (the person who is disclaiming the interest).

There are several steps you should […]

On the Net2023-02-25T13:00:44-08:00February 6th, 2023|Common Problems, Estate Planning|

Why the Knives May Come Out at Death

The box office success of the 2019 murder mystery Knives Out led to franchise status, with Glass Onion, the first sequel, released in late 2022. The original Knives Out featured whodunit intrigue surrounding the murder of a wealthy author and surprise changes to his will.

While Knives Out endeared itself to fans because of its interesting characters and dramatic plot twists, the more mundane topic of estate planning is central to the movie. In Knives Out, there are several common estate planning issues that may trigger real-life family drama fit for a Hollywood movie.

Estate Planning Issues in Knives Out

Knives Out begins with the death of Harlan Thrombey, an internationally famous novelist who has just celebrated his eighty-fifth birthday at his country mansion, surrounded by family. Detective Benoit Blanc has been anonymously hired to investigate the death, and several family members have a murder motive, including his son-in-law, his son, his grandson, and the widow of his late son.

It turns out that Harlan’s death was a suicide, but that is just one thread in a jumbled knot of family dysfunction. Drawn into the fray is Marta Cabrera, Harlan’s nurse and the sole beneficiary of his estate. The large inheritance is revealed at a dramatic will reading that, although used as a dramatic device, nonetheless raises real-world estate planning lessons.

Lesson 1: Do Not Assume That You Will Receive an Inheritance When Your Family Member Dies

Harlan is survived by two living children (Linda and Walt), a widowed daughter-in-law (Joni), and three grandchildren (Ransom; Joni’s daughter, Meg; and Walt’s son, Jacob). Each of his presumptive heirs received financial support from him to some extent. And they […]

On the Net2023-02-25T09:41:58-08:00February 4th, 2023|Common Problems, Estate Fights, Estate Planning, Lawsuits|

Why You May Still Have to Open a Legal Probate Proceeding

Probate is the legal process for recognizing the validity of a person’s will after their death and appointing the nominated decision maker. This person, also known as an executor or personal representative, administers the deceased person’s estate and ensures that their money and property are transferred to the beneficiaries specified in their will. If someone dies without a will, probate is the process by which a court declares who that person’s heirs are and appoints an administrator who will distribute the person’s money and property as required by state law. Because the probate process can sometimes be expensive and lengthy, and the details of the deceased person’s estate may become part of public court records, many people create an estate plan designed to avoid probate by using a revocable living trust. However, there are some circumstances in which a probate proceeding may still be necessary.

A Third Party Refuses to Accept Your Affidavit

Affidavit for small estates. Nearly every state allows smaller estates (the amount depends on the state) to bypass the typical probate proceedings, or at least use a quicker and simpler probate process. In those states, after a certain number of days have passed following a person’s death, the beneficiary of a small estate may submit to a person, bank, or other institution a small estate affidavit stating that they are entitled to the money or property, along with a death certificate. The affidavit is usually required to be notarized, and typically the person or institution to which it is submitted can rely on the affidavit to transfer the money or property to the beneficiary. The person or institution will not be held liable if it is later revealed […]

On the Net2023-02-25T13:04:28-08:00January 27th, 2023|Common Problems, Estate Planning, Probate|

Issues to Consider If You Want to Leave Your Retirement Account to a Minor Child

Your retirement account may be one of the most valuable things you own. Many people consider naming their children as the beneficiaries of these accounts because they think it is a way of easily transferring their wealth if something happens to them. However, there are some factors that make this type of transfer more complicated than you may think, especially if your child is a minor.

Can a Minor Be Named Individually as a Beneficiary?

Yes, you can name your minor child as the beneficiary of your retirement account or as the contingent beneficiary who would receive it if the primary beneficiary you have named on the account dies before you pass away. However, if your child is a minor when you die and they inherit your retirement account, a court may have to appoint a guardian or conservator to handle any money distributed to the child from the account. This will take time and money, and the guardian or conservator the court chooses may not be the person you would have chosen. You can avoid this by proactively naming a conservator or guardian for your minor child in your will.

Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, most beneficiaries must receive an entire retirement account within ten years of the account owner’s death. However, minor children of an account owner fall into a special category of beneficiaries (called eligible designated beneficiaries or EDBs). Their mandatory ten-year payout period does not begin until they turn twenty-one, meaning the beneficiary must receive an entire inherited retirement account at age thirty-one. In the meantime, however, they are required to take required minimum distributions (RMDs), which will likely be […]

On the Net2023-02-25T12:33:50-08:00January 25th, 2023|Beneficiaries, Common Problems, Estate Planning|

What Is the Effect of an Unrecorded Deed?

A deed is a legal document used to transfer real property ownership rights from one person or entity (the grantor) to another (the grantee). In many cases, this transfer occurs due to the property being sold, with the seller transferring the property to the buyer. Typically, a deed is recorded with the local county recorder of deeds. Recording the deed gives the public notice that the grantee now legally owns the property.

Not recording a deed can cause problems for the grantee. They may be unable to obtain a mortgage, insure the property, or sell it. Even more problematic, an unrecorded deed may make it possible for the grantor to sell the property to a buyer and subsequently sell the same property to a different buyer. This could result in the property being sold out from under the original buyer who failed to record the deed.

Whether this last scenario is legally permissible depends on state laws that determine which party prevails when there are conflicting ownership claims to a property.

Title versus Deed

A deed is a document that confers property ownership rights associated with title to a property. Both the deed and title to the property transfer from the grantor to the grantee when real estate is conveyed. But a title and a deed are not the same thing.

Title refers to a property owner’s legal rights, such as the right of possession, the right of control, and the right of disposition. Title is not a document—it is a legal right of ownership.

The deed, on the other hand, is a physical document that transfers ownership of property from the grantor to a grantee. It […]

On the Net2023-02-25T12:33:02-08:00January 7th, 2023|Common Problems, Estate Planning, FAQ|

Don’t Let Your Cryptocurrency Give You and Your Loved Ones Nightmares

Although cryptocurrency may be one of the latest investment strategies with great potential, for some individuals and their loved ones, investing in cryptocurrency has not gone as planned. The following stories are each a little different, but they all underline one simple warning: if you own cryptocurrency, you need a plan.

Impact of Volatility on Estate Administration

Matthew Mellon, an investor and businessperson who was a member of two prominent families, the Mellons and the Drexels, died in April 2018.^[1] At the time of his death, his estate was estimated to be worth approximately $200 million. Much of his wealth came from a $2 million investment in the cryptocurrency XRP, managed by the company Ripple.

Mellon died with an outdated will that did not mention his cryptocurrency. It was later discovered that he kept the keys to his cryptocurrency on various devices throughout the country and under other people’s names. Fortunately, his lawyers were able to access his cryptocurrency by working with Ripple. However, it is extremely rare for anyone to be able to access cryptocurrency without a plan.

Because the value of the XRP fluctuated by approximately 30 percent in the weeks after Mellon’s death, it was crucial that the XRP be liquidated quickly to pay his outstanding debts, income tax obligations, and estate tax. However, Mellon had entered into an agreement with Ripple that limited the amount of XRP that could be sold at a given time. This delayed the wrapping up of his affairs. By the end of 2019, his estate was worth less than half of the original value at his time of death because the XRP had lost about two-thirds of its […]

On the Net2023-02-25T12:31:54-08:00December 22nd, 2022|Common Problems, Crypto, Digital Legacy, Estate Planning, FAQ|

Red Flags When Hiring a Professional To Be Your Trustee

When you form a trust as part of your estate plan, one of the most important decisions you will make is who will oversee the trust’s management when you are no longer able to manage it (also known as your successor trustee). Because a trustee’s work may be time-consuming, complicated, and risk liability, many people who create a trust consider naming a professional fiduciary as their trustee. Keep in mind that if you ask your estate planning attorney to serve as your successor trustee, you should ask for a separate engagement letter from the one you sign engaging them to create your estate plan. When looking to hire a professional to serve as your trustee, the following are several red flags you should keep in mind.

Do They Have Adequate Resources?

A professional’s agreement to act as your trustee does not guarantee that they have the resources needed to administer your trust properly. Be proactive about asking questions. Trust administration is an important job, and you should satisfy yourself that the person you appoint as your trustee is well-equipped to fulfill the role. The following are some of the important functions you should ask the professional about:

The professional you hire should have a good system for trust accounting. Trust funds must be held in a separate account that is not commingled with their business’s funds, and there must be a system in place to keep separate records of income and principal, disbursements from the account, receipts, capital transactions, and more. The professional trustee has a duty to provide information to the trust’s beneficiaries, and current income or principal beneficiaries are entitled to a detailed accounting to enable them […]

On the Net2023-02-25T12:31:03-08:00December 21st, 2022|Common Problems, FAQ, Peace of Mind, Trusts|

Important Issues to Address Before You Leave on Vacation

Getting ready to embark on your next great adventure? Before you zip up the last suitcase, here are five issues you need to address to protect yourself and your loved ones.

Do you have a foundational estate plan? Has it been reviewed?

An estate plan is a set of instructions memorialized in legal documents that explains to your trusted decision makers and loved ones your wishes about your care, the care of any dependents, and how your money and property should be handled.

Last will and testament

Depending on your unique situation and needs, you may have a last will and testament (also known as a will) as the foundation of your estate plan. This document allows you to name someone to wind up your affairs (i.e., gather your belongings for safekeeping, create a list of everything you own, pay your outstanding bills and taxes, and give the remainder to the individuals and charities you have chosen). You can also name a guardian for your minor children if you have any. Because a will takes effect only at your death, using a will to outline your wishes will likely still require your loved ones to go through the probate process (a court process that can be expensive, time-consuming, and public) to carry them out.

Revocable living trust

On the other hand, you might have a revocable living trust as the basis of your estate plan. A revocable living trust is an entity that owns your accounts and property. In order for your trust to own your accounts and property, they will either be retitled in the name of your trust (instead of in your sole name) or […]

On the Net2023-02-25T13:05:57-08:00December 15th, 2022|Common Problems, Estate Planning, FAQ, Peace of Mind|

Legal Perils of Gifts and Joint Ownership between Unmarried Couples

Cohabitation without marriage is becoming more common in the United States. Among eighteen- to forty-four-year-olds, the percentage of adults who have lived with an unmarried partner at some point is now higher than the percentage of adults who have been married.

When you live with a romantic partner, it may feel as though you share everything. And to some extent, this may be true, legally speaking. For example, there is a trend toward unmarried couples buying homes together. While this might make economic sense, especially at a time when household budgets are being stretched, it can also create legal complications.

Gifts that are given purely out of affection can create unintended consequences as well. This includes gift taxes and the relinquishing of control over the gift once it is accepted. Your heart might be in the right place, but without understanding gifts and joint ownership, you could be making a decision that you will come to regret.

Unmarried Partners and Cohabitation: A New Norm

Decades ago, it was rare—and even scandalous—for unmarried couples to live together. However, like many aspects of American life, this is changing.

Over the last two decades, the number of unmarried partners living together has almost tripled from 6 million to 17 million.^[1] Among young adults ages eighteen to twenty-four, cohabitation is now more common than living with a spouse.^[2] Among adults ages eighteen to forty-four, 59 percent have cohabitated as compared to 50 percent who have ever been married. Since 2002, the share of U.S. adults who are married is down. Over the same period, the share of adults living with an unmarried partner has more than doubled.

On the Net2023-02-25T13:08:27-08:00November 25th, 2022|Common Problems, Estate Planning, Estate Planning for Singles, FAQ, Gifts|

The Death of Anne Heche: Lessons for Estate Planning

Anne Heche’s recent accidental death was a shocking reminder of how the everyday can quickly turn into the tragic. While driving through the Mar Vista neighborhood of Los Angeles on August 5, 2022, Heche was involved in a car crash and succumbed to her injuries a week later. The official cause of death was burns and smoke inhalation.

As the media reflects on her legacy as an actress and celebrity, and as some corners of the internet are awash with conspiracy theories around the circumstances of her death, Heche’s situation also provides some tough lessons about the need for estate planning.

Not having a will can place surviving family members in a difficult position and undermine the privacy that public figures try so hard to maintain. An email was presented to the court purporting to appoint her ex, James Tupper, as the administrator of her estate and dividing everything equally among her two children to be given to them at the age of twenty-five.^[1] It has been speculated that this document will not meet the standards of a valid will in California, however, because it was not in Heche’s handwriting, she did not sign it, and there were no witnesses. Rather than Heche’s estate being distributed according to her final wishes, it is now subject to state law and a very long and public probate court proceeding.

Heche’s Legacy

When Heche passed away on August 11 at age fifty-three, it spurred many questions. Was she really involved in three separate car accidents in a span of thirty minutes? Why did her crash into a two-story home cause such a massive fire? How was it possible that it […]

On the Net2023-02-25T12:44:12-08:00November 1st, 2022|Common Problems, Estate Planning, Rich & Famous|

The Pros and Cons of Probate

In estate planning circles, the word “probate” often carries a negative connotation. Indeed, for many people—especially those with valuable accounts and property—financial planners recommend trying to keep accounts and property out of probate whenever possible. That being said, the probate system was ultimately established to protect the deceased’s accounts and property as well as their family, and in some cases, it may even work to an advantage. Let us look briefly at the pros and cons of going through probate.

The Pros

For some situations, especially those in which the deceased person left no will, the system works to make sure all accounts and property are distributed according to state law. Here are some potential advantages of having the probate court involved in wrapping up a deceased person’s affairs:

It provides a trustworthy procedure for redistributing the deceased person’s property if the deceased person did not have a will.
It validates and enforces the intentions of the deceased person if a will exists.
It ensures that taxes and valid debts are paid so there is finality to the deceased person’s affairs rather than an uncertain, lingering feeling for the beneficiaries.
If the deceased person had debt or outstanding bills, probate provides a method for limiting the time in which creditors may file claims, which may result in discharge, reduction, or other beneficial settlement of debts.
Probate can be advantageous for distributing smaller estates in which estate planning was unaffordable.
It allows for third-party oversight by a respected authority figure (judge or clerk), potentially limiting conflicts among loved ones and helping to ensure that everyone is on their best behavior.

The Cons

While probate is intended to work […]

On the Net2023-02-25T13:54:13-08:00October 19th, 2022|Common Problems, Estate Planning, Probate|

What if I Cannot Find a Beneficiary?

When someone has named you as the executor (also known as a personal representative) of their will or the trustee of their trust passes away, you are obligated to distribute that person’s money and property according to the document’s terms to the designated beneficiaries. (For convenience, the roles of executor and trustee will be referred to throughout this article as the general term fiduciary.) Sometimes, perhaps because of a family conflict or just falling out of touch, the whereabouts of a will or trust beneficiary are unknown. What should you, as the fiduciary, do if you cannot locate a beneficiary of the will or trust?

As a fiduciary, you have an obligation to use reasonable diligence to locate a missing beneficiary. What is considered reasonable depends on the circumstances, including what efforts have been made to locate the missing beneficiary and how much money or property is at stake.

At a minimum, a fiduciary should call the last known phone number and send notice of the estate or trust administration to the last known address. If this initial effort yields no results, then the fiduciary should contact known family members or friends for information that may lead to the beneficiary’s location, search social media and people-search sites on the Internet, publish notice in the newspaper, check property records, and otherwise use their best efforts to locate the missing beneficiary.

If the value of property to be distributed to the missing beneficiary is very small, then the fiduciary will likely not be required to spend a lot of the estate or trust’s money to locate the missing beneficiary. If, however, the property value is significant, then the fiduciary may have to […]

On the Net2023-02-25T13:20:13-08:00October 5th, 2022|Beneficiaries, Common Problems, FAQ, Probate|