Northern Virginia Estate Planning Blog

Wednesday, April 11, 2012

Probate Attorney Fees

Probate Attorney Fees

Probate Attorney: Defined

A Probate Attorney is an attorney that represents a personal representative in the administration of a decedent’s estate or serves as the personal representative for the decedent.

Probate Attorney: Fees Deductible

Probate Attorney fees are generally deductible as an expense of the estate. However, the Probate Attorney fees must be reasonable under the circumstances. Consequently the decedent’s estate will generally be responsible for paying the fees and not the personal representative. However, rules and exceptions apply. 

Probate Attorney: Firm Fees

Our firm is happy to serve as a Probate Attorney to the personal representative of a decedent’s estate. The firm hourly rate is $250 an hour. The firm is willing to serve as the personal representative under limited circumstances and under a different fee structure. Contact us if you have any questions or want to discuss retaining the firm to serve as Probate Attorney. 

Want to get started? Take a look at the Probate Attorney Worksheet & Contact Us about your Free Consultation 

Monday, April 02, 2012

Estate Attorney

Estate Attorney

Estate Attorney Defined: An estate attorney is an attorney that administer’s a decedent’s estate. 

Estate Attorney: What does an estate attorney do? 

The estate attorney is tasked with collecting estate assets, preserving the estate, probating the estate, paying estate expenses, costs, debts and taxes, and distributing estate assets. 

Estate Attorney: Estate attorney as personal representative or counsel

The estate attorney may serve as the decedent’s personal representative or serve as separate legal counsel to the third party personal representative. If the estate attorney serves as the personal representative, the estate attorney’s fees will usually be an hourly rate or certain percentage of probate estate (as established by the Commissioner of Accounts). If the estate attorney is serving as counsel to a personal representative, the estate attorney’s fees are generally hourly.   

Estate Attorney: Expense of Estate

Reasonable Estate Attorney fees, incurred as a result of attorney serving as Counsel,  may be deductible as an expense of the decedent’s estate. The estate attorney’s fees may be deducted if they are reasonable. However, estate attorney fees deductibility is subject to review and approval by the Commissioner’s Office. It is important to consult an Estate Attorney about the deductibility of any estate expense.   

Call Today & Receive a No-Charge teleconference With an Estate Attorney, or Click Here to Email a Call Back Request

Monday, April 02, 2012

Family Trust

Family Trust: A Family trust is a trust created to benefit persons who are related by blood, affinity or law. Generally they are created to protect a beneficiary from taxes, creditors, the government and themselves.

Family Trust: Living or Testamentary

Family Trusts may be created as living trusts or testamentary trusts. A living trust is a trust created by the grantor while the grantor is alive. A testamentary trust is a trust created by the grantor’s will when the grantor’s will is presented to the court for probate (upon the grantor’s death). 

Planning Option: Why choose a living family trust v. testamentary family trust? 

Because a properly funded family living trust can avoid probate and a testamentary family living trust is subject to probate. 

Family Trust: Revocable or Irrevocable

Family Trusts may be revocable or irrevocable. Grantors can create family trusts that are revocable when they are alive (known as revocable or intervivos family trusts). However, when the Grantor dies, that revocable living  family trust actually becomes irrevocable (because the Grantor is no longer alive and able to revoke the family trust).    

Planning Option: While most grantors want the ability to revoke or amend their family trust during life, sometimes a grantor must use a testamentary family trust for a specific planning purpose (e.g., Medicaid Trust Purposes). 

Family Trust: Why

Client’s create family trusts for many different estate planning reasons. Common estate planning reason for creating a family trust have been listed below;

1. Create a Minor Children’s Trust (trust for benefit of minor children)
2. Create a Trust to protect a special needs beneficiary
3. Avoid probate taxes upon death 
4. Asset Protection; beneficiary’s creditor’s  
5. Asset Protection; divorcing spouse 
6. Asset Protection; bankruptcy
7. Asset Protection; Medicaid 
8. Provide for a surviving spouse and children
9. Blended Family: avoid disinheritance
10. Tax Avoidance
11. Privacy

Family Trust: Cost & Estate Planning Fees

Family trusts are not terribly expensive. However they cost more than wills costs. For most people, the costs of not creating a family trust are so excessive that choosing a family trust is an easy decision. 

Family Trust: How to get Started

Give us a call. We are happy to discuss whether a family trust is right for you. We are happy to speak with you at no charge. 

Saturday, March 31, 2012

Estate Planning Real Estate

Estate Planning Real Estate: 

Owners of real estate should consult an estate planning attorney about preventing duplicative probate proceedings and the forced sale of real estate by the court.

Estate Planning Real Estate: What is Estate Planning for Real Estate

Estate planning for real estate involves ensuring that real estate is distributed to the estate beneficiaries at the lowest financial cost and burden. Estate planning real estate transfer techniques include trusts, tenancy by the entireties, joint tenancy and business entities. Two estate planning issues for real estate have been discussed below.

1. Estate Planning Real Estate: Estate Planning Issues (Duplicative Probate)

Real estate is problematic for estate planning purposes. If you own real estate located in another state, then you may likely have to probate your Will in multiple jurisdictions (resulting in significant delays and costs). Because each state has jurisdiction over the real property located within its jurisdiction, the decedent’s Will may have to be probated in every jurisdiction where the decedent owns real property in their own name.

E.G., A is a resident of Virginia. A owns real estate in California, Florida and Texas. A’s Will will have to be submitted to probate in Virginia (home state), California & Texas. 

Estate Planning Real Estate Solution: A could create an estate planning living trust and title each parcel of real estate into that estate planning trust. Consequently, A’s Will may not have to be probated in any jurisdiction (not even Virginia).

2. Estate Planning Real Estate: Estate Planning Issues (Partition)

Real estate may be subject to partition in the hands of your beneficiaries. Partition is the process of dividing and selling real estate in accordance with the respective owners’ interests. Consequently, if you leave real estate outright to multiple beneficiaries, than any beneficiary can bring a partition proceeding to force the other beneficiaries to sell the property. Additionally, that beneficiaries creditors may also stand in the shoes of a debtor beneficiary and force a sale of the land to collect on a debt. 

Estate Planning Issues with Real Estate Partition

• Forced sale of real estate during bad market (loss of gains)
• Land broken up and no longer owned by the family
• Tax consequences on forced sale of real estate
• Real Estate subject to creditors, bankruptcy, divorcing spouses & Medicaid

Estate Planning Real Estate Solution: Create an estate planning living trust and title the real estate into that estate planning trust. Include provisions to prevent sale and creditors ability to get to property. Consequently, real estate could be protected from judicial sale by partition.

Have Questions? Contact our Firm via phone (703.349.2742) or email (contact@oldtownattorney.com)  

Friday, March 30, 2012

Estate Planning Fees

Estate Planning Fees: Generally

Estate Planning Fees vary depending on the complexity of your plan. We have provided our Estate Planning Fees Spring 2012 Schedule (also located below). Additionally, see the discussion below on how estate planning fees are determined. 

Estate planning fees are determined relative to the amount of estate work involved. If a person's estate is Will Based (doesn't include a trust plan), the estate planning fees can be very inexpensive. If a person estate includes a basic trust than the estate planning fees may also be relatively inexpensive.

Estate planning fees increase when we incorporate advanced asset protection or draft great detail into an estate planning document. If you want to restrict a beneficiary's access to the estate inheritance, or protect the estate inheritance from divorcing spouses, Medicaid, Bankruptcy or creditors, your estate planning fees begin to increase. 

The following Spring 2012 Promotion outlines our estimated estate planning fees and costs for two of our basic estate plans. The estate planning fee promotion is limited in scope and duration.  

Click Here Official Pdf Promotional Flyer (feel welcome to email to friends, family, clients & advisors)

Spring 2012 Estate Planning Fees & Costs Promotion

Basic Will Package 

Single Person $700 Married Couple $900

Includes the following:

• Basic Will (excludes detailed specific bequests)
• Financial Power of Attorney (Medicaid Planning Provisions)
• Healthcare Power of Attorney
• Living Will 
• HIPPA Authorizations

Revocable Living Trust Probate Avoidance Plan

Single Person $1000 Joint Trust $1,500

Includes the following:

• Probate Avoidance Basic Trust (excludes detailed provisions)
• Assignment of Tangible Personal Property
• Pour-Over Will
• Financial Power of Attorney (Medicaid Planning Provisions)
• Healthcare Power of Attorney
• Living Will 
• HIPPA Authorizations
• Each Virginia Deed Additional $200 
• Funding Instructions

All estate planning fees subject to change, signed written engagement agreement required, Firm reserves the right to deny representation & other restrictions & limitations may apply

Thursday, March 29, 2012

Simple Trusts

Simple Trusts: What is a Simple trust?

A simple trust does’t have any specific meaning. When I refer to simple trusts, I often am referring to a trust that doesn’t have complex or detailed provisions. A simple trust is appealing to many people because they want to avoid perceived expensive estate planning fees and costs.

Simple trusts: What does a Simple trust do?

Simple trusts are better understood as probate avoidance trusts. Simple trusts pass all assets outright to a beneficiary as soon as practically possible (after decedent’s death). Simple trusts have little to no asset protection. Because simple trusts are probate avoidance tools, than there is no reason to create it after your dead (via WILL). 

Simple Trusts: The problems?

Simple trusts are problematic because they have to be funded correctly. Funding is the process of titling assets into the name of the trust (or making the trust a beneficiary upon death). If they are not funded correctly, probate may likely result and the purpose of the trust would have been defeated. Simple trusts also should generally not hold tax deferred assets because they lack the necessary provisions to avoid a tax disaster. 

Have questions about simple trusts, call our office. We are running a spring 2012 promotion on simple trusts, CLICK HERE for pricing.

Thursday, March 29, 2012

What is a Will?

Will: What is a wIll?

A will is document by which a person directs his or her probate estate to be distributed upon death. Will governs probate assets. Will doesn’t direct your non-probate assets. Will probate assets are those assets that pass by beneficiary or operation of law upon death. 

Will: Execution

Will must comply with certain rules regarding execution for every jurisdiction it must be probated in. A non-holographic will must be signed, witnessed & notarized in accordance with the applicable jurisdictional law. Will must be probated in the jurisdiction where the decedent died for personal property and probated in the jurisdiction where the decedent owned real property (situs or located physically). If the decedent owns a business entity that owns real property, than the Will should govern that asset because under Will law the decedent owns the business entity not the land.

Will: Costs

Will costs and Fees very. However, we have a current spring promotion indicating flat fee fixed prices. Click below for more information. 

Click here for Pricing

Click here for Fees Info

Except when it would be inconsistent with the manifest intent of the legislature, the word "will" shall extend to a testament, and to a codicil, and to an appointment by will, or by writing in the nature of a will, in exercise of a power; and also to any other testamentary disposition.

Every person not prohibited by §64.1-47 may, by will, dispose of any estate to which he shall be entitled, at his death, and which, if not so disposed of, would devolve upon his heirs, personal representative or next of kin. The power hereby given shall extend to any estate, right or interest to which the testator may be entitled at his death, notwithstanding he may become so entitled subsequently to the execution of the will.

No will shall be valid unless it be in writing and signed by the testator, or by some other person in his presence and by his direction, in such manner as to make it manifest that the name is intended as a signature; and moreover, unless it be wholly in the handwriting of the testator, the signature shall be made or the will acknowledged by him in the presence of at least two competent witnesses, present at the same time; and such witnesses shall subscribe the will in the presence of the testator, but no form of attestation shall be necessary. If the will be wholly in the handwriting of the testator that fact shall be proved by at least two disinterested witnesses.

Thursday, March 29, 2012

I Need a Will

I Need a Will: Really?

Answer: Absolutely you need a Will. A will is document by which a person directs his or her probate estate to be distributed upon death. Will governs probate assets. Will doesn’t direct your non-probate assets. Will probate assets are those assets that pass by beneficiary or operation of law upon death. 

I need a Will: How much does a Will Cost? 

Wills cost vary on the level and complexity of your Will plan. If you have basic Will plan, then the costs of a Will can be very inexpensive. A basic Will plan includes a financial power of attorney, healthcare power of attorney, living will, & HIPPA authorizations. Because ii takes the same amount of time to prepare a Will as it takes to prepare all the aforementioned documents, a Will plan is generally a better option for someone looking for a will.

Click Here Simple Will Costs

I need a Will: Do I need a Will Attorney?

Wills are one of the most difficult documents to execute. Because Virginia wants to prevent abuse, the requirements for a Will are extensive. Additionally, because much of you assets pass outside of probate, you need an Attorney to help direct your non-probate assets according to the Will.

I Need a Will Basic Will Package for Spring 2012

Basic Will Package 

Single Person $700  Married Couple $900

Includes the following:

• Basic Will (excludes detailed specific bequests)

• Financial Power of Attorney (Medicaid Planning Provisions)
• Healthcare Power of Attorney
• Living Will 
• HIPPA AuthorizationsIf you are interested in creating a Will, please call me personally. 

Sincerely, 

Luke Lenzi, Esq. 

Thursday, March 29, 2012

Estate Planning Attorney

Estate Planning Attorney:

I am an Estate Planning Attorney. An Estate Planning Attorney may do many things. Estate Planning Attorneys should understand property, asset protection, wills and trusts, and tax law. Estate Planning Attorneys use their knowledge of the law to distribute your estate (your assets) to your beneficiaries. 

Estate Planning Attorney: Coordinating During Life

An Estate Planning Attorney also helps to ensure that if you lose capacity you and your dependents will be cared for. Estate Planning Attorneys plan for financial and business related issues by using Living Trusts & Financial Power of Attorneys. An Estate Planning Attorney plans for medical and health decisions by using a HealthCare Power of Attorney, HIPPA Authorizations and Living Will. 

Estate Planning Attorney: Asset Protection Estate Planning Attorney

An Estate Planning Attorney uses his knowledge of Creditor, Bankruptcy & Divorce Law   to protect assets for your beneficiaries. Asset protection estate planning is very important and there are multiple asset protection estate planning techniques that begin for very to little estate planning fees and costs. Medicaid planning for surviving spouses and beneficiaries is also very important to asset protection estate planning. 

Estate Planning Attorney: Estate Planning Attorney Tools?

An Estate Planning Attorney has many tools of the trade. The Estate Planning Attorney can use the aforementioned estate planning documents. Also Estate Planning Attorneys frequently use business entities, special tax trusts, annuities, disclaimers, marital agreements and other property agreements. An e Estate Planning Attorney’s tool bag is very large and contains many other tools. 

Contact us & speak with an Estate Planning Attorney today.

Monday, March 26, 2012

Trusts for Children

Call Today & Receive A No-Charge Teleconference About Whether A Trust for Children Is For You, or Click Here to Request An Attorney Call-Back 

Trust for Children; Because your child is the most important Asset 

Trusts for Children Defined: protects children by using the child's inheritance to give each child the best chance of personal and financial success.

Trusts for Children; Most Important Estate Planning Issue

Its simple and inexpensive to create trusts for children. For a parent of a young child, its the number one reason to estate plan. Sadly, many attorneys fail to advise clients to create trusts for children.

Trusts for Children; Why?

Trusts for children are trusts designed to address the likely catastrophe if a child's parent dies. When a parent dies, or both parents, the child experiences a terrible lifelong loss of love and resources. Additionally the child looses the crucial rearing influence that helps form their moral compass and directs them towards a more prosperous path. The child's formative years, which should have been guided by a parent, are now guided by friends and popular culture. Deep feelings of sorrow, pain and injustice further aggravates the problem. 

Trusts for Children; Purpose

The purpose of trusts for children is to give the child the best chance of personal and professional success. Trusts for children use the decedent's financial resources (e.g., life insurance) as a tool to influence the conduct of the child and ensure that the named caregivers (there should be many named) have sufficient assets to care for the child. Trusts for children are designed to protect an immature child from the destructive influence of receiving a large amount of money while simultaneously protecting the assets from caretaker abuse and creditors.

Trusts for Children; Trust Provisions

Trusts for children should be designed to contain trust provisions designed to rear the child in a parental fashion. Trusts for children frequently have the following provisions;

• to protect assets from immature beneficiaries (child gets management control as trustee at a certain age; e.g. 30)
• to promote conduct (pay for college, higher education, trade-school, ect) 
• to inhibit conduct (stop all or certain payments if child joins a cult, develops a drug problem, abuses drugs)
• to provide positive assistance for life events (pay for a wedding, buy a first car, start a business)
• to protect the trust assets from a caregiver wasting trust assets
• to support the caregiver financially (caregiver will have great financial and personal responsibility)

Trusts for Children: Multiple Children & Giving

Trusts for children may be established for one or more children. Sometimes creating trusts for multiple children can be more effective and flexible than trusts for one child. During life, parents give to their child based on need. However they immediately assume that upon death that each child should get an equal share. However I believe the best solutions is a hybrid-solution. While the child is dependent (young, going to college or disabled), consider giving based on need (equitably). When that disability is lifted, consider distributing the remainder more equally. 

Trusts for Children: Cost Effective & Efficient

Trusts for children are not terribly expensive. Estate planning fees are generally based on expectations of attorney time. The parent is best suited to determine what trust provisions to include. If the attorney properly involves the parent in planning, and efficiently collects information, than the estate planning fees should be significantly reduced. 

Trusts for Children: Collecting Information

We collect asset information from the parent via an Estate Planning Worksheet. We help the client select caregivers during a conference. We present the client with a trust Provision Template for their trust for children and allow them to modify and craft the provisions for their child’s care and wellbeing. 

Trust for Children: Selecting Trustees & Caregivers

Trusts for children frequently have caregivers who also serve as trustee. Our position is that while that may work, its generally not preferable. Consider separating the duties of caregiver and trustee in your trust for children. When selecting a caregiver or trustee, the client has much to consider. What make a good candidate for a caregiver may not necessarily be the case for a Trustee. Additionally, by separating the money supply from the caregiver, you can both comfortably provide for the caregiver and protect the trust assets from caregiver abuse. 

Trusts for Children: Grandparents & Extended Families Roles

Trust for children can be created by grandparents and extended family. Consider notifying every person who may likely name you or your child as their beneficiary that you have created a trust for children. By having said person name your trust for children as beneficiary (as opposed to your child), than the money can be directed to the trust for the reasons identified above (as opposed to going directly to the child). 

Trusts for Children; Not just for the rich

Trust for children are not exclusively for the rich. Anybody who has a young child should consider creating a trust for children. Anybody with young children should have life insurance (insuring your future wealth) to provide a security net for your family. Most young people can easily purchase a life insurance policy sufficient to fund the trust for children. Of course, the more assets the parent has, the more necessary the trust for children becomes for a young parent.

Trusts for Children: Getting Started

Trusts for Children are very important estate planning devices. It is easy to get started on your own trust for children. Review some of the paperwork we have provided and give us a call. We are happy to discuss establishing your own trust for children.