Since 2007, the legal professionals at InSight Law have been serving clients throughout Virginia, the District of Columbia, and Maryland in all matters of trust and estate planning, business planning, and other related services....
Continue readingWhen a loved one dies, family members often react in one of two different ways – (1) the family comes together during a difficult time to honor the memory of their loved one or (2) members of the family begin disputing who gets what and the family becomes embittered and divided. Estate disputes among family members often occur when the decedent’s estate plan is vague or has conflicting provisions. For example, what happens if the Last Will and Testament or Trust says one thing about an asset, but a joint account is structured in a way that makes it impossible to comply with the directives in the Will or Trust? A common example is if a father has a Last Will and Testament that states everything should be divided equally among or between his children, but also owns a joint bank account with just one child named as the co-owner. Do the...
Continue readingOne of the best estate planning tools you can utilize is a living trust. Establishing a trust allows your loved ones to avoid lengthy and complicated probate and may save your family money in administrative expenses and taxes. So how do you set up a living trust? The requirements of a trust to be considered legally valid include: You need to have the intent to create a trust. This is a fairly simple requirement to meet by stating your intent in the trust document. You need to have the testamentary capacity to create a trust. This means you need to have the mental capability to create and sign the trust document. Your trust must have a specific, legitimate purpose (e.g., for management of assets in your estate plan). The trust must convey some form of property. This means you cannot simply create a trust and it be barren. Future interests in property...
Continue readingRandy Pausch was an accomplished academic who taught computer science at both the University of Virginia and Carnegie Melon University. He became known across the country after giving a heart-wrenching “last lecture” to students at Carnegie Melon making him a Lou-Gehrig-like symbol of the beauty and briefness of life, according to the New York Times. Professors at Carnegie Melon are sometimes asked to give lectures on what wisdom they would impart if they knew it was their last chance. Hence, the title, “last lecture.” Dr. Pausch accepted that challenge after learning he had only a few months left to live. Dr. Paush’s advice to attendees of his “last lecture” was simple and clear – have fun and approach life with childlike wonder. Here is a condensed version of his lecture that he presented on Oprah Winfrey's show: https://www.youtube.com/watch?v=BODHsU3hDo4 Metaphorical Message in a Bottle Dr. Pausch also spoke of the immense love he had his wife and...
Continue readingCommon question: Can my spouse disinherit me or leave me out of their will? If you reside in Virginia, the answer is no. There are laws in place that protect surviving spouses from being disinherited and left with absolutely nothing after a spouse passes away. The legislature passed an “elective share” statute. This law allows a surviving spouse to claim a portion of a decedent’s estate if: (i) the decedent died without a will; (ii) the spouse is omitted from the will, or (iii) the decedent explicitly disinherited the surviving spouse in their will. A spouse is eligible to exercise their right to an elective share even if they were separated from the decedent and a divorce was pending. If the couple was still legally married at the time of death, the surviving spouse is eligible to claim an elective share. Prior Law For over 25 years, the law in Virginia allowed a surviving...
Continue readingThe estate tax (also known as the "death tax") may be on the proverbial chopping block with President-elect Donald Trump ascending to Commander-in-Chief, along with a Republican-controlled Congress. Most, if not all, Republicans oppose the estate tax. President-elect Trump’s tax plan expressly calls for an outright repeal of the tax and imposing a capital gains tax on assets left to heirs above $10 million, according to Forbes.com. The estate tax is generally not an issue for most people due to the sizable exemptions afforded under the tax code. However, people often make the mistake that estate planning is the same thing as estate tax planning. Rather, estate tax planning is one component of estate planning but there are many other issues your family must deal with on death as it is a major life event and you still will need to deal with local governments, financial institutions and family dynamics. Here is...
Continue readingAt InSight Law, our focus is always on education. We are constantly striving to educate our clients, their families, and advisors around the community. One thing we stress is trust “funding”. Trust funding involves the coordination of all your assets with your trust. This is to ensure all the instructions you lay out in your trust will apply to your assets in the event of a disability or a death. We often see clients that have setup a trust several years ago and never done anything with it. It eventually becomes just a pretty binder on a shelf. Then, a disability or death occurs and the family goes into that pretty binder and discovers it is rather useless. However, if your assets are properly coordinated with your trust, the trust assets will be managed by the next person you have named as trustee upon your death or disability. This makes a...
Continue readingAs new businesses are starting out, it can be difficult to establish a steady cash flow to cover expenses. Business owners often want to “lend” their business money here and there to make sure the company stays operational. In many cases, where the business only has one member or owner, these loans go undocumented and no interest is paid when the principal is paid back. Once you decide to use your personal funds to invest in your business, you’ll need to work with your accountant to determine if the money should be treated as equity or as a loan to the business. Either way, the transfer of funds between owner and business should be well documented in the company’s accounting records. An equity investment, commonly referred to as a capital contribution, is when the owner transfers money into the business only for an increase in the owner’s equity. This is not a...
Continue readingThe D.C. Council is debating legislation that would allow doctors to prescribe lethal doses of prescription medication to terminally ill patients. The “Death with Dignity Act,” introduced by Council member Mary Cheh made it out of a five-member committee by a 3-2 vote. Council member Cheh introduced the bill to give “dying patients greater choice and control over their final moments,” according to the Washington Times. “In the face of imminent death, meeting a patient’s individual needs and wishes compassionately should be our top priority. If a dying person wishes to peacefully end his or her life rather than endure prolonged pain and suffering, we should not stand in their way,” said Council member Cheh. Here is an ABC News report discussing the proposed legislation: https://www.youtube.com/watch?v=NjPkYRxyjjg No matter where you stand on the issue of assisting a patient with ending their life, it is important to know that there are many ways to prepare if you...
Continue readingWhen I sat down to write this letter I did not expect to get emotional, but when I stared at the screen to think about what I would say I realized I will not always be here with you. I love you so much it hurts me to think of not being here with you. You are not even six months old and you have the whole world and rest of your life in front of you. Below are some ideas and lessons that have helped your father. Some of these lessons were taught to me by my parents, siblings, teachers and friends. Others were hard earned lessons that cost me dearly with either time or money. 1. You create your own reality. You can decide to be happy or be sad. You can decide to challenge yourself or waste time. You can achieve as much or as little as you want. You...
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