18 July

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Under 40? Top 5 Tips for Getting a Jump on Estate Planning.

I know what you’re probably thinking – “I’m not even 40. Why do I need to even think about planning my estate? Isn’t that something I do when I get my AARP card?” Answer: It's never too early to start planning your estate, especially if you have a family or close loved ones. None of us have a crystal ball showing the future. You may think you have decades ahead of you, but the truth is you only have the present. It is important to remember estate planning should involve disability planning too, not just planning for death. The sooner you start planning, the more prepared you are for life's unexpected twists and turns. Below is a list of 5 critically important tips for planning your estate 1. Start right now, regardless of your net worth. You may not have much. You may even be paying off student loans and/or credit...

10 July

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Don’t Let a Random Doctor Decide Your Fate – Establishing an Individualized Disability Panel to Determine If You Are Disabled

Posted by Bobby Feisee

in Bobby's Blog

It’s an unfortunate fact of life – when we get older, we’re at a greater risk of having our mental faculties suddenly decline to the point of being declared mentally incapacitated. This cruel fact applies to everyone, even those of considerable financial means. The heartbreaking end to Casey Kasem’s life was an example. Another example is the continuing legal battle over the mental capacity of Donald Sterling, the soon-to-be-former owner of the Los Angeles Clippers basketball franchise. The capacity of Mr. Sterling is the center of a contentious legal battle. Two neurologists determined that Mr. Sterling was mentally incapacitated and no longer able to conduct his own legal and business affairs, according to ESPN.com. This determination allowed Mr. Sterling’s wife to take over as trustee of the Sterling Family Trust, which included the ownership rights to the Clippers. Mrs. Sterling then quickly sold the team to former Microsoft CEO...

09 July

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Burial Rites – Add To Your Health Care Proxy, Will, or Both?

Posted by Bobby Feisee

in Bobby's Blog

Settling the finances, documents and other important affairs of a deceased loved one can be extremely difficult, even overwhelming. Adding the stress of trying to properly plan a funeral or memorial service just makes the situation even more difficult. This is why you should consider adding burial rites and directives for your memorial service (if you want one) in your will. Obviously, your family and friends want to honor you, but they may not agree on how to best do this. Do not leave it up to them to figure out what’s best. Make their lives somewhat less stressful during this difficult time by providing guidance on what you’d prefer your service, if any, to look like. Additionally, you can grant decision making power to certain individuals to avoid family disputes on the issue. Ok, so let’s say you want to include some directives on your burial rites – do...

27 June

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Big Changes Coming to D.C. Estate Tax Laws

Posted by Bobby Feisee

in Bobby's Blog

Starting in 2016, D.C. residents will be exempt from having to pay estate taxes if their estate is $2 million or less. This is a big change from the current exemption cap of $1 million. However, keep in mind that the language of the new law is somewhat vague. For example, one section of the new law appears to condition the higher estate tax exemption on “available revenue” which means the higher estate tax exemption may not take effect immediately in 2016, but another section implies that the exemption will automatically go into effect in 2016. Check out the actual language of the estate tax bill here. In addition to doubling the exemption cap, there will be 11 tax brackets above the $2 million threshold with a top tax rate of 16 percent for estates valued at $10 million. The new law also plans to eventually increase the D.C. estate tax exemption to...

18 June

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Simultaneous Death and Life Insurance Proceeds

Posted by Bobby Feisee

in Bobby's Blog

Beneficiary designations are pretty clear in life insurance policies. Basically, if you have life insurance and you pass on, the proceeds from your policy go to your designated primary beneficiary. This could be your spouse, your child, or close friend, etc. But what happens if you, and your primary beneficiary, pass away at the same time? This may sound far-fetched, but it is definitely possible. For example, if you named your spouse as your beneficiary and you both wind up getting killed in a car accident. If both you and your beneficiary die at the same time, it can create problems. To avoid these difficulties, many states have adopted a law known as the Uniform Simultaneous Death Act. Under this Act, if there's no clear evidence of who died first – you or your beneficiary – then your life insurance policy is distributed as though you survived the beneficiary. This means...

13 June

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Your Rights When a Hospital Agent Insists that You Use their Advance Medical Directive

Posted by Bobby Feisee

in Bobby's Blog

My estate planning team gets asked this question quite often – what can be done if a hospital agent or administrator says that you have to use their Advance Medical Directive. Here’s the answer: Politely tell them that you have a legal right under state and federal law to create your own Medical Directive. As long as the directive complies with state law, it should be honored. State laws can include formalities like having notary, two witnesses, being of sound mind when completed, etc. Some states even include laws which say if a healthcare facility refuses to follow your directive, they must transfer you to a facility that does. If a facility does refuse a Directive in compliance with state law, you should contact an attorney. Why is it important for you to use your own Advance Medical Directive? Because it empowers someone of your choice, like a trusted friend or family member,...

23 May

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Dealing with Digital Assets – A Growing Need

Posted by Bobby Feisee

in Bobby's Blog

If a loved one suddenly passes away, family members, or the estate planning attorney for the decedent, have to organize the decedent’s assets. The usual assets that come to mind include the decedent’s home, vehicle, IRA, checking account, family heirlooms, etc. However, a growing need is finding and organizing the decedent’s digital assets. Certain digital assets can be overlooked, or even lost, during the settlement of an estate. These online accounts are a new class of personal property that may have monetary worth in addition to sentimental value. According to a survey by McAfee, the average internet user has nearly $40,000 in unprotected digital assets. Membership in online loyalty programs have increased more than 26 percent over the past two years and the value is estimated at 2.65 billion, according to the 2013 Colloquy Loyalty Census. This means there may be billions of dollars worth of rewards that may be...

16 May

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Important Estate Planning Tool: The Virginia State Bar’s Senior Citizens Handbook

Posted by Bobby Feisee

in Bobby's Blog

If you or a loved one is approaching “senior citizen” status, you should take a moment and download the Senior Citizens Handbook, a publication of the Virginia State Bar. You may be thinking, “why does this guy want me to have free legal advice?” Well, it’s because I want visitors to this site to be as fully informed as possible.I know what it’s like to take care of an elderly loved one. That’s why I highly recommend this handbook – it can help answer important, common questions when it comes to preparing for retirement and entering “senior” status. The handbook is a resource for seniors, their loved ones, and caregivers which provides an overview of important topics and issues directly affecting seniors. The handbook also includes practical advice on issues such as Medicaid, Alzheimer’s Disease, landlord-tenant relations, and so forth. The Thirteenth Edition of the handbook was released in January...

26 April

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Big Estate Planning Mistakes Many People Make (But Can Easily Be Avoided)

Posted by Bobby Feisee

in Bobby's Blog

Properly organizing your financial and personal assets, planning for disability, and leaving your legacy should be is the central goals of estate planning. It is important the focus stays on your personal goals and making the transition smoother for your loved ones. Unfortunately, many people who opt to “go it alone” and not consult with an estate planning attorney, make some bad (and totally preventable) mistakes that adversely affect their estate plans. Below are three common estate planning mistakes that occur, unfortunately, far too often: 1. Never taking the time to even come up with an estate plan. This one really bugs me, but it’s an undeniable fact – thousands of people fail to take the time to create an estate plan. The result? When you pass away, the laws of intestacy will apply and there’s no guarantee that your estate will be distributed to the people you care about most....

21 April

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UGMA/UTMA Accounts – Pros and Cons

Posted by Bobby Feisee

in Bobby's Blog

If you have young children and are thinking of ways to pay for their college education, you may be considering an UGMA or UTMA account. I know, you’re probably thinking, “what the heck is an UGMA or UTMA?” Well, it’s an acronym for the Uniform Gifts to Minors Act (or Uniform Transfers to Minors Act, in some states). The difference between UGMA and UTMA is that an UTMA law allows virtually any kind of asset, including real estate, to be transferred to a minor. An UGMA law limits gifts/transfers to the following: bank deposits, securities (including mutual funds), and insurance policies. UGMA/UTMA allows a minor to own securities in an account without having to establish a special trust. The assets in the UGMA account will become available to the minor when they reach the age of majority. The age of majority is usually 18 years of age (it's 18 in Virginia, Maryland,...