11 June

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Adding a Password Manager to Your Estate Plan

Estate planning clients are routinely instructed to provide a panoramic view of their various accounts to next of kin so they will know where funds are located and where they need to go, rather than scrambling in the wake of your passing. Some clients may opt to proactively provide copies of keys, safe combinations, etc. to their loved ones, so they’re able to step in and gain access to important documents and account info without issue. However, providing a simple list of accounts and a set of keys may no longer be enough nowadays to allow our loved ones to step in and assist. Why? Because we live in a digital world and many people’s assets, including financial accounts, are accessed through online methods. This creates an issue if your loved one is attempting to access a bank account with a stale, paper list of account information. For example, what...

01 November

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Does Virginia Recognize Wills from Another State? Ashburn Estate Planning Lawyer Provides the Answer

Posted by Bobby Feisee

in Bobby's Blog

[vc_row triangle_shape="no"][vc_column][vc_column_text] According to migration data tracked by the U.S. Census Bureau, more than 264,000 people relocated to the Commonwealth of Virginia from another state in recent years. This likely means thousands of people who drafted a Will in another state will need to get the answer to an important question: Does Virginia recognize a Will drafted and notarized in a different state? Here is the answer: A Last Will and Testament created and effectuated in a different state will generally be considered valid in Virginia if it meets the legal requirements. Requirements to Create Legally Enforceable Will in Virginia If you do not have a Will and recently relocated to Virginia, now is the time to take action and create a Will (or other estate planning instrument, such as a trust). In order to properly create a Will in Virginia, there are specific statutory requirements that must be met, including: You must be...

12 November

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Estate Tax May Survive Federal Tax Reform

Posted by Bobby Feisee

in Bobby's Blog

Congress is in the midst of debating tax reform which features an attempt to possibly repeal the federal estate tax (also referred to as the "death tax"). This tax typically effects high value estates that can result in a whopping 40 percent estate tax. In fact, the 40 percent estate tax affects approximately 0.2 percent of estates in America. That translates to 5,460 estates in 2017, according to the nonpartisan Tax Policy Institute. Though, there are sizable exemptions to the estate tax under current law. For example, in 2017, the estate tax exemption is $5.49 million per individual. This means an individual can leave $5.49 million to their heirs and pay no federal estate or gift tax, according to Forbes. There has been long-held criticism behind the premise of the federal estate tax, especially in conservative circles. They point out that the estate tax is essentially a double-tax on hard-earned income and harms...

28 April

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How to Properly Establish a Living Trust

Posted by Bobby Feisee

in Bobby's Blog

One 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...

03 December

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New Administration May Mean Major Estate Tax Changes

Posted by Bobby Feisee

in Bobby's Blog

The 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...

25 August

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Time is Running Out for Maximizing the Effectiveness of Family Limited Partnerships in Your Estate Plan

Posted by Bobby Feisee

in Bobby's Blog

Establishing a family limited partnership can be helpful in business succession planning, business continuity plans, and as a component of your estate plan. It is especially helpful if you own real estate, a family business, and concentrated positions of publicly traded stock. However, the IRS is starting to scrutinize these partnerships and has proposed a new regulation, specifically a revised versionof Section 2704 that could have a dramatic impact on your estate planning by eliminating valuation discounts. If you are looking to minimize your future estate tax this is critical and time is of the essence. Once the revised Section 2704 is in effect, which could be around the end of calendar year 2016, the ability to claim discounts might be substantially reduced or eliminated thus curtailing your tax and asset protection planning flexibility. Managing Estate Taxes If you own the aforementioned combination of real estate, a successful business, stock options, etc. you...

09 August

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Another Celebrity Leaves Sizable Estate, But No Will

Posted by Bobby Feisee

in Bobby's Blog

Actor Anton Yelchin, best known for his role as Chekov in the revamped Stark Trek movies, died tragically in an accident on June 19, 2016. Mr. Yelchin, left behind a sizable $1.4 million estate and no will. He follows other notable celebrities like Prince and Amy Winehouse who suddenly passed on leaving substantial estates, but no estate plan. Mr. Yelchin was only 27 years old, but he had at least $641,000 in personal property and had $731,000 in equity in his home, according to the Associated Press. His parents filed to become administrators of his estate in Los Angeles Superior Court. Our deepest sympathies go out to Mr. Yelchin’s parents. Losing a child is a gut-wrenching experience no child should have to endure. Unfortunately, their stress was likely exacerbated learning that there was no will, trust, or any other estate plan for their son. Mr. Yelchin was not married and had no...

20 June

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Baby on Board, Part 2 – I Care…Therefore, I Plan

Posted by Bobby Feisee

in Bobby's Blog

Many of us lead incredibly busy lives. Work, social events with friends and family, taking the kids from one place to another, trying to make a better life for my family, and so forth. Who has time to think about estate planning? That is something far down on the list for most people because they just don’t have time for it and don’t want to think about it. I always wondered why people would not take the time to make sure they have a plan in place for their family, but now I get it. I found myself, an estate planning attorney, putting off updating my own estate plan, even with the birth of my daughter. Like most people I have found myself making excuses so I can spend time on other supposedly more important daily tasks. Then, it hit me – I was looking at the estate planning process all wrong. I viewed estate...

05 May

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Neglected Estate Planning By Prince Will Cost Loved Ones

Posted by Bobby Feisee

in Bobby's Blog

World famous music star Prince reportedly died without leaving a will, trust, or any other estate planning documents for his friends and family. The consequence? His loved ones and business contacts will likely be fighting in court for years to settle an estate estimated to be worth between $150 million to $300 million, according to the Chicago Tribune. To complicate matters even further, Prince was not married and had no children. This means there is not a clear beneficiary who will inherit the bulk of his estate. Instead, Prince left behind six siblings. Here is an ABC News report on the estate controversy: https://www.youtube.com/watch?v=VsiJxpRvAw4 When someone dies without a will, it means they died “intestate.” The result is that your assets will be divided according to statutory law. For Prince’s estate, it is likely that each of his siblings will receive an equal share of the overall estate. This division applies even if Prince...

17 March

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New Medicare Benefit – Helping You Make Your Wishes Known

Posted by Bobby Feisee

in News

Note: This article is courtesy of DocuBank® Starting this year, Medicare is making it easier for people to have conversations about their medical wishes. This is good news. These conversations are important. They help you think about what’s important to you and help you get the care that you want when it matters most. With the benefit available, now is the time to talk with your lawyer, loved ones and doctor about your wishes, and make sure both have copies of your advance directives (if you do not already have these important documents drafted, schedule a time to meet with your estate planning attorney). Below are answers to some common questions about this new Medicare benefit. Q&A: Medicare Benefit for Advance Care Planning How is Medicare making it easier to talk to my doctor about my wishes? Advance Care Planning (ACP) conversations are important and can be sometimes lengthy. It was hard for doctors to fit...