Watch Out for a Potential Auto-Pay Pitfall

With the prevalence of automated bill payments options, many people have set up online accounts for the seamless payment of all the common household bills. Paperless options can streamline and simplify those recurring monthly bills. However, it is important for married couples to analyze how these payments and notifications are sent in the event a spouse suddenly passes away. For example, let’s look at a common scenario. Bill and Mary Sample have been married for 40 years. Everything they own is jointly titled, or so they believe. Bill has set up all the monthly household bills to be automatically paid through his VISA credit card. Mary also has a linked VISA credit card under the same account but with a different number. Bill has also selected the paperless option to reduce wasteful paper usage. Bill passes away unexpectedly. Mary has never paid the monthly bills because Bill told her it was set up...

19 May

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3 Common Mistakes Executors Make and How to Avoid Them

Posted by Bobby Feisee

in Bobby's Blog

Many people are suddenly thrust into the position of being the executor of a loved one’s estate, and have no idea what to do or how to best proceed. It can be overwhelming. I want to share with you some common mistakes that I’ve encountered with executors in the hopes that you can learn what not to do. Please note, the concerns below are for people that have not done proper trust based planning. Properly drafted and maintained trust based planning (which we recommend for all of our clients) avoids many of the pitfalls below by allowing your trustees to stay out of the courts and public altogether during the administration of an estate. Mistake #1 – Distributing Too Early [caption width="300" align="alignright"] Courtesy of covenanttrust.com[/caption]Inexperienced executors are prone to make distributions too early and without protecting themselves from liability when that distribution is initiated. When you are an...

14 February

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The Estate of Philip Seymour Hoffman – A Looming Legal Battle?

Posted by Bobby Feisee

in Current Events

After starring in many blockbuster films, including Mission Impossible III and The Hunger Games: Catching Fire, Philip Seymour Hoffman amassed a net worth of roughly $35 million dollar, according to breathecast.com. The question now is - where will that money will go? Hoffman was not married, but did have a longstanding relationship with a girlfriend. Hoffman also had three children.We don’t know, as of the date of this posting, whether Hoffman had a will or any trust instrument set up for his family. If Hoffman died intestate (i.e. without a will), his estate will be distributed by the laws of intestate succession. Those laws are state-based, though many states have adopted a version of the Uniform Probate Code. This would likely result in his children receiving the bulk of his estate. His long-time girlfriend would likely not receive a substantial portion, if any, of the estate. Why? Well, it appears Hoffman was...

17 May

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Importance of Having a Durable Power of Attorney

Posted by Bobby Feisee

in Bobby's Blog

This article deals with the scenario of a loved one who becomes incapacitated and therefore needs someone to execute appropriate planning of their estate. The fact is, in the absence of an estate plan, only a properly drafted General Durable Power of Attorney will afford a level of flexibility necessary to make critical decisions about an incapacitated person’s estate. In this article, I’ll talk about how the Power of Attorney plays an important role in the planning and protection process. What does a Durable Power of Attorney do? Well, this is a legal document that an individual prepares while they are mentally able to read and understand the document. The document cannot be drafted after you’ve become incapacitated. Once you become incapacitated, the document states who will be appointed an Agent (which is either individual or multiple individuals) to act on the incapacitated individual’s behalf. Think of this agent as...

26 April

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Dying Without a Will in Maryland, Virginia or D.C. – Understanding the Differences in the DMV

Posted by KarenLewis

in Bobby's Blog

There is an area known as the “DMV”, which is a nifty acronym for the District of Columbia, Maryland, and Virginia. People who reside in the DMV routinely travel between these states on a regular basis (D.C. isn’t technically a state, but for the purposes of this blog, we’ll just call it a state). Just because these states are neighbors, does not mean that they share the same laws when it comes to passing assets on to your loved ones if you die without a will. If you suddenly pass away and do not have a valid will, you have died “intestate”. Each state has laws on the books that establish an orderly process for what to do with your estate in this situation. Here are the relevant provisions for residents of the DMV region: DISTRICT OF COLUMBIA D.C.'s intestacy law will pass your assets to your closest relatives. A court will...

31 January

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How the American Taxpayer Relief Act (ATRA) Affects Estate Planning

Posted by KarenLewis

in Current Events

By Bobby Feisee, Ashburn Estate Planning Attorney The “fiscal cliff” could have been a fiscal nightmare for people with sizable estates. For example, if we actually went over the cliff, the estate and lifetime gift exemption would have decreased from $5.12 million to $1 million, according to Forbes.com. It would have also meant the possibility of reducing, or outright eliminating, legal wealth transfer strategies. Fortunately, Congress acted quickly after January 1, 2013 and passed the American Taxpayer Relief Act (ATRA). But you may be asking, “how does this affect my estate plan?” Good question. We discussed some of the implications for estate planning in our January 10 post, but we wanted to provide additional information for our readers. Here are four important provisions of ATRA that affect estate planning: 1. The estate and gift tax rate will increase to 40 percent, a jump from 35 percent last year. 2. The exclusion...