22 October

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Administering a Small Estate in Virginia – Important Info You Need to Know

Virginia has a set of unique rules that allows you to avoid probate if an estate is comprised of “small” assets (defined as assets totaling under $50,000). According to VA Code § 64.2-601, when the total estate does not exceed $50,000, a successor in interest, usually an heir-at-law or a beneficiary of the Will, can collect and distribute the assets without having to go through the full probate process. If there is a Last Will and Testament, it must be admitted to probate, but there is no requirement that an executor or personal representative be appointed, according to the Virginia Academy of Elder...

21 February

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Own a Technology Business in Virginia? Take Advantage of a Little Known Capital Gains Tax Exemption

Posted by Bobby Feisee

in Bobby's Blog

Starting and managing a business is challenging, especially in the highly competitive technology sector. You have to ensure your product or service is on the cutting edge, while also juggling regulatory requirements and staying up-to-date with business taxes. Fortunately, the Commonwealth is taking some of the burden off your shoulders through the state tax code. Entrepreneurs and investors who make qualified investments in early-stage technology, biotechnology and energy startups in Virginia through 2020, can seek exemption from paying state income tax on their long-term capital gains throughout the life of the investment, according to the Northern Virginia Technology Council. This exemption was...

19 May

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3 Common Mistakes Executors Make and How to Avoid Them

Posted by KarenLewis

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...

29 December

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Estate Planning Tip: Watch Out for State Taxes

Posted by KarenLewis

in Bobby's Blog

When people begin estate planning, they probably think about the federal estate tax (commonly referred to as the “death” tax). However, a lesser-discussed tax issue is state estate and inheritance taxes. This is a complex, state-based issue and it’s advisable for you to sit down with an experienced estate planner to make sure your plan takes into consideration potential state taxes. Some states collect estate taxes and while other states collect inheritance taxes (some actually collect both). You may be thinking, “what the heck is the difference between an estate tax and an inheritance tax?” Well, an inheritance tax is...

20 November

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Estate Planning Tip: You May Be Able to Qualify for a Real Estate Tax Exemption

Posted by KarenLewis

in Bobby's Blog

Did you know that seniors are eligible to reduce their real estate property tax bill if they meet certain state and local requirements? As part of the estate planning process, proper counseling should also include taking full advantage of tax programs that are available to alleviate the tax on your estate while you are alive as well as after you die. For example, in Maryland, Virginia, and District of Columbia, there are programs allowing credits to be applied against your property tax bill, as long as the property taxes exceed a fixed percentage of your gross income. Basically, this places...

09 January

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Long-Term Wealth Protection Available Through Dynasty Trusts and Domestic Asset Protection Trusts

Posted by KarenLewis

in Bobby's Blog

A dynasty trust can be set up and utilized to pass asserts on to multiple generations of descendants while paying very little in taxes. Here’s a big advantage: dynasty trusts have no expiration date and there are no required minimum distributions. This means the assets in the trust may grow for an unlimited number of future generations. Dynasty trusts can be set up in numerous states. However, some states offer stronger protections for these types of trusts. For example, Delaware offers more protections from creditors trying to access the trust assets and potential exclusion of assets if a trustee gets...

17 September

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Asset Protection for Physicians

Posted by KarenLewis

in Current Events

Physicians are constant targets of malpractice lawsuits. Generally, they have a high level of annual income as compared to most other people. Detailed required medical record keeping creates an ideal paper trail for any trial lawyer. Despite these challenges, physicians remain the highest earning professional group. Most physicians will accumulate significant business and personal assets that should be protected from the many liabilities that face the medical practitioner. This is where asset protection for physicians is absolutely critical. So what exactly is asset protection? Well, it is a hybrid between traditional estate planning and advanced planning strategies. This hybrid approach helps...

17 May

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Importance of Having a Durable Power of Attorney

Posted by KarenLewis

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...

14 May

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Simultaneous Death Provisions: The Law in the “DMV”

Posted by KarenLewis

in Bobby's Blog

In many estate plans, it is quite common for a husband to leave everything to his wife and kids. And, vice versa, a wife routinely decides to leave everything to her husband and kids. But what happens if both the husband and wife die simultaneously? Under the common law, if there was any evidence that one of the deceased individuals survived the other, even by a few seconds, then the estates would be distributed in that order. This led to many bitter inheritance battles in court. So, to address this problem, the Uniform Simultaneous Death Act was passed and applies...

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...