Facebook-f Twitter Linkedin-in Youtube Rss
estate planning and elder law
Book Your Free Call

Estate Planning Blog Articles

Estate & Business Planning Law Firm Serving the Providence & Cranston, RI Areas

Trustee of Late Singer Tony Bennett’s Estate Sued

What Happened to Tony Bennett’s Estate?

For many, estate planning is a distant concern. However, life events can bring it suddenly into focus. A DailyMail headline involving the late singer Tony Bennett exemplifies this. He passed without a robust estate plan, leaving his children and widow embroiled in a legal battle over his estate. We must ask ourselves an important question: how can we avoid these estate disputes?

Why Do Families Fight Over Inheritances?

Family conflicts over inheritance are tragically common. According to The Conversation, there are several reasons why these disputes arise:

  • Lack of Clear Instructions: A vague will or estate plan leaves room for interpretation and disagreement.
  • Unresolved Family Issues: Long-standing family tensions can resurface during the emotionally charged period after a loved one’s death.
  • Perceived Fairness: Different family members might have varying opinions on what constitutes a fair distribution of assets.

In Tony Bennett’s case, the daughters are suing their brothers and his widow. The brother is the sole executor of the state, and he’s allegedly failed to be transparent with his sisters.

Trustee of Late Singer Tony Bennett’s Estate Sued

Tony Bennett’s daughters, Antonia and Johanna Bennett are the plaintiffs in the suit. The defendant, their brother D’Andrea “Danny” Bennett, has allegedly mishandled the estate. According to his sisters, he has failed to disclose their father’s assets and answer their questions.

The sisters estimate the value of their father’s estate to be much greater than what their brother has reported. They specifically claim that their brother did not account for proceeds from the sale of Tony Bennett’s music catalog and image rights when he worked as their father’s manager. They’ve also named their brother Daegal “Dae” Bennett and Tony’s widow, Susan Benedetto, as defendants.

What to Learn from the Battle over Tony Bennett’s Estate

Tony Bennett’s story is a cautionary tale. Whoever is right, a lack of clarity and ambiguity in their fathers’ finances has torn a family apart. While few of us have an estate the size of Tony Bennett’s, even a more modest estate can spark strife. Avoiding litigation and protecting your wishes requires a thorough, detailed estate plan and an impartial executor.

Can You Avoid Estate Litigation?

Creating a detailed will and trusts are the foundation of good estate planning. A few key principles include:

  • Plan Ahead: Don’t wait until it’s too late. Start planning your estate now.
  • Appoint a Trusted Executor: The battle over Tony Bennett’s estate began with the executor’s alleged mismanagement. Avoiding conflicts requires choosing a capable, impartial executor.
  • Seek Professional Help: An experienced estate planning attorney can help you navigate the complexities and ensure that your wishes are honored.
  • Review and Update Your Plan: Life changes, and so should your estate plan. Regularly update your documents to reflect your changing circumstances and wishes.

How can an Estate Planning Attorney Help?

An estate planning attorney can provide invaluable assistance in several ways. They can draft a detailed will that’s legally binding and reflects your wishes. They can also set up different trusts to manage your assets, protect your wealth, and provide for your loved ones in a structured manner. Intelligent estate structuring can minimize your tax liabilities to preserve wealth for your beneficiaries. At the bottom line, a good estate planning attorney can help you protect your legacy for when you’re gone.

Reliable Estate Planning Attorneys

Don’t leave your family’s future to chance. By taking proactive steps, you can avoid the kind of disputes that Tony Bennett’s family is facing.

Contact us today to protect your estate. Our team is here to help you create a comprehensive estate plan that honors your wishes and protects your loved ones.

Key Takeaways

  • Avoid Family Disputes: Proper estate planning can help prevent conflicts among heirs.
  • Clarity and Communication: Clear instructions and open communication reduce misunderstandings.
  • Select a Reliable Trustee: Choosing a trustworthy executor is crucial for smooth estate administration.
  • Regular Updates: Keep your estate plan current to reflect life changes.
  • Professional Guidance: An estate planning attorney can ensure that your wishes are legally sound and honored.

References: DailyMail (June 15, 2024) “Tony Bennett’s daughters break their silence after suing brothers and late singer’s widow amid bitter inheritance battle over their father’s estate” and TheConversation (May 17, 2022) “Why families fight over inheritances – and how to avoid it”

Should You Consider Planned Giving?

Estate planning presents many opportunities for philanthropically minded people, and you don’t have to be a millionaire to be a philanthropist. One way to ensure that your assets are given to causes you care about is addressed in the article “What Is Planned Giving?” in Financial Advisor.

Planned giving means donating assets to a nonprofit in a structured way during your lifetime or as part of an estate plan. The assets can be cash, securities, real estate, life insurance proceeds, funds from retirement accounts, or assets held in trusts.

Why make a planned gift? Planned giving is a means to create a legacy, ensuring something you value continues after you are gone. This can be a large donation to fund building construction, a student scholarship, or an endowed program. It can also take the form of an annual gift to the organization.

The benefit of a planned gift is it allows you to structure assets to accomplish other things, like providing for beneficiaries. Certain charitable trusts can provide income to spouses, children, or grandchildren over decades or in a lump-sum payment.

Creating a planned giving program should align with your overall estate plan to achieve optimal results in growing wealth and minimizing tax liabilities. Doing so requires discussing your charitable intent with your estate planning attorney, determining the best way to do this and then drafting wills, trusts and any other instruments to work together.

The development office of any nonprofit organization will be familiar with planned giving and may even have someone on their team who focuses on planned gifts. They are usually happy to receive donations this way and will also know about different types of gifts and tax-efficient strategies.

Planned giving can also be used with a tax-advantaged vehicle like a donor-advised fund, which owns assets specifically for use by a charity.

Consider why you want to make a charitable gift and what you hope to accomplish. You and your estate planning attorney can then map out a strategy to benefit you, your loved ones and the nonprofits of your choice, demonstrating your priorities and creating a legacy.

Reference: Financial Advisor (June 1, 2024) “What Is Planned Giving?”

What’s the Best Way to Simplify an Estate?

Yes, you need to create your estate plan and decide how you want your money and real estate property to be distributed upon your death. However, there’s more. A recent article from Morningstar, “Your family will love you even more if you simplify your estate,” says you should also simplify your assets to simplify your estate.

How you have your financial life arranged now may seem simple enough to you as you navigate it regularly. You know where your accounts are, how much is in each account and who the beneficiaries are of any account, having the option of naming a beneficiary. If you don’t know who the beneficiaries are, take care of this right away.

However, for your executor and your heirs, those same accounts are a series of unknowns. If a single financial advisor doesn’t handle your investments, can you bring them under one person’s management? If you have accounts in more than one bank, can you consolidate them into one bank?

A record number of boomers will turn 65 in 2024. The “great wealth transfer” of a generation owning $72.6 trillion and passing this along to younger generations has led many to prepare accounts and heirs for what will come in the next twenty years. This includes creating a comprehensive estate plan with a will and trusts. Most experienced estate planning attorneys advise their clients to create a revocable living trust to avoid probate, which can be costly, stressful and time-consuming.

Probate is considered one of the most complex parts of inheritance. Distribution will be far simpler if you can remove most of your assets from being part of your probate estate. Trusts can also protect assets in a way wills cannot. It’s far more challenging to contest a trust than it is a will. If your family is prone to infighting, you want to place assets into trusts!

Talk with your estate planning attorney about a “pour-over will.” This is a will directing any assets not already in your trust to be “poured over” into the trust upon your death. You’ll also want to have a financial power of attorney, healthcare power of attorney, living will and HIPAA release. These documents allow the people you designate to take care of your financial, legal and health if you should become incapacitated.

Once your estate plan is in place, start consolidating accounts. If you have multiple IRAs or 401(k)s from various employers, combine them. You’ve set your heirs up for trouble if you have individual stock certificates in your bank’s safe deposit box. First, the safe deposit box will be sealed upon your death, unless someone else owns the box. Second, stock certificates must be settled through a stock-transfer company, which requires proof of the owner’s passing and proof of their being legitimate heirs. New accounts need to be opened up for the stocks to be transferred to, and only then can they be retrieved the money from the sale of the stocks.

It can also be difficult for heirs if they have annuities, government-issued bonds, or bank CDs. They all must be found, and distribution rules must be uncovered and processed.

After having your estate plan created and consolidating accounts, create an inventory of all accounts, including digital assets (usernames and passwords will be needed), and place them in a file with keys to your safe deposit box, life insurance policies and estate planning documents in one place. Make copies of your credit cards, front and back as well.

Having this information in one place will make managing your estate far easier. Your loved ones can focus on their memories and not be overwhelmed by the details.

Reference: Morningstar (June 18, 2024) “Your family will love you even more if you simplify your estate”

Why Consider Long-Term Care Insurance?

Planning for the future is essential to protecting your health and well-being. Your medical expenses grow as you age, and you’ll likely have to bear long-term care expenses. These costs can be too steep for many to bear, which is where long-term care insurance (LTCI) comes into play.

What Is Long-Term Care Insurance?

Long-term care insurance is coverage that helps pay for the cost of long-term care services, such as in-home care, assisted living, memory care and nursing home stays.

As we age, most people eventually need assistance with daily activities, like bathing or dressing. When we reach this point, long-term care is vital to maintaining our well-being and quality of life. However, federal health insurance programs often fall short, and then you have to pay from your savings. According to the National Council on Aging (NCOA), LTCI is invaluable to cover the costs of long-term care.

Why Is Long-Term Care Insurance Important?

As we age, the likelihood of needing assistance with daily activities increases. Whether you stay home or move into a care facility, the costs can add up quickly. Long-term care insurance helps cover these expenses, ensuring that you receive the necessary care without depleting your savings.

What Does Long-Term Care Insurance Cover?

Depending on your policy, long-term care insurance can cover various services, including:

  • Personal care
  • Adult day service centers
  • Assisted living facilities
  • Memory care facilities
  • Nursing homes
  • Respite care

These services ensure that you can maintain a good quality of life, even when you need day-to-day help.

How Do You Get Long-Term Care Insurance Benefits?

To receive benefits from your long-term care insurance, you need to file a claim with your insurance company. A nurse or social worker then evaluates your cognitive abilities and ability to perform daily activities. If you meet the criteria, your insurance company will approve a care plan and begin paying benefits after an elimination period. This period typically ranges from one to three months.

When Should You Get Long-Term Care Insurance?

It’s recommended that you purchase long-term care insurance between the ages of 50 and 65. The earlier you buy, the lower your premiums will be and the better your chances of qualifying for a policy. Waiting too long or having existing health issues may result in higher premiums or denial of coverage.

How Much Does Long-Term Care Insurance Cost?

The cost of long-term care insurance varies depending on several factors, including age, health, gender, marital status and the level of coverage.

For example, a healthy 55-year-old man might pay around $900 annually for a $165,000 policy. On the other hand, a healthy 55-year-old woman could pay about $1,500 for the same coverage due to women’s longer life expectancy and higher likelihood of needing long-term care services. These prices are only examples; you’ll need to look into LTCI personally for an accurate quote.

Where Can You Get Long-Term Care Insurance?

There are several options for obtaining long-term care insurance:

  • Insurance Agents and Brokers: Licensed professionals who can help you find and compare policies.
  • Employer Benefits: Some employers offer group long-term care insurance at lower rates.
  • Government Programs: Federal employees can access the Federal Long Term Care Insurance Program.
  • State Partnerships: Some states offer partnership programs with private insurers for additional benefits.
  • Life Insurance Policies: Some life insurance plans include long-term care coverage.

Find Out More about Long-Term Care Insurance

Planning for long-term care is an essential part of your estate planning. Long-term care insurance can protect your savings, ensure quality care and secure your peace of mind.  However, remember that once you need LTCI, it’s already too late.

Enrolling in a long-term care insurance plan sooner rather than later secures the coverage you need. If you’re unsure where to get started, you’re in the right place. Contact our office today to schedule a free consultation and find the right LTCI option for you.

Key Takeaways:

  • Financial Security: Long-term care insurance helps cover the high costs of long-term care services, protecting your savings and assets.
  • Secure Your Peace of Mind: LTCI provides assurance that you and your loved ones will receive necessary care without financial strain.
  • Timely Planning is Essential: Purchasing at a younger age can result in lower premiums and better chances of qualification.
  • Customized Plans: You can tailor your LTCI coverage to fit your individual needs and circumstances.

Reference: National Council on Aging (NCOA) (Apr. 30, 2024) “What Is Long-Term Care Insurance?”

Top Myths of Estate Planning

There are far more than five myths about estate planning. However, the article “5 common myths about estate planning, debunked” from Utah Business examines the most common ones. Estate planning is crucial to safeguarding your financial future and asset disposition and ensuring that the right people are involved in caring for you in case of incapacity. Estate planning is for your life and your legacy.

Biggest myth of all: You only need a Will for estate planning. Your estate plan begins with a Last Will and Testament. However, a comprehensive estate plan addresses more than the distribution of assets. Trusts are used to ensure that assets are transferred to the right beneficiaries in a timelier manner than they would be if passed through your will. Your estate plan should include a Power of Attorney, Health Care Directive and a Living Will.

Myth 2: Only seniors need estate plans. Anyone of legal age who has a family and owns property needs a will. Young families need an estate plan to protect their children and ensure that the parent’s assets and any life insurance proceeds are managed and distributed to their children according to the parent’s wishes. Parent’s wills need to include naming a guardian to raise children in the unlikely event of both parents dying while the children are still minors. Without naming a guardian, a court decision will determine who raises your children.

Myth 3: Only rich people need wills. An argument could be made that estate planning is more critical for people who aren’t rich, protecting and growing more modest estates. A well-crafted estate plan will protect the estate from creditors, deter litigation between family members and minimize tax liabilities so wealth can be passed to the next generation.

Myth 4: Estate planning is only about what happens after death. Estate planning addresses what should happen in case of incapacity because of illness or an accident. If you can’t communicate your wishes, these documents allow others to act on your behalf. A Power of Attorney appoints someone to handle your financial and legal matters. Standard POAs aren’t the best option, since they may allow someone too much or insufficient control. You’ll also want a Health Care Power of Attorney so someone you name can take over your medical care and talk with your doctors and health insurance company. Another reason for placing assets into a trust is that the successor trustee may manage assets in the trust if you are incapacitated.

Myth 5: Once your estate plan is created, you’re all set. Your car and home require ongoing maintenance—and so does your estate plan. Life and laws change, and your estate plan won’t work if it’s outdated. Triggering events like marriage, divorce, birth, relocating, or big changes to your financial situation require a review of your estate plan.

Consult an experienced estate planning attorney to create or review your estate plan. You’ll breathe easier knowing you’ve taken steps to protect yourself and your loved ones.

Reference: Utah Business (June 12, 2024) “5 common myths about estate planning, debunked”

Corporate Transparency Act Could have an Impact on Estate Plans

Created to address unlawful activities, such as money laundering and terrorism funding, the Corporate Transparency Act (CTA) has spilled into other areas, including estate planning. A recent article from Forbes, “The Corporate Transparency Act: Estate Planning, Succession Planning, And Trust Administration,” provides an overview of what you need to know and should discuss with your estate planning attorney.

Reporting obligations for trusts and related entities are different. Trusts are not considered “reporting companies” under the law. However, information about beneficiaries and individuals with control or ownership needs to be disclosed. Depending on the trust, this may mean trustees, trust protectors and anyone with substantial control over the trust.

The trusts’ structure needs to be reviewed to ensure compliance with CTA regulations. Changes may be needed, with the biggest shifts in trusts used for succession planning. Here’s why.

If an entity is deemed a “reporting company” under the CTS, beneficial owners are required to be disclosed. Since many succession plans include gradual transfers of company interests, the individuals gaining and giving equity must be reviewed to determine their status regarding reporting obligations.

Determining who is a beneficial owner under the CTA is critical to compliance, which has to occur in tandem with achieving the objective of the succession plan: protecting the family legacy while ensuring business continuity.

Part of the process now requires the roles and responsibilities of all involved parties, delineating who has control and setting up protocols for managing and disclosing shifts in ownership. Beneficial owner information must be kept up to date, adding a layer of administration to trust management.

  • Control structures and documented decision-making processes must be very clear.
  • Information on beneficial owners must be specific; general descriptions like “all my children” won’t do.
  • Overly complex structures used to hide ownership will not withstand scrutiny under the CTA.
  • Inadequate recordkeeping or poor documentation of trust activities will raise concerns.
  • Discrepancies between trust documents and reported information will raise a noncompliance flag. Information reported to the CTA must align with trust documents.

Talk with your estate planning attorney if you have concerns about trusts used in succession plans and how to ensure that they are in compliance. A regular review process to ensure compliance with CTA should be set up to align with legal obligations and secure the goals of the succession plan.

Reference: Forbes (May 17, 2024) “The Corporate Transparency Act: Estate Planning, Succession Planning, And Trust Administration”

How Your Estate Plan Addresses More than Money

Having a properly drafted and executed last will can help ensure that your wishes for asset distribution are followed, says an article from CNBC, “Writing your will is ‘not just a question about finances,’ expert says. Here’s why it’s a crucial task.”

People often think they don’t have enough assets to warrant creating a will, which is a big blunder. Without the right estate planning documents, loved ones will have to deal with additional difficulties during times of serious illness or death.

When no will exists, laws of “intestacy” take over. These state-specific laws determine who receives your assets, usually based on bloodlines or kinship.

Without a will, any minor children will be raised by whoever the court decides will be best to raise them. It won’t matter if you’ve always thought your cousin would be the best parent, if you died if the judge believes your uncle and aunt are the best choices. Your wishes won’t be heard.

If you don’t have an estate plan or haven’t revised your will in more than five years, it’s time to make an appointment with an estate planning attorney to prepare a will and other documents to protect your loved ones and your assets.

Part of having a complete estate plan includes ensuring that the people you’ve named as beneficiaries on bank and retirement accounts and life insurance policies are still the people you want to receive these assets. These accounts pass outside of your probate estate, so whatever your will says doesn’t matter for these accounts.

If you own a home or multiple properties, talk with your estate planning attorney about how to best structure ownership. It might be possible to place your home in a trust to remove it from your probate estate, or you may do better leaving it as is. The estate planning attorney will review your entire estate to determine your best option from an estate planning and tax perspective.

If there’s no will, a significant asset like a house is usually divided among heirs, depending on the state’s laws. This can get very complicated very fast.

Meet with an estate planning attorney to get the process started. It’s not as burdensome as you might think and will save your loved ones from additional stress and worry during times when their focus should be on celebrating your life and grieving your loss.

Reference: CNBC (May 8, 2024) “Writing your will is ‘not just a question about finances,’ expert says. Here’s why it’s a crucial task”

Long-Term Care Planning and Timing Move to Assisted Living

A recent JAMA Internal Medicine study titled “The Natural History of Disability and Caregiving Before and After Long-Term Care Entry” examined the health and caregiving needs of assisted-living residents. Study results highlighted the median move-in age, the average level of care needed and likely long-term needs. This article expands on the research results to highlight how your assisted-living move-in impacts elder law in your estate planning and the strategies to consider.

How Does Timing Your Move to Assisted Living Influence Long-Term Care Planning?

The study indicates that the mean age for moving into assisted living is 85, and they are less likely to be severely disabled compared to those entering nursing homes. The research identified a critical period of one to two years during which the care needs of assisted living residents could escalate to levels seen in nursing home settings. This progression underscores the importance of upfront discussions and planning regarding long-term care strategies.

Despite relatively good initial health, over half of the new residents had dementia, highlighting the need for comprehensive planning to protect financial and personal well-being in the event of cognitive decline.

Legal Strategies for Assisted Living Planning

As the average entry age into assisted living is around 85, it is crucial to prepare for possible increases in care needs, including issues related to dementia or cognitive decline. Legal and financial strategies to consider with your elder law attorney include:

  • Living Trust: Living trusts are a three-party agreement between the creator, trustee and beneficiary. With well-written terms and instructions, these trusts can protect your assets and funds.
  • Irrevocable Trust: Irrevocable trusts transfer asset ownership to the trust and can help lower your estate’s value.
  • Powers of Attorney (POA): Durable POAs give legal authority to a trusted person to oversee financial and healthcare matters when you are incapacitated.
  • Advance Care Directives: These directives specify your preferences for medical care, including decisions about treatments and care facilities.

Elder law attorneys are vital in navigating the legal complexities associated with transitions to assisted living. They help draft critical documents like living wills and powers of attorney and ensure that your rights are protected throughout the process.

Conclusion

Deciding to move into an assisted living facility is a significant life choice that impacts quality of life and health care in later years. Consulting with elder law professionals helps families devise flexible plans that accommodate changing care needs, ensuring that legal and financial protections are in place for residents as they transition into and within senior living communities.

Key Takeaways:

  • Optimal Timing for Assisted Living: The average age for moving into assisted living is 85, with prior home care averaging 18 hours per week.
  • Evolving Care Needs: Health and independence levels can approach those of nursing home residents within one to two years, indicating possible changes in care needs.
  • Personalized Decision Making: The decision to move into assisted living varies greatly and should be based on individual health, care requirements and personal preferences.
  • Role of Early Long-Term Care Planning: Elder law attorneys are crucial for helping seniors with early long-term care planning that protects individual rights and assets before a move to assisted living is necessary.

Reference: JAMA Internal Medicine (Nov 6, 2023) “The Natural History of Disability and Caregiving Before and After Long-Term Care Entry”

Planning Your Own Funeral Eases the Burden for Your Loved Ones

Planning your own funeral may seem like a morbid task. However, it can significantly reduce the stress and financial burden on your loved ones after you pass away. Choice Mutual’s recent article “How To Plan Your Own Funeral: 10-Step Guide + Checklist” explains that by making decisions about your funeral arrangements in advance, you can ensure that your final wishes are respected and that your family is spared from making difficult decisions during a time of grief.

Why Should You Consider Planning Your Funeral Early?

After a death, family and loved ones are responsible for managing your estate and organizing a funeral while grieving. Planning your funeral early while drafting or as part of your estate plan is a thoughtful and responsible step that alleviates the emotional and financial strain on your loved ones.  If you’ve already created your estate plan, an experienced estate planning attorney can help you detail your funeral planning in a “Last Wishes” document or addendum to your estate planning documents. These documents provide crucial guidance that reflects your personal preferences and eases the decision-making process for loved ones.

What are the First Steps in Pre-Planning Your Funeral?

Choosing a Funeral Home

One of the first decisions in pre-planning is selecting a funeral home. This choice is crucial as it can significantly affect the logistics and cost of your funeral services. Consider the reputation, services offered and pricing of different funeral homes. You can select a funeral home, create a plan and even prepay for it. Be sure to share existing funeral plans or prepayments with your estate lawyer.

Deciding Between Burial and Cremation

Do you prefer a burial or cremation? Each option comes with different considerations, such as the type of ceremony, the handling of remains and the associated costs. If choosing burial, consider the kind of burial—traditional, in a vault, or a natural burial. If cremation is your choice, decide whether you want it done before or after the funeral service and what should happen to your ashes.

How Do You Want to Be Remembered?

Selecting the Type of Funeral or Memorial Service

Your funeral or memorial service can reflect your personality and values. Decide whether you want a traditional funeral, a celebration of life, or a simple memorial service. Each type of service offers different atmospheres and can be tailored to how you wish to be remembered.

Planning the Ceremony Details

Think about the location, the attendees and the flow of the ceremony. Would you prefer a religious, secular, or culturally specific service? Details like flowers, music, and readings should also be considered, as these can make the service personal and meaningful.

How Can You Ease the Funeral Logistics for Your Family?

Creating a Last Wishes Document as Part of Your Estate Plan

Creating a Last Wishes document of your funeral plans and sharing it with your family is essential. This document should detail all your decisions—from the type of service to the specifics of your burial or cremation preferences. It is also wise to discuss these plans with your loved ones to ensure that they understand your wishes and the reasons behind them.

Financial Planning for Funeral Expenses

Consider how you will finance your funeral. Options include savings, life insurance, prepaid burial plans, or relying on your estate. Your estate planning attorney can guide you in choosing the right prepaid funeral plan based on your financial situation.

What are the Benefits of Planning Your Funeral in Advance?

Planning your funeral in advance can significantly ease the emotional and financial burden on your loved ones. By making critical decisions about your funeral arrangements, such as the type of service and financing options, you ensure that your wishes are honored and relieve your family of added stress. Consulting with a qualified estate planning attorney can provide clarity and direction, ensuring that you make informed decisions integrated with your estate plan.

Key Takeaways

  • Early Planning: Start funeral arrangements early when drafting your estate plan to reduce future stress for your loved ones.
  • Funeral Home Selection: Choose a funeral home carefully, considering services, reputation and pricing to avoid future complications.
  • Burial vs. Cremation: Decide whether you prefer burial or cremation, and detail your specific wishes for handling these.
  • Planning the Service: Tailor your funeral or memorial service to reflect your personality and values, making the event meaningful for attendees.
  • Documenting Last Wishes: Record all funeral plans, include them with your estate plan and share them with your family to ensure that your final wishes are honored.
  • Financial Planning: Explore financing options like insurance, savings, or prepaid plans to manage funeral costs effectively and prevent financial strain on your family.

Reference: Choice Mutual (April 2, 2024) “How To Plan Your Own Funeral: 10-Step Guide + Checklist”

What Happens If You Inherit a Parent’s House?

Inheriting your parent’s home is a combination of sadness, relief, and worry. The last one can be avoided if the right planning is done in advance, says a recent article, “6 lessons I learned from inheriting a parent’ s house” from Bankrate. When all these feelings are combined with navigating the inheritance among siblings, things can get complicated quickly.

Many people think children automatically inherit a house when their parents die, but this isn’t true. It’s possible for children to inherit without a will, but it doesn’t always happen. Every state has its own laws about who inherits what in the absence of a will. Without a will, there will be unpleasant surprises for the family.

Parents need to talk with their children to tell them if they have a will or estate plan and where the will can be found. If there is no will, the parents must meet with an estate planning attorney as soon as possible to ensure their wishes are documented.

Wills and estate plans are never completely done. Wills need to be updated as circumstances change over time. A will created while a parent is in their 50s may not reflect the family’s status ten years later. Let’s say one sibling is disabled and receives means-tested government benefits. If the sibling is left something in the will, their benefits could be cut off. If the sibling was well ten years ago, the estate plan didn’t include a special needs trust, which would allow the family to provide for the disabled sibling without putting their benefits at risk.

The general rule for reviewing wills is to review wills every three to five years. They may not always need updating, but they definitely need reviewing.

Heirs need to put everything in writing if they have been left assets like the family home as a group. Siblings will have different lives and needs, so inheritances need to be clarified and documented. A verbal agreement is asking for trouble, even in the best of circumstances. If something happens to a sibling and their spouse has a different idea of what they want to happen to their share of the house, for instance, the way forward won’t be pleasant.

It’s best to plan how your assets should be managed after death. Would a revocable trust work better to keep the family home out of probate? If the home is placed in a revocable trust upon the death of the owner, the ownership of the home goes to a trustee, avoiding probate.

Plan ahead and expect surprises. Inheriting a home isn’t great for every family, as it comes with costs. Property taxes, maintenance, and utility costs might make home ownership a burden rather than a blessing. Parents need to think carefully about whether or not inheriting the home will work for the family.

Consulting with an estate planning attorney in advance can facilitate a discussion about how best to pass the family home onto the next generation or determine it’s not in everyone’s best interests. Leaving a legacy of careful planning is as much a gift to the family as the home itself.

Reference: Bankrate (May 3, 2024) “6 lessons I learned from inheriting a parent’ s house”

Search
Join Our eNewsletter

Recent Posts
Categories
estate planning and elder law
Email/Social Media
Facebook-square Twitter-square Linkedin Youtube Blog
Quick Links
IMS
Powered By

Copyright © Lambros Law Office LLC. All rights reserved. Some artwork provided under license agreement.