Leesburg VA Estate Planning Attorney Blog | Virginia Estate Administration & Probate Lawyer

Is a living trust necessary for proper estate planning?

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Trusts on Wednesday, May 22, 2013.

Many Loudoun County residents have concerns about estate planning. They may be led to believe that a living trust is absolutely essential and without one, their estate will end up going through probate and turn into one huge mess. This is not always the case. In fact, many people don't need a trust for their estate planning needs.

Trusts are more expensive than wills. A typical will can cost a few hundred dollars, while a trust can set a person back several thousand dollars. Despite this price discrepancy, many people are led to believe that they need a trust if their goal is to avoid probate. For small estates, however, many states make the process easier and even allow the beneficiaries to avoid probate altogether by structuring assets throuhg a simple will rather than a trust.

Guardianship: When it's not used as an estate planning strategy

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Guardianships and Conservatorships on Wednesday, May 15, 2013.

When many Loudoun County residents think of a guardianship or conservatorship, they may think of it in the context of an elderly person or someone who is mentally incapacitated. But more and more, this legal process - which is an important part of estate planning - is also being used for young celebrities who have spiraled out of control and need help with day-to-day functioning.

Remember Britney Spears? A conservatorship helped her turn her life around and make a comeback. Now another child star has been in the public eye lately due to her erratic behavior. Former Nickelodeon star Amanda Bynes could use some help from a court appointed guardian who would manage her finances and protect her from harm and irresponsible behavior, such as her alleged drug use and recent DUI charges. But does she qualify for a guardianship?

Estate planning should be a consideration for everyone

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Estate Tax on Wednesday, May 8, 2013.

With the minimum value for estates now at more than $5 million before the estate tax kicks in, many Loudoun County residents may think they're in the clear and therefore have no need to create an estate plan. However, it is important that people of all income levels go through the estate planning process and help out their families as much as possible.

Many people gauge whether or not they need an estate plan based on estate tax guidelines. However, people from all walks of life - especially those who are married with young children - need to have an estate plan to protect their families in the event of an untimely death. This is typically done through life insurance and the appointment of guardians.

Figuring long term care into the estate planning process

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Long Term Care Planning on Friday, May 3, 2013.

Many Loudoun County residents may be excited for retirement, but it can be a tough transition, especially for those who have not saved much money. With medical costs rising at a minimum of five percent per year, it may take hundreds of thousands of dollars just to pay for medical care during a person's retirement years. That's why proper estate planning can help people plan for long term care expenses and other medical needs.

Proper long term care planning incorporates several elements, such as when a person plans to retire, his or her current health, life expectancy, cost of medical care, inflation and any employer benefits. It helps to be honest, as it's always better to over budget rather than scramble to find money later.

What vested rights mean during the estate planning process

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Trusts on Tuesday, April 23, 2013.

Many Loudoun County residents may have seen the term "vested" in connection to benefits they receive from an employer, such as a pension. For example, if an employee is required to work at a company for a certain period of time before receiving these benefits, the benefits will be "vested" -- or legally enforceable -- once the employee has met that length-of-employment requirement. Before that point, the employee is not guaranteed those benefits. Many people are unaware that this works the same way with a revocable living trust, a commonly-used estate planning document.

In a living trust, the person who created the trust can make changes to or completely revoke the trust while he or she is alive. This means that an heir's assets and rights are not always guaranteed, and are not vested while the trust creator is alive. The only way the heir's rights are vested is when the person dies. The trust then becomes irrevocable.

Importance of making family aware of estate planning documents

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Estate Administration and Probate on Tuesday, April 16, 2013.

Many Loudoun County residents may not want to burden their families with discussions about death, or more specifically, estate planning. However, when family members-including a surviving spouse-are unaware of what to do when their loved one is seriously ill or dead, this leads to additional worry and grief. This is why it is important for families to make time to discuss estate planning with each other.

Even if a person has everything "taken care of"-including a valid will and estate plan-his or her final wishes still may not be carried out because the family may not know what estate planning documents exist. This is why having a family meeting is important. It is critical to have this meeting early on, since tragedy can strike at any time.

Will or trust: which one to use for estate planning needs?

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Trusts on Friday, April 12, 2013.

Many Loudoun County residents are probably confused about their estate planning needs. A primary question might be, "Should I create a will or would a trust be better?" There are several differences between these two, so the best one to use for estate planning would depend on a person's assets, as well as a variety of other factors.

Wills and trusts can be different in that they become effective at different times. A will takes effect upon death, while a trust is often administered while the person is still alive. A will controls assets such as personal property and bank accounts. It can also require going through the probate process, which consists of gathering assets, notifying creditors and settling claims. This process can take six months or more to finalize.

Predicting medical care an emotional process in estate planning

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Long Term Care Planning on Thursday, April 4, 2013.

As Loudon County residents can attest, there are so many types of insurance to consider. Life insurance, medical insurance, dental insurance, homeowner's insurance and auto insurance are just a few. A major question is often who requires long term care insurance. With this type of insurance relatively new, many people are debating whether or not they really need it. It's often not until they witness a family member suffer from declining health that they realize that they need to add long term care as part of their estate planning goals.

Deciding whether or not to buy long term care insurance is an emotional decision. Many people may see their loved one in a nursing home or assisted living facility and realize that they don't want to live like that themselves should something happen. On the flip side, people also want to believe that they will never have serious medical difficulties, so they put off buying it hopes that they are right - and then it's too late.

Facts about estate planning among wealthy investors

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Estate Administration and Probate on Wednesday, March 27, 2013.

Loudoun County residents may be familiar with the common fallacy that estate planning is only for the wealthy. However, a recent survey shows that even the wealthy are not putting much thought into their estate plans. Fewer than 20 percent have updated their estate plans in the past five years and another 23 percent have no estate plan at all. One reason for this may be that many are put off by the often morbid nature of estate planning.

Despite the statistics, most of those who do have an estate plan feel comfortable with it. Approximately 82 percent of wealthy investors feel "confident" or "very confident" that their estate plan will be executed in accordance with their wishes.

How an annuity can cause issues with estate planning, estate tax

On behalf of Law Office of Patricia E. Tichenor, P.L.L.C. posted in Estate Tax on Thursday, March 21, 2013.

Many Loudoun County residents may be in the dark about estate tax rules. The federal estate tax only applies to estates worth more than $5.25 million. However, when figuring in assets, it is easy for one to overlook annuities. Understanding when to include and not to include an annuity's value is important in the estate planning process.

Many annuities are considered straight life annuities. This means that they last only until the person dies. There are no survivor benefits. In this case, because there is no value on the annuity after death, estate tax will not apply.