No matter your age, the estate planning attorney you hire should have outstanding credentials and testimonials to their efficiency and personal concern. At the Law Office of Michael T. Huguelet, our promise to service your needs is backed by experience and expertise. Our team is equipped with the tools to make your estate planning goals become a reality.
As you begin settling down, it is sensical to start considering how you’ll provide for and protect those you love. It’s important that these responsibilities rest in good hands. Your estate planning attorney ought to have the knowledge and skill to help you design a workable, legally binding estate plan, one that’ll keep your assets safe as they accumulate, protect your loved ones, and consider the possibility that you may become incapacitated when you least expect it.
It’s only natural that you would be picky in choosing your estate planning attorney. This legal professional must be able to:
Listen, understand, and address your individual needs
Clarify your options
Draft, review, and file all necessary estate planning documents
Make certain your estate plan covers all contingencies; and
modify your documents as your life circumstances change.
The future is unpredictable. Estate planning can help you make that future as secure as possible.
Estate planning can be as complicated as it is essential. Accordingly, regardless of our age, speak with a highly competent estate planning attorney as soon as possible.
As the COVID-19 pandemic has dramatically shown us, planning for the unexpected can never be addressed too soon.
KCRA’s article entitled“5 things to know about estate planning” says that estate planning is a topic that people frequently don’t like to think about. It’s often regarded as grim. However, more people now want to create a will or revise one that’s already in existence, because of the COVID-19 pandemic. With health and safety taking center stage, ignoring your financial security can be catastrophic.
You should have a will. You can find forms online, or you can (in some states) use a holographic will, which is handwritten. However, a holographic will can be incomplete and unclear. DIY estate planning isn’t a good idea if you have any property, minor children, or want to save on taxes for your family. Use an experienced estate planning attorney to ensure that you are covering all of your bases. The Law Office of Michael T. Huguelet, P.C. is at your service to bring ease and comfort to your estate planning journey. With over 40 years of legal experience under our roof, we have the skills and tools to get the job done.
Without a will, your “state” makes one for you. We put family first. Many people fail to realize the implications of life without a will. If you die intestate, state law will dictate how your probate estate will be distributed at your death. This makes it take longer to administer your estate, which extends the grieving process for family members. It is also more expensive, more time-consuming and more work for those you leave behind. Lastly, you have no say in how you want your property distributed.
Why do I need a will? No one is immune to the importance of estate planning. Everyone should think about estate planning and have an estate plan in place. This should include what would happen, if you’re incapacitated. With the coronavirus pandemic, this might mean contracting the disease and being in a hospital on a ventilator for weeks and unable to care for your children. While admittedly grim to imagine, it is critical to prepare for the worst. With vested interest in both you and your loved ones, we respect a plan that fits the individual.
How long does a will take? Drafting your will is a very personal and customized process that usually happens over several meetings with a qualified estate planning attorney. It could be weeks or months, but the average length of time it takes to create a will is 30 to 60 days. In the midst of the pandemic, our attorneys are able to get these completed much more quickly. Become a client today to kickstart your estate planning. We are working around the clock to help families like yours.
What about COVID-19? When your will is complete, there’s usually a signing meeting set with the attorney, witnesses, a notary and the person creating the will. However, now there’s no way to safely gather to sign these critical documents. Many states have made exceptions to the witness rule or are allowing processes using technology, known as remote notarization. Call today to learn more about our updated signing meetings in the midst COVID-19.
Even if you have done comprehensive estate planning with the guidance of a qualified attorney, you may want to re-evaluate certain elements of your plan now, through the lens of the coronavirus pandemic. Reviewing your estate plan with an attorney will provide guidance and piece of mind that your affairs are in order.
Why? There are two uniquely challenging aspects of this pandemic that your current plan may not adequately address.
Medical treatment for severe cases of COVID19 frequently involves intubation and ventilator therapy to combat respiratory failure … and
Quarantine and isolation orders blocking hospital visitors create some communication barriers between patients, doctors and family members.
How might these unique challenges impact your estate plan?
Living Wills. If your living will contains a blanket prohibition on intubation, you may want to reconsider that decision.
Durable Powers of Attorney (DPOA). Given the communication difficulties that may arise when a patient is hospitalized during this pandemic, you may want to revisit the terms of your DPOA to make it easier for your agent to act on your behalf.
Health Care Power of Attorney. A health care power of attorney allows you to appoint someone else to act as your agent for medical decisions. Under normal circumstances, this person would likely confer with your attending physicians in person and again, these in-person communications may be difficult right now. You want to add language to expressly authorize electronic communication with your agent.
The attorneys of Michael T. Huguelet, P.C. focus primarily in this area of the law and can advise you on whether your current estate plan accurately represents your wishes during this uniquely challenging time. Our offices are open and ready to assist you with preparing a new estate plan or tailoring an update to your estate plan during the coronavirus pandemic.
There are more than a few steps you’ll need to complete, before packing up your desk, cubicle or locker and saying goodbye to your work family. Even if your 401(k) and IRA is in order, there are things you need to do during the last few months before retirement, says Next Avenue in the article “Tips to Prepare for Retiring This Spring or Summer.”
There’s detailed planning, organization of documents, and additional financial details that need attending. You may also want to start creating your “bucket list” — a list of things you’ve always wanted to do, but never had the time to do while you were working. Getting all of this in order, will speed your waiting time and prepare you better when the last day of your working life does finally arrive.
Whether you are three months or six months from retirement, here are some tips for your to-do list:
Social Security. Figure out when the best time for you to take Social Security benefits will be. Can you delay it until age 70? That’s when you’ll get the biggest payout. The earlier you start collecting benefits, the smaller your monthly check will be. Take it early, and you are locked into this lower rate.
Health Care. Figuring out how to manage health care costs, is the single biggest worry of retirement for most Americans. An injury that puts you in a nursing care facility can make a huge dent in your retirement funds, even if it’s just for a short while. This is the time of your life, when focusing on your health is most important, even if you’ve been careless in earlier decades. Evaluate your health status and get check-ups with your regular physician and your dentist.
Investments. Check with your HR department about when you’ll need to roll over your 401(k) plan. If you transfer the funds into a low-cost IRA, you may save in fees. Work with your financial advisor to determine what your withdrawal rate will be. You may need to reevaluate some of your retirement goals or consider working part-time during retirement for a few years.
Medicare. If you’re almost 65, you can start enrolling in Medicare now. The government lets you start the process within three months of your 65th birthday. Start this process, so you are covered, once you are not on the company’s health care plan.
Expectations. The first six months to a year of retirement can be both wonderful and terrible. While enjoying freedom, many people find it hard to withdraw money from the same accounts they spent so many years building. What if they don’t have enough for a long life? Take a realistic look at your lifestyle, budget, and spending habits, before you retire to make sure you are financially ready to do so. If you think you might work part-time, look into the positions that are available in your area and what they pay.
Lifestyle. Often, we are so busy planning for the financial side of retirement, we forget to plan for the “soft” side: what will you do in retirement? Will you volunteer with an organization that has meaning for you? Write the novel you’ve started on a dozen times? Spend more time with your grandchildren? Travel? What will make you feel like your time is being well-spent, and what will make you fulfilled?
Don’t forget the legal plan. Retired or not, you need to have a will, power of attorney, and health care power of attorney to protect your family, whether you are preparing for retirement or in the middle of your career. Speak with a New Lenox estate planning attorney to ensure that these important documents are in place. The Attorneys at Michael T. Huguelet, P.C. are available to help. May we help you?
Reference: Next Avenue (March 6, 2019) “Tips to Prepare for Retiring This Spring or Summer”
When that time comes, having a power of attorney is a critical document to have. The power of attorney is among a handful of estate planning documents that help with decision making when a person is too ill, injured or lacks the mental capacity to make their own decisions. The article, “Why you’re never too young for a power of attorney” from Lancaster Online, explains what these documents are, and what purpose they serve.
There are three basic power of attorney documents: financial, limited and health care.
You’re never too young or too old to have a power of attorney. If you don’t, a guardian must be appointed in a court proceeding, and they will make decisions for you. If the guardian who is appointed does not know you or your family, they may make decisions that you would not have wanted. Anyone over the age of 18 should have a power of attorney.
It’s never too early, but it could be too late. If you become incapacitated, you cannot sign a POA. Then your family is faced with needing to pursue guardianship and will not have the ability to make decisions on your behalf until that’s in place.
You’ll want to name someone you trust implicitly and who is also going to be available to make decisions when time is an issue.
For a medical or healthcare power of attorney, it is a great help if the person lives nearby and knows you well. For a financial power of attorney, the person may not need to live nearby, but they must be trustworthy and financially competent.
Always have back-up agents, so if your primary agent is unavailable or declines to serve, you have someone who can step in on your behalf.
You should also work with an estate planning attorney to create the power of attorney you need. You may want to assign select powers to a POA, like managing certain bank accounts but not the sale of your home, for instance. An estate planning attorney will be able to tailor the POA to your exact needs. They will also make sure to create a document that gives proper powers to the people you select. You want to ensure that you don’t create a POA that gives someone the ability to exploit you.
Any of the POAs you have created should be updated on a fairly regular basis. Over time, laws change, or your personal situation may change. Review the documents at least annually to be sure that the people you have selected are still the people you want taking care of matters for you.
Most important of all, don’t wait to have a POA created. It’s an essential part of your estate plan, along with your last will and testament. Our Homer Glen estate planning lawyers are here for you and your family. May we help you? Book a Call!
Reference: Lancaster Online (May 15, 2019) “Why you’re never too young for a power of attorney”
Estate planning attorneys see them all the time: the mistakes that people make when they try to create an estate plan or a will by themselves. They learn about it when families come to their offices trying to correct mistakes that could have been avoided just by seeking legal advice in the first place. That’s the message from the article “Five big estate planning ‘don’ts’” from Dedham Wicked Local.
Here are the five estate planning mistakes that you can easily avoid:
Naming minors as beneficiaries. Beneficiary designations are a simple way to avoid probate and be certain that an asset goes to your beneficiary at death. Most life insurance policies, retirement accounts, investment accounts, and other financial accounts permit you to name a beneficiary. Many well-meaning parents (and grandparents) name a grandchild or a child as a beneficiary. However, a minor is not permitted to own an asset. Therefore, the financial institution will not name the minor child as the new owner. A conservator must be appointed by the court to receive the asset on behalf of the child and they must hold that asset for the minor’s benefit until the minor becomes of legal age. The conservator must file annual accountings with the court reflecting activity in the account and report on how any funds were used for the minor’s benefit until the minor becomes a legal adult. The time, effort, and expense of this are unnecessary. Handing a large amount of money to a child the moment they become of legal age is rarely a good idea. Leaving assets in trust for the benefit of a minor or young adult, without naming them directly as a beneficiary, is one solution.
Drafting a will without the help of an estate planning attorney. The will created at the kitchen table or from an online template is almost always a recipe for disaster. They don’t include administrative provisions required by the state’s laws, provisions are ambiguous or conflicting and the documents are often executed incorrectly, rendering them invalid. Whatever money or time the person thought they were saving is lost. There are court fees, penalties and other costs that add up fast to fix a DIY will.
Adding joint owners to bank accounts. It seems like a good idea. Adding an adult child to a bank account, allows the child to help the parent with paying bills if hospitalized or lets them pay post-death bills. If the amount of money in the account is not large, that may work out okay. However, the child is considered an owner of any account they are added to. If the child is sued, gets divorced, files for bankruptcy or has trouble with creditors, that bank account is an asset that can be reached.
Joint ownership of accounts after death can be an issue if your will does not clearly state what your intentions are for that account. Do those funds go to the child, or should they be distributed between heirs? If wishes are unclear, expect the disagreements and bad feelings to be directly proportionate to the size of the account. Thoughtful estate planning, that includes power of attorney and trust planning, will permit access to your assets when needed and division of assets after your death in a manner that is consistent with your intentions.
Failing to fund trusts. Funding a trust means changing the ownership of an asset, so the asset is owned by the trust or designating the trust as a beneficiary. When a trust is properly funded, assets funding the trust avoid probate at your death. If your trust includes estate tax planning provisions, the assets are sheltered from estate tax at death. You have to do this before you die. Once you’re gone, the benefits of funding the trust are gone. Work closely with your estate planning attorney to make sure that you follow the instructions to fund trusts.
Poor choices of co-fiduciaries. If your children have never gotten along, don’t expect that to change when you die. Recognize your children’s strengths and weaknesses and be realistic about their ability to work together, when deciding who will make financial decisions under a power of attorney, health care decisions under a Health Care Power of Attorney and who will best be able to settle your estate. If you choose two people who do not get along or do not trust each other, it will take far longer and cost more to settle your estate. Don’t worry about birth order or egos.
The sixth biggest estate planning mistake people make is failing to review their estate plan every few years. Estate laws change, tax laws change and lives change. If it’s been a while since your estate plan was reviewed, make an appointment to meet with your estate planning attorney for a review.
Do any of these mistakes sound familiar? Let our experienced Orland Park estate planning attorneys help you avoid these mistakes and minimize the potential for disputes after your death; or worse, have your estate assets wasted through unnecessary probate costs and legal fees. We are here for you and your family. May we help you? Book a Call!
Reference: Dedham Wicked Local (May 17, 2019) “Five big estate planning ‘don’ts’”