Articles Tagged with estate planning

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During your lifetime, your retirement account has asset protection, but as soon as you pass that account to a loved one, that protection evaporates. This means one lawsuit and POOF! Your lifelong, hard-earned savings could be gone.

Fortunately, there is an answer. A special trust called a “Standalone Retirement Trust” (SRT) can protect inherited assets from your beneficiaries’ creditors. We’ll show you what we mean.

When your spouse, child, or other loved one inherits your retirement account, their creditors have the power to seize it and take it as their own.

If you’re like most people, you’re thinking of protecting your retirement account? Here are 5 reasons we think you’re right. Continue reading

PR-300x225Many Wisconsin residents are appointed to serve as the personal representative for a family member’s estate without fully understanding the duties and responsibilities of the position. Handling an estate is not necessarily difficult, but it does require a certain attention to detail and the ability to meet specific legal deadlines.

The Basics of Administering a Wisconsin Estate Continue reading

digital assetsProbate in Wisconsin has traditionally dealt with two kinds of property – the physical and the intangible. The latter, intangible, refers to assets like bank accounts or stocks that lack a physical form yet serve as a defined store of value.

These days there is another, distinct type of intangible property that we all possess in one form or another: digital property. This encompasses everything from your email to your iTunes account with thousands of downloaded songs and videos. Up until recently, figuring out what happened with your digital property upon death meant looking at the terms of service for every company with which you do business. In other words, Facebook may say one thing when it comes to whether or not your estate can access your profile post-death, while Google may say something completely different with respect to the fate of your Gmail account. Continue reading

how-to-secure-a-mortgage-after-bankruptcy-slideshow-300x120One of the biggest estate planning concerns that we hear about from parents is that they are reluctant to leave a potentially sizable inheritance to their financially irresponsible adult children. This raises an interesting question that you probably have not considered in connection with your own estate plan: What happens if my child files for bankruptcy just before I die? Will my estate be forced to pay off my son or daughter’s creditors? Continue reading

tod-300x168There are many estate planning tools available in Wisconsin to individuals who want to transfer property without going through the formal probate process. One such tool is a transfer on death (TOD) deed. As the name suggests, this is a deed to real property that names a beneficiary who becomes owner upon the original owner’s death.

A TOD deed allows the real property to pass outside of probate, similar to how a named beneficiary receives a retirement account or other asset with a payable-on-death beneficiary designation. Keep in mind, however, that the beneficiary has no ownership rights under a TOD deed until the owner dies. The owner is free to amend or revoke a TOD deed at any point during his or her lifetime. Continue reading

 

Probate-Inventory-300x100

Probate administration in Wisconsin requires the personal representative (executor) of an estate to complete several steps before winding up the final affairs of the deceased. One critical step is filing an inventory with the probate court. The inventory, as the name suggests, is a listing of all property owned by the probate estate. Continue reading

1222896_coins-sxchu-username-iproleOne reason many Wisconsin residents create a trust is to reduce their estate’s potential estate tax liability. For example, with a qualified terminable interest property (QTIP) trust, married couples can maximize the potential estate tax deduction for their combined property. Basically, the way a QTIP trust works is that the first spouse to die leaves a “life estate” in his or her property to the surviving spouse. This means the surviving spouse may continue to use and receive income from the deceased spouse’s property. The property itself remains in trust until the second spouse’s death, at which time the trust assets are distributed to a final beneficiary, such as the couple’s children.

Wisconsin Court Holds Father’s Will Did Not Create QTIP

Creating a QTIP trust is not necessarily difficult, but it is something that must be done carefully to ensure there is no confusion as to your intentions. If you did not clearly intend to create a trust, do not expect a judge to make one for you after you die just to help your estate save money on its estate tax bill. The law is not that generous.

Here is a recent case in point. Four adult children attempted to sue the law firm that handled their father’s estate more than 30 years ago for malpractice. The children maintained that their father had intended to create a QTIP trust and the attorneys failed to do so after his death, eventually leaving the children with an estate tax bill of over $260,000. Continue reading

Living trusts are a flexible estate planning device that you can amend, modify, or revoke at any point during your lifetime. Of course, once you pass away, the terms of the trust become irrevocable. In other words, your successor trustee is Trustbound by its terms and must administer the trust assets as you direct.

This also means that your choice of a successor trustee is critical in ensuring the successful administration of the trust. Many people create a trust because they fear certain family members gaining control of their estate. Having a strong trustee in place, which in some scenarios may even mean appointing a non-relative or corporate trustee, can help ensure that the trust ultimately fulfills your wishes. Continue reading

Court-HammerProbate administration is the legal process of distributing a deceased Wisconsin resident’s property in accordance with the terms of his or her will, or if there is no will, under the state’s intestacy laws. Probate is also when anyone to whom the deceased owed money can present claims for payment. This includes health care providers, credit card companies, and even family members of the deceased.

Court Dismisses Son’s “Frivolous” Lawsuits Against Mother’s Estat

Under Wisconsin law, a creditor may demand “formal proceedings” in probate court to resolve any disputed claim against the estate. Probate court is the proper place to resolve such issues. In other words, a family member or other creditor should not initiate civil litigation outside of the probate administration process.

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Accuracy is important when making a will. You want to be as clear as possible when identifying your property and the people to whom you wish to leave it. For instance, if your will says, “I leave my son my car,” and you have two sons and three cars, you have not clearly expressed your wishes. Such ambiguity can ultimately lead to costly, unnecessary litigation between your family members as they struggle to understand what you meant.

No Estate Tax, No Worries?

Legal Description Helps Court Divide Property Between Niece, Nephew

Even when a court determines that your will was sufficiently clear, dissatisfied family members may still try contend otherwise. Recently, a Wisconsin state appeals court addressed just such a case. This lawsuit revolved around a will that contained a technically inaccurate, though legally sufficient, description of the deceased woman’s real estate. Continue reading