A power of attorney (POA) is a written authorization granting an individual the power to act on your behalf on legal, financial, or health matters if you become incapacitated. The appointee, often called an agent or attorney-in-fact, makes decisions in your best interest if you cannot make them yourself. Arranging a power of attorney in advance has numerous benefits. These include:
A well-written power of attorney outlines all your assets and gives directives on when your attorney-in-fact can access them. The authorized agent manages your property and financial assets as outlined in the document. The POA also clarifies your intent and wishes in advance, helping protect your assets from mismanagement.
Dealing with health emergencies can be hectic, especially if you have a chronic condition. A healthcare power of attorney document can help manage medical emergencies. It outlines critical information, such as your healthcare provider and health records, allowing the authorized agent to make medical decisions on your behalf.
Family conflicts can arise if you don’t have a power of attorney in place. After all, this document outlines which family members have the power to represent you. A POA can help prevent conflicts and court battles involving your loved ones.
A POA can ensure financial security if you empower a trusted expert to manage your financial matters in case of inability or incapacity. The authorized agent will handle your accounts, sign checks, file taxes, and pay bills according to plan, preventing mismanagement.
Without a POA, the court may have to appoint a guardian to manage your assets and make decisions on your behalf. You and your family will not have any control over the court-appointed conservator. You can avoid this situation by setting up a power of attorney in advance.
A POA is essential in legal, financial, and health matters. It empowers your loved ones or trusted individuals to act on your behalf, preventing family conflicts and protracted legal battles. Our experienced attorneys at O’Brien Law Firm in Southaven, MS, can help you create and revise your power of attorney documents to meet your needs. Contact us today for legal assistance.
When undertaking estate planning, you naturally want your assets to be distributed according to your wishes after your demise. One of the estate planning tools you can use to achieve this is a trust.
Trusts are legal arrangements where the asset holder transfers their assets to a third party called a trustee. The trustee does not take ownership of the assets but manages them on behalf of the designated beneficiaries. The most common types are revocable trusts and irrevocable trusts.
What Are Revocable Trusts?
A revocable trust allows the grantor to retain control over the assets in the trust. In this arrangement, the grantor can add, remove, or modify assets and beneficiaries at will. They may or may not consult the trustees while doing so.
Generally, assets under revocable trusts do not undergo the probate process when the grantor passes away. This saves the beneficiaries time and money. Regarding taxation, revocable trusts are considered part of the trustor’s estate. As such, they have to pay income taxes on the trust’s earnings. Another downside is that they are not shielded from creditors if the grantor has debts.
What Are Irrevocable Trusts?
Irrevocable trusts are a type of trust agreement that can only be modified with beneficiary or court approval. The assets in an irrevocable trust are not considered property of the grantor. Ownership lies with the trust itself, which in turn serves for the benefit of the designated beneficiaries.
Due to their ownership structure, irrevocable trusts are typically used when grantors want to reduce their estate taxes. They also protect the trust’s assets from creditors. Further, the trust’s assets can’t be attached in any lawsuits touching the grantor, as they are not considered the grantor’s property.
Get Informed Advice
Personal goals differ, and the above types of trust can be ideal for different people. Our team of estate planning and probate attorneys can help you determine the right trust for you and assist you in setting it up. Call O’Brien Law Firm in Southaven, MS, today to learn more about our services.
For families with special needs children, estate planning can be rather complicated. This is because the usual estate planning instruments may not address the unique needs of a special needs child and can even jeopardize their access to government benefits. Here are essential considerations when drafting an estate plan.
Determine who the child’s legal guardian will be in the event that you are incapacitated. You can also express your wishes for the child’s future and let the guardian know what to do if you are unavailable.
Government benefit programs for special needs usually have strict asset limits. This means children who have access to assets above the set limits can be disqualified from accessing critical benefits. A Special Needs Trust (SNT) is a legal arrangement where designated assets for the child are held by a trustee and not directly by the beneficiary. The primary purpose of SNTs is to prevent disqualification from government benefit schemes. As such, the assets under the trust cannot be used to pay for basic needs like food and shelter. However, trustees can use the assets to improve the beneficiary’s quality of life by providing for things like travel, recreation, equipment, and entertainment.
It is not advisable to take a life insurance policy for a special needs child. Means-tested benefits typically look at a beneficiary’s total assets to determine eligibility and would consider the surrender value of the life policy as part of the child’s assets. Instead, consider having the child as a beneficiary in a policy owned by a parent or guardian. Alternatively, name the child’s Special Needs Trust as the owner and beneficiary of the policy.
At O’Brien Law Firm in Southaven, MS, we understand the intricacies involved in legally safeguarding the future of special needs children. Our attorneys are ready to help you through the entire process and ensure your child’s well-being is protected when you are gone. Call us today to book a free consultation with one of our lawyers.
While cohabitation has its own set of joys and challenges, it does not have the same legal protections as marriage. As such, cohabiting couples need to make extra arrangements to protect their assets in case of incapacitation or death. Below are some essential estate planning tips tailored for unmarried couples:
A will is arguably the most important element of estate planning. It typically allows you to specify who gets to inherit your property. Without a will, your state’s intestacy laws may decide for you and most likely won’t give anything to your fiancé. Having a will is especially crucial if you have children with your partner.
Owning property like houses, cars, bank accounts, and businesses jointly is a great way to ensure financial security for both partners in case of a breakup or one partner dies. Ideally, the ownership agreement should have “rights of survivorship,” which means the share of the deceased partner automatically transfers to the surviving partner. This helps prevent drawn-out and expensive estate litigation in case of death.
The second most important document in estate planning after a will is a durable power attorney. This document essentially grants your partner the authority to make decisions on your behalf if you ever become incapacitated. It covers medical decisions, investment decisions, access to bank accounts, and even filing taxes.
While it cannot substitute other estate planning documents, a cohabitation agreement helps to protect both your interests in case of a breakup. It is typically the unmarried couples’ version of a marriage agreement and outlines the rights and responsibilities of each partner in regard to finances and property ownership. Most importantly, a cohabitation agreement can address how debt and other liabilities incurred by each partner will be handled in case of a breakup.
Estate planning is a crucial step for unmarried couples looking to secure their financial security and interests. At O’Brien Law Firm in Southaven, MS, our attorneys are ready to help you throughout the process and ensure that both you and your partner are protected, even in unforeseen circumstances. Schedule a consultation with one of our lawyers today and get started with your estate planning journey.
As technology advances, the realm of estate planning must evolve correspondingly. Traditional assets like real estate and stocks have been the cornerstone of estate plans for decades. However, the digital age brings a new asset class to the forefront: virtual reality (VR) assets. These assets, ranging from virtual real estate in platforms like Second Life to valuable items in online games, are increasingly significant in our digital lives.
One of the major challenges in incorporating VR assets into estate planning is their legal status. Unlike physical assets, VR assets exist in a digital space governed by terms of service agreements, which often overlook inheritance issues. This presents a unique challenge for estate planners. The need for clarity in how these assets are handled after the owner’s death is becoming increasingly important.
Another key aspect is the valuation of these virtual assets. Just like physical assets, VR assets can appreciate or depreciate in value. Determining their worth can be complex, as it depends on market demand within the virtual environment. Estate planners must also consider how to manage and transfer these assets. Access to accounts, passwords, and the digital keys to these assets is crucial for seamless transfer to beneficiaries.
As VR technology becomes more integrated into our daily lives, its impact on estate planning will grow. It’s crucial for individuals to consider these digital assets when preparing their estate plans. The inclusion of VR assets is not just a necessity for avid gamers or tech enthusiasts but for anyone who engages with digital platforms.
At O’Brien Law Firm of Southaven, MS, we understand the importance of staying ahead in an ever-changing world. Our expert team is equipped to help you navigate the complexities of including VR assets in your estate plan. We ensure that your digital legacy is as secure as your physical one. Let us provide you with the peace of mind that comes from knowing your loved ones will be cared for and your virtual achievements preserved. With O’Brien Law Firm, your future and digital legacy are in expert hands.
