July 2020
Everyone forgets something at some point. When you begin forgetting things and you are older, it can be frightening to think you may have dementia or a condition such as Alzheimer’s disease. Before you start to worry too much, you should learn more about memory loss. The FDA explains that memory lapses that occur occasionally are usually normal and nothing with which you should concern yourself. Memory problems that are more persistent or that seem to have a bigger impact on your life are not normal, and it is those types of issues that require more attention. Normal loss As you age, your memory naturally gets slightly worse . Forgetting an appointment every now and then is not a serious issue as it happens to almost everyone. Losing your car keys is another example of something that is no big deal. When what you forget is only pieces of information or minor things, then you probably are just experiencing normal memory loss associated with aging. Normal memory loss will not have a major effect on you and should never put you in danger. Abnormal loss Memory loss that is worthy of concern is that which leads to serious situations that could put you in danger. It also involves forgetting significant information. For example, forgetting what you talked about when your neighbor visited yesterday happens to people sometimes, but forgetting your neighbor visited at all is more concerning. In addition, suddenly find yourself forgetting how to do things you have done for years is not normal. You could have an underlying health issue leading to your problems. Forgetting important things does not always mean that you have a disorder such as Alzheimer’s disease. It could be a symptom of another condition or a side effect from the medication you take. Your doctor can help you to figure out what is happening and how to deal with it.
For those creating an estate plan, there are often many different sources of stress and uncertainty. Whether a loved one has special needs or someone cannot decide which type of estate plan makes the most sense, our law firm realizes the pressures that many people face during this process. However, decisions related to distributing assets among beneficiaries are often especially difficult and it is crucial to approach this issue with care. Eliminating confusion and having confidence in one’s decisions is very helpful. There are a number of ways in which people can ensure that their assets are distributed appropriately. Reviewing your loved ones’ circumstances When deciding how to divide assets, it is important to consider your loved ones’ needs and circumstances. Sometimes, it is sensible to pass down certain assets to a particular beneficiary. Moreover, some parents decide to leave one child with more than his or her siblings for different reasons. In some instances, people decide to remove a beneficiary altogether or appoint someone to oversee the distribution of assets to make sure that they are not misused (such as beneficiaries struggling with drug addiction). Communication and thinking ahead In certain families, it is very helpful for people to discuss their estate plan with loved ones. Often, this reduces the likelihood of a bitter dispute and provides clarity. However, some beneficiaries are unhappy with their loved one’s decisions and it is necessary to move forward regardless. When it comes to naming beneficiaries and dividing assets, everyone is in a unique position. Our website covers a variety of topics related to the estate planning process .
Washington residents often think that creating an estate plan is all you need to do. Unfortunately, that is not the case. An estate plan needs to reflect your life in an accurate way. Because of that, you will come across times when you need to change your estate plan. Today, we will look at some of the most common times people change their estate plans. Though this varies from person to person, there are still some similarities. Family matters and estate plan changes Forbes discusses reasons people often have for modifying their estate plan . Most revolve around major life changes. Today we will focus on changes to family and changes to finances. Changes to family include any alteration to a family structure. These changes matter because estate plans determine where your assets go. Do you want an estranged ex-spouse to get any of your assets? The answer is probably “no”. Likewise, let us say a new child enters the home. You want to make sure to include them. You can give financial support to spouses. You can also do this for adult children who need care. Changing estate plans because of finances Of course, you want to make sure that the assets you allocate are up to date, too. Financial situations change for many reasons. They can change for the better or worse. You may lose money and have to file for bankruptcy. You may face debt. But you may come into money. You may win a large cash prize or come into an inheritance. Whatever the case, you want your estate plan to reflect your current finances. This way, everyone gets what you want them to.
When a close friend or family member passes away, there are a host of issues to reconcile. In addition to grieving the loss of a loved one, you must consider finalizing the estate and carrying out the deceased’s wishes. Depending on the circumstances surrounding the case, probate may be required as a way to ensure that the last will and testament is valid. Yet, not all estates in Washington and throughout the nation are required to enter into the probate process. When is probate required? In Washington, probate is not always required by the court. Instead, surviving family members may choose the probate process as a way to organize the distribution of the estate. You may need to enter probate if your loved one’s property and assets total over $100,000. Furthermore, it may be best to go through probate if the deceased had property that was titled solely in his or her name. Probate is not required in cases where the property and assets are left in a living trust. In these situations, assets are transferred directly to the person named in the trust. Likewise, assets such as retirement plans and life insurance with a designated beneficiary go directly to the named beneficiary and do not pass through probate. How does probate work? Probate offers a way to distribute property and assets to the beneficiaries named in the will. In some cases, property and items may be sold in an estate sale and financial accounts are liquidated to gather the entire estate. If the estate had pending debts, they may be resolved using estate funds. Once the beneficiaries are located, they are given property and/or assets according to the last will and testament. In some cases, the deceased may name an estate administrator in the will. This person is responsible for seeing the estate through probate.
For all parents, estate planning has a great significance. An estate plan provides you with reassurance that your children will have their needs met after you pass. When you have children with special needs, it is even more important. When planning ahead for children with special needs, there are at least two different trusts that you may consider. All children have different needs and some of these needs will change over time. Forbes explains the types of trusts for special needs children . Special needs trusts Most parents establish a special needs trust under the impression that said children will receive government benefits. This trust should supplement said benefits. The reason that you need to take special care when establishing this type of trust is because your child could become ineligible for government benefits if the trust is not drafted correctly. Government benefits provide for basic needs. Your special needs trust should provide extras for your child, such as trips and recreation. In addition to establishing a special needs trust in advance, you can also provide permission to the trustee to convert a trust into a special needs trust after your death. This is for parents who are unsure about whether the child will receive or need public benefits. Discretionary trusts Discretionary trusts are for parents who do not worry about whether their children will receive government benefits. If you have sufficient wealth to care for your child after you pass, then you may not have to worry about any benefits. Instead, you can focus on leaving your child enough wealth to cover expenses. This type of trust distributes income throughout your child’s life, under the supervision and discretion of a trustee. Discretionary trusts are less common of a child with special needs since a special needs trust created in this context has very little downside.
Washington residents like you who want an estate plan must start by picking an executor. This person will oversee your estate after you pass on. Because of this, they are one of the most important parts of your estate plan. Today we will look at some key points to examine when picking an executor. After all, not just everyone can take on the job. Key traits of a good executor Huffpost looks at ways to select a good estate executor . First are personal preference factors. Each person has their own needs and desires. This will affect what they look for in an executor. You will want your executor to be someone who shares similar core values and thoughts. They should be able to answer questions like you. They will make decisions on your behalf after you pass. Because of that, you want to ensure their answers align with yours. After personal preferences, you should look at professional qualities. Is your pick for an executor on time? Can they handle scheduling and sticking to schedules? Do they work well on their own, or do they need prompting? Are they capable of taking the helm on large projects? Are they organized? These traits will benefit any executor. Having them can make the estate process go well. The importance of an open schedule Also, try to go for someone with an open schedule. Probate is a process that may go on for over a year. Your executor will need to have an open schedule. This way, they can prioritize handling your estate affairs. Because of that, you may want to avoid anyone who is planning on: Starting a new business Starting a new family Moving to another location Once you find someone who fits, you can work things out with them one on one.
In today’s economic climate, it is likely that you will still have some outstanding debt when you pass away. This is yet another reason why making an estate plan can be vital to your successors’ financial well-being, even if you do not have considerable assets. According to NerdWallet, knowing which of your debts might pass on to whom may at least allow for planning so you can protect them as much as possible. Is debt considered community property? Washington is a spousal community property state. This generally means that you and your spouse share responsibility for any debt incurred during your marriage, even if not explicitly named on the account. However, any outstanding debt that you acquired before the marriage does not automatically pass on to your spouse. Still, after your death, half of any community assets may go to satisfy your individual liabilities. Which debts must my estate pay? If you are single and absent a co-signer, the following debts become the responsibility of your estate: Credit card balances Private student loans Mortgage loans Auto loans Although probate must address your unsecured credit card and student debts, once the estate assets are gone, the creditors and lenders must absorb any lingering balance. With mortgages and car loans, your fiduciary has a choice to continue making payments from your estate or sell the asset. Additionally, the inheritor of your house or car can continue making the payments. How can I protect my loved ones? Once you have outlined which of your debts are likely to become the responsibility of your surviving family members, there are steps you can take to protect them. Usually, creditors cannot touch life insurance payments or retirement savings. A standard solution is to secure enough life insurance to cover any outstanding debts and name the responsible parties as beneficiaries.
