Randy L. Williams, Clark and Williams, LLCRandy L. Williams, Clark and Williams, LLC2024-03-11T12:50:42Zhttps://www.randywilliamslaw.com/feed/atom/WordPress/wp-content/uploads/sites/1301922/2019/12/cropped-512x-1-32x32.pngOn Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473682024-03-11T12:50:42Z2024-03-11T12:50:42ZLong-term care costs
One of the biggest issues people may have later in life is a decline in health that makes them dependent on outside support. Long-term care requirements could involve having nursing professionals visit someone's home or a move to a nursing home facility. The cost for such support can add up to thousands of dollars per month and might be more than the average person can afford even with robust retirement savings. People may plan before retirement to make it easier to qualify for Medicaid or to otherwise arrange to cover long-term care costs later in life.
The risk of incapacity
Some people already know that Alzheimer's disease runs in their families. They may worry about dementia and other age-related health challenges. Someone who becomes incapacitated later in life could be at risk of guardianship or conservatorship. Either family members or professional care providers could strip someone of the legal right to manage their own daily life and finances. A durable power of attorney established before someone declines could allow them to name someone they actually trust to handle their affairs should they become incapacitated.
Asset preservation
Perhaps someone worries that they might face a lawsuit or a creditor claim after they retire that could put their home or other resources at risk. Maybe they worry about medical creditors laying waste to their estate after their passing. If people take the time to create a trust or change how they hold certain resources, they may be able to protect their assets as they age and even after they die. Proper planning can help someone preserve a legacy for their loved ones and ensure their financial comfort later in life.
Taking the time to create a comprehensive estate plan can be a very beneficial move for someone preparing for retirement. Seeking legal guidance is a good way to get started.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473672024-02-07T17:10:23Z2024-02-07T17:10:23ZAdding it to a will
Perhaps the simplest way to transfer one person's ownership interest in a company to a specific beneficiary is by naming that person in a will. Once the probate process is over, the beneficiary selected by the current owner can assume control over the company. However, there are certain drawbacks to this approach. There can be a lot of downtime between when the owner dies and when the new owner technically has legal authority over the company. Transferring a business with a will might mean that the new owner sells the company off instead of running it and keeping it in the family. There could also be estate taxes if the business is worth millions.
Transferring the business to a trust
Perhaps a testator would like to grant each of their children an equal share in the business's value. Maybe they want to include Provisions in their estate plan to prevent the sale of the company to an outside party. It might even be estate tax concerns that lead to someone moving a business into a trust. Using a trust to control who inherits a business can be very useful in a variety of different situations.
Arranging for the sale of the business
A testator might instruct the personal representative of their estate to sell the business after their death and then do something specific with the proceeds from that sale. Selling the business can be a viable solution when someone does not have a specific family member to take over the business. Someone can even include the right of a first refusal in their planning paperwork so that a family member could choose to purchase the business before the estate attempts to sell it to an outside party.
Someone's family circumstances, the nature of their business and the value of their other assets can all influence which option would be most appropriate for addressing a business as part of a broader estate plan. Arranging to transfer both leadership and ownership of a business can help ensure that a company continues to thrive after its current owner dies or gives up control over the organization.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473662024-01-11T04:10:14Z2024-01-11T04:10:14ZA direct inheritance comes with risks
Underage children are often among the beneficiaries that people want to leave their property to when they die. However, minor children cannot legally control their own resources. Their parents or guardians have authority over their assets.
If someone's parents die, their guardian could control their inheritance until they turn 18. Improper planning could lead to someone squandering the resources that could help someone's children start off their adult lives. Even those who are usually ethical and responsible may mismanage assets that don't belong to them. Parents can plan to avoid the possible abuses that might occur in that situation by creating a trust. People can transfer some of their property, like their home, to the trust. They could also fund it with life insurance proceeds.
Trusts can have numerous restrictions on asset distribution. Someone can set resources aside until their children turn 18 or limit what scenarios would allow the guardian to request funds from the trust. Having someone other than the guardian serve as the trustee for the children's inheritance can help minimize the risk of financial misconduct. Every family's circumstances are unique, and parents may need to think carefully about their children's needs when putting together an estate plan.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473652023-12-07T17:01:20Z2023-12-07T17:01:20ZUsing one’s most valuable resources
The simplest way of funding a trust involves transferring personal assets to the trust when creating it. Many people choose to use a trust to hold the deed for their primary residence, for example. People may also transfer other valuable assets, including an ownership interest in a business, to a trust. Trusts can theoretically hold just about any kind of property, ranging from financial accounts to vehicles. People may have to give up some degree of control over those assets depending on the type of trust they create and who serves as trustee.
Arranging for posthumous funding
There are three primary ways for people to arrange to fund a trust at the time of their death. The first involves using life insurance proceeds to fund a trust. The trust can be the beneficiary listed on the paperwork with the life insurance company, thereby ensuring that the trust and not a specific beneficiary will receive the payout from the policy.
The second solution for posthumous funding is the use of transfer-on-death designations. People can file paperwork with financial institutions to have accounts transfer to the trust or other individuals after their death. The third solution involves drafting a pour-over will that transfers either specific assets or the remainder of someone's estate to the trust during the probate process.
Many people choose a combination of advance funding while they are alive and posthumous funding after their deaths to maximize what resources the trust controls and how much impact it may have on beneficiaries. Yet, ultimately, reviewing one’s personal resources and estate planning goals with an attorney tends to be wise before committing to any particular funding strategy.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473642023-11-07T14:15:02Z2023-11-07T14:15:02ZAppraisal gaps can cancel a closing
Lenders won't just issue someone a blank check to spend how they want. They want to know that the property securing the mortgage is worth what the company will pay for it. Therefore, most transactions financed by mortgages will have to undergo inspections and appraisals.
The appraisal process involves bringing in a professional to look at the property's condition and the sale price of other properties in recent months. The appraiser will determine what the property is likely worth. If the fair market value that an appraiser sets is lower than the amount the buyer offered, the transaction may stall out before closing. If the buyer cannot negotiate with the seller or bring in enough capital to cover the difference, an appraisal gap might mean they cannot finance the transaction.
It is, therefore, of the utmost importance for buyers to offer a realistic price when attempting to buy residential real property in Colorado. Simply seeking to outbid other buyers may leave a buyer in a situation where they may have to cancel the closing and possibly forfeit their earnest money if they did not include the right contingencies in their offer.
Learning more about the factors that can complicate residential real estate transactions may benefit those looking to buy real property in Colorado. Seeking guidance proactively is generally wise as a result.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473632023-10-05T13:24:22Z2023-10-05T13:24:22ZColorado state law provides very specific instructions about the descent of property when someone dies without testamentary documents. Some people justify their estate planning procrastination by raising the claim that those laws will protect the people they care about the most. Unfortunately, there are certain parties that have no protection whatsoever under intestate succession rules.
Unmarried romantic partners
It has become very common in the last few generations for people to make long-term commitments, cohabitate and have children together without legally marrying. One of the risks of that decision is the possibility that one partner might die without a will. The person who they may have shared their resources with for years would be left without any rights to their assets if they die without an estate plan. Instead, everything in the deceased party's name would pass to their closest family members, including their children or possibly their parents.
Business partners and close friends
Some people have close, meaningful relationships that are not romantic or familial in nature. They may have shared years of their lives and countless adventures with a business partner or may live with a friend who is only a roommate. These individuals who share a close bond and possibly resources with the decedent will not have any rights to inherit resources from their estate if they die without a will.
Charitable organizations
Many people aspire to leave money for specific causes that matter to them, especially when they do not have spouses or children. Unfortunately, posthumous charitable bequests are usually only an option when someone has very carefully planned to set their resources aside for a specific organization. Wills or even trusts are typically necessary to pass resources to a nonprofit entity instead of individuals when someone dies.
Understanding the limitations of Colorado intestate succession rules can help people with specific plans for their resources recognize when crafting an estate plan will be necessary to achieve their goals.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473622023-09-01T07:09:57Z2023-09-01T07:09:57ZAccording to one study, more than 33% of parents reported specifying unequal bequests in their estate plans.
Can this create problems?
Unequal bequests can sometimes create issues and may lead to estate disputes. The difference in the value of individuals’ inheritance could cause personal issues between the heirs. One person may feel slighted if they receive less, or they may think that their parents preferred their siblings.
Unequal bequests could also lead to legal challenges. For example, say that an elderly person has three children, two of whom still live in their hometown. The third child lives overseas. If it is that third child who receives a smaller inheritance, they may suspect something like undue influence on the part of their siblings. They could claim that their parent’s/parents’ will is therefore fraudulent and should not be used in court.
How can disputes be prevented?
One of the best ways for parents to prevent these disputes, when deciding to use unequal bequests, is to have a family meeting in advance. At this meeting, they can inform the children of their decisions and allow them to ask questions. If there are any concerns or issues that would lead to a dispute, they can be dealt with in advance. This type of family meeting could show that the will in question is valid and that undue influence has not occurred, for instance.
As with all estate planning matters, early preparation is important. Those who are drafting an estate plan need to be sure they understand all the tools they can use and the legal options at their disposal if they are concerned about preventing disputes among their heirs and beneficiaries.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473612023-08-01T02:38:29Z2023-08-01T02:38:29ZAs soon as possible
Generally speaking, it’s best to start succession planning as soon as you know which approach you want to take. There’s no reason to delay. If anything, this process takes longer than people assume, so starting early is to your benefit.
Being proactive can also help the process go more smoothly. As noted above, it takes time to train workers and heirs so that they can take on these roles and figure out what they’re going to be doing within the company. If you simply leave the business to an heir one day and expect them to take over, it could be very difficult for them to do so. But if you bring them in three years before and let them work under you so that you can train them on the job, the actual transition can progress much more smoothly. Similarly, if you plan to have the business sold in the event of your death, working out the details of how it should wind down can help stakeholders to understand what is expected of them when the time comes.
As such, you don’t want to delay estate planning or business succession planning. Be sure you know exactly what steps to take to get this process underway by seeking legal guidance accordingly.]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473602023-07-05T11:42:22Z2023-07-05T11:42:22ZEstate planning can be used by almost everyone
The only sense in which this is true is if you’re under 18 years old. You do have to be a legal adult to write a will and make an official estate plan. As a minor, you may be included in your own parents’ estate plan, but you can make your own when you turn 18. Other than that, however, you can’t be too young to make a plan. All adults can potentially benefit from estate planning, even if they have modest assets. You don’t need to be wealthy, and much of estate planning isn’t even focused on wealth at all.
For example, you may want to make a medical power of attorney. If you are incapacitated for some reason, such as after an illness or an injury, you won’t be able to work with your medical team to make key decisions. A power of attorney gives your agent the legal ability to do so on your behalf. Again, people will sometimes assume that this is a provision needed by the elderly, who are more likely to suffer from incapacitating issues like heart attacks, strokes or Alzheimer’s. But it could be beneficial for anyone. People get injured in car accidents every day, for example.
Plus, it’s important to remember that estate plans can always be updated and changed. Maybe you’ll want to pick a new agent with your power of attorney in the future. But that shouldn’t stop you from choosing someone today. You can just make the alterations when you need to. The same goes for writing a will. You may have more heirs or more assets in the future, and you can easily update the plan to reflect this change.
As such, you may be considering getting started with your estate plan. Take the time to carefully consider your legal options and seek legal guidance, as necessary, to start putting your initial plan in place.
]]>On Behalf of Randy L. Williams, Clark and Williams, LLChttps://www.randywilliamslaw.com/?p=473592023-05-25T20:55:02Z2023-05-25T20:53:23ZBenefits of revocable trusts
Revocable trusts are popular because they allow you to have control over your assets, enabling you to avoid probate, the legal process of distributing your assets after your death.
Probate is often time-consuming and expensive. Using a revocable trust, you can ensure that you distribute your assets according to your wishes without going through probate.
In addition, this estate planning tool has the advantage of privacy. Unlike a will, which becomes a matter of public record after you file it with the court, a revocable trust is a private document. Your assets and beneficiaries remain private, which protects both.
If you become incapacitated or unable to manage your legal, financial or health matters, a revocable trust allows you to name a successor trustee to manage your trust for you.
Are there any tax benefits associated with revocable trusts?
While a revocable trust does not directly provide tax benefits, it simplifies your estate planning, and by avoiding probate, you can avoid having to pay certain taxes in some cases.
Revocable trusts are a popular estate planning tool due to their flexibility, privacy and the security it provides for your assets, as well as the guarantee that your wishes are followed.
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