Category: Estate Planning
The Disadvantages of DIY Estate Planning
September 23, 2013 | William F. HuefnerThese days it seems like there are thousands of DIY legal forms on the Internet. To believe some websites you don’t really need a law degree to practice law—you just need the right “template!” But attorneys need special training and licensing for a reason. The law can be a tricky thing, especially when it comes to estate planning. If you do something incorrectly while writing your will then you could end up costing your heirs a great deal of time and money trying to fix your mistakes. Legal language is written in a very precise way. It’s meant to eliminate ambiguity and to address specific issues that you might not think of. Something that seems very clear to you may not make any sense at all to your heirs or the court. Your DIY will could also leave your last wishes vulnerable to a challenge from your relatives. Ultimately, your will could be discounted as invalid, and it would be as if you’d never written one at all. Attorneys also know how to ask you the right questions. This ensures that you address everything that you need to address. It ensures that you don’t miss anything important. There are parts of your estate that you probably don’t think much about on a day…
Read MoreMake a Will: It Won’t Kill You!
September 16, 2013 | William F. HuefnerMany people avoid the process of estate planning because of fear. There is a persistent superstition that says that you will die soon after you make your will. Fortunately, making a will does not invite death any more than any other activity you do. A will is just a plan for what will happen when you die. Many people make out wills and then go about living their lives for decades after. Dave Ramsey, the popular financial expert, has a pretty good comment to make on the subject of wills. In The Total Money Makeover he writes: “You are going to die, so do it in style, and do it with a will!” Ask yourself whether or not you would want the state to make decisions about your property, children, pets, or debts. If the answer is “no” then you definitely need to engage in some estate planning. If you have a lot of assets then you will definitely want to engage in this process to make sure that your life’s work is not distributed in a way that would be unpalatable to you. A will is simply another thing that you should take care of. It’s just a piece of business, much like filing your taxes, paying your bills, or buying insurance….
Read MoreWill My Family Inherit My Debts?
September 9, 2013 | William F. HuefnerAre you deep in debt? If so, you’re not alone. While much of estate planning revolves around assets there are those who will leave more in the way of debts. If you’re in this situation you may be quite worried about how you will protect your loved ones from your bad financial situation. Fortunately, there’s good news. Your heirs will not inherit your debt directly. Your credit card bill will not suddenly pass into their name. That doesn’t mean creditors won’t try to make an argument that you let your heirs assume responsibility for some debts in certain situations, so make sure to consult with an attorney if you want to avoid this situation. Secured debt is a little different. If you want your heirs to inherit a house that still carries the mortgage they will need to keep the mortgage current until the house is sold. If your heirs want to keep the house the mortgage may need to be refinanced. However, creditors can go after the assets in your estate. Creditors may be able to seize secured assets or force the sale of other assets to pay your obligations. Debt reduces the amount of money that your children will inherit. However, the lack of legal obligation on the part of your…
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