Emotions can run high after a loved one dies, particularly if your family’s assets include items with sentimental value, and the last thing you want is for your family to start fighting after you pass away. Defuse Conflict Over Sentimental Items Before You Pass Away How can you prevent your heirs from fighting over items with sentimental value? Many people believe that a statement in a will or trust that basically says “tangible personal property should be divided as my heirs see fit” will solve the problem. However, this can lead to a host of potential conflicts. A better approach is to put specific items that you believe are of interest to certain family members in writing, and then discuss your decisions in advance with your family. In this way, many emotionally charged disputes can be avoided. What if you are convinced that a former spouse, one of your children,
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Turning 18 is a big deal, not just from a parent’s emotional perspective, but legally too. Eighteen is a magic birthday, a milestone into adulthood. At 18, your teen can vote, buy a house, or marry their high school sweetheart. They can also go to jail, get sued, and gamble away their college tuition in Vegas. In your eyes, your baby will always be “your baby,” no matter their age, but in the eyes of the law, that “baby” is legally an adult on their 18th birthday. In New York State, a child is entitled to be financially supported by his or her parents until the age of 21, unless married, self-supporting or in the military; as far as the law is concerned, he or she is an adult at age 18 and information regarding their health, finances, and education will not be disclosed to anyone without their written consent.
Continue Reading... →Another reason a will isn’t enough is that the ownership of many assets transfers outside the will, including life insurance, annuities, retirement accounts like IRAs and 401(k)s, jointly-owned property and more. The beneficiary designations of these assets, not the will, determine how they will be distributed. Many IRS rulings and court cases have concluded that the owner’s statements and intent in his or her will do not matter if they contradict what was written on the beneficiary designation form. This is why it is so important to review your beneficiary designations periodically to ensure they reflect your wishes now, not what you wanted when, for example, you opened the IRA 20 years ago. Many families utilize trusts in their estate plans. These provide a greater level of protection and flexibility than what a will alone can provide. For instance, a revocable living trust allows your estate to avoid probate entirely-and
Continue Reading... →A will can help you accomplish a number of important planning goals. For instance, it allows you to control how your assets are distributed after you pass away. Without a will, your assets will be distributed according to what is known as intestate succession, in accordance with strict guidelines set by the state. What you “would have wanted” is irrelevant to the state. Your assets must be distributed, and the state has devised a formula to do so. A will also gives you control over how your minor children will be raised if something terrible happens to you and your spouse. Your will allows you to name people of your choosing-people you trust-to raise and care for your children if you cannot. Without a will, the court will decide who has control over your children. The court’s decision could lead to your children being raised in a place and manner
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