Estate Planning And Homeownership: Protecting Your Assets

If you own a home, you have a good reason to form a plan for what happens to it after you die. Estate planning is not the most exciting of topics, but it can be incredibly important for your loved ones. With this information, you will understand the importance of setting up an estate plan for your home and your other assets.

Types of Homeownership

Leaving property to your loved ones can be a significant addition to their potential inheritance, but the amount depends on the type of ownership. Common ownership arrangements include:

• Sole Ownership: One person owns the property, which may transfer to their estate or their beneficiaries when they die.

• Joint Ownership With Right of Survivorship: Multiple people own the property. When one of them dies, the others automatically gain ownership of that person’s share of the property, without passing it to the estate.

• Joint Ownership Without Right of Survivorship: In this case, multiple people own the property, but they do not gain any of another’s equity when that person dies. Instead, the equity of the person who died passes to the estate.

• Ownership by Contract: A person owns a home and has control over it until they die. Once they die, the property passes to beneficiaries specified in the contract, bypassing the estate or probate.

When you start working on estate planning, be sure that you understand how you own your home. The type of ownership, as well as the extent of your estate planning, may affect how quickly your heirs can gain control of the property or the equity in it.

Challenges to the Estate Settlement Process

When you think about estate settlement, it might seem like an easy process, especially if you only have a handful of major assets to settle. Settling even a small estate, however, can create a variety of potential challenges, especially if you intend for your loved ones to inherit a property they can live in:

• Lack of a Will: If you fail to leave a will or a trust, your heirs will have to go through the probate process. This process can be faster if everyone agrees on the best way to settle the estate but can take months if there is any disagreement.

• Contested Will: Even if you leave a will with clear expectations, it’s possible that your heirs will disagree over the settlement. A contested will or probate can be expensive and time-consuming to resolve.

• Mortgage: The presence of a mortgage on the property may affect whether your heirs can maintain the property or if they must sell to settle the mortgage.

• Late Payments/Taxes: If payments for the mortgage or property taxes are late or several months behind, heirs may have to catch up on the payments before they can decide what to do with the property.

An experienced financial advisor working together with your attorney to create a clear estate plan can potentially minimize or eliminate most of these possible challenges.

Leaving Property to Your Loved Ones

If you want to avoid many of the possible challenges that heirs face during the estate settlement process, creating a will or a trust is the best way to ensure it. Much of the probate process involves researching the person’s assets and debts, so that the debts can be settled and the remainder of the assets handed down to appropriate beneficiaries. If the information about your wishes is not clear, the probate court may take months to sort it out.

By comparison, if you set up a trust for your assets, you may be able to bypass the probate process entirely. As an added benefit, the financial institution setting up your plans for the estate may also act as an executor, ensuring that the estate is settled according to your wishes as much as possible. 

The best gift you can give to your loved ones on your death is a concrete plan that they do not have to find on their own. Grieving the loss of a spouse, parent or sibling can be less stressful when the settlement of the estate is handled by a competent party with all the information.

Author bio: Jonathan Kuiter is the Director of Business Development at Brown and Company, a wealth management firm dedicated to simplifying its clients' financial landscapes by removing uncertainty and providing clear, tailored strategies.

SOURCES

https://trustandwill.com/learn/property-ownership-estate-planning

https://www.fidelity.com/learning-center/personal-finance/estate-planning

https://www.thebalancemoney.com/overview-of-types-of-property-ownership-3505420

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Brown & Company and LPL Financial are separate entities. Brown & Company and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.

Uncover the Benefits of Working With an Estate Planning Lawyer

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As a homeowner, you work hard to provide for yourself and your loved ones. You've worked diligently to build a comfortable life and want to ensure that your assets are protected and passed down according to your wishes. This is where an estate planning lawyer can be invaluable. In this blog post, we will uncover the benefits of working with an estate planning lawyer and how they can help you secure your legacy.

Expertise and Knowledge

Estate planning can be complex and overwhelming, especially if you have significant assets or a complicated family situation. An estate planning lawyer has the expertise and knowledge to navigate the legal intricacies of wills, trusts, probate, and other important documents. They can help you create a comprehensive plan that meets your specific needs and goals.

Personalized Advice

Every individual's situation is unique, which is why working with an estate planning lawyer is crucial. They will take the time to understand your financial situation, family dynamics, and personal preferences to create a customized plan that reflects your wishes. Whether you want to minimize estate taxes, protect assets from creditors, or ensure a smooth transfer of wealth to future generations, an estate planning lawyer can provide personalized advice tailored to your circumstances.

Avoid Costly Mistakes

One of the biggest benefits of working with an estate planning lawyer is avoiding costly mistakes that could jeopardize your legacy. DIY estate planning kits or online templates may seem like a more affordable option, but they often lack the thoroughness and attention to detail that a lawyer provides. A simple oversight or error in drafting legal documents could result in expensive probate proceedings or disputes among beneficiaries. By working with a professional, you can ensure that your wishes are clearly articulated and legally binding.

Peace of Mind

Perhaps the most valuable benefit of working with an estate planning lawyer is the peace of mind that comes from knowing your affairs are in order. By creating a solid estate plan with the help of a lawyer, you can rest assured that your assets will be distributed according to your wishes after you pass away. You can also make provisions for incapacity or medical decisions in case you become unable to make them for yourself. Knowing that you have taken care of these important matters can provide comfort and security for both you and your loved ones.

Long-Term Relationship

Finally, building a long-term relationship with an estate planning lawyer allows for ongoing support as your circumstances change over time. Life events such as marriage, divorce, birth of children or grandchildren, changes in financial status, or relocation may necessitate updates to your estate plan. By maintaining regular communication with your lawyer, you can ensure that your plan remains relevant and up-to-date throughout all stages of life.

In conclusion, working with an estate planning lawyer offers numerous benefits for homeowners looking to secure their legacy and protect their assets for future generations. From expert guidance and personalized advice to avoiding costly mistakes and ensuring peace of mind, a professional lawyer can help you navigate the complexities of estate planning with confidence. Consider reaching out to an experienced estate planning lawyer today to start creating a comprehensive plan that reflects your unique needs and goals.

Guest Post - What to Put in Your Emergency Binder: Home Edition

If there’s anything the pandemic has taught us, it’s that it pays to be prepared. It’s important to take steps to ensure that you do everything you can to get ready for an unexpected emergency. If there’s a fire, earthquake, or another natural disaster, you don’t want to be wandering around your home, trying to figure out what documents to bring with you.

An emergency binder is one of the best ways to organize and maintain vital information in the event of an emergency. If the worst-case scenario were to happen, an emergency binder delivers peace-of-mind. You can put all of your important documents in one place rather than having to scramble at the last minute to figure out where your kids’ birth certificates went.

Below, we’ll explore the best way to go about putting together an emergency binder, what documents to include in the binder, and how to create an emergency plan. 

What’s a family emergency binder?

A family emergency binder is a way to store and secure your family’s important information. These documents will help you should you ever need to start from scratch if everything else is lost. It should include all the important documents needed for yourself, your children, and your pets if you have any. 

Your emergency binder might contain information about your taxes, estate plan, emergency contact numbers, legal documents, and notes about any assets you have.

What should I include in my emergency binder?

We’ve divided up what you should include in your emergency binder into a few different categories. Not all the documents may apply to you, so just use this list as a guide.

Emergency contact information, phone numbers, and email addresses

• Family, friends, neighbors

• Employers, colleagues, boss

• Physician, counselors, specialists, dentists

• Vet and emergency vet address and number (if you have any pets)

• The utility company information for your home and your utility account number

• Local non-emergency numbers

Identification copies and records

• Driver’s license

• State identification

• Social Security card

• Adoption papers

• Birth certificate

• Passport 

• Visa

• Marriage certificate

• Credit card copies

• Military record

• Foster record

• Citizenship paperwork

• Death paperwork

Medical and hospital information

• Insurance card copy, insurance group number

• Your physician’s name, contact information

• Pharmacy number

• Medical history record

• Prescription list

• Immunization records

• Allergies

Insurance information

• Home inventory

• Real estate agent information

• Insurance cards

• Life insurance

• Auto policy

• Homeowner’s policy

Financial data and information

• Credit card account number, password, card copies

• Investment accounts

• Bank account number, password, pin, card copies

• Bank statements

• Safety depository info

• Tax information and tax returns 

Legal documentation

• Will

• Estate plan

• Power of attorney

• House deed

• Titles to your cars

• Lease information

Other vital information

• Evacuation checklist

• Spare keys to your car and house

• Copy of emergency plan

• USB storage device with important photos

• Maps

• Cash

How to create the emergency binder

Step 1: Get a high-quality, durable binder

To put together your emergency binder, consider investing in a high-quality view binder so you can label the spine easily. Because of the number of documents the binder will hold, it’s important to get a thicker, three-inch binder size.

Step 2: Organize your paperwork with color-coding

It’s also a good idea to use color-coded page dividers, so you can split up documents based on their category. Page protectors are another essential part of your emergency binder because it keeps paperwork safe from water and debris damage.

Step 3: Save digital copies of all documents on a USB drive

It’s a good idea to keep copies of everything you have in your emergency binder in a virtual form in a USB storage device. This way, if anything happens to the hard copies, you still have your essential documents. 

Step 4: Get a waterproof pouch

For any cash you might need in an emergency or any other small things you need safe, consider investing in a waterproof pouch. You can even get a large waterproof pouch to cover your emergency binder.

Step 5: Place your emergency binder in a fireproof safe

The best place to put your emergency paperwork is in a fireproof safe. Make sure you keep the access numbers to the safe somewhere secure. 

How do I create an emergency plan?

If your region often deals with one type of emergency, like hurricanes, for example - it’s important to have a plan for what to do if disaster strikes in addition to an emergency binder.

The first step is to put a plan together with friends and family. Start by asking yourself these questions:

1. How do I receive emergency alerts and warnings for my area or neighborhood?

2. What is my shelter plan? 

3. Do I know the evacuation route?

4. What is my plan to communicate with my family and/or household?

5. Is my emergency preparedness kit updated? 

6. Does my household have specific needs? 

   1. Does anyone in my family have medical needs? Will anyone need specific help during an emergency with transportation or mobility?

Besides coming up with a basic emergency plan, don’t forget to put together an emergency kit as well. Here are some items you might want to put in a basic emergency supply kit:

• Flashlight

• Non-perishable food (three-day supply)

• Water (one gallon per person per day)

• Battery-powered radio

• First aid kit

• Extra batteries

• Whistle

• Wrench or pliers

• Dust mask

• Duct tape

• Maps

• Cell phone with chargers and a backup battery

• Extra pet food

• Sleeping bag

• Matches in a waterproof container

• Fire extinguisher

• Prescription medications

• Personal hygiene items

Once you’ve assembled your kit, make sure you update it and organize it at least once a year. You should replace any expired food and re-think your needs annually. Keep your emergency kit in a safe but accessible place like a hall closet or in a kitchen cabinet.

Takeaways: Preparing for the Worst

Nobody wants to think about a natural disaster, but by taking steps beforehand to prepare, you can help ensure your family’s safety and happiness. Placing all of your essential documents in an emergency binder can give you peace-of-mind that you’ve done everything possible to prepare. 

Author Bio: Samantha Rupp

Samantha Rupp holds a Bachelor of Science in Business Administration and is the managing editor for 365businesstips.com. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.

Paper Organization: Estate Planning

On March 11th the WHO officially declared a pandemic. In order to “flatten the curve” we have been spending much more time in our homes enabling us to tackle projects we usually do not have time for. After organizing the attic, basement, and other areas which never seem to get done, now may be the time to organize paper as well.  Paper can be challenging. Sometimes piles of paper are waiting to be filed, or things have been filed for 20 years and they are outdated. You have been meaning to review and update but it is never the right time, never a priority.

During this quarantine, one area clients have asked for our advice is estate paper organization. For example, what papers will be needed if something happens to me? Where do I store these papers? These are things that we don’t like to think about but they are very important to keep current.  Organized papers can make a huge difference in helping our loved ones should something happen to us. 

Here is a list of information/paperwork you will need to gather and store:

• Copy of your current Will

• Checking/Saving/CD information. Which bank, credit union, or financial institution do you use?

• Safe Deposit Box. What bank is it located, where is the key located?

• Money Market Accounts/Stocks/IRA’s (Roth and traditional)/Bonds/Other Investments/CD’s. Which institution handles them, who is the contact person?

• Mortgage Documents

• Life Insurance Policies (Whole life, Term, Long Term Care Policies) 

• Home Insurance

• Jewelry /Personal Property Insurance if applicable

• Cemetery/Funeral Information

• Pension and/or Social Security information 

• Vacation home or Time Share information

• Military Records (possible death benefit?)

• Royalties/Dividends 

• Organization memberships with payable upon death benefits

• Annuities with payable upon death benefits

• Deeds for cars, trucks, motorcycles and boats

Keep all paper current. No need to include old Life Insurance Policies or outdated Deeds. 

Decide where papers will be kept. Safe Deposit Box? A fire proof safe in your house? Let a family member/executor know where everything is located should something happen to you. 

Consider documenting the above on a single sheet to make the executor’s job easy should they need to access your information. 

Getting all these things together may take some time, but when done you will feel a great sense of relief knowing your papers are organized and can be easily accessed when necessary. Should you need additional help or advice, contact us .