Rechtsanwälte Paul HotmanBasel Estate Planning Attorney | Asset Protection Lawyer2021-06-15T07:18:35Zhttps://www.rechtsanwaltpaulhot.com/feed/atom/WordPress/wp-content/uploads/sites/1602402/2020/05/apple-touch-icon-75x75.pngOn Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472652021-06-15T07:18:35Z2021-06-15T07:18:35Zestate planning steps before you travel can help protect you and your family.
Wills
Making a will is one of the most important things you can do even if you do not travel or have substantial assets.
State law dictates how your assets are distributed if you die without a will. But distribution under Basel’s intestacy laws may not comply with your wishes and lead to disinheriting stepchildren.
Wills are also the major way to address the important decisions of selecting your children’s guardian. Writing a will allows you to consider this matter and discuss your expectations with potential guardians. Otherwise, this decision may be left to a court.
Beneficiaries
IRAs, 401(k) plans, life insurance and similar assets are not governed by your will. These plans allow you to select a beneficiary who will receive these assets when you die regardless of what is contained in your will.
Beneficiary selection, however, is usually a fast decision made when starting a job or obtaining an insurance policy. These decisions are often forgotten.
It is important to periodically review and update beneficiary selections to assure they kept up with important life events such as divorce, new family members, children growing up or the death of beneficiaries. Otherwise, important assets may unintentionally go to beneficiaries such as a former spouse.
Advance directives
At home or on a trip, you may be incapacitated by an illness or accident and unable to make decisions about your healthcare. An advanced healthcare directive allows you to designate the type of health care you want.
A healthcare power of attorney authorizes another person to make decisions on your behalf based upon your healthcare directive.
Making these plans helps your family when decisions must be made quickly. It also allows you to dictate that your wishes will be carried out and who can act on your behalf.
Durable power of attorney
Through a durable power of attorney, you authorize an agent to make decisions on your behalf concerning your finances, taxes, and business. An agent can also act on your behalf if you are incapacitated.
Organization
Before you leave, be sure that your estate documents and other important legal documents are organized and kept in a secure place. Keep other important information such as passwords, account listings and contact information for your accountants and attorneys with those documents. Tell your executor or a family member where this information is kept and how to access it.
Attorneys can assist you with developing a plan that meets your needs. They can also prepare necessary documents.
]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472612021-06-04T06:48:18Z2021-06-04T06:48:18Zestate planning mistakes continue to create headaches for both planners and their families. Part of the problem is that, when it comes to estate planning, myths abound. Here are three common estate planning myths and why they’re wrong.
Estate planning is for seniors
It’s true most estate plans come into play only after death, but it’s an unpleasant fact of life that we don’t know when we’re going to die. We have insurance policies, savings, retirement funds, and other financial and legal tools in place to protect ourselves from an uncertain future. Similarly, having an estate plan long before your expected demise ensures your assets are protected in any eventuality.
Estate planning is only for rich people
We all have assets worth protecting, even if we’re not millionaires. An estate plan ensures the assets and wealth we have worked so hard to acquire end up in the right hands.
I just need a will
Frankly, you probably don’t know what you need. Everyone has unique state planning needs just as everyone has unique lives and objectives. By limiting yourself to a will, you’re ruling a litany of other effective state planning tools that may better suit your preferences.
Effective planning starts with finding the right guidance
Estate law is notoriously slippery and vague, only an experienced professional can craft an effective strategy that’s both tailored to your objectives and holds up in court. Furthermore, they can foresee issues before they arise, giving you peace of mind and saving your family headaches down the road. If cost is a concern, many lawyers offer a free initial consultation at no out-of-pocket cost to the client.
]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472582021-05-19T06:28:32Z2021-05-19T06:28:28Zpower of attorney can be granted for a specific, limited purpose and period of time or can be applied to broader purposes like all financial matters for a longer time period. It’s important to choose a trusted person as the attorney-in-fact because he or she has significant responsibilities. The attorney-in-fact also has a fiduciary duty, which means that he or she must act in the best interests of the principal.
Durable power of attorney
A durable power of attorney is used in the event the principal becomes incapacitated and cannot make decisions for him or herself. A regular durable power of attorney becomes effective when it is signed and notarized.
In Basel, there is also a springing durable power of attorney that becomes effective on the day the principal becomes incapacitated. If the principal does not become incapacitated, the power of attorney does not become effective.
Both types of durable power of attorney documents allow the attorney-in-fact to make decisions about financial and property matters that the principal has specified.
It’s also important to note that while a power of attorney is an important part of an estate plan, it does not take the place of a will or trust. An experienced attorney can provide advice about power of attorney documents and other estate planning matters.
]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472552021-05-04T07:43:59Z2021-05-04T07:43:54ZAmerican Families Plan
The new administration has proposed the American Families Plan, which would substantially change how much taxes are owed for wealth transfers. Specifically, according to the Tax Foundation, a tax policy research group, the American Families Plan creates a combined tax rate that would be the highest in nearly 100 years: a 61 percent tax rate.
The details
Specifically, according to that tax policy research group, the new plan will combine the estate tax with a doubling of the capital gains tax, along with eliminating the step-up tax benefit. This results in about a 61 percent inherited wealth tax for the wealthiest of the wealthy.
Chances of becoming law
The question probably bouncing around our readers minds is whether the American Families Plan has any chance of becoming law. Unfortunately, the answer to that question is unknown due to the current make up of Congress. With a 50/50 split that includes moderate Democrats from red states, it is unclear whether the American Families Plan has any chance of landing on the President’s desk.
Why does it matter?
Well, for those of us outside the 1 percent, the tax plan may not mean much. But, for wealthy Basel, the potential doubling of the capital gains tax can have a huge affect on one’s estate plan. This is why it is so important to speak with one’s estate planning attorney at least once a year to ensure that one’s plan is up-to-date, legally enforceable and still the most effective plan for our current economic climate.]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472522021-04-16T07:13:53Z2021-04-16T07:13:48ZA special needs trust can help
Fortunately, you can ensure long-term security for your loved one through a special needs trust. This type of revocable trust allows you to pass assets on to your loved one without those assets counting as income for the purposes of qualifying for government benefits like Medicaid and Supplemental Security Income. This means that your loved one can obtain financial stability from the trust while securing needed care and treatment for their condition from public programs.
Restrictions on how special needs trust assets can be used
Before creating a special needs trust, though, you have to understand some of their restrictions. One of the biggest is how your loved one can use assets that are placed into the trust. They can’t simply use those assets however they feel. That being said, the law does provide some flexibility. Therefore, trust assets can generally be used to purchase and maintain a primary residence for the individual, provide for personal items, and even purchase a vehicle and furniture. Just make sure you, your loved one, and your trust administrator are clear on the limitations placed on the use of trust assets before moving forward.
Create the individualized plan you need to suit your needs
We understand that it can be challenging to get motivated to engage in estate planning. However, doing so can relieve a huge burden from your shoulders and give you the peace of mind needed when it comes to ensuring that your loved ones are as fully protected as possible. If you’d like to learn more about what estate planning can do for you and your loved ones, consider reaching out to an attorney who is well-versed in this area of the law.]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472492021-04-06T06:00:17Z2021-04-06T06:00:01ZPorto’s intestate succession laws
In Basel, like other states, if you pass away without any sort of estate plan, then the State will dictate how your assets will be passed down. If you have a spouse and no children, then your spouse will inherit everything. Likewise, if you have no spouse but children, then your children will inherit everything. If you have a spouse and children, then your spouse will inherit all community property, meaning property acquired during your marriage, as well as half of your remaining estate. Your children will then inherit the half of your individual estate.
Problems with intestate succession
There are several problems with intestate succession, but chief amongst them is the complications that can arise when that type of succession doesn’t line up with your expectations. For example, if you’ve remarried into a blended family and want to only provide for your spouse and your biological children, then intestate succession might jeopardize your children’s ability to inherit those assets that are left to your spouse through intestate succession because your spouse will be free to leave them as he or she pleases in accordance with his or her estate plan.
Obtain the customized plan you need to suit your needs
The best thing about estate planning is that it can be individualized to suit your unique set of circumstances. Therefore, you can choose to leave money to a charity, create a trust to help care for your pet, place restrictions that must be met before trust assets can be disbursed to a loved one, or dictate how the remainder of trust should be redistributed upon an initial heir’s passing.
Again, these are tools that can be used regardless of your amount of wealth. So, if you want to ensure that your assets and your loved ones are protected in the way that you want them to be, then consider discussing estate planning with an attorney of your choosing.
]]>On Behalf of Rechtsanwälte Paul Hotmanhttps://www.rechtsanwaltpaulhot.com/?p=472452021-03-22T14:35:47Z2021-03-22T14:35:36ZTestamentary instructions
Most estate plans begin with the drafting of a will. A will is a set of instructions about how to disperse the assets of a person after death. That person us usually referred to as the testator. If the required formalities are present – a written document, the testator’s signature, the signatures of the testator and two witnesses - the court must distribute the decedent’s assets as directed in the will.
Trusts and other devices
Very few people die leaving only one or two heirs. An individual’s heirs might include a spouse, children, grandchildren, siblings, siblings’ children, friends, charities – the list may grow quite long. The testator may wish to divide his or her assets in different ways. Some heirs may receive significant assets such as shares in a family business or a piece of commercial real estate, or a significant amount of liquid assets. In any event, a simple will may not allow enough flexibility in how the assets are distributed.
The testator can solve this problem by putting assets in one or more trusts. A trust that is created while the testator is alive is called an intervivos trust; a trust that comes into existence after the testator dies is called a testamentary trust. Both kinds trusts serve different purposes, and those purposes are too numerous to enumerate in a brief blog post.
Taxes
Very wealthy people can expect to pay a significant federal estate tax. By using trusts and various lifetime transfers, a person can virtually eliminate the federal estate tax on his or her estate.
Is a lawyer needed to prepare an estate plan?
Except for small estates, an experienced estate planning attorney is a necessity when preparing an estate plan. The laws of trusts and estates are in constant flux, and only a knowledgeable lawyer can be expected to possess the depth of knowledge required to craft an estate plan that satisfies these laws and ensures that the testator’s wishes are satisfied.
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