FAQs | Law Office of Robert P. Newman, PC.

Before hiring a lawyer, you should spend some time researching the law firm you are considering. Ask for information about the lawyer’s education, training, and experience dealing with cases similar to yours. Ask the lawyer to go over the fee contract with you in detail, and be sure you understand how you will pay the lawyer’s fee and costs. Ask about the possible adverse consequences if your case is lost. Ask if your lawyer intends to handle your case alone, and, if you are told that lawyers from outside law firms will be assisting, find out what the fee arrangements will be.

Yes. While some people are hesitant to count their chickens before they hatch, looping your estate planner into your full financial picture is the best way to prepare for whatever the future may hold. By planning ahead, you can help ensure that whatever is left to you will be protected and able to be enjoyed for years to come. With all of the emotions that surround the passing of a loved one, you’ll be able to focus on grieving and the administration process, without having the additional worries of how you will handle your finances.

Before hiring a lawyer, you should spend some time researching the law firm you are considering. Ask for information about the lawyer’s education, training, and experience dealing with cases similar to yours. Ask the lawyer to go over the fee contract with you in detail, and be sure you understand how you will pay the lawyer’s fee and costs. Ask about the possible adverse consequences if your case is lost. Ask if your lawyer intends to handle your case alone, and, if you are told that lawyers from outside law firms will be assisting, find out what the fee arrangements will be

Money can be a taboo subject in some families. Broaching this subject with your family may be difficult and uncomfortable, but it is necessary. Start the conversation during a relatively stress-free time rather than springing it on a family member during the chaotic holiday season or before a big family celebration. Instead of focusing solely on what you are to receive as your inheritance, you can discuss it as part of a larger conversation regarding your loved ones’ future plans for their health and overall well-being. You can begin by inquiring as to what type of planning they have already done. Have they designated agents under Financial or Medical Powers of Attorney to act on their behalf should they become incapacitated? Do they have a living will in place to assist with end-of-life decisions? While planning for an inheritance may be your main focus, this conversation can help ensure that your loved one is protected as well.

A great deal of our time is spent gathering information from clients who contact us for the first time. Names and dates are always important and we will often ask a new client to write a chronology of the events that led him/her to seek legal counsel. We will want to hear as much detail as you can provide about your case so that we can make informed decisions about whether to accept your case and, if so, how we should begin prosecuting it. For estate planning and elder law cases, we have an extensive client questionnaire designed to provide us with the information we need to make informed recommendations about your case.

At the Law Office of Robert P. Newman, P.C. you will find a courteous and professional staff. Meeting a law firm for the first time can be a distressing experience, and we will do our best to make you comfortable. You will always be greeted with a smiling face, and offered a wide selection of refreshments upon arrival. Our staff reserves plenty of time to meet with new clients to discuss potential cases. Having documents at our disposal is beneficial, so we always suggest that new clients bring pertinent paperwork and any questionnaire they may have been provided prior to the appointment.

Just because you marry someone does not automatically mean that they will inherit from you. Some assets, such as life insurance policies, have beneficiary designations that must be changed. Whoever is listed on those will receive the assets on your death. For those assets that do not have a beneficiary designation, they will be distributed according to the state law of intestacy. While each state may vary, in most cases, the assets will be distributed between the surviving spouse and other family members. An estate plan puts you in control of the inheritance you leave behind.

Because the year is coming to an end, it is a great opportunity to ensure everything is in place for a successful and financially safe new year.

Also, for things such as 401(k) contributions and funding Health Savings Accounts, the federal government allows you to contribute a maximum amount per year. Towards the end of the year, if you have found you have not taken full advantage of these, it may be a great opportunity to save more for your retirement and your future medical needs.

Just because you marry someone does not automatically mean that they will inherit from you. Some assets, such as life insurance policies, have beneficiary designations that must be changed. Whoever is listed on those will receive the assets on your death. For those assets that do not have a beneficiary designation, they will be distributed according to the state law of intestacy. While each state may vary, in most cases, the assets will be distributed between the surviving spouse and other family members. An estate plan puts you in control of the inheritance you leave behind.

That depends on the type of case. Some matters, such as Personal Injury litigation, are usually handled on a contingency fee basis, and no money will be required. Other cases, such as Estate Planning, Deed preparation, Business Formation are charged at a flat fee, with half of the payment collected prior to beginning work. Other types of cases, such as general litigation, may be billed hourly and require a preliminary retainer. In every instance, the full details of the fee and cost agreement you have with our firm will be explained to you in detail before we begin working on your case.

A move should not be a reason to put off your estate planning. While we understand that there are a lot of changes occurring, tragedy can occur at any time. Even if you are changing states, there are still some aspects such as updating your beneficiary designations that can be accomplished and will not be affected by the move. Additionally, it is a good idea to have a Medical Power of Attorney, even if you are not going to be in the state for too much longer. Life can be very unpredictable and you do not want to get caught needing court intervention should something happen to you or your spouse before the move.

Statistics prove that most cases get resolved prior to going to trial. Regardless, we prepare every case as if it might ultimately be decided by a jury. We believe in being prepared in the event that an agreement between the parties cannot be reached. By the time a case is ready for trial, our clients will have spent a great deal of time with the lawyers and support staff in our firm. You will know what to expect if and when your case goes to trial.

Athough it is always better to seek the help of an estate planning attorney, there are some basic strategies you can use to do asset protection planning on your own. First, always make sure that you have proper insurance. Make sure that your homeowner’s insurance is up to date and accurately reflects the current value of your home. If you own a business, make sure you have business insurance to cover any liability or losses that might arise so that your personal assets are not at risk.

Second, if you are married (and your state law allows for it), you and your spouse should own your home as tenants by the entirety. This type of ownership means that the creditor of one spouse cannot take your home. Depending on your state law, you may be able to co-own other property the same way with your spouse.

Lastly, make the maximum contribution to your 401(k) or IRA accounts. These accounts are protected from bankruptcy proceedings for you and your spouse (with certain limitations). This same protection, however, does not extend to an inherited IRA.

It is really up to chance and state law. Some beneficiary designations and asset titles are automatically revoked after a divorce if your spouse is named as the beneficiary, while others do not. For example, many retirement plans will pass to the named beneficiary, even if you are divorced from that person at your death. It is much better to be proactive and make conscious choices about your beneficiary designations, rather than leaving it to chance.

Unless you have a contractual will (which is as rare as snow in Hawaii), you are free to update your estate planning documents any time you want after a divorce is finalized. You may need to factor in ensuring that any alimony or child support claims that survive your death are paid, but it would be incredibly rare and unusual to required an inheritance be left to an ex-spouse in your will or trust. If you are paying child support or alimony, let us know so we can factor it into your plan.

Not to sound like a lawyer, but it depends. It really depends on state law and the terms of your power of attorney documents. Additionally, there’s always a risk that an unscrupulous ex-spouse may conveniently omit that the divorce has nullified a power of attorney and attempt to use the document anyway.

The better practice is to revoke your old power of attorney documents and create new ones to avoid any ambiguity. Then, let your hospital, physicians’ offices, banks, or anyone else who may have a copy of your old powers of attorney on file know that you revoked the old one naming your now ex-spouse. If necessary, provide them with a new copy naming your new agents.

Your divorce case may be final, but to be fully protected you must go through the estate planning process. Even if you created a plan while you were married, you are now a single person in the eyes of the law. Plus, the divorce decree may have divided the assets but it did not let you express who you want to leave them to now that you are no longer married. Estate planning lets you decide to whom you want to leave your assets.

Generally no. Once you are divorced, you are treated as a single person for estate planning purposes. As a result, there’s no permission you need to change your will or revocable trust. Irrevocable trusts vary, depending on their purpose. If you have an irrevocable trust of any kind, bring a copy with to your meeting and we can examine what options you have. If you have a contractual will (which is as rare as the Washington Football team having good seasons), you may need to discuss with your spouse or look at your divorce decree.

Go Giants!

There are two kinds of guardians - (1) those appointed to care for a minor child when the child’s parent is unable to do so, and (2) guardians appointed for the care of an incapacitated adult who can no longer make his or her own decisions. Comprehensive estate planning addresses both types of guardians, so that you and your family are fully protected.

Although a guardianship for an incapacitated adult can be avoided by adding proper powers of attorney, and explicit directions for them, to your estate plan, you should always name guardians for minor children. A court will want to make sure the child’s best interests are cared for. The way that you, as a parent, can make your wishes known is to designate a guardian for your minor children in your estate plan.

Of course you can select them to the be guardian for your children. With a comprehensive estate plan, you can “split up” the roles: one person manages the money (the successor trustee) while another person raises the children (the guardian). Sometimes the same people are appropriate for both roles and other times, naming different people is the right thing to do. This is what we call a “counseling issue,” meaning that after we talk it through, you’ll know what decision to make. The people who care for your children day-to-day may or may not be the best fit to manage the finances as well. The responsibilities do require different skill sets. Luckily, your plan can be tailored to your unique circumstances and needs.

If you do not have a will, the court will decide who settles your estate and raises your children and state law determines who gets your assets - and it may not be who you think. Most people want to make those decisions themselves; don't you?

Additionally, life insurance may provide the money to provide for your family if you are not able to, but it does not provide any structure, guidance, or protection against waste or financial abuse. When you use a “plain” beneficiary designation, you lose the ability to provide this protection for you family. But, a comprehensive estate plan gives you the opportunity to provide safeguards and protection against waste or abuse. Life insurance can be very helpful component of estate planning, but only when it’s used properly.

Guardians for minor children must usually be named in a will. If you fail to appoint guardians in your will, the court will decide who raises your children. For parents of minor children, this is the most important estate planning decision you will ever make.

Even though it is hard and no one can raise your children as well as you can, move forward and select the guardians you think will muddle through the best. Some people delay estate planning because they cannot make this decision. Do not do that; your inaction puts your children at risk. And, be sure to name back-up guardians as well in case your first choice is unable to serve if the time comes.

Maintaining privacy is a very serious matter. However, too much secrecy can breed distrust and cause problems among the family. If you do not want to get into all of the details of your estate plan, such as what or how much each person is to receive, it is important to at least let your family know that you have had a plan prepared and that it reflects your wishes. With this little bit of information, your family will understand that the choices you made were yours and not someone else's, and that you have taken the time to have them memorialized.

I always suggest my clients have the discussion either during Thanksgiving holidays, but not during football and definitely AFTER dinner!

Everyone needs estate planning, no matter their age. Children under the age of 18 are protected by their parents’ estate plan; everyone age 18 or older needs his or her own estate plan. Of course, estate plans vary immensely depending on goals, finances, family situation, domicile (where you live). There is no one-size-fits all estate plan. If you’re wondering whether you need an estate plan, you’re asking the right question and, yes, you do.

You do not need to be a Rockefeller, Gates, Bezos, or Soros to need an estate plan. In fact, you don’t need any assets to need an estate plan. What you do need is one of the following: 1. someone you love, 2. the desire to control your life and finances, 3. the desire to maintain privacy, or 4. the wish to avoid court interference. To help you think this through, here are non-monetary reasons to have an estate plan in place: 1. an estate plan empowers your trusted helpers to make healthcare decisions and manage your day-to-day business if you’re not able to; 2. appoints guardians for minor children and pets; and 3. avoids medical heroics through a living will.

Everyone is surprised when we answer this question. Even an 18-year-old high school senior needs her own estate plan. Once a child attains the age of 18, she is legally an adult and must make her own health care, financial, and legal decisions. Without legal documentation, parents are powerless to act on behalf of their adult children. Of course an 18-year-old’s estate plan is very different from a 48-year-old’s estate plan because life, assets, goals, and family situation evolve over 30 years, but some basics are the same.

This is a common misconception. Comprehensive estate planning takes the whole person into account. It involves selecting trusted individuals to carry out one’s wishes and drafting documents that carefully guide and protect future generations. Estate planning also goes beyond taxes, wealth, and medical decision making: Many people choose to include things like recorded oral histories and precious heirlooms in their plans. This makes estate planning not just about property, but about the legacy, values, and vision you want to pass along to future generations.

You do not need to be a Rockefeller, Gates, Bezos, or Soros to need an estate plan. In fact, you don’t need any assets to need an estate plan. What you do need is one of the following: 1. someone you love, 2. the desire to control your life and finances, 3. the desire to maintain privacy, or 4. the wish to avoid court interference. To help you think this through, here are non-monetary reasons to have an estate plan in place: 1. an estate plan empowers your trusted helpers to make healthcare decisions and manage your day-to-day business if you’re not able to; 2. appoints guardians for minor children and pets; and 3. avoids medical heroics through a living will.

There is actually a huge diversity of types of trusts, and part of estate planning is picking the ones that work best for you, your family, and your goals. In terms of passing your values to the next generation, educational and incentive trusts can promote or discourage certain life choices. For example, someone who prizes their family vacation memories might create a fund for that purpose. Additionally, charitable trusts or foundations can pass along your personal mission of philanthropy.

YES! A million times yes. Even an 18-year-old high school senior needs an estate plan. Once a child attains the age of 18, she is legally an adult and must make her own health care, financial, and legal decisions. Parents are powerless to act on behalf of their adult children without legal documentation. Plus it makes them feel important while at the same requires them to beginning thinking and planning as an adult.

There is no cut-and-dry rule for what you should and should not tell your children about your estate planning, but it is usually a good idea to err on the side of more information rather than less. It is a good idea to tell your children the reasons behind your decisions, so they understand how your values translate into your plan. Sharing your perspective far in advance using important documents like your health care directives can also reduce stress on your family in a difficult moment down the road. It is also an excellent way to reduce (or even eliminate) family infighting that sometimes occurs after death if your children have heard directly from you about the reasons for your decisions.

BTW, when we finally disclosed to my girls the value of my life insurance policy, they looked at me like hungry hyenas staring a raw meat. Then they looked at their mother as though they were denied the winning PowerBall ticket ;-)

Your pet trust includes instructions for care, and these instructions can be specific. If your dog needs to be fed a certain type of food at precise times of day, prefers a special toy, has a specific bedtime or needs to be walked three times a day in a specific park near your home, you can include all this information in the instructions. You should also talk with the person you plan to appoint as a caretaker and explain the situation, so he or she knows what to expect. You can even have your appointed caretaker tag along for a couple of days to get familiar with your dog’s routine.

We can certainly help! The specifics about how much money to leave for your pet will vary greatly depending on your specific circumstances, but we can will help you create an itemized list to ensure there’s enough to cover everything. Factors to consider will include how long your pet is expected to live, the current costs for caring for your pet, costs for the caretaker/trustee, etc. As for any surplus, you can easily designate where any extra money goes after your pet passes on (for example, the extra could be donated to your favorite animal charity), so you can rest assured that any extra will go where you think best. Depending on the amount being set aside and your other assets, we can also work with your financial advisor to ensure that your pet trust is completely coordinated with your other financial objectives.

Probate is the process by which the court validates the authenticity of a will; appoints an executor (aka personal representative); and supervises the settlement of an estate, including the payment of bills, filing of tax returns, and transfer of assets to beneficiaries. If no will is presented, the court will appoint an estate representative, called an "administrator." The administrator carries out the same duties as an executor; but when a person dies without a will the court must determine the heirs of the deceased. The complexity and duration of this heirship determination process varies from state to state, but typically the remainder of the probate process, such as the payment of taxes and bills, remains the same whether there was a will or not. Of course, estate assets are distributed to heirs at law as determined by the state's intestacy laws, not beneficiaries chosen by the testator (aka the deceased who created the will).

Sounding like a lawyer again, but it depends. Many people, but not all, think so. The difficulty and expense of probate varies from state to state (and in some jurisdictions, county to county) and from family to family because of differences in state laws, family goals and personalities, and assets. Many clients wish to avoid probate because it’s a public process, time consuming, and costly. We’ll take a look at your entire situation together and let you know whether a probate avoidance plan should be part of your estate plan.

First reason, because you can! Next because most people want to avoid probate because it can include high fees and costs, significant time delays and stress, and public dissemination of private information. What do I mean by public? In most cases, court records are public records, meaning that anyone could get a copy of your will, the estate’s inventory, and other information you might wish to keep private. The ease of accessing this information does vary from state to state, and sometimes even from county to county. Some places even have online dockets, allowing anyone with an internet connection to see a listing of your assets, debts, beneficiaries, and who got what. If you are like most people, you want to keep your family affairs and finances private, so probate should be avoided.

They may be getting along well now, but there is no telling what will happen after your death. The court records are full of cases that could be said to have begun with these exact facts. Estate planning puts you in charge and allows you to make sure everyone that is important to you - your new spouse and your children from a prior marriage - understands your wishes. This greatly reduces the risk of conflict and, in some cases, can completely eliminate conflict.

Joint tenancy does avoid probate and is often better than no planning. However, if you and your spouse were to die at the same time then the joint tenancy is “broken” and your respective halves would have to go through probate. Additionally, if your new spouse survives you, then he or she owns all of the property that was jointly owned. Even if the two of you agreed that your children from a prior marriage should be supported or left an inheritance, your new spouse owns the property and can do whatever he or she wants with the property. This could completely disinherit your children from a prior marriage.

We can do that together. We will help you set up an estate plan that protects and provides for whomever you’d like - often that’s children and, sometimes, a second or third spouse. Your estate plan, likely including trusts, will be carefully crafted to balance the interests of your children as well as your spouse. Without proper planning, too many parents accidentally disinherit their beloved children and cause havoc (and expensive lawsuits) in blended families. But with proper planning, you can take care of everyone’s needs in an equitable way that reduces the risk of expensive conflict.

In the estate planning world, the term “disabled” refers to an individual’s incapacity or the inability to manage day-to-day business affairs such as managing and protecting assets, signing papers, paying bills, and filing taxes. “Disability” or “incapacity” does not mean you are laid up on the couch with a bad back; instead, it means that you don’t have the physical and mental capacity necessary to manage your personal business.

Disability is the perfect example of why you need to appoint trusted helpers. If you have an up-to-date power of attorney, the named agent may be able to manage your finances, including paying your bills. Unfortunately, if you do not have a legally documented disability/incapacity plan, your loved ones will battle it out in court and a judge will decide who’s in charge. Because power of attorney documents are often turned down, we use the belt and suspenders approach for many clients, including a trust with disability provisions. TIP: Be sure to name a contingent agent in case your primary agent is unable or unwilling to serve. The same with disability trustees. Be sure to name successor disability trustees in case your named trustees are unable or unwilling to serve when the time comes.

While you do have some legal services at your disposal because of your military service,

sometimes the basic estate planning offered by your JAG office is not enough to carry out your specific wishes and truly protect your family. By working with an experi enced estate planning attorney, we can help ensure that your individual situation is evaluated and a custom plan is crafted and implemented to meet your needs.

Although $400,000 seems like a lot of money, it can be depleted quickly. Depending on your

unique situation, your family may need more than that. Are you married? Do you have children? The cost of raising a child to age 18 is approximately $250,000 (at least), so that life insurance could be eaten up quickly. Will your family need to move if you pass away? Does your spouse currently work, and will he or she need to return to work and then find child care? The passing of a loved one can throw a family into financial turmoil. With the proper planning, it is better to leave your family with more resources, appropriately protected, than too few.

YES. Estate planning is not a one and done task. Depending upon how long it has been since you had the documents prepared, it is always a good idea to have them reviewed by an experienced estate planning attorney to make sure that your wishes are adequately contained in the old documents. Life is full of changes, and it is important that your estate planning documents reflect your life and needs as they are right now.

No. A personal representative/executor only has authority after you die. This is because in a Will, a testator/testatrix (i.e., you) provides instruction as to who shall serve as personal representative/executor to settle the estate and how assets will be distributed. A power of attorney, not a will, is used to provide assistance, such as signing documents for you, while you are alive, but sick.

To stay in control of your assets and avoid court interference as much as possible, you should have a strong, up-to-date estate plan in place. This includes having an executed will, health care power of attorney, and a financial power of attorney. Unsigned or incomplete documents do not help – be sure you finalize things. Let your family know that you have done estate planning, where you have stored your documents, and who to contact (i.e., the attorney that helped prepare your documents) should you become incapacitated or die. Regarding storage, if you are a Maryland resident, your will can be stored for safekeeping with the Register of Wills for your county.

An important part of the estate planning process is deciding who will help you manage your responsibilities if you are no longer able to and when you are gone. Here are the key roles that you need to assign.

Healthcare Power of Attorney

What this person does

Steps in to make health care decisions for you when you cannot make such decisions for yourself
Makes decisions ranging from ongoing care or basic medical decisions to emergency decisions in a life or death situation

Questions to consider

Does this person understand what I would want done, and will he or she stand by my wishes?
Does this person live nearby, or would he or she be able to live nearby if my situation required it?
Is this person logical in high-stress times and able to make medical decisions?
What experience has this person had making other health care decisions? Will he or she know what questions to ask and how to be my advocate? Can this person be a strong advocate for me?
Is this person close to me and comfortable making a health care decision for me? Do we have compatible opinions about health care treatment?
Do I trust this person to carry out my wishes if I am unable to make decisions for myself?

Durable Power of Attorney

What this person does

Steps in to make financial decisions for you when you cannot make them for yourself
Needs to be someone you trust to carry out all types of financial decisions such as paying bills or making deposits

Questions to consider

Do I trust this person to manage my finances if I am unable?
Will this person be available to make these decisions? (Consider where this person lives, what he or she does for a living and how many other commitments he or she may already have.)

Personal Administrator (i.e., Executor)

What this person does

Works with your attorney and other financial advisors to settle your financial affairs after your death. Includes filing taxes, paying bills and making sure all of your property goes where you want it to go.
Either does the work or hires professionals to help with taxes and distribute assets and other notices required to be given by the estate. The Personal Administrator often works closely with the attorney. Unlike other positions, the Personal Administrator is entitled to payment for his or her time.

Questions to consider

Is this person trustworthy, detail-oriented and able to handle paperwork?
Does this person have the time to take on the role?
Does this person live close to where the estate will be settled and, if not, will that slow the process or create complications?
Does this person have good financial sense? Can he or she work with professionals such as tax advisors and attorneys?

Trustee

What this person does

Takes charge of the assets placed in a trust

Questions to consider

Do I trust this person to make sound decisions about the money I am leaving to a minor or other party?
Does this person have compatible financial sense?
Will this person deal with my beneficiaries fairly and competently?
Does this person have values similar and consistent with mine?

Guardian of a minor

What this person does

Raises your children if they are still minors when you pass away
Carries out your decisions about where your children live, where they go to school and all other matters regarding everyday living

Questions to consider

If I were unable to raise my children, would I feel good about this person raising them in my place?
Does this person have the living environment I would want for my children?
Is this person willing and financially capable to raise my children?

Beneficiary

What this person does

Receives the benefits or assets you leave behind
Receives distribution of assets from the personal representative of the estate, as long as a beneficiary is an adult and there are no restrictions on the distribution
Receives distribution of assets from the trustee, if beneficiary is a minor or the distribution has restrictions

Questions to consider

Will this person use what I am leaving him or her in a way I feel good about?
Do I have any reservations about this person receiving my gift? If the person is underage, has/had a drug or alcohol problem or a history of bad spending, consider options such as different trusts or investments that would pay a smaller specific amount over time.

Important Additional Considerations

Here are additional considerations to ponder as you decide who to name for each role:

Consider each role separately and anticipate needing more than one person to fill each role. The qualities required to fill one role may not be the same qualities you need to fill another role.
Consider naming a backup for each role in case the primary person is unable or unwilling to serve.

While it is important to carefully consider who you want in each role, do not wait for a "perfect decision." You are nearly always better to name someone now, knowing you can change your mind later. In other words, do not let waiting for "the best there is" keep you from naming "the best you have got."

Once you have decided who will fill each role, be sure to talk to each person so everyone knows you have chosen them and what is expected of them.

Perhaps one of the biggest reasons you are working on an estate plan is to minimize the stress and possible family drama after you pass. While your actual plan will go a long way toward doing that, one way to be more successful is to talk about your plans with those who will play a part in them. Let them know exactly what their roles mean and what they will be expected to do.

Here is a conversation guide to help you think through what you want to say. Keep in mind that these are just examples and you should make this as personal as possible and include additional examples if necessary to make the role clear.

I have asked you to be my Healthcare Power of Attorney.

What this means is that you will be the person who will: Step in to make health care decisions for me if I cannot make such decisions for myself.

I would like you to do this because: I know you will carry out my wishes. You are logical in high-stress situations. You have experience making health care decisions.

Circumstances when you would be needed are: If I were unconscious or incompetent to make health care decisions, you would act on my behalf. Decisions could range from ongoing care or basic medical decisions to emergency decisions in a life or death situation.

Additional information you might need to know includes: Why I have made the health care decisions I have and where any supporting documents are located.

I have asked you to be my Durable Power of Attorney.

What this means is that you will be the person who will: Step in to make financial decisions for me if I cannot make them for myself.

I would like you to do this because: I trust you to manage my finances. I know you will be available and willing to devote the time it takes to make these decisions.

Circumstances when you would be needed are: If I were unconscious or incompetent to make financial decisions, you would act ethically and responsibly on my behalf. You might need to pay bills, make deposits to or withdrawals from my investments.

Additional information you might need to know includes: Why I have made the financial decisions I have and where any supporting documents are located.

I have asked you to be my Personal Representative (i.e., Executor)

What this means is that you will be the person who will: Work with my attorney and other financial advisors to settle my affairs after my death.

I would like you to do this because: I trust you and know that you are detail-oriented. You have experience working with professionals.

Circumstances when you would be needed are: Settling my affairs after I die. This can include filing taxes, paying bills and making sure all of my property goes where I have decided it should go.

Additional information you might need to know includes: The process I have created with my attorney and when you should contact the attorney. Optional: How and when people are receiving items.

I have ask you to be my Trustee.

What this is that you will be the person who will: Take charge of the assets place in my trust. I would like you to do this because: I believe we share similar values. Therefore, I trust you to make sound financial decisions and deal fairly with beneficiaries. I believe we share similar values.

Circumstances when you would be needed are: If I have a trust, you will manage those funds for the person who receives the funds.

Additional information you might need to know includes: The plans I have made and decisions I would want made in different situations.

I have asked you to be my children's Guardian.

What this means is that you will be the person who will: Raise my children who are younger than 18.

I would like you to do this because: My children know you and love you, and I trust you. If I cannot raise them, I feel good about you doing it in my place. I know we share the same beliefs and values.

Circumstances when you would be needed are: Raising my children, deciding where they go to school and all other matters regarding everyday living.

Additional information you might need to know includes: Details about how I want my children to be raised.

I have asked you to be my Beneficiary.

What this means is that you will be the person who will: Receive benefits or assets I am leaving behind.

I would like you to do this because: I know you value what I am giving you and will use what I leave you in a positive way.

IMPORTANT: Depending on your family situation, you may or may not want to notify people you will be naming beneficiaries.

You may want to ask your attorney for additional tips on telling family members about these roles, and if there are any general procedures the law office follows. People will want to know the specifics of who to contact and how to reach them, especially if they need help outside of normal business hours.

Anticipate that there will be questions. If you do not know the answer, write the question down and follow up with your attorney and then discuss again with the person you have named.

A standalone retirement trust, or SRT, is a special type of trust designed to be the beneficiary of your qualified retirement accounts like IRAs, 401(k)s, etc. During your lifetime, your ownership of and access to the accounts do not change. Upon your death, as long as you have properly named the SRT as the beneficiary on the appropriate beneficiary designation form, the trust will become the beneficiary. The trustee of the trust will then be in charge of withdrawing and managing the money received from the inherited retirement account according to the terms of the trust document.

In the United States, lawsuits are filed every few seconds, all year long, every year. We all have a bullseye on our back. Lawsuits commonly stem from car accidents, business failure, divorce, malpractice, tenants, slip-and-falls, bankruptcy, and the like. Without proper protection, inherited property and accounts can be seized for any number of reasons. Because retirement accounts are often one of the most valuable accounts that people own, ensuring that these special accounts are protected for your loved ones and beneficiaries is essential.

By all means, use your retirement funds as you think best. Even after you set up an SRT, you will have full control and the right to enjoy your retirement funds for years. The SRT is named as the beneficiary of your retirement account and will therefore receive funds only once you have died, leaving you free to spend the money as you see fit. If you are like most people, however, you will still have money in your retirement account when you die; that is when the SRT will protect your loved ones and their inheritance.

This is true and false. True that you are not required to name a beneficiary, but absolutely false that it is not a priority!

When you are asked to complete a beneficiary designation form, you need to fill it out as soon as possible. If you were to die without completing the beneficiary designation, the proceeds would either be distributed to your estate (requiring your loved ones to go through the costly, public, and time-consuming process known as probate) or directly to your closest living relative as determined by the terms of the life insurance policy. The specific rules of the life insurance policy determine which option would apply, but the ultimate outcome is the same: someone else would be choosing who gets the money, not you. You are given the opportunity through the use of a beneficiary designation form to determine who will receive the proceeds of your life insurance policy. Do not let someone take that choice from you.

Additionally, whoever is determined to be the rightful owner will receive a check for the full amount, unless the beneficiary is a minor, in which case the court will choose someone to hold on to the money for the minor until the minor reaches the age of majority (eighteen or twenty-one depending on your state). This leaves the money open to many vulnerabilities, like being spent on frivolous luxury items, taken in a divorce, or seized by creditors through a lawsuit or a bankruptcy.

There are several options when it comes to naming a primary beneficiary for your life insurance policy.

First, you could choose to name just one adult. At your death, after providing the insurance company with your death certificate and completing any required forms, your chosen beneficiary will receive a check for the life insurance policy’s death benefit.

Second, you could choose to name multiple adults as the primary beneficiary along with the percentage or share that you want each to receive (not to exceed 100 percent or the total value of the death benefit). For example, you could designate 50 percent to Jack Jones and 50 percent to Jill Jones.

Third, you could name the trust as the primary beneficiary. At your death, the trustee of the trust will receive the check from the life insurance policy and will then manage and distribute the money according to the instructions you have left in the trust agreement.

CAUTION: It is not wise to name a minor child as the beneficiary of a life insurance policy. Because a minor is not a legal adult, the child is not allowed to manage the money on their own behalf. In the event a sum of money would need to be paid to a minor, the court may have to appoint someone as a guardian or conservator to manage the money on behalf of the child until the child reaches the age of majority (eighteen or twenty-one years of age depending on your state.)