Did you know that according to research many people put off making an estate plan each year? What about you, do you have an estate plan? If you do not, you are not alone. 

There are multiple and varied reasons why people put off creating their Alabama estate plan. Some put it off because they think they do not have enough assets and others think they are too young to even consider it. There are people who do not want to think about dying and avoid creating an estate plan. People who are not married and have no immediate family, may not feel a need to create an estate plan at all. 

Do you currently have a trust or are you thinking about adding one to your estate plan?  Were you aware that some trusts do fail? To begin, a trust is a legal document that you can place your assets in to be managed by a selected trustee for the benefit of the trust’s beneficiaries. There are two essential components to a trust.  First, there is the trust itself, which is created through a legal document that identifies the purpose of the trust, the trustee of the trust and his or her powers, the beneficiaries of the trust, and the requirements for distributing the trust assets to the beneficiaries. The second component of the trust is the “corpus” of the trust, or, the sum of money, accounts or property placed into the trust.

With the arrival of the new year and as the month of January gets underway, did you know many people in Alabama are focusing on how they will reach the resolutions they set?  What resolutions did you set? Did you focus on work or health or family or all three?

Can you believe that in just a few short weeks, it will be 2022? The end of the year is quickly approaching. We realize that the pandemic continues to add a layer to everything but, for most of us, we are busy finalizing our end of the year plans, purchasing last minute holiday gifts, and making arrangements to spend time with family. As you reflect on your goals for the coming year, this is the perfect time to take stock of what has happened this year.  What went well? What could we improve on?

Estate planning is critical for anyone who wants to help ensure their wishes are respected in the event of temporary incapacitation or upon their death. Despite the important role estate planning plays in our lives, did you know less than 50% of Americans have an estate plan in place? This is a terrifying statistic when we know just how important making a plan is for your future, especially during the Covid-19 pandemic.

None of us know what tomorrow might bring and having an estate plan that you develop with your estate planning attorney can provide security. Do you already have a plan in place? Don’t forget you may need to update it. In fact, when you regularly update what you have put in place with your attorney you can help ensure that security will continue.

A prenuptial agreement is an agreement entered into between future spouses regarding ownership and distribution of their present and future assets. Have you thought of a prenuptial agreement as a plan for divorcing even before the marriage takes place? A prenuptial agreement, however, can be a very important legal tool for couples in certain situations, including in the context of estate planning.  

A prenuptial agreement does not just set forth how assets will be distributed upon divorce, it may also address the distribution of assets upon a spouse’s death.
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Does your out of state move involve a to-do list a mile long? It often does. If you are moving out of state, does your checklist include updating your estate plan? It should. Let us discuss the key reasons why you need to update your estate plan when you move to a new state.

Have you heard of the saying that the only thing certain in life is death and taxes? Did you know that not planning for death, or inheritance taxes, may leave your estate open to significant taxes, as high as forty percent of your estate? Let us review some estate planning tips to consider when you near the proposed tax limits.

Starting with a bit of good news, Alabama does not have an estate or death tax. This means that upon your passing, your estate will be subject to zero state estate tax.

There may be many frequently discussed components of estate plans, including the division of assets from your home, to your bank accounts, to family heirlooms and of course, for the parents of minor children, designation of a guardian and assets for the children. Have you considered, however, how your four-legged or other beloved pets will be provided for? Let us discuss three reasons to consider a pet trust in your estate plan.

1. A pet trust can help  prevent your pet from being placed in a shelter. Unfortunately, when the disposition of a pet is not provided for in the owner’s estate plan, the pet may end up in a shelter with an unknown future. By creating a pet trust, as the owner, you can provide that your pet’s care be entrusted to a friend or family member, who has agreed to become your pet’s new owner, or you can designate a caretaker to be overseen by the trustee of your estate.