How can I find out who the Beneficiary is Under a Life Insurance Policy?

There are so many issues that come up during the estate administration of a person who has died.  Often family members want to determine the beneficiary under any life insurance policy.  Further, if there are children of a prior marriage this information may not be easily attainable. 

Life insurance policies do not go through the probate process.  The probate process does establish a public file that any one can view.  However, the insurance policy is a private contract between the insured and the insurance company.  There is no real audit trail or documentation regarding who may have received insuarnce proceeds.  Therefore, it is important to let family members know about your insurance policy or at least the person that you named as beneficiary.  You do not want to leave your family members in the dark if they need to know. 

Put your affairs in order today.  Contact us at www.ythlaw.com

Estate Planning Mistakes - Number Thirteen

Do not appoint the wrong Trustee. A Trustee is a person or institution that manages assets placed in a Trust for the benefit of named beneficiaries. Unlike an Executor whose role ends after probate has been finalized, the Trustee's role continues for the term of the Trust which could be for a period years or until the assets have all been expended.

In order to remove a Trustee, the Court must believe that removal would be in the best interest of the beneficiaries and would not be inconsistent with the material purpose of the trust. Further, a Trustee can be removed if a serious breach of trust has been committed by the Trustee; there has been a substantial change of circumstances; incompetence of the Trustee; and any other violation which can be presented and substantiated before the Court.

Contact us today!

Estate Planning Mistakes - Number Eight

How do you want the death taxes to be paid on your estate? If you are not clear in your Will, there could be unintended tax consequences.

For example, if your Will is silent on how death taxes are paid, your beneficiaries could have to sell assets to pay the taxes due at your death. If the Will provides that all death taxes are paid out of your estate, this could affect some heirs differently by reducing their inheritance.

Don't let estate planning mistakes leave your loved ones exposed. Contact us at

Estate Planning Mistakes - Number Three

Mistake number 3 is getting the names wrong in the Will. This is a mistake that can be avoided with careful and professional handling. You also review your Will. Even if you do not know the legal terms and conditions which must be in Will, you can address misspellings, wrong names and other name related errors.

I have seen Wills with names misspelled and sometime the wrong name. You do not want to use nicknames but your "legal" name and those of your beneficiaries should always appear in the Will. It is appropriate to have "also known as" provided in the document for additional clarification.

Don't let this mistake cause your heirs anguish. Review before you sign. Contact us at http://www.ythlaw.com/ for expert advice and guidance.

Incentive Trusts

Do you want to make sure your beneficiaries do not misuse their inheritance? Well, your trust could be drafted in such a way to provide incentives to direct your loved one on the right path. When things go as you direct, money is earned. When they fail to meet your expectations, the money is held until they do. This can be for anything that you feel is important.

We all may know situations where children have encountered problems including drug, alcohol or gambling addiction. How can that be handled when you are no longer available to help them? The Incentive Trust can be there for them to get the necessary help. It can also serve to teach children to be fiscally responsible. If they "earn" their own money, the trust could match their earnings. The options are as limitless as the situations that exist.

Leave your comments here or contact us at http://www.ythlaw.com/

Self-Discovery through Estate Planning

With each New Year, we open the door to new possibilities. Our dreams and hopes for the future are refreshed. I continue to advise everyone that the estate planning process requires that you assess your life now. At our firm, we work to help you identify your assets (traditional or nontraditional), determine your beneficiaries (family or otherwise), and control when and how your assets are distributed.

Estate planning provides you with a way of addressing your needs while you are living and developing a plan that expands beyond your lifetime. It challenges you to reflect on your life. You can engage the estate planning process as a process of self-discovery to help you understand the life that you are living. During this process, it may be the first time that you plant an idea of your purpose that can begin to germinate into your legacy. That is what is so exciting about estate planning. It is what you make it and we help make it a special and important journey for you and your family.

Leave your comments here or contact us at http://www.ythlaw.com/

Witnesses to a Will

A question was posed to me regarding Michael Jackson's will. Apparently the named executors signed as witnesses to Michael Jackson's will. The copy of the will that I was able to obtain had the witnesses name and address covered up so I was unable to confirm who signed. Let's assume that the executors did sign as witnesses. Is that permissible? If not, would that invalidate the will?

Under Pennsylvania law, any competent individual can be a witness; the interest of such a witness does not disqualify, but does AFFECT CREDIBILITY. For that reason, if an individual has a BENEFICIARY interest in the will, the general practice is not to allow such individual to sign as a witness. A BENEFICIAY is someone who will receive an advantage/benefit under the will. Receiving any of the assets is clearly as advantage. Serving as the Executor, is that an advantage? Even if it is, it would not invalidate the will, at least not in Pennsylvania. We will see, in time, what the California law provides.

In any event, having the executors sign as witnesses does raise a question regarding the credibility of the executors to affirm that the person signing was of sound mind and not acting under duress or undue influence. Will this become an issue? Will the executors be able to establish credibility? Thanks for raising the question and let watch how this might play out.

Your comments are welcomed and encourage. Contact us at www.ythlaw.com

Do I really need a Will?

Question:
Do I really need a Will? I own everything jointly with my husband. Why should I even have a Will?

Answer:
Everyone should have a Will. A Will allows you, rather than the State, to determine who gets your assets. The State’s plan may not be the best plan for you.

In your particular case, joint property does not go through probate. At your death, jointly held property belongs to the other joint owner, your husband. However, a Will addresses who would get the property in case both you and your husband die simultaneously, in an accident or common disaster. In such a case, you may need to name a guardian, if you have minor children or disabled children.

Also, a Will allows you, instead of the Court, to name an Executor to make sure estate administrative responsibilities are handled. This includes any inheritance tax form filing and last income tax form due.

Finally, even if you believe you hold everything jointly, there may be items overlooked including beneficiaries under an insurance policy or 401K. Is your Estate named? If so, who do you want to take under your Estate? If you die as a result of the negligence of another, the legal suit is considered to be an asset of the Estate. Once again, who would benefit from these assets, you can decide under your Will or the State can impose its Intestate Law, the law applicable for those who die without a Will.

Have your question answered by entering a comment or go to http://www.ythlaw.com/ and email us your questions.

How do I plan in uncertain times?

Question:
Can you effectively plan your estate in the midst of uncertainty with Federal Estate Tax law? I am aware that Congress is considering bills that would change the Federal Estate tax. How can you effectively plan your estate when the tax laws are constantly changing?

Answer:
Flexibility is the key when planning ones estate during change and uncertainty. We do not have a crystal ball to see the future. Therefore, we need the next best thing.In my opinion, that would be control over the timing of implementation of designated estate planning tools. For example, funding the Credit Shelter Trust (used to preserve the exclusion amount of the first spouse to die) may create a burden for the surviving spouse if the estate is not large enough to justify the use of the Credit Shelter Trust. However, if the instrument is not drafted to provide some flexibility then funding of the Credit Shelter Trust may be mandatory. An alternative would be the use of a Disclaimer Trust. When the first spouse dies, an assessment can be made at that time whether to disclaim all or part of the inheritance. Only that amount, if any, would be placed in the Disclaimer Trust. The terms of the trust would provide for the surviving spouse during their lifetime. Afterwards, the funds would be distributed to the children or the remainder beneficiaries.

Ask your question by commenting or submitting a question to http://www.ythlaw.com/

Probate - Who should serve as Executor?

Join me this evening for an Estate Planning presentation. See the information in the left column. Come and bring a friend. Learn more about probate and other matters.

There are many important decisions to make when you are doing your Will. One of those decisions is who will you name as your executor. When making the decision, trust is your number one consideration. After that, you can pretty much pick anyone you would like. It could be a family member, a friend, a professional advisor, a beneficiary under the will, your neighbor, in other words anybody that you trust. They do not need to have expertise in this area or live in your state. Yes, it could help if the person has some expertise in this area or live in your state or close to you. However, all of that is not necessary and you should be guided by the one you feel you trust to do what would be in your best interest. You can then share with them the duties of the executor as provided in the previous blog posting.

We can help you as your make important decisions regarding your estate. Contact our office for a free consultation or post a blog which we will answer for you.

Probate - Duties of Administrator/Executor

Many times the person appointed as an administrator or named as the executor under the will knows very little about the duties of that position. I advise my clients to tell the person they appoint as executor. It should not come as a surprise to anyone. I then let them know what that person's responsibilities would be so that such information can be shared with their executor.

The main duties of an administrator (one who is appointed during probate if there is no will) or executor (person named under the will) are to:
(a) ascertain the assets subject to probate (not all assets are subject to probate, such as assets owned jointly, assets in a trust, assets transfered by beneficiary designation;
(b) gather and provide an inventory of the assets;
(c) open up an estate account (checking account) to place assets and receive other assets due the estate, including interest, dividends, and other income;
(d) determine the beneficiaries - who is going to get what and how much under the Will (if there is no Will, the state’s "interstate succession laws" apply);
(e) determine or obtain appraisal of the estate’s assets;
(f) give legal notice to potential creditors (generally done via legal advertisement - determine state or local requirements for notifying creditors);
(g) investigate the validity of claims against the estate;
(h) pay funeral bills, outstanding debts, and valid claims;
(i) pay the expenses of administrating the estate;
(k) handle various paperwork, such as discontinuing utilities, memberships and charge cards, and notifying Social Security and others of the death;
(l) file and pay inheritance tax;
(m) distribute the remaining property in accordance with the instructions provided in the Will or under intestate law; and
(n) close probate.

In some states, you may be required to hire an attorney to handle probate. In other states, you proceed without counsel. Call our office if you have a probate issue and we can help you meet the requirements.

SIXTH of TEN Hot Estate Planning Topics

SIXTH, everyone wants to avoid probate. However, most people do not know what probate is. Though most people may not be directly involved in the probate process, many are still effected by probate. Probate means to prove the existence and contents of a will. A will is a public document that is filed when a person dies. It is not so much that you should try to avoid probate. It is more important that you understand the nature of your assets and how best to distribute it when you die. There are things that you can do to make the probate process go smoothly. First, be clear and concise in your will. Do not leave things to interpretation. Second, address potential conflicts among beneficiaries up front. If you wish to disinherit someone (other than your spouse) that is your right. State it and tell why, ie. I do not want them to receive any share of my estate. Third, inform the person you named as your Executor that you have named them and provide them with some written instructions to help settle your estate. Fourth, organize your affairs so it is clear what you do own. If you have been leery about the whole probate process, let us know why. We can help!!!