Small estate probate administration exists in some form in all states. This process allows estates below a specific value to be probated without all the requirements of formal, supervised probate. Even if your state does not require the estate administrator of a small estate to have a probate attorney, you’d be better off at least talking to one if you are named executor or administrator. Probate laws differ by state, and only a qualified probate attorney will know all the technical details that you’ll need to know to properly administer a small probate estate.

Qualification: Even before you begin the small estate probate process, you may have to talk to an attorney to make sure you qualify. Each state determines what kind of estate qualifies for simplified procedures, and each has its own different standards. For example, states typically set a dollar limit for small probate estates, but how they determine what qualifies as probate property differs.

Procedures: Small estate probate typically requires interested parties to file affidavits with the court. Anyone claiming property must file an affidavit that states what property he or she is entitled to take and do so within a specific time period. However, states may have different forms claimants have to file depending on whether the decedent died intestate or left behind a Will. They may also require the individual claimants to file their forms or have the estate administrator do it.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Whether your estate plan is simple or complex, it will likely impact a number of people upon your death. For this reason, many people question whether or not they should discuss the details of the plan with those who will be affected. There is no simple or universal answer to this question. Some people choose to share all the details, some share only important highlights, and yet others share nothing. How much you share may also depend, to a large extent, on the person with whom you are sharing.

• Spouse or Partner: You are not legally required to share anything about your estate plan with a spouse or partner, yet practical reasons often make it a good idea. Many couples own assets that are held jointly. In addition, if you have children in common then you likely share many of the same beneficiaries as well. For these reasons, it may be a good idea to consult each other before you create an estate plan.

• Trustee/Executor/Guardian: Positions such as executor, trustee, or guardian not only carry with them important duties and responsibilities, but are voluntary positions, meaning the appointee does not have to accept the position. As such, it is always a smart idea to discuss your intention to appoint the person in your estate plan before you actually do so in the event the person has any misgivings about the appointment.

• Beneficiaries: There is often no practical reason why you need to share details with beneficiaries. You may wish to do so simply so they will know what to expect, or you may prefer to keep the details to yourself to avoid any potential disharmony that could result if you share the details.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

If you have taken the time to consider both your retirement plan and your estate plan, then take the extra time to consider how one impacts the other and vice versa. Retirement planning and estate planning are closely related and should always be considered together, whether making initial plans or making changes to existing plans. Money and assets are the cornerstones of both a retirement plan and an estate plan. It should be no surprise then that the two go hand in hand.

When you make your initial retirement plan, you must consider what assets you plan to use for your retirement. At the same time, you will want to consider which assets you plan to leave to family members and loved ones and be sure not to include them in your retirement assets. For example, if you own a vacation home in the Caribbean, you will need to decide whether that is an asset that you plan to sell and use the proceeds during your golden years, or do you plan to pass that down to children or grandchildren? If you plan to pass it down, it need to be included as such in your estate plan.

What happens, however, if you originally planned to use the property as retirement income, but find that as you reach retirement age that you do not need the additional income? What happens if the reverse happens and you now find that you do need the home that you planned to leave to your children? A change in one plan warrants a change in the other.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Parents of young children typically have a substantial number of responsibilities and daily concerns.  Parents sometimes avoid thinking about what would happen if a tragedy were to strike, leaving their children without a parent.  Although unlikely, it is always possible that a tragedy could strike. By addressing the issue now, you can create an estate plan with your children in mind and put your own mind at ease.

One of the most important concerns parents of young children have is how to ensure that the person who will care for the child in the event of your death has immediate access to the funds necessary to do so. One option is to hold title to property jointly with another person. This works well if there is a spouse, partner or other adult you trust to share title to the property. Financial accounts can also typically be converted to “pay on death” accounts. A “pay on death” account, as the name implies, requires the bank, pension administrator or other financial institution to pay out the assets held in the account to a designee in the event of the death of the primary account holder. Both of these simple steps can provide for continuity in the care of your minor child in the event of your death.

In addition, although a Last Will and Testament should be prepared — specifically to nominate a guardian in the event one is needed — a trust should also be considered. A trust allows you to retain a large degree of control over how your money will be used to care for your child

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Americans love their pets. According the American Humane Society, over half of all American households own at least one pet, with many owning more than one. While pets have traditionally been the domain of young children, more and more older Americans are finding that the companionship of a pet can fill a void left by a deceased spouse or far away children and grandchildren. For pet owners in their golden years, concerns about what will happen to a beloved pet are valid concerns. Predeceasing your pet can leave your pet without someone to care for him or her. Luckily, there is a relatively easy solution — the creation of a pet trust.

There are a number of practical and financial reasons why a pet trust is often the best option for ensuring your pet is cared for after your death. By creating a trust, you have the option to appoint a trustee to oversee the administration of the trust. The trustee can be the same person who will actually care for your pet; however, if you have concerns about that person’s ability to handle finances, then appointing an attorney or other neutral third party can make good sense. In addition, a trust may have tax advantages that are not available if you simply gift or bequeath money in your will to someone in order to care for your pet. A trust also allows you to control the amount of money spent on your pet and how the money can be spent. Finally, trust assets typically grow over time, meaning you may be able to include a remainder beneficiary in the trust to receive any left over assets upon the death of your pet.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

In days gone by, a retirement plan was typically rather simple. For most people, their retirement plan simply relied on a pension plan or Social Security benefits to support them upon retirement.  That type of retirement plan had little effect on their estate plan. Today, however, retirement planning has become considerably more complex which in turn has often led to more complicated estate planning needs as well.

When a retirement plan consists solely of pension or Social Security income, as was the case 50 years ago, that income generally stops upon the death of the recipient.  Therefore, there is no need to address that income in an estate plan. Today, however, many retirement plans include more complicated components such as investment accounts, trusts and savings accounts. Because these aspects of a retirement plan include assets that do not terminate upon death, they must be accounted for in the estate plan.

Ideally, you will devise a retirement plan that provides sufficient resources and income to take care of you throughout your golden years, with assets left over upon your death. Those assets need to be transferred to your loved ones at that point. Absent a comprehensive estate plan, those assets may be inaccessible to your loved ones for months while a probate case is pending in court and may also incur significant estate taxes before they are finally transferred to your loved ones. By creating a comprehensive estate plan to go along with your retirement plan, you may be able to avoid probate altogether and limit the amount of estate taxes your estate incurs upon your death.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

When you open a bank account, investment account or retirement account, you typically open the account in your name without giving it another thought. The same is often true for securities registrations and vehicle registrations. In the event of your death, however, those accounts and registrations will become part of your estate and consequently be subject to the probate process. One way to avoid this is to convert those accounts to a “pay on death” account which can be accomplished quickly and easily.

In most states, your assets become part of your estate upon your death and must pass through the legal process known as probate before they can be transferred to your heirs or beneficiaries. The probate process can hold up assets or funds that are needed by your loved ones. To avoid this, change your accounts to “pay on death” accounts. As implied by the name, an account with a “pay on death” status requires the financial institution or agency to pay out or transfer the assets held in the account to the person designated by the primary account holder.

Converting an account to a “pay on death” account is generally easy to do. While state laws will differ somewhat, the process is similar in most cases. Contact the institution where the account is located or account administrator and request the forms necessary to convert the account. If your state allows vehicle registrations to be held as “pay on death”, then contact the bureau of motor vehicle for the forms. Once you have the required forms, designate a beneficiary and return them to the appropriate person or office.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Becoming a parent brings with it many changes. It seems as though one day the world centered around you and the next day you forget that you even exist. Everything you do from the day you find out you will be a parent forward is all about the child. Although most people don’t want to think about the need for estate planning when they find out they are going to be parents, it is never too early to make those plans.

Buying a bigger house, cutting back on spending and changing your social life are all things that come naturally when you find out that baby is on the way. Taking a long hard look at your current estate plan should come just as naturally given the serious nature of the subject. A child is completely dependent on its parents to provide financially. Of course, chances are that you will live to see your child grow up and give you grandchildren; however, in the event that a tragedy takes you away before that happens, you undoubtedly want to be secure that your child is financially taken care of in your absence.

As the parent of a minor child, estate planning typically involves executing a new Last Will and Testament. Along with including your child as a beneficiary under your will, you may also wish to nominate a guardian to care for your child in the event that you and the child’s other parent are no longer here.

Along with reviewing your will, many new parents also choose to incorporate a trust into their estate plan. A trust is an excellent estate planning tool for parents with young children as it allows you to retain control over the funds you leave for your child as well as potentially avoid probate and estate taxes.

Although each situation is unique, every new parent should at least review their current estate plan as soon as possible to determine if any changes need to be made or additional estate planning tools added to the current plan.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

For a married couple with assets that they wish to pass down to children upon death, an AB trust can be a critical component of estate planning. Many married couples make the mistake of simply deciding to leave all assets to the other spouse in the event one predeceases the other, with the understanding that the surviving spouse will then distribute the assets upon his or her death to the children. The problem with structuring your estate planning in this manner is that there can be considerable tax consequences for your children. An AB trust can help avoid those tax consequences.

Whenever you leave assets for someone upon your death, the Internal Revenue Service becomes involved. Taxes must be paid on your estate before any assets can be transferred to your beneficiaries in most cases. Although the estate tax rate changes frequently, estates are typically taxed at a very high rate. One exception to the general estate tax obligation is that you can leave an unlimited amount of assets to your spouse upon your death free of taxes. Another exception is the Lifetime Exemption. The Lifetime Exemption amount is also subject to change, but has been in the one million to five million dollar range for the past decade. The Lifetime Exemption allows you to transfer assets valued at up to the limit during your lifetime, or upon death, free of taxes. If, however, you leave all of your assets to your spouse when you die, you miss out on the opportunity to use your lifetime exemption.

An AB trust allows you to use both exceptions to your best advantage. Basically, an AB trust creates two separate trusts upon your death. One trust, the survivor’s trust, goes directly to your spouse while the other, the decedent’s trust, contains assets that are held for your children. Legally, your spouse does not own the assets held by the decedent’s trust when he or she dies, meaning the assets are not subject to the estate tax. Your spouse can then pass whatever assets remain of the survivor’s trust down as well and take advantage of his or her Lifetime Exemption amount to further reduce the estate taxes.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

A comprehensive estate plan often includes a number of legal and financial components. Life insurance is frequently one of the primary components of an estate plan. Life insurance comes in many forms and can accomplish a number of different goals, which makes a basic understanding of the fundamentals of life insurance important for anyone who is involved in estate planning.

A life insurance policy requires a policy holder, an insured, a beneficiary and an insurer. The policy holder may be, but is not required to be, the same person as the insured. For example, you may take out a life insurance policy on yourself, making you both the policy holder and the insured. You may also take out a life insurance policy on someone else, making you the policy holder but not the insured. There are rules regarding who may hold a policy on an insured. In most cases, you must have a close relationship to the insured that warrants the policy. A close family member or business partner are the most common situations where you might take out a policy on someone other than yourself. You must also designate at least one beneficiary who will receive the value of the policy upon the death of the insured.

Life insurance comes in two main classes — term and permanent. Term insurance, as the name implies, provides coverage for a fixed duration of time. Permanent life insurance guarantees a death benefit until the maturity of the contract, usually around age 95 to 100, at which time the policy will pay out if the insured is still alive. Term life insurance has no cash value, but the premiums are more affordable. Permanent life insurance does have a cash value, making it an investment as well as an estate planning tool.

Deciding how much life insurance to purchase involves the consideration of a number of factors. The value of any other estate assets plays a large role in determining how much life insurance needs to be purchased. One basic rule of thumb is that a wage earner should have at least enough life insurance to cover the years he or she plans to be employed, while a stay at home parent should have enough life insurance to cover the years that there will be dependents in the home.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.