Schnauss Naugle LawSchnauss Naugle Law2024-02-02T02:33:20Zhttps://www.jaxlawteam.com/feed/atom/WordPress/wp-content/uploads/sites/1303272/2020/03/cropped-site-identity-32x32.jpgOn Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=493622024-01-31T02:34:17Z2024-02-02T02:33:20ZWhat living wills can do
During a crisis where you are unable to communicate, a living will makes clear your preferences for health care. Another name for this provision is an advanced directive.
Unfortunately, studies show that most Americans do not have a living will. The most likely to draft one is a college-educated or upper-income individual, but the percentage of those who do so still only reaches 59%.
The benefit of the document is it can prevent confusion and disputes among your family. It also makes it easier for medical professionals to respect your wishes. For example, you might not want resuscitation if you will have a poor quality of life or diminished cognitive capacity afterward. Likewise, you can clarify the kind of treatments you are willing to accept and those you patently refuse.
The purpose of a power of attorney
A power of attorney authorizes a responsible person to make decisions for you, particularly when you are unable to do so. The POA allows someone to manage your affairs in the meantime. Without a POA, your family may have to go through a challenging and costly legal process to appoint a guardian.
You can create multiple POAs to care for the various aspects of your life and set limits on its use. For instance, you could draft a medical POA for health care and a financial POA for your bills and payments. Also, you can specify that your agent has full authority to act on your behalf or restrict decisions to particular interests and timeframes.
You benefit by having both a living will and a power of attorney. Whether you face death or incapacitation, you can have increased confidence that responsible parties will act as you wish.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=493572023-12-07T21:25:05Z2023-12-07T21:25:05ZLimited power of attorney
A limited power of attorney provides specific authority for a defined period or purpose. For example, you can sign a limited power of attorney for a real estate transaction or to manage your affairs while on a health care retreat.
Durable power of attorney
A durable power of attorney remains effective in the event of incapacitation. It provides the authority for your chosen agent to make financial and medical decisions on your behalf. This allows them to pay your bills, manage your financial affairs and guide your health care to protect you and your assets.
Health care power of attorney
Also known as a medical power of attorney, the health care power of attorney designates someone to make health care decisions when you cannot communicate. This document communicates your medical preferences and a trusted individual acts in your best interest. It also shields your loved ones from the burdens of trying to make those decisions themselves.
Research shows that less than 36% of American adults have power of attorney authorizations in place for any unexpected events. The right powers of attorney are indispensable in your estate plan for protecting your wishes and your loved ones.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=493562023-10-06T16:35:04Z2023-10-06T16:35:04ZNew children
Life is a dynamic journey marked by significant milestones and transitions. The birth of children is an event that necessitates a revisitation of your will.
Families in America have an average of 1.94 minor children as of 2022. With every addition to the family unit, the distribution of assets may need adjustment to align with your evolving priorities.
Financial shifts
The financial landscape is often changing, and so is the value of your assets. Substantial changes in your financial portfolio, such as property acquisitions, business ventures or inheritance, may make you review your will. Ensuring that your beneficiaries are accurately designated with your current wishes becomes important.
Health decline
As people age, health decline may become more obvious. In such instances, updating your will to include provisions for potential incapacity is important. Clearly outlining your preferences regarding healthcare decisions and appointing trusted individuals to act on your behalf ensures that people honor your wishes even when you cannot express them.
Changes in laws
The legal landscape is dynamic, and changes in inheritance laws or tax regulations may impact your will. Regularly reviewing your will in light of legal changes safeguards it from potential pitfalls and ensures that your estate planning remains up-to-date.
Different family dynamics
Interpersonal relationships within families can evolve over time. Estrangements, reconciliations or the emergence of new familial bonds make you want to change your will.
Regular reviews of your will safeguard your peace of mind. By proactively addressing these considerations, you provide a lasting legacy for your children and other loved ones.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=493542023-08-10T20:52:50Z2023-08-10T20:52:25ZHow a trust works
Establishing a trust means you create a legal agreement with a trustee to manage assets on behalf of beneficiaries. A trust can pay out during your lifetime or after your death. You can place many kinds of assets in a trust. You may include cash, or property such as a vehicle, a piece of real estate and even digital media and accounts.
The reason a trust avoids probate is because it pays directly to an assigned beneficiary. There is no need for a probate judge to adjudicate the trust. Other assets such as life insurance policies and retirement accounts with direct payouts work the same way.
Other benefits of using a trust
A trust remains private since it does not go through probate and become part of the public record. You may spare your family problems that could result from having your inheritance be a public matter.
Also, you can structure a trust to reduce taxes on assets in the trust if you have a lot of wealth in your family. Additionally, creating an irrevocable trust may shield your assets from creditor claims if you become the target of litigation.
Trusts are accessible to people of different income levels. Even if your estate is fairly small, you might still help your family gain their inheritance through a trust.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=493462023-06-14T17:57:11Z2023-06-14T17:57:11ZThe purpose of a will
Typically, a will is a written document that outlines instructions regarding the distribution of assets after death. Your will can also designate guardians for your children if you are a parent. You can name various beneficiaries in your will and specify how you want to divide your property among them. Finally, you should name a personal representative to administer your estate after you pass.
Living wills and estate plans
A living will can express your wishes regarding medical care decisions when you cannot do so due to incapacity. If you become ill or injured and are unable to communicate or make choices, you living will can convey your overall values and desires regarding healthcare and end-of-life treatments.
It is important to distinguish between living wills, last wills and power of attorney documents, which can name one or more trusted people to act as your agents and make financial, legal and medical decisions on your behalf if you become incapacitated. By contrast, your living will details your intentions and expectations during similar circumstances. These documents, along with your last will and any trusts you create, can work together to make a comprehensive estate plan.
In estate planning, your will designates which beneficiaries can inherit your property after you pass away, and your living will outlines your wishes regarding treatment and medical care during periods of incapacity.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=491702023-04-07T20:48:09Z2023-04-07T20:48:09Zprobate process. Therefore, consider these strategies to reduce or prevent probate.
Share your property
One of the best ways to avoid probate is to list a secondary owner on your real estate, vehicles and financial assets. You need to add the rights of survivorship. In this case, the co-owner receives the property title automatically when you pass away. Although your property rights move to your surviving spouse, the co-owner will receive the title when your surviving spouse dies.
Create a revocable trust
Living trusts are separate entities where you can transfer your assets. You lose ownership, but you retain control of these assets when you transfer them into a trust. Then, when you die, your trustee automatically transfers these assets to your beneficiaries. You can update or revoke this trust at any time.
Give gifts
You can give $15,000 per individual and $30,000 per couple yearly. This is a great way to reduce your estate and the taxes your beneficiaries pay. However, real estate and financial assets may be worth more, so prepare your heirs for their tax responsibilities when you give large gifts.
Owning property in multiple states
It may surprise you that you can reduce probate requirements on your estate even if you own property in other states. Through gifting, proper titling of shared property and trust designations, your heirs automatically inherit this property without a probate requirement.
A proper estate plan can help your heirs avoid probate and help them create a future plan that protects their privacy and finances.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=491412023-02-03T19:13:52Z2023-02-03T19:13:52ZDeeds and estate planning
There are many steps you can take to facilitate the transfer of assets for your beneficiaries. Many people place their property in living trusts or use documentation that exempts their property from probate. Florida and several other states allow property owners to create enhanced life estate deeds. With an enhanced life estate deed, you can name an heir for a real estate property you own and retain control of the property during your lifetime.
Benefits of enhanced life estate deeds
When planning for your future, using an enhanced life estate deed has many advantages. Depending on your situation, this type of deed can help you become eligible for Medicaid and protect your home from creditors. Furthermore, an enhanced life estate deed can reduce taxation on your property by avoiding federal gift taxes. In addition, probate can be costly and time-consuming. You can save time and money for your beneficiaries and the personal representative you name to administer your estate. Finally, unlike a basic life estate deed, an enhanced deed gives you the ability to sell your property, profit from its use and alter the deed at any time.
Enhanced life estate deeds can enable you to minimize costs for your beneficiaries while maintaining control of your real estate property.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=490332022-12-14T19:47:57Z2022-12-14T19:47:57ZThe duties of an executor
The Florida State Bar discusses your right to reasonable compensation for your service as personal representative. First, you must understand your duties under this role.
The role of an executor takes a long time to carry out fully and properly. You not only need to give creditors notice about their ability to file claims against the state, but you are in charge of paying statutory amounts to the decedent's beneficiaries. In other words, it is your job to pass out the assets of the deceased person to the people mentioned in their will.
On top of that, you have to take reasonable steps and make efforts to close the estate, file taxes on the decedent's behalf, pay valid claims and find creditors. It is a time-consuming job.
Compensation for executorial duties
Sometimes, the owner of the estate plan will provide a separate will or contract and will outline the method and amount of compensation you will receive for your work in that. In other cases, a judge may be the one to determine this. In others still, you and those affected by your payment may work out an agreement together.
But in the end, you will get some form of compensation for the work and effort that you put into this job.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=490222022-11-27T01:11:37Z2022-12-01T01:10:19ZDeath does not necessarily end debt obligations
According to information from the Consumer Financial Protection Bureau, the deceased person's estate remains responsible for outstanding debt. If the deceased has no money left, the debt obligations generally end at this point, and the creditor will not receive any payment. In other words, state law will not compel, in most cases, a survivor to pay off another person's debts.
A few exceptions do exist, though. These include situations where joint account owners have a debt, and one of these owners remains alive. Loans that have a co-signer might also require the payment of the loan. Individuals uncertain about the status of a debt can contact the creditor for additional information.
Death and the responsibility of the personal representative
If money remains in the estate, the personal representative has a responsibility to pay off creditors from these assets. This could entail looking through the paperwork of the deceased and discovering what debts remain, and contacting the creditors.
Creditors typically must file a claim with the probate court within three months of hearing of the debtor's death. If the claim has validity, the personal representative should then pay the debt from estate funds. A solid estate plan allows for the orderly payment of outstanding debts upon death.]]>On Behalf of Schnauss Naugle Lawhttps://www.jaxlawteam.com/?p=490202022-11-25T17:42:51Z2022-11-25T17:42:51Zcomprehensive estate plan. These are the components you should consider.
Power of attorney
If you cannot make decisions for yourself, typically due to medical challenges, you need to name someone you trust to make your decisions. A durable power of attorney handles all your decisions, whereas a general or limited power of attorney handles limited or specified decisions and duties.
Last will and testament
Your last will and testament is the primary document used in the probate process. It discusses the distribution of your assets and guardianship of your minor children. If you have shared assets, their distribution occurs automatically.
Living will
Your living will identifies the healthcare you approve of, such as life support, in the event that you become terminally ill or severely incapacitated to the point where you cannot care for yourself.
Trusts
If you have significant assets, you may consider creating a revocable or irrevocable living trust. Trusts can reduce the tax burden on your heirs because you transfer your assets into their names before your death. It also reduces or eliminates the probate process. You will need to specify your beneficiaries and a trustee who handles the distribution and management of the trust.
You can do your best to ensure your wishes are upheld by regularly reviewing and updating your estate planning documents.]]>