In estate planning, two standard legal documents frequently discussed are Wills and Trusts. Both serve as crucial tools for distributing assets and ensuring the well-being of your loved ones. However, they both have distinct characteristics and functions. Below, we will explore the key differences between Wills and Trusts and how they impact your family’s future.
Dealing with a loved one’s passing can be emotionally challenging, and legal matters, including the probate process, further complicate it. Probate is the legal process through which a deceased person’s assets are distributed, and their affairs are settled. Below is a comprehensive overview of probate, shedding light on its purpose, key steps involved, and what to expect.
Nursing homes are expensive and can often drain your retirement savings. However, this does not have to be the case. Protecting your assets with irrevocable Trusts can shield you and your family from the high costs of nursing home care.
Many people come to our office asking, Is my divorce uncontested? But what does that mean?
An uncontested divorce occurs when both parties agree on every aspect and are willing to enter into written agreements, stating this. The parties must agree on everything – from dividing assets and debts to regularly scheduled parenting time. This may include agreeing to who gets the children on Christmas Eve annually. And further agreeing to questions like: Are you splitting the day or switching up even and odd years? If both of you agree on most aspects, but there are certain things neither is willing to budge on – the divorce will not be uncontested.
Re Ella H., No. M2020-00639-COA-PT
On January 13, 2021, my clients received a moral and legal victory. When the Court of Appeals overturned the parental rights termination refusal at trial. Before this, a judge shockingly ruled in favor of an absentee father. Below is a narrative about my Terminating Parent’s Rights Case.
I took this case in July 2018, intending to terminate the biological father’s parental rights. I thought it was a solid case. The reason I believe this is the biological father had not established paternity and never paid more than token support for the child. Further, he had not contacted the mother to see the child since she was seventeen months old. When the case began, she was three years old.
You may avoid getting a Last Will & Testament because it means you have to consider what will happen upon you die. Having a Will is Worth it because, it lets you say what happens to your assets after your death. And it will help your family avoid dealing with a mess. Additionally, a Will allows you to name who will be in charge of administering your Estate upon your passing As well as pay your debts, collect assets owed to you, and distribute your property. If you do not have a Will, the Court will make the decision of who will administer your Estate and who receive your assets.
TennCare and Medicaid Annuties are treated in one of two ways: income or resource. In a previous blog post, RETIREMENT ACCOUNTS OF THE COMMUNITY SPOUSE, we explained how resources are either considered countable or exempt by TennCare/Medicaid. A TennCare/Medicaid applicant can transform an annuity or retirement account from a countable resource into an exempt one. However, the process to do this is both time and rule sensitive.
When a married couple considers paying for long-term care with TennCare/Medicaid, they are split into two categories: Institutionalized Spouse (IS) and Community Spouse (CS). It is essential to understand the differences between the two when Spousal Planning for TennCare/Medicaid. Specifically, the IS is applying for TennCare/Medicaid benefits while the CS is not. Under the same application, Medicaid always determines whether spousal resources are countable or exempt. As you would expect, countable resources can prevent eligibility, but exempt resources do not. Traditionally, retirement accounts, such as IRAs and 401Ks, for the IS are always countable resources for qualification purposes. On the flip side, the CS’s retirement accounts did not count if the CS was taking monthly payments equal to a required minimum distribution (RMD).
People often ask, “Do I need a Will?” If you do not have one, you will not be in control of what happens to your assets upon your passing, and you could leave your family in a challenging mess. Delaying these thoughts is human. You may feel uncomfortable about having a Will drafted because thinking about your death may feel scary. Also, you may feel overwhelmed about making so many decisions at once. And, as attorneys, we understand. This is why we are here to help make drafting a Will more manageable.
Having a Will drawn up allows you to control who will receive your assets upon your passing. If you do not have a Will when you die, the law will determine who receives your property. The Will also allows you to name who will be in charge of administering your Estate upon your passing. This will include paying your debts, collecting any assets owed to you, and distributing any of your property. If you do not have a Will, the Court will decide who will administer your Estate without your input. Also, in a Will, you can name who you want to be the Guardian of your minor children. And all of these are important things to have outlined.
If you are paying or receiving alimony after January 1, 2019, you may question, “Is my alimony tax deductible? The short answer is that you will no longer be allowed to claim the alimony as income. Or list the alimony as a deduction on your taxes. Before January 1, 2019, the spouse receiving alimony could list it as taxable income. And the spouse paying alimony could list it as a deduction, but this is no longer true. This applies to all alimony orders entered after January 1, 2019. This new change in the tax law will not apply to any Orders for alimony entered before January 1, 2019.