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At Baskin, Jackson, Hansbarger & Duffett, we counsel clients on all of their estate planning concerns. Many people misunderstand what "estate planning" involves, believing that it is only needed by the very wealthy. While it can refer to sophisticated income and estate tax strategies for the affluent, estate planning is needed on some level by nearly everyone. There are potential problems in very common situations encountered by all individuals, regardless of their net worth. For example, in Virginia, if a minor inherits from a deceased relative or friend, the Court appoints someone to manage the assets until the beneficiary attains the age of eighteen. This "guardian of the property" must be bonded with approved surety, file annual accountings with the Commissioner of Accounts, and seek Court approval for expenditures of principal. This is a costly and time consuming arrangement which is easily avoided by appropriate provisions in a will creating a simple trust for the management of the assets. The trust could designate a relative or friend as Trustee, grant broad discretion for investment and distribution of assets, and waive surety or accountings. Instead of ending when the beneficiary is eighteen, perhaps the trust would continue until the beneficiary graduates from college or attains the age of twenty-five. As another example, everyone faces the possibility of incapacity because of accident, illness or advanced age. Absent some authority to manage the assets of the unexpectedly incompetent adult, the Court will appoint a conservator using the same procedures as for a minor, since both are "persons under a disability". With even rudimentary "estate planning", a power of attorney or revocable trust could have provided a means to handle financial matters during incapacity. Most people face similar, commonplace situations where some advance planning can avoid serious problems.
In short, "estate planning" covers many relevant topics for everyone including:
- providing for management of assets during incapacity
- specifying guardians of minor children
- asset protection from creditors
- managing assets for minors or those with a disability
- taking care of special family concerns
- planning to reduce, eliminate, or defer estate and income taxes
- preparation for retirement
- simplifying administration of the estate
Everyone's situation is unique. We help evaluate and counsel on everything from "simple" wills, powers of attorney, health care directives to more sophisticated estate planning techniques such as Family Limited Partnerships (FLP's), Qualified Personal Residence Trusts (QPRT's), Irrevocable Life Insurance Trusts (ILIT's), Charitable Remainder Unitrusts and Annuity Trusts (CRUT's and CRAT's), Qualified Domestic Trusts (QDOT's) and Qualified Terminable Interest Property trusts (QTIP's). For more information on estate planning with a focus on tax planning, please click here to get to our link on "Estate Planning".
In contrast to estate planning, estate administration involves settling a decedent's estate. Depending on the situation, this may involve various tasks including probating a will, qualifying as personal representative, paying debts, settling disputes, selling real or personal property, managing and liquidating decedent's business, making tax elections, filing federal and state income and estate tax returns, filing an inventory and annual accountings with the Court, and distributing assets to beneficiaries. In some estates the process may be relatively simple while in others it can be exceedingly complex. We can advise and assist the personal representative with whatever is required.
At Baskin, Jackson, Hansbarger & Duffett, we offer great flexibility in our services to personal representatives. While almost every estate requires some services of a lawyer, many of the tasks that will be required can be performed by a layperson, with some guidance from the lawyer. Many of our clients prefer to do as much of the work themselves as they can do competently, and we encourage this. Obviously, this will help keep legal fees paid by the estate to a minimum.
Other clients, for a variety of reasons, prefer greater assistance from counsel. In such instances, we can provide whatever help is reasonably needed. We have extensive experience in the administration of estates for all counties in Northern Virginia.
For more detailed information, please click here to get to our link on "Probate Procedures".
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