Estate Planning Strategies to Protect You and Your Family

Background

Divorce is one of the most stressful events in life. Pre-planning for divorce is difficult because it may suggest a lack of commitment to the marriage. Nevertheless, it is possible to remove some of the hardship from divorce by preparing how to divide property if it happens. 

Solutions

These solutions to prepare for divorce can be included with any Core Estate Plan:

• Separate ownership of non-marital assets
• Separate trusts for each spouse
• Domestic Asset Protection Trust
• Marital agreement (to divide property upon divorce)

Overview of Core 

Estate Plans >>>

Background

Liability from judgment creditors can arise during your lifetime or post-death. Solutions to manage such liability can be dramatically different depending on the creditor, amount, and source of debt.  

Solutions

These solutions can be added to any Core Estate Plan:

• Trusts for beneficiaries to protect their inheritance
• Domestic Asset Protection Trust to protect assets from creditors
• Irrevocable trusts between married spouses to protect assets from creditors of both spouses
• Shifting assets between married spouses based on liability risk

Overview of Core

Estate Plans >>>

Background

Long term care expenses can be devastating for many families. Reducing these expenses is a priority for anyone without sufficient personal savings or long term care insurance to pay for their own care. Estate planning can provide some relief. 

Solutions

Anyone without sufficient funds to pay for nursing home care may turn to Medicaid for help. Medicaid is a needs-based program, so a clear understanding of eligibility rules is very important. We can help you accelerate eligibility for Medicaid and ensure that the State does not recover your cost of care from your estate. Medicaid planning can be added to any Core Estate Plan. 

Overview of Core

Estate Plans >>>

Background

Business succession planning involves transferring ownership of a business upon the occurrence of certain "triggering" events, including the death of an owner. Without a succession plan, the value and income of a business may be substantially impacted while ownership and estate matters are sorted out. 

Solutions for Sole Owners

For businesses owned by one person, succession planning is included with any Core Estate Plan.  

Overview of Core

Estate Plans >>>

Solutions for Multiple Owners

For businesses with multiple owners, an agreement is necessary to prescribe the terms and conditions under which a business interest will be transferred.

Business Succession

Planning >>>

Background

Some people want to provide financial support for beneficiaries who may be inclined to waste the money that is given to them. There are many reasons a beneficiary may waste an inheritance:

• Reckless spending habits
• Poor financial management
• Substance abuse
• Gambling addiction
• Unstable relationships or divorce
• Unstable employment history
• Lawsuits

Solutions

We can help you to place restrictions on a beneficiary's inheritance for their own protection. Any of our Core Estate Plans can be customized for this purpose. 

Overview of Core

Estate Plans >>>

Background

The risks associated with failing to plan for post-death family support cannot be overstated. Without an estate plan, your property may not be distributed and managed for the benefit of your family in the manner that you intend. This risk is especially acute for minor children. 

Solutions

All of our Core Estate Plans can be customized to prepare for post-death family support. We have multiple options to protect minor children. 

Overview of Core

Estate Plans >>>

Backgorund

Many people are in commited relationships without being married. Michigan does not recognize "common law" marriages no matter how long a couple may have been together. Since domestic partners are not legally related, they do not have statutory rights to inherit property from each other or to make decisions for the benefit of their partner. 

For these reasons, estate planning is imperative for domestic partners. They can easily direct how their property will be distributed upon death, and appoint each other to make important financial and medical decisions. The need for planning is even greater if the partners have children from their current or prior relationship.

Solutions

All of our Core Estate Plans are appropriate to reduce the risks associated with a domestic partnership.

Overview of Core

Estate Plans >>>

Background

Second marriages are fraught with financial conflicts between the married couple and their family members from prior relationships. Children often suspect that a stepparent is scheming to take money from their natural parent. Unfortunately, these suspicions are sometimes well-founded. Without proper planning, children of either spouse may be unintentionally disinherited upon the death of their natural parent.

Solutions

There are numerous strategies to protect blended families. We are working to provide more information about this important topic. Check back soon. 

(Estate Planning for Blended

Families is Under Construction >>>)

Background

Government benefits received by a disabled person may be reduced or eliminated upon receipt of an inheritance. Estate planning can preserve both the government benefits and the inheritance for a beneficiary. 

Solutions

A "Special Needs Trust" can be used to preserve government benefits for a disabled beneficiary. Follow the link below for more information. 

Estate Planning for

Disabled Persons >>>

Background

Assets are more likely to be lost from an estate without proper planning. There are a number of reasons that an estate may be dissipated before it is distributed to beneficiaries:

• Excess administrative costs
• Probate proceedings
• Conservatorship or guardianship proceedings for minor children
• Malfeasance by a fiduciary
• Delayed distribution of assets
• Disputes by beneficiaries
• Distributions to unintended beneficiaries

Solutions

All of the foregoing risks can be substantially reduced with proper estate planning. Any of our Core Estate Plans is suitable for this purpose. 

Overview of Core

Estate Plans >>>

Background

Protection from estate tax is only relevant for large estates (more than $13 million for a single person or $26 million for a married couple). For persons with large estates, there are numerous methods to reduce estate taxes.

Solutions

Strategies to reduce estate tax are broadly categorized as follows:

• Reduce the value of the estate
• Prevent the estate from growing
• Maximize the use of federal estate tax exemptions
• Prepare to pay the tax

There are many solutions within each of these categories. Let us know if you would like to discuss estate tax planning.