You and your spouse have recently divorced, and the judge has signed the divorce decree. Now what? Although you may feel that you have spent enough time and money on lawyers, there is one last attorney you need to talk to: an estate planning attorney. If you and your former spouse created an estate plan or named each other as beneficiary on any of your accounts or property ( assets ) while you were married, your divorce decree or state law may automatically revoke parts of that plan—particularly provisions naming your former spouse for decision-making roles such as executor, trustee, and agent under powers of attorney. However, not all changes happen automatically, and your former spouse could still remain a beneficiary of your trust, a joint property owner, or a named beneficiary on your assets. Additionally, appointments involving your former spouse’s family members are usually not revoked by law and may still be in effect. That is why it is necessary for you to review your estate plan with an attorney to ensure that your hard-earned money and property is distributed in a way that aligns with your new goals and life circumstances. If you have not done any planning since your divorce, now is the perfect time to get your affairs in order. When you meet with the estate planning attorney, it is crucial that you bring all necessary documents, including a copy of your divorce decree. This document will help determine what obligations need to be included in your estate plan, what assets you now own, and how those assets are titled. What Is in a Divorce Decree? Support Obligations Your divorce decree may state that your spousal or child support obligations require you to purchase life insurance to address the possibility that you pass away before fulfilling the entire obligation. If you have a child support obligation, it may be wise to designate your living trust as the beneficiary of the life insurance policy, if the terms of the divorce decree so permit. This approach would allow distributions to the minor children to be made by a trustee instead of as a lump-sum payout to your former spouse, who may not use the funds as intended. Property Division The divorce decree will also contain a section on the division of your marital property. It is helpful to provide this information to the estate planning attorney to present an accurate picture of your current property and financial accounts. In addition to identifying the assets you now own, how you own them is incredibly important. Ownership of assets previously owned by you and your former spouse as joint tenants or tenants by the entirety may have changed to ownership as tenants in common under state law. This change is important to understand because, if you had passed away before your divorce, your now-former spouse would have automatically received your interest in the asset. However, if the ownership has changed to tenants in common, your interest will likely go to someone else when you pass away. If you do no planning, your interest in the asset will be transferred according to state law, which may not coincide with your wishes. It may go to your children, parents, or siblings, depending on who survives you. As part of your estate plan, you can choose who will receive your interest and how they will receive it. What Effect Does the Divorce Decree Have on an Existing Estate Plan? Last Will and Testament Depending on the state in which you live, divorce can have a varying impact on your will. In some states, divorce revokes all provisions in your will that benefit your former spouse. Some state laws also revoke your former spouse’s appointment as personal representative. If you die before executing a new will, the law determines who receives your probate assets (generally your children if you have any; otherwise, your closely related family members in a predetermined order of priority). Even if gifts to your former spouse are automatically revoked by law after the divorce, gifts to your former spouse’s relatives—such as in-laws or your stepchildren—are not necessarily revoked. That is why it is essential to promptly update your estate plan to reflect any changes you wish to make. Revocable Living Trust As with wills, laws regarding what happens to a provision in a revocable living trust vary by state. Some state laws revoke all provisions relating to the former spouse, while others leave the trust intact. Although there may be provisions in the divorce decree that revoke all or part of your trust, it is important to review the trust documents and make any desired changes to avoid confusion. Also, in most states, gifts to your former spouse’s family under the trust may not be revoked as a result of the divorce. Financial Power of Attorney In some states, filing for divorce revokes the former spouse’s appointment as agent (the person who would act on your behalf) under a financial power of attorney . In other states, however, a divorce does not revoke your spouse’s ability to act as your agent. In either case, if there are any outstanding powers of attorney on file with third parties (e.g., at your bank or with a financial advisor), inform them of your divorce and provide them with a revocation or an updated power of attorney so they know that your former spouse is no longer authorized to act on your behalf. Medical Power of Attorney As with other estate planning documents, state laws vary as to whether your former spouse will still be able to make medical decisions for you if you are unable to make or communicate them yourself. Some states revoke the designation of your former spouse as your agent for medical matters as a result of the divorce, while others do not. In either case, it is incredibly important to keep this document up to date and to provide the updated versions to the necessary healthcare professionals. Life Insurance Because a life insurance policy is a contract with a third party, a divorce may have no effect on the beneficiary designations. If you named your former spouse as a beneficiary of the policy prior to your divorce, most states will not automatically revoke that designation after a divorce. Even if the designation is revoked under state law, it is important that you change the beneficiary designation so the company is on notice of your wishes and to avoid any confusion. In some cases, although the former spouse is no longer entitled to the life insurance proceeds, if the insurance company is not informed of the divorce or given an updated beneficiary designation, the benefit will be paid out to the named beneficiary (former spouse), and it will be the rightful beneficiary’s responsibility to sue and collect the proceeds from the former spouse. No matter what the applicable state law says, it is important to review and update your beneficiary designations after a divorce to avoid unnecessary drama and confusion. Retirement Accounts For retirement accounts governed by the Employee Retirement Income Security Act of 1974 (ERISA), such as 401(k)s, beneficiary designations are not automatically revoked upon divorce. Even if state law would otherwise remove a former spouse, ERISA preempts state law. To ensure that your former spouse does not receive the benefits, you must affirmatively change the beneficiary designation unless your divorce decree requires you to keep them as the beneficiary. You Need an Estate Plan Now More Than Ever As a newly single person, you are now in full control of your money and property. If you do not have an estate plan in place, state law will determine what happens to your hard-earned money and property. If you already have estate planning documents in place, you need to review them now that your circumstances have changed. Even if gifts to your former spouse are revoked under state law, you need to ensure that the alternate plan built into your documents is still what you want. Call us today so we can schedule an appointment to protect your new future and those you love, and do not forget to bring the divorce decree.

Estate planning for couples in a second or subsequent marriage can be tricky, especially if their estates are disproportionate. One solution that allows the more affluent spouse to maintain control of their property and wealth and minimize potential estate taxes—while keeping their spouse happy—is the lifetime qualified terminable interest property (QTIP) trust. The Basics of Creating a Lifetime QTIP Trust In the estate planning world, a lifetime QTIP trust is a type of trust that allows a wealthier spouse to transfer an unrestricted amount of assets (money and property) into the trust for the benefit of their less wealthy spouse, free from estate and gift taxes. A common estate planning strategy for high-net-worth couples has been to use a QTIP trust, not while the couple is alive, but after the first spouse’s death under what is often referred to as an AB Trust structure. After the first spouse dies, the B Trust (bypass trust) is funded with an amount equal to the federal estate tax exemption (currently $13.99 million in 2025). The remaining assets are allocated to the A Trust (marital trust). The A Trust is often structured as a QTIP trust, which qualifies for the unlimited marital deduction, allowing assets to pass to the surviving spouse without triggering estate tax until their death. But what if instead of creating and funding a QTIP trust after death, the wealthy spouse creates and funds a lifetime QTIP trust for their spouse’s benefit with tax-free gifts while the wealthy spouse is alive? Assets transferred from the wealthy spouse into the lifetime QTIP trust are considered tax-free gifts under the unlimited marital deduction, which allows qualifying spouses to transfer an unlimited amount of assets to each other during life or at death without incurring federal gift or estate tax, as long as certain requirements are met. The lifetime QTIP trust must meet the following criteria to qualify for the unlimited marital deduction: The trust must be irrevocable. The beneficiary spouse must be a US citizen. The beneficiary spouse must be entitled to receive all net income from the trust at least annually during their lifetime. The beneficiary spouse must have the right to demand that any non-income-producing property be converted into income-producing property. Only the beneficiary spouse can benefit from the trust during their lifetime. No distributions to children or others are allowed before the beneficiary spouse’s death. The interest granted to the beneficiary spouse cannot be terminated or diverted to someone else during the beneficiary spouse’s lifetime. A federal gift tax return (Form 709) must be filed in a timely manner in the year of the gift to the trust. Planning with a Lifetime QTIP Trust Offers a Multitude of Benefits Outright gifts to your spouse during life or after death lead to total loss of control over those assets. If you and your spouse have children from prior marriages, the problem may be exacerbated by the difference in your wealth—while the wealthier spouse will be fine if the less wealthy spouse dies first, the opposite is not true. If you and your spouse are in this situation, a lifetime QTIP trust offers the following benefits: The wealthy spouse can create and fund a lifetime QTIP trust without using any gift tax exemption. The less wealthy spouse will receive all of the trust income during their lifetime and may be entitled to receive trust principal for limited purposes if the wealthier spouse desires. When the less wealthy spouse dies, the assets remaining in the trust will be included in their estate, using the less wealthy spouse’s otherwise unused federal estate tax exemption. If the less wealthy spouse dies first, the remaining trust property can continue in an asset-protected lifetime trust for the wealthy spouse’s benefit (subject to applicable state law) and, if structured properly, the remainder can be excluded from the wealthy spouse’s estate when they die. After the less wealthy spouse dies, the balance of the trust can be designed to pass to the wealthy spouse’s children and grandchildren or other beneficiaries chosen by the wealthy spouse. Do You and Your Spouse Need a Lifetime QTIP Trust? Like other types of estate planning tools and strategies, lifetime QTIP trusts are not one-size-fits-all. They must be tailored to each couple’s unique goals, family dynamics, and financial situation. Please call us if you think you and your spouse could benefit from a lifetime QTIP trust. We will help you determine what will work best for your family.

In many families, everyone gets along, happily gathering for the holidays, sharing laughs, telling stories, and enjoying each other’s company. Then, the matriarch or patriarch dies. Suddenly, years of pent-up resentment and hurt feelings surface, and the once-happy family is now embroiled in litigation over the head of the family’s money and property. Having an Estate Plan Is Crucial to Your Family’s Success When everyone is alive and happy, it is easy to think that nothing will break a family apart. Many people think that since everyone gets along, estate planning is unnecessary because everyone will look out for one another and do only what is fair. However, having a properly prepared estate plan is crucial. Failing to plan not only takes all the control out of your hands but can also leave hurt feelings and possible confusion over your true wishes. This confusion may force family members to pursue the only source available to resolve the misunderstanding: probate court. Not Just Any Estate Plan Will Do While a lack of planning can lead to disastrous consequences, poor planning can be just as harmful. Documents that are outdated, vague, or improperly prepared can lead family members to challenge them. Family members may have differing opinions about your intentions if your documents are unclear. This is especially unfortunate if you have a trust: one of the primary reasons to prepare a trust is to avoid court involvement. A trust contest, however, places your loved ones and the provisions in your trust under court scrutiny. You May Be Able to Use a No-Contest Clause If your documents are up-to-date and clearly state your intentions, but you worry that your decisions may displease your family, in some states you can include a no-contest clause that could help prevent or limit challenges to your will or trust. A no-contest clause is a provision that states that if a beneficiary contests your will or trust (whichever document contains the clause) and is unsuccessful, they will receive nothing. However, the effectiveness of no-contest clauses can vary by state, so if you think your family might contest your wishes, seeking an experienced estate planning attorney’s help is incredibly important. A common situation where contests can arise is when someone is left out of the will or trust. If you want to disinherit a family member intentionally, consider leaving them a nominal amount at your death and using a no-contest clause, as these clauses apply only to named beneficiaries. The beneficiary has something to lose if their contest is unsuccessful, so this may discourage them from contesting your wishes in the first place. However, as previously mentioned, you need to work with an experienced estate planning attorney to ensure that this strategy is best for you based on your state’s law and your family’s situation. You Can Protect an Inheritance with Proper Planning Alternatively, if you are concerned about a beneficiary receiving money outright because of creditor issues, spending habits, etc., you need not disinherit or leave them out of your estate plan. Leaving money to a family member does not have to be an all-or-nothing decision. By utilizing a discretionary trust, you can set aside money for the individual to be distributed by a trustee when and how the trustee deems appropriate. If you do not want to put such tight restrictions on a beneficiary’s inheritance but still want a level of protection, you can have a beneficiary’s inheritance held in a trust and distributed to them at specific ages or when they reach certain milestones. You do not have to leave your loved one an inheritance outright without any requirements or stipulations. A Proper Estate Plan Can Help Avoid Contests Having a well-drafted, up-to-date estate plan is crucial regardless of your family situation. Will or trust contests can be costly and quickly drain what you want to leave behind for your loved ones. We can assist you in creating an estate plan that will ensure that your wishes are carried out and that harmony can be maintained within your family after you are gone. Call us today to schedule an appointment.

Believe it or not, it is not easy to disinherit your spouse in the United States. In many states and the District of Columbia, you cannot intentionally disinherit your spouse unless your spouse agrees to receive nothing from your estate in a prenuptial, postnuptial, or other marital agreement. However, the same is not true for other family members. Generally, you can use your estate plan to disinherit your siblings, nieces and nephews, grandchildren, and sometimes even your children. Beware: Spousal Disinheritance Laws Vary Widely by State Unfortunately, no one set of rules governs what a surviving spouse is entitled to inherit. Instead, the laws governing spousal inheritance rights, such as elective share and community property laws, depend on the state where you live or own property, and they vary widely. Based on state laws, the surviving spouse’s right to inherit may be based on one or more of the following factors: how long the couple was married whether or not children were born of the marriage the value of what the deceased spouse solely owned whether the surviving spouse inherited anything from the deceased spouse outside of probate court (e.g., as a designated beneficiary or joint owner) the combined value of an augmented estate , which includes accounts and property that are subject to probate and accounts or property that were automatically transferred to a named beneficiary by operation of law (payable-on-death, transfer-on-death, or beneficiary designation form) In Florida, a surviving spouse may choose to take an elective share, which is 30 percent of the deceased spouse’s elective estate. The elective estate includes probate assets and certain nonprobate assets, such as payable-on-death and transfer-on-death accounts, joint accounts, revocable trust assets, the net cash surrender value of life insurance, annuities, and retirement accounts. The decedent’s debts reduce the elective estate. In addition, state laws vary widely regarding the time limit within which a surviving spouse can seek their inheritance rights, which can range from a few months to a few years. Disinherited Spouses Need to Act Quickly If your deceased spouse has attempted to disinherit you, seek legal advice as soon as possible before state law bars you from enforcing your rights. Only an experienced estate administration attorney can help you weigh all your options and protect your interests as a surviving spouse .

Creating an estate plan is a huge accomplishment. However, your work is not done when the documents have been signed. You must still ensure that the chosen strategy gives you peace of mind and protects the legacy you have worked so hard to build. An estate plan is not static; it is a living tool that should evolve with the changes in your life. Over time, your family circumstances, financial picture, and estate planning goals will likely shift. Whether through new births or children getting older; career or business developments; or changes to your investments, health, or where you live, countless factors can affect your evolving estate planning goals. External factors, such as new tax legislation or emerging financial instruments, could also throw your plan off track or open the door to new planning opportunities. You do not need to spend countless hours worrying about your estate plan. Just ask yourself these nine simple questions to stress test your plan and determine whether it is time for an update. 1. When did you last update your will or living trust? In most cases, reviewing an estate plan every three to five years is sufficient, but if a major life change happens sooner, it is a good idea to take another look immediately. The more time that has passed, the more likely there have also been changes in the law that could affect how your plan works. 2. Whom have you named as executor and trustee? Are the people you chose to wind down your affairs still the right fit? Sometimes people choose a loved one out of obligation, even if that person may not be the best at managing money or handling difficult situations. Ask yourself: Is the person I chose still willing and able to handle this responsibility? Am I confident that they understand my values and will act in a way that reflects my wishes? 3. Do you have adequate life insurance? Life insurance is an effective way to provide for yourself (depending on the type of policy) and your loved ones after your death. But instead of just purchasing any policy, it is important to ensure that you have the right kind of insurance (for example, term, whole, or universal) and the right amount of coverage for your needs. For each of your policies, regularly review and update your beneficiary designations. Each policy should name both a primary beneficiary who is first in line to receive the proceeds when you pass and a contingent (backup) beneficiary, in case the primary beneficiary cannot inherit the proceeds. If you have a trust-based estate plan, your attorney may have recommended naming your trust as a primary or contingent beneficiary. This strategy allows the proceeds to flow directly into your trust, which can be managed and distributed according to your wishes. Regularly reviewing your beneficiary designations ensures that your life insurance policies will pass smoothly and according to your wishes, protecting your loved ones from delays, confusion, or unintended outcomes. 4. Which of your accounts or pieces of real property are jointly owned with someone other than your spouse? Jointly owned property can sometimes cause unexpected tax issues. Look at your real property records and seek advice from a professional to ensure your accounts and property are titled in the most tax-efficient way while still carrying out your planning objectives. 5. How is your recordkeeping? Good recordkeeping will make your loved ones’ job much easier if they need to step in for you while you are alive but unable to manage your own health or finances, or when the time comes to wind down your affairs after your death. Do you have an up-to-date list of all your bank and investment accounts, employee benefits, retirement plans, online passwords, and key legal documents in one safe place? If not, now is a good time to create one. Having this information organized, accessible, and secure helps ensure that your loved ones can step in smoothly without unnecessary stress or delay. 6. Has your health or the health of a loved one changed? If you or someone close to you has been diagnosed with a serious illness, it is important to review your estate plan to ensure that it reflects your current circumstances. You may want to update your healthcare and financial powers of attorney to ensure that your decisions will be managed by someone you trust who understands your wishes. You may also consider revisiting your living will, trust provisions, or long-term care planning to ensure your plan provides the right protection and support for yourself and your family. 7. Have you experienced a major financial change? Your estate plan should always reflect your current financial picture. If you have received an inheritance, come into a large sum of money, sold or purchased significant assets, or made new investments, reviewing and updating your estate plan is important. Such changes can affect tax exposure, distribution goals, and even beneficiary designations. Keeping your plan aligned with your financial reality ensures that your wealth is protected and passes according to your intentions. 8. Do you have a plan for your digital life? In today’s world, so much of our personal and financial life exists online, yet many overlook these assets in their estate plans. Digital assets include cryptocurrency, online accounts, social media profiles, email, cloud storage, and even monetized platforms or websites. A thoughtful plan should identify these assets, authorize who can access them, and provide clear instructions on managing or transferring them. Without proper planning, valuable or sentimental digital property can be lost, locked, or mishandled. Including your digital life in your estate plan ensures that your online presence and assets are protected and passed on according to your wishes. 9. When did you last give your plan a thorough once-over? Even if nothing major has happened, we recommend having your plan reviewed by an experienced estate planning attorney every three to five years. This precaution can help you catch small issues before they become big problems. If any of these questions made you pause, it might be time to review your plan. We are here to help you get the peace of mind that comes from knowing that you and your loved ones are protected. Please call us to schedule an appointment to review your estate plan.

You have likely been preparing for weeks to get your new college student off to school. It is exhilarating, and your heart may be bursting at the seams. You are probably prouder than words can express but also afraid. How can you ensure your child is safe at their new home away from home? A new matching sheet set for their dorm room does not seem like enough, does it? So, what else can you do? While this is probably not on your to-do list, bringing your child to a local estate planning attorney can make all the difference. Although your child has graduated from high school and reached adulthood, they may still want you by their side if they get sick. However, medical care decisions are legally theirs alone after they turn 18. If they were to become unconscious after a serious accident, you could not authorize medical care or make decisions about a treatment plan without first going to court. The court process would delay your ability to advocate for your child, and your appointment as guardian would ultimately be up to the judge. We do not want to worry you unnecessarily, but the unfortunate reality is that a significant number of people between 18 and 25 years old wind up in hospitals every year, and their parents are often kept out of the loop when it comes to making critical decisions. Therefore, most experienced estate planning practitioners recommend that everyone over the age of 18 have a basic estate plan that includes a will , a financial power of attorney , and medical directives that allow someone they trust to act on their behalf if they are unable to advocate for themselves or make medical decisions. While it is important that your child have the proper tools to ensure that their wishes are known and that trusted people will act on their behalf, they can choose whomever they want to fill these roles. These important roles do not have to be given to you. Here are some things to take care of before you drop your child off at college: FERPA release. The Family Educational Rights and Privacy Act (FERPA) is designed to protect college students’ privacy, but it can leave parents locked out in an emergency. A properly worded release, signed by your child, allows school officials to talk with you and release your child’s records to you. HIPAA authorization. The Health Insurance Portability and Accountability Act (HIPAA) seeks to protect patients’ privacy. Consider having your child sign an authorization form just in case so that doctors can talk to you about your child’s condition, care, and treatment. Durable financial power of attorney. This legal document allows you to take care of your child’s checking or savings accounts, bills, and other finances if your child is unable to—whether due to illness or location (for example, if the school is on the other side of the country or abroad). Medical power of attorney. Like the financial power of attorney, this document allows you to handle medical decisions for your child if your child is unable to do so. Advance directive or living will. This tool allows your child to state their wishes regarding end-of-life care. Although we hope this tool is unnecessary, it provides the medical decision-maker with additional information to help them make the right decisions on your child’s behalf. Will. At first glance, this may seem a little silly for the average, often broke, college kid. However, most young adults do have property or accounts they may want to plan for if something were to happen to them. For example, according to Dashlane, a company that offers secure, online password managers and digital wallets, a typical email account is tied to 130 or more online accounts, each potentially with their own usernames and passwords. Does your child have thoughts about who should manage their social media and email accounts? Do they want someone to receive valuable gaming accounts? Or do they want all their apps and accounts closed at their passing? We have been helping families attain peace of mind for years. Contact us today to protect your new college student and your family.

You and your spouse live together, work together, and likely spend a great deal of your free time together. Having a successful marriage and business takes hard work and dedication, but it can also be among the most rewarding things in life. To help keep you on the right track, here are a few tips. Create separate budgets for your family and your business. Money can be a tense topic, even for the average married couple. With a family and a business to run, it is especially important for the two of you to sit down and agree on a budget for your family as well as a budget for your business. By having open and honest communications about your finances, both personally and professionally, you can stave off more heated conversations. Keep work at work. While your business is likely the main source of your family’s income—and often the main thing on your mind—it is important to create a boundary between your work lives and your home lives. If your business has a physical location outside your home, establish a rule that you and your spouse will discuss business only while you are at work. If you and your spouse are running a home-based business, you can establish “business hours,” and any time outside those hours is personal time when business will not be discussed. Whichever approach you use, it is important that you allocate enough time to accomplish your work. Have your own hobby. Because you probably spend so much time together, it is important for each of you to take time alone to do something that you enjoy. This can be as simple as carving out time to take a long relaxing bath or joining a local soccer team. Having your own hobby allows you to access another part of yourself and take a break from the usual routine. Studies have also shown that individuals who have hobbies they enjoy tend to have lower blood pressure, are less stressed, and are happier overall. Have your estate plan prepared or reviewed. Like any other couple, business-owning spouses need estate planning to protect each other and help ensure a financially secure and prosperous future for their loved ones. When a couple works together in a business, their financial picture and overall goals may be complicated and intertwined, making proper estate planning an even greater necessity. Below are some of the basic estate planning tools you need to protect yourself, your family, and your business. Revocable living trust. With a revocable living trust (often simply called a trust), your money, property, and even your interest in your business are owned by the trust rather than by you personally. While this may seem scary, it does not mean that you are giving up control. In creating the trust, you can name yourself as the trustee (the one in charge of managing the money and property, including your business interest, which is owned by the trust) and as the current beneficiary (the person who gets the enjoyment from the money, property, and business). The major benefit of having the trust own your money, property, and business is that, when you die, these assets pass to your designated beneficiaries without having to go through probate court proceedings. Also, if you are ever unable to manage your affairs while you are alive, the successor trustee you appoint can easily step in and take over management of the trust assets (including your business interest), thereby preventing unwanted disruption. Both of these advantages will save your family time and money and can keep your personal affairs private. In addition to avoiding probate, a trust allows you to provide some instruction for the future of your business. It can address questions regarding who will run the business if you are unable to continue or after your death, whether the next generation is ready to step up and lead, and whether you want to provide for a beneficiary not involved in the business. Financial power of attorney. By default, no one (not even your spouse) can make financial or legal decisions for you during your lifetime unless you legally select someone through the creation of a financial power of attorney. If you do not make this choice through proactive legal planning, the probate court will appoint someone for you, often through a very public and costly proceeding. Although your spouse may be the best person to make decisions about you and your business, they need the appropriate authority to do so. Executing a financial power of attorney can facilitate a smooth transition during a stressful and emotional time if, for some reason, you are unable to make decisions for yourself. This document is incredibly important if only one of you is the legal owner of the business, even if both of you consider yourselves partners. Although the other spouse may be intimately familiar with the operations, they cannot make any decisions that may be necessary to keep the business going without the proper authority. Medical power of attorney . As with financial matters, no one has the authority to make medical decisions for you during your lifetime unless you select them through proactive estate planning (via a medical power of attorney) or they are appointed by the court. If you are unable to communicate your wishes when an emergency arises, it is important that the person who will decide your course of treatment is someone you trust. If you leave the decision up to the court, there is always a chance that it will appoint a person you would not have chosen. Limited liability company or other business entity. Depending on how your business is currently structured, part of the planning process may include reviewing your business structure to ensure that it has been set up in a way that offers you the maximum asset protection, tax benefits, and ease in transitioning ownership to the next generation. One common way to achieve these benefits is by operating your business through a legally recognized business entity, such as a limited liability company (LLC) . As part of your estate plan, you may then choose to transfer ownership of the LLC to your living trust to help secure all of the advantages of a living trust outlined above. Having a successful marriage and business takes hard work. We can assist in ensuring that your family and business are protected if unforeseen circumstances befall your family. Call us today to schedule an appointment.

The Federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) was enacted to provide guidelines to the healthcare industry for protecting patient information and preserving privacy. This is usually a nonissue for minors because parents, as legal guardians, generally have access to their children’s medical information, make most of their medical decisions, and pay the expenses. However, once an individual turns 18, they are no longer a minor but a legal adult. Hospitals and doctors’ offices must safeguard the young adult’s information from everyone, including their parents or legal guardians, to comply with HIPAA law. While it makes sense that a legal adult would be in charge of their own medical information, this can pose some problems for young adults. Many 18-year-olds are still in high school, live at home, and have their expenses paid for by their parents. Although they are considered legal adults, their day-to-day lives look more like those of a child. Young adults should consider executing the required documentation to ensure their parents or other trusted individuals can access their medical records and discuss their medical care with their healthcare providers. This is accomplished through a HIPAA authorization form . With this form, the young adult can designate any individual(s) as an authorized recipient of their medical information. Executing this document can be incredibly helpful if there is a question about the young adult’s care, especially while the parent is paying the corresponding medical bill. It is important to note that although someone may be listed as an authorized recipient of the medical information, this form does not give the named individual the authority to make medical decisions on the young adult’s behalf. A properly executed HIPAA authorization form can also be beneficial if the young adult ends up in the hospital. Because hospitals do not want to be fined for violating HIPAA, most will err on the side of caution and refrain from disclosing any information to family members without properly executed documentation. Without access to their child’s medical information and the ability to talk with medical personnel, parents can feel out of the loop, and doctors may miss important family medical information. Because the young adult is now in charge of their information, they get to choose whom they name as an authorized recipient. While it may make sense for them to include their parents, the young adult is not required to name them. As a companion to the HIPAA authorization form, it is also important for the young adult to consider having a medical power of attorney prepared so that someone will have the authority to make medical decisions on the young adult’s behalf if they are unable to make their own medical decisions or communicate their medical wishes. Without this tool, the family may need to go to court to have someone appointed to make crucial medical decisions. The appointee will be based on the state’s law, not the young adult’s wishes. Depending on family dynamics, this court appointment could create conflict between family members. Also, this process takes time, costs money, and could potentially divulge the young adult’s medical information to anyone who is in the courtroom or wants to look up the court records. If you or someone you know has recently turned 18 or needs a HIPAA authorization form, please give us a call. We are here to protect you and your family through all the major milestones in life.

Congratulations! You are now legally an adult. Although you may not feel any different, from a legal standpoint, a great deal has changed. When you were a minor (under age 18), your parents were your legal guardians responsible for making all your decisions. Now that you are an adult, their legal authority over you is limited, if not completely nonexistent. While this newfound freedom may sound exciting, consider the following: Who can access your medical information? As a legal adult, you are protected by the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). This means that medical professionals can disclose your private medical information only to those individuals you have authorized. If you want your parents to continue having access to this information, you will need to prepare a HIPAA authorization form appointing your parents, or anyone else you designate, as an authorized recipient. Whom do you want to make your medical decisions? When you were a minor, your parents generally had the authority to make medical decisions on your behalf. Now that you are an adult, you must formally give them this authority if you want them to continue being able to make medical decisions for you. However, as an adult, you can provide authority for them to make medical decisions for you only if you are unable to communicate or make medical decisions for yourself. You do not have to give your parents this authority. If there is someone else whom you want to make these decisions when you cannot, you are free to name those people instead. You can give them this authority by preparing a medical power of attorney . Not only can you name someone to act on your behalf (an agent ), but you can also provide some general guidelines regarding your healthcare wishes. Who can handle your financial decisions? Now that you are an adult and your parents cannot take care of your legal or financial affairs, having a durable financial power of attorney in place may also be helpful. Until now, if you needed a parent to withdraw from a bank account or sign something on your behalf, there was no need for any additional steps because they were your legal guardian. However, to allow them to continue engaging in these same tasks, you must grant them the authority through a durable financial power of attorney. Just like with your medical decisions, you do not have to give your parents this authority. You are free to choose whomever you want. Who will wind up your affairs when you die? You just turned 18, not 98, but now is a good time to begin adopting some responsible habits and consider what will happen to your money and property when you pass away. You may think you have no assets, but you actually do. For example, in this digital age, each one of your social media accounts is considered an asset. What will happen to these accounts when you pass away? You likely also have tangible personal property (e.g., personal items, collectibles, jewelry), which might have more sentimental than financial value. A will or trust allows you to give what you have to whom you want in the manner you want, no matter the monetary value. Now that you are an adult, it is time to start thinking and planning for the future like one. The first step is to meet with an experienced estate planning attorney. We are here to help you navigate this next chapter in your life and ensure you are protected.