Frequently Asked Questions

A: A guardianship is a legally recognized status that is typically used when an individual can no longer make sound or safe decisions regarding the care of his or her person or property, or has become exposed or susceptible to undue influence and fraud. A guardianship essentially involves removing an individual’s legal rights, so great care and attention is paid during the appointment process. To appoint a guardian, an individual must make an application to the court that provides a detailed and thorough explanation of the events or concerns necessitating the appointment of a guardian. Typically, most states require that the individual seeking the appointment of a guardian provide sufficient notice to all individuals affected by the proceeding, in addition to providing the individual in question with independent legal counsel. The law also usually requires a heightened standard of proof, clear and convincing evidence, of the individual’s lack of capacity and provides the individual in question with the right to a jury trial. After the court appoints a guardian, he or she will have many responsibilities when it comes to the individual’s care and well-being. The guardian will consent to and oversee any medical treatment that the individual receives in addition to determining the individual’s location of residence. The guardian can make end-of-life decisions on behalf of the individual and will have the authority to make financial decisions in addition to determining when it is appropriate to release the individual’s private information. Due to the broad scope of authority that a guardian receives, it is extremely important to take great care when pursuing the appointment of a guardian.

A: Absolutely. When leaving money to a charity, however, it is important to take into account certain taxes and exemptions that will be applied to your contribution. Leaving money to a charity in your will typically results in a charitable tax credit of up to 50 percent and may result in other exemptions from estate tax calculations. In most cases, leaving money to a charity will result in a reduction of the inheritance tax that must be paid during the administration of your estate. When identifying the charities to which you would like to donate, it is important to ensure that they do maintain a government-recognized charitable organization status. Individuals who leave large gifts to charities in their wills should be aware that a family member might contest the bequest. Some family members feel slighted when they realize that the family member bequeathed more to a charity than to him or her. The probate system allows a family member to file an objection to the executor’s administration of the decedent’s will. These objections can include an objection to the amount of money provided to a charity. A trustee can also be directed to contribute to a charity upon your passing. The trust documents can contain language that directs the trustee to provide a specific monetary amount or percentage of the value of the trust’s assets to a charity after your death or upon the dissolution of the trust. The specific charity or charities can also be identified.

A: A power of attorney is a document that grants a specified individual the right to act as the grantor’s attorney in fact or agent should the grantor become incapacitated. The laws governing the creation of powers of attorney and the scope of the designated individual’s authority vary from state to state. In most cases, however, the individual who creates the power of attorney, often called the principal, can dictate the scope of the individual’s authority. For example, the principal can designate one person to deal with one particular issue, which is called a specific power of attorney, or provide him or her with broad authority to handle any issues that arise should he or she become incapacitated. The latter version is called a general power of attorney. An attorney-in-fact is responsible for maintaining accurate and diligent records of all transactions and decisions that he or she makes on the principal’s behalf. Some of the types of decisions that an attorney in fact can make include gifts of money, financial decisions, and the recommendation of a guardian for the principal’s minor children or dependents. Many people use powers of attorney to make healthcare decisions for them in the event that they become incapacitated. A power of attorney can be given the authority to give, withhold, or cease all medical treatments, diagnostic procedures, or services. The document will usually include instructions from the principal regarding how far he or she wants his or her treating physicians to go before ceasing all life-saving measures. The principal can designate any adult as his or her attorney in fact, including an adult child or trusted friend.

A: Current federal laws require United States citizens and residents to pay three types of taxes on a transfer of property: estate tax, generation-skipping transfer tax, and gift tax. An estate tax, which is also referred to as an inheritance tax, constitutes a tax on your right to transfer property at the time of your death. The first step to calculating your estate tax is to determine your “gross estate.” This typically includes every asset and interest that a person owns or has an interest in at the time of his or her death. There are many other calculations and additions that are conducted when determining an individual’s gross estate. For example, the value of any property that the decedent had, at any time, transferred during the three years prior to his or her death is added to the decedent’s gross estate, even if he or she no longer owns the property at the time of death. After calculating the gross estate, federal law allows for certain deductions to be made on the “taxable estate.” These deductions include, but are not limited to, funeral expenses, claims against the estate, administration expenses, some contributions to charitable organizations, and certain bequests made to surviving spouses. Calculating the amount of inheritance tax owed also requires determining the tentative tax base that applies to the estate. The tentative tax base schedule changes each year. Check with the IRS’ website to determine which figure will apply to a particular estate. Currently, at least 15 states have an estate tax, and over five states have an inheritance tax. Some states, like Maryland and New Jersey, use both. Check with your state’s rules to see what tax obligations apply in your location. States such as Minnesota have a much smaller exemption on estates and thus impose taxes on smaller estates than the federal government. This smaller exemption can be awfully expensive to small estates.

A: There are some aspects of a probate proceeding that may prove unfruitful or inconvenient for a decedent and his or her heirs. First, the probate process can take over a year to complete. The more complex and intricate the decedent’s estate and will, the longer it will take to accomplish all of the procedures necessary to tie up loose ends. The longer a probate proceeding lasts, the more fees that are associated with it. In many cases, the executor will hire an attorney to help him or her navigate the probate process. Like regular civil court or criminal court, probate court has its own set of complicated rules and procedures. For some families, probate is filled with many disputes and disagreements regarding the disposition of the decedent’s assets. If a family member or other individual disagrees with how the executor is handling the will, for example, he or she can file a petition seeking court review of the executor’s actions. A trust is a written document that places your assets into a trust for your benefit during your lifetime and that provides for the transfer of those assets to a specified individual or individuals upon your death. In many cases, these individuals are referred to as secondary beneficiaries. Unlike with a will, legal title to the identified assets is placed in the trust. The beneficiary will appoint a third party to serve as the trustee of the estate. The trustee is responsible for managing the trust’s assets and seeing to any transfers that are necessary upon the beneficiary’s death or incapacitation. One of the most attractive benefits of a trust is that they do not require probate. There are many circumstances in which a will must be administered through the probate process, which can be costly, time-consuming, and extremely public in nature. As a result, the administration of a trust following a decedent’s death typically allows a faster distribution of the assets contained therein than the administration of a will. In many situations, the secondary beneficiaries become primary beneficiaries immediately upon the trust-founder’s passing. A trust can also provide a method for increasing your financial stability and providing a better outcome for the secondary beneficiaries. A trust’s assets can remain in investment accounts during the founding beneficiary’s lifetime, allowing them to increase in value. Additionally, a trust provides the founding beneficiary with significantly more privacy than a will. A trust can be designated as confidential and remain unavailable to prying eyes.

A: There are some aspects of a probate proceeding that may prove unfruitful or inconvenient for a decedent and his or her heirs. First, the probate process can take over a year to complete. The more complex and intricate the decedent’s estate and will, the longer it will take to accomplish all of the procedures necessary to tie up loose ends. The longer a probate proceeding lasts, the more fees that are associated with it. In many cases, the executor will hire an attorney to help him or her navigate the probate process. Like regular civil court or criminal court, probate court has its own set of complicated rules and procedures. For some families, probate is filled with many disputes and disagreements regarding the disposition of the decedent’s assets. If a family member or other individual disagrees with how the executor is handling the will, for example, he or she can file a petition seeking court review of the executor’s actions. Probate proceedings are public, and any documents filed that are associated with the probate of a will are available for public viewing. If your loved one has any personal or sensitive information available in his or her will, this information will therefore be available to the public. Since some wills contain incredibly detailed information about family history, or controversial information like the disinheritance of a relative, the public nature of a probate proceeding can create unwanted tension. Some ill-intentioned wrongdoers routinely peruse probate filings for the purpose of identifying potential robbery targets. Most decedents’ homes remain empty after they pass, leaving their valuables vulnerable.

A: A person who passes without a will is referred to as intestate. Each state has enacted a set of intestacy laws that make provisions for how a deceased individual’s assets should be distributed if they pass without a will. Since each state has the authority to create its own intestacy laws, the procedures that apply after an intestate individual passes vary greatly. In general, however, each state’s laws provide a list of the decedent’s next of kin in the order in which they will receive a portion of the decedent’s estate. For example, a state may specify that the decedent’s surviving spouse receives the decedent’s property, or that the decedent’s surviving spouse receives one-half of the estate and the decedent’s surviving children receive the other one-half of the estate in equal shares. These laws vary, particularly where the surviving children are from a previous marriage and unrelated to the surviving spouse. In the event the decedent is single and has no surviving children, the decedent’s parents typically are next in line to receive the decedent’s property. If the decedent has no surviving parents at the time of his or her death, the estate is divided among the decedent’s surviving siblings in equal shares. If an individual passes without surviving siblings, his or her estate is divided among his or her siblings’ decedents. It is important to look up the intestacy rules that apply in your state.