What happens to my inheritance if my parents, grandparents, etc. die while I’m in bankruptcy?
Most discussions about estate planning involve probate avoidance. Most folks are familiar with the myth that “avoidance of probate” should be the number one estate planning goal. But is it so terrible that your assets have to go through probate? These are the reasons why the probate process may be helpful in some cases:
- Probate is often associated with taxes. However, for 2020, the estate and gift tax exemption is $11.58 million for an individual, or $23.16 million for a couple. This means that you can leave up to these amounts to your heirs and pay no federal or gift tax.
People are often confused about whether they need a will or a trust. The following list helps you to understand their differences, but you should consult an attorney to make sure that one of these devices is appropriate for your set of circumstances:
- A will covers any property that is in your name when you die. It cannot affect property held jointly or in a trust.
I’ve noticed a great deal of anxiety about people who have put off getting essential documents in place: Durable powers of attorney, medical surrogate, living wills, regular wills and trusts. This includes not only POAs and medical care decision making, but also planning ahead for advice to protect hard-earned assets and inheritances.
Most of our friends, colleagues and clients think of us as student loan and bankruptcy/debt relief attorneys. Ironically, we were in the process of opening a new practice area for Elder Care. Before this crisis, we’d hired a new elder care attorney with 27 years legal experience. Ha Dao just started with us on Monday. The timing of this is both good and bad. Bad in that I’m guessing our student loan work will significantly drop off unless people are now sitting around home growing more concerned about this debt and how to get rid of it. Good in that we now have the ability to do estate planning and elder care.
The first things we were going to do is get our website re-vamped to include tons of elder care resources, but now I’m thinking with this urgent need, to offer the following for our friends, colleagues and clients starting immediately: