Credit Card Debt and Inheritance in Mississippi

By Ronald Morton | Leave a Comment

When it comes to estate planning, many people are confused about what happens to their credit card debt when they die.  Clients tell their Mississippi estate planning lawyers that they thought the debt would be forgiven, for example.  Unfortunately, this isn’t the case, so it’s a good idea to understand what will happen to your estate and the assets you plan to leave to your loved ones.

First of all, your estate will be expected to pay off credit card debt when you die.  In fact, whatever you leave behind will first be used to pay for any outstanding debt.  Creditors of all kinds will have first crack at what you (or your heirs) will have.  Contacting the creditors and getting these debts paid off is one of the most important jobs of the executor of your estate.

However, credit cards aren’t necessarily the first thing that will be paid off, but they are definitely on the list.  If your estate doesn’t have the necessary assets to pay, then other courses of action may be available to those trying to collect on the debt.  If there is another name on the account, for example, they can go after that person for an outstanding balance.

This is important to note if you’ve put your adult child on any of your accounts.  Doing so is a fairly common practice, as it can make it easier for the adult child if they are helping by picking up groceries, paying bills, etc.  By having them on your accounts, they can simply use their own cards for your purchases.

Unfortunately, if and when you pass away, they could become responsible for the entire balance on any of those accounts.  Having them on bank accounts could even have tax implications.  It is really a good idea to work with a Mississippi estate attorney in order to determine what the state and federal laws are as they apply to your situation.  One possibility is to have the adult child or other caregiver listed on the account as an “authorized user.”

Just what funds are used to pay off outstanding credit card debt after death can vary.  In most cases, for example, retirement accounts such as IRA and 401(k) plans with a specific beneficiary are not considered part of the estate.  Those funds pass directly to the named party and do not go through probate and are not available to pay creditors.  This may also be the case with life insurance policies.  Things can get a bit more complicated when talking about real estate or jointly held assets, however.  For example, can one spouse be forced to sell a home that has been inherited by a partner who had a large credit card debt in his or her name?

Laws regarding this and similar issues vary from state to state, which means that your best bet is to work with a Mississippi estate planning lawyer to determine what our laws mean for you and your estate.

Clinton Newlywed Planning for a Better Financial Future – A Few Simple Things to Do

By Ronald Morton | Leave a Comment

Entering the newlywed planning stage here in Clinton is incredibly exciting.  Sure, there are dresses and tuxedos, cakes and wedding registries, but more importantly, you are starting your life with someone else.  And you want that life to be as comfortable and “successful” as possible.  That’s why finances should play a part in your newlywed planning.

When many of us get married, we’re young and we haven’t always made the best financial choices.  We may be entering the relationship with debt and a less-than-desirable credit score.  There are a few things that can add up, and if you can take care of them during the newlywed planning stage, you will be able to reduce later stress in the marriage and put it on a good trajectory for financial security.

Take Care of Little Fines

Little fines that you might have incurred may not seem like a big deal, but they can turn into serious problems pretty quickly.  Things like library fines and parking tickets may be quite small to begin with, but if they get turned over to collections (which is happening more and more frequently), then they can suddenly become a much bigger issue.  Not only does the amount of money you owe grow considerably, but just having them go to collections can impact your credit rating by a huge amount.  Remember, your credit rating will soon be linked to your spouse, too, so protecting it now puts you both in a better position later.

Review Your Credit Reports

Speaking of credit scores, you and your future spouse should both take a look at your credit reports (ideally you should look at them together) to figure out where you are financially.  At some point, you will likely want to buy a home or vehicle or even start a business, and now is the time to identify any problems in your credit history and start fixing them.  If you’re not aware of the problem, it will be a lot harder to do what you need to in order to fix it.

Pay Down Credit Cards

Making minimum payments on your credit cards may seem like a good idea, especially when newlywed planning includes so many additional expenses, but now is actually a great time to start paying down balances.  If you’re paying only the minimum, it’s likely that it will take more than a decade to pay off the balance, and that’s if you’re not charging anything new.  By paying extra toward the bill each month, you are reducing the amount of debt that will be in the marriage, not to mention that you will also save you and your spouse thousands of dollars in interest over the next several years.

See A Hinds County Prenuptial Attorney

While having a Hinds County attorney in the mix may not be the most romantic part of the newlywed planning experience, it can actually save your marriage later on.  This person can help direct you when it comes to financial matters and may even recommend considering a prenuptial agreement.  These documents are not just for the rich and famous.  Instead, they can even help average people to set out a clear plan for dealing with finances during the marriage, so that money doesn’t become an issue that breaks the couple apart later.

Awkward Moment! Facing Uncomfortable Issues With Your Trust and Estates Lawyer in Jackson, MS

By Ronald Morton | Leave a Comment

Any trust and estates lawyer in Jackson, MS can tell you that they have to ask their clients a lot of very uncomfortable questions.  Who really wants to think about their own mortality and contemplate what life will be like for their families after their own death or if they were to be incapacitated?  But, by facing these thoughts and questions, you are actually able to have a greater say in what will happen than you would by avoiding the topic altogether.

So, what kinds of issues need to be addressed with your trust and estates lawyer?  Whether you live in Jackson or New York City, there are some basic questions that absolutely must be answered.

You and Your Spouse

One of the most difficult issues to contemplate is what should happen if you and your spouse were both killed together.  While the chance of passing away at the same time is relatively low, it happens.  Laws are typically set up so that one spouse’s estate passes to the surviving spouse, but when both are gone at the same time, things get a little more complicated.

For example, those with minor children need to put serious thought into who will become their children’s guardian.  If you don’t make these decisions in advance, the courts will make them for you; and their choices may not reflect your own.  It’s not uncommon for grandparents to receive custody of the children in these cases if they are still living, but that still leaves open the question of which spouse’s parents would be chosen.  If you have a preference (or want someone else chosen), then you need a trust and estates lawyer in Hinds County to help you make those wishes legally binding.

Children are not the only concern, of course.  Should you and your spouse be killed or incapacitated, who will take care of your finances, inherit your home, or even take care of your pets?  These are all issues which need to be considered in advance.

You and Someone Else

Your estate planning lawyer in Jackson, MS isn’t just being nosey if he or she asks if there is someone in your life besides your spouse who may have a claim to your property.  This definitely falls into the category of “uncomfortable questions,” but if you had a relationship with someone other than your spouse, he or she may come forward after your death with the expectation of receiving an inheritance.

This can also be the case with family members who are estranged.  If you have a child you are no longer in contact with, he or she may still have a claim to your property.  Long-lost siblings or parents to whom you are no longer speaking can also still have a claim.  By setting out your plan with a trust and estates lawyer in Hinds County, you can help to ensure that only those you want to inherit will do so.

As a final note in this area of “uncomfortable topics,” if you and a spouse, previous spouse, or other person have chosen to store genetic material such as eggs, sperm, or embryos, you need to have plans for what is to become of this material.  Not only do you need to consider the material itself, but you also need to consider who might end up with children that have been conceived after you die.

Each of these issues is complicated in and of itself, but in order to come up with a workable estate plan, they must all be considered.  If your trust and estates lawyer in Jackson doesn’t bring up some of these questions but they apply to you, it is in your best interest to bring it up now to avoid problems with your estate later.

Jackson Probate 101: The Basics

By Ronald Morton | Leave a Comment

Probate is a process that can differ from state to state.  This means that the laws which apply here in Mississippi might not be the same as other places.  With such variance in what applies, it’s just good sense to work with an estate planning attorney in Jackson Mississippi who will be up-to-date on all of the most recent information.  That said, there are some probate basics that everyone should understand.

The Will

Probate in Jackson is a court process to legally administer and close out an estate.  Unless you have specific trusts in place, your estate will likely go through this process, even if you have a will.  This is surprising news to some folks who thought that having a will would take care of everything and avoid the probate process in Mississippi.  Really, though, probate is used to ensure that the will is valid, as well as to distribute your assets according to the will.

Debts

If you have outstanding debts, the probate process is also a time for them to be paid.  The court will take a look at your assets and debts and determine how those debts are to be paid.  These debts are typically paid before your heirs receive their share of what is left.  In some cases, a Hinds County probate attorney can help you to reduce the number of assets that are vulnerable to being used for this purpose through the use of trusts.

Executor of the Estate

The person named as the executor (which may also be chosen by the courts, especially if you don’t have a will) is charged with gathering together all of your information to present during probate in Hinds County.  This means that all of your accounts, assets, and debts need to be listed and submitted to the court in a timely manner.  The executor will also be responsible for overseeing the distribution of your estate and for making sure that the court’s decisions are carried out.

Probate Lawyer

Probate lawyers in Clinton take on a number of roles in the process, one of which is acting as the executor of the will.  Some families prefer to have a professional take on these responsibilities, although there is a cost for the service.  Even if there is an executor, however, hiring a probate lawyer in Clinton is a good idea, as he or she will be familiar with the process and can therefore save the heirs considerable time, frustration, and money for the estate.

The Process

Again, the probate process can vary, but in Hinds County it will generally include the following:

  • Papers will be filed by the executor or lawyer to start probate
  • The will (if there is one) is presented along with a list of assets and debts
  • Notification of the death is made to relatives and creditors
  • The executor manages the assets for the estate for the duration of the probate process

Speak to a Hinds County Probate Attorney

If you are facing the probate process after the loss of a loved one, we encourage you to contact our Jackson probate attorneys to begin the process of closing out his or her estate.  Through compassionate guidance and hands-on legal help, we will ensure that your loved one’s affairs are properly taken care of so you can focus on your family and the healing process.  To schedule a complimentary consultation, simply call our Jackson probate attorneys at (601) 925-9797.

Clinton Lawyer Explains How To Tackle Estate Planning When You Live in Two States

By Ronald Morton | Leave a Comment

Being able to split your time between two or more places you love is a much-desired retirement dream for many people.  A great example are those folks referred to as “snowbirds” who live farther north in the US during the summer and then head back to the warmer southern states for the winter.  That allows folks to enjoy our gorgeous Mississippi spring and fall, and relatively mild winter, while escaping our punishing summer humidity.

Many people living this lifestyle completely overlook the fact that it can have a major impact on what happens to their assets when they die.  If you were to pass away in Mississippi, the laws governing your estate may be totally different than those in New York, Vermont, or whatever cooler state you’ve chosen for the hot season.

Some Laws Differ from State to State

Basically, you need to make a decision about which state is your true legal residence.  This may be affected by the amount of time you spend in each or some other factor.  If you’re in a situation where you truly can choose, then you really want to work with a Hinds County estate planning lawyer to figure out which state’s laws are going to be the most advantageous to you and your estate.  There are all kinds of factors which can influence this decision, such as the property laws of each, your marital status, and even tax rates.  For example, Florida has been known for not having estate taxes at all.  This is great, but it does have other taxes that could come into play.

When you pass away, your estate can end up going through probate in both states.  This can be time consuming and expensive, and you may be able to avoid it by working with a Hinds County lawyer to set up some trusts and other protections.  There are some documents, however, that you might want to consider creating in both states where you reside.  For example, it may be helpful to have medical and financial powers of attorney drawn up in both Mississippi and the other state in order to avoid problems and delays should they be needed.

What Do You Do When You Live In Two States?

Even if you “live” in both states, you can only officially reside in one.  You are considered a visitor in the other state.  A Mississippi attorney will be able to help get you up to speed on the laws of our state and can help you compare them to similar laws in the other state where you reside.  Just as you’ve chosen to live in two states for the advantages to your life, there are also advantages to what happens after!

 

Clinton Lawyer Explains How To Tackle Estate Planning When You Live in Two States

By Ronald Morton | Leave a Comment

Being able to split your time between two or more places you love is a much-desired retirement dream for many people.  A great example are those folks referred to as “snowbirds” who live farther north in the US during the summer and then head back to the warmer southern states for the winter.  That allows folks to enjoy our gorgeous Mississippi summers while still keeping warm all winter long.

Many people living this lifestyle completely overlook the fact that it can have a major impact on what happens to their assets when they die.  If you were to pass away in Mississippi, the laws governing your estate may be totally different than those in Florida, Arizona, or whatever warmer state you’ve chosen for the cooler seasons.

Some Laws Differ from State to State

Basically, you need to make a decision about which state is your true legal residence.  This may be affected by the amount of time you spend in each or some other factor.  If you’re in a situation where you truly can choose, then you really want to work with a Hinds County estate planning lawyer to figure out which state’s laws are going to be the most advantageous to you and your estate.  There are all kinds of factors which can influence this decision, such as the property laws of each, your marital status, and even tax rates.  For example, Florida has been known for not having estate taxes at all.  This is great, but it does have other taxes that could come into play.

When you pass away, your estate can end up going through probate in both states.  This can be time consuming and expensive, and you may be able to avoid it by working with a Hinds County lawyer to set up some trusts and other protections.  There are some documents, however, that you might want to consider creating in both states where you reside.  For example, it may be helpful to have medical and financial powers of attorney drawn up in both Mississippi and the other state in order to avoid problems and delays should they be needed.

What Do You Do When You Live In Two States?

Even if you “live” in both states, you can only officially reside in one.  You are considered a visitor in the other state.  A Mississippi attorney will be able to help get you up to speed on the laws of our state and can help you compare them to similar laws in the other state where you reside.  Just as you’ve chosen to live in two states for the advantages to your life, there are also advantages to what happens after!

 

Clinton Probate 101: The Basics

By Ronald Morton | Leave a Comment

Probate is a process that can differ from state to state.  This means that the laws which apply here in Mississippi might not be the same as other places.  With such variance in what applies, it’s just good sense to work with an estate planning attorney in Clinton who will be up-to-date on all of the most recent information.  That said, there are some probate basics that everyone should understand.

The Will

Probate in Clinton is a court process to legally administer and close out an estate.  Unless you have specific trusts in place, your estate will likely go through this process, even if you have a will.  This is surprising news to some folks who thought that having a will would take care of everything and avoid the probate process in Mississippi.  Really, though, probate is used to ensure that the will is valid, as well as to distribute your assets according to the will.

Debts

If you have outstanding debts, the probate process is also a time for them to be paid.  The court will take a look at your assets and debts and determine how those debts are to be paid.  These debts are typically paid before your heirs receive their share of what is left.  In some cases, a Hinds County probate attorney can help you to reduce the number of assets that are vulnerable to being used for this purpose through the use of trusts.

Executor of the Estate

The person named as the executor (which may also be chosen by the courts, especially if you don’t have a will) is charged with gathering together all of your information to present during probate in Hinds County.  This means that all of your accounts, assets, and debts need to be listed and submitted to the court in a timely manner.  The executor will also be responsible for overseeing the distribution of your estate and for making sure that the court’s decisions are carried out.

Probate Lawyer

Probate lawyers in Clinton take on a number of roles in the process, one of which is acting as the executor of the will.  Some families prefer to have a professional take on these responsibilities, although there is a cost for the service.  Even if there is an executor, however, hiring a probate lawyer in Clinton is a good idea, as he or she will be familiar with the process and can therefore save the heirs considerable time, frustration, and money for the estate.

The Process

Again, the probate process can vary, but in Hinds County it will generally include the following:

  • Papers will be filed by the executor or lawyer to start probate
  • The will (if there is one) is presented along with a list of assets and debts
  • Notification of the death is made to relatives and creditors
  • The executor manages the assets for the estate for the duration of the probate process

Speak to a Hinds County Probate Attorney

If you are facing the probate process after the loss of a loved one, we encourage you to contact our Clinton probate attorneys to begin the process of closing out his or her estate.  Through compassionate guidance and hands-on legal help, we will ensure that your loved one’s affairs are properly taken care of so you can focus on your family and the healing process.  To schedule a complimentary consultation, simply call our Clinton probate attorneys at (601) 925-9797.

Estate Planning for College Graduates in Mississippi

By Ronald Morton | Leave a Comment

By the time you earn your college degree, you may not feel like you have anything to “protect” through estate planning.  After all, the stereotype of the “starving college student” got started for a reason!  But, even if you leave college with a load of student loans and an entry-level job (or hopes of one), you will do yourself a favor by spending just a little time doing some basic estate planning here in Clinton.

Clinton Estate Planning for Your Physical Self

There are tons of reasons to do your estate planning, and it seems like those most often talked about are passing on your possessions and avoiding taxes.  It can be argued, however, that there is a far more important reason, and it’s one that even young college graduates shouldn’t overlook: your medical decisions.

What happens if you become injured or otherwise capacitated and can’t tell the doctors what you want?  Who makes decisions for you about what kind of life-sustaining measures should be taken or whether or not you consent to surgery?  In most states, an individual’s parents are given this responsibility (although that is not always the case).  Whether you want your parents in that role or someone else, the way to make sure you have a say is to have an estate planning lawyer in Hinds County draw up a legally binding “medical power of attorney.”

Clinton Estate Planning for Your Finances

It may not seem like you have much of anything to look after when it comes to finances and the recent college grad.  In reality, though, you likely do have some things to consider.  For example, do you have any debt, and if so, do you know what happens to it if you become incapacitated or pass away?  The answer has a lot of variables such as the kind of debt, whether or not you have other authorized users on your account, and more.

One of the reasons you worked so hard for your degree was likely so you could move out into the workforce, and with that comes options such as retirement accounts and insurance.  Each of these includes naming a beneficiary for benefits, and you’ll want to make sure you are up to speed on what it means and have the appropriate people named.  Some accounts don’t have specific beneficiaries, so setting up even a simple will can help make the transfer of those funds much easier and less expensive when the time comes.

Clinton Estate Planning for Your Partner            

Many college graduates are moving forward with their lives as couples, both married and unmarried.  Either way, estate planning in Hinds County is an important part of making sure that your partner is cared for and receives the appropriate benefits upon your death. As mentioned above, you want to make sure you have the correct information filled out when it comes to beneficiaries on accounts, but you will probably want to go a step further to ensure that your assets pass in the way you want.  Typically, an unmarried partner is not entitled to the same benefits as spouses, so if you don’t set up the situation appropriately through well-reasoned estate planning, your significant other might be entitled to absolutely nothing!

Estate Planning Matters For College Grads, Too!

Contrary to what you may have heard, estate planning is just for the ultra-wealthy or the elderly.  Estate planning is just as important for the college grad and savvy young adult, too.   Celebrate your recent graduation and your success by getting a complimentary review of your situation. Schedule a Legacy Planning Session with the mention of this article and let us help you layout a road map for lasting protection and peace of mind in the future.

Things to Consider When It Comes to Special Needs Planning in Mississippi

By Ronald Morton | Leave a Comment

Families who have members with special needs have a variety of concerns that most of the population doesn’t deal with on a regular basis.  Whether you’re traveling to occupational therapy appointments, choosing the most effective medical devices, or contemplating whether to “mainstream” your special needs child, there are so many parts and pieces to keep in mind.  For that very reason, you may not have even considered the need to meet with a special needs planning lawyer in Clinton.

You spend a lot of your time and energy helping your family members with special needs to get the most out of life.  How are you going to keep that up if you become incapacitated or deceased?  Working with an experienced special needs lawyer is a really important step in making that a reality.  The attorney will help you get your affairs in order and will be able to advise you on areas that you might not even realize need attention.  Taking care of these issues now means that things are in place and ready to go should you suddenly become unable to care for your family member.

Clinton Special Needs Consideration #1 – Creating a Guardianship

You likely have very strong feelings about who you would and would not like to be responsible for your family member in your absence.  For example, you may feel that one of your adult children would be an excellent care taker while also being sure that you would not want your parents to be given guardianship.  If you don’t specify this clearly and legally, then the decision would be up to the courts, and your opinion on the matter will have no weight at all.

Clinton Special Needs Consideration #2 – Inheriting Assets

Many special needs attorneys in Mississippi will recommend that you not leave assets to your family member with special needs.  This doesn’t mean you don’t care for the person or want to recognize them in your will.  The point is, if the individual inherits assets, they can cause him or her to suddenly be disqualified from various types of assistance programs.  In fact, Medicaid could even view the acquisition of assets as a reason to go back and try to get payment for benefits paid out in the past.

Clinton Special Needs Consideration #3 – Setting Up a Special Needs Trust

Depending on your situation, your special needs planning attorney in Hinds County may recommend that you set up a specific trust for the family member.  You will also need to determine how the trust will be funded, with life insurance being a common choice.  Again, this action is intended as a way to protect the individual’s ability to qualify for certain types of benefits and public programs.  In addition to possibly providing assets and funding for the family member with special needs, this kind of trust can also name someone you trust as the legal manager of those funds.

It’s hard to overstate the importance of preparing for your loved one’s future, especially when it is apparent that he or she will be dependent upon others for a lifetime.  Working with a special needs planning attorney in Hinds County will allow you to create some peace of mind while ensuring you are in complianc

Making Long-Term Care Insurance a Part of Your Estate Plan in Clinton

By Ronald Morton | Leave a Comment

Working with a trust and estates attorney in Clinton is an excellent way to prepare for the future and to protect the assets you want to pass on to your loved ones after you’re gone.  A qualified Hinds County lawyer will be able to offer you valuable advice, not only on setting up a will or trust, but also on creating other important documents, such as medical directives and powers of attorney.

One area that often gets overlooked in the estate planning process is long-term care insurance.  There are different reasons why it gets ignored:

  • I’m too young to think about long-term care (whether you’re 40, 50, 60, or more)
  • I already have medical insurance, isn’t that good enough?
  • I don’t want the added expense of long-term care insurance
  • I have enough money set aside for nursing home or other long-term care

Some or all of these justifications may be true, but it really does make sense to at least discuss the risks with your Clinton trust and estates attorney.  For example, were you aware it is estimated that 60% of people over the age of 65 will need some kind of long-term care in their life?  Also, how confident are you that your health insurance will pay for long-term care?  You will definitely want to double-check that, as most private insurance, as well as Medicare, do not cover most long-term care services.

Keep in mind, too, long-term care isn’t just for the elderly.  Many younger people involved in accidents or who are diagnosed with a particular disease or illness will also require long-term care.  In many cases, this type of care will take place in a hospital or rehabilitation center, and it’s important to know where the money will come from to pay the expenses.

Of course, that’s not to say that everyone needs long-term care insurance.  Again, your Hinds County estate planning attorney can help you assess your risks and determine the right course of action.

What Long-Term Care Insurance Does

Long-term care is certainly beneficial in paying for nursing home expenses, but it doesn’t necessarily exclude other types of care settings.  It may be used to pay for in-home care, for example, or to help with the costs of adult day care or assisted living facilities.

Basically, long-term care insurance comes into play when an individual has lost the ability to take care of two or more of their own daily activities. These are usually defined as:

  • Bathing
  • Continence
  • Dressing
  • Eating
  • Toileting
  • Transferring

There are some other impairments which can trigger the need for long-term care, even if the person involved is still able to function in all of the ways listed above.  For example, a person with Alzheimer’s may still require long-term care, even if he or she is able to perform all six of the daily activities.

Of course, long-term care isn’t just about daily activities.  It can also be used to pay for health care and rehab costs recommended by a physician. Physical or speech therapy may be covered, as well as the need for professional care by a registered nurse.

Your trust and estates attorney in Clinton will work with you to help answer the most important questions in purchasing a long-term care insurance product.  Based on knowledge of the Hinds County area, the lawyer can guide you as you determine where in the community you might be most interested in receiving care and help base estimated coverage needs on this and other criteria.