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 Special Needs Lawyer Offers Practical Tips in Setting Up a Supplemental Needs Trust

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If you have a family member with special needs, it is important to factor him or her into your estate planning.  In fact, there are “special needs trusts” or “supplemental needs trusts” which can be created specifically for this purpose.  Working with a special needs lawyer in Hinds County is  the best way to make sure that you are setting your loved one up to be cared for when you are no longer able to do so yourself.

Special needs trusts can be set up and funded in numerous ways.  The special needs trust can be either revocable or irrevocable and can spring to life upon your passing or be set up during your life.  Much will depend on how the trust will be funded.  If you are the only one to contribute then a trust that springs to life upon your death may be the best choice.  If other family members, such as grandparent, aunts or uncles will also be contributing to the trust then it makes the most sense to create the trust now.  If you are sure that the parents will be the only contributors, then you might want to consider a revocable trust, as it can be changed throughout your lifetime to reflect the choices you want to make over the course of time.

One of the biggest considerations that needs to be made is who will be the trustee.  This is the person who will administer the trust which has been created to care for your loved one.  Careful thought needs to go into choosing this person, as he or she will have a significant impact on the life of the person cared for by the trust.  The trustee will also have access to funds and will make a lot of important decisions.

Your special needs lawyer in Clinton, MS can help you to define the role of this person through your legal documents, but you still want to choose someone who is trustworthy and has your loved one’s best interests at heart.  He or she should also be very familiar with the specific needs of the person they will be responsible for, which could range from medical concerns to favorite foods and hobbies.  Additionally, you want to choose someone who has the ability to create and execute a reasonable budget.  One option is to name both a family member and a professional as co-trustees.

Of course, determining how much money needs to go into the trust is another major concern.  There are so many factors to take into consideration.  Remember that costs will likely continue to rise over time, so basing totals on today’s costs will likely not be adequate.  This is yet another reason that it makes sense to work with a special needs lawyer in Clinton. He or she will be familiar with many of the most common costs but will also be able to personalize the special needs trust so it is a good fit for your particular situation.

You may find that there are some one-size-fits-all special needs trust planning tools online, but this is an area where that option is really not a good idea.  No one has to tell the parent of a special needs child that every situation is considerably different.  Instead, choose a qualified special needs lawyer in Hinds County for the peace of mind knowing that your child will always be cared for and protected in your absence.

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 Elder Lawyer’s Advice: Create a Personalized Healthcare Directive

By Ronald Morton | Leave a Comment

When a Clinton elder lawyer’s clients enter a hospital or other medical facility, they have the peace of mind that comes from knowing their healthcare wishes will be made clear to the staff.  This is because the attorney and the client were able to sit down and go through various situations and scenarios to put together a personalized healthcare directive.  When you don’t have one of these in place, the hospital will likely ask you to use their forms to create something similar.

While it’s better to fill out their form than to have no healthcare directive at all, it’s important to remember that it will not be personalized to fit your needs.  When the hospital or other institution puts their forms together, they do so for a wide, unknown audience.  The topics covered will be those which the hospital (or its lawyers) find important, rather than those which are meaningful to you and your family.

Basically, this document is where you name the person that you want to make medical decisions should you become unable to do so yourself.  Oftentimes, this person is a spouse, but if you are unmarried or simply want to appoint someone else, then a healthcare directive is especially important.  Remember that if you don’t assign the role, the legal system will do so for you, choosing a “close” blood relative, such as your adult children (or your parents, for younger folks) to make the medical decisions you are unable to make at the time.

Provide Guidance about Your Wishes

Your Hinds County elder lawyer will not only have you appoint someone, he or she will also help you to make many medical decisions in advance.  By recognizing potential medical situations and declaring your wishes, you can lessen the burden for the individual who will ultimately be responsible for your care.  For example, what are your feelings about life-sustaining measures such as feeding tubes and respirators?  Are there situations in which you would want these used and/or situations where you would not?

This is also a good place to make any religious or cultural restrictions known.  For example, some groups do not agree to have blood transfusions performed.  If this is the case for you, then your healthcare directive would be the place to make it known.  Ideally, you would discuss your thoughts and decisions with the person you have named so that he or she is aware of your feelings and can use that understanding to guide him or her if other circumstances were to happen.  Obviously, your healthcare proxy won’t cover every potential situation, so it’s beneficial for the appointed person to have a good understanding of your beliefs in order to make decisions which are in alignment with what your wishes would be.

Important to Remember

If you have gone through the effort to work with your Hinds County elder lawyer to create your personalized health care directive, make sure that it isn’t undone by filling in one of the generic healthcare proxy forms at the hospital.  If you use their form, you can negate the one you created with your attorney.

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.

Trust Lawyer in Jackson MS on How Much Financial Information You Should Share With Your Family

By Ronald Morton | Leave a Comment

Estate Planning for College Graduates in Mississippi

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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.