If you have questions about your Georgia estate planning or the benefits to your family from this gift tax exclusion increase, contact us today for a consultation.  Available to meet in person, via Zoom, or over the phone.  We are conveniently located not far from Perimeter Mall in Dunwoody, Georgia.   Happy New Year to all!  It’s a great time of year to re-look your estate planning documents to make certain they are current, properly reflect your wishes, and address your concerns.  We are getting lots of questions about trusts due to increased time to probate during COVID.

©Karen S. Hindson, Hindson & Melton LLC

Most Atlanta area Court hearings are held remotely by Zoom or WebEx.  Hindson & Melton has processed COVID divorces with great success, settling cases promptly and efficiently when the parties are motivated to get it done.  Mediations are conducted safely and remotely with each party and lawyer dialing in from their preferred location – home or office.  Our experience during COVID has been that lawyers have cooperated to try to accommodate each individual’s health and safety concerns and cooperated to try to achieve out-of-court settlements acceptable to all.  Court personnel are appreciative of the parties working to resolve their issues cooperatively, saving judicial resources for cases that need emergency attention and intervention.  In our experience, the metro Atlanta Courts are processing our settlement agreements and issuing final divorce decrees quickly.  Where a final hearing is needed, the Courts have scheduled virtual hearings and ruled on the spot so the case can be finalized.

Are both parties required to have attorneys to get a divorce?  Not necessarily.  Ethically, an attorney can represent only one side of a divorce case.  Representing both parties would be a conflict of interest for the lawyer.  However, it is possible for one party to be unrepresented during settlement discussions if he or she is comfortable doing so – reserving the right to have a separate attorney review settlement documents prior to committing to the terms.

An experienced attorney can help you “cut to the chase” on financial and parenting issues.  Having a good idea of what would happen if you went to Court gives you information you need to resolve the case by agreement – often saving thousands of dollars in attorneys fees.

Hindson & Melton is open for business.  We can meet with you in person at the office in a large socially-distanced conference room (with masks), outside in our office courtyard seating area, over the phone, or via Zoom.  Call 770-939-3936 to schedule an appointment with Karen Hindson, or 770-512-8383 to schedule an appointment with Joy Melton.  We look forward to serving your legal needs with forthright advice, kindness, and compassion.

Karen S. Hindson 9-4-2020

If you regularly make annual gift tax exclusion gifts to family members, or think you may want to start, consider leveraging your gifting with an irrevocable trust.  Call the Atlanta law firm of Hindson & Melton LLC for more information about annual gifting, irrevocable trusts, and other estate planning ideas to benefit your family.  And have a great 2018!

© Karen S. Hindson, Hindson & Melton LLC

In 2017, the basic exclusion amount was $5.49 million, but the Tax Cuts and Jobs Act of 2017  doubled the exclusion amount for years 2018 through 2025.  As of now, the 2017 provisions end in 2025 and the exclusion amount will go back to the old amount.  The 2017 tax law made portability permanent,  meaning a spouse can make use of the unused portion of the deceased spouse’s estate tax exclusion.  The 2017 tax law also made the basic exclusion amount permanent.

Keeping track of estate tax law changes can be important to your family’s financial future.  Atlanta law firm Hindson & Melton LLC can assist you with estate planning tailored for your family’s needs and goals.  Call us to discuss your family’s situation.

© Karen S. Hindson, Hindson & Melton LLC

Personal estate planning notebook for key information

Start a notebook for your family with information that would be important if you die or are suddenly incapacitated. Brainstorm and jot down initial thoughts and begin to collect information in your personal estate planning notebook. There is no better way to demonstrate your love than planning for your family’s future.

Key people and recent account statements

You will have important names and contact information, such as financial and legal advisors and insurance agents. Include a recent statement for every investment account, retirement account, bank account, and dividend reinvestment account you own. Replacing the statements in your notebook quarterly is ideal, but update them at least annually.

What about online accounts?

People conduct personal business online these days. Periodically print a statement for each online account if you do not receive hard copies by mail. For accounts that you have closed or transferred, either remove the statement from your notebook or make an annotation about the disposition of the account.

Stock certificates

Photocopies of any stock certificates or bonds for which you have the actual certificates or bonds, including all stock split certificates.  For stocks held in “dividend reinvestment plans” (DRIPs), a copy of the most recent account statement from the transfer agent for each account.

Safety deposit box

If you have a safety deposit box, include the location of the box, who has access, and consider a current list of contents or box inventory.

Where are the originals of your Will and any Trusts?

Include the identity and location of your original estate planning documents such as your last will and testament and any codicils, and trusts for which you are the grantor, trustee, or beneficiary.

Living will and powers of attorney

A copy of your living will and health care power of attorney (or Georgia advance directive for health care) should be included in your notebook along with the location of the originals.  In South Carolina, the living will is called a declaration of desire for natural death.   Also include the location of your durable power of attorney or financial power of attorney, and any designation or nomination of guardian.

Insurance – life and disability

For life or disability insurance, record the name of the issuing company, the policy number, and include a copy of the policy “declaration page” or summary sheet in your notebook. Note the location of the original documents and any helpful points of contact.

Family information

If you have family members living overseas or geographically dispersed, it might be helpful to list their addresses and contact information.  If you have a deceased  spouse or child, include a death certificate.

Other responsibilities

Are there are others who should be notified if you die? Do you have responsibilities to third parties or charitable organizations?  Are you a guardian or trustee or attorney-in-fact for someone else?

What if I own a business and I die or am incapacitated?

If you own a business or are self employed you will need to include information in your notebook such as how to access your accounts payable and receivable, information about work in progress and customer or client information. What would need to happen if you died suddenly or were disabled?

Business succession and estate planning information

Your personal estate planning documents are probably insufficient to deal with a business, especially if you operate as a corporation, LLC, or partnership. Your executor or heirs need to have proof of your ownership and rights to the business. They also need copies of any shareholder agreements or buy-sell agreements.

Anyone acting on behalf of your business after you die, or once you become incapacitated, must have proper legal authority in order to access business bank accounts or take other action on behalf of the business. Proper planning for business succession or disability is critically important if your family depends on income from your business. An estate planning and business attorney can help identify and address your specific business needs.  Business owners frequently are “too busy” to plan for such contingencies.   Take the time necessary to plan for your possible death or disability.

Copies of Last Will and Testament and any Trusts?

You may want to include an information copy of some, or all, planning documents in your estate planning notebook. This will depend in part on whether you have transparency with the individuals who might see your notebook from time to time. Remember that your heirs would need the original documents to act, so don’t lose track of the location of your originals, and be certain to record this information. If you have concerns that a document might “disappear” or be destroyed by someone displeased with the content, speak with your attorney about ways to safeguard your document.  Good planning makes for good results.

Real property whether owned individually, jointly, or in trust

List any real properties in which you own an interest, including address, county, state, country. List the names of any co-owners. If property is owned by a trust, list the name of the trust and the location of the trust document. A photocopy of the actual warranty deed to each property is ideal; it will help your advisors confirm whether the property is titled individually, joint with rights of survivorship, in joint tenancy, or owned by an entity such as a business or limited partnership.

Tax basis

If you have information about the tax basis for any specific property or investment, include that information or documentation or its location.

Loans and promissory note documents and payment info

If you have loaned money to family members or others, include copies of loan documents such as signed promissory notes, and a record of any payments received. Also, make sure your last will and testament or trust is clear if you consider certain transfers or gifts to your children as advances against their inheritance. Your estate planning attorney can help you accomplish your goals with appropriate documents.

Password and login for email and social media

For email accounts, online “cloud” repositories, bank or investment accounts, and all social media accounts, your estate planning notebook should probably include your login information including current passwords. This information must be preserved somewhere.  Your executor, trustee, or heirs will need access to this information if you die. Your loved ones might need this information if you are incapacitated. Be sure to keep this list current, since we all change passwords frequently.

Protect the security of your information — weigh the risks

How do you keep information in your estate planning notebook safe? As you have undoubtedly recognized, a person with the information in your notebook could potentially wreak havoc with your estate — or loot your accounts using your passwords. As a result, you must consider this security risk when creating and managing your estate planning notebook — and weigh the benefits of collecting and storing this information against the risks inherent in having the information assembled in one place. You can brainstorm with your lawyer and loved ones about security measures appropriate for your family’s information.

Family considerations in sharing estate planning information

While it would be most excellent if all families had only mature, responsible, reliable, and trustworthy members, that is not always the case. Most families have a strained or broken relationship, sibling rivalries, an immature or irresponsible member, or other family dynamic that should be taken into account in estate planning.   Your estate plan is YOURS, so don’t let your kids or other family members pressure you into planning decisions you don’t like.  The contents of your estate planning documents (if not the location) may need to remain totally private until after your death, depending on your individual circumstances.   Family issues are important when deciding where to safeguard your original documents and with whom to share the information described in this article.  Sometimes a trusted friend or advisor plays a role in safeguarding your information.

Second marriages – blended families – special needs information

Second marriages and blended families will have additional issues to consider, not only in the estate planning process but also in information collection, storage, and sharing. Families with a special needs member may want to add a narrative to their notebook with helpful information about the special needs individual and his or her likes, dislikes, challenges, strengths, and sources of joy. This could be enormously important under the right circumstances.

Frequent updates

Once you create your estate planning notebook, please keep it up to date. If you don’t, unnecessary confusion or suspicion amongst family members might be the result. I recommend updating your estate planning notebook quarterly; put it on your calendar “to do” list. You will be surprised how often things change and how easy updates are, once you have the notebook in place. You may even find yourself addressing issues you have avoided once you begin this process!

Copyright Karen S. Hindson, Hindson & Melton LLC – February 2, 2014, updated February 3, 2017

ALSO SEE:

• ESTATE TAXES AND IRAs
• USING A TRUST TO PLAN FOR YOUR INCAPACITY
• IRREVOCABLE LIFE INSURANCE TRUSTS

A QTIP trust – or qualified terminal interest property trust – can be helpful in the right situation.  Two common scenarios where a QTIP trust might be useful are:

• for a married individual with children from a prior marriage (who wants his or her children to ultimately receive anything left at the spouse’s death), or
• for a married individual who is concerned about leaving their assets to a spouse and the ramifications of the surviving spouse remarrying.

The trust needs to work in concert with investment account titling and beneficiary designations.  If you would like to discuss whether a QTIP trust is a good solution for you, and how it might fit into your overall estate plan, contact me at 770-939-3936.

Happy New Year!

Karen S. Hindson, Hindson & Melton LLC

Additionally, you can make unlimited payments directly to some educational and medical providers on behalf of someone else.  Of course there are regulations – for example, qualified education expenses are limited to tuition and you cannot pay for books or room and board as a qualified education expense.

The 2016 total exemption applying to estate tax and lifetime gifting is $5,450,000; for 2017 it will increase to $5,490,000.  If you make a gift to any individual that exceeds the annual gifting exclusion amount ($14,000), that will reduce your lifetime (including estate tax) gift amount.  At death, any unused exemption can be transferred to a surviving spouse but this requires a timely filing with the IRS.

If you have an estate that is potentially subject to estate tax, we can assist you with strategies designed to minimize your taxable estate and transfer wealth to the next generation.  This includes holding life insurance outside of your estate using an irrevocable life insurance trust, or using tax savvy trusts such as grantor retained annuity trusts (GRAT) to help keep the taxable value of your lifetime gifting low.  Contact us for more information about estate tax savings or gifting strategies that are right for you.

Karen Hindson, Hindson & Melton LLC

ALSO SEE

• Estate Planning Tips
• Estate Tax Portability
• Estate Tax and IRAs

An example of a self-executing change of custody?   a provision stating if the primary custodian moves out of Fulton County, primary custody automatically changes to the other parent.

Parents have sometimes agreed to self-executing changes of custody trying to avoid potentially having to return to Court, but such provisions can backfire and must be avoided based on recent Georgia cases.

Karen S Hindson, Hindson & Melton LLC

ALSO SEE

• Georgia Custody Factors