Estate planning: Learning from the mistakes of celebrities and others - The Globe and Mail

This article has some excellent tips on avoiding mistakes in estate planning that can result in costly estate administration.  Do it yourself planning doesn't cost much on the front end but can have disastrous results after someone dies.  It's the classic example of being penny-wise and pound-foolish. 

Better to invest in a good estate planning attorney to ensure that your wishes will be carried out.  Look for an attorney who you feel comfortable talking to and who is willing to teach you the questions you didn't even know you needed to ask.  

Estate planning: Learning from the mistakes of celebrities and others - The Globe and Mail

The Law Offices of Hoyt & Bryan provides estate planning, estate administration and elder advice.  Contact us for more information. 

How to Avoid an Estate Battle After You Die - NYTimes.com

You certainly don't know someone until you share an inheritance with them. This is the lesson of this story and the competing wills.  When families fight, lawyers win - and in this case to the tune of millions of dollars in legal fees.

Estate planning is not a do it yourself project and you should engage the assistance of a qualified legal professional, ideally someone who is board certified in wills, trusts and estates and has significant experience.  

How to Avoid an Estate Battle After You Die - NYTimes.com

The high cost of being unreasonable

I just came across this post on LinkedIn.  It demonstrates that when family members fight, lawyers win.  In this case, the estate was worth about $700,000.  Not a small sum, but not a great one either.  The reported legal fees for one of the parties was $200,000.  If you assume the fees for the other party were similar, then who wins?  The lawyers, of course.  The family loses in every possible way, financially and emotionally.

Estate planning is not a do it yourself project.  Anyone can contest anything, for any reason.  But, is it worth the cost? 

Trust Administration Dispute Ends Up Costly for Complainant | Elder Law Issues — Fleming & Curti, PLC

Is the Average Age of Widowhood Really 55?

This is an insightful look at the real age of widowhood and mortality in our country.  The good news is, women may not become widows (on average) as early as previously believed.

If you or someone you know has questions about what to do when someone dies, don't hesitate to contact us or you can read more in "Straight Talk!  What To Do When Someone Dies." 

Is the Average Age of Widowhood Really 55?

You’re Not Married Until The Paperwork Is Finished | The Harry Thomas Hackney Florida Law Blog

I had the opportunity to speak to the Mid Florida Estate Planning Council the other day about planning for alternative lifestyles.  During the course of our discussion, some interesting questions came up about both married and unmarried couples.

In estate planning and estate administration, there can be issues for both married and unmarried couples. Here's an article that reminds us that we are not married until the paperwork is finished.  Both before and after the ceremony, make sure all the paperwork is properly completed and submitted or you may get a big surprise later!  If the marriage is invalid for any reason, it can mean the loss of approximately 1,100 rights under both Federal and State laws.    

You’re Not Married Until The Paperwork Is Finished | The Harry Thomas Hackney Florida Law Blog

Four Tips for the Executor Of an Estate | Fox Business

These four tips are essentially the four duties an Executor or Personal Representative has to carry out to properly administer an estate.  Estate administration is necessary whether a person dies with a will or with a trust.  They are as follows:
1.  Present the will
2.  Gather, identify and value the assets
3.  Identify and pay the creditors
4.  Distribute the remaining assets to beneficiaries

There is a general misconception that if a person has a trust and avoids probate then they also avoid administration.  Nothing could be further from the trust.  All estate require administration.  The big difference is whether the administration is public (probate) or private (trust administration).  Both have their pros and cons.  One benefit of probate is the ability to significantly shorten the creditor claim period. 

Four Tips for the Executor Of an Estate | Fox Business

Dealing with the Claims of Creditors

In today's economic environment, dealing with the claims of estate creditors can be challenging.  What do you do if you have a piece of property that is worth less than the mortgage owed?  What if you don't have enough money in the estate to pay all of the creditors?  What if you only have creditors and no assets in the estate?

Florida Statutes sets forth the procedures for identifying and paying the claims of creditors.  All known creditors must be given actual notice of their right to file a claim.  All unknown creditors are given notice by publication.  A creditor will have ninety (90) days from the date notice is given to file their legitimate claim in the estate.  They must follow the proper procedure or run the risk their claim may be improperly filed and therefore, invalid. 

If a claim is filed that the Personal Representative believes is an invalid claim, then the Personal Representative has the right to object to the claim.  The claimant then has thirty (30) days to bring an independent lawsuit for the purpose of enforcing their claim.  If they fail to file the lawsuit in a timely manner, their claim may be barred.  Many times, the parties will agree to an extension of time to file the independent suit to give time to truly ascertain the validity of a claim.  It would not be uncommon for a hospital to file a claim before all payments from insurance companies had been received.  They must file their claim in order to preserve their rights. 

Sometimes an estate will have more claims than it has assets.  If this is the case, Florida law establishes a scheme for determining the priority of claims.  Class 1 claims include costs, expenses of administration, and compensation of personal representatives and their attorneys fees and attorneys fees awarded under s. 733.106(3). Class 2 claims are the reasonable funeral, interment, and grave marker expenses, whether paid by a guardian, the Personal Representative, or any other person, not to exceed the aggregate of $6,000. Class 3.claims are debts and taxes with preference under federal law, claims pursuant to ss. 409.9101 and 414.28, and claims in favor of the state for unpaid court costs, fees, or fines. Class 4 claims are the reasonable and necessary medical and hospital expenses of the last 60 days of the last illness of the decedent, including compensation of persons attending the decedent. Class 5. claims are the family allowance. Class 6 claims are any arrearage from court-ordered child support. Class 7 claims are debts acquired after death by the continuation of the decedent’s business, in accordance with s. 733.612(22), but only to the extent of the assets of that business. Class 8 claims are all other claims, including those founded on judgments or decrees rendered against the decedent during the decedent’s lifetime, and any excess over the sums allowed in the Class 2 and Class 4 claims. 

Ultimately all claims are barred two (2) years after the death of the decedent except for those that arose because of a duly recorded mortgage or security interest or the lien of any person in possession of personal property or the right to foreclose and enforce the mortgage or lien.  

Estate claims can ultimately affect what assets are available for distribution to the beneficiaries.  As a result, sometimes a strategic decision may be made to postpone estate administration until after the non-claim statue has run.  

Consult with a qualified legal professional if you have questions about an estate administration.