Jarrett R. McCartney
Estate Planning
Protecting Your Legacy with Comprehensive Planning
At The Law Offices of Jarrett R. McCartney, PLLC, we specialize in providing personalized estate planning services to clients throughout Michigan.
Our goal is to help you protect your assets, provide for your loved ones, and ensure that your wishes are carried out.
Everyone needs a plan for the future. WithOUT proper estate planning:
- Your assets could be tied up in lengthy legal processes
- Your loved ones may not be adequately provided for
- Your wishes may not be honored.
These challenges can cause significant stress and financial strain on your family during an already difficult time.
The good news is that with the right estate planning, you can avoid these problems. At The Law Offices of Jarrett R. McCartney, PLLC, we understand the complexities of Michigan estate law and can help you create a comprehensive plan that meets your unique needs.
Our experienced attorneys are here to guide you through every step of the process, ensuring that your estate is managed effectively and your loved ones are taken care of.
Contact us today to schedule a consultation and take the first step toward securing your future.
Wills
A will is an essential part of any estate plan. It allows you to specify how your assets should be distributed after your death, name guardians for your minor children, and appoint an executor to manage your estate.
Without a will, the state determines how your assets are divided, which may not align with your wishes. We can assist you in creating a will that provides clarity and peace of mind for you and your loved ones.
Trusts
Trusts offer benefits, including avoiding probate, protecting assets, and ensuring that your beneficiaries are cared for according to your wishes. Each trust type has its own advantages.
Living trusts allow you to maintain control over your assets during your lifetime and make changes as needed, while irrevocable trusts offer greater asset protection and tax benefits.
We can help you determine which type of trust is right for you and guide you through the process of setting it up.
Special Needs Trusts
Special needs trusts are designed to provide for individuals with disabilities without jeopardizing their eligibility for government benefits.
These trusts can cover costs, from medical care to personal needs, ensuring that your loved one receives the support they need while maintaining their benefits.
Whether you are setting up a first-party or third-party special needs trust, we can help you navigate the legal requirements and create a plan that offers security and peace of mind.
Powers of Attorney
A power of attorney is a crucial document that allows you to designate someone to make decisions on your behalf if you become incapacitated.
In Michigan, having a trusted individual step in can ensure that your financial and medical decisions are handled according to your wishes.
We can help you draft a durable power of attorney that remains effective even if you become unable to make decisions for yourself.
Top Five Benefits of Estate Planning in Michigan
Estate planning is more than just preparing for the inevitable. It’s about taking control of your future, protecting your loved ones, and ensuring that your wishes are honored. Here are the top five benefits of estate planning and how The Law Offices of Jarrett R. McCartney, PLLC can help you achieve them.
Avoiding Probate
One of the most significant benefits of estate planning is avoiding probate. Probate is the legal process through which a deceased person’s estate is settled, and it can be time-consuming, costly, and public.
By setting up a comprehensive estate plan, including trusts and other tools, you can ensure that your assets are transferred directly to your beneficiaries without the need for probate. This keeps your affairs private and saves your loved ones from unnecessary stress and expenses.
Our experienced attorneys can help you create a plan that bypasses probate, ensuring a smooth and efficient transfer of your assets.
Protecting Your Assets
Estate planning allows you to protect your assets from creditors, lawsuits, and other potential threats. By establishing trusts, you can safeguard your wealth and ensure that it is used for the benefit of your loved ones.
For instance, irrevocable trusts can provide significant asset protection, shielding your estate from claims and reducing tax liabilities. Our firm can guide you in setting up the right trusts to protect your hard-earned assets and provide for your family’s future.
Providing for Your Loved Ones
A well-crafted estate plan ensures that your loved ones are taken care of according to your wishes. This includes designating guardians for your minor children, setting up special needs trusts for disabled family members, and specifying how your assets should be distributed.
By clearly outlining your intentions, you prevent disputes and provide peace of mind for your family. We can help you draft wills, trusts, and other documents that reflect your desires and provide for those you care about most.
Minimizing Taxes
Effective estate planning can significantly reduce the tax burden on your estate, ensuring that more of your assets go to your beneficiaries. Strategies such as gifting, setting up charitable trusts, and taking advantage of tax exemptions can help minimize estate and gift taxes.
Our knowledgeable attorneys stay up-to-date on the latest tax laws and can advise you on the best ways to structure your estate to maximize tax savings.
Ensuring Your Wishes Are Honored
Perhaps the most personal benefit of estate planning is the peace of mind that comes from knowing your wishes will be honored. Whether it’s making healthcare decisions through a durable power of attorney or specifying your funeral arrangements in your will, an estate plan ensures that your preferences are respected.
Our firm works closely with you to understand your values and goals, helping you create a plan that truly reflects your wishes.
At The Law Offices of Jarrett R. McCartney, PLLC, we understand that estate planning can seem daunting. That’s why we’re here to provide compassionate, personalized service every step of the way. Contact us today to start your estate planning journey and secure your future for yourself and your loved ones.
FREQUENTLY ASKED QUESTIONS
What documents are essential for a comprehensive estate plan?
A comprehensive estate plan in Michigan requires several key documents to ensure that your assets are managed according to your wishes and that your loved ones are taken care of.
Here are the essential documents you should include:
Last Will
A will is a fundamental document that outlines how your property should be distributed after your death. It also allows you to designate guardians for your minor children and specify your wishes for funeral arrangements.
Revocable Living Trust
A revocable living trust helps you manage your assets during your lifetime and allows for a smooth transition of property upon your death without going through probate. This document is particularly useful for maintaining privacy and avoiding the costs and delays associated with probate.
Powers of Attorney
A durable power of attorney grants a trusted individual the authority to manage your financial affairs if you become incapacitated. This ensures that your bills are paid and your financial matters are handled without the need for court intervention.
Advance Healthcare Directives
An advance healthcare directive (one type is a living will) allows you to outline your medical care preferences in case you become unable to communicate them.
It also lets you appoint a healthcare proxy to make medical decisions on your behalf, ensuring that your healthcare wishes are followed.
Beneficiary Designations
Beneficiary designations are crucial for accounts such as life insurance policies, retirement accounts, and bank accounts. These designations ensure that your assets are transferred directly to your chosen beneficiaries without going through probate.
A Plan for Your Loved Ones to See
Creating an inventory of assets and a list of professional contacts provides a clear roadmap of your financial landscape. Include detailed information about your bank accounts, investments, real estate, and personal property, along with the contact details of your attorney, financial advisor, and other key professionals.
How can I ensure that my estate avoids probate?
To ensure that your estate avoids probate in Michigan, you can use several estate planning tools that effectively transfer assets outside of the probate process. Here are the key methods:
Trusts
Creating a trust is one of the most effective ways to avoid probate. By transferring ownership of your assets to a revocable living trust, you retain control over them during your lifetime, and upon your death, the assets are distributed to your beneficiaries according to your wishes, bypassing probate entirely. This method provides privacy and can significantly speed up the distribution process.
Joint Ownership
Joint ownership with rights of survivorship allows property to automatically pass to the surviving owner upon your death. This can apply to real estate, bank accounts, and other significant assets. However, it’s important to be aware that joint ownership gives the co-owner immediate rights to the property, which may not always be desirable.
Lady Bird Deeds
Lady Bird deeds (enhanced life estate deeds) enable you to maintain control over your real estate during your lifetime, including the right to sell or mortgage the property. Upon your death, the property automatically transfers to your named beneficiaries without going through probate.
POD Accounts
Payable-on-death (POD) designations allow you to name beneficiaries for your bank accounts and investment accounts. Upon your death, the assets transfer directly to the named beneficiaries, avoiding probate.
Gifting
Lifetime gifts can reduce the size of your estate, potentially avoiding probate for those assets. However, this option requires careful consideration of gift tax implications and Medicaid eligibility rules if you may need long-term care within five years of making the gift.
What are the differences between a will and a trust, and which one is right for me?
The key differences between a will and a trust, and determining which one is right for you, involve understanding their distinct purposes, functions, and benefits.
Your Last Will and Testament
A will is a legal document that specifies how your assets will be distributed after your death. It allows you to name an executor to oversee your estate, designate guardians for minor children, and specify your wishes for funeral arrangements.
Wills go through the probate process, which is a court-supervised procedure to settle your estate, pay debts, and distribute assets. Probate can be time-consuming and costly, and the proceedings are public records, which means your estate details are not private.
A Living Trust
A trust, specifically a revocable living trust, is a legal entity that holds your assets during your lifetime and specifies how they should be distributed after your death. One of the primary advantages of a trust is that it avoids probate, allowing for a quicker and more private transfer of assets to beneficiaries.
Trusts can also provide management of your assets if you become incapacitated, as the trustee (who can initially be you) manages the assets according to your instructions, and a successor trustee can take over if you are unable to do so.
Trusts can be more complex and expensive to set up initially compared to wills, but they often save time and money by avoiding probate and providing continuous management of your assets.
The Best Option for You and Your Loved Ones
The option right for you depends on your specific circumstances and goals. If you have minor children, a will is essential to designate their guardianship. If you want to ensure privacy and avoid probate, a trust might be more appropriate.
For many people, a combination of both a will and a trust provides the most comprehensive estate planning solution. A pour over will can ensure that any assets not in trust pour into your trust at the time of death.
Consult with us to determine the best approach based on your individual needs.
How can I protect my assets from taxes, creditors, and lawsuits?
To protect your assets from taxes, creditors, and lawsuits in Michigan, consider implementing several key strategies as part of your estate planning:
Establish Trusts
Trusts, especially irrevocable trusts, are effective in shielding assets from creditors. Once assets are placed in an irrevocable trust, they are no longer considered part of your estate, which helps in protecting them from creditors and reducing estate taxes.
Additionally, spendthrift trusts can prevent beneficiaries from squandering their inheritance and protect assets from their creditors.
Utilize LLCs and Other Legal Entities
Transferring ownership of assets, such as real estate or business interests, to a Limited Liability Company (LLC) can provide protection. LLCs create a legal separation between personal and business assets, ensuring that if the business faces legal issues, personal assets remain protected.
Maximize Retirement Accounts
Contributions to retirement accounts like 401(k)s and IRAs are often protected from creditors under federal and state laws. Maximizing these contributions not only secures your financial future but also offers significant asset protection benefits.
Insurance Policies
Insurance serves as a crucial line of defense. Umbrella insurance policies provide additional liability coverage beyond standard policies, safeguarding your assets from large claims.
Life insurance and long-term care insurance can also protect your estate from being eroded by unexpected expenses.
Beneficiary Designations and Lady Bird Deeds: Properly structuring beneficiary designations on accounts and using tools like Lady Bird Deeds for real estate can ensure assets transfer directly to beneficiaries without going through probate.
This not only helps in avoiding probate but also protects the assets from creditors during the probate process.
How do I ensure my estate plan remains up-to-date and valid over time?
To ensure your estate plan remains up-to-date and valid over time, it is essential to review and update it periodically, especially following significant life changes. Here are the key steps you can take to maintain an effective estate plan:
Regular reviews
Schedule a review of your estate plan every three to five years. This helps ensure that the plan reflects your current wishes, assets, and family circumstances. Regular updates are crucial as laws and personal situations change.
Update after major life events
Significant events such as marriage, divorce, the birth or adoption of a child, or the death of a beneficiary or executor should prompt an immediate review of your estate plan.
These events can drastically alter your distribution preferences and the individuals involved in executing your plan.
Reflect financial changes
Any substantial changes in your financial situation, such as acquiring or selling significant assets, inheriting money, or winning a lottery, should be reflected in your estate plan.
This ensures that all assets are accounted for and appropriately distributed.
Ensure compliance with current laws
Estate planning laws can vary by state and may change over time. If you move to a different state or country, it is essential to update your estate plan to comply with the new local laws and regulations.
Consulting with an estate planning attorney can help ensure your plan adheres to the latest legal requirements.
Communicate with involved parties
Ensure that your chosen executors, trustees, and beneficiaries are aware of their roles and responsibilities. Regular communication can prevent misunderstandings and ensure that everyone is prepared to act according to your wishes.