How a Prenuptial Agreement Can Simplify Your Estate Plan

Prenuptial agreements are a valuable tool when it comes to maintaining control of assets in the event of a divorce, but they can also help to ensure your wishes are carried out after your passing. Although no one enjoys thinking of divorce at the start of a marriage, planning for potential situations can give you peace of mind, especially if you have children from a previous marriage. Consulting with family lawyers and estate planning attorneys before you wed can help you understand how a prenuptial agreement may fit into your estate plan.

What Is A Prenuptial Agreement?

A prenuptial agreement is a contract that is entered into before marriage and contains provisions surrounding the distribution of assets if a couple divorces or one of them dies. To achieve your intended result, it is critical to have experienced family lawyers help you draft a prenuptial agreement. The rights of surviving spouses vary by state, and using the wrong type of language or failing to address certain issues may invalidate a prenuptial agreement down the road.

Why Is A Prenuptial Agreement Important In Estate Planning?

Combined with the right kind of trust, a prenuptial agreement can help couples who remarry ensure that the assets acquired before a new marriage will be distributed to intended beneficiaries upon their death.

A prenuptial agreement can limit your spouse’s ability to contest your will, protect your privacy, and ensure your designated beneficiaries receive their inheritance. It can help families avoid contentious and lengthy court battles, save money on probate attorney fees and simplify the settlement and distribution on an estate. If you have children from a previous union, a family trust can also be an important estate planning element to protect your heirs’ inheritance.

For business owners, a prenuptial agreement can safeguard their share of a business in the event of divorce or death. Succession planning lawyers often recommend that clients consider prenuptial agreements before marriage, as it not only protects their heirs but can make things less complicated with partners or shareholders should they leave the company or pass away.

Why Do I Need A Lawyer To Execute A Prenuptial Agreement?

Although prenuptial agreements usually work the way they are intended, they can be contested. Some common reasons include:

• A party did not voluntarily execute the agreement
• The agreement violates state law surrounding a surviving spouse’s share of an estate
• Before execution of the agreement, a party was not given a fair and reasonable disclosure of the value and nature of property, income, financial obligations, and debt
• One party was not provided a reasonable opportunity to consult with independent counsel

Some people who appear wealthy on paper, may carry a substantial amount of debt that may be undisclosed, which could leave one spouse holding the bag should the other die or file for divorce. If you find yourself in this type of situation, seeking the counsel of local bankruptcy attorneys is advisable to determine your options for protecting your financial security.

As a full-service law firm, Carosella & Associates, P.C. can assist you with all aspects of drafting and executing a prenuptial agreement, estate planning, and other legal issues.

This blog was originally posted at https://carosella.com/blog/how-a-prenuptial-agreement-can-simplify-your-estate-plan/

Pros and Cons of Choosing Co-Executors for Your Estate

Selecting the right person to handle your estate can be challenging. Although most people decide to pick just one executor for their will, co-executors can help lessen the burdens that fall on a single executor. Setting up your will this way can be a positive thing for everyone involved, but it is important to speak with your estate planning attorneys so they can help you understand the benefits and drawbacks of co-executors.

What Is A Co-Executor?

Most people name an executor in their will with contingent executors, who take over should the original appointee die or is unable or unwilling to perform their duties. Typically, a spouse or adult child is named the primary executor, with other adult children and family members as contingent executors.

Each person named as a primary executor shares the responsibility of managing an estate. In cases where there are two or more adult children, parents sometimes name all of them as co-executors to avoid the appearance of favoring one child. While this is a nice sentiment, it can lead to serious conflict.

Duties of Co-Executors

To avoid problems, it is critical to be specific about how co-executors are to fulfill their duties. There are several ways to do this. For example, if you name three co-executors, you can specify that decisions must be made by a majority vote, that all of them are required to take action together, or that any one co-executor has authority to act alone. To effectively and efficiently handle the process, they must collaborate and communicate with each other.

Some duties of executors include:

• Managing the assets of the estate
• Paying debts
• Distributing property and assets to heirs
• Keeping an accounting of the estate
• Filing taxes

Probate attorneys can often be helpful when co-executors are involved, as they provide an objective perspective that can keep things running smoothly.

Benefits of Naming Co-Executors

Co-executors can share the work of settling an estate and help each other with any problems or questions that arise.

Each co-executor may have specific skills that can be applied to different facets of the estate. For example, if one co-executor works as a local bankruptcy attorney, they may have an easier time determining which of a decedent’s debts need to be paid and which may not be valid.

If you own a business and want to ensure that part of your estate is properly handled, naming someone who understands business and succession planning can help protect your heirs’ rights.

Disadvantages of Appointing Co-Executors

Issues between co-executors can delay the probate and estate administration process.  Some examples of these issues include:

• Personal conflicts unrelated to the estate
• The majority of the work falling on one co-executor
• One co-executor believing that another is monopolizing what should be shared responsibilities
• Disagreement over the value of assets
• One co-executor may simply be unable to  handle the tasks that are required of them

Who you choose as executors of your estate is a personal decision. Our team of wills and trusts lawyers, estate planning attorneys, business lawyers, and local criminal defense lawyers and attorneys for real estate law can help you handle any legal issue that may come your way.

This blog was originally posted at https://carosella.com/blog/pros-and-cons-of-choosing-co-executors-for-your-estate/

Important Questions to Ask an Estate Planning Attorney

Having a solid estate plan in place can help make things easier for your loved ones and protect your interests as well. If you have never considered estate planning before, just thinking about it can be daunting. These questions can help you find estate planning attorneys who are right for you.

How Long Have You Been Practicing Law?

Regardless of the task at hand, finding an experienced lawyer usually makes the process run more smoothly. A seasoned estate planning lawyer will have experience handling all different types of challenges and understand how to help you craft a plan that meets your specific needs.

How Much Of Your Focus Is In Estate Planning?

Make sure to ask how much of a lawyer’s focus is in estate planning, whether they keep up with the latest changes in estate and tax law, what types of estates have they handled, and whether they help with probate and estate administration.

Can You Help Me Create A Comprehensive Estate Plan?

Estate planning involves so much more than simply drafting a will. Powers of attorney are critical documents that can protect your interests while you are still alive, and trusts and life insurance are often important tools for optimizing your heirs’ inheritance.  Do not hesitate to ask questions about which estate planning elements an attorney may recommend for your specific circumstances.

Will You Conduct Periodic Reviews?

An annual or semi-annual review of your estate plan is a must. Find out if a lawyer will do these reviews with you and ask for a rough estimate of how much the fee for review will be. It is also important to remember to update your estate plan after important life events such as marriage, divorce or the birth of a child.

Will Anyone Else In Your Office Be Able To Assist Me Or Answer Questions?

Although most attorneys strive to make themselves available to their clients, emergencies happen. Knowing who to talk to if your lawyer is not available when an urgent matter arises can help you avoid stress and make things easier for everyone involved.

Can You Help Me With Other Issues?

If you are a business owner, having an attorney who understands business succession planning or collaborates with succession planning lawyers can help to ensure all your bases are covered in the event of your incapacitation or death. Real estate and contract law experience can also be invaluable if you own property or a business and want to incorporate them into your estate plan.

What Are Your Fees?

Depending on the complexity of your estate, an attorney may charge a flat fee instead of an hourly rate. Some do both, charging a flat fee for basics like powers of attorney and an hourly rate for more extensive tasks such as establishing a trust. It is important to find out ahead of time how you will be charged so you do not encounter any surprises down the road.

When it comes down to it, trust your gut. Feeling comfortable and confident about the estate planning attorney you choose can help you get through the process with ease.

This blog was originally posted at https://carosella.com/blog/important-questions-to-ask-an-estate-planning-attorney/