It’s beneficial to be aware of the threats that exist when you are arranging for the transfer of assets to your loved ones after your passing. One of these would be the estate tax;  another would be the costs associated with probate.  Both should taken into consideration. There are ways that your estate planning attorney can navigate around these potential sources of asset erosion, and this is why legal representation is key.
Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

Planning for retirement can be stressful, and it is only natural that you worry that you are making the wrong decisions, or that your plan won’t work the way you hope it will. Those that don’t have a lot of money do have reason to worry when it comes to retirement, but if you create a step-by-step plan to follow, it can seem a lot less stressful.
Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

If your spouse becomes ill and must enter a nursing facility it isn’t necessary to sell your home, though it is important to understand that there will still be some major concerns at some point. In many cases when someone enters a nursing home they will need help from Medicaid to pay for that cost, even if they thought that they could pay for the care on their own. Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

One of the most common mistakes people make concerning the Revocable Living Trust is in thinking that this type of trust offers protection against creditors. The simple fact is that this trust will not provide any protection against creditors and debt collection because any assets held in that trust are still considered to be yours.

Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

You can plan carefully for retirement throughout all of your adult life, and have it all ruined by making one simple mistake. The closer you get to retirement, the more severe the consequences can be for making mistakes in your retirement plan. If you are nearing retirement, you must plan carefully and make sure that you do not make any of the most common retirement planning mistakes.
Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

Since we began our practice in 1983 we have created hundreds of Family Limited Partnerships (FLPs) and Family Limited Liability Companies (FLLCs) in order to centralize management of assets in our clients’ estate and offer creditor protection.  In some cases these entities have allowed our clients to realize some estate tax savings because of minority interest and lack of marketability discounts. Read more…

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

This is only a test.

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

In the hectic pace of everyday life it’s easy to forget how long the existing will has been stored in the fireproof safe or when the last time the beneficiaries on retirement accounts or life insurance policies were reviewed. One client was amazed to realize that she once provided for her 16 year-old nephew as a beneficiary of her life insurance. Since she last reviewed beneficiaries the nephew had become a successful businessman with a net worth greater than hers.

This story underscores the need to review beneficiary designations periodically as part of your estate planning process. It is also important to review the laws that pertain to beneficiaries in order to maximize the value of the estate left to the heirs.

Retirement Accounts and Life Insurance

Retirement accounts include IRAs, Roth IRAs, and SIMPLE IRAs. Beneficiary designations for retirement accounts are kept on file with the plan administrator, plan trustee or the account custodian and life insurance beneficiaries with the insurance company. While only a single beneficiary is needed, retirement account or life insurance policy owners are allowed to specify multiple beneficiaries, usually indicating what percent of the account proceeds each beneficiary is to receive. An alternative approach is to create a hierarchy of beneficiaries should the first beneficiary die before inheriting the account.

An important point is to maintain accurate records of not only your beneficiary designations but also the address of the plan administrator, insurance company or online resource for managing beneficiaries in order to process any changes in beneficiary designations.

Employer-sponsored Retirement Plans

Most employer-sponsored retirement plans require that the spouse be the primary beneficiary of the plan. The spouse must provide a signed and notarized form that he or she approves the naming of a different beneficiary for the retirement plan. If set up correctly secondary beneficiaries are allowed and become the beneficiary upon the death of the spouse.

It’s important to notify the plan administrator of beneficiary changes when marital status changes through divorce or remarriage. Various laws govern the distribution of employer-sponsored retirement plans when there are multiple marriages involved.

Non-retirement Accounts

Ordinary savings accounts or any form of brokerage account do not provide for the naming of beneficiaries. However, the account can be left to a beneficiary outside of a will and probate by setting up a “Payable-on-Death” (POD) registration for the account.

Estate planning is an ongoing process and includes reviewing not only a will but all beneficiary designations on a regular basis.

Larry Parman
Attorney at Law

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

Are your assets protected from creditors, lawsuits and divorce settlements? If not, you should speak with your attorney about a plan to protect your financial assets and property. Protection is important to ensure you have funds for retirement and that your loved ones have a place to live after your death.

So when is it too late to protect your assets? It is too late if you already have a chance of having your items taken.

Creditor Judgment

If you owe money and that creditor has gone to court and has a judgment against you requiring you to pay that debt either with funds or property, it is too late to protect your assets.

Problems With Promissory Notes

If you owe money to a bank – anyone for that matter – and they have given you a notice of default it is likely too late to engage in effective asset protection. The more challenging question deals with asset protection steps you take if you only “anticipate” legal action.

Negligence Lawsuit Pending

If you suspect someone may try to sue you for an act of negligence it is already too late to defend your property. Whether a lawsuit is just a possibility or an actuality, any unprotected assets may be eligible for use to settle that case if you do not win.

Divorce Pending

If you have a divorce pending, it is too late to protect your assets. Any property at this point is considered marital property and will be divided according to the judge’s interpretation of state law. If you try to hide assets, you may lose them if you are found out.

What Happens

If you try to protect assets when it is too late you could get in legal trouble. If a judge determines that you have illegally protected assets, he or she may reverse that protection status and allow your belongings to be taken to settle the suit against you. You may also be found guilty of fraud.

To avoid this, you should begin shielding your assets before you ever suspect a reason to do so. Your attorney can help you safeguard your property and finances during the Advance Estate planning process.

Larry Parman
Attorney at Law

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.

Asset protection is the fortification of your financial and physical assets to keep them from being taken by a creditor or to settle a lawsuit against you. If you want to protect your assets, you must plan in advance. If you anticipate a lawsuit against you, you are already too late. Asset protection is also off limits if you currently have a lawsuit in court or a creditor has a judgment against you.

If you transfer an asset to a third party or another entity when you already owe a creditor or if you are dealing with a lawsuit, your transfer may be deemed as fraudulent by a judge. In this case, the judge may reverse the transfer and your asset may be used to pay your creditor or for a lawsuit. The best time to protect your assets is before trouble arises.

Protecting your properties and making them off limits to lawsuits or creditors can help you save your home for your family to use after your death. Asset protection can also keep jointly held accounts safe from being taken to pay one beneficiary’s debts.

You can use asset protection to safeguard money for your retirement years. Many elderly face large medical bills in their later years. Make sure your money and property cannot be taken away from you when you need it the most.

Protecting your assets is part of advanced estate planning. You can begin the protection process by speaking with your attorney about which of your assets are already exempt from collection and which items are still unprotected. Once you determine what items need to be sheltered, your attorney can help you come up with a plan to safeguard those items. Some common asset protection plans include Family Limited Liability Companies or Irrevocable Living Trusts.

Larry Parman
Attorney at Law

Parman & Easterday are members of the American Academy of Estate Planning Attorneys.