Adams & Edens, P.A. | Mississippi Probation Litigation Law Blog » Mississippi Estate Planning

Why You Need a Last Will and Testament

Jake Adams — Fri, 01 Jul 2011 17:30:57 +0000

So you may have listened to so-called legal experts or wanna-be attorneys who have suggested, in some form or fashion, that there is no need for “the vast majority of people” to create a Last Will and Testament. While this advice is immediately satisfying, you are wise to evaluate whether it is sound. First, no two legal or financial situations are alike, making one-size-fits-all advice suspect. Second, because our lives are fast-paced, hectic and often times frazzled, it is nearly impossible for individuals to cover every eventuality that life may bring our way. By creating a Last Will and Testament, individuals may rest comfortably knowing that the assets with which they have been entrusted will be distributed at death in a fashion of their choosing, not at the choosing of the state legislature.

Furthermore, couples with minor children are STRONGLY encouraged to create a Last Will and Testament that affords them the ability to select a Guardian responsible for raising their children in the event of an untimely death. And through a carefully crafted Last Will and Testament, parents with minor children are able to situate the assets of their estate in such a way that those assets are preserved and protected for the benefit of the children – without the necessity of future court intervention. Without a Last Will and Testament, the care of minor children following an untimely death will necessarily involve protracted and expensive court intervention. And that expensive court intervention could potentially last until the child reaches age 21.

So if you think there’s no need for you to create a Last Will and Testament, you might want to think again. Give the professionals at Adams & Edens, P.A., a call today to discuss whether a Last Will and Testament is right for your unique situation.

Estate Planning – For What?

Jake Adams — Thu, 05 Aug 2010 16:26:28 +0000

Estate planners and probate lawyers are anxiously awaiting Congress’s next move with regard to the estate tax. As many folks know, there is no estate tax in 2010. Heirs to billion dollar fortunes are making out like bandits if their benefactor dies in 2010 – kind of weird thing to read, isn’t it? But it’s true. Famous New York Yankees owner and billionaire George Steinbrenner died this year, and there have been others. One thought that’s been bandied about is that Congress could make the new estate tax retroactive to 2010. If this doesn’t put a rush on a probate I don’t know what will. Here’s a good update on the estate tax, where it stands now, and where it could go. Keep your local estate planner’s number handy. You may need it soon.

Prenuptial Agreements – An Important Estate Planning Tool

Jake Adams — Thu, 08 Jul 2010 14:39:03 +0000

One of the estate planner’s most important planning tools is a prenuptial agreement. Prenuptial agreements are especially important for those who are entering into second marriages with children from a first marriage, or where one of the parties has a substantial estate prior to the marriage. Prenuptial agreements are often used in second marriages for the purpose of ensuring that the estate is preserved for children and others. Statistics show that second marriages have a high rate of divorce, so the use of an effective prenuptial agreement lessens the risks involved in entering into another committed relationship. Prenuptial agreements are also a valuable tool for ensuring family businesses stay in the family.

Important Tips for an effective prenuptial agreement:

1. For reasons that should be obvious, don’t wait until the day before the wedding to discuss the prenuptial agreement.
2. Discuss the prenuptial agreement with each other openly.
3. Discuss all of your assets with each other, as full disclosure is necessary for a valid prenuptial agreement.

Many people do not get prenuptial agreements because they believe it only increases the likelihood the marriage will fail, however, this is a cynical view of marriage. After all, marriage shouldn’t be about assets. For most of us, marriage is about love and commitment. If the only tie that binds is the thought of splitting assets, that’s not a commitment. Oftentimes, a prenuptial agreement is the only truly responsible way to enter into marriage.

Estate Tax Update

Jake Adams — Tue, 09 Mar 2010 14:59:33 +0000

For those of you out there wondering just what is going on with the estate tax right now, here’s a good article by Kathy Kristof with a synopsis of what’s happening with the tax and what you might expect in the future. With these fluctuations in the estate tax, now is the time to plan your estate. If you already have a will, visit an attorney and review it to make sure your estate is protected for 2011!

Estate Tax: Will They or Won’t They?

Jake Adams — Wed, 16 Dec 2009 15:32:18 +0000

Estate planners across the country are keeping an eye on Capitol Hill, where Congress is debating the future of the estate tax. The current estate tax exempts the first $3.5 million of assets from estate tax liability. In 2010 the estate tax will disappear completely, but if no action is taken the tax returns with a vengeance in 2011 at the much lower exemption rate of $1 million.

The current bet is that the 2009 rate with be extended at least for a year. Many in Congress would like to see the 2009 rate of $3.5 million per individual or $7 million per couple made permanent. A vocal group of Republicans would like to see the estate tax permanently repealed, but given their current minority status, that is unlikely. Here’s the latest from Bloomberg.com.

Th estate tax situation is obviously still developing, so stay tuned.

Ademption by Extinction

Jake Adams — Fri, 23 Oct 2009 22:04:16 +0000

A Will cannot bequeath property that the Testator does not possess. For example, if a Father decides to leave a house to his daughter by specific bequest in his Will, but then sells the house to someone else prior to his death, the bequest of the house to his daughter as contained in the Will is of no effect. This is what is known as Ademption by Extinction. See Welch v. Welch, 113 So. 197 (1927); Estate of Matthews, 791 So.2d 213, 218 (2001); Reddit v. Redditt, 820 So.2d 782 (Miss.Ct.App. 2002).

Ademption is a good reason to regularly review your Will and other estate planning documents, in order to ensure your plan will still be effective at your death. I usually recommend clients review their estate planning documents at least once a year.