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Burkhardt Law

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End of Year: Time to Review your Estate Planning Documents

With the holidays quickly approaching and the year coming to an end, it is a good time for reflection.  Many of us take some time at the end of the year to reflect on the prior year and evaluate goals we set out for ourselves the prior year and goals we hope to accomplish next year.  This is a great time to pull out your Estate Planning Documents and give them a review.  Do your documents still meet your estate planning goals or have your goals changed?

Look at who you have named as decision makers in your estate planning documents.  If you have a Trust, this would be the individuals you named as Trustees.  If you have a Will, this would be those individuals you named as Personal Representatives.  If you have a Financial Power of Attorney, this would be those individuals you named as your attorneys in fact.  If you have a medical power of attorney, this would be those individuals you named as your agents. Are you still comfortable with those people as your decisionmakers?

Perhaps your estate planning documents were drafted many years ago and you named a brother or a sister who have since developed medical or mental health issues that might affect their ability to make decisions for you and you would like to appoint a different person to make decisions.  Or maybe when you drafted your documents your children were minors so they were not named as decision makers, and now they are older, you trust them, and you would like them to make decisions now instead of those other relatives.  Perhaps you named a son-in-law as a decision maker and now your daughter and son-in-law have gotten divorced.  Perhaps you yourself have gotten divorced.  Perhaps there has been a death in the family.  A review will let you reflect on if you are still happy with the decision makers you chose or if maybe its time a change is needed.

Next, I would take a look at your Beneficiaries.  Take a look at your Trust or Will and make sure your beneficiaries named are still the people you want to inherit from your estate when you are gone and that those beneficiaries will inherit in the way you intend.  Perhaps there has been a birth.  If you now have grandchildren that you hadn’t provided for and now wish to do so, you may need to make changes to your estate planning documents to include them.  Perhaps you have had a falling out with a beneficiary and you no longer wish for them to inherit anything.

You may want to keep the named beneficiaries the same as they are, but maybe you want to change how and when they inherit their share.  Maybe your adult child has had relationship issues and you now feel like you need to protect them from themselves or a divorce.  Maybe now instead of them receiving their share outright upon your death, you want it to be held in trust and only distributed to them in small amounts over time.

Once you have determined who the intended beneficiaries are it is important to review your assets.  If you have a trust, you will want to be sure the trust is funded with your assets.  Review bank accounts, brokerage accounts, insurance policies, etc. to be sure the trust is the owner or beneficiary on those accounts.  Make sure you have a TOD (transfer on death) to the Trust on any vehicles.  If you have purchased a new home or refinanced, are you sure your home is still titled to your trust?  If you have a Will, you will be relying on beneficiary designations on your assets to avoid those assets going through probate.  Be sure to review all assets to be sure they have beneficiary designations and that those designations are still what you want.  Vehicles should have a TOD, bank accounts should have a POD (payable on death), and all assets should have beneficiaries named.  If you have purchased a new home, be sure that a beneficiary deed is executed for the new real estate.

If a review of your estate planning documents indicates to you that changes are needed to your documents, you should contact an Estate Planning Attorney who can discuss those changes with you and assist you in making those changes.  An attorney may also suggest additional changes to your documents based on new laws.

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Refinancing with a Trust

Several times in the last year, we’ve had a lot of clients asking about refinancing a property that is held in Trust.  Although mortgage rates have increased from where they were a year ago, rates are still near historic lows and some borrowers may be able to save money by refinancing their mortgage. If you have an estate plan that includes a trust, it also probably includes a special warranty deed that transferred your property to your trust.  You may be wondering if you can refinance your mortgage on property that is owned by your trust.

Real estate held in a revocable trust often can be refinanced.  If the trust gives the trustee the power to mortgage the property, the trustee may be able to sign for the loan.  However, a lender may not be willing to refinance the property held in trust.  If this is the case, the lender may require that the property be taken out of the trust before refinancing.  They may have you sign a new deed transferring property from your Trust back to yourself.

But now comes the important part to ensure your trust is protecting the assets and avoid probate.  If you refinance be sure to review the deed prepared and recorded during that transaction.  If your home is no longer owned by the Trust after the transaction, it is important to contact an attorney who can prepare another Special Warranty Deed transferring it back to your Trust.  If this is not done and you pass away, your property will end up in probate, which is what you were trying to avoid when creating the Trust in the first place.  If you have any doubt at all, how the property was transferred after your refinance closed, an attorney can review to be sure it is still owned by the trust and if not assist you in preparing the deed to transfer title back to the Trust and avoid probate of your property upon your death.

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New Real Estate? Don’t Forget About your Estate Plan

During the Pandemic, many people changed the way they work and those changes may have made them rethink where their real estate.  Some businesses changed to a work from home model or a hybrid model of working from home some days and from the office some days.  These changes meant for some they could move further away from their office since they were going to work from home anyway.  Or maybe they were working from home a few days a week.  And some with school age children had to have their children learn virtually from home.

Last year my children went back and forth at different times of the year between all virtual, hybrid, and in-person learning.  My husband began working entirely from home and I was working a hybrid model of a few days at home.  Having 4 people in the house trying to be on phone calls or zoom calls at the same time could be loud and distracting.  My family had been living in a 3 bedroom home, my children’s bedrooms were too small to add a desk, my “office” was set up in our master bedroom, and my husband’s “office” was in the basement but was in an open space with no door to close.

We decided we needed more space in our real estate.  We needed to be able have separate work spaces where we didn’t have to hear each other’s calls and could have quiet to concentrate on our work.  Like many people, who were suddenly spending more time at home, we decided if we were spending so much time at home, we needed more space.  We decided to move into a larger home where I now get my own home office that is not in my bedroom.  I can close the door from the distractions.  My husband also is now able to have his own office as well with a door he can close. My husband spends the majority of his days on phone calls and prior to us moving he constantly had to tell the kids to be quiet.

If you have also moved recently or plan on doing so soon, don’t forget to think about your existing estate plan.  If you have a Trust you may want your Trust to own your real estate.  If you already purchased your home and it was not put in the name of your Trust you should think about calling an attorney who can prepare a Special Warranty Deed, to transfer the ownership of the home from you to your Trust.

If you haven’t already moved but plan to soon and have a Trust, the closing company preparing your new deed should be able to do this.  Just make sure you inform them when completing the closing paperwork.  Some mortgage companies will not allow you to put the deed in the name of the trust at closing.  If this is the case, an attorney should be contacted to transfer the property after the mortgage closing.  If you don’t have a trust and your estate plan consists of putting beneficiary designations on all your assets to avoid probate upon your death, you should contact an attorney after closing to prepare a beneficiary deed for your real estate.  This will allow your real estate to pass to the beneficiaries of your choosing and avoid the need for Probate.

-Lisa Villareal

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A Little Late is Too Late for an Estate Plan

As I prepare for my third child and an expected two months of maternity leave, I’ve been getting a lot of calls for immediate or last-minute help.  While I love helping when I can, often my schedule prevents me from preparing legal documents last minute, especially right now.  A full estate plan normally takes six to eight weeks to complete.  And on top of that, with something so important, I really don’t believe it should be rushed.

Now, in the 10 or so years I’ve been practicing, I’ve had to pass on my condolences to several families.  But the worst scenarios, which I’m grateful, have only happened two or three times, is when we’ve lost a client after beginning their estate plan, but before they can sign.  Unfortunately, if a legal document is not signed, it’s unenforceable.

We often will also get phone calls from an individual’s family about the individual needing an estate plan.  However, after a few questions, we find out the person is no longer able to sign.  If a person already is not capable or aware of their surroundings, a totally different process is needed, and an estate plan or power of attorney is simply not possible.

These are truly some of my least favorite calls to receive because there often isn’t much we can do.  So, as you think of an estate plan, don’t wait because if something happens (i.e. your attorney goes out on maternity leave) and an emergency comes up, there may not be time for creating or updating legal documents.

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Graduation Season – A Time to Plan for the Future: Power of Attorney

It is graduation season!  For many parents, graduation season is in full swing.  You may have a high school or a college graduate.  Graduation ceremonies may look a little different this year due to COVID-19 regulations and policies in place at different schools.  However, it seems like many schools have found ways to celebrate their graduates even if it looks a little different this year.  Congratulations to you and your graduate.  Graduation time is a time of reflecting on all a student has accomplished up to that point but also a time for looking towards and planning for the future.

This is a great time to talk with your graduate about the importance of planning for their future, including a discussion about estate planning for the graduate.  Many graduates are above the age of 18, meaning that legally mom and dad cannot make all the same decisions for their child as they could when they were a minor.  This summer would be a perfect time to set up a free consultation with an attorney regarding financial and medical powers of attorneys.  Without properly executed powers of attorneys, parents may not be able to access their children’s medical records or assist in making medical decisions in an emergency.   Parents would also not be able deal with financial decisions or sign legal documents on their child’s behalf without financial powers of attorney.  So while your celebrating graduation and preparing for the next chapter whether that be preparing to start college or entering the workforce, I recommend meeting with an attorney to discuss powers of attorney for the new graduate.

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What is the Best Estate Plan? Different Estate Planning Options

Often when I help clients form an estate planning options, they need to decide if a trust is the best for their loved ones.  And for many reasons the trust can be the best option.  However, what’s right for one client may not be the best for another.

I was just speaking with a client yesterday and their estate planning options were either beneficiary designations or a trust.  Both had benefits and disadvantages.  The client wanted to know which plan would be best for them.  In the end I recommended a trust because they had multiple children.  However, a trust isn’t automatically “better” than another plan. While a trust has many advantages and many great reasons to use one, a trust can make things more complicated.

For very simple estate plans, i.e., there’s one adult beneficiary who’s good with money, the appeal of using beneficiary designations can be the simplicity.  A trust upon someone’s death often requires a new tax ID number, separate tax filings, and can require interpretation or assistance in making sure all the terms are met.  Beneficiary designations, on the other hand, only require a death certificate. So, a trust can be overly burdensome, especially for simple plans where the people involved may not have a lot of experience with legal documents.

However beneficiary designations have a lot of downsides.

  • First, you have no control after you pass. The money goes to the beneficiary and that’s it.  You can’t tell them what to do or not do with it.  If you have minor children or someone who is bad with money, even just wanting something specific with real estate, beneficiary designations may not be a good plan for you.
  • It’s also much harder to plan for contingencies. Many beneficiary designations only allow a primary beneficiary.  So, if something happens to that primary beneficiary and you don’t (or can’t) update your plan, that asset will end up in probate.
  • Another major problem is that there’s no one person in control. Each beneficiary receives their share, so any expenses that are paid are paid by an individual, not the estate or by everyone.  That person then needs to work with the other beneficiaries to pay bills and make sure everyone pays their share.

So, when deciding between estate planning options, there’s advantages and disadvantages to trusts and beneficiary designations.  It’s best to evaluate your options, knowing the good and bad of all possible estate plans, then choose based upon your family and which path will be easier for your loved ones.  Maybe that’s simple beneficiary designations or maybe that’s a trust.  A good estate planning attorney can help you explore all the estate planning options and help decide what’s right for you.

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Planning for Pets – Burkhardt Law Firm

I know so many people who with more time at home during the pandemic have adopted a new pet.Villareal Dogs

Maybe its their first pet, or maybe it is an additional pet for the family. For many people, they love their pets so much, sometimes as much as their human children.  I know my in-laws have 8 dogs, all poodles and chihuahuas (well I think it is 8, I can’t keep track as they are always rescuing more all the time, so hard to keep track) (pictured are two of their furry children), and pretty sure they love their pets as much as their children.  They barely leave town because they have so many dogs to care for.  We have to go to them to visit because they just can’t leave their beloved dogs.  So what would happen to their dogs if they could no longer handle their own finances or if they passed away?  Many times when a pet owner passes away, their pets end up in a shelter and sometimes end up being put down.  Did you know when you’re planning for your estate that you can also plan for your pets?

You can plan for your pets for when you’re still living but just not making your own financial decisions.  If you have a financial power of attorney executed, naming someone you trust to make financial decisions for you when you are no longer able, you can grant your agent the power to take care of the financial expense of caring for your pets.  We draft our documents to include the power for your agent to pay the costs and expenses associated with the care of your pets.

Planning for your pets after you pass is also possible.  Some clients choose to include provisions in their trust that provide who they would want to care for their pets when they are gone.  They may list backup caretakers for the pets as well incase someone they chose is unable or unwilling to care for the pets.  We have even had clients designate who the Trustee should contact to arrange for the care of their pets if they can’t find a proper home for the pet or pets.  You can even have your Trustee distribute money to the pet’s caretaker to help cover the cost of providing care for the pets.

-Lisa Villareal

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A Time to Plan – Burkhardt Law Firm

As I sit and reflect on the last year, brainstorming for helpful topics, I’m left with one main thought.  It’s time to plan.  We’ve spent the last year much more isolated from friends and family, and, for many of us, faced with loss of loved ones or the reality of health issues.

This year, Burkhardt Law Firm has helped many families form plans and many people navigate probate when there was not a plan or when things fell through the cracks.  I’m always so grateful that our clients trust us with their loved ones and something that is rarely fun to discuss.  That being said, I see so many families put off making an estate plan.

One of the saddest moments in my job is when we have a client pass.  I hate losing someone I’ve come to know and learn about their lives and loved ones.  We’ve lost a few clients this year and my heart is truly with their friends and family.  And while losing a client is the sad part of my job, often it’s also rewarding in seeing those friends and family navigate the loss with grace and knowing that I made a difficult time easier.

On the other hand, we also get calls from potential clients’ families when they never took action and moved forward with an estate plan. This is truly the worst part of my job.  Telling someone, who is already suffering a loss, that we didn’t help the person who was passed.  Then that someone has to figure out what to do next.  Often, this involves probate.  And while I appreciate the trust in guiding someone through probate, I so wish we could have made a hard time easier by having helped with an estate plan.

My days are generally filled with conversations getting to know people and their loved ones.  I truly love my job, my clients, and my co-workers and am thankful for a different, but still great year.  I sincerely look forward to more of these conversations in 2021.  My wish for your and your loved ones is for a very Happy New Year.  And perhaps as part of that New Year, an estate plan or a update to your estate plan.

 

 

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Flexibility during a Pandemic – Burkhardt Law Firm

As we have endured this pandemic in the last several months, I am so grateful that we have not had to quarantine due to exposure and that none of my immediate family has experienced COVID.  That being said, I know at times my schedule has had to be more flexible with two little ones at home and myself and my husband still working full time.  This has required me to ask my clients to be more patient and flexible.  I sincerely dislike inconveniencing anyone and most specifically my clients.  As such, I wanted to extend a very sincere thank you to all of my wonderful clients who have had the grace to be flexible and patient in the middle of this pandemic.

This pandemic has changed the way many of us are living our lives and most of us have never lived through something like this before.  It may have gotten you thinking about what would happen if you got sick with this virus or some other illness.  Who would make medical decisions for you or financial decisions for you if you were not able?  You may be thinking that you no longer want to put off planning for those unexpected situations.  I know now more than ever, people are concerned about getting things in order, and we want to be here for you to help get your estate plan in order.  However, we want to help you do so in a safe manner.

Our normal process for estate planning involves three appointments. The first appointment is a consultation to learn about your family and assets and determine what documents you need to be part of your estate plan.  During the second appointment, the drafting appointment, we sit down and go over each of the documents in your plan in more detail to customize your documents based on your needs and wants.  After this second appointment, we prepare drafts and send them to you for your review.  This gives you time to go over the documents again and determine if any changes need to be made or if you have any questions.  Then, we have a shorter, final appointment to make things official with you signing your documents.

To reduce the amount of time you need to spend in our office, we are now offering video or phone call appointments for the first 2 meetings. This way, you can come to the office only one time, for the final appointment to sign your documents.  This is the shortest appointment.  We provide witnesses and a notary in our office who practice social distancing and wear face masks when meeting with clients.  In addition, we are giving more time in between appointments to allow time to sanitize any surfaces that clients touch.  We have sanitizer available as well as clean pens set out for each signing.

With cases across Missouri rising, we have suspended in person meetings as much as possible while trying to have remaining flexible to meet your needs.  By having the first two meetings done virtually or over the phone, we can still help protect you without having to delay getting the process started.

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Guardians – A Tough Decision for an Estate Plan

For a long time I delayed executing my own estate plan because I got hung up on one thing, but one very important thing, who would take care of my children if something were to happen to both my husband and I.  For families with minor children choosing guardians can be the most important and hardest decision to make when working on an estate plan.  When thinking about your will, you have to decide who you want to act as personal representative of the estate, who the beneficiaries of the estate will be, and who will be appointed guardian of minor children.  That last part can be the hardest, as it is so hard to imagine anyone replacing your role as mom or dad.  No one can truly replace you, but you can consider many things when making that difficult choice.

When we first started brainstorming guardians and who we wanted to raise our children if something were to happen to us, we thought of those whom we are closest with and also more importantly, whom our children are closest with.  We thought of my parents.  Although our children are also close with my husband’s parents, they live out of town and we don’t see them as often as we would like.  My parents live less than a ten-minute drive from us, so naturally my kids are vey close with them because we are able to spend a lot of time with them.  If something were to happen right now, I would love my parents to be there for the kids.  However, it is important to look further out.  Would my parents be able to care for the kids until they were old enough to be on their own?  With our parents getting older we didn’t know that we could answer yes to that last question.  Losing parents would be hard enough on our kids, and we would want to give them as much stability as possible, so we decided for us, our parents may not be a good long- term option.  With that in mind we were able to cross both sets of grandparents off our list of possible guardians.

Next, we looked at our siblings, our children’s aunts and uncles.  My husband and I each have two siblings, so this gave us four more options to consider.  How can you choose between sides of the family?  We considered everything from mental health, medical health, relationship history, financial responsibility, location, life- style choices, and again relationship between them and our children.  We ultimately ended up choosing the sibling who lives nearby, has children that are close with and close in age to our children, and even lives in the same school district as us, so that our children wouldn’t have to be uprooted from their school community.  That sibling doesn’t always make same the parenting choices I would, but ultimately, I know that my children would be taken care of, and would feel loved under their care as the guardian.

What I realized, was part of my delay was from not having what in my mind was the “perfect” choice for a guardian.  Because again, how can anyone replace me, as mom?  All the uncertainty of the current pandemic definitely gave me the urge to make a decision and get things in order.  You never know what is going to happen and having a plan in place will make things easier on everyone.  And although this kind of decision definitely warrants taking time to think about, it probably shouldn’t take 10 years like it took me!  Luckily, nothing happened to us during that time, but you never know and at some point you just need to make a decision.  Documents can always be redrafted at a later time if after further thought you change your mind.

-Lisa Villareal

Burkhardt Law Firm

Phone: (314) 518-1581
Email: mburkhardt@burkhardtlaw.com
Address:
2333 Grissom Dr., Suite 107
St. Louis, MO 63146