Louisville Estate Planning Attorneys
An estate plan is important for everyone to have at every stage of their adult life. Having a comprehensive estate plan in place protects your assets during your lifetime and ensures that your property will be distributed according to your wishes after you are gone. Equally important, estate planning can protect you if you ever become physically or mentally incapacitated and unable to care for yourself or your financial affairs, even for just a brief period of time.
At John H. Ruby & Associates, we take the time to sit down with you and understand your needs and goals. We provide the advice and assistance needed to create a complete estate plan that addresses all of your concerns and makes sure you and your family are protected now and into the future.
Estate Planning for Baby Boomers
Baby boomers own nearly 53% of the wealth in the country, which is ten times more than the wealth held by millennials. And studies show that the total value of wealth owned by baby boomer households in the country could be anywhere from $59 trillion to $68 trillion. But despite having such a staggering amount of wealth in their control, nearly 42% of baby boomers do not have an estate plan in place.
If you belong to the aforementioned 42%, there are four reasons why you should put together an estate plan as soon as you can:
The Cost of Long-Term Care is Rising Rapidly
The average cost of long-term care at a private facility is estimated to be around $90,000 per year (for a semi-private room) and more than $100,000 per year (for a private room). The average cost of a home health aide and/or homemaker services can be as high as $50,000 per year.
An Estate Plan is the Best Way to Avoid Probate
The threshold for probate in Kentucky is much lower compared to most other states in the country. If your estate is valued at $30,000 or more, you need to have an estate plan which clearly instructs how your assets should be managed or distributed after your death. Otherwise, it will have to go through probate after your death.
Guardianship for Your Dependents
If you have children with special needs and minor grandchildren who are dependent on you, you can designate a guardian for them, set aside the assets you want to pass on to them, and put them all in a trust to make sure they are provided for even after you are gone. You can do the same for your pets as well.
Financial and Healthcare Powers of Attorney
A financial power of attorney allows you to authorize a trustworthy person to act on your behalf and make financial decisions in the event of your incapacitation. It can make sure your hard-earned wealth is managed by someone you trust, not someone chosen by the court.
Estate Planning for Millennials
If you are a millennial, creating an estate plan is probably not at the top of your to-do list. You are not alone, as many of those who are in their 20’s and 30’s believe that they are too young to think about estate planning. The truth, however, is that estate planning is not just meant for aging individuals.
It is commonly perceived that you need to be either rich or old to start thinking of an estate plan for yourself. Although most people do not think of having one, due to this misconception, an estate plan is important even if your assets are modest and you are still young.
If you are in your 20s or 30s, you must consider estate planning and preparing documents like health care and financial powers of attorney, and living will. Let us discuss estate planning in a little more detail so that you have a better understanding of your needs as well as the options available to you.
As someone who grew up in the digital age, you likely own a significant number of digital assets – from financial accounts to social media accounts to photographs and videos that are stored in the cloud.
What if the testator made the will by himself, and nobody was available to sign it?
Kentucky law recognizes the validity of what is known as a holographic will. This is a will which is written entirely in the testator’s own handwriting, including signature and date. A holographic will can be admitted to probate, although the court may need to call in a witness who is familiar with the testator’s handwriting to testify that the will is written in the testator’s own hand.
Is it better to have a will or a trust?
A trust can accomplish some of the same actions as a will, such as distributing property after death, although the trust does this in a different legal fashion. The main advantage of a trust is that property in a trust does not have to go through probate. Also, a trust document is private and confidential, while the contents of a will become a matter of public record when the will is submitted for probate. It is also more difficult to challenge the validity of a trust than it is to contest a will. It is certainly worthwhile to consider having one or more trusts as part of your estate plan and to talk these matters over with your estate planning attorney. You will still want to have a will to do certain things a trust cannot and to make sure all of your property is accounted for and disposed of according to your wishes.
If you are the parent of a minor child, you most likely appointed a guardian in your will who will assume your parental duties if you die before your children are grown. If you have not provided for a guardian through your will, the court may appoint one of its own choosing. In either case, disputes may arise, and legal representation may be necessary, where a designated guardian is challenged or another party feels more fit for appointment.
Plan for Incapacity with Powers of Attorney
A comprehensive estate plan will also provide for your care in the event you ever become physically or mentally incapacitated due to illness or an accident, and you become unable to care for yourself or make your own health, financial and legal decisions, even for a short period of time. Through a combination of living wills, advance healthcare directives, and powers of attorney, we help ensure that the decisions affecting you are made according to your expressed desires by people you trust.
There are several aspects to estate planning that we assist with. They are the following:
- Asset Protection
- Elder Law
- Medicaid Planning
Protect Your Assets
Chances are you worked hard for all that you have acquired in life, which is why is it important to ensure your assets are protected. Whether you are an individual or a business, at John H. Ruby & Associates we have extensive experience helping clients protect their assets from future creditors and civil judgments.
There are some assets, however, which are exempt from creditors, such as:
- Homestead and burial plot
- Life insurance proceeds, including group and health insurance
- Proceeds under an annuity contract
This list is not exhaustive – we encourage you contact us to learn more about which assets are vulnerable and need to be protected.
Asset Protection for Businesses
A Limited Liability Company (LLC) shields business owners from personal liability for the debts of the business. To form an LLC there are certain legal formalities that must be followed. The most important step, however, is filing the articles of organization with the Kentucky Secretary of State. The articles of organization contain:
- The name of the company
- A registered office and agent
- An address for the company
- A statement setting forth the company’s management structure
There are many other requirements that must be met to legally establish your LLC to ensure proper protection of your assets.
Family Limited Partnerships
A Family Limited Partnership (FLP) is a family-owned investment-producing entity. As a limited partnership, there must be general and limited partners. An FLP protects family assets from creditors and, unlike an irrevocable trust, an FLP may be amended.
Forming an FLP in Kentucky requires an organizational document or agreement that must be provided to the State. Because these documents can have legal ramifications, it is important to seek the advice of knowledgeable counsel.
Breach of Fiduciary Duty
A fiduciary is a person who is under a legal duty to act in the best interests of another party. Trustees, executors, and guardians, for instance, are all considered fiduciaries under the law as they are obligated to act for the benefit of another, be it the beneficiaries under a will or trust, or a minor whose legal needs must be looked after.
Fiduciary duties include the obligations to act in good faith, to be honest, to invite confidence and trust, and to be loyal. A breach occurs when the fiduciary acts in any way adverse to these duties – conflicts of interest and acts of dishonesty by the fiduciary are the most frequent examples of what constitutes a breach. The probate setting is especially ripe for breaches of this nature to occur; our firm makes sure any such breaches are remedied appropriately.
Get Help from Caring and Experienced Louisville Estate Planning Attorneys
Creating an estate plan requires you to consider the things that matter most to you and make important decisions about them. We can help guide you through those decisions and draft the legal documents necessary to make them a reality. If you already have an estate plan, we can review it and make any changes when your needs or goals change. In Jefferson and Oldham counties, contact John H. Ruby & Associates in Louisville for advice and assistance from knowledgeable, caring and experienced Kentucky estate planning attorneys.