Administrative Agency Cases Require Special Attention

Many people involved in a case before an administrative agency do themselves a disservice by not hiring a lawyer. They assume that because the procedures are informal, they can just as easily present their case as a lawyer. Even before an administrative agency, however, lawyers are vital.

The most important thing to do before an administrative agency is to make a record. That is the case is decided on the testimony, documents and other information submitted to the agency. This is the record. Often, administrative agency cases involve highly technical subject matter. A person before the agency maybe an expert. But, he or she should not assume everyone else is. Thus, it is vital to submit documentation to back up your case. An experienced lawyer knows how to make a record. Indeed, an experienced lawyer will understand that the case could go to court, where the judge will not be a technical expert. Putting enough evidence on the record to convince a judge is key.

Next, people are often anxious to state their case. But, they may not realize that there words can be misinterpreted. A lawyer can help select the right message and be careful in word selection.

Finally, a good lawyer will research the law and learn how to set up the legal arguments.

So, if you find yourself in a case before an administrative agency, you should invest the resources to find an experienced lawyer to help you.

Non-Probate Assets Are an Important Part of Your Plan

This article reminds us of how important it is to make sure you are naming your beneficiaries properly. Pay on death accounts or accounts with a death beneficiary are an important part of your estate plan. They are meant to pass property, such as life insurance proceeds, or retirement accounts, without the need to go through the probate court. But, since they are not governed by the court, you need to make sure that you are naming your beneficiaries properly.

For example, when I have a couple with young children, I normally recommend a living trust as the corner stone of the estate plan, so money can be managed for the children should the parents meet an early demise. But, for most young couples, their "wealth" will be held in pay on death accounts like life insurance. For the plan to work, the couples have to change their beneficiaries to the trust.

Likewise, it is important on major life events to change the beneficiaries of the accounts. Such events include a marriage, a divorce, a death in the family, or some similar event. It is a good idea to review the beneficiaries regularly to make sure your estate plan is working the way you intend it to work.

Young Families Need a Good Plan

Estate planning is not just for more established people, who want to direct who gets their money. Families with young children have special reasons to plan. Parents need to plan to make sure that their children are protected and cared for.

Your estate plan is not just about money. You can name whom you want to act as the guardian of your minor children should you meet an early demise. This avoids leaving the decision entirely to a judge who knows nothing about you. Your estate plan can include instructions to your child's guardian on how you would want your children raised, and what values are important to you.

For a young family, a good estate plan should also include a method to manage money until the child reaches an age when he or she can be more responsible. This is often done through a trust, which can act as the beneficiary for insurance policies and retirement accounts. You can appoint a trusted person to manage the money, and instruct that person to cooperate with your child's guardian.

Young families should contact an attorney early, and make sure that their children are protected.

Even Those With Less Than $1 Million Need to Plan

This article explains what estate planning is, and why even those without $1 million need to plan. For Virginia residents, anyone with more than $50,000 in assets needs to plan. I have seen estates worth around $100,000 incur over $10,000 in estate administration costs. Spending $2,000 or less to consult with a lawyer can save both the expense and the hassle.

Article on Why Women Need to Do Estate Planning

More and more of the clients coming to me to consult about estate planning are women, which I think is a good sign. Whether it's to plan after a divorce, to protect from the credit problems of a spouse, or just to make sure that minor children are protected in the event of something tragic, it is extremely important that women explore their options and take action. This article in Forbes is a good explanation of the importance of estate planning.

The 25 Documents You Need Before You Die

The 25 Documents You Need Before You Die

Rethinking Living Trusts

Personally, I tend to think living trusts are oversold. Some attorneys, looking for fees, try to talk all sorts of clients into creating a living trust when the trusts may not be necessary or even appropriate.

The main purpose of a living trust is to avoid probate. Probate is the court proceeding to make sure a person's debts are paid, and then the remaining property distributed to heirs and legatees.

But, it may not always be advisable to avoid probate.

For example, in Virginia, when the only probate asset a person has is real estate, a living trust may not be the right answer. That is because the real estate passes automatically upon filing the will. There will be a probate tax of $1 per every $1000 of value. But, even if you have a $600,000 house, that amounts to $600 in probate tax, as opposed to a few thousand dollars to set up a living trust.

On the other hand, if a person has any appreciable amount of assets other than real estate, a trust may actually make sense and save the estate some money. That is due to the exorbitant filing fees due as the probate process progresses.

Probate starts with the filing of the will and qualification of the executor. There are fees associated with this, as well as the probate tax. But, then, the executor will be required to file an inventory, setting forth the assets of the estate. On an estate worth less than $100,000, the filing fee in Fairfax County for the inventory is $166.

After the inventory, the estate is well advised to request a debts and demands hearing, which involves a newspaper notice. This process can add a cost of about $300.

Then, the executor must file accountings. In Fairfax County,a first accounting of an estate worth between $50,000 and $100,000 will incur a filing fee of $416.

When you add fees for a lawyer and an accountant to all of this, you could easily find that probate will cost over $6,000 even if the assets are worth less than $100,000. Given this analysis, a living trust to avoid probate may make sense.