If you are like most people, you want to make sure that you avoid the time consuming and costly process of probate. Below are some easy ways to make sure your assets are not subject to the probate process. After your death, this will allow your assets to be transferred more quickly.

Avoid probate with a payable-on-death account

Setting up a payable-on-death account can allow you to keep your assets out of probate. In order to set up this account, you will need to fill out a form at your bank. This form will name an individual who will inherit the assets, automatically, after your death.

While you are alive, this person will have no control over your assets. After your death, the person will be required to show proof of your death along with proper identification in order to get access to the assets.

Avoid probate by naming a beneficiary

When you open a retirement account, you are able to name a beneficiary. When you die, this person is able to claim the funds that are left in the account. You can name whoever you want as the beneficiary, however if you are married, your spouse may have rights to the funds. Take note of the following rules:
• If you have a 401(k) account, your spouse must agree (in writing) to your naming of another beneficiary, otherwise your spouse is entitled to the funds.
• Texas law allows couples to sign an agreement which makes some property community property. If any money was contributed to your retirement account while you were married, the assets remain community property which means your spouse has half ownership.
Avoid probate by with a fully funded revocable living trust
A fully funded revocable living trust avoids probate, along with its many other benefits such as disability planning, federal estate tax savings, and asset protection for beneficiaries.

If you have any questions about avoiding probate, consult with an experienced estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Summer is approaching, which means that not only will the weather get hotter, but you will probably won’t be thinking much about estate planning.   Before you get on that plane, train, or automobile, review your planning to make sure it’s up to date and meets your current intent.

Many people complete their planning and then never take a look at it again.  It’s important to review your planning on a regular basis.  It’s also a good idea to make sure that you remain organized.

Take a look at some of the following tips.  If you have any questions regarding your estate planning or if you’re unsure if you need to make changes, meet with an estate attorney.

• Take note of where your estate planning documents are located. Make sure that all documents are neat and organized.  All of your planning information should be kept together so you avoid losing pieces.
• Make sure that your trusted helpers and loved ones have copies of your estate plan.  This will allow you to have multiple copies in case yours become damaged.  It will also make it easier for your loved ones to access to your information, if needed.
• If it’s been 3-5 years since you’ve done your planning, now is the time to review your plan with your estate planning attorney.  Everyone should review and make updates every 3 to 5 years to make sure that the information is still accurate.  Your attorney can make sure that your needs are still being met.  You may need to update sooner!  Especially if you’ve experienced a life change such as remarriage or divorce!
• Take a look at your beneficiary designations.  Certain assets are distributed after your death based on the beneficiary designations that you’ve made.  In many cases, people forget about these important decisions.  Take the time to make sure that your retirement accounts and life insurance policies have updated beneficiaries listed!

If you have additional questions or if you’d like to review or update your estate planning, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

The aging process is often difficult for both elderly people and their children. Along with the medical complications and loss of capabilities, elderly people also face the difficult situation of losing their independence. Once an elderly person becomes unable to drive or operate a motor vehicle safely, bringing up the conversation about taking away the keys is a difficult, but necessary step.

Start with medical conditions.

If your parent has medical conditions or problems that impact his or her ability to drive, this is a good way to begin the discussion. Obvious medical conditions, such as visual or hearing impairments, as well as loss of muscle control, should prompt an immediate discussion about driving and what other options are available to the parents.

Follow-up with ride a longs.

If there are no obvious medical conditions impairing the parents, or the parent does not have to take medication that could cause a loss of driving ability, it’s best for adult children to ride as a passenger in the parent’s vehicle as the parents drives. This will allow you to determine if the parent’s age has resulted in a decline in driving ability. These declines are not always easy to determine, and it’s best to take regular drives with the parent and pay special attention to reaction times, coordination, and other important driving skills.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Question 1: How do I know I have a common-law marriage?

The idea of common law marriage is one of the more widely misunderstood legal issues around. Only a minority of states allows people to get married through common law, and in order to do so you must live in one of those states and meet very specific legal requirements.

Though the requirements differ slightly, to become married through common law you must be at least 18, agree to be married, and hold yourself out to the public as married. Simply living together for a certain amount of time will not make you married through common law in any state.

Question 2: Do common-law married couples have the right to inherit from one another?

Absolutely. There is no legal difference between a couple married through a ceremony and one married through common law. If you are a common-law married couple you have the exact same inheritance rights as other married couples do. This means that upon the death of either spouse, the surviving spouse has the right to inherit at least a portion of the deceased spouse’s property. How much you are entitled to inherit differs depending on the state in which you live.

Question 3: What if I separated from my common-law spouse?

While common law marriage exists in a small number of states, common-law divorce does not exist. Once you are married, whether by common law or through ceremony, you can only terminate your marriage if you are divorced or receive an annulment. Until then you are still espouses and retain your rights to inherit from one another upon the other’s death.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re a person of a certain age, the name Annette likely immediately brings images of a fresh faced Annette Funicello from her days as one of the original Mouseketeers on the Mickey Mouse Club. Ms. Funicello died on April 8th at the age of 70 after battling with multiple sclerosis for more than 25 years.

To a generation of baby boomers, Funicello was instantly recognizable. She began her life in the public spotlight in 1955 when, at the tender age of 12, she became one of the 24 original Mouseketeers. After the show was canceled she continued her career in movies and television after signing a contract with Disney. She starred in a series of beach movies with costar Frankie Avalon, such as Beach Party, Bikini Beach, and Beach Blanket Bingo.

She was also a successful singer, producing several albums including Italiannette, Hawaiiannette, and Dance Annette.

Yet despite her instant recognition and fame, Funicello had very humble ambitions. After marrying at 22 she became a homemaker and raised three children. Though she did make some minor appearances in film and television, her days in the public eye faded beginning in the mid-60s.

Ms. Funicello learned that she had multiple sclerosis in 1987, but didn’t reveal it publicly until 1992. Years later she established the Annette Funicello Fund for Neurological Diseases.

Ms. Funicello is survived by her second husband Glenn Holt, her first husband Jack Gilardi, as well as three children from her first marriage.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Tip 1: Start early.

As a single retiree you may not have a spouse, children, or grandchildren who can come to help you out as you get older. That’s why it’s important for single people to approach estate planning at an earlier stage than a lot of other people. Even if you take some small steps, such as creating a will or power of attorney, this can greatly help you should an emergency arise.

Tip 2: Don’t ignore your inheritance choices.

If you don’t have children or grandchildren to leave an inheritance to, that doesn’t mean you shouldn’t think about your inheritance choices. Your state has laws that will determine who inherits your property automatically if you don’t make your own choices. While these laws differ between states, they typically leave your property to your closest family members, such as your parents, siblings, or more distant relations. This means that even if you don’t want those people to inherit your property they will automatically do so unless you make the appropriate inheritance plans.

Tip 3: Be prepared to have others help you.

Most people, as they age, will require outside assistance at some point. If you can’t rely on your children or spouse you’ll have to make alternate arrangements. You can create powers of attorney to delegate your decision-making responsibilities, create a Medicaid plan in preparation for moving to an assisted living facility, or take other steps to ensure that adequate help will be available when needed.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Many people who created an estate plan years ago didn’t, at that time, have the same goals and needs that they do today. One common issue many estate planning attorneys are having to deal with is when a client comes into their office and asks about what they can do to protect a pet.

Pets planning makes caring for your pets an integral part of your estate plan. If you have acquired a new pet or are concerned that your plan doesn’t adequately cover your pets, here is what you need to know.

Pet Trust

In most situations it’s best to create a pet trust that will allow you to set aside some money or property specifically for your pet. Because pets cannot own property the trust is there to look after the pet’s needs and appoint someone, known as a trustee, who will use trust property to pay for any pet related expenses after you are gone.

Caregivers

When you create a pet trust you will also appoint someone who will act as the new pet owner, known as a caregiver. Even though the caregiver cares for the pet, the caregiver doesn’t usually act as the trustee. The trustee will be someone else who will be able to not only compensate the caregiver for any pet expenses using trust property, but who will also be able to replace the caregiver should he or she not be able to provide adequate care.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

A new study published in JAMA Internal Medicine shows that America’s aging baby boomer generation, though living longer than previous generations, is also a lot unhealthier than elderly people have been in the past.

The study shows that the boomer generation, people born between 1946 and 1964 who are currently reaching senior citizen status at a rate of 10,000 per day, are at a higher likelihood to suffer from diabetes, high cholesterol, and high blood pressure than their parents and grandparents. Boomers are also far more likely to suffer from obesity and less likely to engage in regular exercise.

All of this casts a bleak picture on the possibility of trimming future healthcare costs. The longer life expectancies that boomers enjoy because of advances in medical science are largely being offset by many of their lifestyle choices.

Americans spend about $150 billion on medical costs associated with obesity, and another $177 billion on costs associated with diabetes, and those numbers are likely to increase as the generation continues to age and suffer from chronic diseases.

Researchers also say, however, that many of the health problems associated with aging baby boomers can be treated or alleviated by engaging in regular exercise and adjusting their diets. Even starting with small goals, such as walking once a week and building from there, can accomplish a lot to not only increase a person’s lifespan, but also increase the quality of living.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Some people try to save money by making their own legal documents. This is especially true when it comes to powers of attorney because they often appear simple and relatively straightforward. While it is true that you can attempt to create your own legal documents it is never going to be a good idea. Here are a couple of reasons why.

Court Interpretation

If there is ever a situation when you need to use your power of attorney after you have become incapacitated, you will need to make sure the document is as clear as possible. Since you will not be around to testify, the courts will have to rely on the document to determine what your intentions are. People who do not have experience drafting these documents may not be familiar with previous court decisions about powers of attorney, and may not understand how a court will interpret your document.

Legal Language

There is some language or “magic words” that you will need to include in your power of attorney to make it legal. However, some other words are not required and may actually be counterproductive if you include them. For example, a lot of people use the word “heir” when creating a will or even a power of attorney. Unfortunately, this term is often very ambiguous and can mean different things in different situations. A good attorney will know what words to use and, sometimes more importantly, what words to avoid.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you have ever seen an episode of Downton Abbey, then you have seen the opulence in which the fabulously wealthy Crawley family lives out their lives. The ancestral home of the family is located on a large parcel of land in Southern England, and is richly decorated with lavish tapestries, gorgeous floral wall panels from Spain, and 17^th century masterpieces from Dutch painters. In other words, it is not too shabby of a place, if you’re the type of person that enjoys wanting for nothing. The problem that seems to plague the Crawley family is the incredibly inept way in which the family manages its wealth.

The current Earl of Grantham (and the family patriarch), Robert Crawley, may have saved the family’s fortune, or, at least, a significant portion of it, when he showed trustees that diversifying investments of the trust’s assets is the way to prevent catastrophic results. If one puts everything into one investment, ignoring one of the cardinal rules of sound investing, when that investment sinks, one will quickly find the trust’s beneficiaries to be a very unhappy lot. Any trustee wanting to avert such an unfortunate situation should spread out investments in such a way that the results will be great, should the investments pay off, but will also protect the trust’s principal, should they fail.

The deceased former Earl of Grantham also taught us that any estate plan should be thoroughly researched, and the likely results known, prior to making an estate plan, let alone an ironclad one with no room for amendments.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.