Top Five Reasons to Review your Estate Plan

October 27, 2011 by · Leave a Comment 

By Adil Daudi, Esq.

A very common question asked by many is, “I have an Estate Plan, but how often do I need to make changes to it, or review it?” I have witnessed clients having their estate plan completed over fifteen years ago and have not reviewed it once. This is definitely not the recommended approach.

Drafting an Estate Plan is essential for all families, whether you are single, married, or married with kids; but, reviewing those documents on a consistent basis is just as important. If you established a plan ten years ago when you were married, you could find yourself now having three kids with the same plan, but the consequences could be significant; because at the time of the drafting you didn’t include any kids (since you didn’t have any), but now by not having done a review, your plan still does not make any mention of your kids – not what you initially planned out.

That is why it is always important to have a sit-down and take the time to go over your Estate Plan and make sure it still fits your primary objective. The following is a list of tips that will help you decide whether it is time for you to review your Estate Plan.

No Kids/Young Kids – A review is a must if at the time you drafted your Estate Plan you had no kids, or your kids were relatively young (under the age of 18).

New Grandkids – If at the time of your Estate Plan you had no grandkids, but if you find yourself with grandkids, and would like to leave something for them, you should definitely have a review of your trust.

Difference in Wealth – Significant changes in your personal wealth also plays a role in your overall Estate Plan, as there could be new strategies/goals that would better suit your current situation.

Marital Status – If you had a change in your marital status (married or divorced), then a review of your plan is important, as you may need to include and/or exclude certain individuals.

No Review for Two Years – Some may find this too early, but through experience it is found that over a course of two years, a lot changes for families, whether it’s dealing with new kids, grandkids, change of wealth, or personal preferences. Therefore, it is advisable to make sure you complete a review at least once every two years.

One issue many have with this is that the Attorney they completed their plan with charges for the reviews. For anyone looking to draft an Estate Plan, always make sure the law firm you proceed with explains their fees (not just for the actual drafting, but for any changes that may be needed, or for follow-up meetings). Many firms charge less for the Estate Plan, but make-up the cost by charging for meetings and changes, which more often than not, is not properly explained to the client.

Adil Daudi is an Attorney at Joseph, Kroll & Yagalla, P.C., focusing primarily on Asset Protection for Physicians, Physician Contracts, Estate Planning, Shariah Estate Planning, Business Litigation, Corporate Formations, and Family Law. He can be contacted for any questions related to this article or other areas of law at adil@josephlaw.net or (517) 381-2663.

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Ladybird Deeds

September 8, 2011 by · Leave a Comment 

By Adil Daudi, Esq. 

house_deedAvoiding probate is (or should be) a main objective of all estate plans.  By avoiding probate (a systematic distribution of assets, which is beyond our clients’ control) our clients have the power to determine how their assets will be distributed upon their death.  There are many tools available to accomplish this aim; one such tool is the ladybird deed.  It should be noted that ladybird deeds by themselves are insufficient to avoid probate; however, if used in conjunction with other probate avoiding tools, such as trusts and pour-over wills, our clients can successfully avoid probate.

What is a ladybird deed? 

To understand what a ladybird deed is, it is essential to know what a deed is.  A deed is a legal instrument that transfers an interest in real estate.  The most common type of deed is a “fee simple” deed.  A fee simple deed conveys property from Person A to Person B.  Once signed and delivered, Person B immediately becomes the owner of the real estate.  Unlike a fee simple deed, a ladybird deed does not immediately convey the property.  A ladybird deed conveys the property to another person but reserves ownership to the grantor (the person who conveys the property) for so long as the grantor is living.  For example, if Person A executed a ladybird deed to Person B, Person A would still own the property until Person A dies; at which point, Person B becomes the owner of the property. 

In addition to remaining the owner of the property until death, the grantor of a ladybird deed reserves the right to sell, mortgage, or transfer the property during their life.  So if Person A executed a ladybird deed to Person B, Person A could still sell the property or give it to someone else.  Ladybird deeds thus avoid probate by designating the person to whom the property will be distributed upon the grantor’s death.  If a ladybird deed (or other deed) is not in place, the property would be subject to probate. 

Ladybird deeds are not always the appropriate solution to avoid probate.  Choosing the wrong deed or using it at an inappropriate time may have significant negative consequences.  Moreover, there are many tax, Medicaid, and other implications associated with deeds; as such, qualified attorneys create each estate plan on a case-by-case basis based on the specific facts and situations of each client. 

Adil Daudi is an Attorney at Joseph, Kroll & Yagalla, P.C., focusing primarily on Asset Protection for Physicians, Physician Contracts, Estate Planning, Business Litigation, Corporate Formations, and Family Law. He can be contacted for any questions related to this article or other areas of law at adil@josephlaw.net or (517) 381-2663.

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Miriam Khan on way to Olympics

September 1, 2011 by · Leave a Comment 

MiriamKhanEwing, NJ– Miriam KhaN is used to achieving her goals in a matter of seconds. Since graduating from The College of New Jersey, however, the path to her prized objective is not a sprint race, but rather a battle of endurance and will.

Khan, who was the 2010 NCAA Division III national champion in the 100-meter event, has been training all summer with a single finish line in mind: the 2012 Olympic Games. She is in the process of obtaining her dual citizenship from Italy and is vying to represent her mother’s native country in London next summer.

“My training has gradually increased since the end of June,” noted Khan, who battled pneumonia in May and June and is finally back to full strength. “My workouts have been very good and I finally ran a decent time (in Long Island).”

That ‘decent’ time was the second-fastest Khan has ever posted. She dashed to a finish of 11.74 seconds at the 2011 USA Long Island Track and Field Association Open Championships. She was just a blink off of her TCNJ record-time of 11.67 seconds, a mark Khan set while winning the national title in Berea, Ohio.

Khan is hoping is to attract sponsorships to help offset the cost of travel, training, and entry fees. Her plan is to compete in meets in Europe next summer prior to the Olympics.

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