When planning your estate, one of your concerns may be how to avoid probate. If you are unprepared, probate can hold up your assets for months, or even years, leaving your loved ones without much needed funds. One tool that may be used when planning your estate is a “pay on death” account.

At your death, probate assets are frequently put on “hold” until a probate court authorizes their release to beneficiaries or heirs. A way to avoid this delay is by converting accounts to “pay on death” accounts.

A “pay on death” account accomplishes precisely what the name implies. When you die, the account is paid out to the beneficiary designated by you when you converted the account. Because the account has been converted to a “pay on death” account, the assets are not required to be included in your estate for probate purposes. However, by avoiding the probate process you also lose the benefits drafted into your estate plan for your beneficiaries. As such, consult with your Atlanta estate planning attorney before using a “pay on death” account and don’t rely on such accounts in lieu of an estate plan.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

 If you are one of the millions of Americans who consider your pet to be part of your family, will you likely wish to include him or her in your estate planning. Just as you make plans for who will take care of your children in the event of a tragedy, you can also make provisions for who will care for your pet as well as how that care will be funded. Creating a pet trust is a legal option which will allow you to know that your pet is well taken care of for his or her natural lifetime.

A pet trust requires you to appoint a trustee to take care of the administration of the trust. Your may or may not be the same person who has the day to day care of your pet. For example, you may feel more comfortable with your attorney or your bank handling the money aspects of the trust, but want a family member to care for your pet, then you may choose to set up your trust accordingly.

You are also required to fund your pet trust. How much money or assets you decide to place in the trust is your decision. Consider the life expectancy of your pet as well as the cost of keeping your pet in the style to which he or she is accustomed to living. Also take into account the fact that your pet will age and likely need additional care and medical treatment as he or she ages.

The terms of your trust can be as flexible or as specific as you decide. The funds will be distributed to the caregiver according to your instructions. You can choose, for example, to distribute the funds on a monthly or yearly basis with a provision that additional funds can be accessed for emergencies or extraordinary medical treatment. Talk to your estate planning attorney for specific details.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When a decedent dies, the assets of the decedent’s estate are often held up in a lengthy, and costly, legal procedure known as “probate”. If you have suffered the loss of a loved one, you should take the time to inquire regarding alternative options to formal probate. While state laws and procedures differ somewhat, most states offer some type of informal probate which, under certain circumstances, can drastically reduce the time and cost of the probate process.

Although the names may vary, most states refer to the less formal probate options as “small estate administration” or “small estate affidavit”. The degree to which these options lessen the cost and time factor involved in formal probate will also vary; however, in all cases they are worth investigating if you think your loved one’s estate may qualify.

Qualifying for small estate administration is often based on the value of the estate, type of assets owned by the estate and whether or not the decedent left a valid will. Almost universally, when a decedent dies without leaving a valid will, or intestate, small estate administration is not an option. The reason for this is that a court must make a legal determination regarding who the heirs to the estate are, which requires a more formal administration.

If the estate is valued under a certain dollar amount and the assets are not complex, small estate administration may be available. Small estate administration procedures will also vary, but frequently allow a personal representative to attest to the value of the estate without the need for formal valuations and appraisals. If all the beneficiaries agree to the listed assets and their value, a court will approve the distribution in considerably less time than a formal probate administration. Some states also allow an even simpler small estate affidavit which allows an asset, such as a vehicle, to be transferred by virtue of completing and filing one simple affidavit with the court.

If you believe that your loved one’s estate may qualify for a small estate administration alternative to formal probate, consult with your estate planning attorney as soon as possible.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

They say that love is blind, but you probably shouldn’t enter into a marriage without having the vision to look beyond the horizon. You may not want to think about it on your wedding day, but the stark reality is that upwards of half of all marriages eventually end in divorce. Most of these individuals wind up getting married again, and in the majority of cases there are children involved.

Most of us are well aware of the use of premarital agreements to assert personal ownership of assets, but many think that this is something that is only applicable to the rich and/or famous. This may be true to some extent but when you have children from a previous marriage, even if you’re not extraordinarily wealthy, you may want to consider executing such an agreement to protect the interests of your children.

You never know what the future holds – if you’re getting remarried or if you have been married before. There is the possibility that you will divorce or predecease your new spouse. If the property that you bring into the marriage remains your own you can make plans to ensure the future well-being of your children come what may.

Post-marital agreements also serve a useful function. There are actually marriages that break up because one individual is left out of the financial decision making and he or she wants his or her fair share of the property. This can be avoided by executing a post-marital agreement dividing the property. Each individual could then create a separate estate plan leaving behind his or her share of the assets with full autonomy.

Marital agreements are sometimes viewed in Fayette County with skepticism, but they can actually strengthen relationships rather than weaken them. If you are interested in executing such an agreement, simply take a moment to contact an experienced Fayette County estate planning attorney to arrange for a consultation.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

We all know the perils of assuming, but unfortunately many people do it all the same. You may hear something stated as fact, internalize this notion, and go forward assuming that it is true. This can cost your family members a lot of money if you get the wrong idea about the federal estate tax.

There is an urban myth out there about the estate tax being levied on the “rich” and the rich alone. Many would have you think that you are in the clear if you are not extraordinarily wealthy, but in fact this is not the case at all.

These days $1 million is not the holy grail figure that it once was. The Spectrem Group tells us that there are some 8.4 million American households who are in possession of wealth exceeding $1 million. That is a lot of people.

If you and your spouse enjoyed long and successful careers, purchased property, made investments, and contributed into the 401(k) plans at work you may well find yourself with assets exceeding $1 million even if you just consider yourself to be an ordinary working person.

Why do we mention this figure? In the beginning of 2013 the estate tax parameters are going to change. At the moment the estate tax exclusion is $5 million and it carries a 35% maximum rate. But when the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 expires at the end of 2012 the estate tax exclusion is going down to $1 million and the rate is going up to 55%.

So if you are one of the people who has bought into the notion that the estate tax is only something that rich people have to contend with you may want to inventory your assets and reassess your definition of the word “rich.” And if it turns out that your estate is indeed in taxable territory, you would do well to take action and arrange for a consultation with an experienced Atlanta estate planning attorney immediately.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you work with a stockbroker or investment counselor you don’t consider it to be a “one and done” endeavor. You are aware of the fact that market fluctuations and changes in your own life are going to impact your portfolio. You see your relationship with the experts that you have advising you as an ongoing one that is necessary to maintain because of the fact that things are constantly in flux.

Too many people do not see estate planning in the same light. As your life changes and institutional realities evolve you are going to have to revisit your estate plan. One of the things to react to in this regard is the federal estate tax.

The parameters of the estate tax are not constant. If you are not properly prepared this lack of preparation can cost your loved ones life-changing sums of money. Right now, the estate tax exclusion is $5 million, but if no changes to the laws are made in the meantime, in 2013 this amount goes down to just $1 million.

As of 2010 there were some 8.4 million households in America with assets exceeding $1 million, so a lot of people who are not exposed to the estate tax right now will be in 2013. If you were to be unaware of the changes that are pending in the estate tax parameters your heirs could find themselves faced with the prospect of paying a 55% federal estate tax, which is the rate that is scheduled for 2013.

The good news is that you can take steps to mitigate or even eliminate your estate tax exposure if you plan ahead intelligently. The best way to proceed is to make an appointment with an experienced Atlanta estate planning attorney who will evaluate your specific situation and make the appropriate recommendations that afford you the estate tax efficiency that you need.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

“Just win, baby,” was the phrase that Al Davis used to state his philosophy to his Raider teams. A large percentage of them took heed, and Al Davis became one of the most successful professional football owners in the history of the sport.

The Raiders captured the AFL championship in 1967. And then, after the AFL and NFL merged more success ensued. The Raiders were AFC Champions on four different occasions. They won the Super Bowl three times, and Davis was inducted into the NFL Hall of Fame in 1992.

The pro football community shed a collective tear on October 8 when Al Davis passed away at the age of 82 in his Oakland home. Forbes magazine estimated the worth of the Raiders at $761 million, and at the time of his death Davis reportedly owned 47% of the club after having sold 20% of his interest several years ago.

Given the fact that the federal estate tax exclusion is only $5 million and the rate of the tax is 35%, his heirs could have been facing some enormous estate tax liability. In fact, many families who have been heirs to estates that included sports franchises have been forced to sell the teams due to the estate tax bills.

This case is different. According to reports coming from the San Francisco Chronicle and NBC Sports, Davis planned his estate in such a manner that his wife Carol and son Mark will be able to retain majority ownership of the team. The exact details of his estate plan have not been divulged, but you can leave unlimited assets to your spouse free of the estate tax and this may have been at least part of what he did to gain estate tax efficiency.

Though you may not own a professional sports franchise, you may indeed own a share in a business that you would like to see passed on to your loved ones. If you would like to explore your options with regard to succession planning in light of the realities of the estate tax, take a moment to pick up the phone and arrange for a consultation with an experienced Atlanta estate planning attorney.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Atlanta estate planning attorneys always try to help clients understand that planning for the future is a wide-ranging endeavor. There is more to comprehensive estate planning than simply assuming that you need to draw up a last will.

In fact, utilization of a last will is not always the optimal way to pass along assets to your loved ones. The correct way to go about it is going to vary on a case-by-case basis. This is why the individualized attention that you get when you retain the services of a legacy planning lawyer provides so much value in the long run.

There is also an incapacity component to a well conceived, holistic estate plan. People are living longer than ever and Alzheimer’s disease is running rampant. Upward of half of all people who are 85 years of age and older are suffering from dementia from either Alzheimer’s or some other affliction. It is important to have hand-picked decision-makers in place who will be empowered to act in the event of your incapacitation.

In addition to arranging for the transfer of assets to your loved ones and the execution of the appropriate powers of attorney you may also want to consider the inclusion of an ethical will in your estate plan. With an ethical will you pass along your wisdom to your loved ones, and this can oftentimes include your spiritual and moral values.

These documents have been used for centuries and they provide you with a way to communicate your final thoughts to those that you love and keep your wisdom alive for future generations. Financial resources are important and necessary, but knowledge gained through hard experience may be the greatest gift of all. You can provide this to your family members by taking the time to record your insights through the composition of an ethical will.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

There is a tendency toward procrastination when it comes to estate planning, and the reasons for this are varied. Many individuals feel as though they can put it off because they don’t feel as though they will be passing away any time soon. While it is true that the average lifespan in the United States right now is between 78 and 79 years, this does not mean that you can delay the creation of your estate plan until you are about 75.

There was an article in Forbes magazine last year that put the question of estate planning preparedness under the microscope. They used statistics that were gathered by the Harris organization that found that just 35% of the adults that responded to an interactive survey had an estate plan.

Though younger people were less likely to have a plan in place, many older respondents were unprepared as well with nearly one-fourth of the participants over the age of 55 stating that they had not signed any estate planning documents at all.

When it comes to incapacity planning the preparedness levels were even worse. Only 29% of the respondents had executed a living will, and only 58% of senior citizens had a living will in place.

Aside from feeling as though there is no particular urgency, another one of the reasons why people don’t have an estate plan in place is because they don’t know exactly where they should begin. The good news is that there is a very simple solution to this situation.

There is no reason why the layperson would have an understanding of how to proceed, just like a person who isn’t a mechanic doesn’t know how to fix a car. What you do in these cases is call in an expert. So the logical first step when it comes to planning for the future is to engage the services of a licensed, experienced Atlanta estate planning attorney. It’s as simple as that.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

If you are in the process of estate planning and are looking for a way to pass down assets to your heirs that has significant tax benefits, you may wish to consider creating a generation-skipping trust. As with all financial tools, a generation-skipping trust has both benefits and drawbacks; however, it is certainly worth considering and taking the time to consult about with your Fayette County and legal advisors.

A trust is a way for you, as the grantor, to set aside certain assets or funds for the benefit of your loved ones. A trust requires you to appoint a trustee to oversee and administer the trust as well as designate beneficiaries who will have the use and benefits of the assets. As the name implies, a generation-skipping trust is a trust that requires you to designate your grandchildren as the beneficiaries, thereby skipping a generation.

The biggest benefit to a generation-skipping trust is that it allows you to avoid the often high estate taxes that would normally be levied if you were to leave the assets outright to your children. By “skipping” your children, the estate taxes do not apply.

While your children cannot access the trust assets directly, a generation-skipping trust can be set up, for example, to allow your children the use of any income generated by those assets. Let’s assume you placed real property in the trust and that property generates rental income, your children could use the income generated by the rent if you choose to structure your trust to allow it. Likewise, if you placed funds into a generation-skipping trust, it could be structured to entitle your children to the interest on the principal. A generation-skipping trust must be carefully drafted so consult a Fayette County estate planning attorney if you are considered using this tool.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.