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.

At some point, most people start to worry about how their assets will be passed down to family and loved one’s. Proper estate planning can make the process of transferring your assets simple and as pain-free as possible upon your death. Along with deciding who you wish to leave your assets to upon your death, you may wish to consider how you want those assets to be transferred. Unless you take steps now to avoid the necessity of probate upon your death, your assets will likely be required to pass through a probate court before your family and loved ones will have access to them. Among the various options available to help avoid probate is the creation of a living trust.

A trust, at its simplest, is a legal agreement that allows you to place assets into the trust that are to be used for the benefit of beneficiaries that you name in the trust. A trust must also have a trustee whom you appoint as well as a successor trustee. In most cases, you may appoint yourself to be the trustee. As the name implies, a living trust is a trust that you create and activate while you are alive. A living trust can be created as a revocable living trust, meaning that you, as the maker of the trust, have the power to revoke the trust, or modify the terms of the trust, at any time prior to your death.

Upon your death, property owned by you must pass through probate; however, property that you placed into a trust is considered trust property, meaning you do not legally own the property at the time of your death. When you die, the successor trustee takes over and is able to transfer the trust property directly to the beneficiaries named in the trust, thereby avoiding the need for the assets to be included in the probate process. Often, using a living trust in combination with other estate planning tactics can allow your estate to avoid probate altogether upon your death.

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

Most people have heard the term “trust” used in a variety of contexts, but you may not understand exactly what a trust is and how it functions. A trust is a legal agreement, created in a document, that allows you to place assets in the care of a trustee for the benefit of another person or persons. State laws determine the specific rules required to form a trust as well as what types of trusts can be formed within the state. While there are numerous different types of trusts, and minor variations regarding trust rules among the states, there are also some trust basics that may help you better understand trusts.

Understanding who the participants are in a trust is the best place to begin. The person who creates the trust is referred to as the grantor, settlor or trustor. The person in charge of overseeing the trust is known as the trustee. The people who are intended to receive the benefit of the trust assets are the beneficiaries. Now this is where it can become a bit tricky. In some states and for some types of trusts, an individual can hold more than one title within the trust. A grantor may also be a trustee for example, or a beneficiary may be allowed to also be the trustee. The important thing to understand is what each designation means.

Regardless of why a trust is created, the basic function remains the same. The grantor designates assets to be used in the trust. Assets can be cash or property–both tangible and intangible. Those assets then become trust assets. The grantor must also designate a trustee. The trustee then holds those assets for the benefit of the beneficiaries under the terms of the trust. The trustee is responsible for guarding and accounting for the trust assets at all times. The trustee may also be responsible for dispersing the assets to the beneficiaries. The beneficiaries are the people who receive benefits in the form of interest or principal payments from the trust assets. The terms of the trust will dictate how, when and in what amount the beneficiaries are to receive funds from the trust.

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

 Henry County elder law attorneys spend a lot of time keeping abreast of trending matters that are of interest to senior citizens. One of the issues that is getting the attention of the elder law community these days is elder financial abuse. While it is hard to understand how anyone could find it possible to take advantage of people specifically because of their vulnerability, it happens; and it happens far too frequently.

According to a study that was recently conducted by MetLife an estimated $2.9 billion goes down the drain each year due to instances of elder financial abuse. This type of abuse comes in many forms, and when people try to formulate statistics on the subject they are challenged because of the fact that so much data is withheld.

The vast majority of instances of elder financial abuse go unreported. The primary reason for this is because the perpetrator is often a family member of the victim. Not only does the elder who is being abused want to protect his or her family member, but the senior citizen often needs the assistance that is being provided by this individual. This is a cruel irony, and it can fuel a cycle of ongoing abuse.

But there are many cases of elder financial abuse that are committed by people that the victim doesn’t know, and a lot of them take place over the Internet. There are innumerable scams circulating at any given time that involve the victim parting with money now with the promise of a larger return later on. Of course later on never comes and the scam artist disappears, leaving no trace.

Another way that seniors are getting taken advantage of in the digital age is through identity theft. It is very important to guard your sensitive information and you may want to enroll in an identity guard program that monitors the use of your name and Social Security number.

Elder financial abuse is a burgeoning problem. If you would like to gain an understanding of how you can take legal steps to protect yourself, take a moment to arrange for a consultation with an experienced Henry County elder law attorney.

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.

 It is important to look over the horizon and make plans for the different stages of life that you will be passing through. When you are younger it can be hard to wrap your head around the idea that significant changes in your life may be in store for you as the years pass. For this reason you may allow a lot of time to go by before mapping out any intelligent preparations for the eventualities of aging.

This is a mistake that is made in Atlanta all too often. The time to make plans for the latter portion of your life is when you are younger and in full control of your faculties. With this in mind you would do well to consider the possibility of incapacitation.

At the present time the average lifespan here in the United States is 78.7 years and it seems to be rising all the time. In fact, the oldest among us, people who have reached the age of 85 and up are the fastest growing age group. Statistics indicate that roughly half of the people who reach this age are dementia sufferers, and this is largely attributable to how widespread Alzheimer’s disease has become among our nation’s seniors.

Dementia can make it hard to understand equations and make decisions. For this reason incapacity planning is recommended and it involves empowering representatives to make financial and medical decisions on your behalf through the execution of documents such as a Durable Financial Power of Attorney and an Advance Directive for Health Care.

If you don’t have an incapacity plan in place, interested parties could petition the court to appoint a guardian to act for you, and you may have no input into the selection of this guardian. Through the execution of powers of attorney and health care directives you can circumvent this possibility. The first step to take along these lines would be to arrange for a consultation with an experienced Atlanta elder law attorney.

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 look into the statistics you find that a remarkable percentage of Americans, even those who are getting up there in years, are completely unprepared for retirement. The baby boomer generation is comprised of people who were born between 1946 and 1964. These people are now reaching retirement age, and we are finding out that many of them have made little to no preparations for the future.

It is very important to understand the fact that Social Security payouts are rather modest, and Medicare does not pay for everything when it comes to health care expenses. In fact, many people in Fayette County are somewhat shocked when they hear that the average monthly Social Security benefit is right around $1070.

A recent poll conducted by the Associated Press along with LifeGoesStrong.com found that over 60% of the baby boomers they contacted said that Social Security would represent the cornerstone of their retirement income. The Social Security Administration itself tells us that one third of recipients say that Social Security comprises at least 90% of their total income.

It’s no secret that we are in the throes of a fiscal crisis here in the United States. Legislators are demanding budget cuts, but when you examine the pie chart you see that Social Security consumes 20% of the budget, and Medicare and Medicaid spending accounts for 23% of it. So these programs are under assault, making it even more risky to rely on them heavily.

The bottom line is that retirement is not an entitlement. It is a period of time during which you have the financial resources to quit working. If you can’t pay your way without earning a paycheck or profiting from a business, you may not be able to stop working.

The only way to be certain that you will be enjoying your golden years to the utmost is to plan ahead intelligently and pragmatically. This is best done with the guidance of an experienced Fayette County retirement planning attorney with a demonstrated history of success.

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

When you are devising a long-term financial strategy you may be interested in asset protection. One option that is available to that end is the creation of a limited liability company or LLC. The LLC is kind of a cross between a corporation and a partnership or sole proprietorship. The owners of an LLC are called “members,” and there is such a thing as a single member LLC.

The assets that are personally owned by the members of a limited liability company are protected from creditors and claimants seeking redress from the LLC. This is where the asset protection lies. However, the LLC itself can be litigated against so assets owned by the LLC are not protected on that level.

In addition to this, if the LLC is making cash distributions to the members, these can indeed be subject to charging liens, so the creation of a LLC is not a cure-all. There are those who try to get around this by having the LLC make payments that benefit the members without making the payments directly to them. For example, the LLC could make a mortgage payment for a member.

This is something you may want to refrain from because the onus would be on the LLC member or members to prove that this entity was in fact separate from his or her personal financial identity. Creditors often successfully argue that the limited liability company is actually just an extension of the member or members and not a legally viable entity in its own right. Having the LLC pay your bills gives the creditors ammunition when they make this argument.

Limited liability companies can be a good choice for asset protection under certain circumstances. You just have to go about things in the right way and create clear separation between your own personal finances and that of the LLC. To learn more about LLCs and asset protection, simply take a moment to arrange for a consultation with an experienced Atlanta asset protection planning attorney.

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

When you are thinking long-term and engaged in the process of budgeting for your elder years you have to be apprised of all the expenses that you may be facing. All the different facets of elder law are connected, because your estate planning efforts are going to be impacted by your financial decisions throughout your life. If you want to carefully craft your legacy you have to know what your expenses are likely to be late in your life and plan accordingly.

A lot of people are not aware of just how likely it is that they’re going to need long-term care at some point in time. The United States Department of Health and Human Services tells us that three out of every four senior citizens will someday need either in-home care, nursing home care, or the support that is provided by assisted-living communities. This care is extremely expensive, with a single day in a private room in a nursing home in 2011 averaging $229.

Many senior citizens work with elder law attorneys to prepare themselves for Medicaid eligibility in an effort to address long-term care costs because Medicare does not cover long-term care. In fact, Medicaid pays 40% of all the long-term care costs that are incurred in the United States. Two thirds of the Medicaid budget goes toward assisting senior citizens and disabled individuals.

So when you look at the facts, it’s hard to imagine a scenario whereby Medicaid can be cut without seniors being impacted. The House of Representatives passed a proposed budget earlier this year that called for $800 billion in Medicaid cuts; the president has suggested $100 billion in cuts to the program.

As this is being written a congressional committee is hatching a plan to trim $1.5 trillion from the federal deficit over the next decade. Given the fact that the powers that be have already stated that they want to cut Medicaid, one might assume that the “super committee” as it is being called will include Medicaid cuts in its plan.

Many seniors are concerned about how they’re going to pay for long-term care given the realities of the austerity initiatives that are consuming the lawmakers. If you’re one of them, now is the time to take action and arrange for a consultation with an Atlanta elder law attorney so that you can devise a plan that prepares you for all the eventualities of aging come what may.

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