How Does a Revocable Trust Avoid Probate?

Probate is the general administration of a deceased person's will or the estate of a deceased person without a will. During probate, the administrator/executor has the responsibility of managing the decedent’s estate by receiving all probate assets of the estate, determining and paying all lawful debts of the estate, making distribution to the proper beneficiaries under the will, or in the case of intestacy, to the intestate heirs at law according to the laws in effect in Virginia, and to report to the Commissioner of Accounts on the actions taken during administration.

A revocable trust is a trust whereby provisions can be altered or canceled depending on the wishes of the grantor or the originator of the trust. During the life of the trust, income earned is distributed to the grantor, and only after death does property transfer to the beneficiaries of the trust.

ACTEC Fellows discuss in easy-to-understand terms the purpose and role of a revocable trust in avoiding probate, what a revocable trust can and cannot do, if a revocable trust can protect assets from creditors, and steps individuals need to take when setting up a revocable trust.

Managing Guns in Your Estate

There are many considerations when managing guns and firearms in your estate and leaving them to beneficiaries. Depending on the weapon, federal and state laws are in play. What must you understand to transfer a family firearm in your will?

Estate planning experts explain the complexity of leaving firearms and guns in your will and offer tips regarding what to consider when bequeathing weapons.

529 Plan Pros and Cons

Learn what you need to know about 529 Plans and saving for educational purposes including:

  1. What to keep in mind when choosing a plan,

2. How to pick a successor account owner,

3. How to use the distributions,

4. How to manage the expenses, and

5. What to do if you have leftover money.

ACTEC Fellows answer the questions parents and families have about how 529 Plans work and what you need to keep in mind when saving for higher education.

Artificial Intelligence (AI) and Planning Your Estate

Artificial Intelligence (AI) can play a crucial role in tasks such as wealth forecasting, tax optimization, and personalized financial advice. These technology tools can help streamline the estate planning process by automating routine tasks, ensuring compliance with legal requirements, and providing real-time updates on changes in financial landscapes—but there are risks.

ACTEC Fellows explain what consumers need to understand and list questions to ask their estate planning attorney, who may be using this new technology.

Tips for Managing Digital Assets of a Deceased or Disabled Person

Today, many accounts and correspondence are accessed by email, not “snail mail.” What happens to social media and email accounts if someone becomes disabled or passes away? Identifying legacy account holders for digital assets as part of an estate plan will speed up the administration and reduce the stress on the estate’s executor and loved ones. So, how do you plan for the postmortem management of digital assets?

Estate planning experts offer tips for adding legacy contacts to email and social accounts and recommendations for executors working to access digital property when a legacy contact has not been set up.

A Trustee's Duty to Minimize State Income Tax

As a trustee, you have a duty to act in the best interests of the trust and its beneficiaries. Part of that duty includes minimizing the tax burden of the trust, including state income tax. That's why it's important to work with a knowledgeable tax professional and understand the tax laws in your state. By taking advantage of tax deductions and credits, structuring distributions strategically, and making informed investment decisions, you can help minimize the state income tax liability of the trust. Remember, a trustee who fails to minimize the tax burden of the trust may be held liable for any resulting losses or penalties. So, take your duty seriously and work with trusted professionals like Schooley Law Firm to ensure you're fulfilling your obligations as a trustee.

Click the link below to hear ACTEC Fellows discuss how navigating a trustee's duty to minimize state income taxes entails legal, practical, and moral considerations, ensuring fiduciary obligations are met.

Tips for Seniors to Avoid Scams

Fraud and scams against seniors were up 74% in 2021 over 2020. Legal experts explain common scams against senior citizens, offer tips to avoid scams and outline steps to take if you are the victim of elder fraud in this video.

The American College of Trust and Estate Counsel (ACTEC), is a national association of approximately 2,400 peer-elected lawyers and law professors from across the United States and abroad with expertise in estate planning, probate, and trust administration. Jennifer Schooley has been a Fellow since 2021.

Coordinating Beneficiary Designations with the Overall Estate Plan

Assets such as life insurance, annuities, pension plans, 401ks and IRAs have beneficiary designation forms as part of the set-up process. Remember to check that your beneficiary designations were made, and if you have a revocable trust, that you have changed title to assets to comport with your wishes. Make particular note of any newly-acquired asset, life insurance policy, or real estate purchase (particularly if out of state).

ACTEC Fellows dig into the complexities around beneficiary designations so that viewers understand the essential facts.

If you have questions about titling, beneficiary designations, or other matters, please do not hesitate to give Schooley Law Firm a call.

Getting Your Affairs in Order: Essential Legal Documents

Happy 2024! It’s the new year and the year for you to think about creating an estate plan for the first time or to pick up and review your existing estate plan.

Schooley Law Firm recommends that you review your documents every three years to ensure that the right people are still named as fiduciaries in your documents, that your intended beneficiaries are still living, that your assets have not largely changed, and that your plan still comports with your wishes, generally.

If you’re just starting you may wonder what legal documents should you have in place to prepare for an emergency. Learn more about a Durable Power of Attorney, Financial Power of Attorney, and Advanced Healthcare Directive - Living Will - in this critical video from an elder law expert.

Estate Planning with Art - Selling, Gifting, or Donating Art

By now, if you live in the Richmond Metro Area, you have heard about one lucky woman who purchased a vase at a Richmond Goodwill for $3.99 and later sold it at auction for a whopping $100,000. Whether you have been a collector for years, are just starting, or hit the jackpot at Goodwill, art and collectibles (assets like paintings, prints, sculptures, watercolors, classic cars, antiques, wine etc.) are assets that could be included in your probate estate.

Estate planning art experts explain the options art owners have to dispose of their assets - selling, gifting, or donating art collections. If your art collection is meaningful, then the appropriate legacy-planning steps need to be taken to protect it for future generations. Our attorney, Jennifer Schooley, has extensive experience with art and collectibles and can help you plan.

The American College of Trust and Estate Counsel, ACTEC, is a professional society of peer-elected trust and estate lawyers in the United States and around the globe. This series offers professionals best practice advice, insights, and commentary on subjects that affect the profession and clients. Learn more in this podcast.

Charitable Giving Tips & Tricks

Charitable giving holds significant importance, as it represents a crucial opportunity for individuals to make a positive impact on their communities and causes close to their hearts. Especially as the calendar year concludes, people often engage in philanthropy to maximize tax benefits, taking advantage of deductions for charitable contributions.

ACTEC Fellows explain what you need to consider regarding taxes, donating stocks vs. cash, “bunching” donations, donor-advised funds (DAF), and more.

Pitfalls of Pay on Death (POD) Accounts

Pay on Death (POD), aka Transfer on Death (TOD) and Totten Trust, allows the account owner to designate a specific beneficiary who will receive the funds in the account upon their death, bypassing the probate process. This can help ensure a smooth and efficient transfer of assets to your intended recipient, providing financial security and reducing the burden of legal proceedings for your loved ones, but there are some drawbacks.

ACTEC Fellows explain how Pay on Death accounts work and what account owners should be aware of before identifying a beneficiary on the form.

If you have questions about POD or TOD accounts, please schedule a meeting with us so that your titling may be checked or updated accordingly.

Should I Serve as an Agent Under a Financial Power of Attorney (POA)?

A Power of Attorney (POA) typically refers to a property or a financial Power of Attorney. The agent under the POA has real powers and responsibilities.

A POA gives one or more persons the power to act on your behalf as your agent. The power may be limited to a particular activity, such as closing the sale of your home, or be general in its application. The power may give temporary or permanent authority to act on your behalf. The power may take effect immediately, or only upon the occurrence of a future event, usually a determination that you are unable to act for yourself due to mental or physical disability. The latter is called a "springing" POA. A POA may be revoked, but most states require written notice of revocation to the person named to act for you.

ACTEC Fellows explain what individuals need to understand before accepting the role of an agent under a Power of Attorney.

Should I Serve as a Trustee?

Being named as trustee of a trust, whether that is to manage assets on behalf of someone else or for yourself, involves responsibilities that are not readily apparent.  Prudent investment management, distribution decisions, and tax reporting obligations are core features of the job.  The best way to ensure a smooth experience for the trustee and beneficiaries is to build your administration practices on a strong procedural and legal foundation, understanding what is required by the terms of the document and by underlying law, and also what is within a trustee's discretion. 

Schooley Law Firm is here to help relieve the burden and leverage our two decades of experience to help you navigate this job efficiently and effectively.  However, if you are well into your term as trustee and have encountered new problems, we are here to help you get back on track.

ACTEC Fellows offer an overview of the trustee's responsibilities and the risks in this short video.