My Estate Planning Clients

Mangus Law Firm's estate planning clients include individuals, parents, blended families, second+ marriages, and LBGTQ families. 

Individuals

You may ask why you need estate planning if you are single, divorced, or widowed and have no children. You tell yourself “I will be dead so it doesn't matter who gets my stuff”. If you die without a will, also called dying intestate, South Carolina law will determine who gets your “stuff”. Your property may be inherited by the last person in the world you want to receive your “stuff” like your mean, old aunt who never spoke a kind word.  Or if you have no heirs, your entire estate could go to the State of South Carolina. Estate planning involves more than what happens to your “stuff” after your death.

You may have worked your whole life to build savings, become debt free, and follow your dreams. You may have amassed a fair amount of wealth and are proud of your accomplishments. You may want to give your wealth to support a meaningful cause. With estate planning, you can create a legacy for causes that are close to your heart.

For this reason, estate planning for individuals can create a comprehensive strategy for passing your wealth on to your favorite charities. Trusts are an excellent way to provide for those charities that you feel passionate about and I help individuals design estate plans that can have a positive impact on the world.

Parents of Minor Children

I understand the importance of estate planning for parents because I am a single parent and I was a single parent for many years.  . Financial concerns about your child's daily needs, special needs, or paying for college may be on your mind. As a former personal injury attorney, I understand that a person's life can drastically change or end on any given day. Estate planning for parents can be critically important to securing your child's future.

Estate Planning for Parents During Life

Have you ever thought about what would happen if you did not come home to your child one day?  Who would take care of your child if you were seriously injured in an accident or had a disabling illness? Who would access your bank accounts to pay your bills and put food on the table for your child? Where would your child live?  There are two options. First, you can name an agent under a General Durable Power of Attorney to provide for your child's financial needs. Second, you can name a trustee under your trust to say how your child's financial needs will be met. I can talk with you about options to name a caretaker for your child.

Estate Planning for Parents After Death

If you passed away, who would care for and raise your child? How would you financially provide for your children's needs? Here are some methods to provide funds for your minor children after your death. Each of these methods has pros and cons to consider.

Life Insurance

Many parents buy a life insurance policy with their child as the sole beneficiary.  Life insurance is a great solution but deciding how your child will receive the proceeds requires thoughtful consideration.  Naming a minor as the beneficiary can be fraught with unintended consequences.
While minor children can be beneficiaries of a life insurance policy, a life insurance company will not pay the proceeds directly to a minor.  Life insurance companies will only pay the proceeds to an adult custodian, many times to the other parent.  So, if you trust your child's other parent to use the proceeds in your child's best interest, then that is great.  However, if you don't because he/she has an addiction problem, is a spendthrift, or is just absent and uninvolved in your child's life, then the other parent handling your child's money may not be the best idea.

If you die without an estate plan, the probate court will likely appoint a guardian and/or conservator to care for your child and manage the life insurance proceeds.  That person could be the child's other parent or someone that you do not know or trust. You could name a person that you do trust to receive the life insurance proceeds to manage for your minor child.  However, the person receiving the life insurance benefits is not legally obligated to use the money for her child's benefit. Therefore, this may not be the best decision either.

Uniform Transfers to Minors Act

Under South Carolina's Uniform Transfers to Minors Act (UTMA), life insurance companies can provide you with a form to name a custodian and an alternate custodian and set up an account to hold the life insurance proceeds. You can read the UGMA law here. The UGMA says how the custodian will manage and spend the money on your child's behalf until your child turns 21.  Unless you can read a crystal ball, your child may not be mature enough at 21 to handle receiving what could be a large sum of money. Creating a trust can create a long-term and better option.

Creating a Trust for Life Insurance Benefits

A revocable living trust is a type of trust you can create and name your children as the beneficiaries of the trust. The trust controls how the life insurance proceeds are used for your children.  Your life insurance policy beneficiary is the trust instead of your child.  After your death, the trust receives the life insurance proceeds. The trust agreement instructs your trustee how distributions are to be made to your children.  Your trustee is bound to act in good faith on behalf of your children.  You can say when, how much, and under what circumstances your child receives the trust funds.   You can instruct that funds are to be used to pay for school, medical care, a down payment on a home, or that your child receives a percentage of the money at different ages.

There are many things for parents to consider during the estate planning process. But one thing is for sure: making an estate plan puts you in the driver's seat.   I will discuss various scenarios with you and help you design the best estate plan for you and your children.

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Blended Families

Many of us remember the Brady Bunch and how the parents each brought their own children into the marriage. Those Brady Bunch episodes made us laugh. But the hard truth is that many blended families struggle. The number of blended families in the United States is on the rise. If you are not a member of a blended family, you probably know someone who is. Estate planning for blended families can ease the burden on families after the passing of a parent.

Why is Estate Planning for Blended Families important?

Blended families much like second+ marriages have specific estate planning needs. There are many questions that arise for blended families. For example, how will the surviving spouse be provided for after the first spouse's death? Additionally, how will each spouse's children inherit separate and joint property. Without estate planning, children can be unintentionally disinherited. As a result, a host of problems will be left for a blended family. Intestate succession and joint tenancy are just two examples.

Dying Intestate

You and your spouse may have discussed making an estate plan. Maybe you decided exactly how you want your property to be distributed to your children of prior marriages and to your joint child. However, life has carried on and you have not made an estate plan much less a will. Even though you have discussed how your property is to be distributed, you have not put your intentions into writing. Verbal agreements and instructions are not legally enforceable.

Dying without a will means dying intestate. Dying without a will means that the State of South Carolina will decide who gets your property for you. The probate court's decision on who gets your property may be completely opposite than what you wanted.

Joint Tenancy

You and your spouse buy a home together and agree that once one spouse dies, the deceased spouse's interest passes to his/her children. However, the title to property is held jointly with rights of survivorship. As a result, the deceased spouse's interest passes to the surviving spouse and not the children. The deceased spouse's children have no ownership rights to the property. Furthermore, the surviving spouse has no legal obligation to give the deceased spouse's children an interest in the property. Without good estate planning for blended families, children can be disinherited. And let's not forget the bad blood that can permanently fracture a blended family.

I know that estate planning for blended families is tough. Many couples have trouble talking about money, but for blended families, it is even more difficult and also more critical for spouses to talk about present and future financial health and distribution of property after death.

Second+ Marriages

You told yourself you would never get married again. But you did not expect to meet someone so great. You did not expect it to be so easy. So, your view on remarrying changed and you are either in a second+ marriage or considering one. Estate planning for second marriages, or third or fourth or seventh, can be an important factor to the success of a new marriage.

According to the Pew Research Center, 40% of all new marriages include at least one partner who had been married before. Even the best marriages can result in divorce, so estate planning protects children's inheritances in case of divorce. It also protects inheritances from lawsuits, bad decisions, addiction, or a spendthrift surviving spouse or child.

Why is Estate Planning for Second+ Marriages Important?

You worked hard for your property. It is important to you to provide for your spouse and your children after your death. Estate planning for second+ marriages can prevent after-death fights between your surviving spouse and your children.

Perhaps both of you have careers and your own money. Maybe both of you keep your separate property but also have joint property. Perhaps you want your spouse to move into a home you already own and be able to use that home until his/her death. Afterwards the home is then passed onto your heirs. How do you safeguard your property if your surviving spouse later remarries?

Perhaps one or both of you have children from a prior relationship. Maybe you have a child together in addition to your children from prior relationships. How do you provide for “yours, mine and ours” fairly? How do you provide for children when you do not want your exes to have any control over the money your children inherit from you and/or your new spouse? What do you do if one of you has a child with special needs?

These issues are just the tip of the iceberg. However, thoughtful consideration of family dynamics allows each spouse in a second+ marriage to decide on a reasonable estate plan. Estate planning for second marriages should work for both spouses and meet their longtime goals and wishes.

Omitted Spouse Election

If one spouse had a will prior to his remarriage that left his property to his children, the law presumes that the deceased spouse forgot to change the will to include the new spouse. In that situation, the surviving spouse has the right to claim an omitted spouse election. Any property that is jointly owned or designates the surviving spouse as the beneficiary such as life insurance or retirement is unaffected by the omitted spouse election.

Spousal Elective Share

However, if a surviving spouse is left out of or inadequately provided for in the deceased spouse's estate plan created after the couple was married, then the surviving spouse has a right to claim an elective share. Property passing under the will, a revocable trust, IRA, pension or life insurance is charged against a surviving spouse's elective share claim amount.

Estate Planning for Second+ Marriage Options

The estate planning options for second+ marriages depend on the unique circumstances of each couple. A joint revocable living trust may work for one family but may not work for another family. In some cases individual revocable trusts may work but in others it may not. Other types of trusts such as a QTIP trust may be more appropriate given your circumstances. Asset protection is an important consideration in deciding which trust is best for you and your spouse.

Estate planning for second+ marriages must consider all of these issues. If you are in a second+ marriage or are contemplating remarrying and have questions about estate planning, request a consultation with me to discuss your options.

LGBTQ

As a member of the LGBTQ community, you have worked hard for what you have. Your assets may include a house, stocks and bonds, or a sizeable retirement account. A good estate plan is highly dependent upon your unique circumstances. Estate plans can evolve as you evolve in your life. The estate plan that worked while your were single will need to be revised if you get married or have a child. As a single LGBTQ person, dying without a will or intestate, may be no big deal. For LGBTQ couples who have minor children, dying without a will can be harmful to your children. Estate planning for LGBTQ individuals and couples can be an important way to provide for those you love. Additionally, estate planning can be an important way to provide for causes that are near and dear to your heart.

For many LGBTQ people, their parents and/or siblings were not open to their sexual orientation. Some LGBTQ persons may have cut ties with their family completely in order to become their authentic selves. Dying without a will may mean that those people from whom you are estranged may inherit your assets. If you have children and don't have a will, the probate court will decide who will care for your children. The guardianship and conservatorship proceedings are long, expensive and public. A person who was not open or vehemently opposed to your sexual orientation may be awarded custody of your child. Estate planning can avoid this.

Many LGBTQ couples have no intention of getting married. However, each partner wants to provide for the other after death. Dying intestate would mean that the assets you intended for your life partner now go to your family. Your family may not be your “family”. Estate planning for LGBTQ individuals and couples can avoid heart-breaking and life-altering consequences for your real family.

If you die without a will and have no living heirs, then the assets in your estate will go the State of South Carolina. If you had a will, you could distribute your assets to a cause that is important to you. Estate planning for LGBTQ individuals and couples can allow you to choose how your property passes and to which beneficiaries.

If you have questions about estate planning, call or use the online form for a free initial consultation.