wills and estates

Special Needs Trusts: What Are They and Who Is Eligible for One?

December 2, 2024 by admin@anioncreative.com

When planning for the future of a loved one with a disability, financial support must be coordinated carefully with any means-tested public benefits they receive, including Supplemental Security Income (SSI) and Medicaid.

A properly structured Special Needs Trust (SNT) can provide additional financial support while helping preserve eligibility for certain public benefits. At Inman, Stadler & Hill, our Knoxville estate planning lawyers can help families determine whether an SNT is appropriate and structure the trust around their loved one’s needs and long-term financial circumstances.

What Is a Special Needs Trust?

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A Special Needs Trust (SNT) is a trust established to hold and manage assets for the benefit of a person with a disability. When properly structured and administered, an SNT can provide supplemental financial support while helping preserve the beneficiary’s eligibility for certain means-tested public benefits.

Programs such as Supplemental Security Income (SSI) and Medicaid have financial eligibility requirements, including limits on certain income and resources. Assets held in a qualifying SNT may be excluded when determining eligibility for these programs. However, distributions from the trust can still affect benefits depending on how the funds are paid and what expenses they cover, making proper trust administration especially important.

Special Needs Trusts generally fall into two main categories:

Third-Party SNT: A third-party SNT is funded with assets belonging to someone other than the beneficiary, such as a parent, grandparent, or other family member. Funding may come from gifts, an inheritance directed to the trust, life insurance proceeds, or other assets. Unlike a qualifying first-party SNT, a third-party SNT generally is not subject to the same Medicaid reimbursement requirement after the beneficiary’s death.

First-Party (or Self-Funded) SNT: A first-party SNT is funded with assets that belong to the beneficiary, such as proceeds from a legal settlement or an inheritance received directly by the beneficiary. Qualifying first-party SNTs are subject to specific federal requirements, including rules concerning the beneficiary’s disability and age when the trust is established. After the beneficiary’s death, remaining trust assets may be used to reimburse the applicable state Medicaid program for certain benefits paid on the beneficiary’s behalf before any remaining funds are distributed according to the trust and applicable law.

Who Is Eligible for a Special Needs Trust?

Whether a Special Needs Trust is appropriate depends on the type of trust, the beneficiary’s circumstances, and the public benefits the trust is intended to help preserve.

For a qualifying first-party SNT, federal law generally requires the beneficiary to meet the Social Security Act’s definition of disability and to be under age 65 when the trust is established. Third-party SNTs are funded with assets belonging to someone other than the beneficiary and are subject to different requirements.

Because eligibility and trust requirements can vary, families should consider the beneficiary’s disability, current or anticipated public benefits, source of the trust assets, and long-term financial needs when deciding whether an SNT is appropriate.

How Does a Special Needs Trust Work?

How an SNT is established and funded depends on the type of trust. A third-party SNT is generally established and funded by someone other than the beneficiary, while a qualifying first-party SNT is funded with the beneficiary’s own assets and may be established by the beneficiary or another person or entity authorized under applicable law.

The trust is administered by a trustee, who manages the assets and makes distributions according to the trust agreement and applicable public-benefit rules. A properly administered SNT can supplement the beneficiary’s public benefits by paying for goods and services that support their health, independence, and quality of life.

Depending on the terms of the trust and the beneficiary’s benefit programs, SNT funds may be used for expenses such as:

Caregiving and In-Home Support: The trust may help pay for personal care, respite care, or other assistance with daily activities.

Medical and Therapy Expenses: Funds may be used for medical, dental, therapeutic, or other healthcare expenses that are not otherwise covered.

Transportation Costs: An SNT may help pay for accessible transportation, certain vehicle-related expenses, public transportation, or rideshare services.

Recreation and Enrichment: Trust funds may also be used for classes, hobbies, entertainment, and certain travel expenses that benefit the beneficiary.

The effect of a trust distribution on Supplemental Security Income (SSI), Medicaid, or other benefits can depend on what the trustee pays for and how the payment is made. For example, direct cash payments to the beneficiary or certain payments for shelter can affect SSI even when the trust itself is not treated as a countable resource.

What Are the Benefits of a Special Needs Trust?

An SNT can provide several important benefits for the beneficiary and their family, including:

Helping Preserve Eligibility for Public Benefits: When properly structured and administered, an SNT can hold certain assets for the beneficiary without those assets necessarily being treated as countable resources for means-tested programs such as Supplemental Security Income (SSI) and Medicaid. Because individual distributions can still affect benefits, careful administration of the trust is important.

Managing and Preserving Assets: An SNT places assets under the management of a trustee who must administer them according to the trust agreement and applicable law. Depending on the type and terms of the trust, the arrangement may also provide protections that help preserve assets for the beneficiary’s needs.

Customizing Support: The trust can be structured around the beneficiary’s individual circumstances and long-term needs. Funds may be used for appropriate supplemental expenses while the trustee considers how each distribution could affect the beneficiary’s public benefits.

When Do the Benefits of a Special Needs Trust End?

An SNT will often terminate upon the beneficiary’s death, although the trust agreement controls how and when the trust ends and how any remaining assets are handled.

For a qualifying first-party or self-funded SNT, remaining trust assets generally must first be used to reimburse the applicable state Medicaid program or programs, up to the amount of medical assistance paid on the beneficiary’s behalf, as required by law. If funds remain after any required reimbursement, they may be distributed according to the trust terms and applicable law.

A third-party SNT generally is not subject to the same Medicaid payback requirement. The person creating the trust can usually designate remainder beneficiaries who will receive any assets left in the trust after the beneficiary’s death.

How Can a Lawyer Help Create a Special Needs Trust?

Creating an SNT requires more than transferring assets into a trust. The trust must be structured and administered with the beneficiary’s circumstances, funding source, and applicable public-benefit rules in mind. An estate planning attorney can help families evaluate these issues and draft the trust to comply with applicable legal requirements while reducing the risk of disrupting the beneficiary’s means-tested benefits.

Choosing the Appropriate Trust Structure: The source of the assets, the beneficiary’s current and anticipated public benefits, and the family’s long-term goals can all affect which trust arrangement is appropriate. An attorney can evaluate whether a third-party SNT, first-party SNT, or another available special-needs-planning option is best suited to the circumstances.

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Drafting Clear, Compliant Terms: An attorney can draft the trust to address the trustee’s authority, distribution standards, and other provisions that affect how the assets are managed for the beneficiary. Careful drafting is especially important when the trust is intended to help preserve eligibility for means-tested public benefits.

Guidance on Funding Sources: A lawyer can help evaluate appropriate ways to fund the trust, including life insurance proceeds, inheritances, and other assets. The source and timing of the funding should be considered alongside potential tax consequences and the beneficiary’s public-benefit eligibility.

Ongoing Legal Support: Special Needs Trust planning does not necessarily end when the trust is created. An attorney can assist with questions involving trust administration and help the trustee respond to changes in applicable laws, benefit rules, or the beneficiary’s circumstances.

Let Our Knoxville Estate Planning Lawyers Help You Establish a Special Needs Trust

At Inman, Stadler & Hill, our Knoxville estate planning lawyers help families evaluate Special Needs Trust options, funding strategies, and long-term planning considerations for loved ones with disabilities.

Our team can help you determine an appropriate trust structure, identify suitable funding sources, and develop a plan based on your family’s circumstances and goals. Contact our Knoxville estate planning lawyers today for a consultation to discuss whether an SNT may be appropriate for your family.

Last-Minute Changes to a Will: Is It a Bad Sign?

October 22, 2024 by admin@anioncreative.com

Estate planning and the creation of a will allow people to decide how their property should be distributed after death. But when a loved one makes significant changes to a will shortly before death, family members and beneficiaries may have questions about why the changes were made and whether the document reflects the person’s true intentions.

A late change to a will does not automatically mean something improper occurred. However, depending on the circumstances, it may raise concerns about testamentary capacity, undue influence, fraud, or other issues affecting the validity of the will. In some cases, those concerns can lead to a will contest. At Inman, Stadler & Hill, we help families evaluate the circumstances surrounding disputed estate documents and understand the legal options available under Tennessee law.

Understanding Last-Minute Changes and Undue Influence

When someone changes a will shortly before death, family members or beneficiaries may have questions about what prompted the change. A late amendment does not automatically mean that undue influence occurred. The person may have made a genuine change in their estate-planning wishes, or the circumstances surrounding the change may raise questions about testamentary capacity, undue influence, or another issue affecting the document’s validity.

In Tennessee, courts look at the circumstances surrounding the execution of the will or codicil rather than timing alone. Factors such as the person’s physical or mental condition, their relationship with the person benefiting from the change, involvement by a beneficiary in preparing the document, and whether the change differs substantially from previously expressed intentions may all be relevant.

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Consider the Timing and Surrounding Circumstances: A will or codicil signed shortly before death may deserve closer examination, but timing alone does not establish undue influence. Consider the person’s health, whether the change departed significantly from previous estate plans, who was involved in arranging or preparing the document, and whether the person received independent advice.
Consider Testamentary Capacity at the Time of Signing: Evidence of dementia, memory problems, medication effects, or other cognitive impairment may be relevant, but those conditions do not automatically invalidate a will. In Tennessee, the key question is whether the person had sufficient testamentary capacity when the will or codicil was executed.
Look for Suspicious Circumstances: Undue influence claims may involve circumstances such as a confidential relationship with someone who benefits from the change, isolation or dependence, a beneficiary’s involvement in procuring the document, secrecy surrounding the change, or provisions that differ sharply from the person’s previously expressed intentions. If several of these circumstances are present, an attorney can evaluate whether there may be grounds for a Tennessee will contest.

Pros and Cons of Using a Codicil for Last-Minute Changes

One way to modify an existing will is through a codicil, a separate testamentary document that changes or supplements specific provisions of the original will without replacing it entirely. A codicil may be useful for limited changes, but in Tennessee it must satisfy the applicable legal requirements for executing a valid will. For that reason, using a codicil has both advantages and potential drawbacks.

Pros:

Efficiency: A codicil may be a practical way to make a limited change without replacing the entire will. It can be useful for changes such as naming a different executor or modifying a specific gift or beneficiary designation.
Legal Validity: A properly executed codicil can validly amend an existing will. In Tennessee, however, a codicil must satisfy the applicable legal requirements for executing a will, so it should not be treated as an informal amendment.

Cons:

Potential for Conflicting Provisions: Each codicil must be read together with the original will and any earlier amendments. When several codicils modify related provisions, inconsistencies or ambiguities can develop and make the estate plan more difficult to interpret.
Potential for a Will Contest: A codicil does not become suspicious simply because it was signed later in life. However, a substantial change may receive closer scrutiny when it is accompanied by other circumstances, such as declining health, a beneficiary’s involvement in preparing the document, a confidential relationship, lack of independent advice, or a significant departure from the person’s previously expressed intentions.

When Should You Challenge a Will?

You may have grounds to question a will if there is evidence of undue influence, lack of testamentary capacity, fraud, improper execution, or another issue affecting the document’s validity. Because the facts and legal requirements vary from case to case, several types of evidence may be important when evaluating a last-minute change:

Gather Evidence Relevant to Testamentary Capacity: Medical records, witness accounts, and other evidence concerning the testator’s mental condition may be important. A diagnosis of dementia or another cognitive disorder does not automatically invalidate a will. In Tennessee, the key question is whether the person had sufficient testamentary capacity at the time the will or codicil was executed.
Look for Evidence of Undue Influence: Undue influence does not always involve obvious threats or direct coercion. Relevant circumstances may include a confidential relationship with someone who benefited from the change, isolation or dependence, a beneficiary’s involvement in preparing or arranging the document, secrecy, or a substantial departure from previously expressed estate-planning intentions.
Identify the Legal Basis for the Challenge: Potential grounds for contesting a Tennessee will can include lack of testamentary capacity, undue influence, fraud, improper execution, forgery, and other defects affecting the validity of the document. An estate litigation attorney can review the circumstances and determine which, if any, legal grounds may apply.
Act Within the Applicable Deadline: A will contest is a formal court proceeding challenging the validity of a will that has been offered or admitted to probate. Tennessee law generally requires an action to set aside the probate of a will to be filed within two years after the order admitting the will to probate, although limited exceptions may apply. The burden of proof depends on the particular grounds and circumstances of the contest, making it important to evaluate the evidence carefully and act promptly.

Contact the Knoxville Estate Planning Lawyers at Inman, Stadler & Hill

Losing a loved one is difficult, and questions about unexpected changes to a will can make an already complicated situation harder. If a will was changed shortly before death, understanding whether the change reflects the testator’s genuine wishes or raises concerns about testamentary capacity, undue influence, or another issue affecting the will’s validity can help you determine what to do next.

If you have questions about a last-minute change to a will, contact the Knoxville estate planning lawyers at Inman, Stadler & Hill for a consultation. Our team can review the circumstances surrounding the change, explain your options under Tennessee law, and advocate for your interests throughout the probate or will-contest process.

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Are Stepchildren Entitled to Inherit Under a Tennessee Will?

July 17, 2024 by admin@anioncreative.com

According to a 2026 Pew Research Center analysis, about 17% of U.S. children under age 18 live in blended families. Pew defines blended families as those that include a stepparent, stepsiblings, and/or half siblings.

If you have a blended family, you may have questions about whether your stepchildren will inherit from you and what steps you should take if you want them to receive money, property, or other assets after your death.

This article explains how Tennessee inheritance laws generally treat stepchildren and how you can structure your estate plan to reflect your wishes.

Stepchildren Don’t Automatically Receive Inheritance

Senior couple discussing estate planning with a professional advisor

An unadopted stepchild generally does not have the same intestate inheritance rights as a biological or legally adopted child in Tennessee. If you die without a valid will, Tennessee’s intestacy laws determine who receives your probate estate, and an unadopted stepchild generally will not inherit from you solely because of the stepparent-stepchild relationship.

If you want an unadopted stepchild to receive property after your death, you generally need to provide for them through a will, trust, beneficiary designation, or another appropriate estate-planning arrangement. A stepchild who has been legally adopted is treated differently under Tennessee inheritance law because an adopted child is generally considered the child of the adopting parent for succession purposes.

If there is no surviving spouse or descendant entitled to inherit, Tennessee’s intestacy laws generally look next to the deceased person’s parents, then to siblings and the descendants of deceased siblings, followed by grandparents and descendants of grandparents. An unadopted stepchild is not added to that inheritance order simply because closer relatives are unavailable.

If no person is legally entitled to inherit under Tennessee law, the property may ultimately escheat to the State of Tennessee. For blended families, this makes deliberate estate planning important if you want an unadopted stepchild to receive part of your estate.

The Role of a Will in Estate Planning

A will allows you to direct how property governed by the will should be distributed after your death. Your beneficiaries do not have to be limited to biological or legally adopted family members. You can generally include stepchildren, friends, charities, and other individuals or organizations in your estate plan.

If you die without a valid will, Tennessee’s intestacy laws determine who receives your probate estate. An unadopted stepchild generally will not inherit from a stepparent through intestate succession solely because of the stepparent-stepchild relationship. If you want an unadopted stepchild to receive assets, you should address that intention through an appropriate estate-planning arrangement.

Including Stepchildren in Your Will

If you want to provide for stepchildren through your will, consider the following steps:

Create or Review Your Will: Work with an estate planning attorney to make sure your will clearly reflects how you want your property distributed, including any gifts you intend to leave to your stepchildren.
Identify Stepchildren Clearly: If you want an unadopted stepchild to inherit under your will, identify that person clearly and specify the property or share of your probate estate you want them to receive.
Review Your Estate Plan After Major Life Changes: Marriage, divorce, remarriage, births, adoptions, deaths, and changes in family relationships can affect your estate-planning goals. If your family changes, review your will and other beneficiary arrangements to determine whether updates are needed.

Legal Adoption of Stepchildren

Another way to change a stepchild’s inheritance rights is through legal adoption.

Once the adoption is final, Tennessee law generally treats the adopted child as the child of the adopting parent for inheritance purposes. In a stepparent adoption, the biological or legal parent who is married to the adopting stepparent generally retains their existing parent-child relationship. The rights of the child’s other legal parent must be addressed through the procedures required by Tennessee adoption law before the adoption can be completed.

Even after adopting a stepchild, creating or reviewing your estate plan is still important. A will or other estate-planning documents can specify what property the child should receive, how assets should be distributed, and whether additional planning—such as a trust or beneficiary designation—is appropriate for your family.

Additional Solutions for Ensuring Your Stepchildren Receive Assets

Other estate-planning tools can also be used to provide assets for your stepchildren after your death, including:

Create a Trust: A trust can allow you to set aside assets for a stepchild and establish terms governing when and how those assets are distributed. Depending on your goals, a trust can provide for biological children, adopted children, stepchildren, or other beneficiaries.
Use Beneficiary Designations: Certain assets, including life insurance policies and retirement accounts, allow you to name beneficiaries directly. Naming a stepchild as a beneficiary can allow that person to receive designated assets without relying solely on the terms of your will. Beneficiary designations should also be reviewed periodically to make sure they remain consistent with the rest of your estate plan.

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The Importance of Professional Guidance

Estate planning can be especially complicated for blended families, where Tennessee’s default inheritance rules may not reflect how you want property distributed among a spouse, biological or adopted children, and stepchildren.

At Inman, Stadler & Hill, our experienced Tennessee estate planning attorneys can help you review your will, trusts, beneficiary designations, and other planning documents to develop an estate plan that reflects your family circumstances and your wishes for the people you want to provide for.

Estate Planning for Blended Families

March 1, 2024 by admin@anioncreative.com

Estate planning can become more complicated when a family includes a new spouse, children from a prior relationship, stepchildren, or other beneficiaries with different financial needs and expectations. Without careful planning, the way property passes at death may not reflect how you intend to provide for each person.

For blended families, an estate plan may need to coordinate wills, trusts, beneficiary designations, marital agreements, and other planning documents to address how assets should be distributed among a surviving spouse, children, and other beneficiaries.

This article explains several estate-planning issues blended families should consider and the tools that may help structure a plan around their particular family circumstances.

Understanding Blended Families and Their Estate Planning Needs

Blended families can include spouses or partners who have children from previous relationships, as well as stepchildren, stepsiblings, and half siblings. These family structures can create additional estate-planning questions about how property should pass among a surviving spouse, children, stepchildren, and other beneficiaries.

A carefully structured estate plan can help clarify those intentions, coordinate different assets and beneficiary arrangements, and reduce the risk of disputes or misunderstandings after a death.

Estate Planning Challenges and Solutions

Estate planning for a blended family can involve competing financial interests, different beneficiary relationships, and questions about how assets should pass to a surviving spouse and children from prior relationships. Addressing those issues in advance can help make your intentions clearer and reduce the risk of conflict or unintended distributions.

Some of the most common estate-planning issues blended families should consider include:

Beneficiary Designations Trump Wills or Trusts
Beneficiary designations can determine who receives certain assets, including retirement accounts, life insurance proceeds, payable-on-death accounts, and other nonprobate property. Because these assets may pass according to the beneficiary designation rather than the terms of a will, those designations should be reviewed as part of the overall estate plan.

For blended families, this review can be especially important after marriage, remarriage, divorce, or other major family changes. Some retirement plans also give spouses specific beneficiary rights or require spousal consent before another beneficiary can be named, so beneficiary designations should be coordinated with wills, trusts, and other estate-planning documents.

New Spouse and Children Conflicts
One of the main estate-planning challenges in a blended family is balancing the financial needs of a surviving spouse with the assets you want children from a previous relationship to receive. Clear communication and coordinated planning can help reduce misunderstandings and make your intentions easier to carry out.

Trusts can be particularly useful in this situation. Depending on how the trust is structured, it may provide income or other benefits to a surviving spouse during their lifetime while preserving remaining assets for children or other beneficiaries. The trust should also be coordinated with beneficiary designations, property ownership, and any rights a surviving spouse may have under Tennessee law

Prenuptial Agreements Are Advised
A prenuptial agreement can be a useful estate-planning tool for some blended families. Before marriage, spouses can use an agreement to clarify how certain property rights and assets are intended to be treated and how those arrangements should coordinate with their broader estate-planning goals.

This can be particularly important when one or both spouses want to provide for a surviving spouse while also preserving assets for children from a prior relationship. Tennessee law gives surviving spouses certain statutory estate rights, so prenuptial agreements, wills, trusts, and beneficiary designations should be coordinated rather than considered separately.

Healthcare and Power of Attorneys
Advance directives for health care are especially important in blended families because they can clarify who should make healthcare decisions if you become unable to make those decisions yourself. Tennessee allows an advance directive to include treatment instructions and to name a healthcare agent who can act on your behalf when you lack capacity.

Clearly documenting your wishes and choosing the person you want to make healthcare decisions can reduce the risk of misunderstandings among a spouse, children from prior relationships, and other family members during a medical crisis.

5 Tips for Successful Estate Planning in Blended Families

Estate planning for a blended family may require additional coordination when spouses have children from prior relationships, separate assets, beneficiary-designated accounts, or different goals for how property should pass after death. A simple will alone may not address every issue that can arise.

Here are five issues blended families should consider when developing an estate plan:

Start with Open Conversations: When appropriate, discuss your general estate-planning intentions with the family members most affected by the plan. Clear communication can reduce misunderstandings and help a spouse, children, or other beneficiaries better understand how and why you structured the plan.

Review How Assets Are Owned and Transferred: Identify how major assets are titled, whether they are owned individually or jointly, and whether they have beneficiary designations or other transfer-at-death instructions. For blended families, coordinating these arrangements with wills, trusts, and a surviving spouse’s rights under Tennessee law can help make sure the overall estate plan reflects your intentions.

Use Trusts to Control the Timing and Terms of Distributions: Trusts can be useful for directing assets to specific beneficiaries and establishing when and how distributions should be made. For example, a trust may provide benefits to a surviving spouse during their lifetime while preserving remaining assets for children or other beneficiaries after the spouse’s death.

Consider an Independent Executor or Trustee: In a blended family, choosing a spouse or child to serve as executor or trustee can sometimes create concerns about favoritism or conflicting interests. Depending on the circumstances, an independent individual or professional fiduciary may be worth considering.

Evaluate Whether a No-Contest Clause Is Appropriate: A no-contest clause may discourage certain beneficiaries from challenging a will or trust, but it does not prevent every type of estate dispute. Its enforceability depends on Tennessee law, the language of the document, and the basis for the challenge.

Need Assistance with Your Estate Plan? Contact Us Today.

Estate planning for blended families often requires coordinating several documents and beneficiary arrangements. Clear communication, trusts, marital agreements, beneficiary designations, and thoughtful fiduciary choices can help create a plan that reflects your intentions and reduces the risk of misunderstandings among family members.

At Inman, Stadler & Hill, our Knoxville estate planning lawyers can review your family circumstances and help coordinate wills, trusts, beneficiary designations, marital agreements, and other estate-planning documents. Whether your family is traditional or blended, the goal is to create a plan that clearly documents your wishes and addresses how you want your property managed and distributed.

5 Major Things That Can Go Wrong if You Die without an Estate Plan

October 23, 2023 by admin@anioncreative.com

Death can be difficult to discuss, but planning for what happens afterward can prevent important financial and legal decisions from being left entirely to state law. An estate plan can provide instructions for how property should be distributed, identify the people who should handle certain responsibilities, and address other decisions that may affect family members after a death.

Without an estate plan, Tennessee law may determine how probate property passes, and family members may face additional legal and financial questions during the estate-administration process. In this article, we’ll look at five problems that can arise when someone dies without an estate plan and how working with a Tennessee estate planning lawyer can help you evaluate the planning options available.

1. Probate Nightmares

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When a person dies, some property may need to pass through probate. Probate is the legal process used to administer an estate, address valid debts and expenses, and distribute probate property according to a valid will or, when there is no effective will, Tennessee’s intestate succession laws.

Probate can involve court filings, administration costs, creditor claims, and delays before certain assets are distributed. A will can provide instructions for distributing probate property, while other estate-planning tools may help some assets pass outside probate. For example, property that has been properly transferred to a living trust may be administered according to the terms of the trust rather than through the probate estate.

2. Unintended Beneficiary Designations

Remarriage can create additional estate-planning concerns when either spouse has children from a previous relationship. If property is left outright to a surviving spouse, that spouse generally controls what happens to the property afterward. They may spend it, give it away, or eventually leave the remaining property to their own children or other beneficiaries. As a result, children from the deceased spouse’s prior relationship may ultimately receive less than the deceased spouse intended.

A carefully structured estate plan can help address these concerns by specifying how property should pass among a surviving spouse, children, stepchildren, and other beneficiaries. Depending on the circumstances, trusts and other planning tools may also allow a surviving spouse to benefit from certain assets during their lifetime while preserving remaining property for children or other beneficiaries.

3. Financial Stress on Your Heirs

Debts and other financial obligations can reduce the amount of property ultimately available to beneficiaries. During the administration of a Tennessee estate, valid creditor claims, administration expenses, funeral expenses, and any applicable taxes may need to be paid before the remaining estate property is distributed.

A carefully structured estate plan can help address these obligations in advance and may reduce unnecessary costs or complications. Depending on the circumstances, planning for asset ownership, beneficiary designations, trusts, and available funds to cover estate expenses can help preserve more of the estate for the people you intend to benefit.

4. Guardianship and Custody Issues

If you have minor children, your estate plan can identify the person you would prefer to serve as their guardian if no parent is available to care for them. In Tennessee, a surviving parent generally has priority, but a person designated by the parents in a will or other written document receives important consideration if a guardian must be appointed.

The court ultimately determines who should serve based on the child’s best interests, so naming a guardian does not guarantee that person will be appointed. However, clearly documenting your preference can give the court valuable guidance and may reduce uncertainty or disagreements among family members about who should care for your children.

5. Healthcare Decision Confusion

An important part of estate planning is documenting your healthcare wishes in case you become unable to make or communicate medical decisions for yourself. In Tennessee, an Advance Directive for Health Care can provide treatment instructions and name a healthcare agent to make decisions on your behalf when you lack capacity.

Without clear instructions, family members may be uncertain about who should make healthcare decisions or what treatment you would have wanted. Preparing an advance directive can provide clearer guidance to your healthcare agent, family members, and medical providers if you later become incapacitated.

How Do You Know When You Have Found the Right Estate Planning Law Firm?

Choosing the right estate planning attorney can affect how clearly your goals are understood and how well your estate-planning documents address your circumstances. Here are several factors to consider when evaluating an estate planning lawyer:

Estate Planning Experience: Look for an attorney with meaningful experience handling wills, trusts, powers of attorney, beneficiary planning, and other estate-planning matters relevant to your circumstances. The attorney should also stay current on changes in Tennessee and federal law that may affect estate plans.

Clear Communication: An estate planning attorney should be able to explain legal concepts, available options, and potential consequences in language you can understand. They should also take the time to listen to your goals, family circumstances, and concerns before recommending a particular planning strategy.

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Accessibility: Look for an attorney who communicates clearly, responds to reasonable questions, and keeps you informed about important steps in the estate-planning process.

Customized Advice: Estate-planning recommendations should reflect your assets, family circumstances, beneficiaries, and goals rather than relying on the same approach for every client.

Reputation and Client Feedback: Publicly available reviews and other information about an attorney’s experience and reputation can help you evaluate whether the attorney may be a good fit for your needs.

Professionalism and Trust: Estate planning often involves sensitive financial and family information. Look for an attorney who communicates candidly, handles confidential information appropriately, and approaches the representation professionally.

Knowledge of Tennessee Law: Estate-planning laws vary by state. An attorney familiar with Tennessee law can help address issues involving wills, trusts, probate, beneficiary planning, guardianship, and surviving-spouse rights.

Appropriate Resources: Consider whether the attorney or firm has the staff and systems necessary to prepare documents, communicate with clients, and address related estate-planning matters when needed.

Compatibility: Estate planning may involve an ongoing professional relationship as your family, finances, and goals change. Choose an attorney you feel comfortable working with and can communicate with openly.

Let Inman, Stadler & Hill Help You Develop Your Estate Plan

Estate planning can be useful for adults at many stages of life, not only those with substantial assets. A carefully prepared plan can help document your wishes, identify the people you want to make certain decisions, and coordinate how property should pass after your death.

At Inman, Stadler & Hill, our attorneys can review your circumstances, explain estate-planning options available under Tennessee law, and prepare documents designed to reflect your goals and family situation.

Contact us anytime for a consultation. Our Tennessee estate lawyers are ready to help you plan your family’s future.

5 Ways an Estate Planning Lawyer is Better Than Estate Planning Software

August 16, 2023 by admin@anioncreative.com

Online forms and estate-planning software can make it easier to prepare basic documents, and they may be appropriate in some situations. However, estate planning involves more than completing a standard form. The documents must reflect your family and financial circumstances, coordinate with other assets and beneficiary designations, and satisfy Tennessee’s legal requirements.

If you’re deciding whether to use a do-it-yourself service or work with an attorney to create a will or estate plan, it is important to understand the advantages and limitations of each approach.

Software programs and online apps aren’t lawyers.

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Estate planning can involve more than completing a standard form. Tennessee law includes specific requirements for wills and other estate-planning documents, and a plan may also need to account for trusts, beneficiary designations, powers of attorney, family circumstances, and the way particular assets are owned.

Working with an attorney who regularly handles Tennessee estate-planning matters can provide an opportunity to ask questions and address issues that standardized software may not identify. Some online services offer access to attorneys, but the level of legal review and personalized advice can vary considerably from one service to another.

Software programs and online apps can’t ask the right questions.

Standardized estate-planning programs generally rely on the information and decision paths built into the service. While some tools can adjust their questions based on a user’s answers, they may not identify every legal or financial issue that is relevant to a particular family. A conversation with an attorney may also raise questions about assets, beneficiaries, property ownership, or family circumstances that the client had not initially considered.

Software programs and online apps can’t give advice.

For some people, preparing basic estate-planning documents may be relatively straightforward. Others may have questions about how Tennessee law applies to their assets, family relationships, beneficiary choices, or long-term goals. Standardized software can provide forms and general information, but it does not replace individualized legal advice from an attorney who has reviewed the client’s particular circumstances.

An estate planning attorney can explain applicable Tennessee law, identify potential issues, discuss different planning options, and draw on experience handling similar estate-planning matters when recommending an approach.

Software programs and online apps can cost you more money.

Many people are attracted to estate-planning software and online services because of their relatively low upfront cost. For a straightforward situation, that may make a DIY option appealing. However, mistakes or omissions in estate-planning documents can sometimes create additional expenses later.

A document that does not comply with Tennessee law or accurately reflect the person’s intentions may need to be revised or properly re-executed. If a problem is not discovered until after the person’s death, family members may face additional probate expenses or even litigation. In some cases, those costs can outweigh the savings associated with preparing the documents without individualized legal advice.

Software programs and online apps don’t create easily understood wills.

Clear drafting is an important part of an effective estate plan. A will or other estate-planning document that contains conflicting provisions, omits important information, or uses unclear language can create uncertainty for family members and the people responsible for administering the estate.

Standardized estate-planning software may not identify every ambiguity, conflicting instruction, or missing detail that is specific to a person’s circumstances. An estate planning attorney can review the plan as a whole, clarify the client’s intentions, identify potential inconsistencies, and prepare documents designed to communicate those instructions as clearly as possible.

Contact Our Tennessee Estate Planning Lawyers Today

Because you can’t put a price on peace of mind—especially when protecting your final wishes and your loved ones—the advice, experience, and care you get from an experienced estate planning lawyer is priceless.

Estate planning software and apps are simply no match for attorneys who have helped countless people create their wills and estate plans, and countless more families resolve issues caused by unclear wills and estate plans.

Get your will or estate plan done right the first time and right away. Contact the Tennessee estate planning attorneys at Inman, Stadler & Hill for a consultation. We’ll discuss your needs and tell you exactly how we can help with your estate planning needs.

Answers to Frequently Asked Questions about Wills and Estates

May 19, 2023 by admin@anioncreative.com

If you’re confused about wills and estate planning, you aren’t alone. Deciding how to begin an estate plan can raise questions about wills, trusts, beneficiaries, powers of attorney, healthcare decisions, and what will happen to your property after your death.

Without appropriate planning, Tennessee law and the way particular assets are titled or designated may determine how property is transferred. Estate planning gives you an opportunity to make informed decisions about your property, the people you want to benefit, and who should be authorized to make certain decisions if you become unable to make them yourself.

At Inman, Stadler & Hill, our Tennessee estate planning lawyers help clients understand their options and prepare documents based on their individual circumstances and goals.

That’s why we’ve created this FAQ to address several common questions about wills and estate planning.

1. I don’t have a lot of money, assets, or property. Do I need a will or an estate plan?
Estate planning is not limited to people with substantial wealth. A will can direct how certain property in your probate estate should be distributed, while other estate-planning documents can address issues that arise during your lifetime.

Not every asset is necessarily controlled by a will. Property with a valid beneficiary designation or certain forms of joint ownership may pass outside the probate estate. However, if you die without a valid will, Tennessee’s intestacy laws may determine how property in your probate estate is distributed.

An estate plan may also include documents such as a durable power of attorney and an Advance Directive for Health Care to address financial and healthcare decisions if you become unable to make those decisions yourself.

2. Do I need an attorney to write my will or create my estate plan for me?
Tennessee law does not generally require an attorney simply for an attested will to be valid, but the document must comply with applicable legal requirements. Tennessee has specific rules governing how an attested will must be signed and witnessed, and errors in execution can create problems when the will is later offered for probate.

Online programs and estate-planning software can be useful in some situations, but standardized documents may not identify every issue involving family circumstances, property ownership, beneficiary designations, trusts, or other planning considerations. An estate planning attorney can review those circumstances, explain how Tennessee law applies, answer questions, and recommend planning options based on the client’s particular needs.

3. What is probate and how can I avoid it?
Probate is the legal process through which a court recognizes a will, appoints or confirms the person responsible for administering the estate, addresses estate obligations, and oversees the distribution of probate property.

Not every asset necessarily passes through probate. Assets with valid beneficiary designations, certain jointly owned property, and property held in a properly funded living trust may pass outside the probate process.

A revocable living trust can be one tool for reducing the amount of property that must pass through probate, but creating the trust alone is not enough. Property generally must be properly transferred to the trust for the trust to control it. Whether avoiding or minimizing probate makes sense depends on the assets involved and the circumstances of the estate

4. Can I change my will after it’s finalized?
Generally, yes. A will can be changed while the person making it has the legal capacity to do so and follows the applicable requirements.

One option is a codicil, which amends or supplements an existing will. In Tennessee, a codicil must satisfy the applicable requirements for executing a valid will. Another option is to prepare a new will that expressly revokes or replaces the earlier document.

Because family relationships, property, beneficiary choices, and other circumstances can change over time, it can be useful to periodically review an existing will and determine whether updates are appropriate.

5. Can my will get challenged by family members after I pass away?
A will can be challenged, but dissatisfaction with an inheritance does not by itself make a will invalid. A person seeking to contest a Tennessee will must have the required legal standing, and the challenge must involve a legally recognized issue concerning the validity of the will.

Depending on the circumstances, a will contest may involve allegations concerning testamentary capacity, undue influence, improper execution, fraud, or other validity issues. Unclear language can also create disputes over how particular provisions should be interpreted, although an ambiguity is not necessarily the same thing as a challenge to the validity of the entire will.

Careful drafting and proper execution can reduce the risk of avoidable uncertainty. An estate planning attorney can also help identify potential issues and prepare documents intended to reflect the client’s wishes as clearly as possible.

We Want to Help You Create Your Will or Estate Plan

An effective estate plan should reflect your circumstances, comply with applicable Tennessee law, and work together with the way your property and beneficiary arrangements are structured. Standardized forms may be appropriate in some situations, but individualized legal review can help identify issues that may not be apparent when completing a basic form.

If you have questions about preparing or updating a will or estate plan, contact the Tennessee estate planning attorneys at Inman, Stadler & Hill today for a consultation.

Let Us Assist with Your Will and Estate Needs

March 20, 2023 by admin@anioncreative.com

Creating a will or thinking about an estate plan can be uncomfortable, and it can be easy to postpone the process. However, planning earlier can provide more time to consider your property, beneficiaries, healthcare wishes, and the people you may want to make decisions on your behalf if you become unable to do so.

Wills and other estate-planning documents can also be reviewed and updated as family, financial, and personal circumstances change. Estate planning is not limited to people with substantial wealth.

At Inman, Stadler & Hill, we help clients evaluate their estate-planning options and prepare documents based on their individual circumstances and goals. Contact us today for a consultation to learn how we can help you.

What’s the Difference Between a Will and an Estate Plan?

A will is a legal document that can direct how property in your probate estate should be distributed after your death. It can provide for family members, friends, charities, or other beneficiaries. A will can also name the person you want to serve as personal representative of your estate and can identify the person you would prefer to serve as guardian for minor children if a guardian becomes necessary.

Not every asset is necessarily controlled by a will. Assets with valid beneficiary designations and certain other nonprobate arrangements may transfer separately from the probate estate.

An estate plan is broader. It may involve a will along with trusts, powers of attorney, an Advance Directive for Health Care, beneficiary designations, and other arrangements involving how property is owned or transferred. Estate planning can therefore address both what happens after death and who may be authorized to make certain financial or healthcare decisions during a person’s lifetime.

Is It Better to Have a Will or an Estate Plan?

Whether someone needs a relatively simple will or a broader estate plan depends on their circumstances. A will may address important issues concerning probate property and the administration of an estate, but it does not address every financial, healthcare, or asset-transfer issue that may arise.

A broader estate plan can coordinate a will with beneficiary arrangements, trusts when appropriate, financial powers of attorney, healthcare instructions, and other planning tools. Coordinating these parts of the plan may reduce uncertainty and make a person’s intentions clearer, although no estate plan can eliminate every possibility of a disagreement, legal challenge, or change in circumstances

Medical Directives in Estate Plans Are More Important than Ever

Estate planning can address more than what happens to property after death. It can also provide instructions concerning healthcare decisions if a person becomes unable to communicate or make those decisions independently.

In Tennessee, an Advance Directive for Health Care can be used to state treatment preferences and designate a healthcare agent to make decisions when appropriate. Creating an advance directive gives you an opportunity to document your wishes and choose someone you trust to act on your behalf if you cannot make or communicate healthcare decisions yourself.

Because medical circumstances can be complex and may change unexpectedly, clearly documenting those wishes and discussing them with the people involved can be an important part of planning.

The State Will Choose Who Raises Your Children if You Don’t Specify

Parents of minor children may also want to consider who should care for their children if the parents die or are otherwise unable to provide care.

Tennessee law permits parents to designate a person they would like considered as guardian in a will or another written document. That designation can carry significant weight, but it does not automatically determine who will serve. A court retains responsibility for appointing a guardian and must consider the child’s best interests.

Putting your preference in an appropriate written document can therefore give the court important information about whom you would trust to care for your children while recognizing that the final appointment remains subject to Tennessee law and the circumstances existing at that time.

Don’t Wait to Create a Will or Estate Plan—Contact Us Today

Estate planning can be useful at many stages of life. The appropriate plan will depend on factors such as your family, property, beneficiary arrangements, healthcare wishes, and financial circumstances.

As those circumstances change, wills and other estate-planning documents may also need to be reviewed and updated. The Tennessee estate planning lawyers at Inman, Stadler & Hill can discuss your goals, explain available planning tools, and prepare documents based on your particular circumstances.