Monthly Archives: July 2020

Estate Planning Basics as Children Head Back to School During the Pandemic

Oklahoma public schools are poised to return on August 10th. Understandably, going back to school during the COVID-19 pandemic has given many people time to think about the strengths and weaknesses of the system. Even if you work somewhere other than a school or hospital, back to school is one of the best times of the year to make sure that everything in your house is in order, including your estate plan.    Why You Need an Estate Plan   While many people think of wills when they think of estate planning, there are many other critical documents that a person should utilize to plan for death or incapacity. While it is a great first step to write these documents, it is just as good an idea to continuously revisit these documents after they are created to make sure that they still reflect your intentions.   Other Documents to Consider Including in Your Estate Plan   Besides a will, some of the other valuable documents that you should consider utilizing as a part of your estate plan include:   Trusts: There are many kinds of trusts that can be utilized to achieve various purposes. Most trusts involve a designated individual     Read More

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Four Essential Inherited IRA Rules That Beneficiaries Should Know

If you are like one of many people who inherited an individual retirement account (IRA) this year, you likely have countless questions involving estate planning and taxes. While it can be a financial advantage to inherit an IRA account, there are still taxes to worry about, and making one wrong decision can raise the attention of the Internal Revenue Service. Some people decide not to make any decisions on how to handle an IRA account without first speaking with a knowledgeable estate planning attorney. It can also help to understand some vital but often overlooked rules addressing how IRA accounts must be handled.    Do Not Forget About Year-of-Death Distributions   One challenge presented by IRAs is deciding if its creator took a required minimum distribution in the year that he or she passed away. If the creator failed to take a required minimum distribution this year, the beneficiary must make sure this requirement is met. Remember, however, if the creator had not reached the age of 70 and a half by the time he or she passed away, there is no year-of-death required distribution.    Your Situation Influences How You Handle the IRA   If you inherited an IRA,     Read More

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Three Things to Know About Oklahoma Spendthrift Trusts

A spendthrift trust refers to a type of trust that lets beneficiaries inherit money without the ability to decide how the money is spent. These trusts are particularly helpful when an heir lacks the responsibility necessary to manage assets. Instead, these trusts grant the authority to determine how assets are spent to an independent trustee, who makes all decisions about how funds should be used for a recipient’s benefit. Because spendthrift trusts play an important but complex role, this article reviews three things to understand about the way in which these trusts operate.   How Spendthrift Trusts Work   These trusts prohibit beneficiaries from borrowing or spending against trust funds. The trusts are also created to prevent creditors from seizing any assets in the trust to pay debts owed by the beneficiary. To be effective, a spendthrift trust must contain precise language. Oklahoma as well as many other states recognize spendthrift trusts.    The Reasons Why People Create Spendthrift Trusts   There are several reasons why people create spendthrift trusts, but some of the most common advantages include:   Creating a trust is a powerful way to make sure that your beneficiaries receive adequate care and protection even if you     Read More

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Critical Steps to Take After the Death of a Loved One

While we hopefully can all weather the COVID-19 pandemic safely, the truth is that some Oklahomans will pass away as a result of the virus. Losing a loved one is an overwhelming and challenging process. Rather than focus on administering an estate, you should instead focus on you and your loved ones coping and safely weathering the loss. The following outlines some helpful steps to take after losing a loved one.   Focus on Yourself and Your Family   There can be an overwhelming number of odd tasks to tackle after the loss of a loved one ranging from putting things in boxes to filling out paperwork. Rather than let yourself get overwhelmed with all there is to do, try to focus on what is essential during this difficult time. This means making sure that you take adequate care of not just your health, but also your family members.   Avoid Making Sudden Decisions   Following the loss of a loved one, many people find themselves overcome with difficult emotions and struggling to think clearly. To avoid making any undesirable mistakes during this difficult time, it is critical that you avoid making any sudden major decisions.   Understand Power of     Read More

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Making an Estate Planning “Football” During the COVID-19 Pandemic

We often discuss the various types of estate planning documents and their value, but it is just as important to realize that an estate plan does little good if the key people either do not know about the estate plan or are unable to access key documents after a person’s death or incapacity. The need to make sure that your loved ones can quickly access your estate planning documents has become even more important as the COVID-19 pandemic accelerates in Oklahoma and the risk grows of people suddenly falling ill or ending up incapacitated. It is a common occurrence after a person unexpectedly passes away or becomes incapacitated that their loved ones must go on a hunt to locate that individual’s estate planning documents. This problem can be avoided by having your estate planning documents current and contained in a specific location.  Some have suggested creating a “nuclear football” during the COVID-19 pandemic, which refers to the briefcase that the President of the United States supposedly uses to authorize a nuclear attack. To avoid leaving your loved ones unable to locate your critical estate planning documents, it is a good idea to create your own version of a nuclear football     Read More

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