FAQs
Is a will enough or do I need a trust?
Do I have to come into the office to modify something in my plan?
What needs to change in my plan when my children turn 18?
We answer questions like these and many more in our collection of FAQs.
Is Creating a New Hampshire Revocable Trust Expensive?
Today more than ever, costs are an important factor in making any major decision. This is true even for a New Hampshire estate plan, something needed by every individual over the age of 18. Using a revocable trust as part of your plan may increase the initial, upfront cost; however, it often saves money over the long term. Revocable trusts are a cost effective estate planning tool that can dramatically reduce the time, expense, and complication involved in administering your estate after you are gone.
5 Ways Your New Hampshire Revocable Trust May Reduce Estate Administration Costs
How does a revocable trust help to reduce costs during an estate administration? The following are a few examples:
- Avoids probate court costs and filing fees. Every state has a series of fees associated with the various stages of the probate process, from the initial filing to the closing of the estate. This is especially true if you own property in more than one state. Without a trust in place, your loved ones would need to open a probate in both states, increasing the overall administration costs substantially.
- Potentially less legal time needed by the attorney helping to administer the estate. In most cases, administering a trust is far easier and more efficient than a probate administration. This can translate into less time needed on the part of the attorney who is assisting with the trust administration. The less legal time incurred, the lower the bill that ultimately needs to be paid.
- Avoids the need to obtain a bond. In some states, and especially New Hampshire, the personal representative of your estate will be ordered to obtain a bond in order to proceed with the probate proceeding. This expense is often avoided during a trust administration, as the trust can be written to specifically remove the need for this cost.
- Minimizes costs associated with delays in the administration process. Some of the costs associated with probating an estate are associated with the waiting period between the various stages of the court process. For example, until someone is appointed personal representative of the estate, no one has authority to manage and protect estate assets. These delays can become especially costly if you are the owner of a small business or real estate. With a trust administration, the successor trustee has this authority almost immediately.
- Potentially less money spent on trustee or executor fees. Whether your estate requires a probate administration a trust administration, the person in charge, either the personal representative (of a probate estate) or the trustee (of a trust) are typically entitled to reasonable compensation for their time. Since many probate administrations are more time consuming than trust administrations, the overall cost of the trustee fee may be less than the cost of the personal representative fee for services.
In addition to the cost savings, revocable trusts provide numerous other benefits, making them a cost effective and valuable estate planning tool. Contact us today to learn more by calling (603) 434-1770.
What is the process for forming a New Hampshire LLC?
For many New Hampshire residents, a newly created limited liability company can provide peace of mind when it comes to protecting assets. Some individuals form an LLC to hold title to a rental property in an effort to shield personal assets from the possibility of a lawsuit brought by a tenant. Other individuals form an LLC when creating a new business or when their existing business grows to the extent that liability protection becomes a real concern. Regardless of the reason, the process can be easy and efficient when overseen by a knowledgeable New Hampshire LLC attorney.
What is the process for creating an LLC in New Hampshire?
To form a limited liability company, your first step should be to contact an experienced attorney. Next, your lawyer will assist with the following parts of the process:
- Draft a Certificate of Formation for the new LLC. This requires making certain decisions including a name for the new company, choosing a principal address, and deciding whether you want to be a member-managed or a manager-managed LLC.
- File the Certificate of Formation with the New Hampshire Secretary of State’s Office. There are several means for filing; however, the quickest is typically to create an account and file online. After carefully reviewing your draft Certificate of Formation, the final version is submitted for approval.
- Obtain the approved Certificate of Formation. If you filed electronically, you will receive notice that the filing was accepted via email. The Certificate of Formation should be kept with the records of the company.
- Obtain a tax ID number. The employer identification number can be obtained online and typically takes just a few minutes. It is important to discuss the application with your attorney or accountant before attempting this yourself, as mistakes can be cumbersome to correct.
- Open a bank account for the LLC. This step is critical because co-mingling personal and LLC funds can create an opening for creditors to attack the liability protection of the LLC.
- Draft an Operating Agreement. Unfortunately, many people who file their LLC without the assistance of an attorney neglect this step. The operating agreement is important for many reasons, including the ability to dictate what should happen with the LLC if you become incapacitated or pass away.
While there is no requirement to use an attorney when filing an LLC, there are many benefits to obtaining the assistance of a knowledgeable lawyer as you move forward with the process. We are here to help.
Contact us today for a consultation by calling (603) 434-1770.
Does my child need an estate plan as he heads off to college this fall?
In the blink of an eye, your child suddenly goes from a toddler in diapers to a young adult heading away to college for the first time. While this bittersweet moment in time is a right of passage for parents everywhere, few realize the importance of making sure their son or daughter has proper estate planning documents in place before leaving. These essential tools make it possible for parents to act quickly and efficiently on behalf of their child in the event of an emergency.
Basic Estate Planning Documents Every Child Over Age 18 Needs
Estate planning documents are critical for every person, no matter what age. This includes young adults after they turn 18. At a minimum, every individual should have:
- Durable General Power of Attorney
- HIPAA Patient Authorization
- New Hampshire Advance Directives with Durable Power of Attorney for Health Care and Living Will
- Massachusetts Health Care Proxy with Medical Directive
These documents, in combination, allow a parent to immediately step in during an emergency to manage a child’s medical care, speak directly with medical providers, and manage a child’s personal information and financial assets. Unfortunately, many parents assume that because it is their child, they will automatically have these rights in place. If your child is over age 18, however, he or she is a legal adult. As such, you may be denied access to bank accounts, be unable to access important personal information, and struggle to oversee your child’s health care absent intervention from the courts.
Before your child leaves home this fall, whether it be to attend college or to set out on his or her own for the first time, take the necessary steps to know that you can act quickly in the event of an emergency. We are here to help you obtain that peace of mind so that you can focus on enjoying your child’s first big life steps into adulthood. We make this process quick, easy, and painless, by offering a Back to School Package for all children over age 18 at a very affordable cost.
Contact us today for more information by calling (603) 434-1770.
How do I know if I need a revocable trust as part of my estate plan?
- You have minor children. Holding assets in trust for their benefit avoids the needs for probate court involvement in managing the inheritance and helps to ensure your assets are put to their best use while the kids are young.
- You own real estate. If you do not want your loved ones to have to probate your estate after you pass away, owning real estate in trust allows for a quick and easy change of ownership without court involvement.
- You want to make things easy on your loved ones if you become incapacitated or pass away. Administering a trust is a lot easier, faster, and typically less expensive than going through a full probate administration.
- You own property in more than one state. If you own probate in more than one state, a trust can help avoid the need to open up multiple probate administrations in the various states.
- You have concerns about your beneficiary inheriting assets outright. Worried about a potential divorce, bankruptcy, or lawsuit involving any of your beneficiaries in the future? Holding the assets in trust can help protect their inheritance.
- You want to have a say in what happens to your assets after you die. Leaving assets to a loved one through a will is effective. Unfortunately, wills must still pass through the probate process, and the assets are simply distributed to the beneficiaries. Trusts not only avoid probate, they also allow you to exert control over the assets for many years into the future.
My loved one passed away and I’m named as the executor of the will, what do I have to do next?
Five First Steps for a New Hampshire Executor During Probate Administration
What should you do next after your loved one has passed away? The following
are five suggested initial steps:
- Contact an experienced Hampton probate administration attorney. The guidance of a knowledgeable professional can help ensure that you are fulfilling all of your responsibilities as a personal representative. It can also help lighten your load by sharing many of the necessary estate administration tasks.
- Carefully review the last will and testament. This document will not only list your name as personal representative of the estate, it will also state who should receive the assets of the estate and who should be appointed guardian of any minor children.
- File the will. In New Hampshire, wills must be filed with the probate court within 30 days of date of death.
- Prepare and file the necessary paperwork to obtain your appointment as personal representative of the estate. Until the court grants its approval, you will not have authority to take action in your capacity as executor.
- Locate the assets of the estate. Once you have your appointment as personal representative, you are responsible for safeguarding and managing these assets.