With all the changes a new child brings to your life, you should take the time to add estate planning to your list of issues to consider if you are pregnant. Your estate plan should not only address the possibilities that can happen in your pregnancy, but also make provisions for your child’s care in the future. Your estate plans you make when you are pregnant can always be altered later as you choose, but you should always make sure you have something in place so you don’t have to worry in the event the plans are ever needed.

Medical Directives: Your pregnancy can cause various medical conditions that may require you to make tough choices. If you are not conscious or able to make choices at that time, you’ll need to have an advance directive ready to either state your choices in detail or appoint someone else to make them on your behalf. In some states a pregnant woman is limited in the kinds of decisions she can make with her medical directive, so talk to a lawyer about your state restrictions.

Trusts: If you’re a first-time parent, pregnancy is an ideal time to begin thinking about your child’s future and what would happen if you weren’t around. A trust can provide for the financial needs of your child and there are various kinds of trusts that can fit your needs and the needs of your child.

Guardianship: Should the unthinkable happen, you will want your child to be cared for by someone with the ability to provide excellent parental care. You can appoint a guardian in your Will who will care for the child if you and the child’s other parent cannot. You may also be able to use other methods depending on the state in which you live.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

As the economy shows slow evidence of improvement, many Americans struggle to afford their daily expenses. Housing foreclosures and unemployment are at record high levels, and too many Americans are finding it difficult to remain employed. For many, estate planning may be a back-burner consideration. However, estate planning may be even more important during the recession. We need to find a way to help our loved ones continue paying their expenses and financing their essential living expenses.

If you do not draft a Will, your assets may pass to family members who are able to take care of themselves. You want to make sure that you leave your assets to your closest family members or those who are unable to afford their daily living needs. Finding a way to pay your creditors currently may serve an important purpose. Your family members may be responsible for paying your creditors after your death. Setting up an appointment with an estate planning attorney today may help you preserve your assets, even during the financial crisis and uncertain economic times.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

You were smart enough to have an attorney draft a Will for you after speaking with you about your personal situation and estate planning wishes. Because of the important rights created by your Will, you should take the appropriate measure to store it in a safe place. In addition to the physical safekeeping of your Will, you should also make sure you appropriately discard any previous Wills or Codicils. If you fail to discard or otherwise cancel your previous Will, you may inadvertently create confusion. Your attorney can help you understand the importance of destroying previous Wills.

You may want to place your original Will in a safe deposit box or by placing it in a safe at home. If you put it in a safe deposit box, make sure someone else’s name is on the box too. Whatever you decide, you should make additional copies of this important document. There should always be one originally signed copy of your Will in your possession. Make sure you tell your family members, executor, and alternate executor, if applicable, about the location of your Will.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

As divorce continues to be prevalent in our society, Americans should understand how it may affect the various parts of our lives. During and after divorce, we must understand how divorce plays an integral role in estate planning.

As part of a divorcing couple’s written property settlement or divorce settlement agreement, one spouse may agree to name the other spouse as a Beneficiary under a life insurance policy. If this is the case, the spouse carrying the life insurance policy must maintain the policy on their former spouse’s behalf and should not change their designated Beneficiary naming anyone else. A divorce settlement or separation agreement may also include a provision stating that each spouse waives their legal right to receive an elective share under state law. In most states, a surviving spouse who was still married to the decedent at the time of their death has a choice in receiving an Elective Share under state statute by renouncing the inheritance received under the Will and claiming a potentially larger portion of their Estate.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

Continuing the three-part blog series covering joint tenancies in Indiana, this last blog covers a hypothetical Estate Planning scenario.

In Indiana, parents who die without a Will may have held their interests jointly as tenants by the entirety with right of survivorship. In this case, if a husband predeceases his wife, the wife would own his share upon his death automatically. If the wife then passes away without a Will, the entire real estate would be subject to Indiana’s intestacy statute. Assume for this hypothetical that wife and husband have three children between them. Each of their children was born during their marriage, and they did not have other children that weren’t children born to each other (no prior marriages). In this case, their children would most likely inherit their property as tenants in common with equal shares. To convert their ownership to a joint tenancy with right of survivorship, each sibling must agree to enter into a written deed stating such. In the absence of mutual agreement, a sibling could petition the court for a partition or forced division or sale of land.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

As we continue this three-part blog series covering the differences between tenancies in common and joint tenancies with right of survivorship, this blog post will cover terminology. Tenants in common have a right to own property in equal or unequal shares. For example, Tenant A can own a one-quarter interest, and Tenant B can own the remaining three-quarters. If Tenant A predeceases Tenant B, Tenant A’s share would pass to his/her heirs according to his/her Will.

If Tenant A does not have a valid Will or did not draft a Will, his/her share would automatically pass to his/her intestate heirs pursuant to the Indiana Code. Compare the tenancy in common to a joint tenancy with right of survivorship. In a joint tenancy with a right of survivorship, Tenant A and Tenant B would own their shares equally. Each Tenant has an indivisible interest to the entire real estate. If Tenant A predeceases joint Tenant B, Tenant B would automatically own the entire interest, including Tenant A’s. Tenant A’s interest would not automatically pass to their surviving heirs.

Although spouses commonly own their real estate as tenants by the entirety (a type of joint tenancy with right of survivorship for spouses), unmarried couples should consider the implications for estate planning purposes. Additionally, spouses may want to consider the implications for Estate Planning purposes, including tax implications.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

In this three-part blog series, we will discuss the differences between owning property as tenants in common and as joint tenants with right of survivorship. Although tenants in common and joint tenants with right of survivorship own property jointly, there is a significant Estate Planning difference between these two methods of owning property. A tenant in common has the legal right to devise his/her ownership interest to his/her heirs. A tenant in common’s ownership share does not automatically transfer to the surviving tenant. However, a joint tenant with right of survivorship cannot transfer his/her share to his/her heirs. Instead, upon his/her death, his/her ownership share automatically passes to the surviving tenant.

In Indiana, two or more residents can own property jointly as tenants in common or as joint tenants with right of survivorship. Married tenants with joint tenancies with right of survivorship are tenants by the entirety – a variation of joint tenancies with right of survivorship reserved for married spouses. Although both types of real property ownership require two or more tenants, they are very different ways of owning property. Tenants in common do not have survivorship rights. Instead, when one tenant in common dies, his/her share passes to his/her heirs. However, in a joint tenancy with right of survivorship, a joint tenant’s share automatically passes to surviving tenants.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

There are many benefits to creating a Trust before you die. By appointing a third party Trustee to manage your Trust property, you may ensure that children or other loved ones who are not financially responsible have someone take care of their finances. Furthermore, you can plan for the unexpected by appointing a Trustee to manage your Trust assets for the benefit of any young children or minor family members.

You can have your attorney specifically incorporate a provision allowing your child to claim ownership to the Trust assets once he or she reaches age 18. You can also include a provision extending the age at which a beneficiary becomes a legal owner. You may use a Trust to take care of an incapacitated child or other family member and direct a Trustee to use the assets within the Trust for the incapacitated family member’s benefit. Trust property is also not subject to probate after you die, and your beneficiaries can quickly receive their Trust benefits.

The attorney you hire to draft your Trust will go over your legal needs and should draft your Trust to help you meet those needs. Since a Probate Court is typically not involved in administering a Trust, your attorney should carefully draft your Trust document to cover unexpected events.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

A Trust is not a Will. Although there are many differences between these two instruments, the information within a Trust document is not public record, and a trustor can keep the information within the Trust private. A Will, on the other hand, must be filed through Probate Court. After filing, it becomes public information.

A Trust is not supervised by a Probate Court, and the Trustee can distribute Trust Assets accordingly without the Probate Court’s supervision. A Will can serve as a safety net if some of your assets do not end up in your Trust. If you purchase additional property after you created your Trust, for example, your new property may not go into your Trust if you do not specifically state such.

If you create a Trust, you may be able to remove Trust property and change Trust beneficiaries by simply amending that portion of your Trust. However, if you want to change the disposition of your Probate assets within your Will, you need to amend your Will by codicil or change it by invaliding it and creating a new one. Although there are important differences between a Trust and a Will, one does not take place of the other. In other words, you should discuss estate planning with your attorney and ask him whether you could benefit from a Trust and a Will.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.

A Living Trust is a written document allowing a Trustor to transfer property to a Trustee. The Trustor’s Living Trust is for the benefit of the trustor while living and than for the benefit of third party beneficiaries when he/she dies. There are many types of Trusts, but most individuals create them while they are still living.

To create a valid Trust in Indiana, the Indiana Trust Code requires that trustors be at least 18 years old, have the mental capacity to create them and include certain information in writing within the Trust. The Trust must identify the Trustee, the Trust property and the individual beneficiaries.

You may name anyone you want as your Trustee to manage your Trust Assets, as long as the company or individual you name is at least 18 years of age. Chapter 5 of the Indiana Trust Code, Rules Governing the Administration of a Trust, governs the administration of Trusts. The Indiana Trust Code requires Trustees to perform written accountings by delivering a written statement of the Trust accounts to each of the Trust’s beneficiaries or their appointed personal representatives on at least an annual basis. The Trustee’s annual statement must include all disbursements from the Trust and receipts into the Trust and all remaining Trust property valued on the date of inventory.

A Trustee’s annual written accounting can only be waived on a case-by-case basis by an adult beneficiary with the legal mental capacity to make such a waiver or by the Trustor or Owner of the Trust if stated in writing within the Trust document.

John M. O’Drobinak, P.C.+ is a member of the American Academy of Estate Planning Attorneys.

Our blog is for informational purposes only and is not intended to be advertising, solicitation or legal advice.