BERYS LAW | Business, Real Estate, Wills/Trusts

In today’s digital age, our lives are increasingly intertwined with online platforms, from social media accounts and email to cryptocurrency wallets and cloud storage. While traditional estate planning focuses on physical and financial assets, the question of what happens to your digital assets after your passing is equally important. Without proper planning, these assets could be lost, inaccessible, or even misused. Estate planning for digital assets ensures that your online presence is managed according to your wishes and that your loved ones can access critical accounts when needed.

What Are Digital Assets?

Digital assets encompass a broad range of online accounts and electronic records, including:

• Social media accounts (Facebook, Instagram, Twitter, LinkedIn)
• Email accounts (Gmail, Yahoo, Outlook)
• Cloud storage (Google Drive, Dropbox, iCloud)
• Online banking and investment accounts
• Cryptocurrencies and digital wallets (Bitcoin, Ethereum, PayPal, Venmo)
• Digital subscription...

Estate planning is often associated with older adults or retirees, but the truth is, it’s never too early to start. Whether you’re just starting your career, building a family, or nearing retirement, having an estate plan in place ensures your assets, healthcare decisions, and loved ones are protected. While the ideal age to begin estate planning varies based on individual circumstances, experts recommend starting in your 20s or 30s. Here’s why estate planning matters at every stage of life and when you should seriously consider starting the process.

Why Estate Planning Matters

Estate planning is more than just writing a will—it’s a comprehensive strategy to manage your assets, healthcare preferences, and financial decisions if you become incapacitated or pass away. Without an estate plan, your family may face legal hurdles, unnecessary taxes, and disputes over your estate. By planning ahead, you ensure your wishes are honored and that your loved ones are protected from financial and...

Estate planning is an essential process that ensures your wealth is distributed according to your wishes while minimizing tax liabilities and legal complications for your heirs. One effective strategy within estate planning is gifting assets during your lifetime. This approach not only benefits your loved ones but can also offer financial and tax advantages. Below are some key benefits of incorporating asset gifting into your estate plan.

1. Reduction of Estate Taxes

Gifting assets during your lifetime can significantly reduce the overall size of your taxable estate. The IRS allows individuals to gift up to a certain amount per recipient each year without incurring gift taxes, known as the annual gift tax exclusion. As of recent years, this amount is $17,000 per recipient (for individuals) and $34,000 for married couples. By strategically gifting assets over time, you can lower the taxable value of your estate, reducing potential estate taxes upon your passing.

Discover:  How to Min...

Many people put off writing a will, thinking it’s only necessary for the wealthy or the elderly. However, the truth is that having a will is a crucial step in protecting your loved ones and ensuring your wishes are carried out after you pass away. Whether you have substantial assets or just a few possessions, a will provides clarity and security for your family. Here’s why you absolutely need one.

1. Ensuring Your Assets Go to the Right People

Without a will, your estate—everything you own, from your home and bank accounts to personal belongings—will be distributed according to state laws, which may not align with your wishes. If you want to ensure that specific people, such as your spouse, children, or even a close friend, inherit your assets, a will is essential. Otherwise, your property might end up in the hands of someone you did not intend to receive it.

2. Avoiding Family Disputes

When someone dies without a will, family members may disagree about who should inherit what. T...

Estate planning is often associated with families passing down wealth to their children, but it’s just as important—if not more so—for singles without kids. Without a clear estate plan, the state will decide how your assets are distributed, which may not align with your wishes. Whether you have substantial wealth or modest assets, here’s how to ensure your estate is managed the way you want.

1. Create a Will

A will is the foundation of any estate plan. It allows you to specify who will inherit your assets, such as close friends, extended family, or charitable organizations. Without a will, your estate will be distributed according to state laws, which may not reflect your intentions. If you have no immediate family, your assets could end up going to distant relatives you may not even know.

Read more: Do You Really Need a Will? Here’s Why the Answer is Yes

2. Choose an Executor

Your executor is responsible for handling your estate after you pass away. This includes paying debts, ...

Estate planning is not a one-and-done process. Life circumstances, legal changes, and evolving financial goals often necessitate revisiting and revising your estate plan. An outdated plan can lead to unintended consequences, such as disputes among heirs, unnecessary taxes, or your wishes not being honored. Below are ten key reasons to update your estate plan to ensure it remains relevant and effective.

1. Major Life Events

Life events like marriage, divorce, the birth or adoption of a child, or the death of a loved one can significantly impact your estate plan. For instance, a new marriage may require adding your spouse as a beneficiary or updating your will to include children from a previous marriage.

2. Changes in Assets

A significant increase or decrease in your wealth, acquiring new assets like a home or business, or selling valuable property necessitates an estate plan review. Ensuring that your new or existing assets are distributed according to your wishes is critical.

3...

A Spousal Lifetime Access Trust (SLAT) is an advanced estate planning tool designed to reduce estate taxes, provide asset protection, and allow for wealth transfer while retaining indirect access to trust assets. This trust is particularly appealing for high-net-worth individuals who want to take advantage of the lifetime gift tax exemption while maintaining some level of control over the gifted assets.

Key Features of a SLAT

Irrevocable Trust

A SLAT is an irrevocable trust, meaning once it is established, the grantor (the person creating the trust) relinquishes control over the assets transferred to it. This characteristic ensures that the trust assets are excluded from the grantor's taxable estate.

Beneficiary Spouse

The grantor's spouse is named as the primary beneficiary of the SLAT. This allows the spouse to access trust distributions for their needs, indirectly benefiting the grantor during the spouse's lifetime.

Wealth Transfer

While the trust benefits the spouse, it is o...

A pet trust is a legally binding arrangement that ensures the care and well-being of your beloved pets in the event of your death or incapacity. It is a tool for pet owners who want to provide for their animals, guaranteeing they are looked after according to specific instructions and funded with adequate resources.

Many pet owners consider their animals family members, but pets are treated as property under the law. Without formal arrangements, your furry, feathered, or scaly companions could face uncertain futures. A pet trust offers peace of mind by creating a structured plan for their continued care.

How Does a Pet Trust Work?

A pet trust operates like other trusts. It involves three main components:

Grantor: The pet owner who establishes the trust and funds it.

Trustee: The person or entity responsible for managing the trust and ensuring the funds are used as intended.

Beneficiary: The pet(s) who will benefit from the trust.

When creating a pet trust, you outline detailed i...

The holidays bring families together, providing a rare opportunity for meaningful conversations. While festive gatherings are often associated with joy and celebration, they can also serve as the perfect time to address important matters—like your estate plan. Though it may seem like a serious topic for the holidays, discussing your estate plan during this time can ensure your loved ones are informed and prepared for the future.

Family Gatherings Allow for Open Communication

One of the most significant challenges in estate planning is ensuring everyone is on the same page. The holidays often bring family members together, creating a natural setting for open discussions. With many loved ones in the same room, it’s easier to address your plans, answer questions, and clarify your intentions.

Open communication can help prevent misunderstandings and disputes later. For example, explaining why certain decisions were made—such as designating an executor or allocating specific assets—can r...

Creating an estate plan might not seem urgent, but failing to have one can create significant complications for your family. An estate plan ensures that your assets, healthcare decisions, and personal wishes are honored after your death or if you become incapacitated. Without it, the state takes control, often leading to financial and emotional burdens for your loved ones.

Loss of Control Over Your Assets

When you pass away without an estate plan, your estate is considered "intestate." In this scenario, the distribution of your assets is determined by state law rather than your personal wishes. These laws vary but typically prioritize close relatives, such as spouses, children, or parents. While this may align with your desires, it leaves no room for nuance—such as providing for non-relatives, charities, or friends.

For instance, if you’re unmarried but in a long-term relationship, your partner may not inherit anything without explicit legal documentation. Similarly, minor children ...