Atlanta Estate Planning Lawyer Blog

Lifetime gifts in contemplation of death, or so-called “deathbed gifts” are usually made by a surviving parent to a child. The parent and/or the child think the gift is a good idea, probably to facilitate a transfer of legal title and/or to avoid probate. Sometimes a deathbed transfer might be made because the parent does not have a will, and thinks the lifetime gift is a good way to take the place of a will.

First, probate is not that much trouble, at least in Georgia. Also, a deathbed will is just as easy to prepare as a deed, for example. But the real problem for the beneficiary relates to the tax basis of the property.

For lifetime gifts, the grantor’s tax basis (generally the original cost of the property) becomes the tax basis of the grantee/beneficiary. For property received by a beneficiary thru the probate process (a so-called “testamentary gift”), the beneficiary’s tax basis is the fair market value of the property at the time of the decedent’s death.

For example: Assume a parent purchased a lake home years ago for $25,000. Now the lake property is worth $175,000. The parent makes a lifetime gift of the lake home to a child. The child’s tax basis is $25,000 (the original cost of the property). Upon a sale of the property for $175,000, the child’s tax gain is $150,000.

Instead assume the child received the lake home after the parent’s death thru the deceased parent’s will. The child then sells the property for $175,000. The child’s tax gain is zero, because the child’s tax basis is $175,000 (the fair market value at the time of the parent’s death). Assuming the above example, the difference between a lifetime gift and a testamentary gift could be a tax difference of as much as $60,000! So beware. A lifetime gift can result in a lot of needless tax.

Oftentimes, there are many factors involved making the best decisions about making lifetime gifts or setting up an estate plan which minimizes or diminishes any unwanted or unforeseen tax consequences. Needless to say, it is well worth the savings and peace of mind to find out before it’s too late.

Continue reading " LIFETIME GIFTS MAY NOT BE YOUR BEST OPTION FOR SAVING ON YOUR ESTATE TAXES " »

As executor or administrator of a GA estate, you are entitled to the statutory fees for Georgia executors and administrators. These statutory fees are based on a percentage of assets taken into the estate, a percentage of income on estate assets during the administration of the estate and a percentage of assets distributed from the estate upon finalization and discharge of your fiduciary duty under the Official Code of Georgia Annotated and payable to an executor or administrator. Please note that these statutory fees as used in the Official Code of Georgia Annotated use the term; “personal representative” to refer to both an executor and administrator you should consult an experienced Georgia Probate attorney to understand these amounts.

IT IS VERY PROMISING IF NOT PROBABLE, THAT HIRING A GEORGIA ESTATE PLANNING AND PROBATE ATTORNEY AND LAW FIRM, WILL ACTUALLY SAVE THE ESTATE MONEY AND PRESERVE AND EFFECTUATE HARMONY AMONG THE BENEFICIARIES AND HEIRS OF THE ESTATE. THIS IS ESPECIALLY TRUE WHEN YOU RETAIN GA PROBATE ATTORNEY AND LAW FIRM WITH SIGNIFICANT PROBATE AND ESTATE DISPUTE LITIGATION EXPERIENCE. THE LAWYERS AND LEGAL TEAMS OF THESE FIRMS KNOW HOW TO RECOGNIZE POTENTIAL PROBLEMS THAT COULD ARISE AND PREVENT THEM FROM COMING TO FRUITION. BY THE SAME TOKEN, THE SAME GA PROBATE AND ESTATE ADMINISTRATION LAW FIRM CAN ADDRESS, REACT AND RESOLVE ANY PROBLEMATIC SITUATIONS BEFORE THEY BECOME MATERIAL ISSUES IN THE “EXPEDITIOUS” ADMINISTRATION OF THE ESTATE.

I believe almost everyone acting as a personal representative is better off with the help of an experienced Georgia probate lawyer. Despite this reality, many people named as personal representatives start out thinking they can handle the job without help. As time goes on and the duties and tasks required of them become more complicated, many realize they need the help of a professional Atlanta wills, trusts and estate lawyer.

Continue reading " GEORGIA PROBATE COURT: EXECUTOR AND ADMINISTRATOR FEES, SAVING THE ESTATE MONEY AND KEEPING THE PEACE AMONGST THE BENEFICIARIES AND HEIRS " »

Hiring a probate and estate administration attorney to guide and represent you through the Georgia probate process may very well be the wisest decision any executor or administrator may perhaps make in carrying out their fiduciary duties in the process of administering a GA estate in county probate court. The consequences of improperly administering a Georgia Estate during the estate administration process are serious and have dreadful consequences which include personal liability of the Georgia executor and administrator.

These consequences stem from a fiduciary duty that all executors and administrators have when they administer an estate. These fiduciary duties are usually not even known by any would be or currently acting executor or administrator until they inevitably emerge. And, the fact of the matter is, nobody is going to tell about these “unknown” pending concerns and why there are compelling reasons for retaining a GA probate and estate administration attorney and Georgia law firm for the for the following reasons:

1) Most laypersons and attorneys who do not have considerable experience in GA probate law and GA probate estate administration proceedings, don’t know about these intricate GA “probate” laws or how to properly follow and use them to the benefit of the estate and any executor or administrator of the estate;

2) That the payment of an experienced GA probate and estate administration attorney is a valid estate expense and can be paid from estate funds;

Continue reading " HOW DIFFICULT IS THE GEORGIA PROBATE AND ESTATE ADMINISTRATION PROCESS? " »

As a prospective or acting executor or administrator of a Georgia Estate, there are significant advantages in seeking and retaining the services of an experienced GA attorney or law firm. You likely will save money for the estate, understand and be counseled and advised on how to be fairly and fully compensated for finding, identifying and gathering the estate assets; transferring these assets into the estate name and account(s); making necessary and proper transactions, payments and distributions during the estate administration process; carrying out your fiduciary duties to the estate beneficiaries and heirs and any third parties with a binding legal interest in the estate; and, finalizing administration of the estate per Georgia law by distributing the estate assets to the proper beneficiaries or heirs of the estate. These are just an overview summary of the fiduciary duties you must carry out.

The estate administration process in Georgia probate court is much more in depth and complicated than the brief overview above and consulting an attorney and law firm that are experienced in Georgia probate and estate administration law is necessary and highly advisable. This is true whether the estate is straightforward or complex, small or large in monetary value or other assets such as real property, or whether there are only a few beneficiaries or many.

Continue reading " BEING EXECUTOR OR ADMINISTRATOR OF A GEORGIA ESTATE IS A DEMANDING UNDERTAKING " »

Atlanta, Georgia probate litigation Lawyers, who specialize in wills, trusts, estates and probate, as I do, tell clients and potential clients that meeting with an Atlanta, GA attorney to acquire an overview of how their assets are held is essential. This straightforward estate planning is indispensable because some assets are better suited when held or titled in a form under which the assets will pass outside of the purview of the Georgia county probate court. It is also a critical step to ensure that your assets pass to the persons or entities you desire and to avoid almost unavoidable fighting, bickering, probate disputes and probate litigation that develops when it is not clear where, and/or to whom, estate assets are legally to be distributed.

Unfortunately, most of us neglect to say why this is a good idea. In fact, if Georgia county probate courts didn't happen to be in charge of granting marriage licenses, most Georgians might never encounter the word “probate” until they lose a loved one and matters are mixed up and confusing to say the least. However, this is not the Georgia county probate court’s fault in any way, shape or form. It is the lack of planning on the individual’s part that causes the potential and oftentimes devastating confusion and fighting amongst family members. As such, it is critical to meet with an experienced Atlanta, GA probate lawyer to set up your estate plan in a fashion which will avoid all of the above-mentioned confusion. In short, the old sayings go: “an ounce of prevention is worth a pound of cure” and “greed brings out the worst in people”. The fact of the matter is, if there are estate monies, stocks, assets, properties, etc. which are not clearly designated to an heir or beneficiary under an estate plan formulated by a qualified Atlanta, GA estate planning and probate lawyer, people will fight “tooth and nail” to get at these assets and make them their own. And, you can rest assured they will not come alone, they will come with their own Georgia probate lawyers, accountants, experts and the like. An experienced attorney can create an estate plan for you that can help to prevent these disputes, or at least minimize them to a large extent.

Continue reading " MINIMIZE OR DIMINISH IMMINENT PROBATE AND ESTATE ADMINISTRATION DISPUTES " »