Writing a will or asking for help with estate planning isn’t high on many people’s to-do lists. What happens when you’re left with no choice?
Instead of waiting until the last second, reach out to an Alabama attorney and ask them to help you with all the little legal issues that come with each new step you take in life. From federal income tax law regarding your new house to estate planning following a divorce, holding a little knowledge close at hand can save you a lot of stress. Choosing the right lawyer means looking at your situation from top to bottom and being honest with what you need. Are you interested in business law because you want to dip into entrepreneurship? Are you confused about elder law and how it applies to creating a will?
Here’s a simple breakdown to make sense of a complex field and get you started.
Wills
A will is a necessary document to support your friends and family after your passing. Unfortunately, many Americans are still ignorant as to the function of a will and how to create one. A recent study found over half of Americans between the ages of 55 and 65 don’t have a will, with this figure slightly higher at 65% for the general public. Unless you are one of the rare individuals exempt under a will, you are required to file an inventory with the Court no more than 60 days after your appointment.
Estate Planning
When you’re splitting a trust fund with another party or considering mediation after a divorce, an estate planning attorney is a professional to have by your side. There are a lot of small and large rules to keep in mind when looking after your estate, all of which are easy to attend to when you have a second eye. Unless your estate is valued at more than $5 million, for example, you are exempt from federal state taxes. This can also cross over into whether or not you’re taking a loan out on your house.
Loans
Are you taking out a loan for your monthly payment? Make sure you have a good attorney by your side. Fixed-rate home loans can be anywhere from 10 to 15 years, with the most popular by far being 30 years for the lowest payment possible. A common rule-of-thumb you can follow when planning out your payment method is to make sure your monthly mortgage doesn’t exceed 30% of your monthly income. If you want to nominate a Health Care Proxy and Durable Power Of Attorney, expect to spend anywhere from $500 to $1,500.
Medicaid
Medicaid planning is becoming more and more common as America contends with a rapidly aging population. Today Medicaid serves just over one million of Alabama’s nearly five million people, which is nothing to say of the additional need of will lawyers and trust fund attorneys. Back in 2014 Medicaid eligibility for adults without disability is limited to parents with incomes below 15% of the poverty line. Today Medicaid remains a reliable source of coverage for general care and maternity care. This is yet another factor to consider when tallying federal income tax law.
Income Tax
Last, but not least, reaching out to local legal help can make all the difference when learning about federal income tax law. This varies wildly depending on your income and what, exactly, you’re receiving taxes for. If you have assets in the six figures or higher, for example, it’s recommended you have a trust alongside your will. This way you can not just avoid taxes, but significantly minimize probate. Today there are over seven million mortgage borrowers in the country with rates of 4% or higher. Federal income tax law can be both a boon and a drain on your resources,
depending on how you approach it.
Writing a will or drafting a special needs trust can seem like a lot of work. Legal services will make sure you don’t have to do it alone.