Lawrenceburg Indiana Bankruptcy and Estate Planning Blog

If you are an Indiana resident who has a loved one with special needs, you may hope to provide for his or her long-term maintenance after your death by bequeathing him or her with an inheritance in your will. While your heart is in the right place, this situation requires careful estate planning. According to FindLaw, people with disabilities may become ineligible for government benefits if they inherit assets in one large lump sum. A special needs trust avoids this problem by putting the inheritance in the hands of a trustee who manages your property for your loved one's benefit.

Individuals with mental and/or physical disabilities can benefit from special needs trusts tailored to fit the unique lifestyle, specific needs and future considerations of each beneficiary. Otherwise, a special needs trust is similar to other types in that the trust lasts as long as it is necessary, either until the funds run out or the beneficiary dies, and a trustee manages and distributes the property to your beneficiary according to your specifications. If your intended beneficiary lacks the mental capacity to manage his or her own finances, the role of the trustee is particularly important.

If you are one of the many millennials in Indiana, you may be moving into your thirties and this may have you thinking differently about your life than you have up to this point. This new way of thinking might include long-term plans for the coming decade and possibly into retirement. Another thing you should also be considering is making an estate plan.

As explained by NerdWallet, an estate plan can benefit you and your family members if you were to die but also in many other situations. For example, a durable power of attorney gives another responsible adult the ability to manage your financial and other personal matters in the event that you are suddenly unable to do so. A durable power of attorney for health care grants another person the right to make important medical decisions for you if you cannot do so for yourself. These are things that may be needed after an accident.

Residents in Indiana who are creating a will or a trust will need to make many decisions. In addition to choosing what they want to happen to their assets after they die, these people will need to identify a person or a team of people that will be responsible for making sure their wishes are properly carried out. But, the reality is that there is far more to the job of an executor or a trustee than asset distribution.

As Forbes explains, there are many legal and financial responsibilities to being someone's trustee or executor. For these reasons, people should avoid rushing in to name someone to these roles based soley on relationship. These decisions should not be made by popularity vote and can benefit from being evaluated more like a business decision. An executor, for example, will need to ensure all taxes are properly filed and debts are paid before any assets are distributed.

Your parent, before passing away, named you the personal representative of their estate. You worry that because you do not know your exact responsibilities, you may not serve as the best personal representative.

Personal representatives make specific choices for their executor's property and assets after the executor has passed away. Your role involves serious responsibility, and you want to understand the basic tasks that a personal representative takes on before you make decisions about assets. Because of the quantity of work, you may find it necessary to hire an estate planning attorney to help you divide assets of your parent's estate. Doing so, you can properly serve as a personal representative for your loved one.