Yes. You are just as likely, if not more so, to need a will than someone who is married.

Without a will, your property may not pass to the people you intend. Your estate would follow a specific order set out in the Wisconsin statutes. If you do not have children or a spouse, all your assets would be split evenly between your parents. If they passed away before you, your assets would be split evenly between your siblings, and perhaps their children as well. If you create a basic will, you can control who receives your property.

Having a will also makes things much easier for your relatives who survive you. As part of drafting your will, you would name a Personal Representative, who will be the person in charge of reading your will and distributing your assets. Without a named Personal Representative, a judge would have to appoint someone to do this.  It can also be difficult for surviving relatives to find all your assets and figure out how to open a probate action and distribute your property.

If you die without a will, a probate judge will appoint a person to be the Personal Representative of your estate to distribute your property. This person may not be the person you would have liked to go through your personal property and financial records. Wisconsin law will determine who receives your property if you do not leave behind a valid will or trust. These people may not be the ones you would have wished to receive your assets, and they may not be the people most deserving, or most in need, of your assets. In general, the law will give your assets to the people most closely related to you. If no relatives can be located, your property will go to the state.

A person who passes away without a will is said to be Intestate. If you live in say Milwaukee, the Wisconsin Statutes in sec. 852.01 set out a series of rules to control who receives the assets of an intestate estate.

If the decedent (the person who passed away) leaves behind a spouse, and does not have any children from a prior relationship, then that spouse inherits the entire estate.

If the decedent has children from a prior relationship, and leaves behind a spouse, then the spouse keeps their half of the couple’s marital property, and inherits one half of the decedent’s individual property. The other half of the decedent’s individual property gets divided equally among all of the decedent’s children.

If the decedent was unmarried at the time of death, and had children, then the decedent’s assets get divided equally among each of their children. If any of the children had passed away before the decedent, then that child’s share gets divided equally among that person’s children.

If the decedent did not leave behind a spouse, children, or grandchildren, then their assets get divided between their parents.

If there are also no surviving parents, then the assets get divided equally among the grandparents, if living, or else among the grandparents’ descendants.

And finally, if there are no living heirs of any kind as described above, the decedent’s assets are transferred to the State.

A will sets out your wishes for how some of your assets will be disbursed after your death. It can set out an order of inheritance, depending on which of your relatives survive your death. A will names a Personal Representative who is responsible for carrying out the wishes of your will. Naming a Personal Representative will avoid the need for a judge to appoint one, and you can eliminate the need for the Personal Representative to post a bond with the court. You may also be able to avoid the need for ongoing court supervision of your estate.

A will can name a legal guardian for your minor children, and thus eliminate the possibility that a judge would have to choose a guardian. A will can create a trust after your death to set aside funds to provide for the care and well-being of your children. It can avoid the need for court supervision of the minor children’s assets.

A will only governs assets that are a part of your Probate Estate. Your will does not govern the distribution of Non-Probate property, such as real estate jointly owned with the right of survivorship, or IRAs or insurance policies that have designated beneficiaries.

A will cannot give someone the power to control your finances while you are still alive, and it cannot authorize someone to make healthcare decisions for you. A will generally does not authorize someone to make decisions regarding a funeral or burial.

In simplest terms, a Trust is a private document that allows a third party, called a Trustee, to control assets on behalf of another person, called a Beneficiary. Trusts can specify rules for how and when the assets are to be used.

Assets in a Trust may be be able to be passed outside of the Probate process, which generally save time and expense.

There are two major categories of trusts: A Revocable Trust, and an Irrevocable Trust.

A Revocable Trust allows you to retain control of your assets during your lifetime. You can alter it or dissolve it at any time during your lifetime. A Living Trust is a form of a Revocable Trust. Revocable Trusts may help you avoid Probate. They are still subject to Estate Taxes.

An Irrevocable Trust transfers assets out of your control. It can generally avoid Estate Taxes and the need for Probate. An Irrevocable Trust, as the name suggests, cannot be altered or dissolved after it is created.

Following are common examples of Trusts that may be part of a comprehensive estate plan:

Testamentary Trust: This Trust is created by the provisions of a Will, and goes into effect after your death. This is generally subject to Probate and to Estate Taxes.

Marital or “A” Trust: This Trust provides benefits to a surviving spouse, and is included in the taxable estate of the surviving spouse.

Bypass or “B” Trust: This Trust is often established along with a Marital Trust at the death of the first spouse. It is created to make full use of of the Federal Estate Tax Exemption for each spouse.

Irrevocable Life: This trust excludes life insurance proceeds from your taxable estate.

Qualified Terminable Interest Property Trust (QTIP): This trust provides income to a surviving spouse until their death, when the assets then go to additional beneficiaries. This can take advantage of the full Estate Tax exemption. It is often used in second marriages with children from a prior marriage.

Charitable Trust This trust provides certain assets to a charity, with the remainder going to other beneficiaries.

This is not a simple question. Both estate planning strategies have pros and cons, and you should consult with an attorney to decide which plan makes the most sense for you.  In recent years, there has been a lot of discussion about using Revocable Trusts in place of traditional Wills, and while this plan is the most advantageous for many families, it is not right for everyone.  As with any estate planning method, there are both positives and negatives.

Advantages of Using a Revocable Trust:

• It can avoid Probate. This is the most common reason a Revocable Trust is used. To the extent a Revocable Trust is funded during the person’s lifetime, or provision is made for the transfer of assets following their death, Probate is avoided. This means you avoid court fees, inventory filing, notice, and legal expenses.
• It is more confidential. If the Revocable Trust is fully funded before the settlor’s death, the details of the trust can remain confidential.
• Court supervision is generally not required. In Wisconsin, a trust is not subject to continuing judicial supervision unless specifically ordered by the court.
• It is faster. Without judicial supervision, a Trustee can act quickly if necessary to disburse funds or transfer assets. It is not necessary to wait for approval from a judge.
• It provides for management of property in a different state. If the estate is subject to Probate, and real estate is owned in a different state, it is necessary to open ancillary Probate in that state. However, a Trust can oversee property in other states, if the property was transferred into the Trust during the lifetime of the Settlor.
• There are few income tax implications for a Revocable Trust.  Because the creator of a Revocable Trust retains the power to revoke the Trust, they are treated as the owner of the trust assets for income tax purposes. The Trust is disregarded as a taxable entity.

Disadvantages of Using a Revocable Trust

• The Trust Must be Properly Funded. The Settlor of a Trust must transfer their assets into the name of the Trust. This requires opening bank accounts or investments in the name of the Trust, and retitling property in the name of the trust. When new assets are acquired, after the Trust is created, care must be taken to ensure the assets are properly titled.
• The Initial Costs of a Revocable Trust are Generally Higher. Properly drafting a Trust generally requires more legal work than the drafting of a will. It generally requires the client to spend more time with the attorney to discuss how the Trust will be funded and how it will operate. Properly creating a Trust requires the drafting of additional documents, such as a Marital Property Agreement and a Pour-Over Will, to ensure the Trust is fully funded.

There is not a single answer as to whom you should name as the Personal Representative.

For many people, it makes the most sense to name your spouse or the person who would be the primary beneficiary of your will. That person will have the strongest interest in making sure the probate process goes smoothly, and they will likely have the most knowledge as to the nature and location of your assets.

For some people, it may be advisable to appoint a person who will not be a beneficiary of the will, so they will not have a potential conflict of interest. This may reduce the chances of a beneficiary accusing the personal representative of not acting properly or taking advantage of their role. Particularly with larger or more complex estates, you may want to name a professional such as an accountant or attorney, even though they would be entitled to fees for their work.

You always want to name at least one successor personal representative, in case the first person you chose has passed away or is unwilling to perform. You also want to speak with the named personal representative to make sure they are willing to act.  This will avoid the need for a court to name a personal representative for you, who may not be a person you would have wanted to have the role.

Since Facebook began, there has never been a suitable method of controlling your Facebook account after your death. There was no mechanism to notify Facebook what you would want to have happen to your account after your account, and to whom you would want to give control. Following your death, a relative could petition Facebook to deactivate your page, or they could request it be “memorialized”, by freezing the account in place.  But there was no manner to designate who can access your account, or specify what you want to have happen to it.

Now, Facebook gives users the opportunity to specifically control how their account will be handled after their death. Users can now designate a friend or family member on Facebook as a “Legacy Contact.” This person will be able take the following actions following your death:

• They can change your profile picture and cover photo.
• They can write an announcement that will appear at the top of your timeline.
• They can accept friend requests on your behalf, from people who weren’t previously Facebook friends with you.
• They can be given the option to download an archive of your posts and photos.

The Legacy Contact, however, will NOT be able to edit or delete your posts, so any embarrassing photos or comments will remain. They will not be able to view your direct messages. They will also not be able to make posts from your account that appear to be from you.

Along with traditional estate planning, it is strongly recommended that you take steps to protect and control your digital content after your death. You should always make sure your intended beneficiary has access to usernames and passwords for your online accounts, both financial and social media. Now, with a few clicks, you can ensure that your Facebook account will be properly handled after your death.

To make these changes in Facebook, go to Settings, then Security, then Legacy Contact.

Meanwhile, Google offers a similar service to control your Gmail and other Google accounts after your death. Delicately called the “Inactive Account Manager”, you can set your Google settings so that after a designated period of inactivity – 3, 6, 9, or 12 months – Google will attempt to contact you by text and email. If you do not respond, Google will take specific actions based on your settings. You can have your data deleted from all your accounts. Or, you can have a designated person receive data from Google services such as Gmail, Drive, and Google+.

Yes, but only a limited manner. For many Wisconsin residents, their Packers season tickets are one of their most prized possessions, and are often passed down from generation to generation. However, the Packers organization places strict rules on how season tickets can be inherited. Planning for the transfer of your Packers season tickets should be discussed as part of your overall estate plan.

If you “own” Packers season tickets, what you really own is an opportunity to purchase a set of tickets each year. The tickets themselves do not give you ownership of any property; rather, they provide you with a revocable license to sit in particular seats under specific circumstances. You do not own your tickets in the same way you own a vehicle or other tangible property. Thus, the Packers organization is allowed to set their own rules for how you can transfer your tickets upon your death.

Upon your death, your surviving spouse can request the transfer to his or her name. If there is no surviving spouse, your surviving children can request a transfer, if they all agree on the recipients.

You can also place a provision in your will to transfer the tickets, but only to a “family member”, which the Packers define as a spouse and “blood relative” who are not more than first cousins. Even if you place a specific provision in your will, you cannot transfer your tickets to friends or more distant relatives; the Packers will not honor the transfer.

In Divorce actions, the ownership of Packers season tickets are occasionally in dispute. Upon a divorce, the Packers will honor retention or transfer between spouses, pursuant to the divorce agreement. Without an agreement, the tickets will revert to the control of the Packers.

When your estate goes through Probate after your death, your tickets will have to be valued along with your other assets. There is no clear rule for how the right to purchase season tickets are valued, since you can not buy or sell your right to purchase tickets on the open market. However, the consensus seems to be to value the tickets according to the Seat User Fee, as you are entitled to a refund of this amount if you turn in your tickets.

This is one of the most common questions asked of estate planning attorneys. Many people are concerned about having to pay excessive estate taxes when they die.  However, you probably will never have to worry about paying any Estate Taxes.  Last year, 99.86% of all estates paid no estate taxes.

Currently, there is an Estate Tax exemption of $5.34 million. That means if the total value of your estate upon your death is less than this amount, you will pay no estate taxes at all. In addition, with the proper advance planning, your surviving spouse can use any exemption amount not used by you, meaning that as a couple you can have over $10 million before you are subject to estate taxes.

If you believe you may have an estate worth over $5 million, you still may be able to avoid paying a significant amount of estate taxes with the proper preparation.

No – good news to you Milwaukee area residents. Currently, Wisconsin does not have an Estate Tax. Wisconsin has had an Estate Tax in the past, but beginning for all deaths occurring on January 1, 2008, Wisconsin does not collect any Estate Taxes.

The only potential Estate Tax you will have to worry about is the Federal Estate Tax, which currently has a $5.34 million per-person exemption.

No. As a general rule, an inheritance is not considered “income,” so you will not have to report your inheritance on either your state or federal income tax return.

However, you may later have to pay capital gains taxes on any inherited property or investments that you later sell,, if the asset appreciates further after you inherit it. For instance, if you inherit a house that is valued at $200,000 at the time of the decedent’s death, you will not owe any income taxes, and you will also not owe any capital gains taxes even if the decedent initially bought the property for only $100,000.  However, if you sell the house several years later for $250,000, you will owe capital gains taxes on that $50,000 increase in value.

You will also owe income taxes on income generated from the assets you inherit. For instance, if you inherit an IRA or 401(k), you will have to pay income taxes on any distributions you take out.

We have to keep in mind there are two different taxes to keep in mind: Estate Taxes, and Income Taxes.

Yes, as a general rule, life insurance proceeds are subject to Estate Taxes. Keep in mind, the Estate Tax exemption is currently $5.34 million, so if a total estate, including life insurance proceeds, is under this amount, there will be no Estate Taxes due. If the value of the life insurance proceeds may push the estate above the Estate Tax exemption, there are planning strategies that can be used, including the creation of a Life Insurance Trust.

However, as a general rule, life insurance proceeds are not subject to Income Taxes. Regardless of value, the beneficiary of the life insurance proceeds does not have to pay income taxes on the funds received.

Every individual receives an annual gift tax exemption of $15,000. Thus, every calendar year, you can give each recipient up to $15,000, with no concern about paying gift taxes, and without having to file a gift tax return. This is a “use it or lose it” exemption; it cannot be carried over from year to year.  If you are married, you and your spouse can give a combined $30,000 per recipient each year.

Even if you gift over $15,000 to a person in a year, this does not mean you will have to pay gift taxes on that amount. Rather, any amount over the annual exemption simply counts against your overall estate tax exemption. Currently, this combined exemption is $5.34 million dollars per person, and it increases each year based on inflation. For instance, if you give a person $20,000 in a year, the first $15,000 will be exempted under the annual exemption, and the remaining $5,000 will be subtracted from your lifetime $5.34 million exemption.

In addition, there are several categories of gifts that are completely exempt from the gift tax, regardless of amount. You do not owe any gift taxes on any gifts to your spouse, to charities, or to 529 college savings plans, for instance.

A Durable Power of Attorney for Finances gives authority to another person, called an agent, to make financial decisions and transactions on your behalf. It is called “durable” because the authority survives even if you become incapacitated and are no longer able to make decisions for yourself. However, a Power of Attorney does not survive after your death; you will need a will or other estate planning document to control how your assets are managed after your death.

Durable Powers of Attorney can, if you choose, grant very broad powers to your agent. In addition to managing your bank accounts and investments, your agent can also be authorized to buy or sell real estate, file lawsuits, give gifts, and many other actions.

A Durable Power of Attorney for Health Care Decisions gives you the ability to appoint a family member or friend, 18 years or older, to make health care decisions for you if your doctors determine you can no longer make your own medical decisions.

You can give this person very broad authority to make very important decisions regarding the type of health care you wish to have if you become incapacitated and where there is no hope for recovery.  Your agent will have authority to make informed decisions regarding the right to accept, maintain, end, or refuse any care, treatment, or services to diagnose or treat a physical or mental condition. You can an allow an agent to order the withholding or withdrawal of a feeding tube, or other procedures meant to prolong your life.

A Power of Attorney for Health Care Decisions is different from a Living Will (Declaration to Physicians).  In a Declaration to Physicians, you can specify your wishes about life-support machines or feeding tubes if you become terminally ill or lapse into a persistent vegetative state.  A Declaration to Physicians does not, however, name a specific person to make decisions for you.

Yes, at Margerie Law, we offer virtual estate planning consultations to customers across the state of Wisconsin. If you’re too far to drive in person to our office or would just prefer the convenience of a virtual meeting, contact us today. Virtual estate planning services provide a convenient and secure way for individuals to manage their estates without needing to attend an in-person consultation. These services allow you to work with an experienced attorney like our team at Margerie Law from the comfort of your home, discussing important matters such as wills, trusts, powers of attorney, asset protection, and more. With virtual estate planning services, you can create a comprehensive plan that is tailored to address your individual needs and goals without ever having to leave your house. Working with an experienced attorney remotely ensures that any paperwork or documents needed will be properly completed and filed. Virtual estate planning gives you the time and flexibility to focus on other important aspects of life while taking care of your future.

If you’re interested in virtual estate planning, all you have to do is contact our office to schedule a meeting. We will talk with you about what types of meeting platforms we can use to connect, and pick a time that works best. Click here to visit our contact page to learn how to reach out.