Estate Planning Attorney in Richmond, Virginia

Contrary to a popular misconception, estate planning is important for everyone, regardless of their income. However, only 32 percent have an estate plan. Despite these sobering statistics, experienced estate planning attorneys know that everyone can benefit from having an estate plan — regardless of how much money or how many assets they have.

As a recent survey from Caring.com indicates, the number of Americans who have a will has reduced significantly. Of the 40 percent without a will, a lack of assets was cited as the main reason, with Americans in a lower income bracket twice as likely to provide this reason as those in the highest income bracket.

At PJI Law, PLC, in Richmond, Virginia, our estate planning attorneys have assisted many individuals and families in and around Richmond through the estate planning process, always considering each individual’s unique needs and circumstances.

Key Takeaways About Estate Planning in Richmond, Virginia 

As an experienced Richmond estate planning attorney can attest, each individual has their own estate planning needs. However, everyone should know the following about this legal process.

• Importance of Estate Planning: Estate planning helps minimize probate complexities, ensure asset management during incapacity, and shield assets from creditors to safeguard your estate.

• Vital Estate Planning Documents: Although individual circumstances vary, for most people, crucial estate planning documents include a power of attorney (POA), living will, will, and a living trust — regardless of age, health, or wealth. Comprehensive estate planning seeks to ensure proper management of your assets, care of your minor children if you are a parent, reinforce your choices regarding healthcare if you become incapacitated, and pursue the fulfillment of your final wishes.

• Avoid Probate: Proper estate planning with the help of an experienced attorney in Richmond can help you avoid probate for some assets.

• Minimize Estate Taxes: An attorney with extensive knowledge of Virginia estate law can guide you through the creation of the relevant estate planning documents to minimize your tax liability.

• Understand Common Estate Planning Myths: An estate planning attorney knows that everyone, regardless of the amount of wealth they have amassed, should take the important step of creating a will-based estate plan with an estate attorney. Attorney support is crucial for creating valid legal documents, taking care of your loved ones, and outlining your wishes for medical care should complex situations — such as accidents or illness — arise. 

• Preparing for Estate Planning: Before meeting with your estate planning attorney to discuss the essential estate planning tools that suit your needs, take the time to inventory your possessions, list non-physical assets, identify debts, and update insurance policies with beneficiary designations. This important step will help you and your attorney embark on an efficient estate planning process.

• Consultation with an Experienced Estate Planning Attorney: Consult an experienced Richmond estate planning attorney, who can listen to your concerns and goals, answer questions, recommend the documents that best suit your needs, and create a comprehensive, legally binding estate plan.

A Will: The Foundation of Your Estate Plan

A will is a legal document specifying your wishes for the distribution of your assets after your death. If you are a parent of minor children you can also designate a guardian for them and an executor to manage the probate process. Every person 18 or older should have a will, no matter the size of their estate. If you die without a will, Virginia’s “intestate succession” law takes effect — which may or may not align with your final wishes. A will also reduces the likelihood of family disputes and facilitates the probate process.

Creating a Legally Binding Will in Virginia

For a will to be considered legally valid, it must fulfill the following conditions:

1. The testator must be of legal age (18 years or older) and of sound mind.

2. The will must be in writing and signed by the testator (the person who made the will) in their own handwriting.

3. Two disinterested witnesses must be present during the signing to ensure the testator’s intent is properly executed.

Acceptable Types of Virginia Wills

• Written Wills: The most common type of will, written wills must be in writing and signed by the testator and two witnesses.

• Holographic Wills: Virginia recognizes holographic wills, which are wholly written, dated, and signed by the hand of the testator. While this type of will can be legally valid, it’s more vulnerable to challenges and issues in probate court, particularly concerning its authenticity and compliance with estate law.

• Self-Proving Wills: Also known as self-proving affidavits, these written wills have been signed and sworn to by the testator and two witnesses in the presence of a notary public. This type of will facilitates probate because the probate court can accept the will without contacting the witnesses who signed it.

• Pour-over wills: Commonly used in Virginia, pour-over wills transfer any remaining assets that are not already in a revocable living trust into the trust after the testator’s death.

5 Crucial Components of a Virginia Will

1. Testator — Your will must clearly identify you, the testator, including your full legal name and residence, to affirm the will’s ownership and validity.

2. Executor — Also called a personal representative, this individual named in the will carries out its wishes and manages probate. It’s advisable for an executor to seek the services of an experienced lawyer for probate support.

3. Witnesses — Two disinterested witnesses must sign the will.

4. Beneficiaries — Beneficiaries are the persons or organizations designated in your will to receive assets from your estate. Naming beneficiaries involves the inclusion of critical information, such as the name, address, and relationship of each beneficiary. This effort seeks to ensure the proper distribution of your assets according to your wishes, providing financial support and security for your family and other loved ones after your death. Virginia also gives you the option of disinheriting your children by specifically indicating in your will whom you are denying an inheritance and why. Addressing these issues in your will clarifies your intentions and minimizes the potential for family disputes and legal challenges.

5. Guardian Designations — If you have minor children or dependents, appointing a guardian is critical. This person will assume the responsibility of raising your children should you pass away and leave them without parents.

Richmond, Virginia Power of Attorney (POA)

A POA is a legal document authorizing an individual, referred to as the “agent” or “attorney-in-fact”, to act on another person’s behalf, referred to as the “principal.” The type of POA determines whether this granted authority is broad or limited in scope.

A POA usually takes effect when the principal cannot tend to financial matters like bank accounts or other affairs like real estate transactions when they or cannot verbalize their health care choices due to incapacity.

As an experienced estate attorney knows, a comprehensive estate plan includes a POA. It enables the principal to manage their affairs in alignment with their preferences and best interests through a trusted and authorized individual.

Power of Attorney Options

Durable Power of Attorney — A durable POA offers the principal the peace of mind of knowing that in the event of incapacity, their attorney-in-fact will act on their behalf to manage their affairs as indicated in the document.

Most people manage their personal finances; however, in particular situations, you could also manage property or business. With a durable POA, your trusted agent can oversee your property management and business affairs, making decisions according to your desires and interests outlined in the document.

General Power of Attorney — A general POA enables your appointed agent to handle various tasks, from personal financial affairs to more complex decisions, to keep things running smoothly while you are away. The authority granted in a general power of attorney could range from handling everyday banking transactions to signing significant contracts on your behalf.

Limited Power of Attorney — A limited POA authorizes your agent in specific ways for a clearly defined or limited purpose or period. For instance, with a limited power of attorney, your agent could complete a real estate transaction on your behalf if you cannot be there. A limited POA gives the principal the peace of mind of knowing their agent or attorney-in-fact will complete designated tasks according to their instructions, regardless of their availability.

Springing Power of Attorney — As the name suggests, a springing POA takes effect under specified conditions such as mental incapacitation or permanent disability.

For example, if you have been diagnosed with a health condition, you could establish a springing POA that activates when your condition progresses to a particular milestone, as documented by a healthcare professional. The powers outlined in this document ensure that your attorney-in-fact can handle your personal and financial matters efficiently during health challenges.

Health Care Power of Attorney / Advance Medical Directive — As you and your estate planning attorney consider the future, you should establish a health care POA or advance medical directive as part of your estate plan. This legal document enables you to designate a trusted individual to make medical decisions on your behalf if you lose the ability to communicate your preferences.

Often referred to as your health care agent or proxy, you could give this person the authority to make decisions ranging from minor medical procedures to life-saving measures, as stipulated in the health care power of attorney or advance medical directive.

Your healthcare agent or proxy consults your medical team to uphold your treatment preferences. A skilled attorney can guide you through this process and create a legally sound document that complies with the law and accurately states your desires.

Living Will

A living will, also part of an advance medical directive, is a legal document that specifies an individual’s preferences regarding medical treatment in situations where they are unable to communicate their decisions. This document helps to ensure the fulfillment of a person’s healthcare wishes, particularly in circumstances involving life-sustaining treatment or end-of-life care.

How a Living Will Works

1. Specification of Healthcare Preferences: It allows individuals to lay out specific instructions about the types of medical treatment they do or do not want to receive. These preferences can include decisions about resuscitation, mechanical ventilation, tube feeding, and other life-prolonging measures.

2. Activation Criteria: The directives within the document become effective only under certain conditions, usually when a medical professional diagnoses the individual as terminally ill or permanently unconscious, and they cannot communicate their wishes.

3. Role of Healthcare Providers: Healthcare providers are legally obligated to follow the instructions laid out in the living will. This serves to ensure that medical care aligns with the patient’s personal values and preferences, even when they cannot advocate for themselves.

4. Healthcare Agent or Proxy: While living wills provide specific instructions on medical treatment, they often work in conjunction with a healthcare POA. This document allows individuals to designate a trusted person—referred to as a healthcare agent or proxy—to make medical decisions on their behalf, guided by the living will’s provisions.

5. Legal Requirements: To be valid in Virginia, a living will must be signed by the individual and witnessed by two adults. These witnesses should be disinterested parties who are not listed as healthcare agents or potential beneficiaries of the individual’s estate.

Richmond, Virginia Trusts

A trust‘s primary purpose is to protect and preserve your assets and facilitate the efficient distribution of assets according to your wishes. Contrary to another persistent estate planning misconception, a trust can suit people of all income levels, not just those with significant money and assets.

As experienced trust and estate counsel know, this comprehensive legal instrument offers multiple benefits:

1. Probate Avoidance: Probate, the court-supervised process of distributing assets after someone’s death, can be lengthy and costly. Establishing a proper trust can help you bypass probate because assets held in the trust can be distributed directly to beneficiaries without court intervention. Beneficiaries may gain access to trust assets more quickly because a trust reduces administrative expenses and saves time.

2. Privacy: Unlike a will, which becomes a matter of public record during probate, a trust confers privacy. Its terms and conditions stay confidential, protecting sensitive family and financial information from the public eye.

3. Control and Flexibility: A trust allows you to maintain control over the management and distribution of your assets, even after your death. You can appoint a trustee to fulfill your wishes and distribute the intended inheritance to your beneficiaries as you have indicated.

4. Protection of Assets: A trust allows you to transfer assets into it, creating a separate legal entity to hold assets. Depending on the type of trust, when you transfer assets, you protect from potential creditors or legal disputes.

5. Help with Taxes: Certain types of trusts, such as irrevocable trusts, have tax-efficient advantages. Irrevocable trust assets may be excluded from the taxable estate, potentially limiting estate taxes. Consulting an experienced trust lawyer and estate planner can help you determine the right trust structure for your specific tax planning needs.

Other Estate Planning Documents You May Need in Richmond, Virginia

While we have provided an overview of the most common estate planning documents, depending upon your unique circumstances, other estate planning documents may also be required.

Business Succession Planning

Business succession planning is a strategic process designed to facilitate the seamless transition of ownership and management of a business when the current owner retires, becomes incapacitated or passes away. In Virginia, this planning is particularly crucial for the continued success and stability of family-owned businesses and small enterprises. Effective business succession planning involves several key components:

1. Identifying Successors: This step entails choosing a capable and trustworthy individual or group of individuals to take over the business. Successors might be family members, key employees, or external buyers, depending on the owner’s preferences and the business structure.

2. Valuation of the Business: Conducting a thorough appraisal to determine the business’s current market value is essential. Accurate valuation is critical for tax purposes, equitable distribution among heirs, and setting a fair selling price if the business is to be sold.

3. Funding the Transition: Adequate funding options must be arranged to facilitate a smooth transition. This can include life insurance policies, buy-sell agreements, or establishing employee stock ownership plans (ESOPs). Having liquid assets available enables successors to meet tax obligations and other financial commitments without straining the business’s cash flow.

4. Legal Documentation: Comprehensive legal documents, such as buy-sell agreements, operating agreements, and shareholder agreements, must be in place. These documents delineate the terms of the transfer, outline the roles and responsibilities of the successors, and protect the business’s interests.

5. Training and Development: The potential successors should receive the necessary training and development to prepare them for their new roles. This process ensures that they are competent to manage the company’s operations, understand its culture, and uphold its values.

6. Tax Planning: Proper tax planning is an integral part of business succession planning in Virginia. It involves strategizing to minimize potential tax liabilities that might arise from the transfer of business ownership. Consulting an estate planning attorney can help you identify the most effective tax-saving strategies.

By comprehensively addressing these elements, Virginia business owners can safeguard their legacy, provide financial security for their families, and work to position their businesses to thrive for future generations.

Deed Preparation

Deed preparation is a critical aspect of estate planning for the proper and legal transfer of real property ownership. A deed is a legal document that conveys title to real estate from one party to another. Virginia has several types of deeds, including:

• General warranty deeds

• Special warranty deeds

• Quitclaim deeds

Each type serves a different purpose and offers varying levels of protection to the buyer. A meticulously prepared deed must include specific information such as the names of the grantor (seller) and grantee (buyer), a proper legal description of the property, and a clearly stated intent to transfer the property.

Estate planning attorneys can guide you through the deed preparation process, meeting all legal criteria and appropriately drafting the deed to reflect your wishes. An estate planning attorney at PJI Law can conduct thorough title searches to confirm that the property title is clear of any liens or potential disputes, thereby safeguarding your interests. We will also confirm that the deed complies with all local and state laws, avoiding future legal complications.

Our attorneys also advise on the most appropriate type of deed based on your specific circumstances, whether it’s to provide extensive warranties through a general warranty deed or a simpler transfer of interest through a quitclaim deed. Furthermore, our estate planning attorneys can assist with the recording of the deed at the local county recorder’s office, which is essential for making the transfer official and providing public notice of the new ownership.

Transfer-on-Death Deeds

A transfer-on-death deed (TODD) is a valuable estate planning tool that allows property owners to designate a beneficiary to inherit their real estate upon their death, without the need for probate. Beneficiaries named in a TODD have no interest in the property while the owner is alive, ensuring that the owner retains full control during their lifetime. This type of deed simplifies the transfer process and can save time and money by avoiding probate.

To create a valid TODD in Virginia, you must meet specific legal requirements. The deed must clearly state that the transfer will occur upon the owner’s death and identify the beneficiary by name. Additionally, the deed must be signed, notarized, and recorded with the local county land records office to be effective. Failure to adhere to these requirements can cause the deed to be invalidated.

An estate planning attorney at PJI Law provides invaluable assistance in preparing and executing a TODD, fulfilling all legal requirements and properly recording the document. They can also advise you about potential tax implications and help you determine if a TODD is the right option for your specific estate planning goals.

Estate Plan Maintenance

Due to life’s inevitable changes, estate plan maintenance is vital for aligning your plan with your current situation. Whether you have undergone changes in your assets, marital status, or home, or have welcomed a new baby, consulting your estate planning attorney to update your documents is crucial.

The estate planning attorneys at PJI Law in Richmond will review your current documents, make any necessary updates, and make sure your trust has been funded with assets. Our experienced, detail-oriented team keeps the big picture in focus as we guide you to develop and maintain an estate plan that helps you seek your personal and financial goals and care for your loved ones. With personalized service and attention, we remain by your side as you move through life, ensuring your plan remains current.