Carpenter & Lewis PLLC is a firm that wants to bring their clients the best we have to offer, so that their needs are met. We don’t try to split our focus from estate planning and transactional law, that way you know we’re focused on you and your needs. Whether you’re a business or an individual, we’re here to help you. 

We focus on:

• Drafting wills.
• Drafting trusts.
• Settling probate estates.
• Settling probate trusts.
• Forming LLCs or other entities.
• Small business law.

Carpenter & Lewis PLLC has four lawyers, with varying educations and memberships. You can find an estate planning lawyer Knoxville, TN that you like that suits you and your case. 

What Is Estate Planning?

Estate planning is the process of involving professional counsel and advisors who are familiar with your goals, the concerns you have regarding your assets, your assets in general, and your familial structure. These are people who have legal knowledge and are prepared to help you and your family look at your estate and how the properties and assets can be transferred upon your death. 

Not all estate planners deal with people who are dying or dead, though, sometimes property and assets change hands for other reasons too, and your estate planning lawyer in Knoxville, TN may even take a look at your taxes to see how those books are lined up in regards to your debts and other assets and properties. 

Estate Planning Frequently Asked Questions

When you are creating your estate plan, you likely have many questions about how to create one, what should go into it, and what will happen to everything when you pass away. These are all completely valid lines of thought and it is understandable that you would want to be as prepared as possible. If you have questions about estate planning, turn to the lawyers you can trust at Carpenter & Lewis PLLC. We care about giving you and your loved ones what you need. We can help you through this process and provide you with the information you are looking for to make informed decisions. 

What happens when the validity of a will is challenged? 

If you have especially difficult family members and believe that a will you create will be challenged after you pass away, it is a wise decision to work with a lawyer. If you were not working with a lawyer and were creating a DIY will, a person may successfully challenge your will quite easily. This can happen because DIY and internet wills are not always state-specific and may not hold up. If a friend or family member challenges your will, know that your lawyer will have safeguards in place. A person may try to challenge a will based on:

Legal requirements. You may not meet legal requirements when you were creating the will.

Signatures. There may be a lack of witnesses’ signatures on your estate plan.

Not of sound mind. You may not have been of sound mind when creating the will.

Coercion. You were coerced into creating a will. 

While these things may not be true, a person can still attempt to argue them. 

Should I have a power of attorney? 

When creating an estate plan, having a power of attorney can benefit you greatly. You can have a healthcare power of attorney who can make your medical decisions for you or you can even have a financial power of attorney who can give authority to someone else to make your financial decisions. 

How will a trust benefit me? 

A trust can benefit you and your loved ones in ways that a will may not be able to. For example, your estate can avoid probate and certain taxes if you choose to create a trust instead of simply relying on a will. A trust can also ensure you are taken care of in the event that you become incapacitated for any reason. A trust will also protect your assets from family members who may go through divorces or have substance abuse issues and wish to use your trust for their personal gain. 

Some Important Terms to Know in Estate Planning

Understanding commonly used phrases and terms while working with an estate planning lawyer can really make it easier for you to understand what is going on. 

You may encounter the phrase “A-B trust planning”, and this is a common arrangement in a will when the married testator has an estate with a value that exceeds their remaining estate tax exemption amount. The testator will then create a “marital trust” or “A Trust” that is for the sole surviving spouse to have access too. This may also be called a “QTIP Trust”. The “B Trust” is also called a bypass trust. So essentially, when you’ve used all of your exemption amounts, you can set up an A-B Trust and have the trust go into two separate trusts, to utilize both exemptions. 

And connected to A-B trust, you may hear the term bypass trust used. This type of trust is sheltered from the federal estate tax by the decedent’s estate tax exemption amount. This trust “bypasses” estate tax, in the decedent’s estate and at the surviving spouse’s death as well. 

A charitable lead trust is a trust that is created during a lifetime or at death that gives annuity (or unitrust amounts) to a named charity for life, or a set term of years with the remaining trust assets passing to the non-charitable beneficiaries when the trust is terminated. 

A codicil is a formally executed document that amends the terms of a will so that a complete rewrite is not necessary.

Now that you know some terms that are involved in estate planning, we hope that you will consider reaching out to Carpenter & Lewis PLLC about your estate planning lawyer needs in Knoxville, TN. 

Common Mistakes To Avoid In Estate Planning

Your Knoxville estate planning lawyer can help you protect your legacy and your family’s future. At Carpenter & Lewis PLLC, we’ve spent over 30 years helping our clients with everything from estate planning, probate, and estates that involved millions of dollars in assets. Now, it’s our turn to help you. Read on to learn more about some common mistakes to avoid when planning your estate:

1. Not Having An Estate Plan At All

One of the biggest mistakes you can make is not having an estate plan in place. Many people think that estate planning is only for the wealthy or the elderly. However, anyone who has assets, no matter how modest, or loved ones they wish to care for can benefit from having an estate plan. Without one, state laws will determine how your assets are distributed, which may not be in line with your wishes.

2. Failing To Update Your Estate Plan Regularly

Life changes such as marriage, divorce, the birth of children, or acquiring significant assets can all affect your estate plan. Failing to update your documents to reflect these changes can lead to unintended consequences. It’s advisable to review your estate plan regularly, at least every five years, or after any major life event.

3. Not Planning For Disability Or Incapacity

Many people plan for death but forget to plan for the possibility of becoming incapacitated. It is vital to have powers of attorney for both healthcare and finances in place. These documents allow you to appoint someone you trust to make decisions on your behalf if you’re unable to do so yourself.

4. Overlooking The Impact Of Taxes

Taxes can significantly diminish the value of the assets passed on to your heirs. Without proper planning, your beneficiaries might face hefty estate, inheritance, or income taxes. All the more reason to contact a Knoxville estate planning lawyer with plenty of experience with taxes.

5. Choosing The Wrong Executor Or Trustee

The role of an executor or trustee is critical. They manage your estate’s administration and ensure your wishes are carried out as specified in your will or trust. Choosing someone who is not capable of managing these duties effectively, or who may not act in the best interest of your beneficiaries, can lead to problems. It’s important to choose someone who is trustworthy, organized, and understands the responsibilities involved.

6. Not Clearly Defining Your Beneficiaries

Ambiguities in your estate plan regarding who your beneficiaries are and what they are to receive can lead to disputes and legal challenges. Make sure that your documents are clear and that all beneficiaries’ names are spelled correctly and their identities unmistakably defined.

7. Not Using Trusts Where Beneficial

Trusts can offer significant advantages, including avoiding probate, protecting your estate from creditors and legal judgments, and managing how and when your assets are distributed. Not using trusts where appropriate can expose your estate to risks that could have been avoided.

Start Securing Your Legacy Today

Avoiding these common mistakes in estate planning can protect your assets and ensure your wishes are honored. At Carpenter & Lewis PLLC, we have the experience and dedication to help you craft a comprehensive estate plan that addresses all aspects of your wishes and needs. Don’t wait until it’s too late to start thinking about your estate planning needs. Contact us today, and see how a Knoxville estate planning lawyer from our office can help.

Estate Planning Lawyer: Frequently Asked Questions

Estate planning can be a complex and overwhelming process, but it’s essential for ensuring that your assets are distributed according to your wishes and that your loved ones are taken care of after your passing. A Knoxville, TN estate planning lawyer plays a crucial role in guiding you through this process, offering legal advice and helping you create a comprehensive plan. Here are some frequently asked questions about estate planning lawyers and how they can assist you.

1. What Does An Estate Planning Lawyer Do?

An estate planning lawyer specializes in helping individuals and families create plans for the management and distribution of their assets after death. They assist with drafting wills, setting up trusts, establishing powers of attorney, and creating healthcare directives. Estate planning lawyers also provide guidance on minimizing taxes, avoiding probate, and protecting your assets from creditors or lawsuits.

2. Why Do I Need An Estate Planning Lawyer? Can’t I Just Do It Myself?

While there are online tools and DIY kits available for estate planning, they often lack the customization and legal insight necessary to address complex situations. An estate planning lawyer ensures that your documents are legally binding and tailored to your specific needs. 

3. What Documents Should I Have In My Estate Plan?

A comprehensive estate plan typically includes:

• A Will: Specifies how your assets will be distributed after your death.
• A Living Trust: Allows you to manage and distribute your assets while avoiding probate.
• Powers of Attorney: Designates someone to manage your financial and legal affairs if you become incapacitated.
• Healthcare Directives: Outlines your wishes for medical care if you’re unable to make decisions yourself.
• Beneficiary Designations: Ensures that assets like life insurance policies and retirement accounts go to the intended recipients.

An estate planning lawyer will help you determine which documents are necessary based on your unique circumstances.

4. How Can An Estate Planning Lawyer Help Reduce Estate Taxes?

Estate planning lawyers are knowledgeable about various strategies to minimize estate taxes, such as:

• Gifting: Distributing portions of your assets to your heirs during your lifetime.
• Setting Up Trusts: Certain types of trusts, like irrevocable life insurance trusts, can help reduce the taxable estate.
• Charitable Contributions: Donating to charities can reduce the taxable estate while supporting causes you care about.

Your lawyer will assess your estate and advise you on the best strategies to reduce tax liabilities for your heirs.

5. What Is Probate, And How Can An Estate Planning Lawyer Help Avoid It?

Probate is the legal process through which a deceased person’s estate is settled, including validating the will, paying debts, and distributing assets. Probate can be time-consuming, costly, and public. An estate planning lawyer can help you set up trusts or properly title assets so that they bypass probate, allowing your heirs to receive their inheritance more quickly and privately.

Conclusion

Estate planning is a vital step in securing your family’s future and ensuring that your wishes are honored. A Knoxville estate planning lawyer from Carpenter & Lewis PLLC provides the expertise and guidance needed to create a comprehensive and legally sound plan. If you have more questions about estate planning or are ready to start the process, consulting with an experienced estate planning lawyer is the best course of action.