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Every new year brings new taxes. Fortunately, for people in Tennessee, estate tax is likely one they won’t have to worry about. Estate taxes change frequently, and it can be difficult to understand what federal and state there might be for your estate. At Tressler & Associates, our estate planning attorneys can help you understand everything you need to know about estate taxes.
Short History of Estate Tax
In 2015, for residents in Tennessee, an estate could be worth up to $5,430,000 and not be taxed. However, the good news is that since 2016, Tennessee has had no estate tax. This creates a desirable environment for those entertaining the idea of Tennessee as a location in which to retire. The lack of estate tax immediately makes Tennessee a more attractive state to live in compared to other states. In 2022, the federal maximum for a tax-free estate has increased to $12,060,000.
Although these numbers seem unattainably high to most Tennesseans, these amounts are the finale to a long road of decreasing estate taxes. In 1999, for example, an estate over $650,000 was taxed in Tennessee. The state subsequently put a plan in place to slowly phase out this tax, with 2015 being the final year. The federal government continues to give no indication that it intends to demolish this tax. However, the maximum may increase due to inflation. We can only hope that our state and federal government continue these trends.
Contact Us for Help with Your Estate
If you are asking wondering why you need help with estate planning if your estate is nowhere near the federal maximum, we can help! To learn more about how we can assist you in estate planning or if you have any questions about this or any other legal matters, call us at 615-444-2345 or contact us here.
A Healthcare Durable Power of Attorney is an important document for everyone to have. It’s also sometimes called a Healthcare Power of Attorney (HCPOA). The specific reasons for having an HCPOA will change throughout life, but the general idea remains the same. The purpose of an HCPOA is two-fold:
It allows you to name one or more persons to have access to your medical records.
It allows you to give someone or several the power to make medical decisions for you when you are not able.
Scenarios that Require a Healthcare Durable Power of Attorney
Consider these scenarios.
Jared and Mia Part 1: Jared and Mia are engaged. Mia is in a car accident. Mia is alive but unresponsive. The hospital will not be able to give Jared information about Mia’s condition without Mia’s consent. Because Mia is unresponsive, Jared will anxiously wonder what is happening. He won’t be able to do anything until he is able to work through the hospital’s HIPPA requirements. If Mia had an HCPOA naming Jared as her “attorney-in-fact” or “agent,” he would have had access to her medical files. Then the doctors could inform him as to all that is happening. This scenario would be the same with a parent and an adult child.
Jared and Mia Part 2: Now the hospital wants to attempt procedures that could potentially prolong her life, but Jared knows Mia would not want them done. Unfortunately, Jared has no power to make those decisions for her. If Mia had an HCPOA, Jared would have the power to act as her agent. Then he could make decisions for her medical treatment within any guidelines she had set.
When Can Someone Use HCPOA?
Keep in mind that an HCPOA only comes into play when you cannot make the decisions for yourself. These people will only have these powers if you become incapacitated or unresponsive. As long as you are able to consent or deny informed consent, you will choose what is done medically for yourself. However, should you become incapacitated, this is an extremely useful document.
Contact Tressler & Associates for Help
Remember to update your HCPOA regularly so that the best person is named as your agent. Although we dread to think of the times when this document would be used, in a world of few promises, it is best to be prepared. To learn more about how our attorney can assist you in estate planning, contact us for help.
There is a common myth that estate planning is only for the elderly or the wealthy; maybe even only for the elderly and wealthy. This myth shows that few really know what estate planning involves. Here is a hint: estate planning is about more than only wills.
So, if you’re young and don’t have many assets, you might be wondering why you need an estate plan at all. Find out why it’s best that everyone have estate plans in order.
1. Do you own anything? Then you need an estate plan.
Although the word “estate” sounds formal, an estate is simply what you own. Most, if not all, people own something that they want to go to a specific person when they pass away. Whether that is a sentimental token, a family heirloom, a photo, or a pet, you probably have at least one item you want to go to someone in particular. It does not matter the monetary value of that item. You have the right to choose where that item goes.
The problem is, that if you don’t plan, the laws of your state will determine where your property goes. If you are single and childless, that probably means your parents will suddenly own everything that you currently hold in your possession.
More importantly, if you have children, you want to be the one to choose who would become their guardian. If you don’t make your wish legally explicit in legal writing, the State of Tennessee will choose for you.
2. Estate planning is more than wills.
How will anyone know your healthcare wishes if you are not able to communicate them? Who do you want to make healthcare decisions for you if you are not able to do so? Who will keep up with your financial matters if you are not able to do so? All of these questions are answered in a comprehensive estate plan.
For example, consider a Healthcare Durable Power of Attorney. With this, you are able to choose a person to make healthcare decisions for you if you cannot. It also allows you to name a person or persons who will have access to your medical documents if you are hospitalized. Most importantly, they will be able to give the hospital permission to treat you.
Similarly, a Living Will allows you to put your wishes for medical treatment in writing. This is so that there are no questions if you become unable to communicate them. For financial and other matters, you can create a Durable General Power of Attorney to designate a person to sign on your behalf in financial matters.
Contact Tressler & Associates for More Information
For better or worse, life is uncertain at any age. Have a plan in place. If you have any questions about this or any other legal matters, call Tressler & Associates at 615.444.2345 or contact us here.
I don’t have children or money, therefore I don’t need to worry about estate planning right now. I am young, I have plenty of time to deal with estate planning. Estate planning is so expensive.
These are common misconceptions about the law of estate planning. The truth is, estate planning is for everyone and doesn’t have to be expensive.
The Basics’ of Estate Planning. In the most basic terms, estate planning is a set of legal documents spelling out how you want to be cared for, and to whom and how you want your assets to be divided should you not be able to speak for yourself. These legal documents include your last will and testament, a living will, appointment of a general power of attorney and a health care agent. While each document serves a different purpose, together they empower another person to make decisions in regards to your assets, care and the care of your family in the event you are unable to.
Estate Planning Is For Everyone. When most people hear the words “estate” or “estate planning” they conjure up an image of someone who is retiring with money or a family planning for their children. However, what most people don’t realize is that no matter how large or how modest – nearly everyone has an estate to be planned for including you.
So what is in your estate? In the most basic terms, your “estate” is comprised of everything you own your home, other real estate, car, furniture, checking and savings account, life insurance, your valuables, etc. Therefore, whether you are single, married, divorced, widowed, or have children, you have an estate and can benefit from estate planning.
Estate Planning Does Not Have To Be Expensive. If you can’t afford a lavish estate plan, it is important that don’t put it off all together. Instead, start with a plan you can afford. For a single adult or young family, this could mean just having your basic will, health care plan and power of attorney in place. Over time, as your needs change, family change and assets grow, you can expand on your plan.
How To Get Started. The first thing to do when planning what to do with your estate is to determine what your wishes are and who you want to carry out those wishes in the case you are unable to. From there it is important to have an open conversation with your loved ones about your wishes. Next it is important to find an estate planning attorney who can help advise you on your situation. Your attorney will draft all of your estate planning documents to make sure you are taken care of no matter what life throws your way.
The Peace of Mind Benefit. The best benefit of estate planning is the peace of mind you will have knowing there is a proper plan in place for you and your family should something happen to you. If you would like to speak with a Tennessee estate planning attorney regarding your estate plan, be sure to contact us at Tressler & Associates. After all, the best gift you can give your family is the peace of mind they deserve.
If you have any questions about this or any other legal matters Call Us: 615.444.2345 or Contact Us Here
The legal arena surrounding residential landlord tenant law can be like a mine field at times. One particular trap that many landlords find themselves in, involves a situation where a tenant has failed to pay their rent. In response, the landlord sends an eviction letter and eventually files a detainer suit on the matter to evict the tenant from the property. Sometime between the eviction letter and the court date, the tenant makes a payment to the landlord for rent.
This payment many times is minor in relation to what they owe in arrearages and sometimes it is not even a full month’s rent. The landlord is happy to get some money out of the tenant, so, they accept it and continue on with their eviction. On their court date they learn that the judge is dismissing their case for accepting the payment. The landlord pleads with the judge that the money they accepted was only a small part of what they are owed but it does no good and the judge dismisses their case anyway.
The dismissal is the result of the legal doctrine called waiver. Waiver is a concept where the landlord surrenders a legal right to proceed with the eviction by accepting a portion of the rent. This doctrine is established by case law and in some counties by statute. In counties that are controlled by the Uniform Residential Landlord & Tenant Act the doctrine is codified in TCA 66-28-508 which states “If the landlord accepts rent without reservation and with knowledge of a tenant default, the landlord by such acceptance condones the default and thereby waives such landlord’s right and is estopped from terminating the rental agreement as to that breach”.
Once the judge has dismissed the landlord’s lawsuit, the landlord must start all over again in the eviction process. Having to start all over can of course be a very costly and time consuming process that should always be avoided. This is only one of the many predicaments that a landlord can find himself in, regardless of his best intentions. That is why it is so important to hire an attorney well versed in landlord tenant issues early in the eviction and collection process.
Landlord-Tenant Law is an area of law where so many decide to represent themselves without guidance from a lawyer. It seems like a good idea to some because they will save on attorney fees. However, most of the time, it ends up costing them much more in the long run. Landlord-Tenant law is a minefield of potential mistakes. Just figuring out which set of laws applies to the county you live in Tennessee can be challenging, even when only considering eviction notices.
Find out why having an experienced real estate lawyer assist with Landlord-Tenant matters is in your best interest.
What Issues Can Landlords Face?
One area where we constantly see Landlords making a mistake is with eviction notices. Landlords especially choose to misrepresent themselves by either not using an eviction notice or using them incorrectly. If a Landlord uses an eviction notice incorrectly or not at all, it can lead to a dismissal of the Landlord’s case from court. This can cost the Landlord a significant amount of money. It can also possibly open the Landlord up to a lawsuit for Wrongful Eviction.
Tennessee law requires a Landlord to give a non-paying tenant an eviction notice. In most cases, the Landlord must give the Tenant an opportunity to cure their non-payment. This ability must also be clearly set out in the notice. The law sets out specific days and other matters which must be in an eviction letter. We do not recommend that you try to traverse this area of the law alone. If you see a potential legal matter concerning your rental properties, please call a real estate attorney at our office immediately.
CONTACT US
If have a rental property and need help with an eviction or have any other legal situation, contact us and we would be glad to find the best option for your situation.
I recently spent some time in Florida. Amidst the beautiful, blue skies, I also learned about a lot of Florida laws. Although I am not licensed in Florida and I cannot give legal advice on Florida law, I can say that I was amazed that the differences between Tennessee and Florida. Being from the Sunshine State, I travel frequently between Nashville and Florida. Until this trip, I had never thought about how I am stepping into an entirely different set of laws by which I must abide when my plane crosses the Tennessee border. However, the truth is, no two states are alike in their laws. Don’t misunderstand me, of course there are many similarities, but state laws also vary greatly.
So, were you born in Tennessee or did you move here during your adult life? For many Tennesseans, especially those in Nashville and surrounding areas, the answer would be the latter option. Middle Tennessee has experienced incredible growth during the past couple of decades. Considering that growth, I ask those who fall in that second category, have you had all of your legal documents reviewed since moving to Tennessee?
It is for this reason that it is important to have any legal documents re-evaluated when you move. Maybe all of your documents will be in line with Tennessee law, but if they are not, you need to know. Bring in those old Wills, Trusts, business documents, or whatever else might be hiding in your filing cabinet, and we will gladly take a look. We would love the opportunity to then advise you on what steps are necessary, if any, to bring those documents in line with Tennessee law.
To learn more about how we can assist you in Contract Law or if you have any questions about this or any other legal matters Call Us 615.444.2345 or Contact Us Here
In a recent blog, I discussed the 2015 Federal and Tennessee Estate Taxes. A common follow-up question to that discussion sounds something like, “My assets are nowhere near $5,000,000.00 so why do I need any help with planning my estate?”
The answer is two-fold:
1) TAX LAWS ARE NOT WRITTEN IN STONE!
Our laws change constantly and our government is always in flux. I am thankful that we live in a country where we are represented by the people of our choosing, but that means that “the people of our choosing” change every year. We do not know who will be in power or what agendas will become important in the future. We can only live in 2015. That being said, it is not difficult to see how tax laws affecting Tennesseans could change. It could suddenly become the law that all estates are subject to taxes (thankfully, this is not the current trend).
2) ESTATE PLANNING IS MUCH MORE THAN JUST TAXES.
Estate planning is more than tax law. In fact, I would say that with the majority of our clients, other topics are of greater concern. For example, making sure the correct people have control over assets or determining who will be the decision-maker are more important than estate taxes to many people. Also, privacy or creating a process that will be simple for loved ones are both common goals. There are many reasons that an estate planning attorney can be helpful, whether taxes are of concern or not. Just about everyone can benefit from some estate planning.
To learn more about how we can assist you in Estate Planning or if you have any questions about this or any other legal matters Contact Us Here
Technology and the internet have streamlined so many “official” processes that used to require hardcopy forms, the antiquated postage stamp, and worst of all- actual trips to and long waits inside government buildings. This is true for the creation of a limited liability company (“LLC”) in Tennessee. Thanks to an intuitive and easily navigable interface, the Tennessee Secretary of State’s website will allow you to create your own LLC (or Corporation or Partnership) with basic information and a credit card in less than 15 minutes’ time. The process is incredibly, perhaps deceptively, simple.
This is by no means a criticism of the online formation process; the website displays the requisite legal notices and makes the process more accurate and efficient. However, the ease with which an LLC can be created may also downplay the responsibilities of running the entity to new or prospective “Members” (LLC owners). It is not uncommon that we receive calls from Members seeking an explanation of the “administrative dissolution” of their company. Many assume that unless the LLC is conducting certain business or making money, there is nothing that needs to be done. Unfortunately, this is not the case.
Generally, there are two main culprits of administrative dissolution in these circumstances. The first is the annual report. Every LLC must file an annual report and pay an annual fee. These are usually due April 1 for the previous calendar year. The annual report is simple, and is predominantly concerned with any changes to the membership (ownership), registered agent, or address of the LLC. The annual fee is calculated in the same manner as the initial formation payment ($50/Member, with a $300 minimum and a $3,000 maximum). The report and payment can both be submitted online.
The second culprit is the Franchise and Excise Tax, which is imposed on nearly every registered entity in Tennessee, save for a select group which may qualify for an exemption. Franchise and Excise Tax is based on net worth as of the close of the year, but a minimum $100 payment is due annually, regardless of the LLC’s worth (or lack thereof). In order to pay this tax, the LLC must first register with the Tennessee Department of Revenue. This can also be done online, but the process is notably trickier than LLC formation.
The government websites referenced above both offer great resources and downloadable guides for anyone willing or interested in getting more information. The problem seems to be that some DIY LLC owners are unaware of additional requirements until after it is too late. Considering that forming an LLC is equivalent to creating a “person” in the eyes of the law, it only seems fitting that there should be some upkeep involved. Consulting a business attorney about LLC formation is the best route (unsurprising, coming from a business attorney), but to anyone looking to create an LLC, educating yourself on the requirements at the start can save a great deal of time, hassle, and money down the road.
615.444.2345