Northern Virginia Law Blog

People in Virginia who are thinking about the future may consider how they can incorporate their favorite charities into their plans for their estates. Many people set goals for philanthropic and charitable giving during their lifetime, and they want it to continue after they have passed on. Philanthropy can provide important practical benefits in addition to a sense of well-being. By donating to charity, individuals can benefit from tax relief annually. This tax relief can also come as a boon to the beneficiaries of a person's estate.

When people think about the kind of giving they want to provide, they can make use of the estate planning process to help achieve their goals and leave a legacy of giving. Of course, it is important to choose a charity that is meaningful. People can select a meaningful cause by reviewing their past donations or focusing on a particular organization that has always been of interest. By choosing a charitable beneficiary with a high level of personal meaning, both the people planning their estates and their beneficiaries can feel good about their philanthropy.

Some people in Virginia may put off creating an estate plan. It can be difficult to confront issues such as illness and death. However, all adults need an estate plan, and an important element of an effective estate plan is choosing the right executor.

First, the executor needs to be someone who is capable of doing the job. The executor needs to be organized and trustworthy and should be someone who is likely to outlive the person creating the estate plan. This could be a family friend, a child or a niece or nephew. The executor should also be someone who knows the person well. The executor should be able to anticipate and understand the person's wishes. This reduces the likelihood that the executor will misunderstand the will or other documents. A person is also more likely to be comfortable talking about issues related to the estate with someone close, and the executor is more likely to interpret any ambiguous elements of the estate plan correctly.

Young people in Virginia may not dedicate a lot of time or mental energy to thinking about estate planning. For many millennials, especially those who are single and do not have children, making out a will seems unimportant or a matter to be considered for the future. According to one survey, 78 percent of younger adults do not have a will or other estate documents in place. While many note that death is an unpleasant topic, for many people, the issue is simply off their radar.

Creating a will can be important, especially if the unexpected were to occur. This document spells out exactly how a person wants his or her assets to be distributed. If someone passes away without a will, state laws on intestacy will apply. For people who are single without children, their parents will generally inherit any assets. Even those who are satisfied with their parents receiving everything may want to save them time and potentially costly fees by making their wishes clear.

People are filing bankruptcy in their golden years more than before according to a study by a professor group. The professors used data gathered by the Consumer Bankruptcy Project and determined that the number of bankruptcy filings by people aged 65 to 74 grew by more than 200 percent between 1991 and 2016. In Virginia and across the U.S., the rate of bankruptcy filings by people 75 or older has more than tripled over that same period.

According to the study, one in seven people who files bankruptcy is 65 years of age or older, an increase of five times between 1991 and 2016. The mean of the ages of filers in 2007 was 44.4 years old; it increased to 48.5 over less than 10 years. The study says that's a statistically significant difference.