Avoiding an Adult Guardianship: How to Protect Yourself and Your Loved Ones
Dec 11, 2023

In life, we often plan for the expected and the unexpected. Yet, when it comes to addressing potential incapacity in adulthood, many individuals and families are unprepared. Although adult guardianship may be presented as an option for helping a loved one who is unable to make health, financial, or personal care decisions on their own, it can be an expensive, intrusive, and slow process that may not align with your wishes or timeline.

 

At Bergeron, Paradis & Fitzpatrick, we believe in empowering our clients to plan for the future while avoiding the need for adult guardianship whenever possible. Read on to discover why avoiding adult guardianship is a prudent choice and discuss alternative ways of planning for incapacity.

 

The Downsides of Adult Guardianship

 

Expense and Intrusiveness

 

One of the primary reasons to avoid adult guardianship is the financial burden it can impose. The process involves court fees, legal expenses, and ongoing oversight, which can quickly add up. Prior to the establishment of guardianship, the person in need of protection must undergo an intrusive evaluation by a court-appointed evaluator. Furthermore, it can be emotionally taxing, as it involves the court appointing a guardian to make decisions for an incapacitated individual. These decisions may not align with your preferences and values, or the preferences and values of your loved one.  

 

Delays in Receiving Support

 

Adult guardianship is a time-consuming legal process that can result in significant delays in obtaining necessary support and care for you or your loved one. While awaiting court decisions, the individual for whom guardianship is being sought may be left without the assistance they so urgently need. This is especially critical in situations where immediate medical or financial decisions are required.

 

Loss of Autonomy

 

Avoiding an adult guardianship is not only about saving time and money; it's about maintaining autonomy and ensuring that the individual’s needs are met promptly and in alignment with their wishes.

 

Alternative Ways to Plan for Incapacity

 

Planning for incapacity is a crucial aspect of estate planning that can help you and your loved ones avoid the complexities and expenses associated with adult guardianship. It provides peace of mind and ensures that your wishes are respected.

 

Advance Directives

 

Advance directives, such as living wills and healthcare proxies, allow individuals to express their medical wishes and appoint a trusted agent to make healthcare decisions on their behalf. These documents ensure that medical care aligns with your preferences, eliminating the need for guardianship in healthcare matters.

 

Durable Powers of Attorney

 

Durable powers of attorney grant someone you trust (an agent) the authority to manage financial and legal affairs on your behalf if you become incapacitated. This provides a seamless transition of decision-making and eliminates the need for a court-appointed guardian to manage your finances.

 

Revocable Trusts

 

A revocable trust allows you to transfer assets into a trust while maintaining control over them during your lifetime. In the event of incapacity, the successor trustee you've appointed can manage and distribute assets according to your instructions. This can avoid the need for a guardian to handle financial matters.

 

Contact a Vermont Estate Planning Law Firm Today

 

At Bergeron, Paradis & Fitzpatrick, we specialize in estate planning and can help you create a comprehensive plan tailored to your unique circumstances. Our experienced attorneys can guide you through the process of establishing advance directives, durable powers of attorney, and revocable trusts to protect your loved ones and your assets.

The dedicated team of legal professionals at Bergeron, Paradis & Fitzpatrick is here to provide you with the guidance and support you need. Contact us today to schedule a consultation and start building a plan that puts your family's well-being first. Your peace of mind is our priority.

Common Legal Issues in Real Estate

15 Mar, 2023
Real estate transactions are complex and typically involve substantial sums of money. As such, they are fertile ground for a variety of legal issues, from contract disputes to title issues. Anytime you are dealing with an investment of this size, it’s in your best interest to seek legal counsel. Whether you’re buying or selling, an unexpected legal matter can easily derail your plans and cost you significant time, money, and resources. Although most real estate legal issues can occur in any type of real estate transaction and in any location across the country, some potential legal hurdles are unique to Vermont. Below we discuss some of the most common legal issues in real estate in Vermont and nationwide. Real Estate Legal Issues That Can Occur Anywhere in the U.S. Let’s start by addressing common legal issues that can arise in real estate transactions anywhere in the country. Property disputes: This can occur when there is a disagreement over the ownership or boundaries of a property. Property disputes can arise due to boundary encroachment, easement disputes, or competing claims to the property. Non-disclosure: This occurs when a seller fails to disclose a known defect in the property to the buyer. Failure to disclose can result in a breach of contract or fraud. Zoning and land use regulations: Local zoning laws regulate how property can be used and developed. Violations of zoning regulations can lead to legal disputes, fines, and even property seizure. Title issues: Title issues arise when there is a problem with the ownership history of a property. Common title issues include liens, judgments, and easements that can affect the transfer of ownership. Contract disputes: Disputes may arise when there is a disagreement over the terms of a real estate contract. For example, a buyer may back out of a deal due to a disagreement over repairs or financing. Environmental issues: Environmental concerns can arise when there is a contamination or other hazardous material on a property. This can lead to legal issues and liability for the property owner. Foreclosure and bankruptcy: Foreclosure occurs when a property owner defaults on a mortgage loan. Bankruptcy can also impact real estate transactions and ownership rights. It is important to work with an experienced VT real estate attorney to navigate these legal issues and protect your rights as a buyer or seller. Real Estate Legal Issues Unique to Vermont The above legal matters can occur in any state and locality, but the issues below are unique to — or particularly common in — the state of Vermont. Land use regulations: Vermont has strict land use regulations, including Act 250, which regulates development projects that meet certain size or environmental criteria. Additionally, Vermont's "smart growth" laws aim to encourage development in designated downtown areas and discourage development in rural areas. Environmental concerns: Vermont is known for its natural beauty and environmental consciousness, and environmental issues are an important consideration in real estate transactions. For example, properties may need to be tested for radon gas, which is common in the state. Property taxes: Vermont has relatively high property taxes compared to other states, and the state's property tax system can be complex. For example, properties are assessed at their "fair market value," which can be subject to interpretation. Homeowner associations: Vermont has laws governing homeowner associations (HOAs), which are common in many real estate developments. These laws outline the rights and responsibilities of HOAs and their members, and can be complex. Foreclosure laws: Vermont has specific laws governing foreclosure proceedings, including a requirement for mediation before foreclosure can proceed. Property disclosure requirements: Vermont requires sellers to disclose certain information about their property to potential buyers, such as the presence of lead-based paint, underground storage tanks, and other environmental hazards. Anyone considering buying or selling property in Vermont should consult with a qualified real estate attorney to ensure compliance with all relevant laws and regulations. Contact a Vermont Real Estate Attorney Today If you are involved in any type of real estate transaction, the skilled legal team at Bergeron, Paradis & Fitzpatrick can help. Contact us today for a confidential consultation about your case.

Vermont Estate Tax

21 Feb, 2023
Are you concerned about the tax implications of leaving wealth to your loved ones? You may wonder whether your estate will be subject to taxes when you die, and how you can reduce your liability. Or you may wonder whether a tax burden will pass to your beneficiaries or heirs. Most Vermonters do not need to be concerned about paying any estate tax when they pass away. In Vermont, estates valued in excess of $5 million are subject to a flat estate tax. However, careful estate planning may help to reduce or even avoid these taxes. At Bergeron, Paradis & Fitzpatrick PC, we believe that everyone can benefit from our customized approach to estate planning, regardless of the size of your estate. Read further to learn about estate taxes in Vermont and how our team of knowledgeable estate planning attorneys can help craft a plan that meets the needs of your family. Vermont Estate Tax Exemption The threshold for the Vermont estate tax is $5 million in 2023, which means that most Vermonters will not be subject to estate taxes. If your estate is worth less than $5 million, it will not be subject to estate tax in Vermont. Even if your estate happens to be more than $5 million, only the amount over $5 million will be subject to the estate tax, which is applied at a flat rate of 16%. For example, if your estate is worth $8 million, the first $5 million is exempt. Only the remaining $3 million would be taxed at 16%, resulting in owed estate taxes of $480,000. Determining the Value of Your Estate Determining the value of your estate is a critical step in any estate planning process. An estate planning lawyer can help determine whether your estate may be liable for any taxes, as well as identify steps you can take in your lifetime to avoid or reduce tax liability. It is also important to work with an experienced tax professional when assessing your tax risks. The value of your estate is the sum of all your assets minus your liabilities. Your assets can include everything from your savings account, to your small business, to an annuity that has not yet been paid to you. An estate planning lawyer can help identify and calculate the value of your assets and liabilities to determine the size of your estate. Federal Estate Tax The threshold for the federal estate tax exemption is $12.92 million in 2023 – therefore if your estate will not be subject to Vermont’s estate tax, it should also be free from federal estate taxes. Unlike Vermont’s flat tax, the federal estate tax rate is progressive and ranges from 18% to 40%, depending on the amount of assets over $12.92 million. Also unlike Vermont’s estate tax, the federal estate tax exemption is portable for married couples. This means that with the right legal advice, a married couple can protect up to twice the estate size ($25.84 million in 2023). No Vermont Inheritance Tax Many of our estate planning clients express concern for the tax implications to their beneficiaries and wonder whether their inheritance will be taxed. Quite simply, Vermont does not have an inheritance tax. However, some states do tax assets that are distributed to beneficiaries, even those out of state. If you inherit assets from someone who lived in another state, you may want to consult with a tax professional to determine whether any out-of-state inheritance taxes apply to you. Reduce Your Estate Through Gifting Fortunately, most Vermonters do not need to be concerned with state or federal estate taxes. Those who do may be able to reduce the size of their estate through gifts. Vermont has no gift tax, and federal tax law allows you to give away up to $12.92 million during your lifetime without triggering the gift tax. The annual federal gift tax exemption is $17,000 in 2023, meaning that you may be able to gift up to $17,000 to as many people as you want without triggering federal gift taxes. You should consult with a tax professional before making gifts which exceed the annual federal gift tax exemption. Contact a Vermont Estate Planning & Probate Lawyer Today At Bergeron, Paradis & Fitzpatrick PC, our highly knowledgeable and compassionate attorneys can help you identify your estate planning needs and draft a customized plan that works for your family. Estate planning isn’t just about protecting assets for the wealthy, and it’s not just a later-in-life concern. We can help ensure your needs are met regardless of your age or financial status. We offer comprehensive services for all aspects of the estate planning process, including: Wills Trust establishment and administration Asset protection General and specific powers of attorney Advance directives for health care Probate administration Adult and minor guardianship Medicaid planning Special needs planning Whether you’re looking to establish an estate plan or update an existing one, the dedicated team at Bergeron, Paradis & Fitzpatrick PC, can help. Contact us today for a confidential consultation and to learn more.
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