It sounds like the ideal problem to have, doesn’t it? A wealthy family member dies, leaving you a substantial inheritance that effectively means you never have to work again. It means that you can leave money to your children and ensure a lifetime of ease and comfort.

While that is the fantasy, the reality is often far from the truth. For many people who come into sudden wealth, a new set of problems often arises that can leave their lives worse off than they were before. Regardless of the source of the wealth, whether it is by some sort of lottery winnings or inheritance, people often do not know how to deal with the emotional, social, and psychological problems associated with sudden riches. If you are creating an estate plan and are planning on leaving a lot of money to others, you should carefully consider what this may mean as you create your plan.

Issue 1: A change in your life.

Becoming wealthy impacts every aspect of your life, including those aspects you may not want to change. For people who suddenly inherit money, they often find that friends, family members and strangers will treat them far differently than they had before learning of the new wealth. This can come as a shock and lead many people to depression and even seclusion. Many people with wealth often become very guarded as they feel that many of the people they meet are only interested in the person because of his or her money.

Issue 2: A lack of meaning.

Scientists who study happiness have found that while not having money can impede a person’s ability to be happy, having over a certain amount is no indicator of increased happiness. This essentially means that you need enough money to live, but having more money will not make you happy. Happiness often derives from a sense of purpose and meaning in your life, and having too much money can get in the way of developing these feelings as you are never really challenged to overcome any material or personal obstacles.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

If you are a person with multiple e-mail accounts, social media webpages, blogs, or other similar digital assets, you may sometimes wonder what happens to these after you die. If you are looking for an answer from your state legislature, you are unfortunately out of luck. Currently there is no state law that addresses this issue directly. However, lawmakers in Nebraska this week are considering new legislation that would include social media sites such as Facebook in the powers granted to a person’s executor.

When you die in Nebraska, a person known as a personal representative is placed in charge of all your property and must see that that property goes to new owners. This personal representative, also known as an executor, currently does not have the express legal authority to access social media websites on the deceased person’s behalf. The new legislation would change this and specifically grants the personal representative this right.

This law would apply to all social media websites, including Facebook, as well as short message service websites such as Twitter, e-mail, blogs and micro-blogging websites.

Currently, when Facebook learns of the death of someone who has a member profile, it restricts access to that profile to only a current friends listed. Facebook also prevents others from logging on to the profile, and keeps the ability to adjust the privacy settings as it sees fit. This proposed legislation appears to be the first of its kind that specifically addresses the issue of digital assets and their place in the estate process.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

Though she died in 2009 at the age of 104, Huguette Clark had spent much of her life outside of the public eye. Her $400 million fortune was passed to her by her copper mining magnate father, William A. Clark, a former United States senator and the man after whom Clark County, Nevada is named. Recently, Ms. Clark’s distant family members have alleged fraud on the part of some of her closest associates and employees during the final years of her life and have asked a New York Surrogate’s Court judge to declare her will invalid.

Having spent the last several decades in a Manhattan hospital room, Ms. Clark had largely been unknown to the public eye until early 2009 when it was revealed that she had several New York properties that had been unoccupied for decades. She died later that year, and the drama that surrounded her estate has kept her name in the headlines.

Since her death, the status of her $400 million estate has been in limbo. It was previously revealed that the two people she named as executors, her attorney and her accountant, had mishandled her estate and a judge removed them from their positions. A criminal investigation is currently ongoing.

Now, Ms. Clark’s remaining distant family members asked a judge to throw out the will and to adopt a previously created will instead. Ms. Clark’s last will left nothing to the family, but her older will did. The court has yet to rule on the fraud allegations.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

Getting started with estate planning is hard enough considering the weighty issues involved. When you add to that calculation some of the more common myths surrounding the process, you can end up like most Americans and not have any estate plan at all. Let’s try to dispose of some of the most common myths that may be standing in your way.

Myth 1: I’m young, so I don’t need a plan.

Reality: While it is true that young people do not face the same issues that the elderly do, everyone over the age of the 18 needs some kind of estate plan. Your plan will not only let you decide how you want your property distributed, but will also be there in the event of a catastrophic illness or injury.

Myth 2: I can make my own plan.

Reality: This is mostly true. There is no law that requires you to hire an attorney to help you make an estate plan, and there are numerous self-help guides and products available that you can use. However, the laws that impact estate planning are changing constantly, and not just with new legislation but also with new court rulings. An estate planning attorney not only knows what these laws are, but understands how they affect individuals and can give you legal advice about what you should do to take advantage of them.

Myth 3: I can create one and be done with it.

Reality: An estate plan, like your muscles, needs to be use regularly. If you let it atrophy, it may be completely useless by the time it takes effect. You should always review your state plan on a regular basis and make changes as necessary.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

When she died at the age of 48 this past weekend, Whitney Houston left behind a sizable catalog of music and films. It should come as no surprise to anyone that her untimely death has also sparked a sudden and intense increase in sales of her works. In less than a day from the announcement that she had died, the song “I Will Always Love You” became the top-selling single on iTunes. This, along with all the other associated sales that stand to increase after her death and the surrounded media attention, will add substantial value to her estate.

While Ms. Houston had been a popular artists in the 80s and 90s, her fan base has become much smaller as she has not been a regular presence in popular music for at least the last 10 years. Her 2009 attempted “come back” did not meet with success, though she still has a fan base with emotional ties to her music.

Industry experts say that though her fan base is smaller, they \ will continue to make purchases now that she has died. However, her death is not as likely to lead to as a massive a post death buying frenzy as, say, Michael Jackson’s did in 2009. As of 2011, Mr. Jackson remains the top selling deceased artists, with proceeds from sales of his work earning more than $170 million for both his estate and the companies that own interests in it.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

Question 1: What is a guardianship?

Answer: A guardian is a person who takes over the legal right and responsibility to care for someone else. Typically, guardians are appointed over children who are not legally capable of looking after themselves or adults who are legally incapacitated. Guardianships are common for adult children with disabilities as well as elderly parents who are suffering from a medical condition such as dementia or Alzheimer’s disease.

Question 2: Who appoints the Guardian?

Answer: In the state of Washington, the Superior Court of the county in which the person is located has the ability to appoint a guardian. The court has the ability to name a full or limited guardianship, both of the estate and of the person. A guardianship of the estate is the power to care for the incapacitated person’s property and money, while the guardianship of the person is the ability to care for the care and well-being of the person.

Question 3: Who can be a Guardian?

Answer: Anyone over the age of 18 who is of sound mind can serve as a guardian. However, if that person has been convicted of a felony or misdemeanor that involves moral turpitude, that person is pro-clued it from serving in a guardianship role. In general, crimes of moral turpitude are those that have malicious intent. These include property crimes such as fraud or robbery, as well as violent crimes and other crimes against people.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

While most adults have the legal capacity to care for themselves and determine their own choices, some do not have this ability and must have others who stand in for them. This typically happens when an adult has a disability or medical condition that prevents him or her from maintaining mental capacity. In such situations, a court must step in and appoint a guardina, a person who has the legal authority to make specific types of decisions on behalf of the incapacitated adult. There are, however, alternatives to guardianships that allow incapacitated adults to maintain as much of their decision making rights as possible. The types of alternatives available differ by state so you should consult a local estate planning attorney for specific advice.

• Power of Attorney: A power of attorney is a document a person can create that gives someone else the right to make decisions for the grantor. You can only grant power of attorney if you already have legal capacity, so those with disabilities typically cannot create power of attorney. Adults with capacity can create powers of attorney that take effect if the adult ever loses that capacity.

• Trust: Parents or relatives of a person with disabilities can create a trust that provides financial support for a person with disabilities. Similar to a power of attorney, the trust is a private instrument and, once created, does not have to be approved by a court.

• Limited Guardianships: States allow for different kinds of guardianships, some of which allow the incapacitated adult to make various types of decisions. These different types of guardianships can differ widely, but all require a court to grant guardianship powers.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

If you were smart enough to create a Will in the first place, you should exercise that same intelligence to create a new Will when your life changes. To help you, here is a list of the top five things that may occur in your life to necessitate drafting a new Will and revoking your existing will.

1. You are now happily married! If you created a Will while you were single, you should probably draft a new Will after marriage. In many states, you and your spouse can draft joint Wills.
2. You are now unhappily married! If you are contemplating divorce, in the midst of separation, or are already divorced, you should create a new Will. Although most state laws treat divorcing spouses as having predeceased you, your state may have different probate laws.
3. You have new children. If you created your Will when you were childless, you should create a new Will to incorporate your new additions. If you added another child to your existing brood, creating a new Will makes it unlikely to unintentionally omit your new bundle of joy.
4. You divorce and then remarry. In this case, you may very well have blended families. You should make sure you talk to your estate planning attorney about how your state’s probate laws treat stepchildren.
5. You want to disinherit someone or add someone to your Will. You will have to revoke your old Will or amend it by a codicil to change your existing bequests.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

Small estate probate administration exists in some form in all states. This process allows estates below a specific value to be probated without all the requirements of formal, supervised probate. Even if your state does not require the estate administrator of a small estate to have a probate attorney, you’d be better off at least talking to one if you are named executor or administrator. Probate laws differ by state, and only a qualified probate attorney will know all the technical details that you’ll need to know to properly administer a small probate estate.

Qualification: Even before you begin the small estate probate process you may have to talk to an attorney to make sure you qualify. Each state determines what kind of estate qualifies for simplified procedures, and each has its own different standards. For example, states typically set a dollar limit for small probate estates, but how they determine what qualifies as probate property differs.

Procedures: Small estate probate typically requires interested parties to file affidavits with the court. Anyone claiming property must file an affidavit that states what property he or she is entitled to take and do so within a specific time period. However, states may have different forms claimants have to file depending on whether the decedent died intestate or left behind a Will. They may also require the individual claimants to file their forms or have the estate administrator do it.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.

When you establish a living trust you create a unique relationship between several key people. The settlor is the person who creates the trust and gives the beneficiary the right to use that property. The settlor, sometimes called a trustor or grantor, must also appoint a trustee. The trustee administers or manages the estate so the beneficiary can use the property and must do so in accordance with the terms the settlor establishes. But can the settlor also serve as the administrator and name him or herself as the trustee? Generally, yes, though there are a couple of issues you need to consider.

The settlor of a living trust can name him or herself as the trustee. However, the grantor must be careful to manage the trust carefully or the ability of a trust to avoid estate tax may be compromised. Also, testamentary trusts are not capable of having a settlor who serves as trustee. A testamentary trust is established through the settlor’s last will and testament, a document that only takes effect when the settlor dies. Further, regardless of the type of trust you create, you cannot be a settlor and serve as both trustee and beneficiary. You should speak to an estate planning attorney if you’re considering creating a trust and serving as trustee or beneficiary so you don’t run into problems later.

Byrd : Garrett, PLLC is a member of the American Academy of Estate Planning Attorneys.