Christopher T. Craig

FAQ About Estate Law in Virginia

September 26, 2023

What happens if you die without a will? Your probate estate is distributed under the intestate (without a will) laws of your state. What does a will do? A will tells your Executor how to distribute your probate estate. How is my property transferred at death? The answer depends on what type of property (real, tangible intangible) and how your property is owned (only by you? Jointly? With a beneficiary listed?). I’m not wealthy, do I still need estate planning? Yes, if you do not want your probate estate distributed under the laws of your state to your heirs at law. Do I need to create a medical directive? Everyone should have one! What is a power of attorney? A document wherein you name a person as your agent to make decisions for you. How often should I update my estate plan? (i) whenever there is a change I law that affects your estate; (ii) whenever there is change in YOUR life that affects your estate; and (iii) periodically – e.g., every 8-10 years – to ensure that the people and distribution requirements of your choosing have not changed. I’m worried my family

FAQ About Revocable Living Trust (RLT) in Virginia

September 12, 2023

What is an RLT? Generally, a vehicle for estate planning to avoid probate, guardianship and conservatorship, while preserving family wealth. What is the difference between a RLT and irrevocable trust? As a general rule, an irrevocable trust cannot be changed and often control over the trust is granted from the trust maker to a 3rd party. RLTS are very flexible, the terms can be changed and the maker of the trust can end it any time he or she wants. How is a RLT different from a will? A RLT is active and serves its maker upon being funded. A RLT can aid the maker during his or her lifetime and can dispose of assets outside of probate after the maker dies. Wills are only used to dispose of the maker’s PROBATE ASSETS (assets owned by the decedent in his or her OWN NAME with NO co-owner and NO beneficiary listed). What are the benefits of having a trust? Use of a RLT allows you to avoid probate, provide easier estate administration, is private (not public) among other pros. Can changes be made to my living trust after death? No. After death the RLT is irrevocable.

Beneficial Ownership Information Reporting

August 8, 2023

On January 1, 2024, corporations, limited liability companies and other entities will be required to begin report information about their “beneficial owners;” people who either exercise significant control over the entity or who own 25% or more of the entity. This mandate comes down from the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). Existing entities have up to one (1) year to report while new entities will have 30 days. Why The reason offered for the new reporting requirement is that the government decided that ‘lack of transparency’ allows criminals and corrupt actors to hide their identities and launder funds through US companies. Under current state laws, “Owners” and management types are often anonymous. It is unclear whether this time-consuming rule will “solve” the identified problem, but unless and until the rule is withdrawn or blocked, it is a mandate. Beneficial Owner A “beneficial owner” is an individual who (1) directly or indirectly exercises “substantial control” over the entity, or (2) directly or indirectly owns or controls 25% or more of the entity “ownership interests.” “Substantial control” depends on the power the person wields such as influence over important company decisions by a senior officer, whether or

Estate Planning Checklist for Police Officers

August 1, 2023

Being a police officer is a high-risk job, making it important to plan for your family’s future in the event that something happens to you in the line of duty. At Cook, Craig, and Francuzenko, we are truly grateful for our local police officers, and we take pride in helping them plan. That’s why we compiled this estate planning checklist for police officers. What is Estate Planning? Estate planning is important for everyone, but especially for police officers and first responders who put their lives on the line every day to protect our communities. Even in retirement, some face a higher risk of unexpected illness and death. For example, firefighters have an increased risk of heart disease and cancer, while police officers typically experience stress related illnesses. Having an estate plan ensures that your wishes and desires are met for your loved ones, and that your wishes regarding your medical care and finances are met, no matter the circumstances. Advanced Medical Directive If you become incapacitated for any reason, you will need an advanced medical directive with a medical power of attorney. This document gives your chosen agent the power to make medical decisions on your behalf if you cannot.

Understanding Nonprofit Filing Requirements

March 30, 2023

If you are interested in creating a tax-exempt, nonprofit organization, it is important to understand filing requirements. Most nonprofit entities are non-stock corporations qualified as tax-exempt under Section 501 (c)(3) or (c)(4) of the Internal Revenue Code. They are often religious, charitable, scientific, literary and educational, and in some cases they are social organizations, clubs, business leagues and the like. Starting a Nonprofit Nonprofit organizations have different purposes and missions but are created in a similar manner with two major components: (i) state incorporation as a non-stock corporation, and (ii) applying for and securing tax-exempt status from the Internal Revenue Service (IRS). Incorporation can be accomplished quickly, while securing IRS tax-exempt status may take several months. Once you’ve incorporated and secured tax-exempt status, the organization will enjoy the benefits of tax-exempt status, limited liability, and perpetual existence. Incorporating The first step toward creating a nonprofit is state incorporation. In Virginia, non-stock corporations require the founder(s) to: Select a name. Adopt articles of incorporation, bylaws, and required resolutions. Appoint a registered agent and registered office. Choose Officers and a Board of Directors. Hold an initial meeting of the Board of Directors. Obtain a Federal Employer Identification (FEIN) Number and any required