Estate Planning Lawyer in Arlington, VA

Estate planning does not have to be overwhelming.  We use a three-step process designed to help you organize your thoughts, so your wishes are clearly expressed in a comprehensive set of estate planning documents. 

The first step is to gather information and discuss significant provisions of your planning documents.  Topics discussed in the initial meeting are centered around people and estate plan.  Our goals are to answer your questions and make tentative decisions about people and plan so your documents can be drafted and sent to you for review. 

The second step is to draft and review your estate planning documents.  The drafting and review process helps ensure you understand key provisions in your documents, and that those provisions truly reflect your intentions.  Tentative decisions that were made in step one are confirmed and solidified as correct for your situation.  If any changes need to be made before your documents are finalized, they are identified and rectified in step two. 

The third and final step is for you to sign the final versions of your documents in our office in front of two disinterested witnesses and a notary and complete specific homework items, which we will provide, to make sure your plan works as intended.  A key part of the third step is making sure asset titling and beneficiary designations are correct to ensure future transfers are made as efficiently as possible within the parameters of your plan.  We guide you each step of the way. 

Once your documents have been signed, they will be effective indefinitely but can be changed by you at any time in the future if your personal circumstances or situation changes, or if the federal tax or local law is changed or updated.  Moving forward, it is important to periodically check the provisions of your documents, focusing on people and plan, to confirm they still make sense.  If documents are outdated, we help clients bring them up-to-date in an efficient manner. 

At the Law Office of James A. Gillis, we recognize each client has their own unique circumstances that need to be considered in order to craft an appropriate set of estate planning documents.  We have years of experience helping individuals and families in the Northern Virginia area, including Arlington, Fairfax, Alexandria, Loudoun, and other Counties and Cities in Virginia, as well as in the District of Columbia.  Please contact us to discuss your situation and decide whether you would like to begin working together to create an estate plan tailored to fit your needs. 

Elements of a Will

Crafting a will with your attorney is an essential step in ensuring your intentions are carried out after your passing. A properly drafted will serves three critical purposes. First, for parents with minor children, a will allows you to name guardians who will care for your children in the event of your death. Second, it designates executors—individuals responsible for managing and settling your estate. Lastly, a will provides a structure for distributing all probate assets, including the “residuary estate,” which refers to any remaining assets not explicitly addressed elsewhere.

Depending on your estate planning approach, there are two common types of wills to consider. A simple will organizes gifts into three major categories: specific gifts (such as real estate or heirlooms), pecuniary (cash) gifts, and residuary gifts, which together must account for 100% of the estate. Alternatively, a pour-over will works as part of a broader estate plan that includes a revocable trust. With this approach, all assets, including the residuary estate, are typically given to the trust, which serves as the central mechanism for asset management and distribution. The pour-over will function as a “clean-up” tool, ensuring any assets not previously transferred into the trust during the testator’s or testatrix’s lifetime are ultimately directed to it.

To avoid probate and facilitate smoother estate management, it’s often advisable to place assets into a trust or name the trust as a pay-on-death or transfer-on-death beneficiary wherever possible. Any remaining assets that were not addressed beforehand will then be “poured over” into the revocable trust as dictated by the terms of the will. This comprehensive approach helps ensure your wishes are upheld and your loved ones are cared for without unnecessary complications.

Elements of a Trust

Establishing a trust offers several key advantages, particularly when using a revocable living trust. One major benefit is better lifetime disability planning. If a situation arises in which family members are not the appropriate fiduciaries (agents or trustees who serve as substitute decision-makers for financial matters in the event of disability), banks and trust companies can be named as successor trustees under a revocable trust. While some banks may agree to serve as agents under a power of attorney, they are typically more willing to act as trustees under a revocable trust.

Another significant advantage of a revocable trust is avoiding probate at death. Upon the death of the trust creator, the revocable trust becomes irrevocable and disposes of assets like a will, but in a private setting. This avoids the public oversight and administrative complexities associated with the probate court process. For example, an executor of a will is required to file an inventory and detailed accountings, supported by numerous vouchers, with the Commissioner of Accounts, who serves as a deputy of the Circuit Court. In contrast, a successor trustee under a revocable trust fulfills these responsibilities in a private manner, accountable only to the beneficiaries, without the need to file documents with the Court or Commissioner. This results in cost savings, no public disclosure, and fewer administrative burdens.

Additionally, trusts are inherently more flexible and can support more complex and personalized estate planning goals than a traditional will. This makes them a powerful tool for those looking to create a comprehensive and customized plan that addresses their specific needs and circumstances. By working with a qualified estate planning attorney, you can ensure that your trust is properly established, aligns with Virginia laws, and effectively meets your unique goals.

Power of Attorney and Health Care Directives

Planning for the possibility of incapacity is just as important as preparing for what happens after death. A power of attorney allows someone you trust to handle financial matters on your behalf if you're unable to act. Health care directives give instructions about medical treatment and appoint a health care agent to make decisions if you can’t.

Several types of powers of attorney can be included in estate planning. A durable power of attorney remains effective even if you become incapacitated. A limited power of attorney, on the other hand, applies only to specific tasks or decisions and provides flexibility for certain situations. Springing powers of attorney take effect only under defined conditions.

Health care planning is essential for protecting your wishes. A living will allows you to specify your medical treatment preferences in advance, while a health care proxy appoints someone to make decisions if you’re unable. Do-not-resuscitate orders also offer clear guidance on life-saving measures.

Including these documents in your estate planning can give you and your family peace of mind. Acting early allows time for careful consideration of your choices and for discussing them with your loved ones. Taking proactive steps can make a significant difference in how smoothly affairs are handled later.

The Legal Requirements for a Power of Attorney in Virginia

Creating a valid power of attorney in Virginia requires compliance with specific legal requirements. First, the individual granting the authority, known as the principal, must be of sound mind and at least 18 years old at the time of execution. The power of attorney document must be signed by the principal or by another person in the principal’s presence at their direction.

Additionally, for the document to be seen as genuine, the signature must be properly notarized. While it is not mandatory to record the power of attorney, certain transactions, such as real estate matters, may require it to be recorded with the local clerk of court.

Beneficiaries and Asset Transfer

One of the most important aspects of estate planning is naming beneficiaries and determining how your assets will be distributed to them. Retirement accounts, life insurance policies, and other financial accounts often have beneficiary designations that override a will. Regularly reviewing and updating these designations prevents unintended outcomes. Key considerations for asset transfer:

• Update beneficiary designations: Keep retirement accounts and insurance policies current.

• Consider minor children: Use trusts or custodial accounts to protect assets.

• Review jointly held property: Clarify how joint accounts and property pass on death.

• Plan for charitable giving: Include gifts to favorite causes in your estate plan.

Designing a clear plan for beneficiaries helps prevent disputes and delays after your death. Each decision can have long-term implications, so decide carefully and thoughtfully. Taking the time now to review and update your beneficiary designations regularly can make a significant difference for your loved ones in the future.

Tax Planning Strategies

Virginia offers various tax planning opportunities to help individuals and families effectively manage their estates while minimizing tax liabilities. Here are some noteworthy tax planning strategies available in Virginia:

• Virginia Estate Taxes: Unlike some states, Virginia does not impose a state-level estate tax. However, federal estate tax laws still apply, so it is important to account for assets that exceed the federal exemption threshold.

• Use of Gifting Exemptions: Virginia residents can take advantage of the federal annual gift tax exclusion, which allows individuals to gift up to a certain amount to each recipient each year without incurring gift taxes. This can be a powerful way to reduce the taxable estate over time.

• Trusts for Asset Protection: Establishing irrevocable trusts, such as grantor trusts or charitable remainder trusts, can protect assets while reducing estate taxes. Virginia residents can tailor these trusts to reflect specific family or charitable goals.

• Utilizing Family Partnerships: Family limited partnerships allow the transfer of business interests to family members at discounted values, significantly reducing estate and gift tax obligations. These partnerships are particularly beneficial for families with substantial business interests or investment portfolios.

• Retirement Account Planning: Virginia taxpayers can also benefit from smart tax planning around IRAs and other retirement accounts. This includes strategies such as Roth IRA conversions and ensuring tax-efficient beneficiary designations.

Proper tax planning in Virginia aligns your estate plan with your financial goals and can also ensure that your legacy benefits your family with minimal financial complications. Our estate planning attorney can help you stay compliant with laws and maximize the benefits of these strategies.

Incapacity Planning and Long-Term Care

Long-term care decisions, such as nursing home care or in-home support, can have financial and emotional consequences for families. Early planning can provide clarity for you and your loved ones and help preserve assets for future generations. Considerations for long-term care:

• Long-term care insurance: Helps cover costs of extended medical care.

• Medicaid planning: Understand eligibility and preserve assets.

• Advance directives: Communicate your care preferences in advance.

• Family discussions: Discuss expectations and responsibilities with loved ones.

Incorporating incapacity planning into your estate plan helps avoid stress and confusion during difficult times. Planning ahead offers peace of mind for you and your family, providing clear guidance and minimizing potential conflicts.

Reviewing and Updating Your Plan

Estate planning isn’t a one-time process; it requires periodic review and updates. Life events, such as marriage, divorce, births, deaths, or major financial changes, can all affect your plan. A consistent review schedule makes sure that your estate plan reflects your wishes over time. When to review your estate plan:

• After major life events: Marriage, divorce, or the birth of a child.

• After financial changes: Sale of property, inheritance, or business changes.

• When laws change: Stay informed about updates to estate tax or inheritance laws.

• Periodic review: Every 3–5 years or as circumstances evolve.

Regularly reviewing your estate plan keeps it aligned with your goals. It also helps you identify areas that may need adjustment or improvement. Our attorney can review your documents and provide guidance on any necessary updates.

Charitable Giving and Legacy Planning

Estate planning also provides an opportunity to leave a lasting legacy through charitable giving. You can include donations to favorite charities or set up foundations to support causes you care about. This approach allows you to continue making a difference even after you're gone. Options for charitable giving include the following:

• Charitable trusts: Provide income to beneficiaries while supporting charitable causes.

• Bequests in your will: Leave a specific amount or percentage to a charity.

• Donor-advised funds: Contribute now and distribute over time.

• Memorial gifts: Honor loved ones while supporting causes you value.

Incorporating charitable giving in estate planning allows your values to be reflected in your legacy. Planning makes sure that your contributions are meaningful and effective. Thoughtful planning can also maximize the impact of your gifts while providing potential tax benefits. We can help structure your charitable giving to align with your goals.

Estate Planning Attorney Serving Arlington, Virginia

Estate planning is an essential step to protect your family and manage your assets. At the Law Office of James A. Gillis, we assist clients in Arlington, Virginia, in creating plans that reflect their wishes and priorities. Taking the time now to plan provides clarity and reduces stress for your loved ones later. Contact us to schedule a consultation for our estate planning services.