ACTEC Fellow Spotlight - Jennifer Schooley

We are thrilled to share the wonderful news that Jennifer Schooley has been chosen to be featured in the ACTEC Fellow Spotlight! It's such a well-deserved honor, and we couldn't be happier for her. Congratulations, Jennifer! The below spotlight is a testament to Jennifer's outstanding expertise and contributions to the field.

“Virginia Fellow Jennifer Lee Schooley is in the Spotlight! Jennifer was elected to the College in 2020, and serves on the Family Law Task Force, Practice Committee, and State Laws Committee.

How did you first learn about ACTEC and decide you wanted to seek election to the College?

My first (and only) supervising attorney and mentor, Birch Douglass, was an active ACTEC Fellow and regularly attended ACTEC's National Meetings. It was he who relayed to me the value of the relationships and friendships made through attending meetings and piqued my interest in joining. Before becoming a Fellow myself, I met many Fellows through the American Bar Association’s Tax Section and local bar activities, and I appreciated their support and advocacy of my career along the way.

What do you value the most about being an ACTEC Fellow?

I, too, appreciate the comradery of ACTEC’s National and Regional Meetings, but I have also benefited from an expanded network of legal thought leaders and persons in related industries who are ACTEC sponsors. Part of my morning reading is the email coming through on the ACTEC-PRAC Listserv. I am both impressed by the intellect of other Fellows and comforted that many struggle with similar issues in their offices.

What do you want Fellows to know about you that they might not know?

While I love sports and activities related to water (scuba diving, skiing) and frozen water (snow skiing), as an adult I learned to sail. I am now part of a racing team on the sailing vessel Nanuq, which participates in regattas on the Chesapeake Bay as well as ocean races on the Atlantic to destinations such as Newport, Bermuda, Block Island, and Halifax. Our Fall racing series starts Labor Day weekend, but what the crew is really lobbying the captain to do is register for the Fort Lauderdale to Key West Race in January to get a winter tan. If you ever get a response email from me that says I have “limited access to email,” it is real and I’m probably out to sea.”

Jennifer continues to enjoy her time as a Member of ACTEC and is looking forward to the 2024 Fall National Meeting this September in Chicago, IL. If you will be attending in September, contact Jennifer to connect.

Why Have an Estate Plan?

Death and dying can be an uncomfortable topic for many. Considering that money and family dynamics can also feel taboo, it comes as no surprise that many people put off estate planning for as long as possible. At Schooley Law Firm, we pride ourselves on making these uncomfortable topics feel more manageable and educating our clients on the “why” of what we do. In that spirit, we are here to answer a few basic questions: what is estate planning, and why do you need one?

What is estate planning?

Put simply, estate planning is planning for your incapacity and death. While an estate plan can accomplish much more, at its most basic level, it ensures your wishes for your assets and your body/health are respected, even if you lack the capacity to speak for yourself or have already passed away.

An estate plan is unique to every client and situation, but there are a few common components: a will, a revocable trust, a power of attorney, and an advance medical directive. Each is explained briefly below.

A will is a document that disposes of your assets that are not otherwise controlled by joint ownership or beneficiary designation. Your will also appoints an executor, who will be tasked with seeing your estate through the probate process. Check out our other blog posts for more information on the roles of an executor. Finally, for those with minor children, your will can provide a strong recommendation to the court of who you would like to act as guardian of your children.

Revocable trusts are not necessary for everyone, but they can be helpful to many. A revocable trust is an entity that you create and fund with assets, with one of many goals being avoidance of probate at death. The revocable trust can work in tandem with your will to control the disposition of your assets and can provide for the assets to continue to be held in trust after you pass, rather than being distributed outright to your beneficiaries. This is often especially appealing to individuals leaving assets to minor children, since many parents (understandably!) do not want their minor children to have unlimited access to large sums of money.

A power of attorney also deals with your assets, but it is meant to plan solely for the possibility of incapacity. A power of attorney allows your appointed agent (your “attorney-in-fact”) to have control and access to your funds and accounts, with the goal of protecting your assets, paying your bills, and generally taking your place as the manager of your financial affairs in the event you become incapacitated. It is a role that requires a lot of trust.

Finally, unlike a will, revocable trust, and power of attorney, which all deal with your assets, your advance medical directive deals with your health and body. In the event you are incapacitated, your advance medical directive and your appointed healthcare agent are put in place to advocate for you and your health when you are no longer able to. They are also in place to ensure your healthcare wishes are respected.

Of course, there are laws in place that make these decisions in the absence of an estate plan, but these laws do not reflect your unique situation or family dynamics, and certainly do not provide for tax advantages! At Schooley Law Firm, we like to say that estate planning is opting out of the default rules.

Why do I need an estate plan?

 A common misconception about estate planning is that it only benefits the wealthy. While it is true that some of the major advantages of estate plans are creditor protection, minimization of taxes, legacy building, and controlling the disposition of assets, these are far from the only benefits. Here are a few non-wealth related reasons to create an estate plan:

1.    Protecting your wishes in the event of incapacity;

2.    Making the estate administration process easier on your loved ones after you pass;

3.    Taking the burden off of your loved ones of having to guess what you may have wanted; and

4.    Providing for your children in the event of your early demise.

These are just a few of many advantages of estate planning that apply to everyone, and not just that “one percent.” Even if you do not have significant assets at this point in your life, but you are slowly building and growing, an estate plan can help with that growth not only during your life but for generations to come. You may think of an estate plan not as a step toward the end, but as an investment in your future and the future of many generations to come.

Estate plans are unique to each client and each situation, and at Schooley Law Firm we love the challenge and creativity in finding the right plan for our clients. Even the same clients may need drastically different estate plans for different points in their lives. If you already have an estate plan in place, but you recently acquired a new home or more assets, had a death in the family, or had a child, it’s time to revisit that estate plan. If you don’t already have an estate plan, call Schooley Law Firm, and we would love to take the time to get to know you, your family, and find the best plan for you.

Connelly v. United States

A recent United States Supreme Court decision in the case of Connelly v. United States may affect how we use insurance policies in buy-sell agreements. Specifically, the case will impact the valuation of businesses that use a redemption buy-sell agreement. As a result of this ruling, insurance proceeds received by a company by reason of a redemption buy-sell agreement will result in an increase in the value of the business.

By way of background, the case involved two brothers, Michael and Thomas Connelly, who were the sole shareholders of a corporation. The corporation owned and was the beneficiary of a life insurance policy on each brother, so that if one brother died, the corporation could use the life insurance proceeds to redeem the deceased brother’s shares of stock. After Michael died, the Internal Revenue Service assessed taxes on his estate, including his stock interest in the corporation. The IRS determined that the corporation’s fair market value included the life insurance proceeds intended for stock redemption, and Michael’s estate sued for a tax refund. On appeal from the Eighth Circuit, the Supreme Court was asked to determine whether the life insurance proceeds were properly included in calculating the fair market value of the corporation for valuing the decedent’s shares for purposes of the federal estate tax. The circuit courts have been split on this issue, and so the Supreme Court stepped in to clarify the issue at hand.

 In a unanimous opinion, the Supreme Court sided with the United States, holding that a corporation’s contractual obligation to redeem shares is not necessarily a liability that reduces a corporation’s value for purposes of the federal estate tax and that the value of the life insurance proceeds should be included for purposes of valuing the corporation. The Court held that, first, the contractual buy-back obligation does not impact the value of the company, as it does not economically impact any shareholder, and second, the life insurance proceeds are included in the value of the company for purposes of valuing the decedent’s shares, because this valuation must occur as of the date before the decedent’s death when the life insurance proceeds are still a company asset and not yet available to pay out to redeem the shares.

The practical result of this decision is that the insurance proceeds received by the corporation will increase the value of the business, possibly making redemption buy-sell agreements less appealing to many. If you have questions or wish to discuss if alternative succession plans may better align with your goals, call Schooley Law Firm today. This is likely to be an evolving area of law as the impacts of this decision play out and we are here to ensure our clients, friends, and advisors stay abreast of the situation. 

Revocable Trust vs. Irrevocable Trust

Revocable trusts and irrevocable trusts are two types of trusts that serve different purposes. One of the most notable differences is that when a revocable trust is created the creator of the trust (“the grantor”) may revoke or amend the trust where an irrevocable trust is not as easily amended. Both types of trusts are not subject to probate court and can help protect your assets and leave them to specific beneficiaries. They each include a grantor, beneficiaries who will receive your assets, and a trustee who ultimately controls and distributes the assets. It is important to understand the difference between a revocable and irrevocable trust in order to create a strong estate plan that meets with you specific needs and goals.

Revocable Trusts

A revocable trust, sometimes known as a living trust, is a legal agreement in which the creator of the trust (the “grantor”) transfers ownership of their assets into the trust, but retains control over the assets during their lifetime. The trust can be altered or revoked by the grantor at any time during their lifetime, which is why it is called a revocable trust.

One of the main advantages of a revocable trust is flexibility. Since the grantor can make changes to the trust at any time, they can adapt to changes in their life circumstances. Additionally, a revocable trust can help avoid probate, which is the court-supervised, lengthy, and expensive process of distributing a person's assets after they die. In addition to probate avoidance, a revocable trust can also provide for the management of assets if the grantor becomes incapacitated and unable to manage their affairs.

Irrevocable Trusts

An irrevocable trust cannot be altered or revoked once it has been created, hence the name. This type of trust is used to protect assets from creditors, reduce estate taxes, and provide for long-term care. One common irrevocable trust is known as an ILIT. ILIT stands for Irrevocable Life Insurance Trust. It is a type of trust that is used to own a life insurance policy. The purpose of an ILIT is to remove the life insurance proceeds from the taxable estate of the insured so that they are not subject to estate taxes upon the insured's death. Irrevocable trusts offer greater asset protection and potential estate tax benefits. Since the assets are transferred out of the grantor's ownership, they are typically protected from creditors and are not always subject to estate taxes.

When deciding between a revocable trust and an irrevocable trust (or both!), it is important to consider your goals and the specific needs of your estate & tax plan. Our qualified estate planning attorneys are here to help you evaluate your options and determine which type of trust is right for you.

If you need help with creating your estate plan, contact us today to schedule a consultation and start planning for your future.

Rev. Rul. 2023-2’s Impact on Estate Plans

Estate planning is an important aspect of financial planning and irrevocable trusts are often an important part of an estate plan. An irrevocable trust is a legal document that allows a grantor to transfer assets into the trust, which are then managed by a trustee for the benefit of the beneficiaries. Unlike a revocable trust, an irrevocable trust owns the assets (taking ownership away from the grantor) making them safe from judgments and creditors of the grantor. An irrevocable trust also allows for assets within the trust to pass outside of the grantor’s taxable estate.

However, a new ruling from the IRS, Rev. Rul. 2023-2, has significant implications for irrevocable trusts. The ruling clarifies that if a grantor dies and assets in the irrevocable trust are not included in the grantor's taxable estate, those assets will NOT receive a step up in basis at the time of the grantor's death.

Step up in basis refers to the increase in the value of an asset for tax purposes when it is inherited by a beneficiary. Essentially, the cost basis of the asset is increased to its fair market value at the time of the original owner's death, which means that the beneficiary can sell the asset for its current value without paying capital gains taxes on the appreciation that occurred during the original owner's lifetime. This can be a significant tax benefit for heirs, particularly for assets that have appreciated significantly over time.

Without a step-up in basis for assets in an irrevocable trust, the beneficiaries of the trust may face a higher tax burden when they sell those assets. The ruling highlights the need for ongoing review and monitoring of estate plans to ensure that they remain up-to-date and in compliance with changing tax laws and regulations.

The new ruling from the IRS, Rev. Rul. 2023-2, has significant implications for irrevocable trusts and estate planning. By working with a qualified estate planner like the ones at Schooley Law Firm, individuals can ensure that their assets are distributed according to their wishes while minimizing tax liability for their beneficiaries.

Preparing for Your Initial Estate Planning Meeting

Preparing for your initial estate planning meeting lets you clarify your personal and financial goals and objectives, ensuring that you make the most informed decisions regarding your own care, the care of your family, your assets, and your beneficiaries. Additionally, being organized and informed in advance can help streamline the meeting, making it more efficient and productive.

During our first meeting, we will discuss your concerns, aspirations for your legacy, your particular family profile and varying personalities, your assets, and how your assets are owned. You may have existing documents that will be necessary to understand in the context of your planning, but it is not necessary to have these for our first meeting.  If you have time, begin gathering your existing estate planning documents, any premarital or marital agreement between you and your spouse, any separation agreements or divorce orders, any corporate, partnership, or LLC documentation for any business you own in whole or in part, deeds to your real estate, and the most recent gift tax return you filed. If you do not have time in advance of our meeting, we can guide you about what documents we need once we meet.

To best prepare for your meeting, please reflect on the following five considerations:

Your Goals: What do you hope to achieve with your estate plan? Are you primarily concerned with protecting your assets for your children or other loved ones? Or are you more focused on making sure your healthcare wishes are respected if you become incapacitated? Having a clear idea of the direction you envision yourself heading and your ultimate goals can help us tailor your estate plan to meet your specific needs.

Identify Your Assets and How they are Titled: Take some time to inventory your assets, including your home, investments, retirement accounts, and any other property you own, and review your titling (joint or individual) and beneficiary designations. This will help us understand how your current titling and beneficiary designation affect your asset disposition and how that may need to change to complement your overall estate plan. Our client intake form will help organize this information.

Your Beneficiaries: Think about who you want to inherit your assets when you pass away and how. Do you have a spouse or children that you want to provide for? Are any of your beneficiaries minors, have special needs, or require asset protection? Or are there other loved ones or organizations that you want to benefit from your assets? Trusts can help prevent young beneficiaries from having access at age 18 for any beneficiary and can shield these assets from creditors or legal judgments for a longer period or lifetime. For individuals with special needs, a trust can be used to provide ongoing financial support while preserving their eligibility for government benefits.

Your Healthcare Wishes: If you become incapacitated and are unable to make decisions for yourself, who would you want to make healthcare decisions on your behalf? What kind of medical treatment do you want to receive, and what kind of treatment do you want to decline?

Your Executor/Trustee/Power of Attorney: Who do you want to handle your assets after you pass away or during your lifetime if you become incapacitated and are unable to manage your affairs? This person will be responsible for managing your bills and investments during your incapacity and for distributing your assets according to your wishes at death. Your Executor and Trustee ensure that your estate/trust is settled in a timely and efficient manner. A Trustee may be asked to manage assets for your beneficiaries after your death. It is important to choose someone who is trustworthy, responsible, and has good judgment for each of those roles. Below are links to articles drafted by our firm with guidance to assist you in making these various fiduciary nominations. 

Healthcare Power of Attorney

Power of Attorney

Executor

Trustee

How Long Does Probate Take?

Dealing with the death of a loved one is never easy, and the legal process of probate can be confusing and time-consuming. If you're wondering how long it takes for probate, the answer depends on several factors.

First, it's worth noting that not all estates are required to go through probate in Virginia. If the deceased person's assets are held in a trust, owned joint with a right of survivorship, or beneficiary designated for example, probate may not be necessary.  Additionally, if the total value of the estate is under $50,000, probate may be avoided.

Assuming probate is necessary, the timeline can vary.  In Virginia, the executor or administrator of the estate (hereinafter referred to as the “personal representative”) must qualify as personal representative with the appropriate Circuit Court. From there, the court will issue a "Letter of Qualification," which gives the personal representative the legal authority to manage the probate assets.

Once the personal representative has this authority, they can begin the process of gathering the deceased person's assets, paying any outstanding debts or taxes, and distributing the remaining assets according to the terms of the will or through the Virginia Laws of Intestacy. Depending on the complexity of the estate, this can take anywhere from a few months to a few years.

One factor that can slow down the probate process is disputes over the will or the distribution of assets. If beneficiaries or heirs contest the will or disagree about how the assets should be divided, the court may need to intervene. This can add significant time and expense to the probate process.  

Another factor that can affect the timeline is the type of assets in the name of the estate. For example, if the decedent only had cash accounts receiving minimal income, the distribution of assets to multiple beneficiaries after payment of debts and taxes would consist of simple math. On the other hand, if the estate holds bonds, treasury notes, retirement assets, and other marketable securities, a clean split between beneficiaries may not be as simple and can have negative tax implications if not handled properly. Complex assets can also add to the time and expense of preparing the initial inventory, preparing the first and subsequent accountings, and the need to file income tax returns.

Overall, it's difficult to give a definitive answer to how long probate lasts. However, if you're the personal representative of an estate, it's important to stay organized, communicate clearly with beneficiaries and heirs, and work with an experienced attorney to help navigate the process as smoothly as possible.

If you need assistance administering an estate, contact us today at (804) 270-1300 to schedule a meeting with one of our experienced attorneys.

The Case of the Alabama Court Opinion v. Estate Planning

On February 16, 2024, the Supreme Court of Alabama issued its opinion for the case of LePage v. Center for Reproductive Medicine, P.C., holding that embryos are considered children. The case involved three couples who all underwent in vitro fertilization (“IVF”), and all three resulted in a healthy baby. As is standard for IVF, the process of extracting and fertilizing eggs resulted in more embryos than were implanted. This allows the individual undergoing IVF to have more children in the future without having to go through the hormone injections and extraction process again. The unused embryos are then cryogenically frozen and stored at sub-freezing temperatures to be preserved until they are used or destroyed. The three couples in the Alabama case had their unused embryos stored in an Alabama hospital, and in 2020, a patient of the hospital accessed the room. The patient opened the cryo-preservation unit, grabbed the embryos, and after burning their hand from the sub-freezing temperatures, dropped the embryos, causing them to be destroyed.

The three couples brought two suits against the hospital: one for negligence, and one under Alabama’s wrongful death of a minor statute. The second suit was dismissed at the trial court because the trial court held that the embryos were not minors under the statute. The three couples appealed the case to the State Supreme Court, where the Court held that the embryos are people and children, and therefore can be considered minors for purposes of the statute.

While this case was specific to an Alabama statute, it is possible that more state courts could follow in Alabama’s footsteps. Looking at Virginia law specifically, it is unclear whether there is an opening for a similar interpretation under Virginia’s wrongful death statute. Section 8.01-50 of the Code of Virginia provides for civil remedies for family members under a theory of wrongful death. Specifically, Section 8.01-50(B) provides for the “natural mother” to recover in the instance of “fetal death.” “Fetal death” is defined as, “death before the complete expulsion or extraction from its mother of a product of human conception, regardless of the duration of pregnancy.” The use of the term “product of human conception” and the provision that the length of the pregnancy is irrelevant seems to create an opening for IVF embryos to be included under this statute. However, there is also language in the statute that would be inconsistent with the inclusion of IVF embryos. For example, the definition of fetal death describes death before “the complete expulsion or extraction from its mother,” but if the embryo has never been in its mother, can its death be considered before the complete expulsion or extraction?

Even if the death of IVF embryos were included within the definition of fetal death, the current language of the statute would not allow anyone to bring such a suit. Section 8.01-50(B) states that the “natural mother” and only the natural mother can bring a suit for the wrongful death of a fetus. It then defines the natural mother as, “the woman carrying the child.” Again, if the embryo has not yet been implanted in the mother, and may never be implanted in the mother, can the mother fit the definition of natural mother as used here? It would appear not. Thus, there would be no one permitted to bring such a suit, even if it were allowed.

The options for such a suit may be limited in Virginia, but estate planners should be aware of what the Alabama ruling may mean for them. Most obviously, the new ruling considering IVF embryos to be “children” will have a serious impact on how estate planners define children in wills and trusts. Previously, the definition of children was so obvious, that it only needed to be laid out in complex situations such as blended families or where families are anticipating having more children in the future. But if IVF embryos are considered children, leaving the definition broad could have disastrous consequences for estate plans. Imagine, for example, that a couple undergoes IVF and has two healthy babies as a result. They keep several embryos frozen, as is standard for the process, but have no plans to use these embryos. When they die, their trusts create separate shares for each of their children. Technically, the embryos would be considered their children following the Alabama decision. Would the trustee be required to create a share for several groupings of eight cells that are completely unviable and will likely never develop further? This result seems too ridiculous to seriously consider, but it is a possibility under the current law. The same could result from an unclarified use of the term “descendants” in a parent’s will or trust when their child undergoes IVF. This is not even to mention the uncertainty on how this would interact with the rule against perpetuities. While the results seem too ridiculous to come to fruition, a cautious estate planner should implement a definition of children and descendants that makes it clear that frozen embryos are not included.

There is much to still be considered in this evolving area of law, and many questions remain unanswered. Unfortunately, clarity is not on the horizon. Because this ruling was the result of a state supreme court case and was an interpretation of state law, there is no clear path to appeal this decision to any federal court. It is now in the hands of the Alabama state legislature to clarify or even alter the decision through legislation.

At Schooley Law Firm, we pride ourselves on staying abreast of developments in the law, and we will continue to monitor these issues. Although there is no clear reason for Virginia to develop a similar law, we always have an eye toward potential pitfalls and problems when drafting our clients’ documents. If you or a family member have undergone IVF, contact us to discuss how we can help you protect the interests of your children and descendants.

What to Expect - Qualification Appointment

If you’re headed to qualify for the first time, you may have no idea what to expect. Thankfully, we have experienced professionals at your service who have attended probate and qualification appointments dozens of times. So, sit back, relax, and let us give you a window into what’s going to happen.

For an executor or administrator (hereinafter referred to as the “personal representative”) to have authority under the law to act as a fiduciary of a decedent's estate, they must qualify with a court of proper jurisdiction. To qualify, the personal representative must:

1. Schedule an appointment with the probate department of the Clerk of the Circuit Court,

2. Provide the required information about themselves and the decedent,

3. Meet the requirements of qualification under the law,

4. Attend the appointment in person, and

5. Pay the required fees to the Clerk.

The qualification appointment will occur in the office of the probate clerk. You will contact the Circuit Court Probate Department in the county or city where the decedent lived at the time of death. For example, if the decedent passed away while being treated at Henrico Doctors Hospital but lived in Church Hill, you will contact the Richmond City Circuit Court.

When you contact a Probate Clerk via phone, they will take preliminary information from you and may request you complete the county’s preferred form.

1. The Clerk will request you bring the following items to the meeting:

2. The original Will, if there is one. (The will must be the original.),

3. The original Death Certificate,

4. Your Driver’s License or another form of identification, and

5. Check, cash, or credit card for the taxes and fees.

At the appointment, the Clerk will prepare and review the following forms for you to sign.

1. List of Heirs,

2. Probate Information Form, and

3. Probate Tax Return.

As you complete these forms, the Clerk will require you to swear to an oath that the forms you have completed contain the true last will of the decedent (if applicable), so far as he or she knows, and that he or she will faithfully perform the duties of his or her office to the best of his or her judgment. This oath is accompanied by a Bond. A Bond is a promise in writing given by the personal representative in an amount set by the Clerk of the Circuit Court, for the faithful performance of the duties regarding the estate.

In addition to the completion of these forms, be prepared to pay the state probate tax as well as the qualification fees. Probate tax is $1.00 per every $1,000.00. For example, the estate value is $200,000. You would pay $200.00 in probate tax which is refundable to you from the decedent’s estate. Qualification fees vary from estate to estate but usually range from $20 to $100. The Clerk will provide you with an exact figure at your appointment and can provide you with an estimate at the time you make your appointment.

Lastly, in some instances but not all, Surety may be required. Surety is a person or corporation promising to pay the estate for the failures or defaults of the personal representative who gives the bond at qualification. This is most always an insurance bonding company engaged in the business of acting as surety, for a premium payment payable by the estate. Be sure to check with the Clerk of the Circuit Court to see if surety will be required on your bond at the time of qualification because Surety is often waived under the terms of the will.

Once all your paperwork is complete, the Clerk will return with your letter of qualification or your “golden ticket” as we like to call it. This ticket will give you the authority to speak with the decedent’s financial institutions and take control of the estate assets.

You are not required to have a lawyer assist you with qualification appointment however, the services of an experienced estate administration firm like Schooley Law Firm are often desirable. Many legal questions arise in the administration of an estate, large or small, which require the opinions and advice of an attorney.

If you are qualifying as a personal representative and need assistance, or if you need assistance determining the need to qualify, please contact us today at (804) 270-1300 to schedule a consultation with our estate administration paralegal and one of our attorneys.

Estate Planning after Divorce.

Divorce is a difficult process that can affect various aspects of a person's life, including their estate plan. If you have recently been through a divorce, it is important to review and update your estate plan to ensure that your wishes are accurately reflected.

One of the main ways that divorce affects an estate plan is through beneficiary designations. When you get divorced, you will likely want to change the beneficiaries on your retirement accounts, life insurance policies, and other financial assets. If you fail to do so, your ex-spouse may still receive the assets upon your death, even if you have remarried. 

It is important to review and update your will to reflect your current wishes and ensure that your assets are distributed according to your wishes. If you do not update your will, your ex-spouse may still inherit some of your assets, which may not be your intent. You may want to consider revising your will to remove your ex-spouse as a beneficiary or include additional provisions depending on the terms of your separation agreement.

Additionally, divorce can impact the appointment of fiduciaries in your estate plan. A fiduciary is a person who is appointed to manage your assets and make decisions on your behalf if you become incapacitated or pass away. If you named your ex-spouse as your executor, trustee, or power of attorney, you may want to consider changing those appointments to someone else.

In conclusion, divorce can have a significant impact on your estate plan. It is important to review and update your estate plan after a divorce to ensure that your assets are distributed according to your current wishes and that the right people are appointed to manage your affairs.

If you need help with updating your estate plan, contact us today to schedule a consultation and start planning for your future. Our team of experienced attorneys is here to help you create an estate plan that meets your unique needs.

Dying without a Will: Virginia Laws of Intestacy.

Virginia Intestate succession is the process by which the assets of a deceased person are distributed when they die without a will. When someone dies without a will, it is said that they have died "intestate."

In Virginia, the law sets out the order in which the heirs of an intestate person will inherit their property. The surviving spouse is usually the first in line to inherit the property. If the decedent has no surviving spouse, then their children are next in line. If there are no surviving children, then the property goes to the decedent's parents. If the decedent has no surviving parents, the siblings become the next in line, followed by nieces and nephews, and then grandparents. The law provides for a detailed order of inheritance, which considers various factors such as the degree of relationship of the heir to the decedent.

It is important to note that Virginia intestacy laws only apply to probate assets, which are assets that the decedent owned in their name alone and did not have a designated beneficiary. Non-probate assets, such as joint accounts with the right of survivorship, assets with a designated beneficiary, or assets in the name of a revocable or irrevocable trust are not subject to probate or Virginia intestacy laws.

When someone dies intestate, the probate court will appoint an administrator to manage the estate. The administrator is responsible for identifying the assets of the estate, paying off any debts, and distributing the remaining assets to the heirs according to the order of priority set out in the law.

Virginia intestacy laws provide a detailed process for the distribution of assets when someone dies without a will. It is always advisable to have a proper estate plan to ensure that your assets are distributed according to your wishes.

If you need assistance with setting up an estate plan, contact us today at (804) 270-1300 to schedule a consultation and start planning for your future.

End of Year Giving

December is the season of giving. Whether this increase in giving is spurred by the spirit of the holidays or squeezing in some last-minute deductions before the tax year ends, we are here to share some important information before you decide on your method of giving, and how much you want to give.

For any charitable gift to be eligible for this year’s tax deductions, it must be made by December 31. However, there may be benefits to holding off and doubling your charitable gifting next year, a process called “bunching.” Bunching allows a taxpayer to make multiple years’ worth of charitable gifts in one year and take the multiple years’ deductions. This can be beneficial based on whether the standard deductions or itemized deductions are greater for you. Give us a call to determine if bunching may be beneficial for you. Your CPA can also help you determine the maximum amount you are eligible to deduct, and therefore the maximum amount you can give and receive tax benefits for.

Regarding the method of giving, several methods may be right for you, depending on your circumstances. For example, many individuals choose to use Donor Advised Funds (“DAFs”). DAFs are accounts that assist in charitable giving. The donor sets up the account, funds it with money, and then can recommend that distributions be made to their favorite charities. DAFs allow your donations to grow tax-free while they sit in the account. They are also great for individuals who may not know just yet to whom they would like to give. The donor is allowed to claim the deduction in the year they contribute to the DAF, rather than the year in which the money is given to charity. Thus, if you are considering a last-minute gift for this tax year, but you are not ready to decide where you would like to donate, a contribution to a DAF may be a good option for you.

Another way to give is by making charitable distributions from qualified retirement accounts. For donors who have required minimum distributions, the donor may divert up to $100,000 directly to a qualifying charity (i.e., a public charity, not a DAF or foundation). While a charitable distribution does not allow the donor to take a tax deduction on the donation, it provides the benefit of counting toward the account holder’s required minimum distributions, without having to claim the distribution as income.

Finally, donors should strongly consider making donations in the form of appreciated, publicly traded stock instead of cash. This benefits the donor by allowing them to claim the fair market value of the stock for their deductions, without having to pay the capital gains tax on the increase in value. This means the donor gets double tax benefits – avoiding the capital gains tax and claiming the deduction! Further, there is no need to worry about passing off the tax burden to the charitable organization, because they are tax-exempt.

Whatever your reason for giving this season, you have several avenues available to you. Before making any donations, it is important to consult Schooley Law Firm or your tax preparer to ensure you are making the most advantageous choices for you.

    If you are interested in discussing year-end gifts, please contact us today at (804) 270-1300 to schedule a consultation with one of our attorneys.   

Jennifer Schooley Announced as Virginia Business Legal Elite 2023

Jennifer Schooley is thankful for being chosen by her legal peers again for inclusion in the Legal Elite List by Virginia Business in the Taxes/Estates/Trusts category for 2023.  This is Jennifer’s seventh consecutive year as a Legal Elite. 2023 has proven to be a year of growth and progressive change for Jennifer and the firm.

In January, Jennifer and the Schooley Law Firm Team took on the large overhaul of purchasing and renovating a 1960s mid-century modern building to accommodate the growing firm. In June, she spoke before the Greater Richmond SCAN (Stop Child Abuse Now) Board of Directors on the topics of planned charitable giving and estate planning.

Jennifer Schooley also welcomed two new lawyers to the firm this year. Associate attorney, Ryan Glaser, joined in March, and associate attorney (bar pending), Sydney Albrecht, joined in September.

Jennifer continues to enjoy her time as a Member of The American College of Trust and Estate Counsel (ACTEC) since 2020. ACTEC is an international organization of approximately 2,500 lawyers peer-elected to membership by demonstrating the highest level of integrity, commitment to the profession, competence, and expertise in the preparation of wills and trusts, estate planning, probate, trust administration, and related practice areas. Thus, Jennifer has spent time attending ACTEC meetings at the 2023 Annual Meeting (New Orleans, LA) in March, the 2023 Southeastern Annual Meeting (Hot Springs, WV) in September, and is looking forward to the 2023 Fall National Meeting this October in Louisville, KY.  If you will be attending in October, contact Jennifer to connect.

In addition to her stellar ACTEC attendance, Jennifer currently serves on the Family Law Task Force, the State Laws Committee, and the Practice Committee.

We have moved to a new office!

We are pleased to announce that Schooley Law Firm, PC has recently moved to a new office which is situated at 4118 Fitzhugh Ave, Richmond, Virginia 23230. Now easily accessible to main thoroughfares such as I-95 and I-64, making travel to and from other parts of the city, Short Pump, and Midlothian convenient.

The previous five years were spent on the third floor of the Ledbury clothing store in the Arts District.  As beautiful as our space was, the need for a larger space became apparent as the firm grew.

We do confess, the new office has been the biggest overhaul Jennifer Schooley has faced together with a brave team. We started from scratch, one design after another, changing the closed-in space with bright orange and blue walls to the very open, soft peach and white. With the help of Fultz&Singh and our many trusted suppliers and contractors, we made our office dreams a reality.

There are lots of things to enjoy about our new office:

1. Location!

   • Easily accessible to Richmond thoroughfares.

   • Close to popular lunch spots such as Stellas, Mr. Submarine, and Elephant Thai.

   • Close to banks and shopping centers such as Bank of America, Scotts Addition, and Willow Lawn.

   • Separate parking lot entrance and ample on-street parking for our clients and visitors.

2. Modern newly renovated building!

   • Large conference rooms with whiteboard space perfect for mapping out estate plans.

   • Renovated offices with fresh paint, large windows, and high ceilings.

   • An enclosed courtyard is perfect for lunch or reviewing documents on a nice day.

   • A sunny kitchen to share morning coffee, lunches, and sometimes after-hours beers!

   With all that being said, on the 5th of May, we invited some friends and colleagues to our new home to cheer us on the beginning of a new chapter in Schooley Law Firm history.

   Thank you to everyone for your support and trust in our work and our firm. This move would not have been possible without you.

Photo credits to Fultz&Singh.

We're Hiring!

Schooley Law Firm, P.C. is seeking a highly-motivated associate with approximately three to five years of experience in estate planning for high-net-worth individuals and families, trust and estate administration, and estate, gift, and GST tax planning to join its practice in Richmond, Virginia.  

We are a small firm dedicated to providing our clients with the highest level of service while practicing in a modern, positive, and family-oriented environment.   Candidates must possess the ability to focus on detail, be capable of self-direction but work well in a team, and possess excellent research, writing, and verbal communication skills.  Virginia Bar admission or eligibility is required.  Candidates with an LL.M. in Taxation or Estate Planning ranked in the top quartile of their law school class, or individuals who graduated from a top-tier law school are preferred.  Experience in business and marital planning is a plus.    

At Schooley Law Firm, it is great thinking and passionate client support that separates us from others.  We serve as trusted advisors to our clients, focusing on solutions to help them meet their most important goals. 

Please submit a cover letter, resume, transcript, and salary requirements to admin@schooleyfirm.com.  Candidates will be asked to submit a writing sample before interviews.