Mignanelli & Associates, Ltd.Mignanelli & Associates, Ltd.2026-06-01T06:14:10Zhttps://www.mignanelli.com/feed/atom/WordPress/wp-content/uploads/sites/1502921/2022/06/cropped-favicon-mignanelli-1-32x32.jpgOn Behalf of Mignanelli & Associates, Ltd.<![CDATA[Just became a grandparent? Why your estate plan matters more now]]>https://www.mignanelli.com/?p=490832026-05-29T14:04:33Z2026-05-29T14:04:33ZProtecting your grandchildren's future
You now have another generation to consider in your long-term planning. Rhode Island law allows individuals to name grandchildren as direct beneficiaries in their will or trust. You can designate specific assets for their education, healthcare or future needs. Without proper planning, your assets may not reach your grandchildren as you intend.
A trust can also provide long-term financial security for your grandchildren. You can set conditions for when and how they receive their inheritance. This approach protects young beneficiaries from receiving large sums before they are ready to manage them responsibly.
Naming guardians and healthcare proxies
Your role as a grandparent may include caring for your grandchildren if something unexpected happens to their parents. However, Rhode Island law gives only biological or adoptive parents the right to name guardians for their minor children in estate planning documents. Instead of trying to list guardians yourself, you can encourage your adult children to name backup guardians within their own estate plans. These conversations help ensure your grandchildren receive proper care if the unexpected occurs.
If you regularly care for your grandchildren, their parents may also consider executing a temporary delegation of parental powers. This document names a backup person who can make emergency medical decisions for the children if you are incapacitated while watching them.
Updating beneficiary designations
Review all beneficiary designations on retirement accounts, life insurance policies and other financial assets. Rhode Island follows specific rules for how these assets transfer upon death. Outdated designations may prevent your grandchildren from receiving benefits you intend for them. Regular reviews ensure your plan continues to serve your family's needs as circumstances evolve.
Securing your growing family's legacy
Your family structure has changed since you last reviewed your estate plan. As such, it’s very important to align your asset distribution with these new family milestones. A legal professional can help you create or update documents. This ensures that your estate plan reflects your current wishes and protects your growing family.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[6 assets that cannot be transferred through a will]]>https://www.mignanelli.com/?p=490822026-04-29T14:00:47Z2026-04-29T14:00:47ZWriting a will is one of the most important steps you can take to protect your family. Rhode Island law gives you real power over who receives your assets, but a will does not govern everything you own. Some of your assets already transfer directly to your loved ones, outside of your will.
Your will and the probate process only reach so far
In Rhode Island, your will controls only the assets that pass through probate. Assets with a beneficiary designation or joint ownership transfer by their own rules. When a designation and your will point to different people, the designation typically controls. Assets that pass outside of probate often reach your heirs faster and without becoming part of the public record.
Assets that find their own way to your heirs
Some of your most valuable assets may already have a built-in transfer path. It helps to know which ones and how they work in Rhode Island. Here are six assets that transfer outside of your will:
Life insurance policies: Proceeds go directly to your named beneficiary. Rhode Island law offers some protection for life insurance proceeds from creditors.
Retirement accounts: Your IRA, 401(k) or pension passes to the beneficiary you named on the account. Public employee pensions may have additional distribution rules.
Jointly held real estate: Property you hold in joint tenancy with right of survivorship passes to the surviving owner under state law. Your will has no say in that transfer.
Assets held in a living trust: A revocable living trust distributes property by its own terms, not your will.
Payable-on-death bank accounts: Banks in Rhode Island allow you to name a direct beneficiary on a checking or savings account. That person receives the balance without going through probate.
Transfer-on-death investment accounts: Brokerage accounts with a TOD designation pass directly to your named beneficiary in the state, bypassing your estate entirely.
Understanding how these assets transfer gives you a clearer picture of your full estate plan.
A strong estate plan coordinates all the moving parts
Your will, your trust documents and your beneficiary designations all need to point in the same direction. Out-of-date designations can redirect assets away from the people you intended to receive them.A conflict between a will and a beneficiary designation is one of the most common estate planning problems Rhode Island families face. Legal support, in this case, can review your full picture and help align your plan with your actual wishes.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[A new chapter: Estate planning for key life moments]]>https://www.mignanelli.com/?p=490812026-03-30T14:55:21Z2026-03-30T14:55:21ZLife is full of turning points; marriage, the arrival of children, career changes or the loss of a loved one. Each milestone can shift priorities, responsibilities and long-term goals, creating new circumstances that affect how you want your affairs managed. Because these changes can have lasting consequences for both you and your loved ones, it’s important to ensure that your plans evolve alongside your life.
Estate planning is not just for the wealthy or older adults. It ensures your wishes are respected and your family is protected. Revisiting your estate plan during these key life moments helps prevent confusion and stress when guidance is needed most.
Life milestones that require estate planning updates
Major life changes often require updates to specific documents. Rhode Island residents should consider the following:
Marriage or remarriage: In Rhode Island, marriage typically revokes any existing will unless it was created in anticipation of that marriage (R.I. Gen. Laws § 33-5-9). Update your will, trusts and insurance policies to include your spouse, and revise powers of attorney so your spouse can make decisions if necessary.
Birth or adoption of a child: Rhode Island allows parents to designate a guardian for minor children in a will. Establish trusts for inheritance, update life insurance beneficiaries and ensure guardianship arrangements reflect your wishes.
Divorce or separation: A Rhode Island divorce automatically revokes any will provisions for a former spouse, but non-probate assets such as life insurance or retirement accounts are not automatically updated. Review and revise your will, trusts, beneficiary designations and powers of attorney to prevent confusion or disputes.
Career or financial changes: Significant financial events, like starting a business, receiving a large inheritance or selling property, can affect asset distribution and Rhode Island estate taxes. The state imposes an estate tax threshold over $1.8 million for 2026. Update trusts, retirement accounts and insurance policies to manage taxes and protect assets.
Health changes or aging: Healthcare directives, powers of attorney and living wills should reflect your current wishes. Rhode Island law allows you to designate someone to make healthcare decisions if you cannot, giving peace of mind to you and your family.
Reviewing your documents regularly ensures your estate plan matches your life circumstances. It provides clarity and safeguards your loved ones.
Keeping your estate plan in step with your life
Estate planning is an ongoing process. Revisiting your plan at major life milestones protects your family and gives you more reassurance that your estate plan adapts to your changing circumstances. Consider consulting a Rhode Island estate planning attorney to review your documents and help align them with your current circumstances.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[How no-contest clauses work in Rhode Island wills and trusts]]>https://www.mignanelli.com/?p=490712026-02-26T16:07:21Z2026-02-26T16:07:21ZThe reach and limits of no-contest clauses
A no-contest clause, sometimes called forfeiture clauses, is a provision you can include in a will or trust. It states that any beneficiary who formally challenges the validity of the document risks losing their inheritance entirely.
These conditions, however, are not absolute. An heir may request clarity on vague language, raise concerns about a fiduciary's conduct or file routine petitions for document construction without triggering forfeiture.
This type of clause tends to be most effective when a potentially disgruntled heir still stands to inherit something of value. If someone has been completely disinherited, they have little incentive to comply since there is nothing left for them to lose.
The enforceability of no-contest clauses in Rhode Island
Not every state addresses a no-contest clause the same way. Some allow exceptions when the challenger has a good reason while others take a firmer stance.
Rhode Island falls into the latter group. The state upholds the terms of a no-contest without weighing whether the challenger had probable cause or acted in good faith. Even if an heir believes they have a strong reason to contest, state courts might still enforce the penalty you stipulate.
The key factors behind a strong estate plan
A no-contest clause can be a helpful tool, but it works best as part of a broader estate planning strategy. On its own, it may not address every potential conflict that could arise among beneficiaries.
To start, working with an attorney can be beneficial. They may advise you on whether the terms of the clause are appropriate for your specific family dynamics and review the language so that it aligns with Rhode Island's strict enforcement standards.
It also helps to include a clear, explicitly non-binding explanation of your distribution decisions in a separate letter or memorandum. This gives beneficiaries context for your choices, which can go a long way toward preventing resentment or confusion before a dispute even begins.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[Ways to keep inheritance out of divorce settlements]]>https://www.mignanelli.com/?p=490672026-01-28T08:38:15Z2026-01-28T08:38:15ZUse a trust instead of giving assets outright
Leaving assets in a trust gives them a layer of legal protection that a will or direct transfer can’t. As long as the trust is properly drafted and limits your heir’s control over the funds, those assets generally won’t be considered marital property, even if a divorce happens later.
Make sure assets stay separate, not commingled
An inheritance can lose its protection if it’s mixed with shared finances. If your heir deposits inherited money into a joint account, uses it to buy or renovate marital property or adds their spouse’s name to anything, that once-protected asset can be treated as shared in court.
Name a trustee who isn’t the beneficiary
Courts are more likely to view trust assets as separate when someone other than the beneficiary is in charge. Choosing an independent trustee helps reinforce the separation between your gift and your heir’s personal property, which matters when divorce is on the table.
Plan with divorce in mind, not after it happens
The best time to protect an inheritance is before there’s any sign of trouble. Once a divorce begins, it’s often too late to shield assets retroactively. By building in these protections now, you can give your plan a better chance of holding up when it matters most and keep your legacy where it belongs.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[What does a spendthrift clause do for your estate plan?]]>https://www.mignanelli.com/?p=490662025-12-29T07:16:00Z2025-12-29T07:16:00ZHow a spendthrift clause works
A spendthrift clause lets you limit how your beneficiaries access their inheritance. In Rhode Island, if you set up an express trust, you can legally restrict beneficiaries from voluntarily or involuntarily transferring their trust interests. These rules prevent them from selling, assigning or pledging their share before they receive distributions.
By keeping assets in the trust rather than giving direct ownership, a properly drafted clause shields them from external threats.
Shielding assets from creditor claims
A key benefit of a spendthrift clause is that it protects your beneficiaries from creditors. Here is how this typically works regarding general debts:
Most commercial creditors cannot take or garnish a beneficiary’s share of the trust before distribution
The beneficiary cannot use their future inheritance as collateral for a loan
Civil judgments against the beneficiary do not automatically reach the trust assets
This protection covers various types of debt, including credit cards, lawsuits and business obligations
Rhode Island also allows Domestic Asset Protection Trusts (DAPTs), which offer stronger protection but must be carefully structured. It must be irrevocable, governed by state law, include spendthrift provisions and name a qualified trustee.
Important limitations to consider
While spendthrift clauses offer significant protection, they do not provide unlimited security. First, spendthrift protection only applies to third-party trusts, not self-settled trusts in most circumstances.
While spendthrift clauses offer significant protection, they are not unlimited. They generally apply only to third-party trusts, not self-settled trusts.
A self-settled trust is one you create for your own benefit. Traditional spendthrift protections usually do not shield assets in these trusts. Rhode Island does allow DAPTs, but they involve complex rules and typically require professional guidance.
Even so, protection ends once assets leave the trust. For example, if a trustee distributes $50,000 to a beneficiary, that money is then subject to creditor claims.
Additionally, spendthrift clauses cannot protect against all creditors. Courts allow exceptions for obligations such as child support or alimony. A beneficiary cannot use a spendthrift trust to avoid supporting their children or paying alimony.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[4 frequently asked questions about wills and trusts]]>https://www.mignanelli.com/?p=490632025-12-02T10:51:57Z2025-12-02T10:51:57ZWe all want to safeguard our loved ones and provide for their future, but knowing where to start with estate planning can feel confusing and overwhelming. Understanding the key steps and common questions can make the process clearer, empowering you to make decisions that truly protect your family. Here’s a closer look at four frequently asked questions to help shed light on essential aspects of wills and trusts.
1. Are electronic wills valid?
An electronic or e-signed will is created and signed digitally, sometimes with virtual witnesses. While some states allow them, Rhode Island does not. Wills must be typed and printed on paper and signed in ink before witnesses. Consulting an estate planning attorney can help ensure your will is valid.
2. How often should you review your will or trust?
Life changes such as marriage, divorce, the birth of a child or the acquisition of new assets may require updates to your estate plan. It is recommended to review your documents at least every three to five years or after major life events. Regular reviews help ensure your plan reflects your current wishes and circumstances.
3. Can you name multiple executors or trustees?
Yes, but it requires careful planning. Multiple executors or trustees can share responsibilities, but disagreements may delay the distribution of assets. Consider naming alternates and providing clear instructions to minimize conflict and maintain smooth administration.
4. What happens if you die without a will or trust?
Without a will or trust, state law determines how your assets are distributed. This can lead to unintended beneficiaries or legal disputes among family members. Estate planning allows you to control how your property is divided and can reduce stress for loved ones during a difficult time.Estate planning may feel complicated, but addressing these common questions now can make a significant difference for your family.
The right guidance for you family
Careful planning works to honor your wishes are honored in how you want to your loved ones protected.Consulting an experienced estate planning attorney can help you manage your options, comply with state laws and tailor a plan to your unique circumstances. Taking proactive steps with the right guidance can help address important details before they become complicated.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[5 signs you may need a spendthrift trust for your heirs]]>https://www.mignanelli.com/?p=490622025-11-06T08:55:27Z2025-11-06T08:54:06ZBeyond simply distributing assets, estate planning ensures your generosity provides long-term security for your loved ones. Spendthrift trusts are powerful legal tools that limit a beneficiary's access to principal while protecting assets from creditors, lawsuits and imprudent spending.
These five warning signs may indicate that a spendthrift trust could be an essential component of your estate plan.
History of financial irresponsibility
If your heir has repeatedly demonstrated a pattern of reckless spending, a lump-sum inheritance may disappear quickly. Think about past bankruptcies, consistent large debts or impulsive, high-cost purchases.A simple will or traditional trust will typically deliver the assets to your beneficiaries directly, leaving them exposed. A spendthrift trust puts a trustee in charge of distributions. This person can release funds over time or only for specific needs, such as education and health.
Shield assets from creditors
If your beneficiary has outstanding court judgments, substantial loans or credit card balances, a spendthrift trust may be essential. Without proper protection, the inheritance could end up simply paying off your beneficiary's creditors rather than supporting their future as you intended.Rhode Island law allows the trust creator to establish valid restraints on the involuntary transfer of a beneficiary's interest. Generally, your beneficiary's creditors cannot access or seize assets that remain inside the trust.
Works in a high-risk profession
Certain careers, including medicine, architecture or business ownership, come with significant lawsuit risks. If your heir works in such a field, a major civil judgment against them could wipe out their personal savings and any outright inheritance they receive.Since the trustee legally owns the trust property, these funds typically cannot be taken to pay for the beneficiary's personal legal obligations or settlements.
Struggles with an addiction
While difficult to discuss, it is important to consider how addiction, gambling or other behavioral issues might affect your estate plan. Without protection, an inheritance could unintentionally fuel destructive habits, harming both your heir and their family.With a spendthrift trust, you can give the trustee power to halt payments if money is being misused and instead pay essential bills directly. This ensures your gift provides real support rather than enabling harmful habits.
Future divorce or marital issues
Inherited wealth is often considered separate property in a divorce settlement. When assets are commingled with marital assets, the protection can disappear.Keeping the inheritance inside a spendthrift trust can help maintain its status as separate property. You ensure the inheritance benefits only your heir, and not an ex-spouse in the event of a future marital dissolution.
Next step for you
If you recognize any of the five warning signs, you need to promptly structure a protective plan using available legal tools. It is best to avoid generic, self-drafted documents, as the specific legal language required to protect assets from creditors is precise and unforgiving if incorrect. Your goal is to ensure the spendthrift clause is enforceable and integrates smoothly with your overall estate plan.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[How one estate planning document can prevent adult guardianship]]>https://www.mignanelli.com/?p=490472025-10-05T12:41:55Z2025-10-05T12:41:55ZNot all powers of attorney remain effective indefinitely
Drafting basic powers of attorney for financial and medical issues is a common step during estate planning. If a person has an emergency, they can rely on the agent or attorney-in-fact they appointed to manage their affairs.
Unfortunately, basic powers of attorney can lose their authority if the principal who drafted the documents becomes permanently incapacitated. Durable powers of attorney specifically include language that ensures the continuity of authority even after permanent incapacitation.
Those concerned about progressive medical conditions, decline associated with age and dementia may want to draft durable powers of attorney. They can select someone trustworthy as their agent long before support becomes necessary.
That person, rather than whoever chooses to take legal action, has authority should they become incapacitated. Durable powers of attorney effectively protect people from involuntary guardianships and conservatorships by allowing people to name their own candidates to hold legal and financial authority in advance before such support becomes necessary.
Creating a comprehensive estate plan that addresses a variety of challenging situations can help people optimize their legal and financial protection. Durable powers of attorney are a useful estate planning tool for those nearing retirement and others who may not have support available should they become permanently incapacitated.]]>On Behalf of Mignanelli & Associates, Ltd.<![CDATA[What is the purpose of a Rhode Island living will?]]>https://www.mignanelli.com/?p=490462025-09-07T22:52:41Z2025-09-07T22:52:41ZLiving wills address end-of-life care
Different states have different standard estate planning documents. The same terms may refer to different documents, depending on the state. There are a variety of different advance health care directives that people can draft to protect themselves.
In some states, a living will is a thorough advance directive that explores a variety of medical preferences in case a person becomes incapacitated. In Rhode Island, a living will serves one particular purpose.
It informs health care professionals that an individual does not want heroic interventions when they are near the end of their life. The law allows those with terminal conditions to choose not to undergo life-sustaining medical treatment.
The document authorizes medical professionals to withhold or withdraw care intended to extend the timeline for the individual’s death. If the treatment does not provide comfort or offer the possibility of a recovery, medical professionals can cease providing that care.
Doing so may allow a person to pass quickly and comfortably instead of turning their passing into a protracted process. For those who have more involved preferences, establishing Medical Orders for Life Sustaining Treatment could be beneficial.
A living will, when coupled with other key documents, such as medical powers of attorney, can help ensure that an adult in a vulnerable position receives appropriate support given their preferences. Learning more about different estate planning documents can help people create custom plans that effectively uphold their wishes and provide guidance for their loved ones.]]>