Preserve Your Legacy, Not Just Your Money
Death and incapacity are a natural part of the process of life. Along the way, we develop our values and accumulate assets and experiences. When planning for the future, ensuring your assets pass to your loved ones is only the beginning. A new paradigm in estate planning is emerging, Legacy Planning. This considers not only the tangible financial assets you are going to leave your family, but also what your goals, experience and values are. This article gives an overview of the key components of a Legacy Plan and explains how each component works together to create a plan that meets your needs and which your family will cherish for generations to come.
Guarding Against Mental Incapacity
Mental incapacity is something that concerns all of us as we age. Like physical decline, the loss of mental alertness may not be entirely within our control. This only increases the need for proper planning. If you have not planned, and are no longer able to handle your financial affairs, a competency hearing may be necessary. This article discusses certain estate planning tools that are available to help avoid this hearing and take care of you and your family in the event of your incapacity.
Caring for Your Spouse....Even After You're Gone
Do you worry about caring and providing for your ailing spouse and making sure their needs are met, after you are gone? This article describes how a Testamentary Special Needs Trust is one estate planning strategy that can help you do exactly that. Learn how you can plan now to help your spouse qualify for financial assistance for their future medical and nursing home costs, while preserving your assets for other expenses or "luxuries" that your spouse may need, which are not covered by government benefits.
Scams, Swindles, and Fraud, Oh my!
With more and more financial swindles making the news, it is not unreasonable to be worried about where you are investing. But scams are not limited to the investment field. There are plenty of scams to go around, even in estate planning. Seeking the counsel of a qualified estate planning attorney can help ensure you will not be the victim of an estate planning scam. This article explains what to look for in a qualified estate planning attorney.
Tough Times Could be Tougher
In unsettling economic times, people are looking for someone to hold accountable for their difficulties. With an expected increase in lawsuits this year, it is important to protect yourself. This article discusses steps you can take to protect yourself and your family against harmful lawsuits that could put all your assets in jeopardy. A qualified estate planning attorney can help structure a plan that limits your liability and keeps you safe during these tough times.
Trustee: an Honor and a Responsibility
Being named a Successor Trustee in your loved one's Trust is both an honor and a responsibility. It is the Successor Trustee's responsibility to administer the Trust and make many important decisions. In this article, we learn that some of those decisions may seem deceptively simple, however, the consequences of any hasty decisions could cause increased taxes and lost opportunities. Learn why it is important to consult a qualified estate planning attorney in order to prevent costly errors.
Your Team is on Your Side
Estate Planning is like a team sport. Your team should be made of qualified professionals, which you have selected. This article examines your team members and describes the role they should play in achieving your goals. Working with your team, you will be able to build a game plan to get you to the finish line.
Real Security
During these unsettling times everyone is searching for ways to feel more secure. This article provides details on how different components of a complete estate plan can provide real security for you and your loved ones, while building a solid foundation that can bring peace of mind during these unsettling times and in the future.
A Loan May Be Taxing
This article examines important tax issues that may be overlooked when lending money to family members. Issues regarding gift taxes and income taxes are addressed and a possible solution using proper planning through an Irrevocable Trust is discussed.
New Year Brings Resolutions... and More
The coming of the New Year presents an opportunity to reflect on the past year, and reorganize our priorities and goals. One important resolution is protecting our assets and our families through estate planning. The process to achieve this goal is discussed in this article.
Vacation Properties Take Planning
Just as taking a vacation takes some planning, vacation homes take some special consideration in an estate plan. There are several factors to consider, such as the possibility of ancillary probate, the use of the vacation home by beneficiaries, and the value of the home in your estate. The article reviews the use of both a revocable living trust and a special irrevocable trust, for those with a taxable estate, to create an effective estate plan that includes the vacation home.
Powers of Attorney - May Not Be Enough
This article examines the limitations of using a power of attorney to delegate decision-making authority to someone else. It explores the solutions available through the use of a living trust by nominating someone as successor trustee.
Planning Opportunities in a Down Market
Every dark cloud has a silver lining, including uncertain economic times. This article examines unique estate planning opportunities that are available during a down economy. Tax savings by converting an IRA to a Roth IRA at a lower value, and transferring shares in a family business at diminished asset values are two strategies reviewed.
Planning to Benefit Non-Traditional Beneficiaries
Traditional estate planning strategies are not always available to people who have non-traditional beneficiaries, but here is a strategy that can only be used for non-traditional beneficiaries. These beneficiaries include unmarried domestic partners, same-sex married couples, nephews and nieces, and friends. This article examines the use of a Grantor Retained Interest Trust (GRIT), which is not available for traditional "members of the family", as a strategy to help plan for non-traditional beneficiaries.
Everyone Needs a Periodic Checkup
This article examines how legal and life changes may make it a good idea to consult with your estate planning attorney to ensure that your estate plan continues to achieve your financial and estate planning goals.
A Trust Can Help Protect You from a Financial Crisis
This article examines how a trust can help expand the protection on your financial accounts, including those at banks, savings and loans, credit unions, and brokerages.
Split Things Fairly - Not Exactly
This article examines the difficulty of giving an asset that makes up the bulk of the estate to one beneficiary, while treating the other beneficiaries fairly.
The Silver Lining in Tough Economic Times
This article examines the current difficult economic times and how one estate planning strategy works better now than in better economic times.
Grandma and Grandpa--You're the Best!
The article examines ways to give to grandchildren, both during life and after you are gone.
What’s in a Word?
The article examines how George Carlin's comedy shows that the use of words can be important. The article looks at why that is also true in estate planning.
Dividing Up the Pie
The article looks at FLPs, an advanced estate planning strategy. The article explains how FLPs can minimize estate taxation and maximize asset protection.
Joint Tenancy - Joint Problems
Joint tenancy avoids probate and seems like a simple solution. Howver, adding a joint tenant adds all sorts of unforeseen problems.
The Prime of Life
This article recites the tragic story of Heath Ledger and how he omitted his daughter from his Will.
The Debate Continues and the Future of the Estate Tax Remains Uncertain
This article discusses the uncertainty created by EGTRRA and the likelihood (or lack thereof) of a fix from Congress in 2008. The article discusses the arguments for and against the complete repeal of the estate tax and the likelihood that Congress will not act until after a new President is elected. The article closes by encouraging consumers to see an experienced estate planning attorney for their needs.
A Plan by Design or by Telephone?
The article looks at the game of "Telephone" and how transmitting your legacy in this manner is likely to result in error.
The Passing of a Loved One
The article examines the seven elements which may be included in an estate plan: Health Care Power of Attorney, HIPAA Power, General Durable Power of Attorney, Revocable Living Trust, Pour Over Will, Funeral Trust, and Legacy Plan.
What’s Probate and Should I Care?
The article examines what probate is and why it is best avoided, and how. The article also examines the holistic concept of "legacy planning."
Three Myths Women Have About Estate Planning
This article looks at several myths women have about estate planning. It includes some statistics that show why estate planning has more impact on women.
Decisions, Decisions, Decisions...
This article looks at the factors people consider when making estate planning decisions.
To My Dog, Lucky, I Leave $10,000
The article examines the use of "pet trusts" and a few examples of how pets were provided for in the past.
What are the Odds
This article examines the need to plan for the unexpected. It gives statistics for the odds of disability and of death from various likely and unlikely causes. It shows the importance to plan for the one certainty in life, i.e., death.
Gifting to Children
This article examines gifting strategies for transfers in trust to minors. Specifically, it looks at Crummey trusts and 2503(c) trusts and the advantages and disadvantages of each.
Protecting Your Children from Their Nightmares…and Yours
The article examines statistics regarding divorce in America and how to protect your children from divorce. It examines setting up a divorce protection trust for them as well as using a marital trust for second marriages for your own assets.
Help for Our Armed Forces
he article examines the taxation of combat pay. Specifically, combat pay is tax-free. Also, it looks at new legislation that allows combat pay, otherwise not in income, to be considered as income for IRA eligibility.
Waiting to Roth: Hidden Loophole for High-income Earners
The article explains a few different types of retirement plans and then looks at a loophole for high-income earners to make contributions to a non-deductible IRA now and then convert it to a Roth IRA in 2010, when income limits for such conversion are lifted.
Learn from Anna Nicole's Mistakes
The article examines Anna Nicole's Will and that she did not update it upon major changes in her life: death of a son, birth of a daughter, commitment ceremony to Howard K. Stern. It suggests that the reader learn from these mistakes and be sure to update their plan periodically.
Your 401k or IRA: A Problem Asset?
The article looks at IRAs and 401ks and how we need to save for retirement. Then it looks at the tax problems these plans create. It examines the stretch out available with the FRPT. It also examines using distributions to fund life insurance.
The Choice Is Yours: Don't Lose Your Chance to Make It
The article examines two cases: Terri Schiavo and Sarah Scantlin. Neither expressed their end of life decisions. Terri had her feeding tube removed after 15 years. Sarah awoke from her coma after 20 years. The article calls the reader to express their own desires in a Living Will.
What Happens in My Initial Estate Planning Consultation?
This article describes what happens in the initial estate planning consultation, including the questions asked, the discussion of goals, etc. The article also references a CNNfn segment that talked about the importance of stringent continuing education requirements, like those of the American Academy of Estate Planning Attorneys.
Is a Power of Appointment the Same as a Power of Attorney?
The article examines a few legal terms that can be confused, like Power of Attorney, Attorney in Fact, and Power of Appointment. The article examines the terms and specifically, how Powers of Appointment can add flexibility to a plan.
How to Leave a Mess to Your Heirs
This article examines several common mistakes that create a mess for heirs: Lifetime Transactions without counsel (such as adding people on title to realty), Failure to Plan, and Failure to Communicate. The article poses the problem and then offers a solution to each.
Estate Planning is Simple....Right?
This article examines clients' preconception that estate planning is simple and that it's just simple word processing. The article examines situations in which the estate planner's experience and technical knowledge comes into play.
Your Most Important Choice
The article discusses the importance of selecting appropriate agents and guardians. It specifically examines the different roles and focuses on guardians. It looks at a case in which the guardian nominated was not chosen by the court.
To Roth or Not to Roth, That is the Question
The article examines the Roth IRA and recent developments that have expanded the concept, such as the Roth 401(k) and the ability to convert from a regular IRA in 2010.
New Flexibilities for Partners, Children, and Others
The article examines the new "non-spousal rollover" provisions of the Pension Protection Act of 2006.
Anna Nicole Smith Can Teach Us a Few Things
The article examines the life of Anna Nicole Smith, her marriage, and the will dispute controversy. It encourages readers to be open about their wishes to family members and instructs on the use of a no contest clause.
Do it the Right Way
This article examines the life of tobacco heiress Doris Duke and a couple mistakes she made in planning her estate.
A New Way to Give
This article examines new opportunities for charitable giving directly from an IRA.
Do You Want Your Spouse to Lose Your Biggest Asset?
The article examines how beneficiary designations must be coordinated in order to have an effective estate plan. It looks at the story of a woman who forgot to change her beneficiary designations. As a result her husband of 20 years did not get her retirement plan proceeds.
Keep Your Cake - And Eat It, Too!
This article examines the Medicaid Income Only Trust. It gives an example of two women who are roomates in a facility: One who contributed to a trust and one who did not.
Celebrity Estate Planning
The article examines interesting provisions of the wills of many famous people. It explains how this information is public and that if you use a trust you can keep your affairs private.
Smart People Do Estate Planning
The article examines the statistics of who does estate planning. It shows that people who are more educated are more likely to do estate planning. It recites reasons that you want to plan. Basically, the article is a call to action to the reader to take control of his or her life by planning.
Planning With Retirement Assets
The article looks at retirement planning and looks at a few strategies such as ROTH conversion, paying the tax, giving to charity, etc.
Estate Planning: No Tattoo Necessary!
The article looks at how to make sure your final wishes are accomplished. It looks at the case of a woman who tatooed "do not resuscitate" across her chest. It deals primarily with health care powers / living wills, but also touches on trusts.
Preserving the Ranch for the Next Generation
The article examines a typical ranch family, the problems they face, and solutions. It touches on problems of joint tenancy, incapacity, and succession. It offers an RLT, a second to die ILIT, and a buy-sell as solutions.
My Attorney Does Not Practice Law Anymore: Now What?
The article instructs the reader what to do when their attorney does not practice anymore. It suggests finding a new attorney right away. It stresses finding someone with whom they feel comfortable and who gets lots of Continuing Legal Education.
Dealing with Aging Parents
The article examines how the parents took care of the kids and how the kids then take care of the parents. It looks at the need to plan in advance for wealthy parents (estate tax reduction), not so wealthy parents (Medicaid planning), and any parents (powers of attorney, etc.).
How Do Millionaires Do It?
The article examines the five different types of millionaires and what makes them tick. It asserts that planning is at the core for all of them and that estate planning is necessary to avoid problems down the road.
Preparing for Health Needs
The article looks at the financial and legal ways to plan for illness. As part of the financial portion, the article examines the use of Health Savings Accounts. As part of the legal portion, it examines the use of health care powers of attorney and health care directives.
Planning: Just Do It!
This article looks at what happens if no planning is done. It looks at the problems of probate if no trust is done and of intestacy if no will is done.
Protecting Your Assets
This provides an overview of asset protection strategies.
As Time Draws Near
This provides an overview of planning strategies when someone is approaching death.
Handling Matters After the Death of a Loved One: Just Do It
The article examines the need to administer an estate or trust in a timely manner. It looks at several pitfalls resulting from inaction after someone's death, including not filing tax returns, not notifying creditors, etc.
10 Tips in Planning for Taxes
The article examines several strategies for minimizing income taxation, through timing of expenses and income, etc. It includes items to consider at year-end.
Insurance: A Major Estate Planning Tool
he article looks at various types of insurance from life insurance to homeowner's insurance. It explains how minimizing risk is part of estate planning.
Preserve Your Wealth with Medicare Part D
The article provides a basic overview of Medicare Part D and why it is important from an estate planning perspective.
When Disaster Strikes
This article examines how tragedies can strike in any of our lives but how planning can lessen the impact. Estate planning can let you rest easier and make sure others have the legal right to help you when you need it.
Want a Nude Funeral? Have it Your Way
he article tells the story of a Midwestern nudist who wanted to be buried in the nude but was not. It examines what people can do to ensure their burial wishes are carried out.
Is Estate Planning for Me?
This article examines various reasons people think estate planning is not for them, such as they aren't married or don't have money. It explains why they need estate planning.
New State, New Estate Plan?
This article examines how moving from state to state may impact an estate plan.
The Power of Flexibility
Life is an interesting ride. Who would have expected it to turn out the way it has? Thirty years ago, as we walked to our local library, who would have thought that we could have more information available at our fingertips online than would fit in any library? Who would have guessed that these high school dropouts would have been so successful: Julie Andrews (actress / singer), Louis Armstrong (jazz musician), Kevin Bacon (actor), Lucille Ball (comedienne), Irving Berlin (composer), Tom Cruise (actor), Thomas Edison (inventor), Nicole Kidman (actress), Ray Kroc (McDonalds founder), Keanu Reeves (actor), Vincent van Gogh (painter), and George Washington (first American president).
Estate Planning is Life Planning
It seems like there is always some discussion in Congress about changing the estate tax. There even have been proposals to eliminate the tax permanently. If Congress ever eliminates the tax, does this mean that there will no longer be a need for estate planning? No, it does not.
Should I Leave Everything to My Spouse?
The article examines the tension between leaving assets outright to a spouse and leaving them in trust. It discusses creditor and divorce protection. The article also discusses allowing the surviving spouse to appoint the assets in the trust.
You May Be Worth More Than You Think
The article examines the Millionaire Next Door and their characteristics. It recites statistics about millionaires and their increasing numbers in the United States. It finds that one characteristic of millionaires is that they plan. The article discusses the need to do estate planning.
Could Your Hospital Kill You?
The article examines the case of a Florida man whose hospital went to court to enforce his living will. His wife / health care agent wanted him kept alive. The court allowed the hospital to disconnect the man, causing his death. The article examines the importance of establishing whether the Living Will or health care agent should have the last word.
Advantages for Unmarried Couples
There are many advantages for married couples. However, there are a few ways that unmarried couples can take advantage of the system. The article examines two such ways, one simple (harvesting losses by selling a loss asset to the other partner) and one complex (a Grantor Retained Income Trust which is not allowed for related parties).
Let Your Voice Be Heard
The article examines the case of Terri Schiavo and how a clear expression of her wishes could have avoided problems.
Open Communication Avoids Disputes
The article examines the need for clear and open communication with beneficiaries and fiduciaries. Study cites statistics indicating a higher incidence of disputes when beneficiaries are kept in the dark.
Remarriage: Treat New Spouse Like Royalty
Examines use of income trust in remarriage situations. Analogizes to royal trust in Duchy of Cornwall.
Charitable Bequests: You Better Review Them
This article examines the importance of periodic trust review and uses an example of charitable bequests and cy pres.
The Problems of Giving Everything Away
This article examines a case of a woman who titles everything in the name of the children. It examines why joint title and giving everything away may not be the best course of action.
How to Handle a Windfall
This article examines the financial and estate planning steps for clients to take when they come into a financial windfall.
Relax: Everything's Handled
Tells the story of a couple that is going on a second honeymoon and
is worry-free because they did their estate planning.
Why is My Trust so Long?
Examines why a trust document must be long in order to be clear. Gives
examples of issues requiring clarification.
Preserving Harmony with Blended Families
Second marriages and blended families raise unique concerns. The article examines marital trusts and unitrusts as a way to take care of both spouse and children and preserve family harmony.
Asset Protection Planning in Litigious Times
In our ever increasingly litigious society it is essential to protect yourself from potential creditors. The article examines asset protection techniques in maintaining insurance to the use of asset protection trust.
SuperBowl Champ’s Final Pass Incomplete
This article examines the life and death of Jack Kent Cooke and his $1.3 billion estate. It tells the tale of his expensive, drawn out probate and what could have been done to achieve a better result.
Home Sweet Home
This article looks at the various tax and asset protection aspects of a home, such as gain exclusion, bankruptcy exemption, QPRTs, etc.
Five Reasons To Plan Your Estate Now
We can all come up with reasons to procrastinate and avoid doing what we should. However, there are many reasons to avoid procrastination when it comes to estate planning. Here are five of them:
Family Torn Apart by Simple Oversight
On December 3, 1963, Mary and Robert Schindler gave birth to a wonderful baby girl, Theresa Marie. Terri grew up in Pennsylvania and had a typical childhood playing with her brother and sister and the family pets. As a teenager, she loved music and did artistic sketches. In November 1984, just shy of her twenty-first birthday, Terri married Michael Schiavo. Terri seemed to have everything going for her. At age twenty-nine, Terri was living in Florida with her husband and had a job she liked.
The Basics of Basis
Most of us have heard the term "basis" before but are not really sure what it means. While it has a meaning in common parlance, it also has a technical meaning for tax purposes. "Basis" is the benchmark from which the taxation of property is determined upon disposition. If you sell the asset for more than your basis, you have a taxable gain. Conversely, if you sell an asset for less than your basis, typically you have a tax loss.
Should You Be A Resident of Your State?
We have all thought about faraway lands and the path not taken. As we grow older, many of us are fortunate enough to have a second home in which we spend much of our time. Perhaps it is a place to escape the blistering heat of summer or winters icy grip. Perhaps it is a place near children or grandchildren.
Sometimes It’s Better to “Just Say No”
When we receive an inheritance, few of us consider that there may be a choice to consider. We are still mourning the passing of someone dear to us when we learn about the inheritance. We just try to continue our daily lives, numb from our emotional loss. The estate or trust administration continues and eventually we receive our inheritance, either outright or in a trust for our benefit.
Are You Married – You May Be and Not Know It!
You are probably thinking to yourself "How is this possible?!" It is true, you may be married and not know it—even without a quick trip to Las Vegas.
Saving for a Child's Education with Qualified State Tuition Programs: Now Even Better, But Still Proceed with Caution
Since its introduction in 1996, many parents and grandparents have become familiar with the Qualified State Tuition Program ("QSTP"), or Section 529 plan (referring to the Internal Revenue Code section authorizing the program). It is a state-sponsored (or private institution-sponsored) investment vehicle that allows you to set aside funds for qualified higher education expenses. You can name anyone as the beneficiary of a QSTP - a family member, or even yourself. Qualified expenses include tuition, fees, books, and room and board. QSTP funds are professionally managed and generally incur low management fees. You can select a QSTP sponsored by your home state or one sponsored by other states or institutions. Proceeds from such plans can be used for any qualified educational expenses of an accredited educational institution, whether in-state or out-of-state, private or public.
I Already Prepared My Will or Trust: Do I Still Need an Attorney?
Many people have the misconception that once they have created a Revocable Living Trust, they no longer need the services of their estate planning attorney. After all, a Living Trust avoids Guardianships and Probate, and attorneys and the court are involved in each of these processes. So, obviously the planning that was done eliminated the need for any future services of the estate planning attorney. Nothing could be further from the truth. There are a number of times the services of an estate planning attorney are needed.
Joint Tenancy: Friend or Foe?
If you're like many people who don't have an Estate Plan, you probably hold some of your assets as Joint Tenants with Rights of Survivorship. This is a form of ownership where two or more people have their names on the title of an asset, and upon one owner's death; his or her share of the asset passes to the remaining owner(s). While there are advantages to joint ownership, there are many pitfalls to keep in mind.
Estate Planning and Marriage the Second Time Around
Today in 30 percent of the more than 2.3 milion marriage ceremonies performed each year, at least one of the partners has been there before. And in many of these remarriages, there are children from a previous marriage. This trend can make proper estate planning even more critical, and helps explain why the QTIP Trust is growing in popularity, as this article reveals.
Estate Planning Tips for Divorced or Remarried Parents
In this era of divorce, remarriage and blended families, estate planning takes on special implications. This timely article presents estate planning guidelines parents need to know to protect their children and a new spouse.
