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.
Same-Sex Marriage Confusion
This article examines the impact of California’s landmark decision to allow same-sex marriages for both state and out-of-state residents. It clarifies the impact that this decision has on out-of-state residents and what responsibilities other states have of recognizing same-sex marriages performed in California.
IRS Clamps Down on Wesley Snipes and Other Tax Protesters
This article highlights the recent trial of Wesley Snipes on criminal tax protester charges and transitions into a discussion of the fraudulent promotion of trusts, such as "pure trusts," "constitutional trusts" and "common law trusts" as a purported means of avoid income taxation. The article concludes by recommending that the consumer consult with a knowledgeable estate planning attorney for the preparation of their trust and estate plan.
Death and Tragedy
The article looks at the tragedy of family disputes and how to avoid them.
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.
Protecting Your Children from Our Litigious Society
How can you protect your children and their inheritance from litigation? This article explains how some innovative trust, the Family Sentry Trust and the Family Access Trust can help.
Legacy Planning: A Holistic Approach
This article looks at the latest developments in estate planning: "Legacy Planning." Legacy Planning focuses on the values and guidance to be relayed to future generations, not just wealth. The article discusses The Family Wealth Trust and its two subtrusts, the Family Access Trust and the Family Sentry Trust and how they can protect the beneficiaries from divorce and creditors.
What's Important in Your Life?
This article looks at what's important in life: family, friends, and values. The article looks at tragedies in our lives and how we always come back to what's important in life. The article then transitions to a discussion of Legacy Planning. The article discusses the Family Wealth Trust, the Family Access Trust, and how they may be used as part of Legacy Planning to protect the children after you are gone.
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."
Protect Your Children Now and in the Future
The article examines how you can use a Family Access Trust or a Family Sentry Trust to protect the inheritance you will leave to your children.
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.
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.
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.
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.
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.
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.
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.
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 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.
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.
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.
Protecting Your Assets
This provides an overview of asset protection strategies.
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.
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.
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).
Community Property Makes a Difference
In estate planning, the nature of the property involved can make a significant difference in determining the best way to plan for its ultimate disposition.
When Parent and Child Reverse Roles
When we start off in life, our parents provide love and nurturing, as well as the necessities of daily life. As time passes, we grow into adulthood. Our relationship with our parents becomes one of equals, with each providing love and nurturing for the other, while both are self-sufficient. Often, parents reach a stage in their lives when they are no longer self-sufficient, typically due to advanced age or illness.
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.
Disinheritance Is a Serious Option
Most people are seeking the best way to get assets to their loved ones. However, sometimes the best way to do that is by disinheriting or threatening to disinherit someone.
Choosing Beneficiaries Is Not Enough
Determining who should inherit your assets is a surprisingly difficult task for many of us. However, with time and due consideration, an answer comes. Now you are ready to tell the world who should inherit your assets and who should not get anything. This seems relatively straightforward. However, things often are not as simple as they superficially appear.
Choosing Just the Right Gift
We all know from firsthand experience how important it is to choose the right gift for someone. We know that the thought we put into the gift is as important as its worth. Each of us can think back to a birthday, anniversary, or holiday when someone close to us gave us something that was truly meaningful to us because of the thoughtfulness behind it. Maybe they put together a photo album of treasured moments. Maybe they gave us a trip which opened our eyes and broadened our minds.
Planning for the Future Without a Crystal Ball
hen planning for the future, none of us has a crystal ball. So, we must plan our affairs based on current circumstances while trying to anticipate a whole range of possible future events.
Beneficiary Designations: the Hidden Trap
More and more of us recognize the need for careful, methodical estate planning. We prepare our wills and trusts. We labor over who should be guardians for our children and who should be trustees and executors. We decide how and when our children or other loved ones should get what we leave behind. However, all too often people who thought they had it all planned fall into a hidden trap: improper beneficiary designations.
Planning It Right the Second Time Around
Increasingly, Americans do not remain with their first spouse for life. According to a 2001 study by the National Center for Health Statistics of the U.S. Department of Health and Human Services, twenty percent of first marriages face "disruption" (defined as separation or divorce) within the first five years. One-half of all first marriages face disruption within the first twenty years of marriage.
Ignorance of the Law is No Excuse in Estate Planning
It is often said that "ignorance of the law is no excuse." This expression dates back at least four centuries. The expression is attributed to 17th century British jurist John Selden. He is quoted as saying: "Ignorance of the law excuses no man; not that all men know the law, but because 'tis an excuse every man will plead, and no man can tell how to confute him."
Choosing a Trustee
The centerpiece of most estate plans is a living trust, which provides flexibility disposing of assets, management of assets during incapacity, and avoidance of probate. While there are many options to consider structuring a trust, perhaps the most important issue is the identity of the trustee.
I'm a Trustee, Now What Do I Do?
We've all heard of trusts. Trusts are used as an estate planning tool to avoid probate and to provide flexible planning to accomplish personal and tax goals. But where does a trustee fit into the picture?
How Does Moving Affect My Estate Planning?
Moving can be a difficult and disruptive process. We sort through our belongings and reassess our needs. We pack up our dishes, our clothes, and our lives. Moving is an ideal time to plan for the future and to adjust plans we've already made. Moving across town can be difficult. Moving to another state adds another level of complexity.
If You Really Love Me, Don't Leave Me Anything!
This sounds like an odd statement, but it may be very accurate. Leaving assets directly to children or other beneficiaries may cause them problems which could be easily avoided or reduced by leaving them the assets in trust rather than outright. Even if the child is a very capable adult, it is often better to leave the assets in trust. The child can receive the assets in trust and could be trustee of that trust. As trustee, the child could invest the assets as desired, could purchase a home with trust assets and live in it, and could even start a small business. All of this can be done while leaving the assets in the trust. Further, as trustee, the child could make distributions needed for his or her health, education, maintenance and support, or that of his or her own children. Finally, the child can be given a power to determine who should get any remaining assets at his or her own death.
Providing for Your Children in Your Revocable Living Trust: Don't Overlook Special Needs Planning
If you're a parent who has taken the time and energy to create a Revocable Living Trust ("RLT") you should be commended for your initiative and perseverance for ensuring your children and grandchildren are properly cared for when you are gone. If you have not yet created an estate plan, doing so could be one of the most important actions you can take on behalf of your children's future well being. A properly drafted estate plan designates who will care for your minor children upon your death, as well as providing for the smooth transfer of wealth to your children. Many parents assume that making sure a child is financially secure after they are gone means leaving the assets outright to the children. For many reasons, such as a child's inability to manage finances, outright distribution of your assets to your children may not be the most prudent option. This becomes especially true if any of the beneficiaries of your trust estate have, or develop in the future, special needs and require the assistance of government aid.
Getting the Most Out of Your Legacy Assets: Provide For Your Well Being and That of Your Heirs
Are you familiar with the term "Legacy Assets"? Well, you may not have heard it termed in such a way, but you may have them. They are assets specifically set aside as an inheritance for children, grandchildren or other loved ones. Many people place great importance on the ability to leave something to family members after their death. Unfortunately, many people who have legacy assets are not putting them to much use. It is not uncommon to earmark thousands of dollars as an inheritance, only to be sitting in a bank account, doing not much of anything. This is due to the cautious, yet wise, desire to have the assets available for any unforeseeable expenses, such as long term convalescent care. The need for long term care security and the desire to maximize an inheritance don't have to be mutually exclusive, thanks to a relatively new form of life insurance - Living Benefit Life Policies.
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.
Holdback Provisions: Preparing Your Estate Plan for All of Life’s Contingencies
t is no surprise to find that parents want to provide for their children and grandchildren both during life and after a parent's death. To this end, many smart parents employ some form of estate planning, most commonly through the use of trusts. However, the manner in which the trust is structured can greatly affect whether your dispositive wishes are fulfilled. Without proper planning, circumstances such as a child's divorce or financial irresponsibility can result in unintended beneficiaries of your hard-earned assets.
Estate Planning in Light of a Remarriage: Ensuring the Care of Your Children
The staggering amount of divorces that occur in today's society is all too well known. Depending upon the circumstances that lead to the break-up of any marriage, one may think that getting into another such arrangement would be out of the question. However, this is not always the case. In fact, the Stepfamily Association of America reports that about 43% of all marriages are remarriages for at least one of the adults, and of these, about 65% involve children from a prior marriage.
Home Sale Gain Exclusion: Do You Qualify if Your Home is in Your Revocable Living Trust?
Many real estate markets around the country have experienced a dramatic rise in home values in recent years. If you are fortunate to be someone who has ridden the wave upwards, you may be wondering what will happen when you decide to sell your home and cash-in on the appreciation of its value. A first inclination may be to cringe at the thought of the government taking its share of such gains. But do not worry, as the government offers homeowners a valuable tax break for which many taxpayers qualify. However, do you qualify if your home is titled in the name of your Revocable Living Trust?
Financial and Estate Planning for the Dual Income Family
In today's world, it is more common than ever to find dual income households. Recent estimates by the Department of Labor find that women comprise around 47 percent of the American workforce. Compare this percentage to 1960 accounts estimating women in the workplace at around 33 percent. Because of the proliferation of working women, special planning is necessary to properly address the issues faced by households where both spouses work.
Encouraging Your Descendants to Become Productive Members of Society
Many adults work their whole lives, building their wealth to provide for themselves and their families. This desire to provide often survives death, as many people desire to build an inheritance large enough to provide for their children and grandchildren once they are gone. However, the desire to have sufficient assets to leave to descendants brings with it a dilemma. How do you leave assets to your children and grandchildren without marring their sense of hard work and accomplishment? A trust with incentive provisions might be the answer.
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.
Don't Overlook Personal Property When Creating Your Estate Plan
Planning for all of life's contingencies is a difficult task, yet one which must be attempted. This is especially true when dealing with your death. Prudence suggests that you create an effective Estate Plan delineating your wishes as to the care of your minor children, your burial arrangements, and the disposition of your assets, to name a few. However, even people who meticulously prepare their Estate Plans often overlook their personal property, which can cause problems. Here's an example of how things can go wrong: Several years ago, a widower passed away. He thought he planned out every detail of what would happen after he was gone. He had family discussions about how his major assets were to be divided, but the widower never considered his personal property in his plan.
Non-Citizen Spouses: The Rules Are Not the Same
When it comes to estate taxes, married couples in which one spouse is a resident non-citizen are treated differently than married couples where both spouses are U.S. citizens. Generally, assets that pass between spouses at the first death are free from estate taxes due to the Unlimited Marital Deduction, no matter how large the estate. However, where the surviving spouse is a resident non-citizen, the Unlimited Marital Deduction is not automatically available. Although the government allows all taxpayers to pass a certain amount of assets at death estate tax-free, called the Applicable Exclusion Amount (“AEA”), estate taxes will be due on amounts in excess of the AEA (currently $675,000) unless proper estate planning is in place.
Estate Planning: Minimizing Taxes Is Only Part of the Equation
When our national or state law-making bodies begin talking about decreasing or increasing estate taxes, a flood of reaction pours out in anticipation. Throughout our history of legislation, there have been few moments of anticipation worth the hoopla. Estate taxation laws are rarely changed for the benefit of the taxed. Yet every time a change is proposed, many people delay, or entirely ignore proper estate planning in anticipation of what never happens.
After the Fact: Easing the Financial Burden After A Spouse's Death
A Living Trust can be a great way to fulfill your estate planning goals, including minimizing taxes on that estate. But sometimes, an unexpected death can occur before a Living Trust is established. Or, sometimes after a spouse has died, it is discovered that he or she did not properly fund a living trust.
Don't Get Scammed . . . Get Smart
Estate planning has been in the news lately with stories on CNN and articles in Time, Money, and Fortune. Many of these stories have focused on the use of living trusts. It's important to remember that there are several types of trusts - some are legal, many are not. It is also important to know what those illegitimate trusts are and why you want to avoid them. Not only is using one of these trusts illegal, but you could end up losing your money and paying taxes, interest, and fees in addition to any civil or criminal penalties.
But Wait, There's More: The Importance of Trust Administration
Many people probably think that once they have an estate plan in place their needs have been met. They are ready to move on, and feel secure in the knowledge that when they die their estate will be handled according to their wishes. To some extent this is true. Your wishes will be carried out and you will save your family time and money, but setting up the plan is only the beginning of the estate planning process. It is imperative that you review your plan regularly with your estate planning attorney. Buying or selling property, getting divorced, significant changes in income, and many other life-changing circumstances can impact your estate plan. In addition to regularly updating your plan while you are living, someone must be selected to manage the plan after you die. Trust administration is a vitally important and often misunderstood (or ignored) aspect of an estate plan that includes a trust. Trust administration allows for the orderly settling of the decedent's legal and financial affairs, including the disbursement of assets to the trust beneficiaries.
A Power of Attorney or the Powers That Be . . . Make the Right Choice
It’s likely that you’ve heard of the Power of Attorney (POA). Most people have. We generally assume it’s a way for someone else to take control of our assets if we become incapacitated or, as we often see in the movies, we are “declared incompetent.” This can be true, but there’s a lot more to it than that. The POA is a way for you (the principal) to give some control of your assets or your medical care to another person (the agent or attorney-in-fact).
Have It Your Way - Even After You're Gone
According to a recent article, parents are becoming ever more concerned about leaving large inheritances to their children. As a result, they are looking for estate planning tools that will help them to maintain some control over those inheritances even after they're gone. You can spend your money however you choose. It's your choice whether you want to manage it with incentives or simply control how much money is disbursed to your heirs. Family Incentive Trusts (FIT), as they are now being called, are becoming increasingly popular, especially for those with very large estates.
Don’t Let Probate Get You…Twice
Almost everyone dreams of someday owning a little log cabin on a river in Montana or a beachfront condo in California or Florida. For some, a simple timeshare will do, or maybe you want to retire to Arizona and play golf and retain your family home as a rental property. Perhaps your family has property that has passed down from generation to generation and you want to continue that tradition. Many people end up owning more than one piece of property in their lifetime, and often those properties are not located in the same state. As if estate planning weren’t confusing enough, what can you do when you own an interest in real estate in another state?
Living Trusts: Calculating the Benefits
Living Trusts have quickly become the most popular estate planning tool, allowing families to avoid probate and other legal quagmires, lower
