It seems to me there has recently been a lot of news coverage about Facebook and specifically what happens to your page when you die…

1. Your Facebook page after your death: http://www.huffingtonpost.com/dori-hartley/death-on-facebook_b_1459107.html
2. A new service to let you “social media”  from beyond (kinda): http://thestir.cafemom.com/technology/137070/the_eerie_new_site_that
3. Each Social Media’s policy when a user dies: http://www.consumersearch.com/blog/what-happens-to-your-social-media-accounts-when-you-die
4. Even purposed Nebraska legislature to make social media part of your estate: http://www.webpronews.com/nebraska-facebook-accounts-deceased-2012-02

I sometimes have a love/hate relationship with Facebook—as I often say to my friends, Facebook is the Global answer to a small town newspaper. Make sure you don’t wear your slippers to the grocery store or everyone will know! (Those of you who grew up in a small town know what I am talking about.)

On the flipside it is a great way to keep in touch with loved ones at a distance, get updates from your favorite businesses (https://www.facebook.com/falkandcornell) and spread the word to many people at once about an important life event.

Last September our paralegal, Kim Thomas, wrote a great blog about digital assets http://www.falkandcornell.com/blog/category/digital-assets/ and why it’s important to keep track of them and provide passwords to your successor trustee(s) and/or spouse. One of the categories was social media. So, with all the facebook news coverage I thought I would take this opportunity to let everyone know what can/does happen to your social media accounts and remind everyone to complete your digital assets worksheet on our website http://www.falkandcornell.com/estate-planning/forms.htm, keep it updated for your spouse/partner and/or successor trustee(s) and don’t forget about your social media accounts.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Modern Family-Someone to watch over Lily

It was (as usual) a hilarious episode about a serious issue: who will raise your children should you and your partner/spouse die? Cam and Mitchell want to pick the best relatives to raise their adopted daughter Lily if, “God Forbid,” something happened to them, “God Forbid” (their words). In typical sitcom fashion, they go through the likely candidates and, of course, as soon as they think they have the “ones” something happens that makes them rethink their choice. While Hollywood made it cute and funny, it is a serious issue, and probably one of the more difficult estate planning questions.

In California, if you do not choose guardians for your children, the court will choose who will raise your children through a process called a Guardianship.

Think of all the people who love your children, and who you love. Who would do the best job as parents should you not be there? All of these people will have the opportunity to go before a judge with reasons why they should raise your children. Think about your family dynamic now, do you think everyone could agree on who should raise the children? More importantly, do you want to put your family and friends in this situation? Besides the devastation of losing you, now your family is left to pick up the pieces of raising your children. For more information on California Guardianship: California Court Self Help Website

When you create a will you designate guardians for your children. This will avoid the court appointing guardians, and you can change your will with a codicil should you change your mind.

And Cam and Mitchell? It’s Hollywood, they came to a conclusion and everything was left nice and tidy—may all our decisions be that easy!

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

When appointed to act as the Successor Trustee upon the incapacity of a trustor, you have an abundant amount of responsibilities and tasks at hand. Oftentimes, there are several family members involved, all wanting to help and provide input. While support is important, a Trustee must balance their priorities.

The first is always to ensure that the necessary steps are taken to ensure the well-being and safety of the trustor. This involves making sure the trustor is in a comfortable living environment, is receiving quality care, and their financial assets are protected and used for the trustor’s benefit.

There may be other surrounding issues such as preparing and selling a home which may be time sensitive. While the Successor Trustee must protect the asset and act in the best interest of the trust and the ultimate beneficiaries, the Successor Trustee must focus on issues at hand.

The Successor Trustee must use their discretion to prioritize. In doing so, it may be necessary for the trustee to set aside other issues including beneficiary inquiries and concerns which can be addressed at a later time. Being a trustee is a big undertaking and all interested beneficiaries need to understand the primary concern is to take care of the Trustor and their immediate needs.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

With the holidays upon us, people are busy scheduling family visits and trying to maximize their time with family. This family time is invaluable for estate planning purposes. While it is understandable people do not want to focus on their death or the death of a loved one during the holidays, the time together provides the opportunity for candid discussions about estate planning.

Death is inevitable but how your family will handle your death or the death of another family member is difficult to predict. Open communication prior to death can remove hostility, anger, and bitterness after a loved one dies. If you know a child may be bothered by an estate planning decision you made and you know you are going to spend some quality time together this month, then now may be the most appropriate time to share your thought process and to explain your decision. If you feel uncomfortable discussing the decision with your child, then perhaps you should write him or her a letter explaining your decisions and leave it with your estate planning documents. This will provide an explanation for your child and may provide some peace of mind for both you and your child.

After a client has a discussion about their estate plan with his or her family, the client often feels a sense of relief. The child may provide another new idea that would appease all the parties involved or the child may be grateful for the explanation. Either way, the client feels confident in their estate plan.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Are your assets in the trust?

a recent blog was a reminder to make sure that your house is titled in the name of your trust. Since one’s home can be your largest asset, it’s of utmost importance to have it titled correctly.

But your other assets need to be titled in the trust as well, and have correct beneficiary information. If assets aren’t titled in the trust, the trustee of your estate may end up needing to file a Probate Petition in court. The result will be estate money spent on court and lawyer fees; having accounts properly titled will avoid probate.

Here’s a quick rundown on how assets should be titled:

A standard checking account, which contains less than $10,000.00 on average, doesn’t need to be titled in the trust.

All savings accounts, brokerage accounts, stocks, business interests or other monetary assets which are not retirement accounts should be titled in the name of the trust.

Generally, insurance policies should have the trust listed as the first beneficiary.

Generally, IRAs should have the spouse listed as first beneficiary, adult children as the contingent beneficiary, and the trust as the second contingent beneficiary.

For insurance policies and IRAs, this is the “general” advice we give. Every estate is different, consequently, it always a good idea to address the beneficiaries of IRAs and insurance policies with your attorney when you create your trust, or have your 3-year trust review.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

Year End Gifting

Each person may gift to any individual $13,000 in 2010 without a gift tax (married couples may gift $26,000 to an individual). Any gifts which exceed the $13,000 in 2010 are subject to a thirty-five percent gift tax (35%) or must be deducted from the lifetime gift exemption of $1,000,000 and a gift tax return must be filed.

Individuals with large estates…those subject to estate taxes should consider making gifts to children and grandchildren before the end of the year. The estate tax exemption in 2011 is scheduled to revert to $1,000,000. per person with an estate tax rate of fifty-five percent (55%). If you gift the $13,000. this year, then your family will receive the entire $13,000 which will be more than double the value at your death after taxes are paid.

The law prohibits giving to minors, those under the age of eighteen; however, gifts to minors can be made to 529 plans for education or an irrevocable trust for his or her benefit. Please contact our office if you are interested in year-end gifting.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

At the time that you signed on your estate planning documents, one of the documents signed was the Property Power of Attorney. This document is used in the event you become incapacitated and your agent needs to step in on your behalf to continue paying bills and handle any other financial matters that might arise. Most of our clients sign what we call a “springing” Property Power of Attorney. In order for this document to become effective, a family member generally contacts this office to inquire about the process. Our office can provide you, the family member, with two physician’s reports that need to be completed by two (2) separate physicians on behalf of the person who is deemed incapacitated. Each physician must complete the form certificating that the person is in deed unable to handle their financial matters. Once the reports are completed you will need to set-up an appointment with our one of our attorneys to discuss the next steps. Please note getting two (2) physicians’ certificates can take up to thirty (30) days. In addition, our attorneys’ calendars fill up quickly, so it could take an additional week or two before we can get you in to discuss these issues with one of our attorneys. Please understand that staff members or paralegal in this office cannot give any advice regarding this matter as they are not attorneys. Once the incapacitated individual dies, the Property Power of Attorney is no longer valid, as it is only in effect if the person is incapacitated. When someone passes away you should contact this office so that we can set-up an appointment with an attorney to discuss the next steps.

The other power of attorney you signed at the time of your close was the Health Care Power of Attorney. This document is different from the Property Power of Attorney. This document is only for health care decisions. The individuals listed on your Property Power of Attorney and Health Care Power of Attorney are not always one in the same.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.

During our lifetimes we have heard in the news to be careful not to put all our eggs in one basket. We have been told not to invest too much money with one financial institution, not to keep all our money in one type of account. Diversify your portfolio; invest in mutual funds, stocks, bonds, annuities and certificates of deposit. Also make sure that your accounts are FDIC insured.

While this is all valid information, think about your Successor Trustee who at some point will have to manage all of your accounts. With the electronic age, a significant amount of people are managing accounts online and some are not receiving paper statements. Think of how difficult this task may be if your portfolio is so diversified.

We recently had a trust administration where the successor trustee had to locate and manage over 50 accounts at various financial institutions in multiple states. He was responsible for calling the institutions, providing them with the necessary information showing he was the legally acting trustee, obtaining date of death values to complete the Inventory and Appraisal and managing the accounts, making responsible financial decisions, until the date of distribution. This can be not only timely but also costly to your estate.

This task may not be so daunting if you are well organized. Unfortunately, what seems well organized and logical to you may not be for someone who is unfamiliar with your assets. We suggest you speak with your financial advisors frequently to ensure that your assets are working for you. Check the interest rates and think about your short term and long term financial goals. Think about consolidating some accounts. Ultimately this process will make it easier for you to manage and simplify things for your trustee in the future.

Falk, Cornell, & Associates, LLP is a member of the American Academy of Estate Planning Attorneys.