When Valentine’s Day creeps up on us, we run to buy a card and something to show our loved ones we care but while flowers and chocolates are nice gestures, they simply do not last. Wouldn’t it be better to give them something that would provide comfort and security? Forbes recently wrote an article 3 Non-Romantic but Vital Things to Do on Valentine’s Day which discusses just that.

1. Give the gift of life insurance – Maybe you already have life insurance but is it enough if the worst were to happen to you? Would your family be taken care of? Is your current policy the most beneficial for your current situation?

1. Review your beneficiary designations – Many people fill out beneficiary designation paperwork when they open a retirement account or a life insurance policy, submit them to the financial institutions and forget to revisit them when life changes. Designations should be revisited upon a new birth, marriage, divorce or death. Assets with beneficiary designations pass outside of your trust, so if you pass away without having looked at your designations, someone you may no longer want to inherit, will!

Also, you may want to consider adding a payment on death (POD) or transfer on death (TOD) designation to bank accounts so that when you pass, your loved one can access the specific asset upon showing a death certificate and avoiding the probate or trust administration processes.

1. Execute estate planning documents – drafting documents is simply not enough! While intent is the first step, executing is what is important. While an estate plan is often thought of being important when someone dies, it is extremely important during life. An Advanced Healthcare Directive, otherwise referred to as a Healthcare Power of Attorney appoints an agent to act if you cannot make medical decisions for yourself. A Durable Power of Attorney appoints an agent to handle your financial affairs when you are not able. In addition, a Last Will and Living Trust should be created to protect your assets from probate and unnecessary estate expenses and tax.

While none of these suggestions are very romantic, your loved one will appreciate your longtime dedication to them and their financial security.

http://www.forbes.com/sites/financialfinesse/2012/02/08/3-vital-but-non-romantic-things-to-do-on-valentines-day/

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

Ok, yes I love sitcoms—refer to my “Modern Family” blog last year—especially a show that closely mirrors my life. I am very thankful for modern technology and DVR. Number one, I never watch anything in real time, unless of course it is on Sprout or DisneyXD. Number two, I can make my television time efficient, skip commercials and accomplish something else at the same time (i.e. write my blog, fold laundry, read a book—yes read a book). So I snuggled in last night for some laundry folding and “The Middle”, a show about a working, married couple with three kids. Now my kids aren’t quite the age of Axl, Sue and Brick, but I get to laugh at a glimpse of my future life with three kids (boy, girl, boy—just like my family).

I am sure people find after they have worked in a particular industry for a period of time they have a different point of view of certain things. My husband will tell you working for an estate planning law firm for over 12 years has warped my perspective of many things, and he means it with much love (I think?).

“The Middle”—opens with the family driving home from a beloved aunts funeral having, what I think of as normal “Midwest”, talk after a funeral (I should know born and raised in Missouri):  it was a lovely service, Aunt Ginny looked good, I never saw her without her glasses, ect. The talk quickly switches to the oldest son, Axl saying he will have his head frozen when he dies, daughter, Sue, freaking out about it, the parents discussing their will. Dad/husband Mike says, “We scribbled our Will on a napkin, and you kids will go live with your mom’s sister if we die” Mom/Wife, Frankie, says “I thought we bought a Johnny Cochran Make-a-Will kit?” Daughter, Sue, freaks again out “we shouldn’t talk about this”, oldest son call dibs on the dresser. The show continues with Frankie talking about how exhausted she is with dealing with the estate doing things like filing the death certificate.

I am sure most people watching this episode got a good chuckle and went on with their life, but it really made me think about the good, bad and ugly of these scenes in regular, real life. All too often we hear “well of course our family knows Aunt Betsy will be guardian of our children.” “Yes my family knows my burial wishes.” “Yes I knew my brother wanted that dresser, but I want it too and my parents didn’t write down who gets what, why should he get it?” or “No we didn’t discuss what would happen when my parent died” and of course “It is a lot of work being trustee/executor of this estate”.

Make sure your family and friends truly know your wishes. Sit down with your children—especially your adult children—and have a conversation about your wishes when you pass. Most importantly, put everything in writing by visiting your estate planning attorney and discussing the most appropriate estate planning tools for your situation, whether it be a will or a living trust and do not forget your health care directive. Give yourself peace of mind by putting these documents in place, and save your family the extra grief of figuring out what you would have wanted—or even worse fighting about what they think you would have wanted.

For those of you in the Bay Area our office offers a complimentary thirty minute consultation with one of our attorneys to discuss your personal situation and the best estate planning strategy for you. Visit our website www.falkandcornell.com or call our office at (650) 463-1550 to request a free consultation.

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

Recently, a family member asked me a question that many people probably wonder about—she wanted to know whether or not a trustee can make changes to a trust after someone dies.

In answering this question, I think some background information is important.  There are three positions for every trust.  First, there are the people who create the trust, the “Trustor(s).”  The Trustor(s) are the people who transfer their property into the trust.  Second, are the people who manage the assets in the trust, the “Trustee(s).”  Now, for a revocable living trust, the Trustee(s) most often are the same people as the Trustor(s) as long as they are alive and competent.  Finally, there are the people who benefit from the trust, the “Beneficiary/ies.”  Again, during their lifetimes, the Trustor(s) are also typically the beneficiary/ies of a revocable living trust they create.

Now, the Trustors of a revocable living trust can amend or even revoke their trust as long as they are alive and competent.  Written into the trust document itself is a provision designating who will step in and manage the affairs should a Trustee become unwilling or unable to act.  For a married couple, what this typically means is that the other spouse will become a sole manager.  In cases where one spouse has passed away or both of them become incapacitated, then a named successor or successor(s) will step in as Trustee or Co-Trustees.

The trust document itself should include instructions regarding how the trust may be amended.  So, in order to make changes to the trust itself, a formal amendment must be prepared and signed by both the Trustor(s) as well as the Trustee(s).  So, going back to the question, the Trustor(s) or creator(s) of the trust are the ones who have the power to make changes or even revoke it during their lifetime, and the Trustee(s) sign onto any changes made.  But, when a person passes away, their revocable living trust then becomes irrevocable at their death.

By definition, this irrevocable trust cannot be changed.  For married couples, this means even a surviving spouse can’t make changes as to their spouse’s share of the assets.  And this is what most people want, because it ensures their property goes to who they want after the surviving spouse dies, and not even a surviving spouse can change it.  (That doesn’t mean the spouse can’t have any access to the money after the first spouse’s death, but it does mean that ultimately, whatever is left over will go to the beneficiary/ies designated by the first spouse to die.)

Typically, in an AB trust, the surviving spouse will act as trustee over both trusts, of which they have full authority to make changes to the “A” Trust, also known as the Survivor’s Trust, because it remains revocable while they are alive.  And they may have the power to change the named successor trustees for both the A and the B trusts, but they can’t change the distribution plan of the B trust.

Bottom line: a trustee can NOT make changes to an irrevocable trust they are administering

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

When most think about establishing an estate plan, they make decisions regarding who will take care of their minor children if they are unable and how to distribute their estate for loved ones. But what about a pet? Most pet-lovers consider their pet a member of the family and sometimes even a child. Since pets can’t directly receive a distribution, how do you provide for a pet if they survive you? Who will take care of the pet, make sure it is fed, groomed, receives medical care … receives the lifestyle you provided?

The American Pet Products Manufacturers Association, in a 2010 study, found that pet owners spent approximately $1,400 annually on their dog or cat. The survey, which included 544 dog owners and 483 cat owners, included expenses for food, supplies and veterinary visits. The amount spent likely increases annually especially in places like California where our busy lifestyles permit others to take care of our pets, creating extra costs on dog walkers, doggie daycare and boarding.

Though you could make a verbal agreement or even a contract with someone to take of your pet, at your death, this agreement may not be valid. While many people haven’t considered a pet in their estate plan, to ensure your pet is taken care of, it may be the most effective. Your current estate plan can be amended to include pet provisions. Your living trust will name the trustee of the pet trust, the person who takes care of your pet both physically and financially. The pet trust will also include the amount to be distributed for the benefit of the pet and any specific provisions regarding care. At your death, a pet trust will be established through your living trust and will be administered for the benefit of Fido until his demise. At such time any money remaining in the trust will be distributed according to the provisions set forth in your trust.

To learn more about providing for Fido after you pass, call us to schedule an appointment.

Reference: http://www.pittsburghlive.com/x/dailycourier/socialcolumn/s_776510.html

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

Forgive the delay-Hope everyone had a Happy Thanksgiving–this is still timely as we are in the midst of the holiday season-Thanks for understanding!–Rochelle Falk

Kim’s blog from November:

With Thanksgiving a few days away, we all are busy planning
for a day shared with family and friends, a day filled with great food,
tradition and company. It’s easy to get lost in the trips to the grocery store,
the hours of preparation and the scents of the holiday season. However, it is
also easy to forget that Thanksgiving is a perfect time to reflect on your
life, today, in your future and your legacy.

While many articles today suggest you take an opportunity
while the family is gathered to discuss your end of life planning, your health
care directive and trust, many forget the legacy. As you look around your table
this year, look at the generations, the history and the stories untold. Too
often we are so concerned with the tangible or monetary gift we leave behind
but forget the importance of sharing the family recipe which has passed down
for generations, sharing our stories of our ancestors and explaining our
family’s journey.

After you pass, the painting on the wall will still remain,
the family silver will still be in the cupboard, however, those items are
simply tangible unless you also share its importance, its history and the joy
the item has brought you over the years.

You have already planned to financially assist your heirs,
but have you shown them how to make your famous pie or shown them how to carve
the turkey? Have you shown them how to set the table for Thanksgiving,
explaining how the Thanksgiving china has passed through generations? Have you
explained the trials and tribulations you have experienced in your life, your
career and your relationships and the important lessons you took away?

Take time this Thanksgiving to really listen to your loved
ones, have meaningful conversation and share in love and laughter. These
conversations will last a lifetime and in the end, should make any gift you
leave, more meaningful and more special.

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

          ‘Tis the season….It’s that time of year again when we start to reflect on the people and things in our lives for which we are thankful.  We hope to be able to give back to those who have enriched our lives, whether it be while we are still alive, or after we are no longer here, or both.   In the spirit of the season, I thought it would be fun to play a little trivia game . . .

Last Will and Testament Trivia

Directions:          Simple.  Match the famous individual with their last wish(es).

Here are the people:

1)     John Bowman                                                                   6)   John (Jack) Kelly

2)     W.C. Fields                                                                         7)   Florence Nightingale

3)     Benjamin Franklin                                                           8)   William Shakespeare

4)     Patrick Henry                                                                     9)   Janis Joplin

5)     Harry Houdini                                                                 10)  Samuel Houston

1. “I wish my sons early taught an utter contempt for novels and light reading.”  This person felt that men should be men with no time for frivolous pastimes.
2. To his wife, this famous person left his “second best bed.”  Leaving someone a good quality bed with no fleas or vermin was not unusual at this time, however, one is left to speculate what happened to this man’s “first best bed.”
3. This famous person left his/her remains for dissection or postmortem examination for the purpose of Medical Science.”  Although not unusual today, this wish was somewhat novel for the early 1900s.
4. $2,500 “so my friends can get blasted after I’m gone.”  This person left instructions that a party with 200 guests take place at his/her favorite pub in San Anselmo, California.
5. This person dictated that his wife should lose all that she inherited if she were to remarry.  Ironically, this person is best known for his statement, “Give me liberty or give me death!”
6. This person dictated that his wife hold an annual séance so he could reveal himself to her.  Despite leaving his wife a secret note with 10 randomly selected words to prove that he could communicate with the living, and his wife holding a séance every year for 10 years on Halloween after his death, no revelations were ever reported.
7. This person left to his son “all my personal belongings . . . .except the ties, shirts, sweaters and socks, as it seems
   unnecessary to give him something of which he has already taken possession.”  He also deliberately left
   nothing to his son-in-law, stating instead that “I don’t want to give the impression that I am against sons-in-law.  If they are the right type, they will provide for themselves and their families, and what I am able to give my daughters will help pay the dress shop bills, which, if they continue as they started out, under the able tutelage of their mother, will be quite considerable.”
8. This person’s last wish was that his daughter not engage in the “expensive, vain and useless pastime of wearing jewels.”  In so stating, this person wished to preclude his daughter from removing the 408 diamonds adorning a framed picture of King Louis XVI given to him by the former ambassador of France, which he thereafter
   left to his daughter.
9. This person was famous for, among other things, coining the phrase, “Anybody who hates children and dogs can’t be all bad.”  Ironically, upon his death, he made a provision for an institution to be named after him and dubbed “College of Orphan White Boys and Girls.”  Unfortunately, this individual was believed to have had almost $700,000 deposited in various bank accounts which remain unidentified to this day, as he kept no written records.
10. Because of his strong belief in reincarnation, this individual, who died in 1891, set up a trust worth $50,000 to pay servants to keep up the housework in his 21 room mansion and to prepare daily meals in the event that he and his family returned from the dead hungry.  Apparently, these wishes were honored for almost 60 years, until the trust ran out of money in 1950.

In bringing this entry to a close, I’d like to share with you some of the most profound last wishes I found, which were not those of a person at all, but rather, a Dalmatian dog, as penned by his owner, Eugene O’Neill, to comfort Mrs. O’Neill upon the loss of the beloved family pet:

“Dogs are wiser than men.  They do not set great store upon things.  They do not waste their days hoarding property.  They do not ruin their sleep worrying about how to keep the objects they have, and to obtain the objects they have not.  There is nothing of value I have to bequeath except my love and faith. . . . Whenever you visit my grave, say to yourselves with regret but also with happiness in your hearts at the remembrance of my long happy life with you: ‘Here lies one who loved us and whom we loved.’”

Until next time . . .

Answers:

A-10; B-8; C-7; D-9;E-4; F-5; G-6; H-3; I-2; J-1

If you got one or more correct – okay, even if you mention this entry – you are entitled to a 30-minute complementary consultation with one of our estate planning attorneys to review your existing estate plan or prepare a new one.  We look forward to seeing you.

Foregoing information derived from various sources, including www.listverse.com, www.trivia-library.com, and www.funtrivia.com.

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

I frequently receive calls and emails from different businesses looking to “improve” our website. When I say frequent, I mean at
least two a day. As you can imagine I do not have time to talk everyone or reply to their emails, however, recently one intrigued me. As we were talking, the lady asked how we got where we were with our website. As I started to explain when I started at Falk, Cornell & Associates email was fairly new and websites were only starting to develop– I heard a little gasp on the other end, and she said “What do you mean you didn’t have email yet?.” I had to chuckle, but it got me thinking about our technological journey to where we are
today.

It’s true 11 years ago we did not have www.falkandcornell.com and I remember having several conversations about the pros and cons of creating a website, should we put it on letterhead, business cards, ect.? Now I cannot imagine if we did not have a website, I think the majority of people would think it was odd if we didn’t have a website. I know occasionally I will run across a business I cannot find a website for and I almost feel betrayed and suspicious—what are they hiding? We provide a website in order to provide our clients, prospective clients, and professionals more information about us, education about estate planning, updates, changes in the law, and so on and so  forth. We really see it as a way to provide better customer service.

Now the website discussion has led to social media discussions. We took the plunge a little over a year ago and created a law firm Facebook page. Then we set up a LinkedIn account, and most recently I have started to twitter for the law firm (BayAreaTrusts if you want to follow us). I recently had a client ask “Can’t I just get all this information from your website?” The answer is yes, but as our lives continue to become busier and how we receive information changes I see social media as an amazing tool to receive the news and updates you want, rather than seeking out the information and filtering through a lot of noise you don’t care about.

Once our blog posts to our website, our linkedin, facebook and twitter feeds will also have the link, rather than you having to remember
to come to our website and check it—or you can even subscribe to our blog and it will come directly to your email account. We also use social media as a way to inform you of upcoming events and seminars, we post interesting estate planning articles, updates on office hours around holidays and just anything you might want to know about what’s going on in Estate Planning and at Falk, Cornell & Associates.. So please follow us on twitter (BayAreaTrusts), become a fan on facebook (www.facebook.com/falkandcornell.com)
and link to us on LinkedIn.

In another 10 years I can’t wait for the call where I am asked about our social media accounts and say “We didn’t always have facbook/linkedin/twitter/insert-newest-social-media-outlet” and wait for the gasp.

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

On September 27, 2008, Congress recognized the third week of October as National Estate Planning Awareness Week. This national recognition was prompted by the fact that over 120,000,000 Americans are without up-to-date estate plans, leaving themselves and their families unprepared in the unfortunate event of illness, accidents or untimely death.

As we have mentioned in our previous blogs, it is absolutely essential for everyone to establish an estate plan. If you die without a will,
likely the courts will be forced to decide, who should represent your estate, how your assets should be distributed and who should be responsible for the care of your child. Ultimately, without creating your own estate plan, your wishes will not be taken into account.

Awareness week does not only encourages those without an estate plan to establish an estate plan but also to have individuals review any existing estate plan to make sure it still complies with their intentions. As Jayashree mentioned in a prior blog, we encourage our clients to review their estate plan at least every three to five years. This means looking at your trustees, your healthcare and power of attorney agents as well as guardians. It also means amending the estate plan to include the birth of a child or grandchild, revisiting the distribution of your estate, perhaps making charitable gifts.

Some questions to consider in establishing or amending your estate plan:

(1)   Who would you trust to carry out your wishes? Who is responsible and organized to manage your affairs while balancing their own life? Who will treat all beneficiaries fairly?

(2)   Who will love and take care of your child? No one wants to think about not being there for their child but no decision means the court decides.

(3)   What assets do you have? Will your estate be subject to probate if your assets are not owned in a Trust? Do you own a home? Do you have a retirement account which a trust should be named the beneficiary? Will your estate be subject to estate tax?

(4)   Who do you want to benefit from your estate? Do you have children? Are they minors? Has your family dynamic changed? Have you gotten divorced? Does someone have special needs which need to be planned for?

(5)   How should your beneficiaries receive their inheritance? Do you want their share to go out right? Maybe you want them to reach a certain age before distribution? Do you want their share to be held in trust and funds to be distributed for their health, education, maintenance and support? Do you want to provide incentives for heirs?

We offer a complimentary 30 minutes consultation to discuss your specific situation and what estate planning strategy is best for you. Make an appointment to see one of our estate planning attorneys to ensure your wishes are carried out. Don’t be one of the 120 million Americans without an updated estate plan.

http://www.govtrack.us/congress/billtext.xpd?bill=hr110-1499

http://www.abanow.org/2011/10/american-bar-association-offers-tips-during%20-national-estate-planning-awareness-week/

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

Anyone knows that raising children is a daunting task.  There are no handbooks, no formal educational requirements, no tests that need to be passed . . . the majority of us do the best we can and hope that we don’t do any lasting damage and the therapy bills aren’t too high.  As difficult as raising a child without any developmental disabilities can be, a parent raising a child with developmental disabilities encounters issues that many people never even know exist.

In 1969, California enacted the Lanterman Act, which guarantees individuals with intellectual and developmental disabilities the
right to obtain the support services necessary to live as independently as possible in their own communities.  Prior to that time, if not living elsewhere, the only options for people with developmental disabilities were state-run institutions, where they were often placed in overcrowded facilities located wherever the state had space, oftentimes far away from family members and loved ones.

Last month, Advocates for Californians with developmental disabilities filed a lawsuit claiming that the State of California is violating various state and federal laws, among them, the Lanterman Act, by failing to provide basic support services which allow Californians with developmental disabilities to live safely in their communities.  The lawsuit alleges that the State has abandoned people with developmental disabilities and exposed them to health and safety risks by failing to provide reasonable support services as a result of a decade of rate freezes, program closures and devastating budget cuts.

With more and more funding and programs – both State and Federal – being cut, it is imperative that anyone caring for a person with special needs does everything possible to preserve the funds and services available for him/her to live as fulfilling and productive a life as possible.

Many people do not know there are certain governmental benefits which are available to a person with disabilities provided that certain requirements are met.  The disabled individual may be entitled to receive SSI, Medi-Cal, SSDI and Medicare (or a combination thereof).  Although not every disabled individual may need the monetary benefits of SSI and/or SSDI, the Medi-Cal and/or Medicare
benefits are often extremely important, as it is difficult, if not impossible, for many disabled individuals to obtain any form of independent health insurance.  However, if the disabled individual’s assets/income/ability to earn income are too great, these benefits
may not be available to him.

What if you leave $500,000 to your disabled adult child for his lifetime needs, however, he needs the Medi-Cal benefits he currently receives?  If you leave the money to him outright, he will be disqualified from receiving SSI, as he doesn’t meet the minimum asset requirements needed to qualify for SSI.  Once he loses SSI, he loses Medi-Cal, unless he can qualify under an exception.  This is where a Special Needs Trust steps in.  If you leave the money not to your son, but to a Special Needs Trust for his benefit, the $500,000 is not counted as an “asset” for SSI purposes, and therefore, as long as the trust is properly administered, his governmental benefits, including Medi-Cal, remain uninterrupted.  A Special Needs Trust can be an invaluable resource for an individual with developmental disabilities, as it can provide for his lifetime needs by allowing him to access the money left to him by his loved ones, while also allowing him to access those benefits which only the government can provide.  An added benefit of a properly drafted Special Needs Trust is that it
can also provide the family of a disabled individual with a priceless gift … peace of mind.  Call us at (650) 463-1550 to make your appointment today, and bring a little peace into your life.

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

The law firm recently posted an article about charitable giving from The American Academy of Estate Planning Attorneys. It explained
that in 2010, Americans gave more than $290 billion to charity and of that $212 billion was donated by individuals or household donors. It is incredible that Americans are so generous with their money.

Most people have charitable interests—whether it be to help seniors, care for poor children, or health care for the needy—however, most
people have difficulty selecting the individual charity. Or, if they do have a charity in mind, they may wonder about the charity’s performance and how it uses the money. First, to be sure a charity qualifies as a 501(c)3 (allowing for any income tax deduction), check out the IRS’ website. Then, begin by going online and reviewing the charities. There are websites like http://www2.guidestar.org/ or http://www.charitynavigator.org/ that allow you to review a charity’s performance and financial decisions. These websites inform you of how the charities spend their money.

Charitable giving can be done through a variety of ways. Many people simply write a check to the charity making an outright donation.
Others create trusts, funds or foundations depending on their interests and the amount of money involved. For example, if you have a highly-appreciated asset, then you can transfer it to a charitable remainder trust. The trust will pay you every year and at the end of a specified number of years the asset will then transfer to the charity. If you are interested in giving to charities through an estate planning tool, then please contact our office at (650) 463-1550 or via email information@falkandcornell.com.

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