The Debate Continues and the Future of the Estate Tax Remains Uncertain
542 words. 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.
Death and Tragedy
423 Words. 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.
Special Needs Trusts and Autism
Autism is on the rise. You want to leave assets to your child without jeopardizing the availability of public benefits. A Special Needs Trust can help. This article explains how.
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."
Planning for Unforeseen Circumstances
The article examines the importance of drafting flexibility into your estate plan to adjust for changes in values, circumstances, and interests.
Do You Know Who Your Beneficiaries Are?
The article looks at several types of items that pass outside a Will or Trust. In particular, it examines retirement beneficiary designations and new rules by Vanguard Group which might have disastrous results for the unaware.
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.
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.
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.
New Flexibilities for Partners, Children, and Others
The article examines the new "non-spousal rollover" provisions of th Pension Protection Act of 2006.
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.
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.
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.
Could Deficit Reduction Take Your Life Savings?
This article discusses how long-term care costs can be a major financial drain. It looks at how the changes in Medicaid law could make it much more difficult to plan. It stresses the need for pre-planning. It briefly looks at Income Only trusts as a potential planning option.
I Just Inherited Money! Now What Do I Do?
This article examines what a beneficiary should consider when they find out they are receiving an inheritance. It touches on basis step-up, disclaimer, non-inclusion in income, 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.
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.
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 (McDonald’s 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).
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.
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.
Remarriage: Treat New Spouse Like Royalty
Examines use of income trust in remarriage situations. Analogizes to royal trust in Duchy of Cornwall.
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.
What to Do after a Loved One Dies
Clients often have uncertainty regarding the process after death. The article looks at the typical roles, such as trustee and executor, and explains their duties. The article directs the reader to contact an estate planning / administration attorney. The article mentions a couple post-mortem steps such as gathering assets and cautions against retitling assets or making distributions until talking with the attorney.
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.
Common Mistakes in Estate Planning
People make many mistakes in estate planning. Several examples of mistakes are given, including procrastination, failure to update, improper fiduciary choices, leaving assets outright, etc.
Do I Need to Plan If I Have Joint Tenancy Property?
We all have the friends or family that think they are the armchair experts on everything. They want to walk on your back when you are in agony. They told you Enron was a hot stock to buy. And, they tell you that all you need is to hold assets in joint tenancy.
Health Care Directives Make a Difference
We have all been sick before. Whether it is from the flu or from a more chronic ailment, we have all experienced, to some degree, the feeling of vulnerability illness brings. While we cannot always avoid illness, we can mitigate the vulnerability by expressing wishes ahead of time.
It Can Happen to the Best of Us
We all think our families can get along, when it really matters. We think that family frictions will fade into the background and we can pull together. However, sometimes family frictions erupt at the death of a parent or grandparent and can result in challenges to the estate plan. This can even happen to the best of us.
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.
Get an Estate Plan — Not an Estate Scam
Estate planning is an important part of life. In fact, it is central to who we are as people. In planning for our future, we must analyze who we are, what our goals are, and whom we wish to help in this world. It makes us aware of our own mortality, but also the impact we can make in the world. A qualified estate planning attorney can help you with this important and intimate process — accomplishing your goals in the best, most tax efficient manner.
Trustee Investment Decisions: Are You Being Prudent?
eing a trustee is both an honor and a responsibility. Someone trusted your wisdom and judgment enough to place you in a position of authority over their hard-earned assets. These assets may be critical to achieving their most important goals, such as supporting and educating their children.
IRA and 401k Beneficiary Designations: Not to Be Taken Lightly
If you are like most Americans, you have money taken out of each paycheck for your IRA, 401k, or other retirement plan. Those deductions add up over time. Over the past twenty years, IRAs and 401k plans have become an increasingly important part of our lives. According to statistics from the Investment Company Institute and the Federal Reserve Board, retirement plans account for nearly $11 trillion in American wealth. For many Americans, this becomes their largest asset.
Do Trusts Really Save Administration Costs?
veryone is in agreement that a properly drafted and funded living trust will avoid probate, but some commentators believe that the savings being touted are illusory. The commentators' opinion is that the increased cost of preparing the living trust (over the cost of preparing a Will), when combined with the trust administration expenses at death, will equal or exceed the costs of preparing the Will and administration of the estate through probate, leading to no real savings.
Top 10 Reasons for Periodic Estate Planning Review
Some people think that estate planning is a once in a lifetime project. But, as John F. Kennedy said, “change is the law of life.” Periodic review of an estate plan is essential to ensure that your plan continues to accomplish your goals in the most effective manner.
Estate Planning Savoir-faire: The International Client
.S. estate and gift taxes apply differently to Americans than to non-Americans. So, when planning, it is important to keep these differences in mind.
How Will Your Assets Pass Upon Your Death?
Have you ever wondered what happens to a person's assets when they pass away? Just about everyone knows about a Will, and the fact that it includes instructions on how to dispose of a decedent's assets upon his or her death. But did you know there are other ways of transferring assets to your loved ones upon your death? You can easily remember three methods by recognizing the acronym C.O.P. - Contract, Operation of Law, and Probate.
Why Women Hold the Keys to Successful Estate Planning
Some people still assume that, when it comes to financial and legal matters, women are not key players. However, this is entirely inaccurate. Women are most likely to be highly involved and greatly affected by estate planning. In recent generations, women have taken on a larger role in the financial arena. The number of women in the workplace has tripled in the last fifty years. Meanwhile, the real median income of women has increased by sixty-three percent, while that of men has declined by six percent in the same period. This income shift changes the family dynamics and gives women a greater voice in financial matters. According to a recent survey, women have an equal say in major financial decisions in seventy-five percent of households. In homes where one partner is solely responsible for financial decisions, women outnumber men in that role by a four to three margin.
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.
Estate Planning: Know the Terminology
Although thinking of one's own death is an uncomfortable task, most people agree that initiating some form of estate planning is prudent. However, some people may feel intimidated by meeting with an attorney to discuss their needs because of an unfamiliarity with the law. A good lawyer will discuss your available options in simple terms that a person with no legal training can comprehend. But you can also relieve some of that hesitancy by familiarizing yourself with legal terminology before meeting with a qualified estate planning attorney to discuss the appropriate choices for you.
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.
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.
How to Gift Assets to Your Children: "Look, But Don't Touch"
Contrary to popular belief, the Internal Revenue Service ("IRS") does provide taxpayers with certain tax breaks. One example is the annual gift tax exclusion. Generally, the gratuitous transfer of assets is subject to a gift tax. However, each taxpayer can annually transfer $10,000 worth of assets, per recipient, free of gift tax ($20,000 for a married couple). Gifting assets provides an excellent means of removing assets from a person's taxable estate, thereby avoiding the Federal estate tax upon death, a tax that peaks at 55%.
Why Gay and Lesbian Couples Need Estate Planning
Equality is something everyone wants and expects. Often though, equality is not an option for everyone. Gay and lesbian couples face discrimination at work, at school and in social settings. Their sexuality plays a role in how they are treated every day - by employers, family members, friends and even strangers. But it's how they are treated after one Partner dies that may be even more unsettling.
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.
Insurance and Estate Taxes: Two Sides of the Coin
Life Insurance can be an integral part of proper estate planning in several ways.
An effective Estate Plan maximizes the value of the estate. Transferring life insurance policies from an estate may assist in reaching that goal. Life Insurance also can be used to pay the estate taxes that cannot otherwise be avoided. Life insurance becomes a two-sided coin in estate planning.
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.
Protect Your Children: Choose a Guardian
Many parents suddenly find themselves considering estate planning because they want to ensure the care of their children. John and Anna Perry, a couple from Albuquerque, New Mexico recently adopted a newborn baby. Even though they are in their late twenties, they're concerned about who would care for their son if something happened to them. As a result, they have begun to look into estate planning and evaluate their current financial plans. They have a retirement plan (IRAs, pensions and 401(k) benefits), life insurance and other investments, but they recognize that those plans may not meet their new needs as parents. So, what should parents know about guardianship and conservatorship or "guardian of the estate?" And, how do you go about choosing the best person to care for your children's physical, mental and financial needs?
Where There's a Will, There's Probate
This article contrasts the estate planning advantages of the Revocable Living Trust over wills.
