tag:blogger.com,1999:blog-70706296110750278092024-03-19T01:50:33.569-07:00RonFeinman, Esq.providing Business, Legacy and Estate Planning :: Asset Protection :: Wealth Counsel :: Elder Law and Fiduciary Litigation services in Lynchburg, Amherst, Bedford, Appomattox, Rustburg, Lovingston, Big Island, Moneta, Smith Mountain Lake, Amherst County, Bedford County, Campbell County, Appomattox County, Nelson County, Charlotte County,and Southside VriginiaRonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.comBlogger42125tag:blogger.com,1999:blog-7070629611075027809.post-22635215376135062102011-09-16T10:25:00.001-07:002011-09-16T10:25:55.704-07:00Estate Planning For Women (And the Men Who Love Them)<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivd19Slds4VxPzLytd2yTDKLTBhkLR73LrQYNSkxdilpoFJ4WTkZjeSq8WhR4S_aH_G-y-KFyPzhYxbjOp6s27YukBNaZPjKgkBQqbKCZavAY3PR6J-uZ_m1TF_GKv3y9xFqVDDkXWSNGb/s1600/Financially+Savvy+-+question+1-755705.png"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEivd19Slds4VxPzLytd2yTDKLTBhkLR73LrQYNSkxdilpoFJ4WTkZjeSq8WhR4S_aH_G-y-KFyPzhYxbjOp6s27YukBNaZPjKgkBQqbKCZavAY3PR6J-uZ_m1TF_GKv3y9xFqVDDkXWSNGb/s320/Financially+Savvy+-+question+1-755705.png" border="0" alt="" id="BLOGGER_PHOTO_ID_5653010000235187458" /></a></p><div class=WordSection1><p><b>While important to both sexes, estate planning often affects women more profoundly. Women live longer on average and tend to marry older spouses, making them three times as likely as men to be widowed at 65. So for women, estate planning is a crucial part of retirement planning. And since they usually survive their spouses, women more often have the last word about how much wealth goes to family, charity or the taxman. <o:p></o:p></b></p><p class=MsoNormal><b>A fellow attorney (and award winning journalist) Deborah Jacobs recently authored an article in Forbes titled “Estate Planning for Women (And the Men who Love Them)” she indicated the below question is one every financially savvy woman should be able to answer. <o:p></o:p></b></p><h1>Question #1 <o:p></o:p></h1><p class=MsoNormal><b>What key deadlines apply when a spouse dies?</b><o:p></o:p></p><p class=MsoNormal><i>Starting in 2011, a surviving spouse can add any unused estate tax exclusion of the just deceased spouse to her own $5 million exclusion--this is called portability. So a widow can pass on as much as $10 million, untaxed, through either lifetime gifts or her will. But portability is not automatic. To get it, the executor of the estate of the first spouse to die must file an estate tax return, even if no tax is due. Surviving spouses should see to it that the form is filed even if they have nowhere near $5 million of their own, because who knows what the future holds?<o:p></o:p></i></p><p class=MsoNormal><i>Nine months is also the deadline if you plan to disclaim (turn down) any portion of what you inherited from a spouse so that it can go directly to your children or other family members or into a trust for their benefit. The new tax law makes it more likely that spouses will leave everything to each other outright. Other couples may want to give the survivor the right to disclaim at least some money and have it go into a family trust or bypass trust, as it is also called. This allows the survivor to make an informed decision based on her own financial resources and federal and state estate laws at that time. If you want to use this postmortem tax planning strategy, you need to keep an eye on the calendar.</i><o:p></o:p></p><p class=MsoNormal><b>Questions like this one can often trigger even more questions in your mind. Please accept my invitation to schedule a meeting where we can discuss this topic and others that might be relevant to your estate planning. Give my office a call to set a meeting. <o:p></o:p></b></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-69724071504014292622011-09-08T11:03:00.001-07:002011-09-08T11:03:14.713-07:00Amy Winehouse got her will right<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilMo4Yx0N8FphfNzT6Qd4IlD2fRuLhJi60Ujn6l_JZDXatWOAycogyzW7s_mtXMSqGjQfbyZezp33cEi0PKz1p0bodwXjA2dICGG8_W-xxQTKFUltJPjkzVAzOTzpGmTHa90FYZJNwib38/s1600/AmyWinehouse-794714.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilMo4Yx0N8FphfNzT6Qd4IlD2fRuLhJi60Ujn6l_JZDXatWOAycogyzW7s_mtXMSqGjQfbyZezp33cEi0PKz1p0bodwXjA2dICGG8_W-xxQTKFUltJPjkzVAzOTzpGmTHa90FYZJNwib38/s320/AmyWinehouse-794714.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5650050931017005906" /></a></p><div class=WordSection1><h2><span style='font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;font-style:normal'>This commentary is taken from an article authored by Karen Datko in </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";font-style:normal'>MSN Money </span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";font-weight:normal;font-style:normal'>on July 27, 2011. It gets right to the core of a will and its potential importance for your estate. I wanted to share this with you. <o:p></o:p></span></h2><h2><span style='font-size:12.0pt;font-family:"Times New Roman","serif";font-style:normal'>The late soulstress reportedly wrote a will that excluded her ne'er-do-well ex-husband. <o:p></o:p></span></h2><p><i>The late <a href="http://www.bing.com/search?q=Amy+Winehouse&go=&qs=n&sk=&sc=8-13&form=MSMONY" title="http://www.bing.com/search?q=Amy+Winehouse&go=&qs=n&sk=&sc=8-13&form=MSMONY">Amy Winehouse</a> was many things to many folks -- fabulous talent, an <a href="http://www.bing.com/search?q=amy+winehouse+lady+gaga&go=&qs=n&sk=&sc=1-23&form=MSMONY" title="http://www.bing.com/search?q=amy+winehouse+lady+gaga&go=&qs=n&sk=&sc=1-23&form=MSMONY">inspiration to Lady Gaga</a>, an addict who couldn't quite shed her demons all come to mind. Add to that list: wise estate planner.<o:p></o:p></i></p><p><i>Winehouse's revised will <a href="http://www.dailymail.co.uk/tvshowbiz/article-2018757/Amy-Winehouse-dead-Blake-Fielder-Civil-left-10m-will.html" title="http://www.dailymail.co.uk/tvshowbiz/article-2018757/Amy-Winehouse-dead-Blake-Fielder-Civil-left-10m-will.html">reportedly</a> prevents any of her fortune, estimated at $16 million and most assuredly growing, from going to her ex-husband, Blake Fielder-Civil, widely regarded as the person who introduced her to hard drugs. Instead, her millions will be divided among her father, Mitch; mother, Janis; and older brother, Alex.<o:p></o:p></i></p><p><i> "Let this be a lesson to both the famous and the obscure: A will is a good idea at any adult age," Ron Dicker <a href="http://www.dailyfinance.com/2011/07/26/amy-winehouses-will-singer-songwriter-played-it-smart/" title="http://www.dailyfinance.com/2011/07/26/amy-winehouses-will-singer-songwriter-played-it-smart/">wrote at DailyFinance</a>. <o:p></o:p></i></p><p><i>Fielder-Civil, now serving a sentence for burglary and possession of an imitation firearm, might have inherited everything had Winehouse not put a new will in place. Tim Worstall <a href="http://blogs.forbes.com/timworstall/2011/07/24/amy-winehouse-who-gets-the-money/" title="http://blogs.forbes.com/timworstall/2011/07/24/amy-winehouse-who-gets-the-money/">wrote at Forbes</a>: <o:p></o:p></i></p><h5><i>However, the one thing, under English law, that divorce does not do is undo the presumption that the natural inheritor is the spouse. In the absence of a will the surviving spouse will inherit at least the bulk of any estate.<o:p></o:p></i></h5><h5><i>Even in the presence of a will written pre-marriage which states otherwise the surviving spouse, or ex-spouse, will again be the natural inheritor. <o:p></o:p></i></h5><p><i>How would it work in the United States? It varies from state to state, but generally if you die <a href="http://www.bing.com/search?q=intestate&qs=n&sk=&sc=8-9&form=MSMONY" title="http://www.bing.com/search?q=intestate&qs=n&sk=&sc=8-9&form=MSMONY">intestate</a>, your estate will go to spouse and kids, or parents or siblings if you are single and don't have children.<o:p></o:p></i></p><p><i> Do you have a will? There's a good possibility you don't, even if you're well past <a href="http://www.bing.com/search?q=The+27+club&go=&qs=n&sk=&sc=8-11&form=MSMONY" title="http://www.bing.com/search?q=The+27+club&go=&qs=n&sk=&sc=8-11&form=MSMONY">27</a>. "According to an AARP survey, more than one third of Americans over 50 lack a will, living trust, or power of attorney," Kimberly Palmer <a href="http://money.usnews.com/money/blogs/alpha-consumer/2011/07/27/amy-winehouses-financial-legacy" title="http://money.usnews.com/money/blogs/alpha-consumer/2011/07/27/amy-winehouses-financial-legacy">wrote at U.S. News & World Report</a>.<o:p></o:p></i></p><p><i>If you're a parent of minor children, consider yourself negligent if you don't have one. <a href="http://money.msn.com/retirement-plan/3-legal-papers-you-should-not-live-without-weston.aspx" title="http://money.msn.com/retirement-plan/3-legal-papers-you-should-not-live-without-weston.aspx">Liz Weston of MSN Money wrote</a>: "No matter how icky you feel about planning for your own demise, you owe it to your kids to spare them the potentially ugly and drawn-out custody battle that could ensue if you don't make these decisions now."<o:p></o:p></i></p><p class=MsoNormal><b>Whether you are older than 27 or younger than 27, it may be worth meeting to discuss a will. After all, it was a very smart move by Amy Winehouse and it could be equally beneficial to you. I’m available to schedule a meeting. <o:p></o:p></b></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-85218109236186782812011-08-26T15:52:00.001-07:002011-08-26T15:52:23.127-07:00Uncovering Dementia and Alzheimer's Cover-ups<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizUPuqumeK88s0P-m68848p2LP5kz0szD7m8-uNKs2hEVUipfDZ2RCgpCVFha3abMLdhw6ytaxJldp1_E1zH38MbSRYL1sdn9o6N-lEvewKodrykx2GpruIKqlV1YuW8pqvZowuQXYL_Pf/s1600/dementia-743128.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEizUPuqumeK88s0P-m68848p2LP5kz0szD7m8-uNKs2hEVUipfDZ2RCgpCVFha3abMLdhw6ytaxJldp1_E1zH38MbSRYL1sdn9o6N-lEvewKodrykx2GpruIKqlV1YuW8pqvZowuQXYL_Pf/s320/dementia-743128.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5645301334898822722" /></a></p><div class=WordSection1><p><b>One of my estate planning colleagues, <span class=post-footers>Lizette Sundvick, </span>who practices in Nevada recently penned this comment on dementia cover-ups. Her post occurred after reading this “<em><a href="http://www.forbes.com/sites/carolynrosenblatt/2011/08/11/the-danger-of-your-aging-parent-covering-up-dementia/">The Danger of Your Aging Parent Covering Up Dementia</a></em>” article in </b><strong><span style='font-weight:normal'>Forbes</span></strong><b> (August 11, 2011)<o:p></o:p></b></p><p><em>Here’s what’s important: it doesn’t matter if you have a diagnosis for your aging parent or not. It matters how your aging parent functions. It matters how you deal with what you see.</em><o:p></o:p></p><p><i>Dementia and Alzheimer’s are becoming increasingly common, but even if we are beginning to become more and more aware of how to spot them, it doesn’t make it any easier. Many a reader will be familiar with the terrible uncertainty and concern over their elderly parent’s thinking. Fortunately, Carolyn Rosenblatt of <strong>Forbes</strong> has <a href="http://www.forbes.com/sites/carolynrosenblatt/2011/08/11/the-danger-of-your-aging-parent-covering-up-dementia/">more advice to give in her recent article</a>.<o:p></o:p></i></p><p><i>Among the many dangers to keep in mind when an elderly loved one starts “slipping” is that they may begin “hiding” it. For one thing, it is not something with which any senior looks forward to acknowledging, even if they are aware of some telltale symptoms. It is human nature.<o:p></o:p></i></p><p><i>We all compensate or distract when there is something to hide, both from ourselves and from others. But when something like Alzheimer’s is at stake, it can be all the more difficult to get past, and it is harmful to hide. Indeed, since there is no actual test for dementia or Alzheimer’s, it is possible that a doctor will be unable to diagnose those conditions.<o:p></o:p></i></p><p><i>It is important, therefore, to observe how your loved one functions. Keep a keen eye on them and know what you are seeing, for their own sake. The original article has more advice and anecdotes to offer, but Ms. Rosenblatt sums up the steps in four points. As soon as you begin to worry you must, <b>first</b>, persuade your loved one to visit a doctor, and a specialist if possible, to detect it early. <b>Second</b>, you must secure their estate planning documents while they have legal capacity to know and understand what they are doing. <b>Third</b>, you must secure proper care for them. <b>Fourth</b> and last, you have to discuss the circumstances openly with all family members, so all may be aware of the circumstances and can work together to protect your loved one.<o:p></o:p></i></p><p><b>Good estate planning should take into consideration the healthcare and power of attorney documents needed to insure a smoother transition for proper care in this type of situation. As articles, like this one in </b><strong><i><span style='font-weight:normal'>Forbes</span></i></strong><b>, raise our awareness of the growing painfulness of dementia and Alzheimer’s, you or your loved one may want to update your existing plan or design a new plan. We can help. Our office is available to take your call to schedule an appointment. <o:p></o:p></b></p><p class=MsoNormal><o:p> </o:p></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com1tag:blogger.com,1999:blog-7070629611075027809.post-21331733846442490292011-08-05T15:24:00.001-07:002011-08-05T15:24:11.446-07:00Back to Basics with Estate Planning<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8l9-IOHwNSjlHGKd-qfKX38aIRHqGM4Lp2ZWBr3nxwdUkww74E-5auWubYwMUied3TipC-EAW48jW88XoBc6v6gvA9tbD-W3JzKlxBFFzYKaoB6GSSg_E4ytHv39MZs7-REVUBF1RUj28/s1600/last-will-and-testament-751447.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8l9-IOHwNSjlHGKd-qfKX38aIRHqGM4Lp2ZWBr3nxwdUkww74E-5auWubYwMUied3TipC-EAW48jW88XoBc6v6gvA9tbD-W3JzKlxBFFzYKaoB6GSSg_E4ytHv39MZs7-REVUBF1RUj28/s320/last-will-and-testament-751447.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5637501279664045842" /></a></p><div class=WordSection1><h3>Fundamental Estate Planning<o:p></o:p></h3><p style='text-align:justify'><b><i>The fundamentals are the same across all sizes of estates. A recent post by my estate planning colleague, Scott Makuakane, who practices in Hawaii reminded me once again that it is important to review the basics. Below is Scott’s blog posting on the fundamentals. I think you will find them a brief, but worthwhile, read. <o:p></o:p></i></b></p><p style='text-align:justify'> No one enjoys a conversation about death. And, with the estate tax exemption now set at $5 million for an individual and $10 million for a couple, many people may believe they have no reason to consult an attorney about their estate planning. But avoiding the topic of estate planning can mean unnecessary expense, confusion and conflict.<o:p></o:p></p><p style='text-align:justify'><a href="http://www.sbnonline.com/2011/02/how-to-craft-a-well-thought-out-estate-plan/2/">SmartBusiness </a>recently highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper.<o:p></o:p></p><ul type=disc><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3'><em>Why do you need an estate plan? </em>A comprehensive estate plan ensures that your estate will distributed according to your wishes, provides protection for yourself in the event of your own disability, and allows you to plan for minor children, pets, and charitable causes. You can also make sure that the assets you leave behind will be there for your intended beneficiaries - and not their creditors or ex-spouses.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3'><em>Can I write my own will? </em>You certainly can, and there are many online sites to help you do so! However, remember that you get what you pay for. Improperly drafted or last-minute, hand-written wills frequently are contested and invalidated in court. If you don’t know what you’re doing, the outcome could be much different than what you expect.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3'><em>What should every estate plan have? </em> SmartBusiness recommends two powers of attorney and a living will. That's not a bad start, but I would expand the list to include a will, powers of attorney for financial affairs and for health care, and an authorization to your physician to share your health-care information with your health-care agent. <o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3'><em>What about trusts? </em>Many people choose to create trusts, not only to reduce estate taxes, but also to help their heirs avoid probate. Trusts also can help shield assets from loss to due to unforeseen circumstances, such as the bankruptcy, divorce, or lawsuits of your heirs.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify;mso-list:l0 level1 lfo3'><em>What mistakes do people tend to make in estate planning?</em> The writer points out two common mistakes: failure to plan for their personal effects, and failure to review and update their plans over time. Reviewing and updating your estate plan is particularly important in light of the frequent changes that have characterized our estate tax law of late. Although the estate tax "coupon" (the amount you can pass estate tax-free) is $5 million for the next two years, the coupon is set to go down to $1 million in 2013, and the estate tax rates are set to go from 35% to 55% at that time. Another mistake that we see is failure to implement an estate plan by making sure all assets are properly titled. Many people create trusts but then do not make sure that title to their assets is transferred into their trusts. <o:p></o:p></li></ul><p style='text-align:justify'><b><i>If you have questions, let’s get together and get them answered. My goal is to provide you with helpful information for creating, implementing, and updating your estate plan to serve your wishes. And our mutual goal will be creating an estate plan that will succeed when it is called upon to take you and your loved ones through life’s inevitable transitions.<o:p></o:p></i></b></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-80227236215306502342011-07-11T11:17:00.001-07:002011-07-11T11:17:31.126-07:00Top 10 Icebreakers offer guide for blogging<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9hFi7frpY3McSDpNKwg0slD93sLCdnIS7k1gQDBDxpi-ikzplDJNYvsYqoWQazFgto0jbpGaJ0q3we9F0lYoKxju8pDwYYClOu7X36ohX_wIJ3V_Ya-fPiF86ysCbfHDny1iZ6MRWNVEK/s1600/SmallTalk-751127.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9hFi7frpY3McSDpNKwg0slD93sLCdnIS7k1gQDBDxpi-ikzplDJNYvsYqoWQazFgto0jbpGaJ0q3we9F0lYoKxju8pDwYYClOu7X36ohX_wIJ3V_Ya-fPiF86ysCbfHDny1iZ6MRWNVEK/s320/SmallTalk-751127.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5628160586571218290" /></a></p><div class=WordSection1><p class=MsoNormal>Another subject that I wanted to bring to your attention is a recently published book recommended by one of my colleagues. It helps with the starting points for getting and keeping good relationships. My goal as a legal counsel is to connect as well as to deliver good legal counsel. I thought you would find these “icebreakers” to be helpful suggestions. <o:p></o:p></p><p class=MsoNormal>Debra Fine, author of The Fine Art of Small Talk offers a lot of helpful advice on networking and connecting with people while networking. In her book she includes a list of her top 10 icebreakers. She suggests using them at any occasion where you have few established relationships. We’ve all been at those types of events – school meetings, business events, fundraisers, cocktail parties, dinners, and conferences/conventions where you need to start a conversation with people you don’t know well or those “strangers” you would like to meet.<o:p></o:p></p><p class=MsoNormal>Top Ten Icebreakers<o:p></o:p></p><p class=MsoNormal>1. What is your connection to this event?<o:p></o:p></p><p class=MsoNormal>2. What keeps you busy outside of work?<o:p></o:p></p><p class=MsoNormal>3. Tell me about the organizations you are involved with.<o:p></o:p></p><p class=MsoNormal>4. How did you come up with this idea?<o:p></o:p></p><p class=MsoNormal>5. What got you interested in … ?<o:p></o:p></p><p class=MsoNormal>6. What do you attribute your success to?<o:p></o:p></p><p class=MsoNormal>7. Describe some of the challenges of your profession.<o:p></o:p></p><p class=MsoNormal>8. Describe your most important work experience ….<o:p></o:p></p><p class=MsoNormal>9. Bring me up to date.<o:p></o:p></p><p class=MsoNormal>10. Tell me about your family.<o:p></o:p></p><p class=MsoNormal>According to Fine, the theme to these ten icebreakers is that they are personal, but not too personal. “Your goal is to build a business relationship,” she says, “while still getting to know more about a customer or potential customer. If you are talking to an existing customer, they probably already know you are good at what you do, so you just want them to see you on a more human level.” Thinking about this –when you establish that comfortable connection on the human level, they are more likely to refer you to a friend or associate. <o:p></o:p></p><p class=MsoNormal>The other thing to note about these icebreaker guidelines is that they give the new person control to decide just how much information they are willing to share and where they want to set the parameters of the conversation. On your part, your job is to help the other person feel comfortable with you as a person. You never want to overwhelm them with complex topics. You never want to slip into insider jargon. And you never want to put your audience on the spot regarding religion or politics.<o:p></o:p></p><p class=MsoNormal>Many of our friends and acquaintances could be more effective using these 10 icebreakers, so I encourage you to forward this link to them. Let’s all communicate more effectively. And you are invited to contact me, so we can get better acquainted.<o:p></o:p></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-16755738603193190552011-06-21T15:41:00.001-07:002011-06-21T15:41:19.119-07:00ESTATE PLANNING: Planning for your children's education<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYvN6kWzu7XjOMAnW8hEwGlOZl9PLW4kwO-2Xm1tt_3av_OUR2A6guhsOxym6WHfcI2UOemPRpwCH7ptW3Gk0ZI2uzKFy4IrUahRaMyqK1sFZiA3nAiFv2HIvU9HdP9qmX9ebSwZt6VOs_/s1600/mighty+fitz-779120.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYvN6kWzu7XjOMAnW8hEwGlOZl9PLW4kwO-2Xm1tt_3av_OUR2A6guhsOxym6WHfcI2UOemPRpwCH7ptW3Gk0ZI2uzKFy4IrUahRaMyqK1sFZiA3nAiFv2HIvU9HdP9qmX9ebSwZt6VOs_/s320/mighty+fitz-779120.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5620806863048509074" /></a></p><div class=WordSection1><p><i><span lang=EN>Recently a fellow attorney in Indiana penned a thought provoking post on planning for your children’s education. I enjoyed it, and I share it below with you. The author is <a href="http://www.nwitimes.com/search/?l=50&sd=desc&s=start_time&f=html&byline=By%20Christopher%20W.%20YugoTimes%20Business%20Columnist">Chris Yugo</a> writing a column for <a href="http://www.nwitimes.com/app/inc/frontpage.php">The Times</a> in northwestern Indiana. <o:p></o:p></span></i></p><p><span lang=EN>I just finished reading a book by Michael Schumacher called the "Mighty Fitz: The Sinking of the Edmund Fitzgerald."<o:p></o:p></span></p><p><span lang=EN>As the title implies, the book chronicles the story of the Edmund Fitzgerald, a huge ore caring vessel that sank in Lake Superior in 1975. Except for what I learned from the <a href="http://en.wikipedia.org/wiki/Gordon_Lightfoot">Gordon Lightfoot</a> song, "<a href="http://en.wikipedia.org/wiki/Wreck_of_the_Edmund_Fitzgerald">The Wreck of the Edmund Fitzgerald</a>," I really knew very little about the ship and its sinking.<o:p></o:p></span></p><p><span lang=EN>Although you might imagine that book about a shipwreck would end with the ship's sinking, the book actually picked up from there to discuss the investigation and how the families of the men who were lost came to terms with the tragedy.<o:p></o:p></span></p><p><span lang=EN>One thing that caught my attention was a section dealing with the children of the sailors. In particular, it discussed how Eugene "Red" O'Brien, a wheelsman, encouraged his son to attend college and get an education by establishing a trust for his education. According to his son John, "It made me stay in college because it was my job. I was getting paid. Here was my dad, a guy with limited education, working on the lakes. Yet he had the insight to do these things"<o:p></o:p></span></p><p><span lang=EN>The book didn't go into too much detail about the terms but according to John, he received a monthly stipend as long as he remained in school.<o:p></o:p></span></p><p><span lang=EN>The great thing is each of you can do the same thing to encourage your children and grandchildren to attend school. Now some of you might be saying, "I'm having trouble just keeping the mortgage current. There is no way for me to establish a trust fund."<o:p></o:p></span></p><p><span lang=EN>In today's economic environment, I certainly understand that. However, you can still plan now without actually setting anything aside. You can set up a trust for your loved one's education within your will. A trust established within a will is a testamentary trust.<o:p></o:p></span></p><p><span lang=EN>By using a testamentary trust, you don't have to fund it until your death. At that time, it can be funded with the savings account or the proceeds from the sale of the home or from life insurance or retirement accounts. If the funds are available at your death, the trust will fund. If the funds aren't available at your death, then the trust won't fund and you haven't lost anything.<o:p></o:p></span></p><p><span lang=EN>Since you create the trust, you can choose the terms. For example, you can restrict the funds to only be used to pay for tuition, fees and books or it can pay any legitimate educational expense including room and board and perhaps a living allowance. You can make the terms as restrictive or unrestrictive as you please. So be creative.<o:p></o:p></span></p><p><span lang=EN>I'm pretty sure Red didn't plan on being lost at sea. However, he did have the foresight to plan, which enabled his son to get an education. Even if you don't work the ore carriers on the Great Lakes, you should still have a plan.<o:p></o:p></span></p><p><span lang=EN>Please note: Opinions are solely the columnist's, and his information is meant to be general in nature. Specific legal, tax, or insurance questions should be referred to your attorney, accountant or estate-planning specialist.<o:p></o:p></span></p><p><i><span lang=EN>Remember, I am the attorney who is available to address specific issues related to planning for your children’s education and other estate planning matters. Please call me or post a request to meet in the COMMENT section of this blog post. <o:p></o:p></span></i></p><p class=MsoNormal><o:p> </o:p></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com1tag:blogger.com,1999:blog-7070629611075027809.post-6480377962269318192011-06-07T09:24:00.001-07:002011-06-07T09:24:34.736-07:00It doesn't have to have monetary value to be important to your estate<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkZ-c7DjF4wC8GUKB77nmz80OdX2qh-1j0u_WQz_4PTuuBJaSVdc18nIJB9dXNnFxqhs7hvVq0mKdHOk6eCsKfshRIDO6DZLLP6lc2i4mdUVdh3eZH2CAjnNkYXGJco3fMiadgtU6-L0wg/s1600/PERSONAL+ITEMS-774737.png"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkZ-c7DjF4wC8GUKB77nmz80OdX2qh-1j0u_WQz_4PTuuBJaSVdc18nIJB9dXNnFxqhs7hvVq0mKdHOk6eCsKfshRIDO6DZLLP6lc2i4mdUVdh3eZH2CAjnNkYXGJco3fMiadgtU6-L0wg/s320/PERSONAL+ITEMS-774737.png" border="0" alt="" id="BLOGGER_PHOTO_ID_5615514585331562994" /></a></p><div class=WordSection1><p style='text-align:justify'><a href="http://www.sbnonline.com/2011/02/how-to-craft-a-well-thought-out-estate-plan/2/">SmartBusiness </a>recently highlighted the fundamentals of a “well-thought-out estate plan,” with topics that everyone should consider – whether prince or pauper.<o:p></o:p></p><p>One of their interesting points was that if you are working with an estate planning attorney, most likely the important areas are going to be properly addressed, including the impact of pending changes in estate taxes. However, I’ve found that many people overlook making arrangements for their personal effects, including jewelry, art work and collectibles. They simply assume that their loved ones will be able to agree on how to divide it all up. In my experience, these things are what people argue over the most.<o:p></o:p></p><p>Not long ago, there was a case involving two brothers who litigated for three years over the ‘stuff’ left in their mom’s house. They ended up spending over $50,000 on attorney’s fees fighting over items that were appraised for only $5,000. To avoid this happening in your family, draft a <b>Memorandum of Understanding</b> and attach it to your will. The Memorandum can be very simple, but it should also be very specific in detailing your wishes. Hold a family meeting to identify what your children want, and incorporate that into the memo.<o:p></o:p></p><p>As your circumstances change and evolve over the years, your plans need to be kept current. Don’t forget about external factors such as tax law changes and fluctuations in the value of real estate.<o:p></o:p></p><p>Few people sit down, annually, and take stock of their estates. But if you do, millions of dollars can be saved and much heartache can be avoided.<o:p></o:p></p><p style='text-align:justify'>If you have questions, let’s meet and talk. My goal is to provide you with helpful information for creating, implementing, and updating your estate plan to serve your wishes. And our mutual goal will be creating an estate plan that will succeed when it is called upon to take you and your loved ones through life’s inevitable transitions.<o:p></o:p></p><p><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-11098327513430455202011-05-25T09:20:00.001-07:002011-05-25T09:20:59.678-07:00Hiring a caregiver is trickier than you think<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieaZ2fFBdzF7WKmSdZockWwKx9KIRwl2OtD7NTONsIYFbkOYXOvvzEPqnP6cED391d1JvaIq3surM-YtICoVPFex9x7varE-OnDjP6QeFAThaA-b3z3hBf6sNEDqTvD1Yuc_eKwhPQBjzr/s1600/Hiring+a+caregiver-759680.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieaZ2fFBdzF7WKmSdZockWwKx9KIRwl2OtD7NTONsIYFbkOYXOvvzEPqnP6cED391d1JvaIq3surM-YtICoVPFex9x7varE-OnDjP6QeFAThaA-b3z3hBf6sNEDqTvD1Yuc_eKwhPQBjzr/s320/Hiring+a+caregiver-759680.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5610689554399757810" /></a></p><div class=WordSection1><p class=MsoNormal><b><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Recently my estate planning colleague in Hawaii, Scott Makuakane, posted these helpful comments on engaging caregiver(s) for those needing such services. As with so many things in today’s world, it is not as simple as it seems. I share this information with you as a “heads up” for when such a need may arise within your family. </span></i></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>If you are hiring a caregiver for yourself or another loved one, you may be tempted to try to make the process as simple as possible by treating the caregiver as a "private contractor." You tell the person "I will pay you so much an hour, and you deal with the IRS and the State when it comes time to pay taxes." After all, taking on the responsibilities of withholding taxes (and then paying the taxing authorities), buying Worker's Compensation insurance, paying Social Security and Medicare tax, and all the rest, may seem daunting if you have never done it before. Be aware, however, that the IRS and the State when it comes time to pay taxes." After all, taking on the responsibilities of withholding taxes (and then paying the taxing authorities), buying Worker's Compensation insurance, paying Social Security and Medicare tax, and all the rest, may seem daunting if you have never done it before. Be aware, however, that the IRS and the State will probably take the position that the caregiver is an employee, that you are an employer, and that all of the legal obligations that attach to those labels are applicable to your situation.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><a href="http://www.irs.gov/pub/irs-pdf/p926.pdf">IRS Publication 926</a></span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'> gives very helpful guidance to those hiring household employees, including caregivers. You would do well to go through that publication and consider all of the questions it poses, several of which might never occur to you. For example, can your prospective caregiver legally work in the U.S.? How do you verify that, and what records must you keep to prove that you satisfied your obligation to verify the caregiver's status? On that subject, you can find all of the </span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><a href="http://www.uscis.gov/">information and forms</a></span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'> you will need at the</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><a href="http://www.uscis.gov/"> U.S. Citizenship and Immigration Services website.</a></span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Depending on your budget and the number of caregivers you will need, it may make sense to look into local employment or caregiver agencies. This simplifies your job, because you can contract with the agency, and the agency will be the caregiver's employer and will deal with all of the details of being an employer. You will pay a premium for this kind of service (in other words, you will have to pay significantly more per hour for the caregiver's services if you deal with an agency than if you dealt directly with the caregiver), but the agency's experience and employment expertise may make the extra cost seem like a bargain.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Another set of issues arises if you opt to be the employer of a caregiver, and then your employee is injured on the job. If you have made sure to carry the right kinds of insurance, you will be fine. However, the consequences of failing to do so can be financially disastrous. An agency will probably carry Worker's Compensation insurance, but you should be sure to talk with your personal insurance professional to find out if there is anything else you should do to protect yourself through your homeowner's and umbrella policies. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>The bottom line is that you should not hire a caregiver without carefully considering your legal responsibilities and potential liabilities, and making sure they are addressed. Ask your trusted advisors--your CPA, your lawyer, and your insurance professional--for guidance, and check out the resources cited above. You will be glad you did.<o:p></o:p></span></p><p class=MsoNormal><b><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>I would hope you would give me a call prior to your engaging a caregiver. A few precautions can be very beneficial for the longer run…..and likely protect your estate. Please call me, or email me, or post a request to meet in the COMMENT portion of this blog. <o:p></o:p></span></i></b></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-12602431910256823312011-05-10T10:20:00.001-07:002011-05-10T10:20:07.329-07:00FINAL INSTRUCTIONS<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjx-3AusdbWb6GSFt0bYFfZgQRJGrmUNs75KtK6LRgX5IVCT4fD8V4fb4q3PiqYmI2L5EgKh_pdmmefIaZXGwrKS_iOlSJ_K-Br1I9p5mZsorARc5HJHLK3o8QMXiqmyDN0USDoHfoB9Yll/s1600/Instruction+Manual-707330.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjx-3AusdbWb6GSFt0bYFfZgQRJGrmUNs75KtK6LRgX5IVCT4fD8V4fb4q3PiqYmI2L5EgKh_pdmmefIaZXGwrKS_iOlSJ_K-Br1I9p5mZsorARc5HJHLK3o8QMXiqmyDN0USDoHfoB9Yll/s320/Instruction+Manual-707330.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5605138512479976802" /></a></p><div class=WordSection1><p class=MsoNormal style='layout-grid-mode:char'><b><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Recently one of my estate planning colleagues, addressed the importance of "Final Instructions". This type of information is similar to an instruction manual that steps us through arrangements that we should address in advance of the inevitability of our passing. We rarely get an instruction manual at birth, but we surely can leave one before our departure from life. My thanks for this post goes to Ellen Gay Moser who practices estate planning in the state of Illinois.</span></i></b><b><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'><o:p></o:p></span></i></b></p><p class=MsoNormal style='layout-grid-mode:char'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Your “instruction manual” for your children or survivors should begin with the basics. First, do you have a Trust and Will? If so, have you written instructions for your kids (survivors) to follow at your death or disability? </span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='layout-grid-mode:char'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>In regards to your estate, are you concerned about probate and taxes? If so, you have done a good job to provide for your heirs and save unnecessary costs, fees, and taxes. If not, you may be leaving your kids with no clues as to what to do and no instructions for them to follow. It's a well known habit that when all else fails, we read the instructions. But if we are left with no clues or instructions, what do we do? We waste a lot of time and money that tends to diminish your estate.</span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='layout-grid-mode:char'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>If you have a Trust, then you likely already have an instruction manual stating your goals as to who gets what and when they get it. The duties of your Successor Trustee are set forth in your Trust document and it is his/her fiduciary responsibility to abide by the law and the Trust. The Trustee must collect and manage assets, pay your debts and taxes and seek advice of counsel. Your goals to protect your loved ones can be carried out, if you state your goals loud and clear in your Trust.</span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='layout-grid-mode:char'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Your “Final Instructions” may include specific distributions of special stuff /memorabilia/heirlooms/investments/etc to go to certain people. Instructions will often include tax planning for married couples, disability planning when you become unable to manage your financial affairs prior to death, and who you want to be in charge of your property when you die or are disabled. Provisions may be made in your trust for protecting your children from predators and special instructions will protect your disabled children.</span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='layout-grid-mode:char'><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Do you have a plan to protect your children in the event your surviving spouse remarries? Do you care if a child is disinherited? Do you want to protect a spendthrift? If you plan your Will and Trust with lots of “baby sitter” instructions, your children may be protected for life, and your grandchildren too. At the minimum, Final Instructions are important to avoid the consequences of doing nothing. I encourage you to take the time now to meet with an estate planning attorney such as myself to create or review your Final </span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'>i</span><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>nstructions. </span><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal style='layout-grid-mode:char'><b><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Give me a call, send me an email, or leave a comment on this posting, so I can respond in a helpful manner with information or to set a meeting discuss your manual for “Final Instructions.”<o:p></o:p></span></i></b></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-48612984649735900162011-04-20T10:09:00.001-07:002011-04-20T10:09:16.652-07:00Three Classic Estate Planning Blunders<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixDVDsPYHSXPazyo25qNtxpRZ3D_Q8LLaAQHAtQ6S_PKtUugiQNviEU67cY-ON79lIP4RdxtxVmk-ZGZaK7QQ0Z_wZ8TqC8g0N_PY_8czup0kY_07HV3TbH2kBV1vqefqQogLom9V0fRQx/s1600/3commonblunders-756653.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixDVDsPYHSXPazyo25qNtxpRZ3D_Q8LLaAQHAtQ6S_PKtUugiQNviEU67cY-ON79lIP4RdxtxVmk-ZGZaK7QQ0Z_wZ8TqC8g0N_PY_8czup0kY_07HV3TbH2kBV1vqefqQogLom9V0fRQx/s320/3commonblunders-756653.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5597714017675539298" /></a></p><div class=WordSection1><h3><span style='font-size:10.0pt;color:black'>As we push our way through Tax Month, we are reminded of the importance of the basics of estate planning. My estate planning colleague in Hawaii, Scott Makuakane, recently posted the following article to revisit three areas we should avoid in estate planning. His article reflects the practical experience that comes his </span><span lang=EN style='font-size:10.0pt;color:black'>practicing estate planning and trust law in Hawaii since 1983. <o:p></o:p></span></h3><h3><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></h3><h3><i><span style='font-size:12.0pt;color:black'>Three Classic Estate Planning Blunders<o:p></o:p></span></i></h3><p style='text-align:justify'><i><span style='font-size:10.0pt;color:black'>Too often, estate plans fail. Here are the three most common reasons.<o:p></o:p></span></i></p><p style='text-align:justify'><strong><i><span style='font-size:10.0pt;color:black'>1. FAILURE TO PLAN.</span></i></strong><i><span style='font-size:10.0pt;color:black'> You have heard that failing to plan is planning to fail, and it is true. People procrastinate with their estate plans for a variety of reasons, one of them being the refusal of some of us to accept our own mortality. Not to rub it in, but passing into the Great Beyond is not an “if,” but a “when.” It will make a tremendous difference to your loved ones, your pets, and your favorite charities, if you have made a plan for what happens to your stuff (everything you own) when you assume room temperature. <o:p></o:p></span></i></p><p style='text-align:justify'><i><span style='font-size:10.0pt;color:black'>Your estate plan should also take into the account the possibility of your becoming incapacitated someday. This is an issue that has become more and more important as advances in medical science have made it possible for us to live longer lives. Unfortunately, medical science is still working hard to find the causes, and come up with solutions, to the various forms of dementia. Although we live longer today than in years past, a growing number of us ends up needing long-term care. It is absolutely critical to plan for how you and your loved ones will deal with the issues of long-term care, not the least of those issues being how you will pay for it.<o:p></o:p></span></i></p><p style='text-align:justify'><strong><i><span style='font-size:10.0pt;color:black'>2. FAILURE TO IMPLEMENT.</span></i></strong><i><span style='font-size:10.0pt;color:black'> Having a plan is great, but failing to implement your plan renders it all but worthless. One of the primary ways people fail to implement their plans is to neglect to transfer their assets into the right “buckets.” If you have a revocable living trust, it should probably hold most, if not all, of your assets. Yet many people die with assets in their own names, which, in turn, results in costly and time-consuming probate proceedings that could easily have been avoided with some simple asset transfers. <o:p></o:p></span></i></p><p style='text-align:justify'><strong><i><span style='font-size:10.0pt;color:black'>3. FAILURE TO UPDATE.</span></i></strong><i><span style='font-size:10.0pt;color:black'> Once you have set your course with your estate plan, you have to remember that even the best of plans will require course corrections. Your health will change. Your stuff will change. The law will change. The list of people you like and trust will change. It is important for your estate plan to change so you can be sure that it will work as intended. The best way to do this is through a regular discipline of reviewing your estate plan and updating it when necessary.<o:p></o:p></span></i></p><p style='text-align:justify'><b><span style='font-size:10.0pt;color:black'>I’m here to help you avoid all three of these “blunder” traps. If I can help, please contact me or leave a “comment” on this blog post. As a trained estate planning professional, my goal is to guide and support you through the estate planning process. <o:p></o:p></span></b></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-44540147915067262612011-03-29T15:45:00.001-07:002011-03-29T15:45:42.950-07:00Financial Parenting Tips<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUcoQ3aZCmKnkipPJcGiG8cTvhX1ATBSjb1071aq1IrxAMPUITmqlf2Ox_5epxFvpVqyDGMBoaegywf6qBLCcuqkDIt4ffh4Yj_pQ5buOduyvHn2QD0yuhKe2mo1Xn6ncueHdX5L30prI5/s1600/Financial+Parenting+2-742951.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUcoQ3aZCmKnkipPJcGiG8cTvhX1ATBSjb1071aq1IrxAMPUITmqlf2Ox_5epxFvpVqyDGMBoaegywf6qBLCcuqkDIt4ffh4Yj_pQ5buOduyvHn2QD0yuhKe2mo1Xn6ncueHdX5L30prI5/s320/Financial+Parenting+2-742951.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5589636840165477842" /></a></p><div class=WordSection1><p><i>Every parent is challenged to prepare their children for living meaningful lives and managing their affairs responsibly. Here are a few parental tips to help set the tone for your children and their approach to handling the money you provide. <o:p></o:p></i></p><p><i>My thanks to my WealthCounsel colleague, Wayne Ball, for turning my attention to these financial planning tips first shared by his legal colleague in Little Rock, Arkansas - Dee Davenport of Delta Trust.<o:p></o:p></i></p><p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b>Make money meaningful:</b> Good financial parenting could begin with an allowance that is tied to the completion of specific chores. It’s important to teach children that money is the result of performance or effort. It must be earned.<o:p></o:p></p><p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b>A sense of sharing:</b> Give young children holiday gifts in three pieces: one piece to spend, one piece to save, and one piece to give to someone who is in need. Families report great results with this simple plan, and heirs remember the lessons learned and speak of them gratefully for a lifetime.<o:p></o:p></p><p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b>Give just enough:</b> The sage of Omaha, Warren Buffet says “Give your children enough so they can do anything, but not enough so they do nothing”. At the same time, mature children whose values are intact could do so much good in the world, not only for themselves and their families, but also for their communities.<o:p></o:p></p><p style='margin-left:.5in;text-indent:-.25in;mso-list:l0 level1 lfo2'><![if !supportLists]><span style='font-family:Symbol'><span style='mso-list:Ignore'>·<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><b>Think long range:</b> Some of the most successful families have constructed “100 year plans” (four generations) to pass on both the family values and the family financial assets. Increasingly, families are engaging community members in their legacy development processes to assure the effectiveness of the gifts made.<o:p></o:p></p><p class=MsoNormal><i>These are just a few guidance tips for instilling many of the basic tenets of financial planning. I hope you find one or more that you can incorporate into your parenting activities. <o:p></o:p></i></p><p class=MsoNormal><i>For more formal estate planning strategies, I would enjoy meeting with you and sharing my experience and knowledge. We can meet – just give me a call, or you can leave a comment on this post. </i><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-23100992277895745882011-03-07T21:24:00.001-08:002011-03-07T21:24:25.524-08:00Estate planning for the rest of us<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQoxw15P_HVWlDks0vhPcrZi-Cb_xqFG0C-xuTmXgo4xPZi7AtcbFPoP07j5fV9XgTVR-Bjq_9BIZWihQFwowQqCJ3OS3QBMXVM6ZgWeRwsOUy3BpXvjhjnvakUtUs5pJSYB6os0pzfqxH/s1600/estate+planning+for+the+rest+of+us5-765525.png"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQoxw15P_HVWlDks0vhPcrZi-Cb_xqFG0C-xuTmXgo4xPZi7AtcbFPoP07j5fV9XgTVR-Bjq_9BIZWihQFwowQqCJ3OS3QBMXVM6ZgWeRwsOUy3BpXvjhjnvakUtUs5pJSYB6os0pzfqxH/s320/estate+planning+for+the+rest+of+us5-765525.png" border="0" alt="" id="BLOGGER_PHOTO_ID_5581575717128008386" /></a></p><div class=WordSection1><p class=MsoNormal>My WealthCounsel colleague, Suzann Beckett, offers an answer to one of the most often-asked questions I encounter in social gatherings. <o:p></o:p></p><p><i>An acquaintance asked me about estate planning, not long ago. They weren't asking for professional advice, they were literally asking if I could explain what estate planning is, and how it might affect them. It's a good question, one that I wish more people knew the answer to. <o:p></o:p></i></p><p><i>First, it's worth knowing that estate planning is not limited to the DuPont's and Carnegie's among us. Admittedly, Bill Gates and Warren Buffet have amassed fortunes so large as to suggest that significant thought needs to go into the planning of their estates. But estate planning isn't just about money. It's also about security, philanthropy, and control of our own interests. <o:p></o:p></i></p><p><i>One aspect of estate planning includes our health care plans. Not only can estate planning help determine our eligibility for Medicaid benefits, it can also allow each of us to issue specific directives about our own future health care. Even if a health crisis leaves us unable to speak for ourselves at some point, our prior planning can provide documentation of our wishes, which enables us to maintain control of our own destiny, even if we are temporarily or permanently incapacitated. <o:p></o:p></i></p><p><i>In fact, our estate planning can extend to the appointment of a specific person to act as our health care representative, as well as our desire to donate organs upon your death. It isn't just about our money and holdings. It is in a very real sense about us, as people. <o:p></o:p></i></p><p><i>Yes, estate planning allows us to make decisions while in our prime that will come into play even after we are gone (see my previous post about Ben Franklin). And more importantly your decisions are legally binding on those who may, or may not agree with our wishes. Remember, this is your own estate and your own life you are planning to protect. <o:p></o:p></i></p><p><i>Beyond health care, estate planning allows us to designate who speaks on our behalf should the need arise. Entering into a power of attorney allows us to appoint the person we trust most to oversee our personal business if we are unable to conduct our affairs ourselves. Many people assume that we must appoint our lawyer when we issue a power of attorney. And you certainly can do that if you wish to. But you can also give that authority to your spouse, or a child, or a close personal friend, or anyone else you wish. A power of attorney is yours to give, or revoke, at your discretion. Estate planning can help you enter into, or terminate a power of attorney, on your terms. <o:p></o:p></i></p><p><i>Perhaps the most commonly known aspect of estate planning is the drawing up of a will. But even that can be more far-reaching than most people realize. You have the opportunity to not only decide what happens to your holdings after your death, you also have the chance to establish a trust if you wish to, so that you can provide for the care of a family member, or another charitable cause that is important to you. Trusts can also be used to minimize a tax burden, in some cases. Estate planning can even allow an individual to develop a strategy to avoid probate on some holdings. A practice that allows a well planned execution of our wealth, no matter how big or small, that keeps it all in the family, for lack of a better term – rather than running the entire contents of our lives through the court system before it is distributed to our heirs, or whomever we wish it to go to. <o:p></o:p></i></p><p><i>The assumption that only the very wealthy have any need, or the even the option of engaging in estate planning, is incorrect. Almost anyone who has something of value to leave behind can benefit from estate planning. And even those who do not have significant wealth can benefit in terms of health care planning. <o:p></o:p></i></p><p><i>Each and every one of us has a unique situation to deal with as we walk through life. There is no blanket answer or master plan that will work for everyone under every possible circumstance. Perhaps the practice of estate planning would be more readily understood of we called it Individualized Planning, instead?<o:p></o:p></i></p><p><i>It's worth thinking about, at least. <o:p></o:p></i></p><p class=MsoNormal><span class=post-authorvcard>Many valid issues are raised in this posting. If you have questions related to any of the issues, please call me or leave a comment below, and I’ll get back to you. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-27613662384261995332011-02-15T09:40:00.001-08:002011-02-15T09:40:53.510-08:00Compensating Caregivers<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1b5E063I_D0mfsfZQkkKemv-LfgnT0TSx_5WpqVHs5WZW7usFTLNPFWNNOegloj5b4wwHjqDt6sMNRHgMuPrjl1nyePjAsuUizCt00joERKQVmBUGHPM7bEriwCmgYfQKLhqIpLKDODpI/s1600/caregiver-753511.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg1b5E063I_D0mfsfZQkkKemv-LfgnT0TSx_5WpqVHs5WZW7usFTLNPFWNNOegloj5b4wwHjqDt6sMNRHgMuPrjl1nyePjAsuUizCt00joERKQVmBUGHPM7bEriwCmgYfQKLhqIpLKDODpI/s320/caregiver-753511.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5573972713570691858" /></a></p><div class=WordSection1><h3>One in Seven Americans are Caregivers<o:p></o:p></h3><p><b>There are some serious issues looming on the horizon for baby boomers. Almost one in seven Americans looks after a disabled person age 50 or older. Many compensated and many not compensated, but it is a rapidly growing number (the number has jumped 28% since 2004). It’s an emerging situation that needs the compensation element to be formalized for many. <br></b><br><i>In the recent November issue of <strong><a href="http://www.fa-mag.com/component/content/article/6275.html?magazineID=1&issue=156&Itemid=73"><span style='font-weight:normal'>Financial Advisor</span></a> </strong><strong><span style='font-weight:normal'>the article</span> <a href="http://www.fa-mag.com/component/content/article/6275.html?magazineID=1&issue=156&Itemid=73"><span style='font-weight:normal'>“Compensating Caregivers”</span></a> </strong>quoted a 2009 survey found that 14.5% of the U.S. population – about one of every seven of us – is responsible for the care of a disabled person age 50 or over, up 28% since 2004. Increasingly, the elderly disabled are paying family members to care for them in family home. This raises a number of issues.<o:p></o:p></i></p><p><i>This article takes stock of the situation and urges caution and awareness. It may seem odd, unnecessary, or even heartless, but they advise that the arrangement with caregivers be legally formalized, reported, and in some cases even treated as employment. The reason is two-fold.<o:p></o:p></i></p><p><i>Firstly, by formalizing and documenting the arrangement, you make it legally acknowledged and transparent for both the care-giver and care-recipient. As the recipient of care, you may be able to claim an income tax deduction all or part of the payments as qualified medical expenses. Additionally, your payments will be well-documented, should Medicaid eligibility ever become an issue. Without this documentation, the unidentified transfer of funds to family members could be seen as an attempt to cheat the system.<o:p></o:p></i></p><p><i>Secondly, simply establishing a legal process for payment of care can help open up family dialogue, and raise awareness – especially among non-care-giving family members. Arrangements of this nature are bound to put stress on all parties, but dialogue, contractual understanding, and compensation can help smooth over difficulties for the care-receiver, the care-giver, and other family members. The care-receiver has a vital say in the arrangement, can avoid feeling like a “burden,” and remain a vital part of the family. Family members can discuss who is to administer care or how exactly they can support one another in fairly supporting the care-receiver. For that matter, too, sibling squabbles can be lessened when it comes to inheritance and estate arrangements if the family care arrangement is legally recorded.<o:p></o:p></i></p><p><b>I thank my WealthCounsel colleague in Nevada, Lizette Sundvick, for authoring this commentary on “Compensating Caregivers”. <o:p></o:p></b></p><p><b>Foresight, solid financial planning, and an awareness of the extent of any care arrangements are vital. I am always available to assist you with long-term care and other legal issues commonly associated with aging. You are welcome to give me a call to schedule a consultation, or leave a comment below this post, and I’ll share the dialogue with all. <o:p></o:p></b></p><p class=MsoNormal><o:p> </o:p></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-66261788446408609442011-01-24T15:24:00.001-08:002011-01-24T15:24:35.859-08:00Filing for Bankruptcy: What Can You Protect?<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIoguuwpof6xfmeT74xYvxc3R-iMkTYGb_8GXRz9rNvYkJslnSj0eXq19Fo-1-mXfzRyHdxPu3-5ZwLKKB2mxIhnpOvpnoYhLi2T_R-nmdF5XILLj5Zg75CvOM9bd2butYG9-JszohfFgj/s1600/Bankruptcy2-775860.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIoguuwpof6xfmeT74xYvxc3R-iMkTYGb_8GXRz9rNvYkJslnSj0eXq19Fo-1-mXfzRyHdxPu3-5ZwLKKB2mxIhnpOvpnoYhLi2T_R-nmdF5XILLj5Zg75CvOM9bd2butYG9-JszohfFgj/s320/Bankruptcy2-775860.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5565897411090671810" /></a></p><div class=WordSection1><p><b><i>With 1.6 million Americans expected to file for Bankruptcy this year, we know that at least these 1.6 million and very likely many more researching the bankruptcy option have been asking the same basic questions. <span style='color:#943634'>“What can I protect?” “What will be left?”<o:p></o:p></span></i></b></p><p><b><i>A recent article in the Wall Street Journal Digital Network addressed these very questions. My colleague in Nevada, <a href="http://www.sundvicklegacycenter.com/">Lizette Sundvick</a>, offers a summary commentary on this article. <o:p></o:p></i></b></p><p>Some may opine that we are climbing out of the recession, but the effects are still wearing on us. According to estimate by the American Bankruptcy Institute, more than 1.6 million Americans are expected to file for Bankruptcy this year, with 42% of filers citing “job loss” and another 65% citing “income reduction” as the determining factor. Against this backdrop, it’s unfortunate that bankruptcy hits responsible persons the hardest because they likely have the most to lose. If you are filing this year, then you may have a great deal you wish to protect. I thought I’d share some tips from a recent article on<strong> <a href="http://www.smartmoney.com/personal-finance/debt/filing-for-bankruptcy-what-can-you-protect/"><span style='font-weight:normal'>SmartMoney</span></a></strong> about <u>what you can protect.</u><o:p></o:p></p><ul type=disc><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l1 level1 lfo3'><strong>A Home</strong>: The protection afforded your home depends on your state of residency. In addition, different states offer different acreage allowances for city and rural properties. Beyond that, the equity you have in your house also can be important to protect, because most states have an exemption allowing a certain amount of that equity to remain with the homeowner in the event that the home is sold by the bankruptcy trustee.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l1 level1 lfo3'><strong>Tax-Exempt Retirement Funds</strong>: These are usually safe, and IRAs usually can be protected up to $1.17 million per person. Don’t, however, try to dump other assets (i.e., from investments that are not protected) into the retirement fund. This is a no-no.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l1 level1 lfo3'><strong>A Car</strong>: Trying to retain the car is similar to retaining the house, since your level of protection depends on the laws of your state of residency. If the value of the car is below the exemption limit, and it is owned by the filer, then it can be kept. Otherwise, equity up to the exemption can go to the filer in the event of sale. Of course, in the 16 states that allow the federal “wild-card” exemption, the rest of the value of the car may be covered and the car itself retained, but this itself depends on state laws and exemptions.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l1 level1 lfo3'><strong>Life Insurance Policy</strong>: If the policy is term-life insurance, then it is generally safe. Whole-life policies are generally regarded as investment vehicles, however, and in that case it will depend on state exemption levels.<o:p></o:p></li><li class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;mso-list:l1 level1 lfo3'><strong>College Savings</strong>: If college savings are held in a 529 plan or a Coverdell account, there are a couple of factors you need to know. If the account is only 2 years old, it is only protected up to $5,000. However, if the account is older than 2 years, it will be safe for so long as the beneficiary is not also the filer.<o:p></o:p></li></ul><p>Generally speaking, the biggest factors are the state-specific exemption levels and allowances. Be sure you obtain competent professional advice to protect your interests (and stay out of hot water).<o:p></o:p></p><p><b><i>If you're worried about the future and how you can guard against economic fallout, we can give you some reassurance. Give me a call to discuss your options. If you have a question or two, please submit as a comment to this blog post, and I’ll respond in the comment thread or address in a fresh blog post. <o:p></o:p></i></b></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-53719891667644502152011-01-06T11:19:00.001-08:002011-01-06T11:19:11.353-08:00"My Mother took care of me, so I'm going to take care of her."<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEics0F7JO1SCVy-3BcI2ctHLPCaG-KznS9yhOe6GFcEVwHUbm-9X_2uDr0xcDHKJ7jHNRL5zC9tIi8hTMF4UG2Hs4m5sm54MVOFHTfo9FBDOdIe2zp9vc_eJl5c0WCbXO-64KG-39zRrxUY/s1600/Pooled+Trust-751354.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEics0F7JO1SCVy-3BcI2ctHLPCaG-KznS9yhOe6GFcEVwHUbm-9X_2uDr0xcDHKJ7jHNRL5zC9tIi8hTMF4UG2Hs4m5sm54MVOFHTfo9FBDOdIe2zp9vc_eJl5c0WCbXO-64KG-39zRrxUY/s320/Pooled+Trust-751354.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5559154631785740882" /></a></p><div class=WordSection1><p><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>I’m often asked the question, “What are the options for a baby boomer with aging parents?” I was pleased to see this posting by my fellow Wealth Counsel member <span class=fn>Suzann Beckett practicing in West Hartford, CT</span><span class=post-authorvcard> . She </span>offers one answer for the many baby boomers facing aging parents wishing to remain in their homes but lacking the financial means. <o:p></o:p></span></b></p><h2><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Medicare benefits without Life of Poverty <o:p></o:p></span></i></h2><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The New York Times recently ran an outstanding article, detailing the basics of Pooled Trusts. Most American's are not familiar with the term, or the tool – but thanks to the Times, a much larger audience had the opportunity to read about a means of caring for aging family members, while intelligently keeping the wolf away from the door. <o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The unfortunate reality for many of us is that a time may come when we can no longer manage to personally provide appropriate care for a loved one in our own home, or in their own home for that matter. But at the same time, we may not have the financial capacity to afford private care providers that would be able to fill the gap. <o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Pooled Trusts are designed to bridge that void. <o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Rather than reiterate the content of a well written and very informative piece, I will simply recommend that anyone with an elderly family member read this piece, if for no other reason than to gain some basic insight into an option that may be available and viable, in certain circumstances. <o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>You can find the story on the Internet at: <a href="http://www.nytimes.com/2010/11/05/business/businessspecial5/05TRUST.html?_r=3&adxnnl=1&src=twrhp&adxnnlx=1289307765-CdcouVKW+F0EwVbdadQHMQ">http://www.nytimes.com/2010/11/05/business/businessspecial5/05TRUST.html?_r=3&adxnnl=1&src=twrhp&adxnnlx=1289307765-CdcouVKW+F0EwVbdadQHMQ</a><o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>As a woman who has faced these issues in my personal life, with my own family members, I am intimately aware of the emotional and financial drain that advancing age and health issues can impose on a family. In order to deal with these issues to the best of our ability, we need to be aware of our options, and informed regarding the pros and cons of each of those options. This story is a good step in the right direction on that count. <o:p></o:p></span></i></p><p><i><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>I am so pleased the New York Times published Tara Siegel Bernard's excellent article on this very important topic. <o:p></o:p></span></i></p><p class=MsoNormal><span class=post-authorvcard><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>This is good information on one way that baby boomers can prevent their aging parent(s) from going into a nursing home. If this topic of “pooled trusts” is something that you would like to know more about, I am available to meet with you. </span><o:p></o:p></b></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-5634072227690869192010-12-16T12:14:00.001-08:002010-12-16T12:14:18.348-08:00The Tax "Deal" - the Forecast is Dark Clouds on the Horizon<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ4UaSq8YQkYN9ZWSrb6UUuQ4gVGTYnLyfkVnOqqFhGbwaeVBvOLSEeqkfIzbCrSZDLgr8KdSZbhY5WcHz4TZcHdZhukIqfIWSgBxU5m8_uBddRT9d2t0lvDz_DDWornijuh_0DYc0O2dU/s1600/The+Tax+Deal-758349.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZ4UaSq8YQkYN9ZWSrb6UUuQ4gVGTYnLyfkVnOqqFhGbwaeVBvOLSEeqkfIzbCrSZDLgr8KdSZbhY5WcHz4TZcHdZhukIqfIWSgBxU5m8_uBddRT9d2t0lvDz_DDWornijuh_0DYc0O2dU/s320/The+Tax+Deal-758349.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5551376050037470994" /></a></p><div class=WordSection1><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>My fellow member of WealthCounsel, Richard Wohltman of Alexandria, VA, posted this relevant commentary on the Tax “Deal” currently being ushered through Congress. </span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>There has been a lot of talk this month about the "deal" to extend the Bush tax cuts. That "deal" also includes a substantial increase in the amount that can pass to your heirs without paying any federal estate tax. The 'exemption amount' will be increased to $5,000,000 per person. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>The stated reason for that increased exemption amount is to help 'small' business owners and family farmers pass the business or farm to their heirs without having to pay estate taxes. It also means that all but a very limited number of multi-millionaires will have to file and pay federal estate tax.<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Dark Clouds are Forecast.</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>There really are dark clouds on the horizon even if the "deal" is passed by Congress before the end of the month. The increase in the exemption is going to add billions of dollars to the federal deficit. The Treasury is going to have to borrow that money and we are all going to have to pay taxes or have benefits reduced just to pay the interest on those loans. And the day will come when the loan will have to be paid in full. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>There is a more pressing problem, however, for estate planning. The "deal" only lasts two years! At the end of 2012 we will find ourselves right back where we are now -- facing a stupendous increase in the number of estate tax returns and tax payments when the exemption amount falls to just $1,000,000 starting January 1, 2013. The problems from the end of the Bush tax cuts (and the increased exemption amount from the "deal") return in 2o13. The uncertainty of how all of the estate and gift taxes will be interpreted once the large exemption disappears is the big grey cloud on the horizon for estate planners. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Estate planning attorneys have been hoping for some stability in estate tax policy so plans can be designed based on a clear expectation of how estate taxes will be calculated when death occurs. That stability disappeared with the Bush tax cuts. Estate planning attorneys all knew we were faced with the potential return to the 'old rules' with only a $1,000,000 exemption in 2011 and had to plan for the return of the middle class taxable estate. The same lack of stability continues since we can only look at what happens at the end of the next two years.<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>What does all this mean to you?</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Don't think that the "deal" will make your estate planning easier just because you don't have Five or Ten Million Dollars. The vast majority of our clients require extra tax planning if the exemption returns to 1 Million Dollars.<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Your estate planning lawyer must assume that the lower exemption will return and is forced to include options to address the substantial estate tax liability that will return in 2013. Your estate plan will continue to require more complication just to protect your family and your business with the automatic termination of the "deal" in 2013.<o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Where's the silver lining?</span></b><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Just remember, if there is a silver lining in every grey cloud, that doesn't mean that the grey cloud is gone. Don't let the proposed silver lining blind you to the limits inherent in any "deal" that lasts only two years!<o:p></o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-46443636395957900412010-12-07T14:33:00.001-08:002010-12-07T14:33:20.593-08:00The Federal Estate Tax Lapsed for 2010<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYwGeGEvw2NC7vkXrMb9j_y98_OnVIyRPllDNVMRnrgp_m_4bF_-njwzTjCx0mFuQZrvy7km7hZHN3KjaUQEA0D0MYaQHsAEBVx9_l_iB3Du8yphKnX8KQbkyOQiZtlW07PkahZoOKeWxz/s1600/obama+by+Joshua+Roberts+of+Reuters2-700595.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjYwGeGEvw2NC7vkXrMb9j_y98_OnVIyRPllDNVMRnrgp_m_4bF_-njwzTjCx0mFuQZrvy7km7hZHN3KjaUQEA0D0MYaQHsAEBVx9_l_iB3Du8yphKnX8KQbkyOQiZtlW07PkahZoOKeWxz/s320/obama+by+Joshua+Roberts+of+Reuters2-700595.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5548072112987683218" /></a></p><div class=WordSection1><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>The federal estate tax lapsed for 2010, and barring no action by Congress it was scheduled to return on Jan. 1 with an exemption of $1 million per person and a maximum rate of 55 percent. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>I have good news to share with you. The long wait for action to address the unknown status of the federal estate tax may be approaching an end. In a December 6, 2010 online posting by the New York Times, they reported that <a href="http://topics.nytimes.com/top/reference/timestopics/people/o/barack_obama/index.html?inline=nyt-per" title="More articles about Barack Obama.">President Obama</a> announced a tentative deal with Congressional Republicans on Monday. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>An excerpt of the article appears below, and a link to the full article is included. The accompanying photo by Joshua Roberts of Reuters appeared with the article. <o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>Mr. Obama made substantial concessions to Republicans. In addition to dropping his opposition to any extension of the current income tax rates on income above $250,000 for couples and $200,000 for individuals, he agreed to a deal on the federal <a href="http://topics.nytimes.com/your-money/planning/estate-planning/index.html?inline=nyt-classifier" title="More articles about estate planning.">estate tax</a> that infuriated many Democrats. The deal would ultimately set an exemption of $5 million per person and a maximum rate of 35 percent — a higher exemption and far lower rate than many Democrats wanted.<o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><a href="http://www.nytimes.com/2010/12/07/us/politics/07cong.html?pagewanted=1&_r=1&nl=todaysheadlines&emc=a2">http://www.nytimes.com/2010/12/07/us/politics/07cong.html?pagewanted=1&_r=1&nl=todaysheadlines&emc=a2</a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>But the NY Times article also cautioned that the deal is not supported by all parties. So resolution may be within sight, but it is not yet a finalized deal. <o:p></o:p></span></p><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>“The House Democrats have not signed off on any deal,” Representative Chris Van Hollen of Maryland, who has been representing House Democrats in formal negotiations on the tax issue, said Monday night. “We will thoroughly review and discuss the proposed package in the caucus.” <o:p></o:p></span></i></p><p class=MsoNormal><i><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>Some senior Democrats said an agreement by Mr. Obama to accede to Republican demands on the estate tax could lead to a revolt among lawmakers.<o:p></o:p></span></i></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>With this positive news in the air, it may be time to schedule a meeting to adjust your estate plans to maximize the impact of this likely change in the federal estate tax law. Call me for an appointment, or leave a comment with a question below. <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-45172387621828723702010-11-29T11:01:00.001-08:002010-11-29T11:02:00.057-08:00NEWS FLASH: Yankees Beat the Miami Dolphins!<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHAhGXV3Bq_DZYhg4mZP5__CfqhCTE_VFz6JAkIXDUaVNOibCKRog9zT1bGgEy9UQYG5FuNM_lX6nvO6fD3GKhD4-9trAJm7nzlPU8A0IO7I4hbn9ewMPxOQxPrLsanOWPI7-GjI11Xo9l/s1600/Miami+Dolphin+logo-720058.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHAhGXV3Bq_DZYhg4mZP5__CfqhCTE_VFz6JAkIXDUaVNOibCKRog9zT1bGgEy9UQYG5FuNM_lX6nvO6fD3GKhD4-9trAJm7nzlPU8A0IO7I4hbn9ewMPxOQxPrLsanOWPI7-GjI11Xo9l/s320/Miami+Dolphin+logo-720058.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5545048967619496914" /></a></p><div class=WordSection1><h2><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";font-weight:normal;font-style:normal'>Yes I know, that's impossible. But the heirs of George Steinbrenner, who died recently at the age of 80, certainly came out ahead of the heirs of Joe Robbie, the former owner of the Miami Dolphins who died in 1990.<br><br>Steinbrenner's timing couldn't have been better. His heirs will inherit the team without having to pay any estate taxes on a $1.1 billion estate. See “How Steinbrenner Saved His Heirs a $600 Million Tax Bill” from the Wall Street Journal <a href="http://blogs.wsj.com/metropolis/2010/07/13/how-steinbrenner-saved-his-heirs-a-600-million-tax-bill/?mod=rss_WSJBlog&mod=WSJ_NY_NY_Blog">here</a>.<br><br>Contrast this with Joe Robbie. When he died in 1990 the heirs had to sell the football team and the stadium at fire-sale prices in order to pay a whopping $47 million estate tax bill. <br><br>Unlike most owners Joe Robbie built his own stadium entirely with private capital. The stadium had to be sold along with the team and it no longer bears Joe Robbie’s name. For more details see “</span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif";font-weight:normal'><a href="http://compassamg.wordpress.com/2010/07/23/yankees-vs-dolphins-steinbrenners-final-victory/" title="Permanent Link to Yankees vs. Dolphins: Steinbrenner’s Final Victory">Yankees vs. Dolphins: Steinbrenner’s Final Victory</a>”</span><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><o:p></o:p></span></h2><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><br>You could say, "Yeah, but his heirs are still wealthy." True. But it really isn’t just about money. Robbie's intentions were defeated; his family was removed from the success he worked so hard to build from his very modest depression-era beginnings. Estate planning affects the heart as well as the pocket book.<br><br><em><b><span style='font-family:"Verdana","sans-serif"'>(What happens to the ultra-wealthy can happen to any small business owner…often with more devastating results. I’m always available to share my experience and knowledge to create a better estate plan.)</span></b></em></span><em><b><o:p></o:p></b></em></p><p class=MsoNormal><em><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'><o:p> </o:p></span></b></em></p><p class=MsoNormal><em><b><span style='font-size:10.0pt;font-family:"Verdana","sans-serif"'>My thanks to my associate Greg Turza who practices in the state of Illinois for this clever commentary on estate planning. </span></b></em><o:p></o:p></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri","sans-serif"'><o:p> </o:p></span></p></div>RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-15468288042587800022010-11-08T17:04:00.000-08:002010-11-08T17:05:00.227-08:00Benjamin Franklin does estate Planning<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibmN71r33_77dc9Z1iophO5bYOiE7tETjHJL5MDwmFzCL1JJQBvJY1GmY4jNyNfGTsgc7USnV8iuCnjaI2ZOuhvGGtONo9hV9jFg7hvWg1CmL0f-ku_2c6D0vFL_3aw3LkCadbSvOrTMl_/s1600/Benjamin+Franklin3-700228.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibmN71r33_77dc9Z1iophO5bYOiE7tETjHJL5MDwmFzCL1JJQBvJY1GmY4jNyNfGTsgc7USnV8iuCnjaI2ZOuhvGGtONo9hV9jFg7hvWg1CmL0f-ku_2c6D0vFL_3aw3LkCadbSvOrTMl_/s320/Benjamin+Franklin3-700228.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5537349723221970066" /></a></p><div class=WordSection1> <p class=MsoNormal style='line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>Benjamin Franklin is largely known today for his key roles in the American Revolution, the formation of the United States, and his diplomacy with France. But Franklin was also a very successful businessman. Starting with absolutely nothing, he built a substantial fortune. And he capped it off by demonstrating keen skills developing his estate plan. His approach to estate planning is addressed in a posting by my WealthCounsel colleague, Suzann Beckett who practices in Connecticut. I hope you enjoy this quasi history experience while admiring Ben Franklin’s adroit estate planning skills. <o:p></o:p></span></b></p> <p style='mso-margin-top-alt:12.0pt;margin-right:0in;margin-bottom:2.25pt; margin-left:0in;line-height:16.8pt'><span style='font-size:10.0pt;font-family: "Verdana","sans-serif";color:black'><a href="http://suzannlbeckett.blogspot.com/2010/09/estate-planning-franklin-way.html"><b><span style='color:black;text-decoration:none'>Estate planning, the Franklin way</span></b></a> <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>The subject of</span><span style='font-size:10.0pt;line-height: 140%;font-family:"Verdana","sans-serif";color:black'> </span><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"'><a href="http://en.wikipedia.org/wiki/Benjamin_franklin">Ben Franklin</a><span style='color:black'> </span><span style='color:black'>came up the other day in conversation. More specifically, the subject of Ben Franklin's visionary approach to estate planning, came up during a discussion of how the average person can make the most of their wealth for posterity. <o:p></o:p></span></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Benjamin Franklin was many things. Born into humble circumstances, Mr. Franklin very literally ran away from home, then followed up his running away by working, innovating, persevering, and struggling to ultimately become one of young America's wealthiest and most respected citizens. He knew a thing or two about math and the compounding of interest, too.<o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>For those who are truly curious, a version of</span><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'> </span><span style='font-size:10.0pt;line-height:140%;font-family: "Verdana","sans-serif"'><a href="http://sln.fi.edu/franklin/family/lastwill.html">Benjamin Franklin's Last Will and Testament</a><span style='color:black'> </span><span style='color: black'>is available online, from the </span><a href="http://en.wikipedia.org/wiki/Franklin_Institute">Franklin Institute</a><span style='color:black'>. </span><span style='color:black'>Included is a codicil to the original Will, that should give anyone pause. Franklin's significant wealth is apparent, as is evidenced by the extraordinary number of homes, land, and valuables he details in his Will. But the relatively minor sum of one-thousand pounds sterling mentioned in the codicil, which would be equivalent to roughly $4,000 at the time – is particularly impressive for those of us who would like to make an impact on the generations to follow, even if we do not have the financial capacity to astound the neighbors at the moment. <o:p></o:p></span></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Franklin specified that the money should be held in trust. Two trusts, actually. One-thousand pounds sterling was provided to the city of Boston, where Franklin was born, and one-thousand pounds sterling was given to Philadelphia, the city that is most commonly associated with Franklin as his home. Both funds were specified to be held and invested, in a specific manner, and maintained for two-hundred years. A significant amount of time, certainly. But Franklin wasn't looking for returns that could be looked down on as small potatoes. He was looking to shake the world. And he did. He has. He continues to, and will for years to come.<o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>You see, Franklin's $4,000 investment has grown to millions of dollars in the interim. The funds he put away for posterity have done exactly what he hoped they would do. And through careful management, they have continued to grow, and expand in value through good times and bad.<o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Now admittedly, most of us don't think two-hundred years into the future – and most of us don't have massive estates like Mr. Franklin had. But almost all of us can find a way over the course of our working lives to put away a few dollars in the hopes that we can make the lives of our children and grandchildren more comfortable and satisfying than ours may have been. <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>If Franklin's Will proves anything, it is a tangible demonstration of how a well intentioned gift, well managed, well planned, and well executed, can change the lives of generations to follow. <o:p></o:p></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>It's something to think about, isn't it?<o:p></o:p></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>Benjamin Franklin exercised far more farsightedness in his estate plan than most of us feel the need for. But Franklin did reveal the powerful benefits to be gained from well thought out plans. His clever employment of the principal of compounding into his estate plan is admired to this day. Bravo to Benjamin Franklin – for executing an estate plan that has spanned several centuries. I am available to assist you with an estate plan to span a decade or two, and I would enjoy the challenge of assisting you with an estate plan for several centuries……if you wished to follow the lead of Benjamin Franklin. </span></b><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'><o:p></o:p></span></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-11388022099726285412010-10-15T10:27:00.001-07:002010-10-15T10:27:33.372-07:00Disabled and no Medicare to help!<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVTiXzL302ba4HPb9FRK7f_Fwdww9TO4T0lBj0fPu256qRzq14pFSZe0k665S2_XneyqAvY4wcK5xytWcDXxborGccsS1km3mjd7k5QiyBXPKN6NQ8I3qzJ8YisDGqy3wT4icbX-JtqOWq/s1600/Disabled-and-no-medical-help-753373.gif"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiVTiXzL302ba4HPb9FRK7f_Fwdww9TO4T0lBj0fPu256qRzq14pFSZe0k665S2_XneyqAvY4wcK5xytWcDXxborGccsS1km3mjd7k5QiyBXPKN6NQ8I3qzJ8YisDGqy3wT4icbX-JtqOWq/s320/Disabled-and-no-medical-help-753373.gif" border="0" alt="" id="BLOGGER_PHOTO_ID_5528325796312769874" /></a></p><div class=WordSection1> <p><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>There is a “gap” in Medicare coverage for those who are disabled and under 65. Richard Wohltman describes his concern about this “gap” below. Wohltman and I are both members of WealthCounsel – a nationwide Community of Estate Planning Practitioners. He is located in Alexandria, VA and I find his views valuable, because he is frequent lecturer on Estate Planning and related issues. And he is also a contributing author of <i><span style='color:#333399'>Ways & Means - Maximize The Value of Your Retirement Savings. </span></i><o:p></o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><i><span style='color:black'><o:p> </o:p></span></i></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><i><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>"More than 50 million people in the United States have disabilities, a number that is growing rapidly as the population ages. Experts say disability will soon affect the lives of most Americans."</span></i></span><span class=apple-style-span><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif";color:black'> </span></span><span class=apple-style-span><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif"'><a href="http://www.patriciaebauer.com/">Patricia Bauer</a><span style='color:black'>. </span></span></span><o:p></o:p></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>If you are unlucky enough to suffer a disability when you are under 65, you may find that Medicare is the only way your health care costs can be paid. If you or a loved one becomes disabled and are unable to work, you may be extremely frustrated to discover that there is a long delay before you are qualified to receive Medicare assistance. The general waiting period is two years after they start receiving Social Security Disability Income.</span></b></span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'><o:p></o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>Andy Hook is a respected elder law attorney in Virginia who wrote about this dilemma in his article "</span></b></span><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif"'><a href="http://www.oasthook.com/news_sept1710_waiting_for_medicare.php">Waiting for Medicare</a><span style='color:black'>" in the September 17, 2010 edition of the </span><i><a href="http://www.oasthook.com/">Oast and Hook News</a><span style='color:black'>. </span></i></span></b><i><o:p></o:p></i></span></p> <p class=MsoNormal style='line-height:140%'><o:p> </o:p></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>"A recent Kaiser Health News article addresses the issue of Medicare and persons younger than 65 years of age who have disabilities. Under current federal rules, such persons are not eligible for Medicare until two years after they start receiving Social Security Disability Income. . . . Congress created the waiting period in 1972 when Medicare was expanded to cover persons with disabilities. The waiting period was designed to control costs and to ensure that only those with ongoing, severe disabilities received Medicare coverage. According to the Kaiser Family Foundation, approximately seventeen percent of Medicare’s 47 million beneficiaries receive disability benefits."</span></span><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>Andy notes that the waiting period is shorter for people with certain specified disabilities, many patients face extreme financial hardship during the extended waiting period. The new health care program may eventually remove barriers for patients to be eligible for private health insurance, the only answer to this unhappy situation is in Congress' hands. </span></b></span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'><o:p></o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>"</span></span><span class=apple-style-span><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"'><a href="http://www.heritage.org/About/Staff/H/Edmund-Haislmaier">Edmund Haislmaier</a><span style='color:black'>, a senior policy research fellow at the </span><a href="http://www.heritage.org/">Heritage Foundation</a><span style='color:black'>, said that eliminating the waiting period “is always going to be an issue in Congress. Some of it is money, some of it is politics, too. For members of Congress, irrespective of party or where they stand on the issue, it’s kind of all-or-nothing because if they did it for some diseases, they’re immediately going to be inundated with ‘Why didn’t you do it for us?’” Some groups, however, such as the Huntington’s Disease Society of America, are asking Congress for specific waivers from the waiting period for their diseases. They believe it may be more politically feasible to press for relief for specific diseases, because the cost of doing so would be less than the cost of across-the-board relief." </span></span></span><span style='font-size: 10.0pt;line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p></o:p></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:#101010'>You can find Andy's complete article at </span></b></span><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif";color:black'>"</span></b></span><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%; font-family:"Arial","sans-serif"'><a href="http://www.oasthook.com/news_sept1710_waiting_for_medicare.php">Waiting for Medicare</a><span style='color:black'>"</span></span></b></span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'><o:p></o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif";color:black'><o:p> </o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'>I guess we all assume that health care is something we will be able to obtain i</span></b></span><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"'>f<span style='color:black'> we are disabled. I know that I was upset after reading Andy's article. I think you will be too.</span></span></b></span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'><o:p></o:p></span></b></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><o:p> </o:p></span></p> <p class=MsoNormal style='line-height:140%'><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:#101010'>Your local elder law attorney may be able to help you find alternatives and opportunities if you or a loved one has to face this unfortunate situation.</span></b></span><span class=apple-style-span><b><span style='font-size:10.0pt;line-height:140%;font-family:"Arial","sans-serif"; color:black'><o:p></o:p></span></b></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Arial","sans-serif"'>**********</span><o:p></o:p></p> <p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The fact that my colleague, <a href="http://www.estateandtrust.com/3.htm">Richard Wohltman</a>, finds this information upsetting surely means that you may be unaware of this “gap” in Medicare coverage. Please contact me if you have questions….or please comment on this posting.<o:p></o:p></span></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-66567326445133315652010-10-06T16:28:00.001-07:002010-10-06T16:28:14.151-07:00Can a DIY Will cost you a bundle?<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho-bOWO8nOptQLdbh47M4To_YsTA0wYqFwOg2Y6SNV6wIb0IeG6TyBhW7xkHBZH2fTWDwy-r4dValMqOLlQZUlC1jV1jdEbtPRx3iDNh8wCVQHxv5JdCO_ptjNnTXoZs_xFkGhE1rJ6hyc/s1600/insert+name+here-794152.gif"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho-bOWO8nOptQLdbh47M4To_YsTA0wYqFwOg2Y6SNV6wIb0IeG6TyBhW7xkHBZH2fTWDwy-r4dValMqOLlQZUlC1jV1jdEbtPRx3iDNh8wCVQHxv5JdCO_ptjNnTXoZs_xFkGhE1rJ6hyc/s320/insert+name+here-794152.gif" border="0" alt="" id="BLOGGER_PHOTO_ID_5525078976009790722" /></a></p><div class=WordSection1> <h1 style='margin:0in;margin-bottom:.0001pt'><span style='font-size:10.0pt; font-family:"Verdana","sans-serif"'>In this age where all the information you ever wanted can be found on the internet, it is no surprise to encounter articles like the one in Forbes magazine raising concerns for those who save now on a Do-It-Yourself Will only to leave an expensive nightmare for their heirs. I enjoyed this brief commentary by my <a href="http://www.wealthcounsel.com/Consumers.aspx">WealthCounsel</a> associate, <a href="http://www.beckett-law.com/">Suzann Beckett</a>. I hope you also enjoy it. <o:p></o:p></span></h1> <h1 style='margin:0in;margin-bottom:.0001pt'><span style='font-size:10.0pt; font-family:"Verdana","sans-serif"'><o:p> </o:p></span></h1> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>Punctuation is important. For instance, consider the difference between a period and a comma. Sure you might think of one as a point of ink, as opposed to a point of ink with a tail. But if you misplace that comma and insert a period instead – that little error of grammar could just cost your heirs a legal tussle like you never dreamed was possible. <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>It's true. I swear. <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Then again, filling in the blanks can be a nightmare in disguise, too. Imagine using a DIY Will package that innocently asks you to, “Insert Name Here.” No problem, right? Well, no problem unless you attach a dollar figure to that line, and fail to include a name. You might just inadvertently have directed a substantial sum of money to, “Insert Name Here,” whomever that might be. If nobody catches the error, your heirs just might be stuck with a battle royal over what you meant to write, as opposed to what your Will actually says. <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"'><a href="http://www.deborahjacobs.com/">Deborah L. Jacobs</a><span style='color:black'> outlines these two disasters of DIY estate planning, as well as some notable others, in an intriguing column featured on Forbes.com. You can find the full </span>Forbes <span style='color:black'>story</span> <a href="http://www.forbes.com/2010/09/07/do-it-yourself-will-mishaps-personal-finances-estate-lawyers-overcharge.html">here</a><span style='color:black'>.<o:p></o:p></span></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Jacobs makes some excellent points about the importance of taking estate planning seriously, whether you are wealthy or not, famous or anonymous, a DuPont or a Miller. We all suffer the same tendency to put off the inevitable – sometimes until the inevitable beats us to the punch. <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>Anyone who even dreams that estate planning doesn't matter should read Jacobs excellent article if for no other reason than to understand better how a rancher could have lost $3.5 million in estate taxes, as a result of an effort to economize on the cost of having a will drawn up. You may also be entertained, or horrified by the story of how a simple note from the late CBS reporter, </span><span style='font-size:10.0pt;line-height:140%;font-family: "Verdana","sans-serif"'><a href="http://en.wikipedia.org/wiki/Charles_Kuralt">Charles Kuralt</a><span style='color:black'>, could have led to a legal battle that lasted 6 years. <o:p></o:p></span></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>It's a subjective question, to be sure. But it's one worth asking ourselves. Where is the real savings found, up front in the estate planning phase of life, or possibly later, assuming no legal wrangling results from using DIY legal forms and software packages? <o:p></o:p></span></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:140%'><b><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"'>The author of the Forbes article on DIY Wills is a lawyer who took a turn to writing and journalism. The Forbes article is likely a precursor to her new book that is being released soon. There are many horror stories of people who took a shortcut in their estate planning. Rather than dwell on these wills gone bad, I’d rather talk about the wills done well where I assisted people to truly plan their estates in a way that met their objectives. Call me if I can help you in pursuit of your estate planning objectives.</span></b><span style='font-size:10.0pt;line-height:140%; font-family:"Verdana","sans-serif"'><o:p></o:p></span></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-29200802396625387872010-09-24T10:24:00.001-07:002010-09-24T10:24:44.843-07:00Do It Yourself Estate Planning<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ0w99k_8c1rSz2lPocxVja5nJ_WZ7Pu_Sgtnf7xP0jVOzcfy5rNTTL4wOR2cPkKXU8s_Lp5yJf94ctDLT39OoWvCdvVGLIsycg3eJnzSGkoXIkilMKQWRt0Xp2MpyOtblYKNGEhFjgNd5/s1600/do-it-yourself-784844.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgJ0w99k_8c1rSz2lPocxVja5nJ_WZ7Pu_Sgtnf7xP0jVOzcfy5rNTTL4wOR2cPkKXU8s_Lp5yJf94ctDLT39OoWvCdvVGLIsycg3eJnzSGkoXIkilMKQWRt0Xp2MpyOtblYKNGEhFjgNd5/s320/do-it-yourself-784844.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5520532286686635698" /></a></p><div class=WordSection1> <table class=MsoNormalTable border=0 cellspacing=3 cellpadding=0> <tr> <td style='padding:.75pt .75pt .75pt .75pt'> <p style='mso-margin-top-alt:6.75pt;margin-right:0in;margin-bottom:2.25pt; margin-left:0in;line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif"'>Forbes Magazine’s September 7 issue had a thought provoking article on “Do It Yourself Wills”. My </span></b><span style='font-size:10.0pt;line-height:140%; font-family:"Verdana","sans-serif"'><a href="http://www.wealthcounsel.com/Consumers.aspx"><b>WealthCounsel</b></a><b> colleague in Montana, </b><a href="http://www.bigtimberlaw.com/"><b>Mark Josephson</b></a><b>, took the conversation one step further with the commentary he shared. I hope you find this informative.<span style='color:#555555'><o:p></o:p></span></b></span></p> <p class=MsoNormal style='margin-bottom:12.0pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'><br> </span><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"'>Josephson begins, “<span style='color:black'>My Larsson estate</span> commentary<span style='color:black'> and a recent article on Forbes.com regarding the pitfalls of do-it-yourself estate planning,</span> The <b><a href="http://www.forbes.com/2010/09/07/do-it-yourself-will-mishaps-personal-finances-estate-lawyers-overcharge.html?boxes=HomepageFAN">Case Against Do-It-Yourself Wills </a></b><span style='color:black'> got me thinking about some additional comments. I could not agree more with the overall point made in the </span>Forbes <span style='color:black'>article. I do disagree with some of </span>the details. <o:p></o:p></span></p> <p class=MsoNormal style='margin-bottom:12.0pt;line-height:140%'><span style='font-size:10.0pt;line-height:140%;font-family:"Verdana","sans-serif"; color:black'>The</span><span style='font-size:10.0pt;line-height:140%; font-family:"Verdana","sans-serif"'> Forbes<span style='color:black'> article talks about the famous Montana court case involving </span><a href="http://en.wikipedia.org/wiki/Charles_Kuralt">Charles Kuralt</a><span style='color:black'> (remember he was the famous CBS broadcaster who labeled Montana's </span><a href="http://www.beartoothhighway.com/">Beartooth Highway</a><span style='color:black'> as the most beautiful drive in America) and his handwritten love letter to his mistress. In a case that went to the Montana Supreme Court <b>FOUR</b> times, his handwritten love letter was ruled to have given his valuable Montana property to his mistress and to add insult to injury Kuralt's family had to pay the estate taxes due on the Montana property because the handwritten letter did not coordinate with the tax clause of his professionally drafted Will.<br> <br> The article reminded me of another Montana case,</span><span style='color:#1F497D'> <a href="http://scholar.google.com/scholar_case?case=12034682469458701752&q=dern&hl=en&as_sdt=800000004">The Estate of Dern,</a></span><span style='color:black'> in which case Mary and Clifford Dern, who each had children from a different marriage, bought a trust package from a non-lawyer and also attempted to amend it themselves four times </span>-- <span style='color:black'>sometimes having proper signatures, sometimes not. In the end, the children ended up suing Mary </span>with the case <span style='color:black'>ending up in the </span><a href="http://en.wikipedia.org/wiki/Montana_Supreme_Court">Montana Supreme Court</a><span style='color:black'>. I think Justice Nelson in that case summed up the whole do-it-yourself thing as best as I've ever read. He said:<o:p></o:p></span></span></p> <p class=MsoNormal style='line-height:140%'><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>Given the facts of this case, it is appropriate to make a further observation. If nothing else, our decision here should serve as a warning of the pitfalls of the "canned," "fill in the blanks," "one size fits all" trust instruments that are increasingly being sold to unsuspecting members of the public, particularly senior citizens, by salesmen, many of whom have no professional qualifications whatsoever and some of whom are little better than scam artists. ...<b><i> In truth, few areas of the law are more technical, complicated and prone to financial disaster than estate planning and trusts, nor more demanding of the sort of individually tailored advice and assistance that can best be obtained from a competent attorney and tax professional. This case, unfortunately, proves that point.</i></b> [my emphasis added]</span><span style='font-size:10.0pt;line-height:140%; font-family:"Verdana","sans-serif"'>”<span style='color:black'><o:p></o:p></span></span></p> </td> </tr> </table> <p class=MsoNormal style='line-height:140%'><b><span style='font-size:10.0pt; line-height:140%;font-family:"Verdana","sans-serif";color:black'>From his position on the bench,</span></b><b><span style='font-size:10.0pt;line-height: 140%;font-family:"Verdana","sans-serif"'> <a href="http://judgepedia.org/index.php/James_Nelson">Justice James C. Nelson</a> <span style='color:black'>of the Montana Supreme Court certainly offered a stern warning on the “DIY Wills”. The Judge’s views seem to have been formed long before the Forbes 9/07/2010 article, but his sentiments seem to parallel the Forbes article. I’d like to serve as the ounce of prevention by serving as your “competent attorney” that the Judge refers to in his above commentary. <o:p></o:p></span></span></b></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-57566647154810431722010-09-15T15:35:00.001-07:002010-09-15T15:35:25.442-07:00Estate Planning Traps<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsOTjzOOcjGUjZqdndFkBctX708a5GbMsbNl5nMDAG95XA_eB_HVXFWCSf0o4GYLl1dYxkr2S_M4MxGufdlMIV1gtN-7jB27Zr5FMRkKNHI31sl26TVtx2VaGMEZpeAEXAgwsxFA0knq6N/s1600/Estate+Planning+Traps-725443.png"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgsOTjzOOcjGUjZqdndFkBctX708a5GbMsbNl5nMDAG95XA_eB_HVXFWCSf0o4GYLl1dYxkr2S_M4MxGufdlMIV1gtN-7jB27Zr5FMRkKNHI31sl26TVtx2VaGMEZpeAEXAgwsxFA0knq6N/s320/Estate+Planning+Traps-725443.png" border="0" alt="" id="BLOGGER_PHOTO_ID_5517272575642826130" /></a></p><div class=WordSection1> <p class=MsoNormal><b><span style='font-size:10.0pt;line-height:115%; font-family:"Verdana","sans-serif"'>This is a helpful bit of information that my fellow estate planning colleague, Mark Josephson, posted from his law offices in Montana. He’s relatively new to blogging, but I think he’s done well with this information in a summary format. I am reposting his information to share with you. <o:p></o:p></span></b></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>I seem to be on a roll this morning over the pitfalls of do-it-yourself estate planning. Here is list of Common Pitfalls and Traps I've had in my basic estate planning handout for clients:<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>1. <span style='color:#1F497D'> </span>“I’m too young to worry.” Reality: If you die young with a spouse and/or children you need to protect your loved ones. Also, by planning early you have the power of leverage/appreciation.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>2. <span style='color:#1F497D'> </span> “My estate is too small.” Reality: If not planned, a smaller estate can suffer greater percentage shrinkage than a large estate due to increased administration costs necessary in a non-planned estate.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>3. <span style='color:#1F497D'> </span> “I’m leaving everything to my spouse, so estate tax doesn’t matter.” Reality: Leaving everything to a spouse just postpones tax and wastes the dead spouse's estate tax “coupon”: Wasting a coupon meant wasting $1,575,000 in tax savings in 2009.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>4. Believing one size fits all. Corollary: You get what you pay for.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>5. Not paying attention to who you have on what and how: Beneficiaries of life insurance, annuities and retirement accounts. Wrong people get the wrong property.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif";color:black'>6. Failing to consider trusts as vehicles to pass wealth during life or at death. </span><span style='font-size:10.0pt;line-height:115%;font-family:"Verdana","sans-serif"'><a href="http://en.wikipedia.org/wiki/United_States_Trust_Law">Convenience trusts</a><span style='color:black'>, irrevocable life insurance trusts, “Crummey” power trusts, intentionally defective</span><a href="http://en.wikipedia.org/wiki/United_States_trust_law"> grantor trusts</a><span style='color:black'>, </span><a href="http://en.wikipedia.org/wiki/GRAT">GRATs</a><span style='color:black'>, QPRTs (for cabins or vacation homes).<o:p></o:p></span></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>7. Not planning for your disability; <span style='color:black'>not avoiding a “</span><a href="http://en.wikipedia.org/wiki/no_contest_clause">living probate</a><span style='color:black'>”.</span><o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>8. Not having any will or trust, handwriting it yourself, or having them prepared without proper analysis for your situation.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>9.<span style='color:#1F497D'> </span>Too much in joint tenancy with right of survivorship; disproportionate ownership by husband & wife. Joint tenancy is convenient but it can ruin an estate plan if not used correctly. <o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>10.<span style='color:#1F497D'> </span>Failing to name guardian of minor children.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>11. Failing to prepare business succession plan.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>12. Failing to plan for estate liquidity and/or tax payment alternatives.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>13. Having too little life insurance. If you, the money maker dies, what is your family going to live on? Often life insurance is the only affordable way to solve the problem.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>14. Not realizing life insurance you own on your own life is included in taxable estate for federal estate tax. While the proceeds may be income tax free, they are not necessarily estate tax free if you own a policy on your life.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>15. Not considering lifetime gifting program: Children, grandchildren, charitable techniques.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>16. Not considering alternative operating entities.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>17. Procrastination: Letting indecision lead to inaction. Usually, doing something is better than doing nothing. See my post below on How to Avoid Vapor Lock<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>18. Lack of Communication. While your estate is private, you should discuss matters with those you intend to have care for you or handle your affairs after your death. Often better planning happens when the younger generation is included and aware of what's going to happen. <o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>19. Not keeping estate plan up to date. You should review your estate plan at least every few years. <o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>20. Believing a magic bullet exists or “This won’t happen to us.” <o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>21. BEWARE of “constitutional,” “pure,” or “common law” trust schemes. <o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'>Remember: If it sounds too good to be true, it is.<o:p></o:p></span></p> <p class=MsoNormal><span style='font-size:10.0pt;line-height:115%;font-family: "Verdana","sans-serif"'><o:p> </o:p></span></p> <p class=MsoNormal><b><span style='font-size:10.0pt;line-height:115%; font-family:"Verdana","sans-serif"'>I enjoy having Mark as a colleague. For your information Mark does good work, and his firm, <a href="http://www.bigtimberlaw.com/">Josephson Law Firm</a>, has received the highest rating through Martindale-Hubbell and is listed in the Bar Register of Preeminent Lawyers. Additionally, Mark Josephson has recently been selected by his peers for inclusion in the 2010 edition of The Best Lawyers in America.® <o:p></o:p></span></b></p> <p class=MsoNormal><b><span style='font-size:10.0pt;line-height:115%; font-family:"Verdana","sans-serif"'>If you have questions about any points Mark makes in this post, please leave them as a “comment” below, or call my office.<o:p></o:p></span></b></p> <p class=MsoNormal><o:p> </o:p></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-44387558267532384442010-09-01T12:06:00.001-07:002010-09-01T12:06:09.536-07:00"Dragon Tattoo" Estate Drags On<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilDIcXrqAabbG17TiTp0zkNpLzA0WHyDu4em3586DiQZ0VwR144BTbJSQ25a3p6D3UK-QeNWkRVu53TCfDA8dKBqwz1u5WcaBkXm55syGiL2f13IURDeMyv8BgbXDBG6WhbLdqu_tnowyL/s1600/Thegirlwiththedragontattoo-769537.jpg"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEilDIcXrqAabbG17TiTp0zkNpLzA0WHyDu4em3586DiQZ0VwR144BTbJSQ25a3p6D3UK-QeNWkRVu53TCfDA8dKBqwz1u5WcaBkXm55syGiL2f13IURDeMyv8BgbXDBG6WhbLdqu_tnowyL/s320/Thegirlwiththedragontattoo-769537.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5512023458738734594" /></a></p><img src="cid:image001.gif@01CB2124.D14CED50" v:src="cid:image001.gif@01CB2124.D14CED50" v:shapes="_x0000_Mail" width=0 height=0 class=shape style='display:none;width:0;height:0'> <div class=WordSection1> <p><b><span style='font-family:"Verdana","sans-serif";color:windowtext'>A recent post by fellow estate planning attorney, Greg Turza offered an interesting commentary illustrating the need to clearly identify who your heirs are. I hope you find this an interesting story about this famous author and his death without a will. <o:p></o:p></span></b></p> <p><span style='font-family:"Verdana","sans-serif";color:windowtext'><a href="http://en.wikipedia.org/wiki/Stieg_Larsson">Stieg Larsson</a>, the author of the best selling novel <a href="http://en.wikipedia.org/wiki/The_Girl_with_the_Dragon_Tattoo">“The Girl with the Dragon Tattoo”</a> (now a movie), died in 2004 without a will. His heirs are still fighting it out with Larsson’s live-in girlfriend of 32 years. She and Larsson never married which leaves Larsson’s heirs as the sole beneficiaries of his estate.<o:p></o:p></span></p> <p><span style='font-family:"Verdana","sans-serif";color:windowtext'>Swedish law is the same as many states on this issue. If you die with no spouse and no children your heirs are your siblings and your parents. In Larsson’s case this means his father and his brother. Apparently, the basis for the girlfriend's claim is that she was involved in the editing of his novels. For more details see the story <a href="http://www.google.com/hostednews/afp/article/ALeqM5hntysg5CJGj-DHMas_F4a9NST-Ww"><span style='color:windowtext'>here</span></a>.<o:p></o:p></span></p> <p><span style='font-family:"Verdana","sans-serif";color:windowtext'>You may be surprised to see who your “heirs” are if you died without a will. It depends on the relationships you have by blood or marriage who survive you. To determine who your heirs are under our state laws, you might want to spend a quick hour with me to get up to speed on this.<o:p></o:p></span></p> <p><span style='font-family:"Verdana","sans-serif";color:windowtext'>One other interesting aspect of the case is that <a href="http://en.wikipedia.org/wiki/Millennium_Trilogy">all three of Larsson’s novels</a> were published after he died so the value of his estate at the time of his death was probably nil. But as it turns out, even if he had great wealth at the time of his death Sweden repealed its estate tax in the same year of his death, 2004! If only the United States would follow suit.<img border=0 width=1 height=1 id="_x0000_i1028" src="cid:image002.gif@01CB2124.D14CED50"></span><span style='font-family:"Verdana","sans-serif"; color:#1F497D'><o:p></o:p></span></p> <p><b><span style='font-family:"Verdana","sans-serif";color:black'>If Steig Larsson had spent an afternoon with me, he would have avoided many of these problems. And the lives of his heirs would have been considerably less stressful. If you want to avoid Steig Larsson’s fate, please contact me, and let’s meet. If you’d like to read Larsson’s trilogy, you can find it here:</span></b><b><span style='font-family:"Verdana","sans-serif";color:purple'> </span></b><b><span style='font-family:"Verdana","sans-serif";color:#1F497D'><a href="http://www.amazon.com/Stieg-Larssons-Millennium-Trilogy-Bundle/dp/0307594777">Millennium Trilogy</a></span></b><b><span style='font-family:"Verdana","sans-serif"; color:purple'>. </span></b><b><span style='font-size:11.0pt;font-family:"Georgia","serif"; color:purple'><o:p></o:p></span></b></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0tag:blogger.com,1999:blog-7070629611075027809.post-84766418458305462262010-08-12T14:51:00.001-07:002010-08-12T14:51:12.788-07:00ILL WILL calls for a WILL with special terms<p class="mobile-photo"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFB7-4VqvcBRZEm7Qs6WLS_nPDZsLPF6esceSQMW7bDazMCKmjZF9zvimKXPVeDjU5IJ8K3FefIL0Mylu7qEz2WUBxUyF4m9DJyusn4YLGAoV_KYRBfYHu4jWUuUymfRUMwpczmp7EPvrb/s1600/Ill+will+will-772789.JPG"><img src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjFB7-4VqvcBRZEm7Qs6WLS_nPDZsLPF6esceSQMW7bDazMCKmjZF9zvimKXPVeDjU5IJ8K3FefIL0Mylu7qEz2WUBxUyF4m9DJyusn4YLGAoV_KYRBfYHu4jWUuUymfRUMwpczmp7EPvrb/s320/Ill+will+will-772789.JPG" border="0" alt="" id="BLOGGER_PHOTO_ID_5504644293683760322" /></a></p><img src="cid:image001.gif@01CB1DF5.1F116DA0" v:src="cid:image001.gif@01CB1DF5.1F116DA0" v:shapes="_x0000_Mail" width=0 height=0 class=shape style='display:none;width:0;height:0'> <div class=WordSection1> <p class=MsoNormal><b><span style='font-family:"Verdana","sans-serif"; color:black'>Not surprisingly situations occur that drive a person to disinherit a child or heir. My colleague in <a href="http://www.wealthcounsel.com/About.aspx"><span style='color:black'>Wealth Counsel</span></a>, <a href="http://www.legacylaw.com/"><span style='color: black'>Greg Turza</span></a> , offered the following comments, and I am sharing them with you. <o:p></o:p></span></b></p> <p class=MsoNormal><span style='font-family:"Verdana","sans-serif";color:black'>Has one of your children run off and joined a <a href="http://en.wikipedia.org/wiki/Religious_cult">religious cult</a> where he was taught to reject his parents? Or become a compulsive gambler--or even worse -- a criminal?<br> <br> <a href="http://en.wikipedia.org/wiki/Disinherit">Disinheriting</a> a child who has become estranged from his family is often understandable. Knowing how to do it right is critical if you want to avoid court battles over your estate when you are gone.<br> <br> Generally, children have no right to inherit under a will or trust. In Illinois you can exclude a child from your will or trust simply by omitting the disinherited child’s name. But this can lead to costly litigation.<br> <br> Suppose after you die the disinherited child claims that the omission was inadvertent? Or a product of “undue influence” by the children who were included? Costly litigation will erode their inheritance.<br> <br> To avoid this calamity the best policy is to specifically mention the disinherited child and state explicitly your decision. For example: “I acknowledge the existence of my son Michael Smith but have decided to make no provision for him as beneficiary.”<br> <br> Remember, sometimes children are disinherited simply because they are wealthy or because the other children need more help. In such a case consider as an alternative: “It is not for lack of love and affection that I have decided to make no provision for Michael Smith in this instrument.”<o:p></o:p></span></p> <p class=MsoNormal><b><span style='font-family:"Verdana","sans-serif"; color:black'>Not surprisingly, to disinherit a child or heir requires attention to detail. Knowing how to do it right is critical to preserve your estate from expensive court battles when you are gone. If this is a topic we should discuss, call me or leave a comment here. </span></b><span style='font-family:"Verdana","sans-serif";color:black'> <o:p></o:p></span></p> </div> RonFeinmanhttp://www.blogger.com/profile/08310236452453803582noreply@blogger.com0