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Estate planning is a need, but too often it gets moved down to the list for tomorrow. There are many reasons people put off estate planning, like discussing death and dying. The (Memphis TN) Daily News recently published an article, entitled “Estate Planning – It’s a Need,” that explained how one person might be a great choice for guardian, trustee, power of attorney or executor. However, what if when the time comes they’ve moved or don’t want the responsibility. What does your family do then? What if a person named in the will needs to be removed later? What if estate laws change or your circumstances change and there’s a better option? There will always be changes in our lives. We may live to see our children grow to be adults when they no longer need a guardian. Then again, about that time our parents will age and may need a guardian. We switch jobs, get promoted or get laid off. Investments go up and down. Laws will change, and new legislation will be enacted. These are all important factors on the list of what needs to be addressed in estate planning. Estate planning is important and it requires significant time and effort. Without a comprehensive estate plan much or all of what you’ve achieved in your life could be lost or given to unintended beneficiaries. A good way to plan is to draft your will like you were going to die today. Once you have that done, create a review system to ensure your will remains relevant and up-to-date. Talk with a qualified estate planning attorney and let him or her guide you through the process. Effective estate planning will typically reduce your taxes and those of your estate. In addition, it can save time and expense when settling an estate. Develop a good working relationship with an experienced estate planning attorney. Instead of the surviving spouse or children searching for hours through papers and trying to determine what to do next, you should consult with an attorney who will have the documents in hand to help guide the process with minimal impact on the grieving family. Reference: The (Memphis TN) Daily News (Sept. 23, 2016) “Estate Planning – It’s a Need” #AssetProtection #Guardianship #EstatePlanningLawyer #Inheritance #Wills #TaxPlanning

One would think that big stars like Prince would have a team of high-powered advisors, compared to the average Joe and Jane. But that isn’t so, says CNBC in the recent article “Don’t make these celebrities’ estate-planning blunders.” Celebrities make the same mistakes. Here are a few: Mistake #1: No Will. Nearly two-thirds of Americans don’t have a will. This has included the likes of Abraham Lincoln, Prince, Sonny Bono, Jimi Hendrix and Pablo Picasso. Dying without a will can mean numerous potentially disastrous consequences, like your assets not being distributed to those you intended or family in-fighting. The state intestacy laws apply and they are rigid regarding who gets what share of the estate. And without specific instructions from the deceased, an estate may be fought over in court by family members who think they deserve their fair share. Mistake #2: No Current Will. Signing a will is just the beginning: you need to regularly update your estate planning documents and beneficiaries when your financial and personal situation changes. Look at singer Barry White. He was separated but not divorced from his second wife at the time of his death. As a result, his wife got everything. White’s live-in girlfriend of several years got zero. Mistake #3: No Tax Plan. Even if you’re not ultra-rich and your wealth is well below the federal estate tax threshold of $5.45 million per person this year, there may be state estate taxes. Poor planning could force your heirs to sell valuable or sentimental items because there are insufficient liquid assets to pay the tax. Joe Robbie’s family sold its stake in the Miami Dolphins and Joe Robbie Stadium to pay estate taxes. Mistake #4: No Reference to Personal Property. Comedian Robin Williams’s family has battled over his film memorabilia. And Martin Luther King Jr.’s kids fought over his Bible and Nobel medal. People forget about personal property in their estate planning, which can trigger lots of fights over who gets family heirlooms, collectibles and Dad’s Barry Manilow record collection. Be specific with descriptions. Reference: CNBC (Sept. 17, 2016) “Don’t make these celebrities’ estate-planning blunders” #AssetProtection #EstatePlanningLawyer #EstateTax #ProbateAttorney #ProbateCourt #Inheritance #Wills #TaxPlanning

The 63-year-old Wolff, who is married, is also the father of a baby with a much younger TV personality. He now is also a defendant in the new Manhattan civil suit with his estranged spouse, attorney Alison Anthoine. Wolff was under the impression that he’d settled a suit with his 93-year-old mother-in-law and his wife’s three siblings in 2011 over family real estate, as reported in The New York Post article, “Ex-Vanity Fair editor tangled in $6M legal battle with in-laws.” The settlement allows matriarch Edith Anthoine to live in the one-bedroom apartment until she dies, with access for Alison permitted two times a year. The settlement was reached after a judge found there was evidence supporting Edith’s claims that she’d swapped a four-bedroom on Lexington Avenue and 77th Street with Michael and Alison in exchange for her one-bedroom apartment. Edith claims the two later attempted to evict her, which resulted in her suffering a heart attack. Nina, Robert, Nelson and mother Edith Anthoine are suing Wolff and Alison. They claim the two stole artwork from her home, took a box of antique jewelry and refused to share proceeds from the sale of a $1.85 million Manhattan apartment. Alison, who lives apart from Wolff, visited her mother’s home in June 2015 to photograph artwork. This escalated to violence with Alison grabbing her sister’s arm and hitting her mother’s hand, according to court papers. The lawsuit says the two “have stolen millions to support their lavish lifestyles.” The papers petition the court to disbar Alison—in addition to the $6 million in damages. The family has been fighting over the multimillion dollar estate of Alison’s father, the late Columbia Law School Professor Robert Anthoine. The thrice-married attorney passed away in 2015 at 94. A will contest is still pending in Florida. “These defendants have been the ultimate recipients of their parents’ bounty, in every way, and they represent an unchecked greed that has swept the society,” the New York suit says. Wolff said he didn’t know about the lawsuit. Reference: New York Post (September 12, 2016) “Ex-Vanity Fair editor tangled in $6M legal battle with in-laws” #CelebrityEstates #estateplanning #WillContest

The federal government estimates that it will cost more than $245,000 to rear a child to an adult. That includes costs like housing, which you’d be paying regardless of whether or not you have kids, says moneyrates.com in its recent post “7 financial moves to make before your first child.” There’s no way to escape the fact that your kids are going to cost much of your paycheck. Plus, there’ll be unexpected costs like medical bills, music lessons and school events. With that in mind, here are some tips to start your family on firm financial ground before the bundle of joy arrives. Are you ready for kids? It’s the toughest job there is, and being a parent is an emotional and financial commitment. Both of you must be on board with the decision. Set your life and financial priorities. Both parents should commit to having a child and agreeing to work within their current means to meet their family’s needs. To do that, parents need to discuss and agree on a set of financial priorities. Topics to discuss include things like public or private school, funding his or her college education, annual vacations or purchasing a vacation home, child care, and housing needs. You can also survey parents on what expenses they’ve had with their kids to learn more and identify any missing items. Make a budget. A sound household budget is critical to being financially stable in preparation for a baby. Talk about family priorities in advance of creating a budget. A couple’s shared vision will shape how they plan to spend and save their money. Create an emergency fund. You should have an emergency savings account in the bank, and if you’re a single income household, maintain a fund large enough to pay for six months of expenses. A fully funded emergency fund helps you survive a financial storm. Review your insurance needs. You should look at your insurance coverage. For the immediate future, you should know how much your health insurance deductibles and co-pays will be for labor and delivery charges, as that’s what you’ll have to cover out-of-pocket. You’ll then need to add your child to your policy within 30 days of his or her birth or adoption to ensure your child will be covered. For the long-term, consider whether you have enough life insurance. A good rule of thumb is 15 to 25 times your annual income. Parents should also make sure they have disability insurance, which can bridge a financial gap in the event that a parent can no longer work. Update beneficiaries and discuss guardianship in estate planning. The birth or adoption of a child is a perfect opportunity to review beneficiary information on insurance policies, bank accounts and retirement funds. Talk to an estate planning attorney about drawing up a will and assigning guardianship of your child. Have a Plan B and a Plan C. You should know what to do in a worst case scenario. This helps couples create workable a Plan B and Plan C to put into action in the event of a crisis. A child means a serious financial commitment, but one parents can address by using these seven steps. Reference: moneyrates.com (September 7, 2016) “7 financial moves to make before your first child” #Guardianship #EstatePlanningLawyer #HealthInsurance #DisabilityInsurance #Wills #LifeInsurance

Pets are part of your family and can give you a lifetime of love and companionship. A recent 12 News Phoenix article, “What if your pet outlives you? Here are some options,” says that being a responsible pet owner means much more than the day-to-day care of your animal. You must think about possible life-changing circumstances that might leave you unable to care for your pet—as well as what happens if your pet outlives you. Pet trusts and estate plans can be created to help your pets—along with some other legal options. To set aside some money, you can create a fund inside a trust and have that money managed for the pet guardian. If you can’t find someone to take responsibility for your pet, there are several options to prevent Fluffy from going to a public county facility or shelter. For example, there is Gilbert’s Furever Friends Rescue in Arizona that helps pets who outlive their owners. They help those in need pass along their pets before they’re unable to care for them. With all of the retirees in the Copper State, it’s common for people to move to the Southwest; however, their families haven’t all moved with them. As a result, there’s no one in the retirement community to help them out. The rescue is totally nonprofit, and it aims to decrease the number of intakes and euthanasia cases in Maricopa and Pinal counties. Since it started four years ago, Gilbert’s has managed to adopt out more than 1,500 dogs and cats and has helped more than 300 families. Gilbert’s doesn’t charge for animal surrender, but pets must be vetted, spayed and neutered, and have up-to-date vaccines. A little planning can go a long way to give pet owners peace of mind. Talk to an estate planning attorney about pet trusts and estate planning. It is best to make these decisions about your pets before you have to. Be certain your pet will be cared for, even if it’s not with you. Reference: 12 News Phoenix (September 5, 2016) “What if your pet outlives you? Here are some options” #EstatePlanningLawyer #PetTrusts

After working hard and saving your money wisely, you’re ready for a successful retirement. Unfortunately, there can be bumps and hiccups with the plans. Nobody wants to be caught off-guard when it comes to saving for the future, so Forbes has published info on four retirement expenses that may catch you by surprise—and steps you can take to still come out ahead—in “Four Retirement Expenses That May Catch You By Surprise.” 1: Medical Co-Pays and Long-Term Care Expenses. The co-pays for doctors and treatment surprise many folks. They don’t realize that insurance premiums and even co-pays can change over time, and they typically don’t plan for those changes. Some people, in years where they have a large income, will often be victims of the “donut hole” of Medicare insurance premiums. These can increase to $200 per month. Anticipate that these costs will increase and budget additional savings to cover the changes. As far as long-term care, it’s a major issue. You should speak with an elder or estate planning attorney about the best way to cover long-term care expenses. Keep this in mind when planning for the future and save extra money for this expense. 2: Financial Support for Children and Grandchildren. This is more and more common. Grandparents don’t feel like their kids had it like they did when jobs were easier to find. Often grandparents want to take an active role in contributing. But if you do this, be sure that you’re not sacrificing your own lifestyle and retirement savings for their benefit. Helping out with family is terrific, but you don’t want to make a mistake that could end up costing you big time in the long run. 3: Inflation and Increases in Basic Costs of Living. The price of just about everything is rising, and we’re living longer on average. You need to think in terms of giving yourself “raises” and understand that retirement may cost double or triple what it does when you start to retire. 4: Home Expenses. We’re not talking about a new addition or a heated pool. Expenses could include the roof, the driveway, the furnace or the AC. All of these basics deteriorate over time and require money to repair or replace. One option may be to sell the home and move to a spot with less upkeep. If you decide to stay put, you need to save for basic house maintenance as the home ages. Planning for a successful retirement is no small feat. Enjoy the retirement you deserve, but be aware of potential surprises that many arise as you near retirement. You will be in a better position to have the savings you need to address those surprises head-on and have the confidence you need to retire successfully. Reference: Forbes (September 1, 2016) “Four Retirement Expenses That May Catch You By Surprise” #AssetProtection #EstatePlanningLawyer #Medicare #RetirementPlanning #LongTermCarePlanning

Many parents face this issue, says NJ 101.5 in its recent post, “When you don’t trust a child with money.” There are some children, regardless of age, who need help managing their finances. By the same token, there are also some children who are good with money who make mistakes upon inheriting a large sum of money all at once. If you think that a child needs restrictions, it’s always a good idea to look into your options with an experienced estate planning attorney. If this is done to protect the child from himself or herself, there is really nothing unfair about this type of plan. In fact, this action may actually help and not be seen as “unfair” treatment. If parents have concerns about a child’s ability to handle an inheritance, they can leave their inheritance in trust for the child’s benefit. When creating the trust, a trustee must be named. It probably shouldn’t be another child, which could create unrest in the family. Rather, you might designate a trusted family friend or advisor as trustee, or you could use a financial institution that provides trust services. The terms of the trust can be customized to the child’s needs and could stipulate that he or she receive a fixed percentage of the assets each year from the trust. This alleviates much of the discretion on the part of the trustee regarding whether or not to make a distribution. Another option is to allow the trustee to decide the amount and timing of distributions. Trusts are extremely flexible vehicles and can provide protection for beneficiaries, like a son or daughter who can’t manage his or her finances. Reference: NJ 101.5 (August 31, 2016) “When you don’t trust a child with money” #AssetProtection #EstatePlanningLawyer #Inheritance #Trusts

The answer to that question has always been an unequivocal “yes”—especially when there’s a spouse, children or stepchildren. However, there are some financial advisers that now say many Americans might not need a will. Forbes’ article, “Do You Really Need A Will?” says that a simpler life may mean you will need a less complex estate plan. However, few people’s lives are that simple. If you have minor children, you need a will to designate guardians for them. Also, a will or a trust will let you name someone to watch over assets for a disabled or elderly family member or a relative who may not be good with handling money. Whether you have prized possessions or you want to bequeath some of your estate to the local animal rescue, a will is essential. The state in which you live can make a big difference. In community property states, your surviving spouse will only inherit all your community property if all your children are also the children of that spouse. Otherwise, your one-half interest in your community estate will pass to your children. If there is any kind of animosity or resentment, they could make your spouse sell the house and send him or her packing because the kids own half the house. Without a will, a pet can wind up in a shelter after you die if no one takes responsibility for it. A will can name a responsible person and make for a smoother transition for the animal. A will can also help elderly parents avoid losing government benefits if you predecease them. If they are beneficiaries of your life insurance policy, a large payout may halt their government benefits unless you write a specific provision in your will. Reference: Forbes (August 31, 2016) “Do You Really Need A Will?” #AssetProtection #Guardianship #EstatePlanningLawyer #EstateTax #Medicaid #Inheritance #Wills #Trusts #Medicare

As you get nearer to retirement, there is more pressure to plan ahead. Kiplinger’s article, “4 Big Retirement Regrets That You Should Avoid,” says that sometimes failure is the most effective teacher. Retirees often consider their regrets and the things they’d do differently if they could. The following are a few of the more common mistakes retirees make: Quitting too soon. After all those years of working, it’s hard not to dream of retirement. This decision, however, can be more emotional than logical. If you retire too early, you cut down on the time you have to save money, and you also lengthen the time you’ll need that money. Depending too much on hope. When you retire, your amount of financial risk needs to change. Don’t keep the same investment strategy and look for big returns. In retirement, it’s not as much about how much money you can grow, but rather it’s about taking distributions. It’s not a gamble with the future. No, you’re risking money you need to live on right now. If there’s a serious downturn, you could lose much of your lifetime saving, which may not be easy to recover. Cashing in too early. Many retirees regret drawing Social Security at age 62 rather than waiting until they reached their full retirement age (or even longer)—when they would have received bigger monthly checks. Without a strategy to address taxes and other expenses, they fail to address the potential issues when it comes to sustaining the lifestyle they want on the money that remains. Spending too much, planning too little and enjoying too late. Retirees frequently overspend in the first few years when they have their good health and freedom. Unfortunately, they don’t have a plan to address their income needs, so they withdraw too much too fast to pay for that new life without considering the future. There are also some who regret not doing enough in retirement, saving every penny but afraid to do anything. Others give no thought to what they’ll do with their leisure time, and when health issues arise, they’re sorry they didn’t enjoy things more when they could. It’s a balancing act—getting out and enjoying life and making certain you have the money to pay for it. This requires planning ahead, which is far better than living with regrets. Reference: Kiplinger’s (August 2016) “4 Big Retirement Regrets That You Should Avoid” #AssetProtection #RetirementPlanning #SocialSecurity

The estate planning laws in many states are pretty straightforward for those who want to donate all or part of their estate to charity. “You can leave an unlimited amount to a charity,” says fosters.com’s article “Giving to charity an option in estate planning.” There are many reasons why individuals may elect to will or otherwise donate to a charity at their death. For example, they may not have a close family to inherit the assets in their estate, or they may be committed to an organization. What’s important to you? That is a question an experienced estate planning attorney will ask if you’re considering donating to a charity. You can leave a specific dollar figure, a percentage of the value of the estate or the whole thing. The assets the charitable organization is able to receive from an estate will vary. For instance, checking or savings account funds, as well as stocks owned by the individual who wants to donate, will not require the charity to pay taxes—provided it’s a registered non-profit. But it’s a different story for tangible assets. Furniture and personal items must go through the probate process. You need to do some advance planning now to prepare for an after-death charitable donation. In our example of money in a bank account, forms must be completed at the bank to designate the charity as the recipient of the assets upon your death. Shares of stock can be transferred to the charity by arranging it with the broker or by doing so in a will or trust. The charity would receive the increase in value of the stock. The transfer of shares means that the charity will get the value but will not have to pay taxes on the gains. You can also direct the charity in how you want the gift used, such as for a new building or for a scholarship. Many non-profits would be happy to have your inheritance—like colleges and universities, religious organizations and animal shelters. Nevertheless, an experienced estate planning attorney can help advise you regarding how the gift is best made, especially if something should happen with the charity that makes you change your mind about giving. Reference: fosters.com (August 29, 2016) “Giving to charity an option in estate planning” #AssetProtection #EstatePlanningLawyer #CharitableGiving #ProbateCourt #Inheritance #Wills

According to the regulations.gov post “Estate, Gift, and Generation-skipping Transfer Taxes: Restrictions on Liquidation of an Interest,” the Treasury Department and the IRS have proposed regulations that would amend §?25.2701-2 to address what constitutes control of an LLC or other entity or arrangement that isn’t a corporation, partnership or limited partnership. These regs would amend §?25.2704-1 to address deathbed transfers that result in the lapse of a liquidation right and to clarify the treatment of a transfer that results in the creation of an assignee interest. The changes would refine the definition of “applicable restriction.” It eliminates the comparison to the liquidation limitations of state law. It would also add a new section to address restrictions on the liquidation of an individual interest in an entity and the effect of insubstantial interests held by persons who are not members of the family. If and when finalized, the proposed regulations would do the following: Treat a lapse of voting and liquidation rights for transfers made within three years of death of interests in a family-controlled entity as an additional transfer, eliminating or limiting the lack of control and minority discounts for these transfers; Eliminate discounts based on the transferee’s status as an assignee and not a full owner and participant in the entity; Disregard the ability of most nonfamily member owners to block the removal of covered restrictions, unless he or she has held the interest for more than three years, owns a substantial interest in the entity and has the right—with six months’ notice—to be redeemed or bought out for cash or property—not including a promissory note issued by the entity, its owners or anyone related to the entity or its owners; Disregard restrictions on liquidation that aren’t mandated by law in determining the fair market value of the transferred interest; and Clarify the description of entities covered to include LLCs and other entities and business arrangements—as well as corporations and partnerships. If these end up being the final regulations, taxpayers will lose an important estate planning technique, and the tax cost of transferring interests in family-owned entities will increase. Reference: regulations.gov (August 4, 2016) “Estate, Gift, and Generation-skipping Transfer Taxes: Restrictions on Liquidation of an Interest” #AssetProtection #estateplanning #TaxPlanning

Are you an inventor, an author, artist or the owner of a closely held business? If so, you may have already taken action to secure your intellectual property rights. Certain types of intellectual property—like business ideas, visual art, published or unpublished literary and musical works, inventions, computer programs, clothing design and architecture—may be protected by federal law through copyrights, patents and trademarks. The Sabetha (KS) Herald’s article, “Estate planning for intellectual property,” suggests that, initially, it is important to determine whether the intellectual property can be passed down to your heirs. Some types of intellectual property may have renewal or termination rights, which can create questions as to when intellectual property right owners elect a second executor to handle intellectual property issues in their estates. In addition, the valuation of intellectual property is a challenge for estate planning. Estate tax impacts those with substantial assets, regardless of the type of property included in the estate. Similar to an executor being forced to sell a family vacation home to pay the estates taxes, a well-known author may worry that future publication rights to unpublished works will need to be sold in the same manner after his or her death. Proper estate planning is critical to make certain that the decedent’s wishes are carried out. One idea is a life insurance policy purchased and owned by an Irrevocable Life Insurance Trust (ILIT). If structured and administered correctly, an ILIT can provide cash at death to help satisfy obligations like estate taxes. It can give some flexibility to an estate with only a small amount of liquid assets. Estate planning for intangible assets like intellectual property has many complicated considerations. Make sure to speak with a qualified estate planning attorney to help ensure the ultimate distribution of your assets according to your wishes. Reference: Sabetha (KS) Herald (August 24, 2016) “Estate planning for intellectual property” #AssetProtection #EstatePlanningLawyer #EstateTax #Inheritance #IntellectualProperty #TaxPlanning