I recently came across a New York Times article that reminded me of an all too common experience I encounter in my estate planning practice. In the article author Ron Lieber recounts his experiment with 4 different Do-It-Yourself will drafting software programs and the outcome. Although Lieber goes through the pros and cons of [...]
No creditor protection is available when property passes by joint tenancy. Creditors come in many shapes and sizes these days. Jury verdicts in even the most common accidents easily exceed insurance limits. Aging survivors are more susceptible to lapses of concentration while driving or otherwise. Why unnecessarily expose all of the survivor’s assets to [...]
In our planning process, we subscribe to the following definition of “estate planning”: To control my property while I am alive and well; to provide for me if I become disabled; and to give whatI have, to whom I want, when I want, the way I want; all at the lowest possible overall cost. We [...]
Qualified assets may be the most heavily taxed assets you own and how to turn the IRA rules to your advantage. The full value of a qualified retirement account is part of your taxable estate at rates beginning at 34% and increasing to a maximum of 55%. In addition, unless you make the proper [...]
Most of us don’t plan to fail, we fail to plan. Dwight Eisenhower said, “when preparing for battle, I always found plans useless, but planning indispensable.” If you can envision it, we can make it happen efficiently with a minimum of delay, tax, and cost. Our goal is for you to control your property while [...]
When listening to sales pitches to buy estate planning or financial products beware of “The Ring of Truth”: A broken clock is right twice a day One size does not fit all! Is it an endorsement or is it paid for advertising? FLPs, trusts, annuities, asset protection are popular seminar topics because they are [...]
“Formal Updating” refers to meeting with your attorney periodically on a set schedule to determine if any changes should be made to your trust. There are four (4) principal reasons why this is important: Changes in the law. Both the federal tax law and state laws on issues such as asset protection, beneficiary rights, [...]
Because many common estate planning issues are best handled using a trust based estate plan whose centerpiece is a revocable living trust, trust planning has become common place. Nevertheless, many people new to estate planning begin with commonly held misconceptions. Chief among those misconceptions are the beliefs that: The decision to use a revocable [...]
Conventional wisdom concerning distributions from trusts involving an income beneficiary whose interests differ from the remainder beneficiaries (“the remaindermen”) begin with a common model that says one beneficiary (usually a spouse from a second marriage) gets the income from the trust during her lifetime (“lifetime beneficiary”)and upon her death, the remaining principal passes to [...]
Family Letters, sometimes called Family Mission Statements, Family Philosophy, or Ethical Wills, emphasize the non-financial values and family culture which clients believe are important enough to mention in a final statement to their descendants and loved ones. The Family Letter can include anecdotes and stories that illustrate values that clients believe form an integral [...]