Most Americans have become aware of the benefits of financial planners, and of having a financial plan of their own. And now with the recent Wall Street crisis, public talk about financial plans and goals (and how yours may be weathering the storm) has become a lot more common. With all of this, it may seem that “financial planners” have been around forever. But according to Forbes.com, the financial planning profession has actually only been in existence for 40 years or less, and the idea of a “financial plan” is still a lot more nebulous and diverse than you may think.

What this means is that if you were thinking to hire a financial planner so you could promptly hand over that mysterious and confusing responsibility, you’ll have to think again. You may have to be a lot more educated and involved in choosing your financial planner than you had hoped. A financial plan is not a “one-size fits all” commodity. Not even close. Mike Patton calls has titled his article “The Elusive Financial Plan”, and says “If you were to stop 10 people in the street and ask them, ‘what is a financial plan?’ you’d likely get 10 different answers.”

If you are not financially savvy you may be starting to worry just about now. How can you possibly be expected to know which of those 10 different plans (or which of 10 different planners) may be right for you? Luckily, you don’t have to decide alone. The best way to find a good match is to consult with friends who have financial goals and values similar to your own. Another option is to ask other trusted advisors for recommendations. Estate Planners work closely with many different financial planners and firms, and will be more than happy to help you find a good fit. An added benefit to asking your attorney is that the best estate plan to have is one that has the input of all of your advisors. The better the relationship between your financial and estate planner, the better your plan will be.

The economy is reeling, stocks are plummeting, and most people want nothing more than to take their money, hide it under a mattress, and avoid any kind of financial or estate planning. Giving money away is just about the last thing on most people’s minds right now. But those with financial wisdom and experience (namely the Wall Street Journal) know that this is actually the perfect time to reassess your estate plan and to transfer wealth to your children or grandchildren with minimum (or no) inheritance tax.

Why would you want to give money away when times are so tough? Perhaps you’re like Dr. Tom Pedrick and his wife, who took advantage of depressed stock to transfer investment profits to their heirs through trusts, a move that was hugely advantageous once share prices rebounded. Or perhaps you feel strongly about helping family members whose finances may not have fared as well as your own, as Roger Dunham did. Or yet another possibility is that you’d like to invest in stock or property while prices are low, but worry about the tax implications when your investment appreciates in value.

If you aren’t ready to jump into new property or the stock market during these uncertain times, you may want to “consider how much you can accomplish with a pen and checkbook”, Anne Tergesen writes in her article, including paying “tuition and medical expenses for your grandchildren with no tax consequences.”

Whether you’d like to walk on the wild side of investing or play it safe by reducing the size of your taxable estate, there is no better time to get your estate in order than right now.

An unfortunate by-product of a financial crisis or recession is a rise in the overall divorce rate. Couples fight over finances more than almost any other topic, and when home finances are ailing many marriages tend to go the same way.

If you and your spouse are victims of this phenomenon, there are many steps that can be taken to try to gain control of the fire before it gains control over you. Options range from finding advice columns such as this one on essortment, to a visit to your financial planner to help understand your financial options, to seeing a marriage counselor. Even if you overlook the emotional toll (which obviously is no small thing), the cost of saving a marriage is much less than the cost of dissolving it.

However, even the most determined and well-intentioned couples will sometimes end up going their own ways. If that does happen, it is more important than ever to insure that you and your family (and your business if you have one) are protected.

Gary Williams, in his article in The Daily Record advises, “The immediate months after a divorce can be disorienting — even if you don’t move, you are literally starting a new household… and that means new money issues to face. This is why the weeks immediately after a divorce are a good time to revisit short- and long-term spending and planning goals.”

Williams also advises that it is “best to blend estate planning with financial planning post-divorce.” It is likely that any of your tax-deferred savings accounts (retirement accounts, life-insurance policies, etc.) name your ex-spouse as the beneficiary. It is also likely that if you created any estate planning documents pre-divorce your ex is named as your health care agent, financial agent, executor, etc. If you had an amiable divorce you may still be okay with this, but what happens if your spouse remarries? What if he or she has children with the new spouse?

If you are recently divorced or going through a divorce, you are going to be overwhelmed, emotional, and exhausted. The easiest thing in the world would be to put off your financial or estate planning. Don’t. As John Lennon said, “Life is what happens while you’re busy making other plans.”

With all of the uncertainty on Wall Street recently, many of our clients whose bank accounts are held in their Revocable Living Trusts are concerned about whether their assets are protected, and to what extent.

According to the FDIC, accounts owned by a Revocable Living Trust are indeed insured. To what extent they are insured depends on who your beneficiaries are and when they become entitled to their interest.

The owner of a living trust account would be insured up to $100,000 per beneficiary if all of the following requirements are met:

The beneficiary must be the owner’s spouse, child, grandchild, parent or sibling. Stepparents and stepchildren, adopted children and similar relationships also qualify. In-laws, cousins, nieces and nephews, friends, and charitable organizations do not qualify.

The beneficiary must become entitled to his or her interest in the trust when the owner dies — coverage would be based on the beneficiaries who meet this requirement at the time the bank fails. Example: A living trust names an owner’s three children as beneficiaries but states that each beneficiary’s share will pass to the beneficiary’s children if the beneficiary dies before the owner. Assuming all three children are alive at the time the bank fails, only the children — not the grandchildren — would be beneficiaries for insurance purposes. (That’s because the grandchildren are not entitled to any trust assets while their parent is alive.) Coverage up to $300,000 ($100,000 per beneficiary) would be available on the trust’s deposit accounts.

The account title at the bank must indicate that the account is held by a living trust. This rule can be met by using the terms “living trust” or “family trust” in the account title.

If you have any concerns about how your account is titled and whether you are covered, please call our office for more information.