Your Family Is One-Of-A-Kind; Your Estate Plan Should Be As Well

Posted on by
Reply

According to statistics the average U.S. family size is 3.2 members.  The median age of a man upon his first marriage is 28.1, the median age of a woman is 25.9.  Also according to statistics, approximately 60% of couples own their home, 70.7% of mothers with children under the age of 18 go back to work, and 6% of men are likely to be unemployed.

Do these statistics accurately portray your family?

“Average,” “median,” and “approximately” may be fine for statistics, but it’s certainly not what you want from your estate plan.  Your estate plan should represent your family; your hopes for the future as well as your current needs.  This may include a nomination of guardian and education trust for young children, it may include a special needs trust for your disabled adult child, or it may include incentive trusts for unambitious heirs. Alternatively, you may find that you need none of these, and that a will and simple ancillary documents will serve you just fine.

Whatever your family’s needs may be, you want them to be met by a keen, compassionate, and knowledgeable attorney; someone who will meet you face to face and listen to your concerns with an open mind, not a machine which will spit out a standard document based on numbers and averages. Estate planning may be a business, but it’s also an art, and as such it takes a real person to help create the plan that will provide for you and your family now and in the years to come. The members of our firm have our own families, we understand that you want the best for your family, and we want to help.

Sharing Your Passion With The People Who Matter

Posted on by
Reply

What is your passion?

Do you love reading and collecting books?  Are you a rabid coin or stamp collector?  Do you find peace and tranquility out tending your garden?

Whatever it is that you love to do in your “off time”, you can bet the people closest to you know it.  These are the people who give you that antique seed cabinet that you would never buy for yourself; it’s the person who finds the Ted Williams baseball card for a steal at an estate sale and presents it to you for your birthday; or the friend who happily goes with you to the antique car show because he knows hobbies are better when you have someone to share them with. These are the friendships that last a lifetime, the people who sometimes seem to know you better than you know yourself; and yet oddly, these friendships are often forgotten when people create their wills and divvy up their estates.

Many people go to their estate planner with their descendents and their financial assets foremost in their minds, and that is as it should be; but your estate plan can be more than a just a way to distribute property to the next generation, it can also be an opportunity to say thank you to the people who have touched your life by sharing with them the accoutrements and paraphernalia of your hobbies and passions.

You can express how much you appreciate your best chess opponent by leaving her your favorite chess board; or you can encourage the interest of your young philatelist nephew by bequeathing to him your extensive stamp collection; all you need is an estate plan which includes some kind of personal property memorandum.  A personal property memorandum is not a difficult legal document to create—in fact, it will often be a very informal document—but it does require some forethought to ensure that your formal will or trust recognizes and refers to the memorandum.

Our office can help you create an estate plan that not only ensures the protection of your heirs and property, it also helps you leave a meaningful ‘thank you’ to the people who matter most.

Help For Caregivers: 10 Steps Toward Taking Care of Yourself

Posted on by
Reply

The number of people serving as caregivers has exploded in recent years, and according to PR Newswire the number of caregivers now tops 65 million people (29% of the population of the US.)  This includes people providing care for elderly adults, special needs children, young adults with disabilities, and more. These caregivers are people who offer their time, energy and financial support to ensure that their loved one—parent, child, sibling, grandparent—lives a life of joy and comfort.  It is admirable and often selfless work… and it can take its toll on the caregiver.

Many caregivers are working so hard to take care of everyone around them that they forget to take care of themselves.  Their health will often suffer, their financial security goes untended, and their own social interactions fall by the wayside.  All of this can quickly lead to one thing: Caregiver Burnout.

Although we don’t hear much about it, Caregiver Burnout is a very real phenomenon.  Described as similar to Post Traumatic Stress Syndrome, Cargiver Burnout can cause depression, withdrawal from society, self-neglect, erratic behavior, and at its worst—suicidal tendencies.

But there are ways to combat the onset of Caregiver Burnout. HelpGuide.org provides an entire section on how to recognize and prevent Caregiver Burnout, including tips for family caregivers and a list of some of the warning signs of Caregiver burnout.  And that’s not all, this article in PR Newswire offers 10 steps caregivers can take to ensure they take care of themselves financially.

If you are the caregiver in your family it is essential that you (and your fellow family members) recognize the difficulty of the work you do.  Be aware of your limits, respect them, and don’t be afraid to put yourself first. Caring for yourself isn’t the selfish thing to do; it’s the smart thing to do.

Real Estate Investments Bring Real Long-Term Value to Families

Posted on by
Reply

If there is one way to be sure money stays in the family and grows over time it is through real estate. Despite the year-to-year ups and downs of the real estate market, the value of real property continues to grow over the long term.

Real estate is often considered a comparatively easy way to maintain and grow wealth because it doesn’t require the kind of daily attention—or stress!—that a business demands. Depending on the type of property, real estate typically requires duties that are annual or month-to-month, such as maintaining the physical structures, paying property taxes, making insurance payments, getting updates from property managers, and the like.

What real estate investors might be slow to realize is that property ownership carries with it significant liability risks. Unless the precautionary measures are taken, one small misstep can result in the loss of all your real estate holdings. Imagine it, one person slips and falls in front of one of your properties, and suddenly ALL of your holdings are at risk.

Preventing this kind of mess is not as difficult as you might think—for example, putting each of your properties in its own separate legal entity is one technique that can be used to protect all of your properties (and yourself) from lawsuits. Our firm can help you with this and other asset protection techniques.

We know how important it is to keep your family and your finances safe, and we are dedicated to helping you achieve that security. Call our office and let us tell you how we can put our expertise to use for your benefit.

Questions to Ask When Choosing a Guardian for Your Child

Posted on by
Reply

Choosing a guardian for your children is one of the most difficult things you may ever have to do as a parent, and if you have a special needs child the task is even more difficult.  From parenting style to living situation to your gut feeling about this person’s ability to love your child as well as you do—there are endless things to consider before you ask the big question.

In honor of Autism Awareness Month, MassMutual has published a list of 10 questions for parents to ask themselves when choosing a guardian for their child with autism or special needs.

Although the list is supposed to be for parents of children with special needs, the questions are a helpful road map for any parent, not just parents of special needs children.  MassMutual’s ten questions cover issues such as considering how close the person you are considering as guardian currently lives to your child, whether he or she is financially able to assume the responsibility of guardian, and whether you should name a second or third person or couple as backup guardians. These are important questions that all parents should ask themselves before choosing a guardian.

Having children means always planning ahead and thinking about the future, even as you try to live in the present and appreciate the small moments in every day. Nominating a guardian for your children makes it that much easier to focus on the here and now, because in the back of your mind you’ll know that your children will be protected if something happens to you. Let our firm help you achieve that peace of mind.

Tax Tips to Benefit YOUR Family

Posted on by
Reply

Tax day is coming up quickly, are you ready to file?  And just as important—are you taking advantage of all the savings and deductions available to you? Most people who do their own taxes are unaware of some of the lesser-known deductions which can help you save money come tax-time. We have a couple of articles we’d like to share with our readers that may make it easier for your family come April 15th.

A recent article on SmartMoney.com offers 3 often overlooked ways to save on your income taxes. Two of the three items have to do with parenthood and buying a home, but of particular interest to our readers is tip #2, Selling Grandma’s Stuff: “If you sold something last year that you inherited, understand that your tax basis for gain or loss purposes generally has nothing to do with what your benefactor paid for the asset. And that’s probably going to save you a bundle in taxes.” If you sold an asset from an inheritance last year (or if you received an inheritance last year at all, regardless of whether you’ve sold the asset or not) contact our office before filing your taxes.

Another potentially useful resource for tax savings is the ABC News article Top Ten Commonly Missed Tax Deductions to Put Cash in Your Wallet. This article reminds us to include the little things—such charity volunteer related expenses, the new car deduction, old school books used for work, and more. There are a number of tax deductions your family may be able to take advantage of… if you just know where to look. 

Will You Be Able To Afford Old Age?

Posted on by
Reply

Are you ready for the financial implications that come with growing older? As the average American lifespan grows longer the cost of aging becomes more and more prohibitive.

A recent segment on NBC’s The Today Show is takes a close look at long-term care and the price individuals and couples are required to pay as age related illnesses make it more and more difficult for senior citizens to live at home without care.

The show tells the story of “Roberta” and her husband, a couple married for 44 years, who felt there was no choice but to divorce after Roberta’s husband was diagnosed with dementia and the subsequent nursing home bills quickly depleted their assets.  After paying no less than $75,000 in care costs, Roberta was advised by her attorney that one of the only ways to conserve her remaining assets for her own support would be to divorce her husband, allowing him to qualify for Medicaid coverage.

With growing numbers of senior citizens being diagnosed with debilitating elderly illnesses, and the cost of nursing care on the rise, more and more couples are finding that without some kind of long term care insurance they simply can’t afford the cost of aging. Medicaid can help, but as the story of Roberta and her husband shows, Medicaid doesn’t come without its own price.

Plan ahead for your own old age by talking to your advisors about Medicaid and your options for long-term care insurance.

Defining Probate

Posted on by
Reply

Probate: [from the Middle-English probat, from Latin probatum…] a : the action or process of proving before a competent judicial authority that a document offered for official recognition and registration as the last will and testament of a deceased person is genuine. b : the judicial determination of the validity of a will.

This Merriam-Webster definition of probate doesn’t make it sound so bad.  Quite simply, it is the process by which the court determines the legal property of a person who has died, and decides to whom those assets will be distributed. It sounds like it should be simple… but somehow probate is hardly ever simple. Even in the best of circumstances there are procedures that must be followed to the letter, and the actual process (depending on the size of the estate and the laws of the state in which the property is being probated) can take anywhere from 6 months to a few years!

A good will can go a long way toward keeping the probate process on the short and easy end of the spectrum; but even with a will, much of your probate experience will depend on elements outside your realm of control. There are certain steps that must be followed to complete the probate process, including:

  • the appointment of an executor or personal representative
  • verification of the will
  • taking an inventory of assets belonging to the deceased (which can be very difficult if good records have not been kept)
  • giving notice to creditors
  • paying valid claims against the estate
  • preparing and paying taxes
  • notifying beneficiaries (not all of whom will be easy to find)
  • and eventually distributing the assets to the beneficiaries or heirs

If just reading the above takes your breath away, imagine having to actually go through all of those steps—and possibly more! The good news is that you don’t have to go through it alone, our office can help you navigate the tangled probate maze from beginning to end—from filing the first court documents to protecting your eventual inheritance—ensuring that your probate experience goes as quickly and smoothly as possible.

One More BIG Reason to Have a Health Care Directive

Posted on by
Reply

Do you have a health care directive?  If not, the Los Angeles Times has just given you one more reason to create one: Advance directives for end-of-life care result in preferred treatment.

That’s right, according to the recent article; those people who have recorded their wishes for end-of-life treatment have their wishes followed by agents and doctors over 80% of the time.  According to a health and retirement study done between the years of 2000 and 2006, “researchers found that of the 398 incapacitated people who had used a living will to request limited care at the end of life, almost 83% received it…” and “…Of the 417 incapacitated people who had requested comfort care in a living will, 97% received it.”

Those are huge percentages, especially when you consider how easy it is to create a health care directive or living will.

There is no down side to recording your wishes and nominating a trusted agent to help ensure those wishes are followed—it brings you peace mind, it brings comfort to your family members, and our office can help you execute one quickly and easily.  Knowing all this, as well as the fact that studies now show how truly effective they are in getting you the treatment you desire… there’s really no reason to delay any longer.  Call our office for more information.

The Receiving End of Estate Planning

Posted on by
Reply

We publish a lot on this blog about preparing your estate plan: writing a will, setting up a trust, choosing beneficiaries and nominating guardians; but there is another side to estate planning, a fun side… the receiving end.

You may assume that the receiving end of estate planning is the fun and easy part, but that is not always the case. Coming into an inheritance presents its own questions and challenges; financial, logistical, and personal.

Financial

Receiving an inheritance always means you have to think about taxes.  Estate taxes, income taxes, property taxes… The estate tax this year is not as clear as it has been in the past, and you will probably want to have an attorney or accountant help you with it.  Whether or not you have help, you will absolutely want to keep paperwork on everything.  This includes paperwork from any transfers of inherited property made by you, as well as any and all of the original paperwork you can find for the inherited assets.

Logistical

There is a lot more to an inheritance than simply getting money and spending it.  Are you the nominated guardian of young children, holding those assets in trust for their benefit?  Or perhaps you are the beneficiary of a trust, and your receipt of the assets is subject to the terms of that trust.  Do you have to use the money for school?  Do you need to approval of a trustee before you can spend it? Hopefully you are working with a trustee you know and trust, but if you and the trustee disagree you may need mediation or even your own attorney.

Personal

Inherited property is almost always very personal and fraught with emotion.  Should you really sell the house grandma lived in for decades and use the money to take a cruise? (If so, wait until after taxes to buy the tickets.) Would your parents have wanted you to use the money to pay for a wedding, or save it for your retirement? Do you want to take the summer home that’s been in your family for generations and own it jointly with your new spouse, or keep the property on your side of the family?

Whatever you choose to do with your inheritance, it’s likely you’ll need some guidance from a knowledgeable and trustworthy professional.  Your estate planning attorney can help.  Our knowledge of the probate system, estate taxes, and creating vehicles to protect your assets can answer your questions regarding the receiving end of estate planning as well as the planning.