A new trend in identity theft – afterlife identity theft – is on the rise, with thieves scouring obituaries for personal information to steal the identities of those who have passed.  When you lose a loved one, it is important to take quick action and notify a number of institutions and government agencies about the death to help prevent afterlife identity theft.

The National Funeral Directors Association provides a list of government and credit reporting agencies, creditors and banks for notification, including:

●     Social Security Administration
●     Veteran's Administration (if the decedent formerly served in the military)
●     Defense Finance and Accounting Service (military service retiree receiving benefits)
●     Office of Personnel Management (if the decedent is a former federal civil service employee)
●     U.S. Citizen and Immigration Service (If the decedent was not a U.S. citizen)
●     State Department of Motor Vehicles (If the decedent had a driver's license)
●     Credit card and merchant card companies
●     Banks, savings and loan associations and credit unions
●     Mortgage companies and lenders
●     Financial planners and stock brokers
●     Pension providers
●     Life insurers and annuity companies
●     Health, medical and dental insurers
●     Disability insurers
●     Automotive insurer
●     Mutual benefit companies
●     All three credit reporting agencies: Experian, Equifax, and TransUnion
●     Any memberships held by the decedent (ex: health clubs, professional associations, clubs, library etc.)

The NFDA recommends that you notify these entities first by phone followed by a written confirmation, where you will need to provide a certified copy of the death certificate, the decedent’s Social Security number and, if you are the executor or administrator of an estate, the verification of your appointment by a probate court.  Be sure to ask the funeral home you are using if they can provide notification services for you, as many do.

If you would like to have a talk about protecting your loved ones through estate planning, call our office today to schedule a time for us to sit down and talk. We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. C today and mention this article.

Research shows that a majority of baby boomers will receive an inheritance at some time during the lives, with the average inheritance estimated at almost $65,000.  Should you be the recipient of family largesse, here are 7 steps you can take to be sure your inheritance is managed wisely:

1.  Re-examine your financial goals.  This should provide you with the direction you need to determine how to invest your inheritance, either for short-term gain or long-term benefit.

2.  Review your estate plan.  If you inherit a significant amount, you will need to review your estate plan to see what strategies can be put into place to protect your increased assets.  If you inherit a valuable collection of art or jewelry, you’ll need to look into ways to protect that, too.

3.  Get rid of debt.  If your inheritance is significant enough to allow you to pay off debt – especially credit card debt or loans with high rates – be sure to consider paying it off.  You can evaluate whether or not this is a good idea by estimating what you currently pay in interest and then determine if investing your windfall will provide a better return.

4.  Have an emergency stash.  If you do not have at least six months’ worth of living expenses in an emergency fund, it’s a good idea to park some inheritance money there.

5.  Take your time.  Take the time to consider the best use of your inheritance before you may any major moves.  Inheritances are separate marital property, so if you are headed for divorce, it may be more prudent to just put the cash in an interest-bearing account until the dust settles.

6.  Consult a professional.  A financial planner and an estate planner are good choices to help you navigate your new wealth.

7.  Give yourself a treat.  Put a small amount by for a special “treat” but don’t go overboard. 

A Personal Family Lawyer can further advise you of all your options as part of a comprehensive estate plan.  If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk.

We normally charge $750 for a Family Wealth Planning Session, but because this planning is so important, I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

James Gandolfini, the actor best known for his portrayal of Tony Soprano on HBO’s The Sopranos, died suddenly last month while on vacation in Italy.  His will is already on the Internet, available for everyone to read – which is the first lesson we should all take away from what he did and did not do right in his estate plan: establishing a trust keeps your private financial matters private!

Estate planning attorney Julie Garber, who writes a column on Wills & Estate Planning on About.com, lists 5 other estate planning lessons learned from James Gandolfini:

Lifetime trusts are often better for beneficiaries.  James Gandolfini’s 13-year-old son and infant daughter will inherit a large portion each of the actor’s estimated $70 million estate once they reach the age of 21.  It may have been better to establish lifetime trusts for each of the children, then making them co-trustees at 25 or 30, then sole trustees at the more mature age of 35 or 40.  This would have protected their inherited assets for life, from creditors, bankruptcy, lawsuits and divorce.

If you own foreign real estate, you need a foreign estate plan.  James Gandolfini owned property in Italy, which his will specified should be turned over to his children.  However, Italy has forced heirship laws that may trump the will.  He should have consulted with an Italian attorney and had an Italian will drawn that passes the property in accordance with Italian law.

Update your will regularly.  James Gandolfini had updated his will just six months prior to his death, and a few months following the birth of his daughter.  By taking action to update his will following the new birth, he saved his heirs a lot of headaches and heartaches. But unfortunately, he missed a big one -- he didn’t update for estate taxes.

Irrevocable Life Insurance Trusts are a smart move.  James Gandolfini established an ILIT for his son Michael and funded it with a $7 million life insurance policy.  By setting up an ILIT, the proceeds from the insurance policy flow directly to the trust, with no New York or federal estate taxes on the $7 million. 

Multiple executors and trustees can provide necessary checks and balances.  James Gandolfini had two children with two different wives.  He named his sister, his current wife and one of his attorneys as co-executors of his will and co-trustees of the testamentary trusts set up in his will, which was a savvy move to prevent any one beneficiary from being favored.

The one thing that Gandolfini and his lawyers did not think about enough was his estate taxes.  He’ll owe nearly $30,000,000 in estate taxes and much of it could have been avoided with good planning in advance.

As a Personal Family Lawyer®, I can further advise you on all your options and make things as easy as possible for your family during a Family Wealth Planning Session.  If you would like to have a talk about estate planning for your family, call our office today to schedule a time for us to sit down and talk.

We normally charge $750 for a Family Wealth Planning Session in our Cornelius estate planning office, and this month I’ve made space for the next two people who mention this article to have a complete planning session at no charge. Call today and mention this article.

Seth Godin is a well known and oft-quoted American entrepreneur who has authored 13 best sellers that have been translated into 33 languages.  Recently, he wrote a post on his blog at SethGodin.com that is a must-read for everyone.  I am reprinting it here in its entirety, so please take a few moments to digest this important message from Seth:

How do you want to die?

Let's assert that you're almost certainly not going to be the very first person to live forever.

Also worth noting that you're probably going to die of natural causes.

The expectations we have for medical care are derived directly from marketing and popular culture. Marcus Welby and a host of medical shows taught us about the heroic doctor, and more than that, about the power of technology and intervention to reliably deliver a cure.

It's not a conspiracy--it's just the result of many industries that all profit from the herculean effort and expense designed to extend human life, sometimes at great personal cost.

Hence the question: Do you want to choose whether or not you will be a profit center in the ever scaling medical-industrial complex? One percent of the population accounts for 30% of all health care expenditures, and half of those people are elderly.

Most of that care is designed to prolong life, regardless of the cost, the pain or the impact on the family. A lot of doctors are uncomfortable with this, but they need you to speak up and make a choice (in advance) about what you'd like. Some people want the full treatment, intervention at all costs.

If that's your choice, go for it. But be clear, in writing, that you'd like to spare no expense and invest in every procedure, even if it's pointless and painful. Don't be selfish and let someone else have to guess.

On the other hand, you have the right to speak up and stand up and clearly state if you'd prefer the alternative. Many people prefer a quiet dignity that spares them and their family pain and trauma. But you have to do it now, because later is too late.

The web makes it easy to generate and sign a simple generic form. Or even better, go find the forms state by state. (If those pages are down, try a search on "health care proxy" and the name of your state.) [A reader also suggests MyDirectives.]  [And consider the Five Wishes.]

There are two critical components: assigning an individual to be your health care proxy, and then telling that proxy, in writing, what you'd like done (and not done) to you when the time comes.

If every person who reads this sits down with his or her family and talks this through (and then tells a few friends), we'll make a magnificent dent in the cultural expectation of what happens last.

It's free, it’s not difficult, it takes five minutes. Do it today if you can, whatever your wishes are. Don't make the people you love guess and then live with the memory of that guessing.

Some things are more likely to happen if you plan for them. In this case, the end comes whether you plan for it or not. Planning merely makes it better.

# # #

Seth is right. You need to plan. We are here to make sure you do it right and your family has the guidance they need when you can't be there. Form documents can’t do that. Your family deserves more.

Contact our Lake Norman estate planning office, mention this article and we will prepare a free health care proxy for you at the conclusion of your Family Wealth Planning Session. The regular $750 fee for the planning session will be waived for the first 3 to book with us in Cornelius this month. 

According to a 2011 McAfee study, Americans value the digital assets they own across multiple digital devices at nearly $55,000.  Unfortunately, a vast majority of us have not planned for what happens to these assets after we’re gone.

Estate planning for digital assets is growing as fast as technology, and involves issues of security, privacy and legacy planning.  For planning purposes, digital assets can include:

·         Email accounts
·         Photos
·         Documents and files
·         Websites and blogs
·         Social networking accounts
·         Music and books
·         Online shopping accounts
·         Banking and bill pay accounts

Practical issues that should be considered when planning for the disposition of digital assets include:

·         Who will access and control the accounts following your death
·         How your executor or agent will get access
·         How your digital assets can be transferred to beneficiaries if desired
·         How fiduciaries will know where to find all the information on your digital assets

There are two steps you should take to protect your digital assets, with the guidance of a Personal Family Lawyer®:

Inventory digital assets.  Make a list of all your accounts and assets, including user names and passwords, answers to security questions and any other necessary information that will allow your executor or fiduciary to access the information. 

Include digital assets in estate plan.  Include enabling provisions in your estate plan that covers the management and disposition of your digital assets. 

If you would like to have a talk about protecting your digital assets through estate planning, call our office today to schedule a time for us to sit down and talk.  Call today and mention this article for a free consultation with Kelly Myers, your Personal Family Lawyer.