According to a recent Forbes article, Americans donated more than $316 billion to charity last year – and most of that came from individuals.  Holidays are a traditional time of giving, and not just because we like to get in those year-end tax deductions!

Forbes provided 10 tips for getting the most out of your charitable giving this year:

1.  Be sure to itemize.  The IRS requires that you itemize your charitable deductions each year on your 1040 so be sure to keep careful records.

2.  Get a receipt.  If you are giving property, be sure you get a written receipt from the organization and that it lists the items you have donated.  If you are giving cash you need a receipt as well – either from the charity or a cancelled check or credit card receipt that includes the name of the charity.

3.  Choose wisely.  Not every charity is recognized by the IRS as an exempt organization.  You can check by name at the IRS Exempt Organizations Select Check website. 

4.  Remember payroll deductions.  If you give via a payroll deduction, your employer should furnish you with a record of your annual deduction.

5.  Deduct value of incentives.  If you receive something in exchange for your donation – even a coffee mug or a t-shirt – you are required to deduct the value of that item from the value of your donation.

6.  Consider giving appreciated assets.  You can receive a double benefit if you donate an appreciated asset like stock or real estate.  If you have owned the asset for at least a year, you can deduct the fair market value and avoid paying any capital gains tax. 

7.  Understand what you can deduct.  If you provide services to a charitable organization, you can deduct things like mileage or supplies, but you cannot deduct your time.

8.  Document gift value.  Non-cash items need to be documented in terms of the item’s condition in order to assess a fair market value.  If your donation is worth more than $500, the IRS requires a written appraisal for fair market value.

9.  Be aware of limits.  Many people are not aware that there are limits on charitable contributions, which are tied to your adjusted gross income (AGI).  If you give more than 20 percent of your AGI, then you may run up against these limits, which vary according to the gift (cash, non-cash items, appreciated assets). 

10.  Give by year-end.  You will only receive deductions for those items or cash you give during the calendar year, so be sure you make your donation by Dec. 31.  If you gift via check or credit card, you will receive the deduction as long as they are recorded by Dec. 31 – even if you don’t pay the credit card or the check isn’t cashed until 2014.

Most of us who have a pet consider them to be a part of the family; unfortunately, the plans we may have so carefully put together to protect our loved ones do not take our pets into consideration.

According to the ASPCA, only about 17% of dog and cat owners have taken the necessary legal steps to ensure their pets are cared for after they die.  Most of us assume that because our close family members know how much our pets mean to us, someone in the family will take responsibility for our pets after we are gone.  However, many pets that outlive their owners wind up in shelters because no formal provisions have been made for them.

Almost every state has laws that allow pet owners to create a trust for the care of their pets.  You can create a trust that would go into effect upon your death or if you become incapacitated and unable to care for your pet.  To ensure there are proper checks and balances, you may want to consider naming one person to serve as trustee to handle the money, and another person as your pet’s caregiver, who would be responsible for the day-to-day care of your pet.

In your trust, you can detail exactly how your pet is to be treated – how many vet and groomer visits per year, what the pet should be fed, and any special medical needs that will require special attention.  You will need to fund your pet trust sufficiently to cover your pet’s anticipated life span, including a cushion if your pet lives longer and needs additional medical care.

Don’t make the mistake of providing for your pet in your will since probate could tie it up for months in court, but you could make mention of the existence of your pet trust in your will.

If you would like more information about protecting your loved ones – including your pets -- 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.

If you have been named the executor of someone’s estate or the Trustee of a Trust, you may be unaware of all the details this responsibility entails.  Most parents name a child as an executor, but seldom do children then do the necessary research to see what estate administration is all about – and when it comes time to take over these responsibilities, they panic or miss important deadlines and details.

Immediately following the death of the estate owner or trust grantor, executors/trustees should:

Secure tangible property.  It’s amazing how many things “walk away” from a decedent’s home right after they die.  Someone may feel that Aunt Betty would have “wanted” them to have the silver collection, so they just take it.  So it is important that executors secure all tangible property – especially if that property may require an appraisal – so they can plan for the distribution of the property as outlined in the decedent’s will.

Take your time.  After you have secured the tangible property, take a little time to grieve before worrying about most financial matters.  You will probably want to pay bills, but these can wait a month or two without repercussion.  However, you do need to notify Social Security within 30 days of the death. 

Talk with your attorney.  Meet with your Personal Family Lawyer® to receive the guidance you need to properly administer the estate.  Any fees incurred will be paid out of the estate, not your pocket.  And the advice you get will be invaluable.  If you have prepared a plan with us and you are on one of our VIP Membership programs, your executor will have a no-charge meeting with us after your passing and then we will support with administration of the estate and trust at a discounted rate.

Here are some general rules, which vary from state to state, for estate executors regarding the steps that need to be taken to properly administer the estate:

1. Notify probate court.  You must file the will and petition at the probate court to be officially recognized as executor.  If there is no will, the heirs must petition the court to be appointed administrator.

2.  Inventory the assets.  You will need to compile a list of everything the decedent owned and provide that list to the probate court. 

3.  Open a checking account.  You will need to open a single checking account on behalf of the estate to pay bills and taxes.

4.  File tax returns.  You must file a final income tax return for the decedent.  If the estate has any assets that earn interest, you must file an income tax return for the estate.  If the estate exceeds $5.12 million, you will need to file a federal estate tax return within nine months of the date of death.

5.  Distribute property.  After any creditor claims are satisfied and bills paid, you will need to distribute the remaining property to heirs.

6.  File a final account.  You must file a final account with the probate court in order to close out the estate.

If you would like to have a talk about estate planning and administration, 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.

For many people, the basics of estate planning are simple enough, but for those families with loved ones who are disabled or have special needs, the estate planning process is more involved – and definitely more critical.

The latest statistics show that five percent of minor children have some sort of disability, and the burden of caring for these children make estate planning essential.  In addition to specialized health care, these children usually need special schooling and intensive therapy, all of which comes at a cost. 

Here are some tips for parents facing the need to plan not only for their own financial future, but for that of a special needs child:

Deal with expectations.  Parents need to think about the kind of life they envision for their child.  Will the child have a shorter life span?  Will he or she be able to work or live independently?  The answers to these questions will form the foundation of your plan.

Determine eligibility for public benefits.  In order to meet eligibility requirements for Medicaid and Social Security Supplemental Income programs, a person with special needs or other disabilities cannot have more than $2,000 in assets.  This makes it imperative that a child who could benefit from these services not have any assets titled in his or her own name – meaning they should not be listed as beneficiaries on life insurance policies, retirement accounts or plans, in trusts, wills or pensions. 

Consider a special needs trust.  Assets placed in a third-party special needs trust are not counted as assets toward public benefit program eligibility, but these trusts are governed by strict rules so the counsel of a Personal Family Lawyer in establishing this trust is necessary.  Parents who are unable to fund a special needs trust with cash while they are still alive can do so through life insurance proceeds after they die.

If you would like to have a talk about protecting your family 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. Call today and mention this article.

We are fast approaching the holidays, when travel is the busiest and careful planning is necessary to nab the best airfare or book that New Year’s beach cottage before it slips away.  One thing that is probably not on your travel to-do list is estate planning, but it should be so you can travel with peace of mind.

Here are some tips to pack away your worries before you board that flight:

Complete your estate plan.  If you’ve been putting it off, now is the time to complete your estate plan.  If money is a consideration, then start with those the most important items: a will, power of attorney and advance health care directives.

Update an existing estate plan.  Has something changed in your life since you last updated your estate plan?   A birth, a death, a marriage, a divorce?  Each of these triggers your need to update your estate plan.

Establish guardianship for minor children.  If you have ever gotten a nagging fear about what would happen to your children if something were to happen to you, then use that fear to follow through on naming a guardian for raising your minor children.  If you have young kids, there is never an excuse for you to neglect this important step.

Review beneficiaries.  Beneficiaries of your retirement accounts, life insurance and other assets must be kept current or your assets will not pass to them upon your death.  If you have minor children, you will need to set up a trust and name the trust as beneficiary so your assets can pass without court intervention.

Review/update incapacity documents.  Two very important health care documents – a durable power of attorney for health care and a HIPPA Authorization – will determine who can make medical decisions for you and who has access to your medical records in case of incapacity.  Be sure you have these documents before you travel and that the person/people named are still valid.

Review/update insurance.  Does your life insurance coverage still meet your family’s needs?  If not, it is time to update your insurance policy before you hit the road.

In addition, you need to be sure you have an organized file of all your accounts and estate planning documents and you need to tell your family where they can locate the file if and when it becomes necessary.

The time to create a plan that spells out how you will pass on your values, beliefs and your money to your children is now.  You can begin by calling 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.

If you came to this page to find out what I’ll charge you for a Will or you are considering calling me (or any other attorney) to ask, “How much do you charge for a will?” stop.

It’s not the right question.

The question you need an answer to first is “What do I really need to have in place to ensure me, my family, and money are cared for the way I want?”

Far too many people make their estate planning decisions based on what it’s going to cost. Sometimes, that may be the right criteria. Most of the time it’s not.

The problem is you don’t know what you don’t know.

When you get on the internet to download a cheap will or fill out canned documents from a book or DIY kit from the office supply store, you don’t know what you are actually putting into place or setting in motion.

When tragedy strikes, it’s your family who is left holding the bag.

Failed plans, unnecessary, expensive, totally public probate, multiple probates in different states, even, loss of sovereignty, legal fees for guardianships and conservatorships, being at the mercy of the judicial system.

When you hire me, you aren’t paying for documents. 

You are hiring me for my guidance throughout your lifetime and to be there for your loved ones when you can’t be.

When you hire me, you aren’t renting my time, but my brain and my heart. You are hiring an ally who will help you get your affairs in order, and keep them there across time and changes in the law, tax policies and your life.

When you call me and ask how much for a Will, I can’t give you an answer because I don’t even know if that’s what you need.

Maybe a Will would suffice for your family, but maybe it won’t.  And if I tell you how much a Will costs and then you come into my office and you need so much more, you’ll be angry with me.

So I won’t answer your question.  Because I don’t charge for Wills.  I charge for advice, guidance, counsel and support.  The Will? It’s free.

Our process begins with a Family Wealth Planning Session.  Before this Session, you will receive a package of information with homework for you to complete so you can benefit from the time with me the most.

Whether I ever write a Will (or any other documents) for you or not, I want every interaction of ours to be extremely valuable to you.

To that end, I’ll review the homework you complete before we meet.  And then we’ll invest our time together exploring your life, looking at what would happen to you, your children, your money, and the people you love if anything happens to you.

You will feel heard, cared about, informed, educated, and empowered to make the best decisions for the people and things that matter most in your life.

If, after we spend that time together, it turns out you need a Will (or any other type of legal planning), it will be because we came to that conclusion together.

Then, I will offer you planning packages that will cover the different options for taking care of things the way you want.

I can tell you this – most of our foundational plans range between $1,500 and $8,000.  Your package will be customized to the specific needs of your family.  And you will stay in control the whole time.

How do you choose a lawyer, if not based on price?

Get referrals from your friends and family. When you call the office to inquire about their services, rather than asking what they charge, ask HOW they charge and what makes their office different than others.

See who stands out in your area. Is there a lawyer who is frequently seen around your community? That lawyer means business and is putting their reputation on the line every day. Give them a try.

Search for a local provider on www.personalfamilylawyer.com or www.estateplanning.com. These two websites host some of the best planners in the world.

Get connected. When you find the right lawyer, he or she will be a member of your team for the long term, not for just this one transaction. Your lawyer should be approachable and not only want to be in a long-term relationship with you, but have systems and a team to support that.

Read this report.  I’ve written a report on the common mistakes I see families make when choosing a lawyer for their loved ones.  You can get it for free by contacting me and letting me know you would like a copy.  Read it.

Simply asking, “What do you charge for a Will?” does not get you what you need to know to make a smart and loving decision for your family.

A far more powerful question to begin with is “What do I need to do to make things as easy for my family as possible, if something happens to me?”

Please contact me to find out. 

A recent Economist article says a “perfect storm” of the poor economy of the past few years, resulting in fewer job prospects for college grads and other young adults has more kids than ever living at home well into adulthood. 

I believe it has a lot more to do with the fact that college simply isn’t preparing kids for today’s workforce and little to do with a “poor” economy. A new economy yes. But, it doesn’t seem that poor to me. Anyway, that’ll be a topic for another article.

Regardless of the reason, more than one-third of Americans aged 18-31 still live at home with their parents.  And it’s probably not because the kids just love their parents so much they can’t leave.

If you are one of these parents harboring young-adults who won’t grow up and move out (and you want them to go), here are three tips to either get them contributing to or out of the house: 

Teach your kid to be work-worthy online.  Employers are going online to check out the social networking profiles of many job applicants and if what they see is decidedly unprofessional, they don’t go any further.  Encourage your son or daughter to clean up his/her online presence, deleting party photos and filling those profiles with updated information on their skills and qualifications for real work.

Charge your kid rent or require a work trade.  If your adult child has a job but is still living at home, s/he may be saving for a deposit on his/her own place.  But don’t let that lead you to giving a free ride. 

Charge a nominal rent that will still allow for saving, but will reinforce the idea that there’s no such thing as a free lunch (or breakfast or dinner).  Or, instead of rent, get your kid working around the house doing all the things you no longer want to (or can) do.

Make your kid more attractive to the opposite sex.  Young men who live at home are often considered unmarriageable, according to a sociologist from the University of Texas.  Plus, having mom and dad in the next room can be a relationship killer from the get-go.  Open their eyes to the fact that living at home may be hazardous to his love life.

If you would like to talk to us about ensuring your kids grow up to be great adults, no matter what age they are, call our office today to schedule a time for us to sit down and talk.  Many of these issues are a reflection of a lack of family wealth planning, the practice of how you’ll pass on what really matters.

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.

In June, the U.S. Supreme Court ruling in United States v. Windsor invalidated the federal Defense of Marriage Act (DOMA).  The Windsor ruling has led to a number of recent federal rule changes from the IRS, Social Security Administration and other agencies that provide new estate planning opportunities for legally married same-sex couples.

Earlier this month, the IRS ruled that legally married same-sex couples would now have the same status as opposite sex married couples for income, estate and gift tax purposes.  This new rule applies to all married same-sex couples no matter where they live, provided they were wed in states that recognize same-sex marriage. 

These rule changes open up a whole new estate planning landscape for married same-sex couples, including:

Portability – a deceased spouse’s unused estate tax exemption may transfer to the surviving spouse’s estate tax exemption.

Marital deductions – ability to make unlimited transfers to each other without incurring federal gift or estate tax, during life or after death.

Gift splitting – spouses can combine their annual gift tax exemptions of $14,000 per year to make a gift to anyone up to $28,000 without incurring a gift tax.

Retirement plan and IRA beneficiary designation – married same-sex spouses can be the sole beneficiary of qualified retirement plans and IRAs; surviving spouse can now take advantage of special rules when it comes to rollovers and delayed distribution of retirement account assets.

Community property – married same-sex spouses living in community property states can retitle assets to get a full step-up in income tax basis following the death of one spouse.

Tax refunds – married same-sex couples may be entitled to income, gift or estate tax refunds for 2011, 2012 and 2013.

Life insurance – couples with individual life insurance policies may want to consider changing to survivor policies to maximize death benefits.

If you would like to have a talk about 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. Contact us today and mention this article.

Three-day weekends like the Labor Day just passed give us all the tiniest snippet of a glimpse into what retirement might be like...i.e., extra time to do what we want.  But to have a fulfilling and enriching retirement, you need to do more than just wait to stumble upon your retirement.  You need to plan!  And we’re not just talking about the financial planning side of things, although that is obviously critical. 

A recent Forbes Next Avenue column, based on author Dave Bernard’s book, I Want to Retire!, provides 10 keys to planning and living your best retirement:

Make the best of it.  Accepting the realities of aging and making the best of whatever life throws in your path is the best mindset to approach your retirement with – and a sense of humor doesn’t hurt either.

Take it easy on yourself.  Give yourself permission to make mistakes, because you will.  Don’t feel guilty if you spend some time just doing nothing; instead, enjoy your good fortune at just being retired.

Live your legacy.  The legacy we all want to leave our families is much more than just money or things.  Be – or continue to be – the person you want to be remembered as by your children and grandchildren.

Take a chance.  Approach retirement with a goal of trying something new.  In other words, step our of your comfort zone.  Keep learning; it’s a key to staying young.

Be frugal.  Try to leave below your means, since it is highly likely you will encounter unexpected expenses at some time during your retirement.

Just do it.  Strive for a good balance between relaxation and activity – too much of either doesn’t usually work out too well.

Live in the now.  None of us knows for certain how much time we have; don’t let planning be the enemy of doing.

No regrets.  Make amends, clear the air, and do what is necessary so that you have no regrets that will haunt your retirement years.

Pursue a passion.  When you were working, you likely dreamed of following your passion in some area.  Retirement gives you the opportunity to do that; don’t waste it.

Family first.  Research shows that retirees with a rich family life enjoy their retirement much more, so spend some of that extra time you now have on fostering any neglected relationships and just being there for family and friends.

If you would like to have a talk about retirement 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. Call today and mention this article.

Remember that old joke: How do you eat an elephant?  Answer: One bite at a time.  At the heart of that gag is the truth about how you tackle any seemingly complex task, taking it one step at a time so as not to overwhelm yourself.

Many people neglect to create an estate plan because they see it as the proverbial elephant...too big, too complex.  But if you approach estate planning in a systematic fashion, it takes the complexity right out of it – especially with the help of a knowledgeable Personal Family Lawyer.

Here are some tips on how you can reduce the complexity in creating an estate plan, from a recent Fox Business article:

Add up your assets.  Take into account your retirement accounts, life insurance, potential inheritance, savings, property ownership, etc.

Consider trusts.  Trusts are simply vehicles for protecting your assets from creditors – yours or your heirs – and from potential future ex-spouses.  They are also a great mechanism for maintaining your privacy and allowing your assets to pass to your heirs without the expense and hassle of probate, which can tie up assets for a year or more.  And they also help you and your heirs avoid estate taxes. 

Think about whom you trust to act as your agent(s).  You will need to appoint a person or persons to act as your agent through a power of attorney in case you are unable to make those decisions yourself, in the case you become incapacitated or have a terminal illness.  This applies for health care decisions as well as financial oversight. 

Realize what a will can and cannot do for you.  A will is the cornerstone of your estate plan, giving you the legal power to pass along assets and property to heirs as well as name a guardian for minor children and appoint the people you need to carry out your wishes after you are gone – i.e., who will administer your estate and who will safeguard your assets for minor children.

If you would like to have a talk about 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.  Contact Us today and mention this article.

Beyond the emotional impact that divorce can have on couples of any age that decide to split, it can have a potentially devastating effect on the retirement plans of those who divorce later in life.  Divorce after 50 usually results in a loss of income for both parties, which can mean working longer to fund a single retirement.

A recent article at Forbes.com pointed out common mistakes made by those over 50 who are divorcing that can ruin retirement plans:

Choosing the house over other assets.  For many people, choosing the family home in a divorce is more of an emotional than a rational choice.  If the housing bust of the last few years has taught us anything, it’s that you can’t count on a house as a nest egg.  Plus, a house is likely to cost you more as well in property taxes, maintenance and unexpected expenses like a roof or furnace replacement.    So don’t automatically sacrifice retirement assets for a house until you weigh the costs.

Forgetting to consider the tax implications of retirement assets.  If you decide to divvy up retirement savings by one of you taking the 401(k) and the other taking the Roth IRA, you need to realize that these are not equal distributions.  Withdrawals from a 401(k) or traditional IRA will be taxed during retirement, while withdrawals from a Roth IRA are not taxed during retirement.  Therefore, the payout from the Roth IRA will be larger over time.

Rolling over a spouse’s retirement account into an IRA after the divorce.  If you are under the age of 59 1/2 at the time of your divorce, you have a one-time opportunity to withdraw money from an  ex-spouse’s 401(k) or 403(b) without having to pay the 10 percent early withdrawal penalty as long as those funds have been allocated to you under a qualified domestic relations order (QDRO).  If you do a rollover and need to tap the account early, you will have to pay the tax penalty.  And while it may be tempting to dip into retirement savings now, remember that you are eroding the nest egg that needs to last you for 20-30 years in retirement.

If you would like to have a talk about retirement 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. Contact us today and mention this article.

Contrary to popular belief, estate planning is not just about money or taxes.  Far from it. Today, it’s more about protecting your assets for yourself and your loved ones, achieving your financial goals and safeguarding your health care.  Money and taxes aside, here are 7 good reasons you need an estate plan:

1.  Your Health care.  Defining how your medical needs will be addressed in case you cannot make health care decisions for yourself is a primary objective of having an estate plan.  You also need to consider how you will meet the costs of long-term care.  You need to name someone to make decisions for you and tell them how you want them made.  This must be legally documented or the person you want caring for you, cannot.

2.  Probate.  Probate is an unnecessary, public and often expensive Court process that takes control out of your family’s hands and puts that control in the hands of a Judge who doesn’t know you or what’s important to you.  A main focus of estate planning is keeping your family out of Court. Period.

3.  Family feuds.  Family fights over how assets are divided and distributed are common when there is no estate plan and/or trusted advisor to guide family members.   Sadly enough, these fights happen even when amounts of money are small OR even when there is no money at stake.  Some of the biggest fights we’ve seen happen in storage units over sentimental items with no monetary value at all. If you don’t want your family to fight, you plan your estate.

4.  Beneficiary forms.  You likely have several assets that cannot be passed along in a will alone.   These include IRAs, life insurance, retirement plans and annuities, all of which are governed by beneficiary forms that specify who is to receive the assets upon the death of an account holder.  Completing these forms properly is estate planning

5.  Kids and parents.  If you are currently responsible for the care of minor children, elderly parents or a person who has special needs you need a plan for the continuation of that care after you are gone. 

6.  Managing assets.  Is your spouse or other family member capable of managing all your assets?  If not, you will need to name someone who is capable of doing this now so your assets will be managed wisely for the benefit of your family in the future.

7.  Business succession.  If you own a business, you will need a succession plan to govern what happens to your ownership shares if something should happen to you.

If you would like to have a talk about guiding 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. Call today and mention this article.

We are fairly certain the last thing your 18-year-old kid is thinking about is an estate plan.  And you are probably not thinking about one for them either, but you should be.  Here’s why:  once your child turns 18, you are no longer entitled to know about their medical records or make decisions about their medical treatment.

Can you imagine your child needing medical treatment in some college town and you are not able to help in any way without a court saying you can?  It can, and does, happen.

What you need to do is have your adult child fill out a health care proxy with a HIPAA release (HIPAA refers to the Health Information Portability and Accountability Act, the law that makes health records private for those over the age of 18).  On the form, your child can designate you as their agent, allowing you to have access to medical records and to make health care decisions for them in case they cannot do so themselves.

While you’re at it, have your child complete a Durable Power of Attorney as well, which will give you the right to oversee their finances in case of incapacitation.   

Hopefully you will never need to use these three documents, but having these necessary protections in place will give you both peace of mind.

Be one of the first two families to book a Family Wealth Planning Session this month and I’ll create these three legal documents for your child before going off to college as my gift to you plus waive the regular Planning Session fee. 

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.

Recently, 11 major life insurance companies agreed to pay $763 million to the heirs of deceased policyholders after it was discovered the companies continued billing customers for their policies even after they were dead.

This agreement is the second in the last two years to be reached with insurance companies, which had previously agreed to provide restitution and do a much better job of locating beneficiaries after being sued by the attorneys general of several states for not paying out benefits to the heirs of deceased policyholders.

This pattern seems to indicate that we all need to do a better job to ensure that the life insurance benefits we pay out come back to our heirs in the way we intend.  Here are 5 tips for making sure your heirs benefit from your life insurance benefits:

Be truthful in your application.  If you have not been completely forthcoming about a major medical issue or your health habits (smoking, drinking, etc.) in your application for a life insurance policy, that policy could be declared null and void and your heirs would be out of luck.

Don’t let it lapse.  If your family is counting on life insurance benefits to pay the bills if something should happen to you, and you have not been paying the bills for the policy, your family is left unprotected.

Have a beneficiary bench.  Having a beneficiary on your policy who dies before you do is a recipe for disaster – and it happens much more than you think.  Designate a secondary as well as a final beneficiary for your life insurance benefits, and update them as the need arises. We recommend naming your trust as the beneficiary of your life insurance benefits, rather than naming an individual or even series of individuals.

Play it safe.  If you die because you engaged in risky behavior (not covered by the policy) – or you take your own life – your heirs will likely receive back only what you paid in premiums, and not the full value of your policy.

Talk about it.  The primary reason that a vast majority of potential beneficiaries never see a dime in life insurance benefits is because policies were lost or misplaced and family members were never told of their existence in the first place.  So if you have a life insurance policy, let your family know.  And ask them if they have one, too.  We prepare a Family Wealth Inventory (and keep it updated annually) for all of our clients.  Give us a call if you’d like us to help you with this too and ensure your family never loses track of any of your assets after you are gone.

If you would like to have a talk about protecting your family 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 consultato

It’s summer and that means more teen drivers on the road.  Statistics show teens have twice as many accidents during the summer as any other time of the year, and alcohol is often a contributing factor.

Researchers say teen drivers do not think about risk the same way adults do, leading them to take bigger chances when they’re behind the wheel – leading one teen safety advocate to say “there’s no such thing” as a safe teen driver.

A study by insurance company State Farm and the Children’s Hospital of Philadelphia found that 75 percent of fatal accidents caused by teen drivers were because of three mistakes:

●     Driving too fast for road or weather conditions.

●     Not paying attention to the road and what may have been coming ahead or from the side. 

●     Being distracted by something – or someone – inside or outside the vehicle.

More than half of all fatal teen accidents are one-car crashes, and the main factor is excessive speed.  Driving too fast coupled with inexperienced teen drivers’ tendency to misjudge a curve or bump in the road results in thousands of fatal accidents every year.

To make sure this kind of tragedy doesn’t befall your family, sit down with your teen and make a contract specifying they are not to drink or use a cell phone for talking or texting while driving. 

You may also want to send your teen to a safe driving school.  The American Automobile Association (AAA) is just one of several organizations that offer classes in safe driving for teens.

Our focus is the well-being and care of your family, no matter what.  If you would like to have a talk about protecting your family through legal 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.