While purchasing life insurance may seem pretty straightforward, it’s actually quite complex, especially with so many different types available. In order to offer some clarity on the different types of policies out there, we’ve broken down the most popular kinds of life insurance here and discussed the pros and cons that come with each one. READ MORE
Posts Categorized: Estate Planning
Small Business Owner? Know What Can Happen to Your Business If You Become Incapacitated or Pass Away
If you are a small business owner, your focus is likely on keeping the company running on a daily basis. While this is important, looking beyond today to what will happen if you can’t run your business should be on the top of your to-do list. If you die or become incapacitated without a customized and complete estate plan in place, you will leave your heirs without clear instructions on how to run your company. This can jeopardize the business you worked so hard to build. The right plan along with adequate insurance can help keep your business running regardless of what happens. READ MORE
What do successor trustees and executors do?
An executor, sometimes called a personal representative, is the person who is named in a will, appointed by the court, and responsible for probating the will and settling the estate. A trustee, on the other hand, is an individual or trust company named in a trust document and is in charge of the assets that are held in a trust. Assets held in a living trust avoid probate, which means that court supervision is typically not required. READ MORE
After Tax Reform, Is Estate Planning Still Necessary?
The new tax legislation raises the federal estate tax exemption to $11.2 million for individuals and $22.4 million for couples. The increase means that an exceedingly small number of estates (only about 1,800, nationally) will have to worry about federal estate taxes in 2018. However, comprehensive estate planning does a lot more than guard against you owing federal estate taxes. Other than taxes, you and your family likely face a range of estate planning challenges. Even prior to the Tax Cuts and Jobs Act, relatively few Americans needed to worry about the estate tax. However, virtually everyone will face a number of other issues, such as incapacity, medical emergences and guardianship concerns and everyone will face death. Estate Planning is very important and I look forward to giving you the peace of mind you deserve. READ MORE
Are Payable-On-Death Accounts Right For You?
A payable-on-death account, also called a POD account, is a common way to keep bank and investment accounts out of probate, the court-supervised process that oversees distributing a deceased person’s property. Most people want to avoid their estate going through probate because their heirs will receive the inheritance faster, privately, and at lower cost. Is a POD account an appropriate solution for your needs?
There are many downsides to a POD account and a there is a better solution that is more comprehensive. Here’s a comprehensive solution: establish a revocable living trust to hold your accounts. Trusts provide all the benefits and peace of mind of a POD account without any of the downsides. READ MORE
4 Warning Signs Your Elderly Relative May Be the Victim of Financial Abuse
Some of the most disturbing crimes against the elderly involve financial exploitation. While physical abuse is often easy to spot, financial abuse can be more difficult to detect, as victims often have no idea they’re being swindled until their money suddenly vanishes.
Most victims are more than 70 or 80 years old, and involve crimes like fraud, embezzlement, identity theft, along with welfare and insurance scams. If you’re caring for an elderly loved one, be on the lookout for the following red flags of financial abuse: 1) unusual financial transactions or spending, 2) appearance of a “new” person, 3) unneeded goods, services or subscriptions, and 4) changes to estate planning documents. READ MORE
IRAs, Annuities and Guardianship: Providing for Your Minor Children after You Die
Deciding guardianship for your minor children may very well be the most vexing decision you’ll make regarding your estate planning. Not only must you trust the appointed guardian to raise your children as you’d want them raised, but you also need that person to be financially responsible with your children’s inheritance. For example, if you have an IRA or an annuity that you wish to pass to your minor children, how can you ensure those funds will be used properly—especially if the person you trust most to raise your kids isn’t necessarily the best with finances? This article will unravel each aspect of this important question. READ MORE
Organizing for Tax (and Estate Planning) Season
It’s the start of a new year, which means tax season—and this year’s April 17th IRS filing deadline—is just around the corner. Soon you’ll be receiving tax forms such as your W-2 or 1099s, and you’ll start thinking about the life events that could affect your taxes in various ways. This flurry of tax prep activity is the perfect opportunity to get your estate plan in order, too, and kill two birds with the proverbial stone. Why? Because as you run down your list of “tax prep” questions, you will find that your answers could also impact your estate plan. It’s a new year, and new possibilities are in the air. As long as you’re getting started on your taxes, take a few extra moments to get the ball rolling on your estate planning as well. By getting organized in this way, you’ll be well on your way to making 2018 an amazing year. READ MORE
Why a Spendthrift Trust Can Be a Great Solution for Your Heirs
Put simply, a spendthrift trust is for the benefit of someone who needs additional assistance managing or protecting his or her money. The spendthrift trust gives an independent trustee complete control and authority to make decisions on how the funds in the trust may be spent and what payments to or for the benefit of the beneficiary are necessary according to the trust document. Under a spendthrift trust, the beneficiary is prohibited from spending the money before he or she actually receives distributions. These restrictions prevent the beneficiary from squandering their entire interest or having it garnished by the beneficiary’s creditors. The trustee controls the assets in the trust, including managing and investing the funds, once the trust is made irrevocable. READ MORE
Four Reasons Why Estate Planning Isn’t Just for the Top 1 Percent
There is a common misconception that estate plans are only for the ultra-rich – the top 1 percent, 10%, 20%, or some other arbitrary determination of “enough” money. In reality, nothing could be further from the truth. People at all income and wealth levels can benefit from a comprehensive estate plan. Sadly, many have not sat down to put their legal house in order. READ MORE
What is a Trust?
A trust is a legal creation set up to benefit someone or something. For example, some people set up trusts to benefit their children, their grandchildren, or even charities. READ MORE
Business Conflict: Tips for Settling Business Disputes Part 1
First and foremost, remember that costly conflict most often arises because the agreement process was not properly handled to begin with. The ideal time to surface conflicts is in the beginning of a relationship by creating clear boundaries and expectations, using the agreement process. The best agreement process will support both parties to share the parts of themselves they may typically hide while making an agreement, while at the same time, asking the hard questions they may not ask.
It’s often difficult to see the things we are hiding when making agreements, or to ask the challenging questions, and that’s why it’s so helpful to have a trusted advisor support you each time you are entering into an agreement with anyone, whether it be a new team member, a business partner, or a strategic partner.When the agreement process is used to create each of your agreements, and before you ever finalize a deal of any type, the number of expensive business disputes you will have will be greatly diminished, if not eliminated completely.
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Can I Benefit from a Reverse Mortgage?
A reverse mortgage is a type of loan taken out against your home. With a reverse mortgage (as with a traditional mortgage) you are borrowing against your home equity which is the difference between your home’s market value and the amount you owe on your mortgage. The difference in a reverse mortgage is that you do not have to pay it back while you are alive. Instead, the loan is paid off after you pass away. READ MORE
How Does My Annuity Fit Into My Estate Plan?
As with many estate planning and financial issues, choices you make about your annuity can make a big difference for your loved ones. You want to make sure you’re setting your beneficiaries up with the right kind of death benefits with as little loss to taxation as possible. READ MORE
Planning for the Future (Without a Crystal Ball)
If you don’t yet have a will or trust, now is the time to explore getting one. If you have an “old” will or trust, now is the time to talk with me about whether you need an update. Modern families need modern estate planning solutions, and I am ready to help you create a flexible estate plan that works now, and will work in the future, even if the current tax laws change (even though no one has the proverbial crystal ball). READ MORE