If you are serious about your legacy you must plan ahead with the future in mind. Long-term financial planning is going to involve goal setting. You should do the math and figure out exactly how much wealth you must accumulate to be able to reach the fruition of your goals.
The sooner you get started along a path that leads to financial freedom the better because intelligent choices over a sustained period of time will be necessary if you are going to be able to fulfill your objectives.
This may sound like a no-brainer, but so many people find themselves completely unprepared for retirement. As a result, they suffer financial hardship and ultimately pass away without being in a position to leave anything behind to their loved ones.
A study was recently conducted by the National Bureau of Economic Research and the results were not encouraging. Researchers found that some 46% of people in the United States die in possession of less than $10,000 worth of financial assets. As you might expect a lot of these individuals were almost entirely dependent on government programs during the end of their lives.
The difference between success and hardship can often times be reduced to a single word: planning. If you want to retire in comfort and leave behind a lasting legacy the key is to work within an intelligently conceived framework and exercise the discipline that it takes to actually realize your vision for the future.
There are those who are more practical than they are sentimental. Some of these individuals will be very careful about making sure that they are distributing their resources among their heirs in a fair and equitable way.
At the same time, however, they may not put appropriate care into evaluating how they pass along items that could have sentimental value to some of their family members.
The cases of siblings and others having had long standing feuds over certain items about which they both felt strongly are numerous. Jane may say that the old portrait of dad as a boy was promised to her and so does her sister Deborah.
For this reason it is a good idea to evaluate your personal possessions carefully and ask yourself who would be the ideal recipient. Some people will include something in writing that explains the choices, and this can be quite meaningful as you share memories. With the proper formalities, making such a list can be as valid as a will or a trust. Your estate planning attorney will know the rules for making such a list. As informal as it is, it can be perfectly valid.
Sentimental items do not have to be things that are of great monetary value. It can be something as simple as a particular photograph, an old baseball glove, or a certain special book.
This is just one thing to consider when you are making preparations for the future. To devise a comprehensive estate plan the intelligent first step is to sit down and discuss your intentions with a licensed and experienced Reno NV estate planning lawyer.
Your attorney will gain an understanding of your wishes, evaluate your resources, and provide you with a personalized plan that will make your wishes become a reality when the appropriate time arrives.
There are those who like to roll up their sleeves and do things for themselves, and there is nothing wrong with taking some matters into your own hands when it is appropriate. In a lot of cases you save money while you actually enjoy completing a DIY project.
It is important, however, to know where to draw the line. When it comes to drafting sensitive legal documents you would probably do well to steer clear of do-it-yourself documents, even though they are sold on the internet.
When you use Last Will worksheets and downloads that you find on the web you are leaving a lot up to chance. In fact, Consumer Reports magazine advises against utilizing these online outlets for several reasons.
They consulted with three different legal professionals who examined Last Will documents that were constructed utilizing the products that are offered by three of the leading do-it-yourself legal document websites. Their conclusion was that the wording could be misconstrued and that conflicts in clauses could be contained within these Last Wills. Many of these companies do not take into account the specific laws of your state, so it unnecessarily extends the probate case.
Consumer Reports ultimately stated that it is best to engage the services of a qualified estate planning lawyer when you are planning your estate rather than depending on a download that you find on the internet.
So the bottom line is this: Yes, anyone can legally draw up a last will. However, if you want to be certain that it actually stands up in probate court and will distribute your assets according to your wishes, it is best to draw up your last will with the benefit of expert guidance.
While we would all like everyone in our families to get along perfectly at all times reality is something different for most people. Many families are comprised of very different types of personalities, and in fact blended families can include individuals who really don't have a whole lot in common.
And even if you have a relatively small family that is close-knit each person simply may not agree about certain courses of action.
This is why it is important to state your wishes about the use of medical procedures if you were to fall into an irreversible terminal condition. The case of Terri Schiavo several years ago underscores the importance of executing a living will.
In addition to this there is the matter of final arrangements. There are a lot of decisions that must be made with regard to your funeral and the handling of your body. Exactly how to proceed can be a matter of debate unless you are very clear about your wishes when you are devising your estate plan.
These are details that can sometimes be overlooked by people who are primarily focused on asset transfers. The best way to make sure that all of your bases are covered is to work with a licensed estate planning lawyer who will guide you through all the details and see to it that nothing gets overlooked.
Life is precious and longevity is welcomed by most, but there are also some challenges that go along with it.
When you live to an advanced age you may outlive your spouse, siblings and extended family members and friends. If you are long retired you probably don't have regular interaction with coworkers. As a result, loneliness can set in.
If you find yourself in this position you may be able to fill the void by adopting or buying a dog, cat or other pet. In one fell swoop you have a best friend for life who will provide you with all sorts of benefits.
Along with the companionship you also have a reason to get more exercise, which can be great for your physical and mental health. Plus, you have an innocent and vulnerable animal depending on you, which can provide you with a sense of purpose that really adds something to your life.
Seniors who question whether or not they could handle a pet, physically, can select a smaller breed. If you were to adopt a dog, for instance, that is under 25 pounds you would likely have no physical problem.
When it comes to providing for the pet after you pass away you should consider the creation of a pet trust. If you fund the trust adequately and select the right trustee and caretaker, your pet will be set for the rest of its life even after your passing.
If you would like to learn more about pet trusts and other pet planning possibilities, simply take a moment to pick up the phone to arrange for a consultation with a qualified Reno NV estate planning lawyer.
As estate planning lawyers , we often remind their clients about the need to take action with regard to updates when life changes take place. One of these is a change in marital status. If you don't take the appropriate action you could be leaving behind quite a tangled mess and people that you love may suffer the consequences.
The matter of the estate of popular painter Thomas Kinkade is a case in point. The self-proclaimed "Painter of Light" died on April 6 of this year at the age of 54 due to acute intoxication via the use of alcohol and Valium.
Kinkade's estate was estimated to be valued at around $66 million when he passed away but of course earnings will be ongoing as his work continues to sell.
About two years prior to his death Kinkade's wife Ninette filed for divorce but it was not finalized at the time of his passing so he was legally married. The couple had an estate plan in place and it was professionally prepared.
However, Kinkade had a live-in girlfriend named Amy Pinto-Walsh. She has produced handwritten wills signed by Kinkade that leave her $10 million and some real property.
Nanette is going to contend that these documents are not valid because her husband was not of sound mind when he executed them. Experts say that the holographic wills must have been authored when the painter was extremely intoxicated given the poor nature of the handwriting.
Clearly, you must make the appropriate changes when you enter into a new relationship if you want to provide for your significant other. Impairment, however, may occur from the effects of intoxication as from dementia. Given the nature of this issue and the amount of money involved, we can expect expensive legal wrangling for a very long time.
It can be quite an exciting and challenging adventure to go into business for yourself. As we all know the majority of start-ups do not succeed in the long run so you have to defy the odds to gain traction and become successful.
Because of the demands involved in starting up a business how you will be exit the business may not be the first thing on your mind. However, once you know that you are in fact going to be in it for the long haul you should ask yourself how you or your estate will proceed when it is time to retire or after you pass away.
The way you approach this is going to vary depending on the type of business you are in. Some businesses are owner driven, such as professional practices and they are not really viable after the exit of the owner. Other businesses will continue to operate after the owner steps away. Some plan on handing the business off to the next generation. Others intend to sell the business to finance their retirement years. Partners in small businesses have yet a different set of circumstances to address.
The best way to explore your options and ultimately devise an exit strategy is to sit down with an experienced Reno NV estate planning attorney. Your lawyer will gain an understanding of your unique situation, listen as you explain your objectives, and give you the appropriate advice.
If you have taken the time to create a comprehensive estate plan, you are ahead of millions of Americans. The next step may be to sit down and talk about your plan with your family. Creating a plan may not work out as you planned if your family ends up in a bitter court battle once you die over the terms of the plan. Talking to them now may prepare them for what is to come.
Most people struggle with whether discussing their estate plan with their family is the best decision. Only you can ultimately answer that question; however, there are many reasons why you may wish to do so.
If you anticipate that someone in the family will not be happy about the terms of the plan, sitting down now and discussing the terms may help that individual come to terms with it. If, for example, you have given one child more than another child as part of your estate plan, explaining why you chose to do so may help ease the anger or hurt caused by the decision. By the same token, if you have chosen to donate a significant portion of your estate, or leave the funds to someone other than your children, they should now this ahead of time so that they can plan accordingly.
On the other hand, if you plan to leave a significant amount of your estate to a beneficiary who may not be expecting it, it may also be helpful to discuss your plans and advise the intended beneficiary how best to handle the inheritance. Either way, the best way to ensure that your plan unfolds as you want it to is often to make sure everyone knows what to expect.
Same sex partners face estate planning challenges that opposite-sex partners do not face. The obstacles that create these challenges, however, make estate planning even more important for same sex partners than for couples in a traditional marriage.
The Defense of Marriage Act, or DOMA, must be considered whenever a same sex couple sits down to work on an estate plan. DOMA impacts a same sex couples’ estate plan in two very significant ways. First, it gave states the legal ability to refuse to recognize a same sex marriage even if it was legally performed in another state. Second, it established that the federal government does not recognize any same-sex marriages, civil unions, or other relationship designations.
Because the federal, and most state, governments do not recognize same sex marriages, the partners must plan accordingly. A surviving spouse, for example, can roll over an IRA without incurring taxes and delay distributions. A same sex partner does not get this favorable tax treatment.
Purchasing life insurance may not be a viable option for same sex partners. Many states require the purchaser to have an “insurable interest” in order to be able to purchase a life insurance policy. Often, a same sex marriage, civil union, or other type of partnership does not count as an “insurable interest”.
Care must be taken to avoid over-gifting. Opposite sex partners can take advantage of the unlimited marital deductions for gift tax purposes, but same sex couples do not have this option. Over-gifting could result in a hefty gift tax bill.
Many of us grew up listening to “The Monkees” and watching their comedy sketch shows. Many of us remember the introduction to their television show (“Hey, hey, we’re the Monkees, and people say we monkey around . . .”)
The Monkees were so popular with teenagers, especially female teens, that the term “Monkeemania” was coined to describe the mania displayed by teenage fans. Davy Jones was probably the most famous of all the Monkees. Jones went on to pursue a successful solo musical career and acting career.
Davy Jones died on February 29, 2012 at age 66 of a heart attack. He left behind several children and his third wife. Jones married his third wife only a few years before his death. However, sources say that he may not have included her in his most recent will. According to news sources, Davy Jones last revised his will in 2004, several years before he married his third wife, Telemundo actress Jessica Pachecho. When they wed, Jones was 63, while she was only 32.
Unfortunately, we may never find out the details of the famous Monkee’s probate records because of the unusual decision by a Florida probate judge to grant a motion to seal the singer’s records filed by his eldest daughter.
As reported by the National Association of Counties and the National Association of Medical Examiners, families everywhere are unable to afford the costs associated with burying their loved ones. Unable to afford their funeral services, some families have decided to forgo claiming their loved ones altogether. Some relatives have no choice but to leave their loved ones’ remains unclaimed at their local coroner’s offices. There is also an increase in the numbers of cremations. Traditionally, cremation services are less expensive than funeral services with open or closed caskets.
Many communities sponsor programs that offer low-income families reduced cost or free funeral services. If you’re unable to pay for a loved one’s burial services, you may want to consider asking for donations in lieu of flowers. You may also be able to qualify for some low-interest or no-interest payment plans if offered by your local funeral home.
With this in mind, this article may be your reminder to look into pre-need funeral planning to be certain your family is not left with the financial burden when the time arrives. It is one of the easiest items to check off your to do list, but also easy to postpone. No need to procrastinate; take care of this obvious need right away.
Estate planning for a married couple can be complicated under the easiest of circumstances. When the couple has a significant age gap between them, estate planning can get even more complicated. With an age gap of ten years, for example, it is more than likely that the two will not be retiring at the same time, may not need long-term care at the same time, and may not have similar financial portfolios.
When a married couple who are roughly the same age sit down to create an estate plan, both incomes and financial portfolios can typically be combined, working under the assumption that the pair will face about the same issues at about the same time. When one spouse is going to retire at a time when the other spouse is at the height of his or her career, both financial and estate planning become more complicated.
Without careful estate planning, all of one spouse’s income could be spent paying for long-term care for the other, for example. Retirement planning may also be skewed because the couple will have an artificially high retirement income for a number of years before the younger spouse retires.
If you are part of an age gap marriage, make sure you sit down with your financial advisor as well as your estate planning attorney to make sure that the age difference is taken into consideration when looking at both your financial future and your estate plan.
An amazing percentage of Americans do not have a comprehensive estate plan. Unmarried individuals are even more likely than married people to put off creating an estate plan, including a simple Last Will and Testament. Contrary to what many single people think though, an estate plan is every bit as necessary to a single person as it is to a married individual.
If you die without leaving behind a Will, the state intestate laws will determine what happens to your assets. While state laws vary, this likely means that your parents or siblings will be first in line to inherit unless you have children. These may not be the people you want to inherit your estate. Just because you are single doesn’t mean you do not have close relationships and emotional ties to people. Maybe you have nieces or nephews that you are close to or even a friend's children to whom you would prefer to leave your assets. This can only be accomplished by creating an estate plan.
What may be an even bigger issue is what will happen to you and your assets if you become incapacitated. Physicians are required to follow federal laws that forbid divulging a patient’s medical information to someone who is not legally authorized to receive the information. If you have not executed a living will, or similar document, a court battle could ensue to determine who will make medical decisions for you if you are incapacitated. In addition, without proper estate planning, the same could happen for the right to control your assets.
Being single is not an excuse to put off creating an estate plan. On the contrary, it is often precisely why you do need a plan.
Although saddened that a loved one is gone, most people are not going to turn down an inheritance. There are, however, reasons why you may want to do just that. If you do decide you do not want an inheritance, you may have to submit the proper paperwork to a probate court and/or the Internal Revenue Service to properly disclaim an inheritance.
A sudden windfall can present problems. For some, it can cause disqualification for much needed programs such as Medicaid or SSI. If the decedent failed to create an estate plan that considered the tax ramifications of the gift, that can also create a problem. An individual, for example, may inherit from a deceased spouse. This gift may not be subject to a federal estate tax due to the unlimited marital deduction, but the receipt of the deceased spouse share of their estate may cause the surviving spouse's estate to be subject to the federal estate tax at the death of the second spouse. By disclaiming the inheritance, the assets may pass to an exmpet trust established for the benefit of surviving spouse or if the couple did not have a trust to the next in line to inherit, often a child. In either event, the disclaimed funds would not be subject to estate tax at the death of the second spouse.
If you find yourself in a position where your estate may be subject to estate taxes at your death talk to a qualified estate planning attorney before you accept more assets from another estate to see whether discliaiming is a viable option.
When it comes time to sit down and create or update an estate plan, married couples are faced with the decision whether to create a joint plan or create two separate plans. Ultimately, only you and your spouse can decide whether you want to combine your plans, but there are a few important points to consider.
Is this the first marriage for both? If either, or both, of you has been married before, you may have obligations from the prior marriage that make creating separate estate plans the better choice.
Do you have children from a previous relationship? Whether you were previously married or not, if either of you has children from a pervious relationship, combining your estate plans can be more complicated.
How do you handle your finances? Married couples usually decide among themselves how they will handle the day to day finances. Does everything go into one big pot or do you and your spouse maintain entirely separate accounts? If your accounts are combined, then combining your estate plans may be a natural progression.
Do you have joint assets? Whenever a married couple own joint assets, such as a home, combining estate plans often makes more sense. The transfer of ownership of those assets may be accomplished in a more efficient fashion after the death of one spouse in a joint estate plan. A competent estate planning attorney should address these and other important considerations when preparing your separate or joint estate plans.
If you are like millions of Americans, you probably own at least one pet. Have you taken the time to consider what will happen to your pet when you die? If you haven’t, now is the time to do so before it is too late.
When you die, your assets will all be secured until your executor or personal representative has the chance to inventory them and file the proper documents with the probate court. But what about your pet? Someone needs to look after your pet immediately after you die. A well meaning loved one may step in for a few days, but what happens after that? Who will pay for his or her care? Sadly, thousands of cats and dogs end up in shelters each year because their owner failed to make plans for the animal in the event of their death. You can ensure that your beloved pet is not one of these animals by creating a pet trust.
A pet trust takes all the guesswork out of your pet’s future after your death. Not only can you appoint a trustee whose job it is too ensure that the pet is well cared for, but you can also leave behind sufficient funds that are earmarked just for your pet to cover the cost of his or her care. Don’t take any chances with your pet. Take the time now to create a pet trust and give both you and your pet some peace of mind.
As recently as a decade ago, most estate planning attorneys were not using terms like “electronic estate” or “digital property” with the average estate planning client. Times have changed and so should your estate plan.
Your estate plan should cover all of your property whether it be personal or real, tangible of intangible. In the 21st century, that includes digital property. Take a minute to stop and think how much of your life is now in some sort of electronic or digital format. Family photos, your address book, your bank account and bills, are all stored electronically if your are like a growing number of Americans. Much of this digital information may be property that should be accounted for in your estate plan.
Take the time now to make a list of where everything is stored. Include websites, account numbers, passwords and anything else that is relevant. Then decide who you want to “own” your electronic estate when you die. If all of your family photos are stored in the clouds, for example, who do you want to have them when you die? Likewise, who do you want to be able to access your social media accounts such as Facebook or Twitter? Once you have made these decisions, sit down with your estate planning attorney and make provisions for your electronic estate in your estate plan. Future revisions may become necessary as the laws pertaining to digital property change.
Estate planning can be complicated and stressful. Trying to make the right decision for you and your loved ones can be a difficult process. Assuming that you have committed to creating an estate plan, make sure you don’t make any of the following common mistakes.
Gifting Too Late. If you have a substantial estate, you may not want to wait until the last minute to start gifting assets. Waiting until your death may subject your estate to hefty estate taxes. If you start years before your death, you can make small gifts each year free from gift and estate taxes. You may also be able to incorporate trusts and other estate planning tools into your plan to reduce tax exposure.
Gifting Too Early. On the other end of the spectrum, don’t give everything away to beneficiaries who are ill prepared to handle it early on. Create trusts or slowly gift assets so that your beneficiaries can adjust to the money they are inheriting.
Too Much Control. While it is perfectly understandable that you want to retain a certain degree of control over your wealth after it has been passed down, too much control can create resentment and can thwart the purpose of your gift. If you create a trust, for example, make sure that you leave some room for discretion on the trustee’s behalf since there is no way to foresee the future. If the gift has too many strings attached, the IRS may not consider it to be a gift at all.
Too Little Control. Again, don’t go too far in the other direction either. Make sure that you give your trustee some broad guidelines to work from. At a bare minimum, make your distribution schedule clear.
Not Enough Planning. Over planning can cause "paralysis by analysis." Get the process started even if you haven't resolved all the imponderables such as what happens if a beneficiary who is now 9 years old later marries the wrong person or attends the wrong college. Plan early and revisit your plan regularly. As life changes--either for you or for your beneficiaries--those changes often require changes in your estate plan. Review your plan annually and every three to five years with your estate planning attorney.
