Partners in small businesses that are engaged in the process of estate planning can be faced with a tricky situation. If you were such a partner you would probably want the value of your business to be spread among different family members after your passing. So, this business interest would have to be sold to provide the necessary liquidity.
But, how will your partners feel about this? They would be forced to deal with whoever it is that purchased your share in the business whether they feel comfortable working with this individual or entity or not.
The way that situations such as these are often addressed is through the creation of buy-sell agreements. These agreements utilize the purchase of life insurance to allow the remaining partners to buy the share of the deceased partner from his or her family.
With the cross purchase plan each of the co-owners in the business takes out a life insurance policy on every other. After one of them dies the combined insurance policy proceeds are used to buy the share that was owned by the deceased individual from his or her family.
Another type of buy-sell agreement involves the business itself taking out life insurance policies on all the co-owners equal to the value of each respective share with these proceeds being used to buy the share of the deceased partner from his or her heirs. This approach is called the entity plan.
Buy-sell agreements can provide a relatively simple solution in some cases. To learn more about small business succession planning, simply take a moment to arrange for a consultation with an experienced and licensed Reno estate planning attorney.

When you consider the subject of estate planning it is useful to recognize the fact that it is an ongoing process. Your initial estate plan is going to be based on a snapshot of your life as it existed at that time. Clearly, things do not stand still and events happen in your life that often times render your existing estate plan obsolete. Things like changes in marital status and additions and subtractions to the family would fit this description.
In addition, there are things that take place that are out of your control that affect your estate planning efforts. Legislative changes that impact the tax code are among them, and with this in mind we would like to take a look at the lay of the land at the present time.
The estate tax and the gift tax are unified, and at the present time there is a $5 million unified exclusion. So if your estate and any gifts that you have given utilizing your unified exclusion do not exceed this amount no estate or gift taxes will be levied. Estates or gifts exceeding the exclusion are taxed at 35%.  Keep in mind that any gift exceeding the annual exclusion amount of $13,000 per person, reduces the estate tax exemption by the amount of the gift.
Those parameters are only in place through the end of next year.  At that time the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 will expire and the rate of the tax will rise to as much as 55% while the unified exclusion is reduced to just $1 million.
So, this presents an interesting situation. The $5 million exclusion becomes a $1 million exclusion when 2013 arrives, so it would be logical to consider giving gifts to your loved ones in 2012 before the exclusion is reduced.
Of course it is possible that changes to the laws could take place at any time, and this is another factor to consider. Clearly, the pending reduction of the exclusion is food for thought and it is something to discuss with your estate planning attorney.

Inheritance planning is really a comprehensive endeavor and it entails more than simply directing the transfer of assets via the execution of documents. There are numerous practical considerations that require communication with family and loved ones. Some feel as though they will always have time to communicate their wishes at some point in the future when they have more time. For many the topic of death is s difficult topic to discuss. Though these concerns are certainly understandable, procrastination can leave your loved ones in a difficult situation. You never know what lies ahead and this is what intelligent and comprehensive advance planning is all about.
It is a good idea to ask yourself what your family members would be faced with if you were to pass away on a purely practical level. Are there keys to vehicles and perhaps real property that they should have or be able to obtain? Do you have a safe deposit box? If so, who has access to it? Documents are another matter to consider. Do your your family members know where to find documents that would be relevant to them if you were to pass away? Who has passwords to accounts and other information on your computer files?
Since we live in the digital age a lot of people have important passwords and usernames that their loved ones would need if they were charged with the responsibility of handling the final affairs of the deceased. This can include social network identities as well as business relationships.
These are just a few specific things to keep in mind. Take time to compile a list of items that you should communicate to your loved ones so they will be prepared to handle the practical matters that they will face when the inevitable ultimately takes place.

There are a lot of details to take into consideration when you are planning your legacy, and the best way to address them is with the assistance of an experienced estate planning attorney. Rather than being consistently confronted with a series of unanswered questions as you think things through it is much simpler and more efficient to sit down with a legacy planning professional and work through the process from an informed perspective.
Experienced estate planning attorneys know how to proceed under any circumstances and they also understand how to adjust your estate plan on an ongoing basis as changes both within your life and throughout society as a whole take place that impact your existing plan.
One of the intricacies that people often face when they are engaged in inheritance planning involves providing for minor children. There are a number of different ways to proceed, and one of them would be to create a trust and make the child the beneficiary.
You can stipulate whatever you would like to in the trust with regard to what expenditures the trust is empowered to make in behalf of the child while he or she is still a minor. The grantor could then go on to set forth the terms for distribution of assets after the child becomes a legal adult.
Some people allow for the transfer of the total lump sum when the child reaches a particular age, and others arrange for more gradual distributions. You could even choose to include incentives such as allowing for regular distributions while the beneficiary remains in college with a lump sum to follow upon graduation.
Short of creating a trust you could name a property guardian in your will or appoint a custodian under the Uniform Transfers to Minors Act. At a minimum, parents of minor children must have a will where a guardian of the person of your children can be named.
Providing for minor children is an important part of many estate plans. If you would like to learn more details, simply arrange for a consultation with an experienced estate planning attorney.

Estate planning involves consideration of the time when you are incapable of making your own decisions or when you are deceased. This requires the choice of representatives to administer your estate. One of those representatives includes your trustee or personal representative. If you have a trust or will then you have selected someone to perform the hands-on tasks involved in administering your estate. This individual should possess a certain measure of business acumen to handle all of the affairs of the estate. Property will be liquidated in most cases, there will be bills to pay, and the executor will have to bring in a probate attorney and in many cases an accountant and an appraiser. It is natural for some people to automatically choose someone close to them to be a personal representative, but it is not merely a ceremonial role. The practical responsibilities that accompany this title is something to take seriously.
There may come a time when you can no longer make sound medical and financial decisions for yourself. To address this issue you should be prepared with a durable power of attorney for health care and a durable financial power of attorney. Again, you should consider your choice of representatives carefully. You don't have to select the same person to serve both roles. In many cases the best financial mind is not going to be the person that you would like to see making your medical decisions.
Choosing the people who will take care of your affairs upon your death or incapacity is an important part of the process of estate planning. Careful consideration should be given to who who would fill these important roles in your estate plan.

There are a number of misconceptions about estate planning that are simply not true. One of them involves the notion that the estate tax only applies to the "rich." First of all, how is the word "rich" being defined in this context? Multi-billionaires may easily fit this description. However, would you consider yourself rich if you and your spouse accumulated say $2 million over the course of your lives, including any inheritances you may have received? Most people would say no, but if you had an estate valued at $2 million and you took no estate planning steps your estate would be subject to approximately $550,000 in estate taxes if you died in 2013 as the laws stand right now.
Another misconception is that legal representation is too expensive to be worth it. In reality, most people are going to save far more money than they pay when they work with an estate planning attorney. This is why wise people retain legal counsel to assist with their estate planning.
Also there are common sources of asset erosion that can be avoided or minimized, such as the estate tax and probate expenses. You also would want to make sure that your wishes aren't challenged. These are only some of the many reasons why you would do well to work with an experienced estate planning attorney.
The last misconception we will address is the idea that you can establish your own estate plan using general template documents. Estate planning even for very modest estates generally involves many complex considerations that simply cannot be provided for by a form. Many estate planning issues are unique and very personal. The nuances of these types of issues can only be properly identified and addressed by an experienced estate planning attorney.
 

The last will is a document that most people are familiar with and is the most common estate planning tool. In fact, many movies have romanticized the proverbial "reading" of the last will of a deceased family member. We can all imagine a family gathered in a lawyers office as the will is read, letting each person know what they received, or did not receive, from the estate.
Most people know that there are other legal instruments that can be utilized. But a lot of them are under the impression that only people of extraordinary wealth need to step outside of the tried-and-true last will as a primary vehicle of asset transfer.
In reality, people of ordinary means may want to consider alternatives to a last will when they are making plans for the future. There are a number of reasons for this, but the most compelling one is the fact that your estate must be probated if you use a last will.
The process of probate can slow things down considerably. During this interim the probate court examines the will in an effort to determine whether or not it is valid. So, at this time interested parties who may not agree with the contents of the will could step forward and present challenges. This can result in a long and drawn out legal struggle. Just think back to the case of Anna Nicole Smith. That battle was just resolved last summer some 15 years after it began.
Probate is also a source of asset erosion. There are costs that the estate will incur while it is being probated. Depending on the size of the estate, the nature of the assets contained therein, and whether or not there are any challenges costs could reach 4-8% of the total value of the estate and in some cases even more.
Most people are not going to be fully informed when they start making plans for the future. The worst way to plan is to rely on Hollywood's representation of what an estate plan should look like. The best way to gain an understanding of how to proceed given the unique nature of your circumstances is to consult with an experienced, savvy estate planning attorney.

You find individuals who are in difficult positions sometimes pointing fingers at others who are enjoying a comfortable retirement or benefiting from an estate plan that was intelligently conceived by their loved ones. They say that these people are "lucky" and decry their own lack of such luck. But in reality, those who have no worries simply benefited from proactive, pragmatic planning. And of course they had the self-discipline to stick to the plan. It is as simple as that.
Our law firm understands this to be true and we try to educate people and encourage them to take action so that they can avoid the pitfalls that invariably accompany a lack of preparation. Unfortunately, a very high percentage of Americans ignore this advice and go through life without making important preparations for the future.
The results of a Harris telephone survey that was released at the end of 2009 shed some light on the subject. A total of 1,022 adults responded, and a mere 35% had composed a last will to elucidate their final wishes. Just 29% of the people who were interviewed said that they had a living will in place.
Merely 24% of people under 35 had executed at least one of the commonly recommended estate planning documents, and of course you would expect younger people to be less prepared. However, a surprisingly high 23% of people surveyed who were over the age of 55 had executed no estate planning documents at all.
Clearly, a lack of appropriate planning has reached epidemic proportions. When you shirk this basic adult responsibility, for the most part it is your family members who are going to suffer after your death or incapacity. This is a serious matter, and if you do not presently have at least a basic estate plan in place, do take action and arrange for a consultation with an estate planning attorney before it's too late.

When you are serious about making informed plans for the future you have to be aware of all of the options that are available to you and how to use them effectively. Depending on the resources that you have and what your legacy intentions are some of the instruments that would be useful are rather complex. So, unless you are in the field of financial planning or elder law you probably are not going to have a comprehensive understanding of the challenges that exist and the appropriate responses that are typically utilized by estate planning professionals.
This is why it is important to develop a good working relationship with a legacy planning attorney you can trust. He or she will gain an understanding of your wishes, evaluate your assets, and make the proper recommendations so that your legacy goals will eventually come to fruition.
One of the tools used that can provide tax savings as well as asset protection is the charitable remainder unitrust, which in estate planning circles is often shortened to the acronym CRUT. You create and fund the trust and name both a charitable and non-charitable beneficiary. The non-charitable beneficiary must receive annuity payments equal to between 5% and 50% of the fair market value of the trust annually, so most people are going to act as their own beneficiary. You could serve as the trustee as well.
At the end of the trust term, which can be upon your death if you choose to set up the trust in this manner, the charitable beneficiary assumes the remainder that is left in the trust. This remainder must equal at least 10% of the original fair market value of the CRUT.
Assets that are placed in the trust are no longer the personal property of the grantor so they are protected from creditors and claimants. From a tax perspective, the act of funding the trust reduces the value of your estate for estate tax purposes. And there are also capital gains tax advantages if you fund the trust with appreciated securities. In addition, you are entitled to a charitable deduction, the amount of which is determined by the application of IRS rules regarding charitable remainder unitrusts.
If you have an estate that will likely be subject to an estate tax at your death, make an appointment to meet with a legacy planning attorney to discuss a CRUT or other methods of reducing your taxable estate.

People often tend to procrastinate before they take action and execute the appropriate estate planning documents. Their reasons vary, but it is human nature to prioritize things based on how immediately relevant they may seem.
The current average life expectancy in the United States is over 78 years. So when you are in your 30s, 40s, and 50s you may simply think that you have plenty of time to plan your estate at some point in the future. You may even think that it is better to wait because of pending or unknown factors concerning your estate. The reality is that if you pass away without an estate plan you are potentially leaving your family members a very difficult situation to deal with.
When some finally take the plunge and work with an estate planning attorney to create a plan they put their documents in a lock box mistakenly believing that they are done. It is likely however that your estate plan will need updates as your life changes. For instance your family may experience additions or subtractions through marriages, births, deaths or divorces. The development of a disability by a beneficiary would also require special planning techniques.
Estate planning is best viewed as an ongoing process rather than a one-time event. For this reason it is a good idea to develop a working relationship with a qualified estate planning attorney which will last throughout your life.

If you want to pass a proper legacy and be comprehensively prepared for all the contingencies that you may face during the latter stages of your life, it is wise to think long-term.  You hear people throw around the term "luck" quite a bit, but the wise individual knows that you make your own luck. When you see people who are enjoying a comfortable retirement while being able to leave significant bequests to their loved ones they probably didn't find themselves in this position by accident.
Yes, there are people who win the lottery and there are a few who come from very wealthy families. But for the most part, successful people devise intelligent long-term plans and stick to them. If you stick your head in the sand and simply hope for the best you may find yourself completely unprepared as you near what most people would consider to be the typical retirement age.
In fact, you may be surprised to hear just how unprepared a lot of people are. There was a poll conducted recently by AP-LifeGoesStrong.com that was intended to get an idea of how prepared baby boomers are for retirement. One fourth of the people who responded had no retirement savings at all, and a similar percentage said that they would never retire. Because of the fact that the baby boomer generation is reaching retirement age 10,000 people are applying for Social Security every day, and this is supposed to go on for the next 20 years.
So when you combine the facts above you can see that large numbers of people are completely unprepared for retirement. Long-term planning is the key to being able to meet your financial responsibilities when you reach an advanced age while retaining a suitable legacy to pass on to your loved ones. If you do not currently have a solid long-term plan in place, now is the time to get in touch with an experienced legacy planning attorney to arrange for an initial consultation.
 

Life insurance is a very important and useful element that is included in most estate plans. The most common use for life insurance is as an income replacement vehicle, and it is vital for people who have family members relying on their income. Even if you are relatively young, there are no guarantees and the well-being of your family is at risk if you do not have adequate coverage.
In addition to its value as an income replacement vehicle, life insurance is used in estate planning for other purposes as well, and one of these is to balance inheritances. We will explain what this means by way of example.
Assume that you are the owner of a successful small business, and the value of the business is by far your most significant asset. You have two children, a son named Doug and a daughter named Deborah, and you want to leave them equal inheritances. Doug works in the business, loves the job, and has expressed his desire to assume ownership upon your passing. Deborah has never worked in the business and has no particular interest in it.
A solution for scenarios like this would be to utilize life insurance to balance the inheritances. You take out a life insurance policy on your own life in an amount that is equal to the estimated value of the business, and you make your daughter Deborah the beneficiary. When you ultimately pass on, each of your children will receive an inheritance of similar value.
Enabling the balancing of inheritances is just one of the ways that life insurance can play a role in your estate plan beyond serving as a vehicle of income replacement. To learn more about this and comprehensive estate planning in general, simply arrange for a consultation with an experienced estate planning attorney.

Former American Idol judge, Simon Cowell, has been in the news lately because he announced his intent to have his body cryonically frozen after he dies. Cryonic technology allows for preserving the human body after death by a type of freezing procedure. Individuals who opt for this procedure do so in hopes that technology to revive them will be developed some point in the future.
The current cost for this procedure is substantial. It can cost from $10,000 to have just the head preserved up to about $200,000 for the full body. Companies that provide the service recommend that the cost can be addressed through the purchase of life insurance, which should be affordable if purchased at a relatively young age.
From an estate planning perspective cryonics presents some interesting questions. One such question may involve property rights. How would the law address the property rights of an individual whose estate has already been administered but was later brought back to life?
Cowell has helped bring cryonics and some interesting legal implications into the public consciousness.

There are people who think that things will take care of themselves as the years pass, but the reality is that each of us must take responsibility for our own futures. There is more to planning for the latter stages of your life than simply anticipating your Social Security check and drawing up a last will.
You will eventually have to fund your retirement years if you do in fact expect to retire, and Social Security, even if it still exists in its present form by the time you retire, is probably not going to be enough. So if you want to be truly prepared you must anticipate your expenses and devise a plan that enables you to meet them comfortably.
There's also the possibility of incapacity. Approximately four out of every ten people who reach the age of 85 are suffering from Alzheimer's disease according to the Alzheimer's Association. Alzheimer's causes dementia, which can make it impossible for its victims to render sound financial, personal, and medical decisions. If you were to become incapacitated without making any advance plans, the court could appoint a guardian of its choosing to act in your behalf and you would become a ward of the state. This is a possibility that can be circumvented through the execution of the appropriate durable powers of attorney.
Of course there is also the matter of your legacy. Do you have specific things in mind that you would like to be able to do for your family members as your final act of giving? Do you perhaps have the desire to give something back to your favorite charitable organizations? If you do, these intentions will have an impact on your budgeting for the period of time that precedes your passing.
Because of all the different matters that must be addressed, it is a wise idea to tap into the expertise of an experienced estate planning attorney who has a thorough understanding of retirement and estate planning. He or she will advise you appropriately so that you can be sure that all of your bases are covered as you enter the latter portion of your life.
 

When you are engaged in legacy planning you are likely to recognize the fact that the period preceding your death is going to have to be planned for as well. Long-term planning that includes your retirement, your twilight years, and the ultimate distribution of your assets after your death is key if you want to be completely prepared. Mapping out an intelligently conceived path with the assistance of an estate planning attorney is clearly the prudent course of action. People who seem to have all of their ducks in a row as they get older are not lucky; they had the foresight to plan ahead.
One of the things that you need to take into consideration is the high cost of long-term care. According to the United States Department of Health and Human Services seven out of every ten Americans are going to need some form of long-term care eventually. There are a lot of people who don't care about this because they are under the impression that Medicare will take care of all of their health care needs once they reach the age of 65.
This line of thinking can get you into trouble because Medicare does not cover long-term care. Medicaid does cover it as the laws stand today, but many people are going to have to plan very carefully to qualify while still retaining a significant portion of their assets.
Another thing to consider with regard to the eventualities of aging is the possibility of dementia setting in. The oldest old (people 85 years of age and up) are the fastest growing age group in the United States, and upwards of half of people who reach this age are suffering from some degree of dementia. Planning for possible incapacity is important, and this is a matter to discuss with your estate planning attorney.
 

Making sure that your assets are properly prepared for distribution to your loved ones after your passing can be an involved matter. Because there's so much to take into consideration it is easy to look past some of the finer details. If you are a pet owner, making sure that your dog or cat is provided for after your passing may be one of these matters that gets lost in the shuffle. You may just assume that it is something that will take care of itself, or that you will outlive your pet. While it is possible that someone would simply step forward and care for the pet or that you will outlive it, it is best to make the appropriate arrangements "just in case."
It should be mentioned that pet ownership can be very beneficial for senior citizens. Many of our elders get lonely, and of course a dog or cat can be your best friend and provide some much-needed companionship. When you are retired and your children and grandchildren are no longer directly depending on you, you can be hard-pressed to find a sense of purpose. Caring for a pet can provide this life-affirming feeling. In addition, some types of pets can provide protection, even if it is simply by barking to alert its owner of unusual sounds coming from outside the residence.
To provide for your pet after your passing you must first identify a suitable caretaker. You may simply want to ask a family member or friend that you would consider to be a likely candidate. You then must make financial arrangements, and this can be done by simply leaving a bequest to the caretaker in your will. Another option would be to create a pet trust that will finance the care of your pet throughout its life.
To find out more about pet planning and pet trusts, simply arrange for an initial consultation with an experienced estate planning attorney.

The Internet plays a large role in the lives of many people these days, and this has an impact on the field of estate planning. For one thing, the advances that we have made allow for the rapid transfer of information. You can find out how to do just about anything by simply typing a search term into your favorite search engine. In addition, there are software programs that can simplify many tasks and this too has helped to make our lives easier and more efficient.
However, legal matters such as estate planning are not something that should be done without the direct assistance of an experienced estate planning attorney. You can certainly gain a general understanding of the options that are available to you by searching the Internet, and this is something that is totally encouraged.  Having a basic understanding of the lay of the land when you speak with your estate planning attorney can only aid the conversation. But in the end it is going to take the expertise of a professional to make recommendations and ultimately execute the appropriate documents.
In addition to this, these days a lot of people conduct a significant portion of their business over the Internet. Paperless billing and paperless bank statements are very common, and a lot of people tend to manage their brokerage accounts and bank accounts online. There are also those who have eBay accounts and PayPal accounts, and of course countless people animate social networking identities. All of these things must be taken into account when you are planning your estate. You're going to have to record passwords and usernames for these accounts and provide a person or multiple people of your choosing with a list of them so they so that they can be accessed.
This is largely matter of common sense, but it is something that could be overlooked. To find out about the legalities involved, arrange for an appointment with an experienced estate planning attorney.

We often talk in estate planning circles about preparing your assets for distribution to your loved ones. Depending on your personal wishes and the size and scope of your estate, in most cases this is going to refer in large part to your children and grandchildren. However, we live in an era when the typical family is not necessarily comprised of a single patriarch and matriarch. These days more than 4 out of every 10 marriages ultimately terminate in divorce. Divorce itself creates the need for an estate plan update, but the reality is that most of the people who get divorced eventually remarry.
The majority of these people have children from their previous marriages, which results in what are called blended families. If you are in this situation, there is a lot more to consider from an estate planning perspective. Depending on the dynamic that exists between the people who are getting married a number of different courses of action may be appropriate.
The thing that most people are concerned with more than anything else is making sure that their children from their previous marriages are provided for. For this reason and others, many people who are bringing considerable assets into such a marriage have the desire to separate their personal property from the community property that will result from the marriage. This can be accomplished through the execution of a pre-marital agreement, and some people will choose to create trusts in an effort to protect assets.
The QTIP or Qualified Terminable Interest Property Trust is one type of trust that is often used in these cases. These trusts provide the surviving spouse with income for the rest of his or her life. But, the grantor of the trust names the beneficiary or beneficiaries who will assume ownership of the assets after the death of the surviving spouse. This would presumably be his or her children.
Estate planning for blended families can be somewhat complicated, but there is an efficient solution for every possible scenario. It is just a matter retaining an estate planning attorney who is experienced and savvy when it comes to blended family planning.