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.

Estate planning lawyers frequently emphasize the fact that estate planning is something that people of all ages should take seriously. Of course we would all like to live long and healthy lives, and the average lifespan is in fact over 78 years in the United States at the present time. So of course estate planning is going to become more and more relevant as you reach an advanced age, but there are people who pass away before their time.
Catastrophic illnesses sometimes strike, and accidents take the lives of younger people. In fact, younger drivers are more likely to be killed in accidents than older ones for the most part. Being prepared for all eventualities is important, and too many people simply don't take the proper precautions.
We all recently heard the terribly sad news about the death of British singer Amy Winehouse. She enjoyed remarkable success during her relatively brief career, capturing multiple Grammy awards while single-handedly revitalizing the British music scene. Though she appeared to be troubled, her talent was unmistakable and she will surely be missed by her fans and music lovers around the globe.
According to reports that are circulating in the British newspapers, Amy Winehouse did indeed have a solid estate plan in place unlike many other celebrities whose affairs were in disarray after their deaths. The overall value of the Winehouse estate is estimated at approximately $16.4 million, and the heirs to this estate are going to be her parents and her brother.
It was particularly important for her to engage in careful estate planning because she had an ex-spouse named Blake Fielder-Civil who may have been in line to inherit her fortune had the necessary documents not been executed, especially in light of British laws that favor former spouses.
The tragic death of Amy Winehouse underscores the reason why it is important to have a current estate plan in place regardless of your age because you just never know what the future holds.
 

The prospect of passing away is something that really doesn't cross the minds of people very often until they reach an advanced age. As a result, many individuals do not think that they need an estate plan until they reach their retirement years. It is true that the typical American lives into his or her late 70s, and in fact more and more people are living into their mid-80s and beyond. However, just because the majority of people live to see their senior years does not mean that everyone does. If you were to pass away before your time without having an estate plan in place you would probably be putting your family members in a very difficult position.
One thing to remember is the fact that the modern estate plan includes an incapacity component. If you were to become incapacitated and unable to communicate your decisions in real time with regard to things like being kept alive via the use of artificial life support systems if you were in a terminal condition, your next of kin would be faced with this decision.
This is clearly something that could be emotionally excruciating without knowing what you would do if you were capable of making your own choices. Family members could also disagree about the correct course of action, making an already devastating situation that much worse. If you simply take the time to create an estate plan that includes the appropriate advance health care directives you leave nothing to chance and record your wishes in a legally binding fashion.
People of all ages are victimized by accidents that render them incapacitated, and the fact is that younger people are more frequently involved in accidents than those who are older. Estate planning is not only about transferring assets, and it is not only for senior citizens. If you are a self-supporting adult in your own right you really should have an estate plan in place that includes advance health care directives for your own sake and for that of your loved ones.

Though there are estates that will require some complex plans, the majority of people are going to have to concern themselves with two major issues. The first one is very obvious: you must execute a vehicle or vehicles of asset transfer. The most common way to leave your property to your loved ones is through the utilization of a last will.
Though the last will is the most widely used vehicle of asset transfer, it is not always the best one. When you use a last will your estate must pass through the process of probate, which can be lengthy, expensive, and public. Many people choose to avoid probate for these reasons, and the most common way of doing so is through the creation of a revocable living trust.
With these trusts you appoint a trustee, which can sometimes be a bank or trust company, who will administer distributions to your beneficiaries after your death in accordance with your wishes. These asset transfers take place outside the process of probate, and the creation of the trust provides some asset protection for your beneficiaries as well.
In addition to facilitating the transfer of assets, the fundamental estate plan will also include an incapacity planning component. You can protect yourself through the execution of a durable financial power of attorney and a durable power of attorney for health care. With these documents you empower representatives of your choosing to make decisions on your behalf should you become unable to do so due to incapacitation.
These are a couple of the basics, but in the end the best way to truly demystify the process of estate planning is to consult with an experienced estate planning attorney. This type of communication is invaluable, and you will invariably feel a weight lifted off your shoulders when you exit your attorney's office with a solid estate planning strategy having been decided upon.

When you are planning your estate it is likely that you have multiple objectives in mind, and if you're like most people making sure that your loved ones are provided for is at the top of that list.  To make sure that your family members get everything that you would like to leave them without allowing a significant portion of their inheritances to go to the IRS you sometimes have to take steps to gain estate tax efficiency. At the present time the estate tax exclusion is $5 million, but if no changes are made in the meantime it is going down to just $1 million at the end of 2012, and this is something to keep abreast of during the upcoming election season.
In addition to protecting your assets from erosion as you pass them along to your loved ones you may also feel the desire to make charitable giving a part of your legacy. There are a number of charitable giving vehicles that people utilize when they are planning their estates, and one of them that provides multiple benefits is the charitable remainder unitrust or CRUT.
These vehicles provide an ongoing source of income to the non-charitable beneficiary during the term of the trust, and then when the term expires or the grantor passes away the charitable beneficiary assumes ownership of the remainder. Most the time the grantor will act as the beneficiary and receive the annuity payments from the trust, which must be at least 5% and no more than 50% of the value of the trust per year. Once the term has concluded or upon the death of the grantor the charitable beneficiary must receive no less than 10% of the original value of the trust.
The creation of the trust removes these assets from your estate for estate tax purposes, and you are also entitled to a charitable deduction that is calculated via valuation of the remainder interest. Additionally, if you were to fund the trust with appreciated securities you could have the trust sell them and your capital gains liability would be spread out rather than being due all at once.
 
 

It is logical to assume that passing along assets to your heirs after you die is not something that will cost you a lot of money. Why should it? Of course you have to retain the services of an estate planning attorney to get the correct documents in place, but after that it would seem as though no further costs should be incurred. Unfortunately however, there is indeed a formidable source of asset erosion out there that must be addressed in the form of the federal estate tax.
Who has to pay the estate tax? This is a very good question, and it is not an easy one to answer because the parameters of the estate tax are constantly changing. The dividing line that you need to keep an eye on is the estate tax exclusion. Right now the estate tax exclusion is $5 million, which means that only the portion of your estate that exceeds this amount is subject to the estate tax, which is presently carrying a 35% maximum rate. However, if the laws stay the same as they are right now, in 2013 the estate tax exclusion will be $1 million, and the top rate of the tax will be 55%. In 2008 the exclusion was $2 million; in 2009 it was $3.5 million; and during 2010 it was repealed, so you can see that it is difficult to plan ahead considering the way that the exemption is always changing.
Estate planning attorneys often emphasize the fact that your estate plan is going to have to be updated as your life changes. But in addition to the changes that take place in your own life you have to be ready to react to circumstances that are not under your control, such as alterations to the estate tax laws. The wise course of action is to stay in touch with your estate planning attorney who will keep you apprised of changes that may have an impact on your estate plan.

Making advance plans for the latter portion of your life is always going to be the wise course of action because the reality is that we all get older, we all reach retirement age, and we all eventually pass away. Unfortunately, many people procrastinate until it is too late to their own detriment and to the detriment of their family members. But even people who are proactive about making advance plans are faced with challenges because life does not stand still. Your estate plan at any given time is going to be based on a snapshot of your life as it was when you devised the plan. As things change, your estate plan must be updated to reflect these changes.
One of the first big events in your life that will impact your estate plan is marriage. Though young single people should have an estate plan in place, many do not, but when you get married an estate plan becomes a must. It is very likely that you and your spouse are living a standard of life that requires two incomes to maintain. Should one of you pass away suddenly in an accident or due to an illness, the other individual could be placed in a very tenuous financial situation. This is why it is so important to have sufficient life insurance coverage in place. Advance health care directives are also important for married couples of all ages.
We live in an era when 4 or 5 out of every ten marriages end in divorce, and when your marriage comes to an end you must revisit your estate plan and make sure that you update your beneficiaries. In addition, should you remarry, you and your new spouse must discuss the dynamics of your blended family and create an estate plan that reflects your current situation.
Estate planning is a lifelong process if you are serious about making sure that all of your bases are covered. This is why it is important to identify an estate planning attorney that you feel comfortable with who will gain an understanding of your situation and assist you as you move forward and experience life's inevitable twists and turns.

Intelligent retirement planning that is given enough time to succeed will usually pay huge dividends.  However, the fact is that the future is uncertain and there are no absolute guarantees. Many people thought that they had effective retirement plans in place during the early part of the 21st century, but the financial meltdown of 2008 certainly changed the landscape. Events that are out of the control of the individual such as the sub-prime crisis are difficult to plan for, but the solution is to be flexible, informed, and proactive about doing everything that is within your power to seize control of your own financial destiny.
Being apprised of all of your options is key, and one of these is the reverse mortgage. To qualify for a reverse mortgage you must be at least 62 years of age, own your home outright or have significant equity in it, and you must live in the home as your primary place of residence.  The lender under a reverse mortgage provides you payments  either in a lump sum, in increments, or on an as-needed basis in a manner similar to a home equity line of credit. In return, the lender receives equity in your home.
While you are living in the residence you are required to keep up with routine maintenance and pay the property taxes, and if you were to fail to do these things the loan could be called.  The loan is due and payable upon your death or after you voluntarily choose to move out of the residence. Most of the time the property is sold upon your death and the loan is paid off with proceeds from the sale. If there were a remainder of proceeds after satisfying the debt, it would go to your heirs.  However, if the property is worth less than the outstanding loan amount your estate  is generally not responsible for the deficiency.

When people debate the fairness of the estate tax the primary argument against it is the fact that it is in and of itself an instance of double taxation. You pay income and payroll taxes, and then you have the remainder which may be as little as 70% of what you actually earned.   With this remainder you go forth, and as you do you must pay sales tax, property tax, capital gains tax, and any number of additional taxes. Then when you pass away your estate is taxed yet again, and at an exorbitant rate exceeding one third of the taxable portion.
The above is a pretty convincing argument, isn't it? But it really doesn't stop there. Let's say you leave a bequest to your children that is subject to the estate tax. They are successful in their own right and never touch that money. When they pass away and leave it to your grandchildren the taxable portion is once again going to be shaved down by the death levy, and in fact this can go on and on into future generations until nothing is left but the exempt amount.
This can be avoided, at least in part, through the creation of a generation-skipping trust. With these vehicles you name your children and grandchildren as the beneficiaries.  They can receive cash distributions, live in property that has been placed into the trust rent-free, and even direct trust administration in large part through a special power of appointment.  Plus, since these assets are not owned by the beneficiaries they are protected from the beneficiaries' potential future divorces and creditors (e.g., lawsuits).  Perhaps the greatest benefit, upon the death of your children, and even your grandchildren in states like Nevada, because the assets are owned by the trust and not the beneficiary, they are not once again subject to estate taxes.
The children and grandchildren can receive liberal benefits from the trust, but the assets can be passed down to future generations estate tax free.   The generation-skipping transfer tax is applicable, but there is a $5 million exclusion so many people will limit their contribution into the trust to this amount.
 

The estate tax can be devastating to your legacy, and it is important to take steps to mitigate your exposure for the well-being of your loved ones. At the present time the estate tax exclusion is $5 million but it is scheduled to be reduced to $1 million in 2013 if there are no changes made in the meantime. Believe it or not, the maximum rate of the tax is scheduled to go up to 55% at that time. So for example, if you had a $5 million estate $4 million of it would be subject to a 55% tax. If you do the math that equals $2.2 million. So out of the $5 million that you were able to accumulate throughout your lifetime, your family members would receive $2.8 million and the government would receive $2.2 million.
Of course it is logical to simply give gifts to your loved ones while you are alive in an effort to avoid the estate tax, but there is a gift tax in place as well that is unified with the estate tax. Because of this unification, even though there is a $5 million lifetime gift tax exclusion at this time, it really does you no good because any portion of it that you use to give gifts will be deducted from your available estate tax exemption.
There are however additional exemptions that do not impact this unified exclusion and one of them enables you to pay the college tuition of an unlimited number of students equaling any amount of money free of the gift tax. It should be noted that this exemption does not allow you to pay for living expenses, books and fees. However, there is a $13,000 per person annual exemption that does not impact the lifetime unified exclusion. So you could utilize this to help to cover these costs, and if you are married you and your spouse could combine your respective exemptions and provide your student with as much as $26,000 per year.
 
 

The field of estate planning contains many different legal instruments that most people have never heard of, so it can be kind of confusing when you start to do your research. On the other hand, there are some estate planning tools that are commonly used that most people have heard of that exist in some variations. As they say, a little bit of knowledge can sometimes lead to misconceptions, so we would like to clear up the difference between some of the basic terms that are often confused.
Everyone has heard of the last will, which is of course the most commonly used vehicle of asset transfer when a person dies. Many individuals are aware of the fact that there is an alternative to the will that prepares assets for eventual distribution while you are still alive. Since the last will is a vehicle of asset transfer, when some people hear the term "living will" they assume that this must be the way that you prepare assets for distribution while you are alive, but this is not the case.
A living trust is the vehicle of asset transfer that is executed while you are still alive. You can actually serve as both the trustee and the beneficiary while you are living so that you retain full control of the resources. But you name secondary beneficiaries and a successor trustee who will distribute the assets to your beneficiaries upon your death or incapacitation in accordance with your wishes.
The living will, on the other hand, is an advance health care directive. It is used to express your preferences with regard to the medical procedures you would accept and those that that you would prefer to deny in the event of your incapacitation. The matter of being kept alive through the utilization of life support systems is at the core of most living wills.