Q: Who will decide where I live?
A:A local judge would have to appoint a Guardian who would make that decision. Of course, the judge may not choose the same person you would have chosen.

Q: Who will decide medical treatment issues?
A: Depending on the state, if your family members agree, they can make that decision. However, if family members disagree, you could be back with the local judge getting a Guardian appointed.

Q: If I have no chance of recovery, will I be kept on life support?
A: Unless you have planned properly, you probably will be kept on life support. In most states, you will be kept on life support unless there is clear evidence you expressed wishes to the contrary; usually this requires something in writing.

Q: How will my bills get paid?

A: Your family or friends must go to your local court and have someone appointed your Conservator. Again, this judge probably does not know you and may not appoint the same person you would choose. In the appointment process, people must testify in open court that you do not have the ability to care for yourself. It can be draining financially and emotionally. Your Conservator would have to report to the court for as long as you are disabled.

Q: What happens if my investments need to be changed quickly due to market conditions or to reflect new circumstances and risk tolerance?

A: A court would have to appoint a Conservator. Nobody but the Conservator would be able to act for you.

Q: What happens if my son needs his tuition paid while I’m disabled?

A: Again, if you haven’t planned, nobody can act for you until the court appoints a Guardian and/or Conservator for you. If bills, such as your son’s tuition, need to be paid in the interim, a friend or family member would have to use their savings or borrow to pay the bill.

Q: How will my income tax return get filed?

A: If you are single, only your Conservator would have that authority.

In 2001, Congress passed a law that made big changes to the estate tax.  It raised the amount that could pass without tax, increasing it in steps from $675,000 in 2001, to $3.5 million in 2009.  Then, in 2010, the estate tax was repealed for one year only-2010.  The same law also said that the estate tax would return in 2011, with estates over $1 million being taxed as high as 55%. However, on December 17, 2010, Congress revised the estate tax with yet another new law: the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (“TRA 2010”).  The new law set the amount that could pass without tax at $5 million per person for 2010-2012.  However, the new law is temporary and will expire after 2012.  In 2013, the amount that can be passed free from tax will go back down to $1 million per person.  Thus, unless the law is changed again between now and then, someone dying in 2013 would only be able to pass $1 million without an estate tax. In addition, the new law reduces the top estate and gift tax rate to 35% in 2010-2012.  However, a top rate of 55% returns in 2013 and thereafter.

Congress also introduced a new “portability” provision.  This is where one spouse can add their deceased spouse’s estate tax exclusion to their own exclusion, to shelter more from taxes. This portability provision, also known as the “Deceased Spousal Unused Exclusion Amount” can be used to shelter the assets of the surviving spouse.  While intriguing on the surface, under current law this portability tax benefit only happens if both spouses die in 2011 or 2012.  If either spouse hangs on until 2013 or beyond, there is no portability option available. Therefore, unless both spouses plan on passing away during those two years, creating an estate plan is still essential. Contact our office to learn more about how the portability provision could affect your estate plan.

So, what’s the gist of the new law? Prior to TRA 2010 we were facing a return to the $1 million estate tax exclusion on January 1, 2011. Now, we are still facing a return to the $1 million estate tax exclusion; it’s just put off for two years now–to January 1, 2013. The bottom line is that TRA 2010 is temporary. In two years, it will disappear as though it had never existed.

While planning to minimize or avoid estate taxes is certainly an important reason to meet with an estate planning attorney, creating an estate plan is about much more than protecting your beneficiaries’ inheritance from estate taxes.  Planning for your estate and your legacy can protect your beneficiaries and the assets you leave them from their creditors, a future divorce, and even their own misjudgment. Estate planning is also about providing protections during lifetime, such as avoiding a guardianship or conservatorship proceeding if you’re incapacitated and protecting your nest egg from the possibility of an extended stay in a nursing home.

Our law firm has been helping families plan for both their financial wealth and their treasured wealth for many years. We believe that traditional estate planning has been failing American families. Traditional “bare bones” estate plans have only focused on distributing financial wealth and have done little to secure the future families intend when planning for future generations.

We have seen many families lose financial assets after the first generation through traditional estate planning means. The loss of family legacies and history is even more devastating.

There is a better alternative! Legacy Wealth Planning helps you examine not only your financial and non-financial goals and concerns but it also focuses on the values and legacy you wish to leave behind. With a customized Legacy Wealth Plan, you can minimize the emotional impact on your family, retain valuable assets and ensure that your legacy lives on through those you love and your future generations.

In our estate and legacy planning meetings, we take a deeper look at the real-life issues facing families today…

• Your surviving spouse re-marries, or has creditor problems, or has an accident and is sued
• Your children and or grandchildren go through their own divorces, re-marriages, or has lawsuits or creditor problems
• Disability for either spouse – long nursing home stays can be financially devastating
• Passing on your personal values and heirlooms
• How to set up incentives and distributions that will ensure wise choices by family members so your legacy lives beyond your first generation

1. Revocable Living Trust: A device used to avoid probate and provide management of your property, both during life and after death.
2. Property Power of Attorney: Instrument used to allow an agent you name to manage your property.
3. Health Care Power of Attorney: Instrument used to allow a person you name to make health care decisions for you should you become incapacitated.
4. Annual Gift Tax Exclusion: Technique to allow gifts without the imposition of estate or gift taxes and without using lifetime exclusion.
5. Irrevocable Life Insurance Trust: A trust used to prevent estate taxes on insurance proceeds received at the death of an insured.
6. Family Limited Partnership: An entity used to:
   • Provide asset protection for partnership property from the creditors of a partner
   • Provide protection for limited partners from creditors
   • Enable gifts to children and parents maintaining management control
   • Reduce transfer tax value of property.
7. Children’s or Grandchildren’s Irrevocable Education Trust: A trust used by parents and grandparents for a child’s or grandchild’s education.
8. Charitable Remainder Interest Trust: A trust whereby donors transfer property to a charitable trust and retain an income stream from the property transferred. The donor receives a charitable contribution income tax deduction, and avoids a capital gains tax on transferred property.
9. Fractional Interest Gift: Allows a donor to transfer partial interests in real property to donees and obtain fractional interest discounts for estate and gift tax purposes.
10. Private Foundation: An entity used by higher-wealth families to receive charitable income, gift, or estate tax deduction while allowing the family to retain some control over the assets in the foundation.

By Mary Ann and James P. Emswiler

1. Are you always irritable, annoyed, intolerant or angry these days?
2. Do you experience an ongoing sense of numbness or of being isolated from your own self or from others? Do you usually feel that you have no one to talk to about what’s happened?
3. Since your loved one died, are you highly anxious most of the time about your own death or the death of someone you love? Is it beginning to interfere with your relationships, your ability to concentrate or live as you would like to live?
4. Do you feel that you are always and continually preoccupied with your loved one, his or her death or certain aspects of it even though it’s been several months since his or her death?
5. Do you usually feel restless or in “high gear”? Do you feel the need to be constantly busy… beyond what’s normal for you?
6. Are you afraid of becoming close to new people for fear of losing again?
7. Do you find yourself acting in ways that might prove harmful to you over time: drinking more than you used to; using more prescription or non-prescription drugs; engaging in sexual activity that is unsafe or unwise; driving in an unsafe or reckless manner (beyond what’s normal for you); or entertaining serious thoughts about suicide?
8. Are you taking on too much responsibility for surviving family members or close friends? (What’s too much responsibility? That varies greatly and depends on the situation, but if you’re feeling heavily burdened by it, angry or like the situation is “suffocating” you, it might be time to speak with someone.)
9. Do your grief reactions continue, over time, to be limited in some way? Are you experiencing only a few of the reactions or emotions that usually come with grief? Are you unable to express your thoughts or feelings about your loved one and his or her death in words or in actions? Do you remember only certain aspects of your loved one or your relationship together, for example only the good parts as opposed to a more complete and balanced view of him or her?
10. Is there some aspect of what you’re experiencing that makes you wonder about whether you’re normal or going crazy? Do you feel stuck in your grief in some way, unable to move on, even though it’s been quite some time since your loved one’s death?

Beyond these ten signs, trust your own judgment. If you think that talking to a professional might help, talk to one or more people to see who you are comfortable with. Take advantage of one who seems helpful to you. After all, grief is painful enough without trying to do it all by yourself.

By Alan D. Wolfelt, Ph.D.

1. You have the right to experience your own unique grief. No one else will grieve in exactly the same way you do. So, when you turn to others for help, don’t allow them to tell you what you should or should not be feeling.
2. You have the right to talk about your grief. Talking about your grief will help you heal. Seek out others who will allow you to talk as much as you want, as often as you want about your grief.
3. You have the right to feel a multitude of emotions. Confusion, disorientation, fear, guilt, and relief are just a few of the emotions you might feel as part of your grief journey. Others may try to tell you that feeling angry, for example, is wrong. Don’t take these judgmental responses to heart. Instead, find listeners who will accept your feelings without condition.
4. You have the right to be tolerant of your physical and emotional limits. Your feelings of loss and sadness will probably leave you feeling fatigued. Respect what your body and mind are telling you. Get daily rest. Eat balanced meals. And don’t allow others to push you into doing things you don’t feel ready to do.
5. You have the right to experience grief ”attacks.” Sometimes, out of nowhere, a powerful surge of grief may overcome you. This can be frightening, but it is normal and natural. Find someone who understands and will let you talk it out.
6. You have the right to make use of ritual. The funeral ritual does more than acknowledge the death of someone. It helps provide you with the support of caring people. More important, the funeral is a way for you to mourn. If others tell you that rituals such as these are silly or unnecessary, don’t listen.
7. You have the right to embrace your spirituality. If faith is a part of your life, express it in ways that seem appropriate to you. Allow yourself to be around people who understand and support your religious beliefs. If you feel angry at God, find someone to talk with who won’t be critical of your feelings of hurt and abandonment.
8. You have the right to search for meaning. You may find yourself asking, “Why did she or he die? Why this way? Why now?” Some of your questions may have answers, but some may not. And watch out for the clichéd responses some people may give you. Comments like, “It was God’s will” or “Think of what you have to be thankful for” are not helpful and you do not have to accept them.
9. You have the right to treasure your memories. Memories are one of the best legacies that exist after the death of someone loved. You will always remember. Instead of ignoring your memories, find others with whom you can share them.
10. You have the right to move toward your grief and heal. Reconciling your grief will not happen quickly. Remember, grief is a process, not an event. Be patient and tolerant with yourself and avoid people who are impatient and intolerant with you. Neither you nor those around you must forget that the death of someone loved changes your life forever.

Upon the death of a loved one, great emotional sadness sets in as family and friends support each other during this time of loss. After finding a firm emotional foundation, it is time to address the task of administering the estate set up by the deceased.

Included below is a brief list of the actions which you or your Personal Representative and Trustee should take immediately upon death. (Many of these actions may similarly be required in the event of incapacity). This is not intended as an exhaustive or detailed explanation of all actions which should be taken. Rather, it is for use as a checklist to help the appointed representatives step in and handle as expeditiously as possible those items which demand immediate attention.

1. Consider advising any surviving family member who is alone to telephone a friend who can share the next few hours. Shock and trauma due to the death of a relative can take unexpected forms.
2. Notify a funeral director and clergy, and make an appointment to discuss funeral arrangements. Request several copies of decedent’s death certificate, which you’ll need for his or her employer, life insurance companies, and/or decedent’s attorney for legal procedures.
3. Contact by phone and notify the immediate family, close friends, business colleagues and employer.
4. Arrange for care for members of the immediate family, including appropriate child care, having people at the decedent’s house, etc.
5. Locate the decedent’s important papers. Gather as many of the decedent’s papers as possible, and continue to do so for the next few weeks.
6. Contact our office for a consultation or notify the attorney who will be handling the decedent’s affairs. Make an appointment immediately because a tax return may be due within nine (9) months of death. This meeting is important to review decedent’s estate planning documents and to discuss state and federal death taxes that may be payable. The attorney will also determine the extent to which it is necessary or advisable to open a probate estate. (In the event of incapacity, the attorney may suggest additional steps which should be taken for estate planning purposes, particularly if death is imminent.)
7. Telephone decedent’s employee benefits office with the following information: name, Social Security number, date of death (or incapacity); whether the death (or incapacity) was due to accident or illness; and your name and address. The company can begin to process benefits immediately.
8. If decedent was eligible for Medicare, notify the local program office and provide the same information as in Step # 7.
9. Notify life, accident or disability insurers of decedent’s death or disability. Give the same information as in Step # 7, and ask what further information is needed to begin processing your claim. Ask which payment option decedent had elected, and select another option if you would so prefer. If there is no payment option, you will be paid in a lump sum.
10. Notify the decedent’s Social Security office of the death. Claims may be expedited if a surviving family member goes in person to the nearest office to investigate making a claim for survivor’s benefits. Look for the address under U.S. Government in the phone book.
11. If you need emergency cash before insurance claims are paid, a cash advance may be available from life insurance benefits to which you are entitled.
12. If decedent was ever in the military service, notify the Veterans’ Administration. Surviving relatives may be eligible for death or disability benefits.
13. Record in a small ledger all money you or the immediate family spends. These figures may be needed for tax returns.
14. Remember that a surviving family member may be in a highly emotional state. Therefore, they should avoid entering contracts for anything, and avoid spending or lending large sums of money. For our clients, consult the section of the Portfolio entitled “Other Documents” before proceeding further.
15. DO NOT CHANGE THE TITLE OF ANY ASSETS! This can create unnecessary problems for you. Please contact our office for a consultation before you start this process.

Upon the death of a loved one, great emotional sadness sets in as family and friends support each other during this time of loss. After finding a firm emotional foundation, it is time to address the task of administering the estate set up by the deceased.

Included below is a brief list of the actions which you or your Personal Representative and Trustee should take immediately upon death. (Many of these actions may similarly be required in the event of incapacity). This is not intended as an exhaustive or detailed explanation of all actions which should be taken. Rather, it is for use as a checklist to help the appointed representatives step in and handle as expeditiously as possible those items which demand immediate attention.

1. Consider advising any surviving family member who is alone to telephone a friend who can share the next few hours. Shock and trauma due to the death of a relative can take unexpected forms
2. Notify a funeral director and clergy, and make an appointment to discuss funeral arrangements. For our clients, consult the “Location List” and the “Estate Planning Letter” sections in your Portfolio for the names and phone numbers of the appropriate parties and any special requests of the decedent. Request several copies of decedent’s death certificate, which you’ll need for his or her employer, life insurance companies, and/or decedent’s attorney for legal procedures
3. Contact by phone and notify the immediate family, close friends, business colleagues and employer (for our clients, see “Location List” section for persons to contact)
4. Arrange for care for members of the immediate family, including appropriate child care, having people at the decedent’s house, etc
5. Locate the decedent’s important papers. For our clients, consult the “Location List” section in your Portfolio. Gather as many of the decedent’s papers as possible, and continue to do so for the next few weeks
6. Contact our office for your consultation or notify the attorney who will be handling the decedent’s affairs. Make an appointment immediately because a tax return may be due within nine (9) months of death. This meeting is important to review decedent’s estate planning documents and to discuss state and federal death taxes that may be payable. The attorney will also determine the extent to which it is necessary or advisable to open a probate estate. (In the event of incapacity, the attorney may suggest additional steps which should be taken for estate planning purposes, particularly if death is imminent.
7. Telephone decedent’s employee benefits office with the following information: name, Social Security number, date of death (or incapacity); whether the death (or incapacity) was due to accident or illness; and your name and address. The company can begin to process benefits immediately
8. If decedent was eligible for Medicare, notify the local program office and provide the same information as in Step # 7
9. Notify life, accident or disability insurers of decedent’s death or disability. Give the same information as in Step # 7, and ask what further information is needed to begin processing your claim. Ask which payment option decedent had elected, and select another option if you would so prefer. If there is no payment option, you will be paid in a lump sum
10. Notify the decedent’s Social Security office of the death. Claims may be expedited if a surviving family member goes in person to the nearest office to investigate making a claim for survivor’s benefits. Look for the address under U.S. Government in the phone book
11. If you need emergency cash before insurance claims are paid, a cash advance may be available from life insurance benefits to which you are entitled
12. If decedent was ever in the military service, notify the Veterans’ Administration. Surviving relatives may be eligible for death or disability benefits
13. Record in a small ledger all money you or the immediate family spends. These figures may be needed for tax returns
14. Remember that a surviving family member may be in a highly emotional state. Therefore, they should avoid entering contracts for anything, and avoid spending or lending large sums of money. For our clients, consult the section of the Portfolio entitled “Other Documents” before proceeding further
15. DO NOT CHANGE THE TITLE OF ANY ASSETS! This can create unnecessary problems for you. Please contact our office for a consultation before starting this process.

Review the questions below to see if it is time for an Estate Plan Check-Up

1. Has it been more than 3 years since you last conducted Nevada estate planning?
2. If you have minor children, have there been any changes to the Guardians named for them, or does the plan omit guardianship?
3. Since creating your estate plan, are your children now adults?
4. If you have a Trust, are there any assets that you have not transferred into your Trust?
5. If you become disabled, is your Power of Attorney document for financial decisions older than 5 years?
6. If you become disabled, is your Power of Attorney document for health care decisions older than 5 years?
7. Are there any gifts you would like to make to charities at your death that have not been clearly set forth in your planning documents?
8. Is there any personal property that you would like distributed that have not been clearly set forth in your planning documents, including the care of any surviving pets?
9. Since you signed your planning documents, have you changed your mind about any aspect of the plan?
10. Has the value of your assets changed since you signed your planning documents?
11. Have you added or changed the kind of assets you own since your planning documents were signed?
12. Have you recently been married, divorced or widowed since your estate planning documents were signed?
13. Have you had children since your estate planning documents were signed?
14. Have your children had children?
15. Have any of your children been married, divorced or died since your planning documents were signed?
16. Have you, your spouse or child become physically or mentally incapacitated since your planning documents were signed?
17. Have you bought or sold a house or other piece of property since your planning documents were signed?
18. Are you contemplating selling stock or other valuable assets with a low cost basis?
19. Have you moved between states since your planning documents were signed?

If you have answered ‘YES’ to any of these questions, it is a good idea to schedule a Nevada estate planning appointment.

Take a moment to stop and think about what you really want to pass down to future generations. The odds are good that it is not just tangible assets, but the intangible ideals, philosophies, and beliefs that make up your legacy that you hope to pass down. Legacy planning can help you do just that. Legacy planning is not something that takes the place of your existing estate plan. Instead, legacy planning takes over where your estate plan leaves off and focuses on things that are typically overlooked in traditional estate planning.

Limitations of a Traditional Estate Plan

A traditional estate plan focuses on protecting, growing, and eventually distributing the tangible assets you acquire over the course of your lifetime. While traditional estate planning remains necessary, it does have its limitations. For example, your traditional estate plan can help you plan for the end of your life by creating a roadmap for distributing your material wealth after you are gone; however, there is no place in that plan to focus on the values, morals, faith, and beliefs that have guided you throughout your lifetime and helped you reach the material success you have achieved.  As you undoubtedly know, those core values, investing philosophies, religious beliefs, and guiding principles are far more valuable to your beneficiaries than tangible assets are, which is why legacy planning is so important.

How Is Legacy Planning Different from Traditional Estate Planning?

Legacy planning does not require a separate plan nor does it require you to abandon your current estate plan. Instead, legacy planning is accomplished by taking a holistic approach to your comprehensive plan that weaves your legacy into your existing plan. Think of it as creating a bigger, better, more inclusive version of your current estate plan. By doing so, the hope is that future generations will honor your legacy by adopting the same values and beliefs that guided you throughout your lifetime.

What Is Your Legacy?

Legacy planning begins by asking the question “What is the legacy you wish to leave behind?” How can your legacy shape your children, grandchildren, and even great-grandchildren? What are the principles, values, philosophies, and beliefs you wish to impart on future generations? For some people, their faith comes first. Others place a great deal of importance on education, family values, or philanthropy. Maybe you have an investing philosophy that has worked extremely well for you that you wish to pass on to loved ones. Your legacy is yours to create and pass down by incorporating modern and innovative legacy planning tools and strategies into your overall estate plan.

How Does Legacy Planning Work?

Because the legacy you wish to pass on is highly unique and personal, the legacy plan you create will also be unlike any other legacy plan. There are, however, some common tools and strategies used to interweave your legacy plan into your estate plan. For example, if you have a strong belief in the importance of education, you might establish a trust that can only be used to pay for tuition or expenses related to higher education. If philanthropy is part of your daily life, you could create a family foundation that will carry on your charitable work after you are gone.  Drafting a Letter of Instructions that discusses your values, philosophies, and beliefs is also a straightforward and simple way to incorporate legacy planning in your estate plan.

Contact a Reno, Nevada Legacy Planning Attorney Today

Your legacy plan reflects what truly matters to you and what you hope to pass down to future generations. The legacy planning attorneys at Anderson, Dorn & Rader, Ltd. are committed to ensuring that your legacy shines through in your comprehensive estate plan. If you are ready to get started with your Reno, Nevada legacy plan, contact us today by using our online contact form or by calling (775) 823-9455.

1. Revocable Living Trust: A device used to avoid probate and provide management of your property, both during life and after death.
2. Property Power of Attorney: Instrument used to allow an agent you name to manage your property.
3. Health Care Power of Attorney: Instrument used to allow a person you name to make health care decisions for you should you become incapacitated.
4. Annual Gift Tax Exclusion: Technique to allow gifts without the imposition of estate or gift taxes and without using lifetime exclusion.
5. Irrevocable Life Insurance Trust: A trust used to prevent estate taxes on insurance proceeds received at the death of an insured.
6. Family Limited Partnership: An entity used to:
   • Provide asset protection for partnership property from the creditors of a partner
   • Provide protection for limited partners from creditors
   • Enable gifts to children and parents maintaining management control
   • Reduce transfer tax value of property.
7. Children’s or Grandchildren’s Irrevocable Education Trust: A trust used by parents and grandparents for a child’s or grandchild’s education.
8. Charitable Remainder Interest Trust: A trust whereby donors transfer property to a charitable trust and retain an income stream from the property transferred. The donor receives a charitable contribution income tax deduction, and avoids a capital gains tax on transferred property.
9. Fractional Interest Gift: Allows a donor to transfer partial interests in real property to donees and obtain fractional interest discounts for estate and gift tax purposes.
10. Private Foundation: An entity used by higher-wealth families to receive charitable income, gift, or estate tax deduction while allowing the family to retain some control over the assets in the foundation.

Contact Anderson, Dorn & Rader Ltd.

• Do you have a Will?
• If you have minor children, do you have a current Will which names Guardians?
• If the total gross value of all your assets is over $100,000 do you have an Estate Plan?
• If you have a Living Trust, have you transferred your assets into it?
• In case you become disabled, have you nominated someone to handle your financial affairs?
• Do you have a current Health Care Power of Attorney that provides the names, addresses and telephone numbers of your designated agents to handle your medical care if you’re disabled?
• Do you have provisions in your Trust or Will that address the issue of death taxes?
• If you want to make gifts to charities at your death, are they clearly set forth in your planning documents?
• Do your planning documents clearly set forth how your personal property will be distributed at your death, including the care of any surviving pets?
• Since you signed your planning documents, have you changed your mind about any aspect of the plan?
• Has the value of your assets substantially changed since you signed your planning documents?
• Have you substantially changed the kind of assets you own since your planning documents were signed?
• Have you recently been married, divorced or widowed since your estate planning documents were signed?
• Have you had children since your estate planning documents were signed?
• Have your children had children?
• Have any of your children been married, divorced or died since your planning documents were signed?
• Have you, your spouse or child become physically or mentally incapacitated since your planning documents were signed?
• Have you bought or sold a house or other piece of property since your planning documents were signed?
• Are you contemplating selling stock or other valuable assets with a low cost basis?
• Have you moved between states since your planning documents were signed?

Feel free to make an appointment with our firm to review your estate plan.

You have the ability to craft your legacy in a way that makes life better for the people that you will be leaving behind in various different ways. Of course, you can leave lump sum inheritances and let the individuals that are receiving the bequests do whatever they want to do with the resources.

This can be the right choice for some, but for others, you may want to go in a different direction. Before you make any final decisions along these lines, you should understand your options with regard to asset transfer vehicles.

One device that can be very useful when certain circumstances exist is the incentive trust.

Create a Positive Pathway

You can include incentives when you create this type of trust that the beneficiary must satisfy in order to receive monetary distributions. From a legal perspective, you can include any type of stipulations that you want, as long as you are not requiring the beneficiary to do something that is illegal.

That’s a very broad statement, so we will provide a hypothetical example to give you an idea of the way that some people use incentive trusts. Let’s say that you want to leave an inheritance to a grandchild that has not yet attended college.

You could create a trust that pays out money for the rest of their life without asking them to do anything for it, but this may not feel right to you. Another option would be to fund an incentive trust and leave behind instructions for the trustee with regard to the nature of the asset distributions.

One way to proceed would be to allow the trustee to distribute a certain amount every month as long as the beneficiary remains in college, and of course, college tuition would be paid as well.

After graduation, you could provide a congratulatory lump sum of some type, and add an incentive for attending graduate school. Some people will engender a work ethic by offering a dollar for dollar match of money that is earned by the beneficiary after they enter the workforce.

Subsequently, you could instruct the trustee to start to distribute large lump sums when the beneficiary is 40, 50, and 60 years old. Once again, this is just a hypothetical example of an incentive trust structure that makes sense for some people, but the possibilities are endless.

Download Our Estate Planning Worksheet

We have a treasure trove of resources here on this website, and it starts with the blog that you are reading right now. There are hundreds of posts that you can go through to learn about every estate planning topic under the sun.

In addition to the blog, we have other content that is very useful, including our estate planning worksheet. People that have gone through it give us very positive feedback, so we encourage you to do the same. It is free, you can visit our worksheet download page to get your copy.

Come Join Us!

Our estate planning attorneys are very excited about the material that they are going to present at the workshops that are on our schedule at the present time. This is the ideal way to really build on your knowledge in an enjoyable, interactive environment.

We guarantee that you will walk away with some truly eye-opening information if you carve out some time to attend one of these information sessions. Best of all, they are being offered absolutely free of charge, so you have everything to gain and nothing to lose.

Though we are picking up the tab in every way, we have to ask you one favor. Space is limited, so if you reserve your seat in advance, we can make sure that you are well accommodated. To do just that, visit our Webinars schedule page and follow the simple instructions.

 

Estate planning involves more than just your cash and personal property. A mistake that some clients make is overlooking family heirlooms which often have more sentimental value than monetary value. Part of determining how to distribute your assets after death includes distributing heirlooms that need to be kept in the family and passed on through the generations.  Including your family heirlooms in your estate plan is important and our Reno estate planning attorneys can help.

Be Specific and Put Your Instructions in Writing

Even if you have already discussed with your children how they feel about certain personal belongings, their feelings could very easily change in the future. This is especially true when memories fade. While you may not want to specifically bequeath every single personal item to someone in particular, the meaningful bequests should be written down in detail. Preserving your wishes on these matters will be important to you and your heirs later on. Your Reno estate planning attorney can assist you in drafting the proper plan.

Have Your Heirlooms Appraised

The traditional definition of a family heirloom is a specific item that has been passed down through the generations or that you intend to pass down in that way. The first step should be to determine the monetary value of these items by getting the items appraised. Depending on the type of heirlooms you have, there are various dealers available to provide an appraisal. Antique dealers, fine art dealers, historical or rare book dealers; all have the expertise required to provide an accurate appraisal of your property. If you need help finding one, please contact our law firm for referrals.

Avoid Disputes Over Family Heirlooms

A personal property memo is one way to avoid a dispute over these prize possessions. A personal property memo is basically a written statement referred to in a last will and testament, which can be used to leave personal property to beneficiaries. A personal property memo can be revised or modified without the need of executing your will again. If you want to explore this option, consult with our Reno estate planning attorney.

Make Sure Heirlooms Are Fairly Distributed

When it comes to family heirlooms, there may be some items that have greater value than others. This can make equitable distribution between heirs more challenging. However, there are few strategies that can be useful. Of course, the most direct way is to make specific bequests to your heirs and discuss your decisions with them while you are still living. If your children agree with your choices, then the likelihood of a dispute over these items after your death can be greatly reduced. But, what should be done if there are family heirlooms that are not specifically bequeathed, for whatever reason?

Distributing Family Heirlooms

Without your specific instructions, your appointed executor or trustee will be required to determine how to divide the family heirlooms, at his or her own discretion. Another way to avoid family disputes is to allow the beneficiaries to divide the heirlooms amongst themselves by agreement. If there are any specific items about which they cannot agree, the executor or trustee can then make the decision. Your beneficiaries can also choose the heirlooms by drawing lots in equal shares, with any inequalities to be resolved through cash payments. As an alternative, the executor can hold a silent auction. If you have questions about these and other options, talk to a Reno estate planning attorney.

The “No-Contest Clause”

Some states allow you to include a “No-Contest Clause” in your will or trust.  This provision effectively discourages family disputes over inheritances. If any of your heirs decide to contest the Will, then they are not entitled to receive any part of the inheritance.

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Eventually when you die, your family should not be wasting time fighting over your personal property. Instead, it is a time for them to be supportive to one another and to celebrate your life. If you plan ahead with the assistance of an estate planning attorney, you can avoid many of the potential challenges that come with distributing an estate like family squabbles over your heirlooms.

If you have questions regarding family heirlooms or any other estate planning matters, please contact the experienced attorneys at Anderson, Dorn & Rader, Ltd. for a consultation. You can contact us either online or by calling us at (775) 823-9455. We are here to help!

Probate is the legal process of estate administration. We practice law in Nevada, and in our state, the probate court in the county that the decedent resided in would supervise the process.

In this blog post, we will provide some answers to frequently asked questions about probate.

Why does probate exist?

In an estate planning context, probate exists to provide supervision when an estate is being administered. If the last will is used as a vehicle of asset transfer, an executor would be named to administer the estate. The will would be admitted to probate, and the administration process would get underway.

The court is involved to protect interested parties. To explain by way of example, let’s assume that a friend borrowed $100,000 from you. Unfortunately, he passes away in a car accident before he could pay you. His family does not know about this debt, and they don’t particularly like you.

If there was no supervision, they could just distribute the resources that are contained in your friend’s estate and leave you out in the cold. Probate exists to give creditors a chance to come forward seeking satisfaction. The executor is required to notify creditors about the passing of the decedent.

Another form of protection that is provided by probate is the ability to challenge the validity of a will. There are some instances where challenges are very legitimate, and there would be no window of opportunity if the probate process was not in place.

Intestacy is another situation that can enter the picture when someone passes away without a last will or any other estate planning document. Under these circumstances, the probate court would take control of the situation, and ultimately, the assets in the estate would be distributed under intestate laws of succession.

Do all asset transfers have to go through probate?

There are certain types of postmortem asset transfers that are not subject to the probate process. If you have life insurance, the company would deliver the proceeds to the beneficiary directly. The court would have no involvement. This is also true if you have named a beneficiary to assume ownership of the remainder that is left in your individual retirement account after your passing. When you open a bank account, you have the option of adding a beneficiary. This is called a transfer on death or payable on death account. Brokerage accounts also offer this option. When you have this type of account, the beneficiary cannot access the funds while you are alive.

For payable on death accounts, the beneficiary would obtain a death certificate. It would be presented to the bank or brokerage, and the beneficiary would assume ownership of the assets. The court would not be involved.

It is possible to add someone to the title or deed of your home as a co-owner. This is called joint tenancy, and it comes with right of survivorship. If you do this, the person that you add as a joint tenant would become the sole owner of the home after you die. This transfer would not be subject to the probate process.

A revocable living trust is another estate planning tool that is very useful, and it is a good alternative to a last will. You can consolidate assets with this type of trust, and you can instruct the trustee to distribute assets over an extended period of time if you choose to do so. It is also possible to name someone to manage the assets in the trust if you ever become incapacitated.

In addition to these benefits, assets in a living trust can be distributed to the beneficiaries outside of probate. The same thing is true with assets that are in some other type of trust.

Is there any reason why I would want to avoid probate?

There are some drawbacks that go along with the process. It will take close to a year to run its course, and the inheritors do not receive their inheritances during this interim. There are expenses that reduce the amount of the inheritances that will be received, and it is an open proceeding, so privacy is lost.

Download Our Free Estate Planning Worksheet!

If you would like to build on your estate planning knowledge, download our worksheet. It is being offered free of charge right now, and you can click this link to gain access to your copy.

Our firm has always been very receptive to the needs of the LGBT community, and there was once a time when legal safeguards were absolutely necessary for committed gay couples. When same-sex marriages were not recognized by the federal government, people in these committed partnerships were not afforded the same inherent rights that married people enjoy.

To provide an example, if you pass away without any state estate planning documents at all, this would be looked upon as the condition of intestacy in a legal context. Under these circumstances, the probate court would enter the picture to supervise the administration of the estate.

Ultimately, the assets would be distributed using the intestate succession laws of the state of Ohio. In our state, if a married person dies intestate without any descendants, the surviving spouse would inherit the intestate property.

However, if there is no valid “piece of paper,” this protection would not exist. Surviving parents would be first in line to assume ownership of the intestate property, and if there were no parents still living, siblings would come next. The line of succession would continue from there with the closest blood relatives.

There is also the matter of health care decision making. If no provisions are made for these contingencies in advance, the next of kin would be contacted by medical professionals. Someone that is in a committed relationship that is not legally married would not have the ability to make decisions on behalf of their partner.

We should emphasize the fact that estate planning has always been quite relevant for people that are legally married. The point is that they do have some basic protections from an estate planning perspective that are built into the laws. Things weren’t the same for couples that could not get married, but all that has changed, and a women named Edith Windsor had a great deal to do with it.

Landmark 2013 Supreme Court Ruling

Thea Spyer and the aforementioned Edith Windsor consummated a 30 year romantic relationship with their marriage in Toronto, Ontario in 2007. The following year, the state of New York recognized the marriage as well, but same-sex marriages were not federally recognized.

This was because of Section 3 of the Defense of Marriage Act (DOMA) that defined the institution as something that can only exist between a man and a woman.

There is a federal estate tax marital deduction in the United States that allows for unlimited tax-free transfers between spouses. When Spyer died in 2009, she left a sizable inheritance to her spouse. In spite of the fact that they were married, the IRS demanded over $360,000 to cover the estate tax liability.

Windsor was not prepared to take this lying down, so she filed a lawsuit, and the case ultimately made its way to the docket of the United States Supreme Court. On June 26, 2013, a majority of the Justices found that the section of the DOMA that limited the scope of marriages was unconstitutional.

Since then, same-sex marriages have been recognized by the federal government. As a result, the safeguards that have always been in place for married people are now extended to legally married members of the LBGT community.

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As we have stated previously, in spite of the fact that things have changed for the better, estate planning is a must for all married people, regardless of sexual orientation. Plus, there are those that choose not to get married for one reason or another, and inheritance planning is essential for these individuals as well.

Our firm is here to help if you are currently unprepared from an estate planning perspective. We would be more than glad to sit down with you, gain an understanding of your situation, and explain your options. If you decide to go forward, we can craft a personalized estate plan that ideally suits your needs.

You can schedule a consultation right now if you give us a call at 775-823-9455. There is also a contact form on this website that you can use if you would prefer to send us a message.

 

 

A lot of people like to roll up their sleeves and embrace do-it-yourself projects, and there is certainly nothing wrong with taking the initiative to get things done on your own. It can save you money, and it can become an enjoyable hobby. This being stated, it is important to know where to draw the line when it comes to the DIY phenomenon.

Objective Analysis

There are websites on the Internet that sell do-it-yourself legal documents, including last wills and other estate planning devices. Since it doesn’t take any particular acquired skill to fill in the blanks on a worksheet, it can seem as though you can create your own will using tools that you can easily find online.

Is it wise to put an estate plan together on your own without any legal advice? This is a question that the people at the highly respected website and magazine Consumer Reports were interested in answering several years ago. To do just that, they launched an initiative that would give them some insight into the efficacy of DIY estate planning, or the lack thereof.

They assigned staff members to create last wills using downloads and worksheets that were being offered by three of the leading purveyors of do-it-yourself legal documents. In addition to wills, they actually used online tools to produce a few other legal documents that are not related to estate planning. Of course, we will stick to the last wills here.

Once the documents were in their hands, they had to find legal scholars that were qualified to examine them. Gerry Beyer from Texas Tech University School of Law was engaged, along with Norman Silber, a legal expert from Yale University. The third set of experienced eyes belonged to Hofstra University contract specialist Richard K. Neumann.

At the end of the process, they determined that there were unnecessary limitations in these templates. They found that it is unlikely that the DIY products that are on the market would meet your needs unless your intentions are extremely simple, like leaving everything to your spouse.

Understanding Your Options

The fact that you really can’t trust boilerplate documents that you can get online is only one part of the equation when it comes to the shortcomings of do-it-yourself estate planning. As a layperson, how would you know what documents you should use?

And yes, we are using the plural, because a well-constructed estate plan will cover multiple bases.

When it comes to asset transfers, a last will is not your only option, and in fact, it is not the right choice for many people. A will must be admitted to probate, which is a costly and time-consuming process that strips your family of privacy.

If you were to use a revocable living trust instead, the drawbacks of probate would be avoided. There are additional benefits that can be taken advantage of as well, like the ability to instruct the trustee to distribute limited assets over an extended period of time to protect a spendthrift heir.

This is just one of numerous different types of trusts that can be utilized when you are planning your estate. The ideal choice will depend upon the circumstances, and this is why it is important to discuss your unique situation with a licensed estate planning attorney before you make any impetuous decisions.

Getting back to the concept of multiple different objectives to address, end-of-life issues should be confronted when you are planning your estate. A significant percentage of elders become unable to make sound decisions at some point in time due to Alzheimer’s disease or dementia that is triggered by some other underlying condition.

If you have a living trust, you could name a disability trustee to manage the assets if you become unable to do so yourself. You can also add a durable power of attorney for property to give someone the ability to make decisions on your behalf concerning property that is not in the trust.

A durable power of attorney for health care decision-making will also be part of a typical incapacity plan. This is an advance directive for health care, and a living will is another advance directive that should be included. With this type of will, you state your preferences regarding the utilization of artificial life-sustaining measures.

Download Our Free Estate Planning Worksheet!

We have prepared a very useful worksheet that you can use to gain some additional insight into the estate planning process. It is being offered free of charge, and you can visit our worksheet download page to get your copy.

People that are serious about their estate planning efforts are interested in attending to every detail. This is wise, because the matter boils down to the final gifts that you will be able to give to the people that you love the most. The simpler and more efficient it is, the better for them, so you would naturally be concerned about the time frame after you are gone.

There is no cookie-cutter, one-size-fits-all estate plan, so the waiting game, as it were, will depend upon the way that you plan your estate. Let’s look at some of the details.

Last Wills and Probate

If you use a last will, you name an executor to handle all of the tasks that must be completed to get the assets into the hands of the inheritors. The executor is not allowed to act independently. After your passing, the executor would admit the will to probate, and the court would supervise the estate administration process.

When probate enters the picture, your heirs will not receive their inheritances shortly after your passing. The first order of business for the court would be to determine the validity of the will, and to this end, any party that wants to issue a challenge can take advantage of this window of opportunity.

Creditors must be notified, and they are given a certain amount of time to come forward seeking satisfaction. The executor would have to identify and inventory all the assets that comprise the estate, and appraisals and liquidations are typically going to be necessary.

All in all, the best case scenario would be 6 to 8 months to a year. More complex cases, like a contested estate situation, can take considerably longer. For example, it took well over a decade for the Anna Nicole Smith case to run its course.

It should be noted that this is not the only drawback of probate. Considerable expenses accumulate, and this money reduces the amount of the inheritances that will eventually be passed along to the heirs. There is a loss of privacy as well, because probate records can be accessed by the general public.

Revocable Living Trusts

A lot of people that do not look into the subject closely assume that a last will is the right asset transfer vehicle to benefit your heirs. They are under the impression that trusts are only utilized by very wealthy people that have estate tax concerns or other complicated situations to address.

While it is true that there are trusts that are beneficial for high net worth individuals, these would be irrevocable trusts. There is another type of trust called a revocable living trust that can be ideal for “the rest of us" and actually benefit your heirs.

When you use a revocable living trust as the centerpiece of your estate plan, you maintain complete control of the assets, because you would act as the trustee and the beneficiary while you are alive and well. You name a successor trustee to take over when the time comes, and you name your heirs as the beneficiaries. After your passing, the trustee would be empowered to distribute assets to the beneficiaries in accordance with your wishes as stated in the trust declaration.

These distributions to beneficiaries would not be subject to the probate process and the undo time consumption that goes along with it. Many of the other drawbacks would be avoided as well, and a living trust would provide additional advantages. For one, you can include a spendthrift clause to protect assets that you are leaving to someone that does not manage money effectively.

We Are Here to Help!

Our doors are wide open if you would like to discuss your estate planning objectives with a licensed attorney. You can schedule a consultation right now if you give us a call at 775-823-9455. There is also a contact form on this website that you can use to send us a message.