It is said that there are some things that money can't buy, and wisdom would certainly be one of these things. When you are planning your estate your primary concern is going to involve our valuables. However, you may be able to pass on your values as well by maintaining a blog during your retirement years.
A lot of people have an interest in writing their memoirs once they have the time to devote to the project. This is a great way to share formative experiences with people that you care about. There is no substitute for learning by experience and some of these stories may be very instructive to the people that you will be leaving behind.
But what about publishing? And what if you don't finish the book prior to your passing?
There is a very simple solution these days in the form of self publication on your own blog. You can actually start your own blog without having any particular technical expertise by using very user-friendly platforms that are offered on sites such as WordPress.org.
When you have your own blog you can publish your work incrementally as you see fit so your family and friends can always have something new to read if you are updating it regularly. If you work on your blog throughout your retirement years you will have assembled a significant body of work by the time you pass away.
While it will forevermore exist in cyberspace, most blog sites provide a publication service, so you can print off a book of your blog. Now family members and even future generations of your family can draw from your experiences into perpetuity. There is no time like the present, so get started!
If you are like millions of Americans, you probably own at least one pet. Have you taken the time to consider what will happen to your pet when you die? If you haven’t, now is the time to do so before it is too late.
When you die, your assets will all be secured until your executor or personal representative has the chance to inventory them and file the proper documents with the probate court. But what about your pet? Someone needs to look after your pet immediately after you die. A well meaning loved one may step in for a few days, but what happens after that? Who will pay for his or her care? Sadly, thousands of cats and dogs end up in shelters each year because their owner failed to make plans for the animal in the event of their death. You can ensure that your beloved pet is not one of these animals by creating a pet trust.
A pet trust takes all the guesswork out of your pet’s future after your death. Not only can you appoint a trustee whose job it is too ensure that the pet is well cared for, but you can also leave behind sufficient funds that are earmarked just for your pet to cover the cost of his or her care. Don’t take any chances with your pet. Take the time now to create a pet trust and give both you and your pet some peace of mind.
Anyone who owns a pet knows the love that can be shared between a human and an animal. Not surprisingly, many people want to make sure their pet is properly cared for in the event of their death in the same way they want to make sure family members are taken care of financially. One way to do that is to create a pet trust. Although a pet trust is a wonderful estate planning tool, be sure that you do not create a probate nightmare as a result of the terms of your pet trust as did the late Leona Helmsley.
For anyone not familiar with the story, Leona Helmsley was a New York hotel heiress who was known as the “Queen of Mean”. Upon her husband’s death, Helmsley bought a Maltese puppy whom she named Trouble. Trouble was an apt name as it turns out.
Helmsley created a pet trust for her beloved pooch and designated a whopping $12 million to fund the trust. As if this excessive amount was not enough to raise the attention of the probate court charged with overseeing her estate upon her death, she also disinherited many close family members, including some of her grandchildren. After a lengthy court battle, the trust was decreased by the court to $2 million and Trouble lived out the rest of his life in luxury.
Given Helmsley’s reputation, it may actually have been her intention to cause a probate battle upon her death; however, most people strive for the opposite--an estate free from challenges and lengthy probate battles. If your goal is to be sure your pets are cared for, by all means fund the trust with sufficient funds to care for your pet after your death. In most states that authorize a pet trust, there is a provision that requires the principal of the trust to be a reasonable amount. This opens the trust to challenge in a court if the remaining beneficiaries consider the amount you have specified to be unreasonable. Take a lesson from Leona - steer clear of an excessive amount that begs for an estate challenge to be filed.
Have you considered who would manage your financial afffairs if you became incapacitated? Married couples are sometimes under the impression that their spouse will automatically be given access to all the assets. This may not be the case. Assets that are titled jointly may be easily accessed but that is not always the case. Take for instance real property that is jointly titled. If the well spouse desired to refinance, obtain a secured loan or sell real property that is jointly owned a legal representative would have to be appointed to sign in behalf of the incapacitated spouse. A power of attorney may not adequately authorize an agent to handle these transactions. Then there is the issue of a retirement account or pension benefits solely in the name of an incapacitated spouse. In these cases, the well spouse, child or parent woul likely need to seek a court’s permission to access your assets taking a significant amount of time and money.
Often, when someone becomes incapacitated, assets that are needed by loved ones to maintain the household or pay bills are inaccessible when most needed. Even worse, a dispute can arise as to who should manage the assets which can prolong the process of obtaining a court order.
There are, however, a variety of estate planning tools that can be used to avoid the need for court intervention. Executing a comprehensive durable power of attorney or creating a revocable trust may also be viable options. With just a small amount of pre-planning on your part you can avoid a lengthy and costly court process in the event of your incapacity.
Once the world began to get over the shock of the death of music legend and golden girl Whitney Houston, reports began to surface that there was trouble brewing with regard to her estate. Houston was found dead in her Beverly Hills hotel room at the age of 48 and left behind only one heir -- 18 year old Bobbi Kristina. While fans rushed to buy anything related to Houston, Houston’s family was already poised for a fight over her estate with Houston’s ex-husband Bobby Brown. With the news this week that Houston left behind a trust, everyone in Houston’s camp can breath a sigh of relief.
Despite unprecedented success in her professional career throughout the 90s, Houston was plagued with personal problems as a result of a battle with drug and alcohol addiction as well as a stormy relationship with Bobbi Kristina’s father, singer Bobby Brown. After finally divorcing Brown in 2007, Houston appeared to be on the road to a comeback when she was found dead last month.
While Houston’s daughter is of age to inherit directly, she allegedly battles her own issues with drugs and alcohol, making her susceptible to a claim that she is unable to handle her own finances and in need of a conservator. Houston’s family was reportedly worried that Brown would petition a court to become her conservator, effectively gaining control of Houston’s fortune. Houston, however, apparently thought ahead and created a trust for Bobbi Kristina. By creating a trust, Houston put a stop to any attempts to gain control of the money and put control of the money in the hands of someone she hand picked as trustee.
We all leave behind a legacy when we die -- what your legacy is depends on how much time and effort you put into creating it prior to your death. You don’t have to have a vast fortune in order to create a legacy plan; however, the wealthier you are, the more important it is to create a legacy plan that is consistent with your objectives.
A legacy plan is your chance to elaborate on your basic estate plan. Your basic estate plan allows you to determine who will receive your assets when you die. A legacy plan allows you to ensure that those assets are preserved for generations to come and/or allows you to continue contributing to causes that have meant something to you during your lifetime. Without a legacy plan, your wealth may be significantly reduced by various taxes levied on your estate at the time of your death. In addition, you will lose the opportunity to direct how your wealth will be managed after your death.
A legacy plan often incorporates trusts and other estate planning tools that can allow you to direct how your assets will be used for generations to come. A generation skipping trust, for example can provide income for your children and ensure that assets are preserved for your grandchildren. A charitable trust can be created to provide a mechanism for you to continue to support a cause that was important to you during your lifetime long after your death. Start planning now so you can create a legacy of which you can be proud.
When you create a trust, one of the most important decisions you must make is who to appoint to succeed you as your trustee. Although each trust is unique, there are some basic considerations that you may wish to take into account before making a decision regarding the appointment of a trustee.
Owning a dog is rewarding in a number of different ways, and for seniors a dog could provide a very welcome companion at a time when loneliness can be an issue. There is no replacing your family of course, but for many people, dogs are indeed man's best friend. You may find that a canine in the household will uplift your mood and perhaps even provide you with protection.
If you are a dog owner you should consider who would be caring for your pet if you were to pass away before the animal. This is obviously a serious consideration for senior citizens who own pets, but it is also important for anyone who owns an animal just as a precaution because life is uncertain at any age.
Your first task is going to be choosing a capable caretaker. It is very possible that a particular person will immediately come to mind. You may have a friend or family member that knows the pet well and who already has somewhat of a relationship with the animal.
Once you determine who would become the pet's caretaker in the event of your death you have to consider the financial side of things. You can provide financial resources to the caretaker by giving this individual a direct inheritance earmarked for the pet's care. A better option, however, would be to create a pet trust for the benefit of your dog. Doing so will keep your pet from becoming a burden to those left to care for it.
If you have any questions about pet planning, simply take a moment to arrange for a consultation with a good Northern Nevada estate planning lawyer.
A recent article in Forbes, quoting statistics provided by the Harris organization, found that out of 1022 people polled only 35% had executed a last will. Among younger Americans the figure was even lower as you might expect, with just 24% of the people who participated in the survey, under the age of 35, had executed either a last will or a living will.
Estate planning is an area where procrastination not only puts that person at risk it also puts there loved ones in a difficult position in the event of death or disability.
Most younger families rely on earned income to maintain quality of life. For this reason, it is essential that such families have an income replacement vehicle. This need is often met through life insurance. Coverage should be revisited as financial responsibilities increase. All families are well advised to implement a sound long-term financial plan. If this sounds like a good idea to you, take the first step and arrange for a consultation with a licensed and experienced Reno financial planning attorney.
The dictionary definition of the word "legacy" will tell you that your legacy involves gifts of property and monetary assets after your passing. This is of course a large part of it, but there could be more to shaping your legacy than simply arranging for the passing of your assets to your family members.
Depending on your resources exactly how you go about this can vary considerably. There are those who will make a donation that is specifically used to finance some type of building project. This may carry your name into perpetuity, which can be quite rewarding for many people.
Some people will leave behind the resources to provide a scholarship or scholarships to worthy students. This too can be an enriching portion of an individual's legacy.
You can also choose to pass along the wisdom that you have acquired throughout your life by committing your experiences to writing. Some people choose to write a full-blown autobiography and leave it behind for future generations to draw from. Others will author an ethical will that passes along their moral and spiritual values. Today, there are many resources to assist in writing an interesting personal history that can be found online or in bookstores. The same is true of writing an ethical will.
Carefully selecting certain family heirlooms and/or personal possessions and handing them on to particular respective heirs for specific reasons can also be part of a carefully planned legacy.
There are many possibilities to take into account when you are preparing for the latter portion of your life and your eventual death. If you're interested in taking estate planning to a higher level, don't hesitate to get in touch with a Northern Nevada legacy planning attorney to arrange for an informative consultation.
Some view Social Security as their primary retirement plan. The reality is that this program is a basic safety net that may not provide the financial resources needed for a comfortable retirement.
That said, since most are required to pay into the program it can be viewed as welcome supplement to retirement if nothing more. There are several commonly asked questions that people who are engaged in retirement planning often ask.
The first question most people have involves the age of eligibility. Qualified Americans who were born in 1954 and earlier reach full retirement age in a Social Security eligibility context on their 66th birthday. The age of full eligibility then rises by two months per year through 1959. Anyone born after that becomes eligible to receive their full Social Security benefit when they reach 67.
Another question people often have is whether or not they can work while receiving Social Security. The answer is that once you reach the age of full eligibility you can indeed earn any amount of income and still collect your full benefit.
However, you don't have to wait until you reach your full eligibility age to begin receiving Social Security. You can start receiving Social Security when you are as young as 62, but you receive a reduced benefit. If you work before you reach full retirement age while you are receiving this reduced benefit your payout is cut by one dollar for every two dollars that you earn above a certain annual limit. Right now that limit is $14,160.
The above information is accurate as of this writing but of course it is subject to change. To review current information visit the following website.
We seem to live society that is somewhat obsessed with celebrities lives. Some media reports are instructive with respect to estate planning dos and don'ts. It was recently announced that Frenchwoman Liliane Bettencourt, who is the second richest woman in the world, has been declared mentally incompetent to handle her own affairs. Bettencourt is 88 years old and reportedly suffering from Alzheimer's induced dementia. Her family members have been involved in court struggles contending that she has been making bad financial decisions, including the diversion of some $1.4 billion to French renaissance man, Francois-Marie Banier. Bettencourt reportedly sought assistance to create a new will making Banier the sole beneficiary of her estate. The French court has given Bettencourt's daughter Francoise Bettencourt-Meyers and her two grandsons control over the Bettencourt fortune, which is estimated to be valued at about $23.5 billion. According to Forbes this makes Liliane Bettencourt the 15th richest person in the world.
Situations like these provide a window into the way things can go if you do not engage in appropriate planning when you are in full control of your faculties. Whether or not the heiress was a victim of financial exploitation is in question. It may be safe to say that most people would not choose to give away $1.4 billion to someone who is not a family member and then change their will to disinherit their only child and grandchildren when they are in their 80s when they are of sound mind. Some 40% of people age 85 and up suffer from Alzheimer's disease. So yes, something like this could happen to you, which emphasizes the importance of seeking a qualified estate planner to assist in putting together a sound estate plan.
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.
When you are planning for the future it is very important to be apprised of all the facts and trends that are relevant. A vital area to be aware of is the cost of long-term care. According to the United States Department of Health and Human Services 70% of people who reach the age of 65 will eventually need some form of long-term care.
People age 85 and older are the fastest-growing segment of the society, and one in every four of these people is residing in a nursing home. The average stay in a nursing home is approximately 2 1/2 years, and the national average cost of a year long stay in a private room was $83,500 in 2010. You may be looking at a nursing home expense exceeding $200,000 at the end of your life.
Some families are able to afford a quarter of a million dollars in custodial care costs but there are others who are not in that position. Others may have invested in long term care insurance to pay the costs of this eventuality. An alternative for others that have insufficient assets to pay for long term care and do not have insurance to pay the costs is the State Medicaid program. To qualify for Medicaid benefits the applicant must not possess more than $2,000 in cash assets. Some assets, such as a primary residence, one vehicle, and most household items are excluded assets.
When a married individual is seeking to qualify for Medicaid benefits his or her spouse is allowed to keep half of the shared assets that are countable up to $109,560. The non-institutionalized spouse can keep all of his or her income.
To find out if this option is something that you should take into consideration consult with an experienced elder law attorney who can evaluate your specific situation and advise you accordingly.
It is never too early to start planning for your retirement. There are those who are under the impression that Social Security is going to take care of their foundational retirement income needs, and that Medicare will cover all their medical expenses, including long-term care. Perhaps unfortunately, none of the above is the case for most people and this is something to keep in mind when you are looking to the future.
Many people don't take retirement planning seriously. Much has been said of the baby boomer generation reaching retirement age and of the 10,000 new applicants for Social Security lining up esch day. The numbers coming from the Social Security Administration are telling to say the least. Some 64% of people who are receiving Social Security right now say that it is their primary source of income. Even more startling is the fact that Social Security provides at least 90% of the income of a third of its recipients. According to a recent Associated Press-LifeGoesStrong.com poll 24% of baby boomers who responded said that they have no retirement savings at all. It is staggering to that the average Social Security benefit is $1074 per month and that so many are relying on it for most of their income.
The most blunt way to put it would be to say don't let this happen to you. Arrange for a consultation with an experienced retirement planning attorney, devise a plan, and stick to it. You will enjoy your golden years more fully without unneccessary concern about the future of Social Security.
When you are planning for your retirement and the ultimate distribution of your assets to your loved ones after you pass away it is important to make accurate projections with regard to anticipated expenses during your post-work years. We all like to stay positive and expect the best, but if you want to plan intelligently you must do so while being prepared for less than pleasant contingencies as well.
The United States Department of Health and Human Services tells us that about 70% of people who reach the age 65 will someday require long-term care either in the home or at a nursing home or assisted living facility. So the reality is that it is likely that you will someday need this type of care, and the costs are considerable. According to the annual MetLife Mature Market Institute survey the national average for a yearlong residence in a private room in a nursing home was $83,500 in 2010. A year in an assisted-living facility would run you about $40,000 on average.
As you can see, these expenses are an important factor to project into your long-term budget. Below are a few of the ways that people approach the costs associated with long-term care.
Long-Term Care Insurance
You can purchase insurance that will pay for long-term care should you need it at some point in time. The premiums are expensive but the younger you are when you obtain the coverage the more affordable it is.
Medicaid
It is possible for seniors who need long-term care to qualify for Medicaid while still retaining possession of their homes, vehicles, and personal valuables. If you are married and your spouse needs long-term care there are strategies that can be implemented that can enable you to maintain your standard of living and retain your personal assets while your spouse utilizes Medicaid to pay for his or her long-term care needs.
Out-Of-Pocket
Of course, the obvious way to pay for long-term care is to simply take out your checkbook and a pen and write a check. For some people it may take some careful planning to be in this position, but if you are interested in building wealth throughout your life and you get the right advice long-term care expenses should be something that you can absorb. If long-term care insurance has been part of the planning, however, you can both prepare for the need for long-term care and not adversely affect your hard-earned estate.
Those who have begun to take the process of estate planning seriously will invariably find themselves considering the period of time that will precede the actual trigger event. When you engage the services of an estate planning attorney to handle the legalities surrounding the transfer of your assets after you pass away you may want to consider creating a comprehensive plan that also addresses some of the eventualities that you may face toward the end of your life. As unpleasant as it may be for some people to consider, incapacity is one of these contingencies and if you ignore it you do so at your peril.
To evaluate just how likely it is that you may suffer a period of incapacity when you enter your twilight years you need only look at the statistics. According to studies compiled by the Alzheimer's Association, as many as one out of every eight Americans who reach the age of 65 suffer from dementia, most often Alzheimer's Disease. But as you get older, the likelihood of contracting Alzheimer's increases. Some studies indicate that 40% of those who have reached the age of 85, have Alzheimer's disease. Alzheimer's eventually brings dementia along with it, and dementia can inhibit your ability to make sound financial and health care decisions.
This is why it is a good idea to have the appropriate durable powers of attorney in place as a part of your retirement/estate plan. The "durable" power allows the instrument to remain in place should the grantor become incapacitated. Most people will execute both a durable financial power of attorney and a durable medical power of attorney and may name two different attorneys-in-fact, or agents, whose experience or expertise is appropriate for each respective area.
If you don't have the appropriate powers of attorney in place and you were to become incapacitated, interested parties may have to petition the court to appoint a guardian to act in your behalf and you would become a ward of a person you may not have preferred or even a ward of the state. Providing for this in advance will allow a person to choose their own representatives in advance. This is a vital matter that ought to be part of your planning when you are preparing for the latter stages of your life.
There are many "tools" to choose from when establishing your estate plan. One traditional option is the Will. If you research information about Wills you will find Internet marketing sites that will sell you a "one-size-fits-all" template. To hear them tell it, drawing up a Will is a simple matter but there's more to it than meets the eye.
If you pass away leaving a Will as your estate plan your estate will pass through a probate procedure. The probate court will examine your Will to ensure its validity and proper execution. During this process interested parties will have an opportunity to contest your Will. In this case the Court would schedule a hearing to review the matter. Obviously, when you're planning your estate you don't want your will to be contested; you want your wishes to be carried out to the letter.
Each state has different laws surrounding the formalities of drafting and executing a Will and the process of probate. If you were to use some sort of general template as a Will there is no telling whether or not it will wind up being ironclad once it is probated in the State Court. Reno probate lawyers make a career out of working with the probate courts in northern Nevada, and we understand exactly how to construct documents that are specifically targeted for the local Court. Providing for your loved ones after you pass away is a serious matter that requires a an experienced estate planning attorney.
