Browse Our Estate Planning Articles

Some of these articles have been written by our law firm and other articles are written by the American Academy of Estate Planning Attorneys and compliments of our law firm. Any feedback or questions about the articles can be addressed by contacting our office.

REGISTER TO VIEW ESTATE PLANNING ARTICLES

Welcome to our library of free articles! Feel free to request access to any article available.

CLICK TO REGISTER

- OR -

Enter the password that was given to you:

Pet Planning - Not Just for the Rich and Eccentric

When people think of someone setting up a Trust for their pet, they might imagine Leona Helmsley's pet Maltese named Trouble drinking Perrier from a crystal bowl in a lavish Manhattan penthouse. However, you don't have to be rich and eccentric to set up a Pet Trust to care for their beloved pet(s). Pet Trusts are most commonly set up by caring individuals who just want to make sure that their non-human family member is taken care of in the event of their own death or disability. This article discusses the 3 easy steps necessary to set up a Pet Trust for your furry and feathered family members. Remember, without you planning for them in advance, they may face the same awful fate that awaits so many other orphaned pets. You will sleep better knowing that they will continue purring or wagging their tail even if you're no longer able to care for them.

Protecting Your Children from Our Litigious Society

How can you protect your children and their inheritance from litigation? This article explains how some innovative trust, the Family Sentry Trust and the Family Access Trust can help.

What's Important in Your Life?

This article looks at what's important in life: family, friends, and values. The article looks at tragedies in our lives and how we always come back to what's important in life. The article then transitions to a discussion of Legacy Planning. The article discusses the Family Wealth Trust, the Family Access Trust, and how they may be used as part of Legacy Planning to protect the children after you are gone.

Legacy Planning: A Holistic Approach

This article looks at the latest developments in estate planning: "Legacy Planning." Legacy Planning focuses on the values and guidance to be relayed to future generations, not just wealth. The article discusses The Family Wealth Trust and its two subtrusts, the Family Access Trust and the Family Sentry Trust and how they can protect the beneficiaries from divorce and creditors.

Putting Your Legal Life Back Together After Divorce

Divorce is common today. This article examines how to put your legal affairs back in order after a divorce.

Decisions, Decisions, Decisions...

This article looks at the factors people consider when making estate planning decisions.

Protecting Your Children from Their Nightmares... and Yours

The article examines statistics regarding divorce in America and how to protect your children from divorce. It examines setting up a divorce protection trust for them as well as using a marital trust for second marriages for your own assets.

Your 401k or IRA: A Problem Asset?

The article looks at IRAs and 401ks and how we need to save for retirement. Then it looks at the tax problems these plans create. It examines the stretch out available with the FRPT. It also examines using distributions to fund life insurance.

What Happens in My Initial Estate Planning Consultation?

This article describes what happens in the initial estate planning consultation, including the questions asked, the discussion of goals, etc. The article also references a CNNfn segment that talked about the importance of stringent continuing education requirements, like those of the American Academy of Estate Planning Attorneys.

Is a Power of Appointment the Same as a Power of Attorney?

The article examines a few legal terms that can be confused, like Power of Attorney, Attorney in Fact, and Power of Appointment. The article examines the terms and specifically, how Powers of Appointment can add flexibility to a plan.

How to Leave a Mess to Your Heirs

This article examines several common mistakes that create a mess for heirs: Lifetime Transactions without counsel (such as adding people on title to realty), Failure to Plan, and Failure to Communicate. The article poses the problem and then offers a solution to each.

A New Way to Give

This article examines new opportunities for charitable giving directly from an IRA.

Do You Want Your Spouse to Lose Your Biggest Asset?

The article examines how beneficiary designations must be coordinated in order to have an effective estate plan. It looks at the story of a woman who forgot to change her beneficiary designations. As a result her husband of 20 years did not get her retirement plan proceeds.

Keep Your Cake - And Eat It, Too!

This article examines the Medicaid Income Only Trust. It gives an example of two women who are roomates in a facility: One who contributed to a trust and one who did not.

Preserving the Ranch for the Next Generation

The article examines a typical ranch family, the problems they face, and solutions. It touches on problems of joint tenancy, incapacity, and succession. It offers an RLT, a second to die ILIT, and a buy-sell as solutions.

Medicaid Changes Make Pre-Planning Essential

This article discusses how long-term care costs can be a major financial drain. It examines Medicaid as a possible way to pay for long-term care. It looks at how the changes in Medicaid law could make it much more difficult to plan. It stresses the need for pre-planning.

As Time Draws Near

This provides an overview of planning strategies when someone is approaching death.

Preserve Your Wealth with Medicare Part D

The article provides a basic overview of Medicare Part D and why it is important from an estate planning perspective.

Is Estate Planning for Me?

This article examines various reasons people think estate planning is not for them, such as they aren't married or don't have money. It explains why they need estate planning.

Remarriage: Treat New Spouse Like Royalty

Examines use of income trust in remarriage situations. Analogizes to royal trust in Duchy of Cornwall.

The Problems of Giving Everything Away

This article examines a case of a woman who titles everything in the name of the children. It examines why joint title and giving everything away may not be the best course of action.

Relax: Everything's Handled

Tells the story of a couple that is going on a second honeymoon and is worry-free because they did their estate planning.

Asset Protection Planning in Litigious Times

In our ever increasingly litigious society it is essential to protect yourself from potential creditors. The article examines asset protection techniques in maintaining insurance to the use of asset protection trust.

Medicaid Planning: There's a Right Way and a Wrong Way

You can plan for Medicaid the wrong way (through fraud) or the right way. GWA gives true fraud story and a brief Medicaid qualification overview.

Do I Need to Plan If I Have Joint Tenancy Property?

We all have the friends or family that think they are the armchair experts on everything. They want to walk on your back when you are in agony. They told you Enron was a hot stock to buy. And, they tell you that all you need is to hold assets in joint tenancy.

My Child is 18, Now What?

It seems like just yesterday your son or daughter was a toddler and you were beaming with pride as they took their first wobbly steps. You have been there for them as they had their first day of school. You were there when they skinned their knee sliding into first base in little league. You helped them learn how to ride a bicycle and watched as they teetered down the driveway, hoping they would not fall (or crash into your car that you had forgotten to move to the safety of the garage). You were there as they grew faster than you ever thought possible. Soon they were driving, as evidenced by a few extra gray hairs on your head. Now, they are reaching adulthood, their 18th birthday.

The Best Laid Plans

Robert Burns, the famous 18th century Scottish poet, wrote "the best laid plans of mice and men often go awry." This statement holds true in most areas of life, including estate planning.

Your Ex-spouse May Get Most of Your Assets

Divorce is relatively commonplace nowadays. According to the National Center for Health Statistics, there were 957,200 divorces in the United States in 2000. That means that more than 1.9 million Americans get divorced each year. According to the United States Census Bureau, approximately one-half of all marriages now end in divorce.

Irrevocable Trusts Need Not Be Scary

Irrevocable trusts are used frequently in estate planning for a wide variety of purposes. Irrevocable trusts can be used to make a completed gift of assets, while restricting access to the assets or retaining indirect control. Irrevocable trusts can be used in order to help protect assets from creditors of the trust beneficiaries. Such trusts even can be used as part of planning to qualify for Medicaid benefits.

Five Common Estate Planning Mistakes and How to Avoid Them

Estate planning is a complex weave of legal and personal objectives. Issues of taxation, family law, and business entities combine with the most personal of family concerns. Attorneys that focus on estate planning face this challenge and have experience in meeting their clients needs in planning to achieve personal and financial objectives. Here are some common mistakes made by attorneys that do not focus their practices in estate planning.

Privacy Protections: Don't Be Overprotected

Recent federal laws and regulations have created new privacy protections for your medical information. These laws are known as "HIPAA" (Health Insurance Portability and Accountability Act). Now physicians, hospitals, health insurers, and other "covered entities" must comply with strict rules or face fines and potential criminal penalties. An innocent mistake would incur a fine of $100. More serious breaches of privacy, such as releasing information for malicious harm, could result in fines of up to $250,000 and 10 years in prison. Understandably, health care providers are being extremely careful about the release of medical information in the face of such penalties.

Do-it-yourself Estate Planning: You Get What You Pay For

Self-help books are an ever-increasing segment of the American publishing market. There are books and software on everything from gardening to health care. There are even books and software out there that purport to allow an individual to draft his or her own estate planning documents. Some of these items are promoted by media personalities and others by purported experts

Planning in a Down Economy

A poor economy puts a different spin on planning. It is likely many of your assets have decreased in value. Interest rates are low. The size of your overall estate may be less than it once was. All of these factors should be considered as you evaluate or re-evaluate planning options.

Give Undue Influence Due Consideration

It is natural for people who have a close relationship to want to benefit each other. However, sometimes, people can try to use a close relationship to try to take advantage of the other, more vulnerable person.

Get an Estate Plan - Not an Estate Scam

Estate planning is an important part of life. In fact, it is central to who we are as people. In planning for our future, we must analyze who we are, what our goals are, and whom we wish to help in this world. It makes us aware of our own mortality, but also the impact we can make in the world. A qualified estate planning attorney can help you with this important and intimate process — accomplishing your goals in the best, most tax efficient manner.

Estate Planning Is Life Planning

What is the first thing that leaps to most peoples minds when they think about estate planning? A will. Weve all seen the dramatic scenes in films of yesteryear: the reading of the will. The truth of the matter is that the will is no longer the focal point of estate planning.

Choosing Beneficiaries Is Not Enough

Determining who should inherit your assets is a surprisingly difficult task for many of us. However, with time and due consideration, an answer comes. Now you are ready to tell the world who should inherit your assets and who should not get anything. This seems relatively straightforward. However, things often are not as simple as they superficially appear.

Preserving the Family Home from Medicaid Recovery

Many of us fear that as we age we will need medical assistance. We strive throughout life to maintain insurance to pay for medical expenses while trying to save. Many of us also want to leave something for our children, so that they have an easier time in life than we did starting out. Perhaps the most meaningful asset to leave is the family home, for emotional as well as economic reasons.

Basic Planning for Unexpected Tragedy

None of us ever expects tragedy. Some of us plan in case it strikes us. But we never really expect it to happen to us. But, on February 25, 1990, tragedy struck Terri Schiavo and her family. At 26, Terri was a woman in the prime of her life enjoying a beautiful day in Florida. However, on that fateful day Terris heart inexplicably stopped beating. She became comatose and unable to communicate.

Trustee Investment Decisions: Are You Being Prudent?

eing a trustee is both an honor and a responsibility. Someone trusted your wisdom and judgment enough to place you in a position of authority over their hard-earned assets. These assets may be critical to achieving their most important goals, such as supporting and educating their children.

Beneficiary Designations: the Hidden Trap

More and more of us recognize the need for careful, methodical estate planning. We prepare our wills and trusts. We labor over who should be guardians for our children and who should be trustees and executors. We decide how and when our children or other loved ones should get what we leave behind. However, all too often people who thought they had it all planned fall into a hidden trap: improper beneficiary designations.

Saving for Retirement: But What If I Need It?

Tax-deferred Leveraging of Savings
We all know the importance of saving for retirement. Saving through a tax-deferred vehicle like an IRA or 401(k) can be a great way to leverage those retirement dollars. If you defer tax on $10,000 and invest it at 7% for 30 years and then pay tax on the entire amount, you would have approximately $53,000 after taxes (assuming a 30% tax rate at all times). On the other hand, if you paid the tax on the $10,000 and paid tax on the 7% earnings each year, you would have only $29,000 after 30 years. Tax-deferred retirement plans are extremely popular. According to the Investment Company Institute (2000), Americans have $11.5 trillion in retirement plan assets. Most people focus on how to maximize retirement plan contributions and minimize required distributions from retirement plans. From a tax perspective, that makes a great deal of sense.

I Have Some Property Overseas, What Do I Do?

Many Americans have assets outside the United States. In fact, according to a study by the U.S. Department of Commerce, Bureau of Economic Analysis, direct investment abroad by Americans in 1999 exceeded $1.13 trillion. Whether it is a tract of land in the ancestral homeland or a vacation property in a tropical climate, great care must be exercised in planning for these assets.

Dying Isn't Necessarily the Worst Thing That Could Happen

When we think of estate planning, we ask ourselves: What happens if I die? Certainly, this is a very important question. While failing to plan for death can cause terrible consequences, failing to plan for disability could be even worse.

If You Really Love Me, Don't Leave Me Anything!

This sounds like an odd statement, but it may be very accurate. Leaving assets directly to children or other beneficiaries may cause them problems which could be easily avoided or reduced by leaving them the assets in trust rather than outright. Even if the child is a very capable adult, it is often better to leave the assets in trust. The child can receive the assets in trust and could be trustee of that trust. As trustee, the child could invest the assets as desired, could purchase a home with trust assets and live in it, and could even start a small business. All of this can be done while leaving the assets in the trust. Further, as trustee, the child could make distributions needed for his or her health, education, maintenance and support, or that of his or her own children. Finally, the child can be given a power to determine who should get any remaining assets at his or her own death.

Do You Know IRA? Shattering Some Misconceptions Surrounding the Individual Retirement Account

These days, traditional Individual Retirement Accounts ("IRAs") are common retirement savings vehicles. They provide individuals with a means to finance their retirement whereby the amounts set aside, as well as the growth, are not taxed until its withdrawal at the owner's retirement or other date. But even though many people utilize this beneficial form of investment, many misconceptions still remain regarding the rules that govern IRAs. Once these misconceptions are corrected, it's possible to reap the full benefits of an IRA.

End of Year Planning

This has been a tumultuous year for Americans. The attacks on the World Trade Center and Pentagon, anthrax-laden letters, and stock market gyrations have kept us on edge. Most of us will bid 2001 good riddance and welcome the New Year with open arms. But, before we do that, a little planning now can help us to prepare for next year.

Planning Reduces Stress in Times of Tragedy

The recent tragic events in New York, Virginia, and Pennsylvania have shaken each of us to the core. We look at the horrific images of destruction and misery surrounding us and they speak to us in a personal way. Many Americans have flocked to churches, synagogues, mosques, and other places of worship seeking answers to questions regarding the meaning of life and the existence of suffering.

Why Women Hold the Keys to Successful Estate Planning

Some people still assume that, when it comes to financial and legal matters, women are not key players. However, this is entirely inaccurate. Women are most likely to be highly involved and greatly affected by estate planning. In recent generations, women have taken on a larger role in the financial arena. The number of women in the workplace has tripled in the last fifty years. Meanwhile, the real median income of women has increased by sixty-three percent, while that of men has declined by six percent in the same period. This income shift changes the family dynamics and gives women a greater voice in financial matters. According to a recent survey, women have an equal say in major financial decisions in seventy-five percent of households. In homes where one partner is solely responsible for financial decisions, women outnumber men in that role by a four to three margin.

Saving for a Child's Education with Qualified State Tuition Programs: Now Even Better, But Still Proceed with Caution

Since its introduction in 1996, many parents and grandparents have become familiar with the Qualified State Tuition Program ("QSTP"), or Section 529 plan (referring to the Internal Revenue Code section authorizing the program). It is a state-sponsored (or private institution-sponsored) investment vehicle that allows you to set aside funds for qualified higher education expenses. You can name anyone as the beneficiary of a QSTP - a family member, or even yourself. Qualified expenses include tuition, fees, books, and room and board. QSTP funds are professionally managed and generally incur low management fees. You can select a QSTP sponsored by your home state or one sponsored by other states or institutions. Proceeds from such plans can be used for any qualified educational expenses of an accredited educational institution, whether in-state or out-of-state, private or public.

Lowering Your Chances at Qualifying for Medicaid? Know the Law before Transferring an Asset

Estate Planning is often a necessary task. It is most commonly known as a way to direct your assets to those you wish to provide for after your death. But, did you know that part of the estate planning process could also help with providing for your care or the care of a loved one upon disability? A well thought out estate plan can prove especially useful where a beneficiary may need government assistance, such as SSI or Medicaid. A hasty transfer of assets can mean the difference between receiving the government's help or being on your own.

Medicaid and Life Insurance: Can Your Past Financial Planning Jeopardize Your Eligibility?

Most people are aware that, in order to qualify for Medicaid benefits an applicant must meet strict state-imposed income and resource restrictions. Luckily, when determining which resources are available, many assets are exempt from counting towards the Medicaid resource limit. Some examples include:
1. Principal place of residence, lot, and sale proceeds if another residence is purchased within 3 months of the sale;
2. Household goods and personal effects up to a specified amount;
3. Engagement and wedding rings;
4. Automobile used for necessary transportation, such as for transportation to employment or medical treatments;
5. Automobile not used for above purposes, up to a specified value;
6. Business property; and
7. Life insurance policies up to a specified amount.

Who Is Your Personal Representative?

When a person dies, his or her estate, (the assets owned at death) will transfer to loved ones through one of three ways: 1) by contract; 2) by Will; or, 3) by the laws of intestacy of the State of the deceased person's residence at death. Only through the first two ways of transferring assets does the deceased person get to choose who receives his or her assets. Under the laws of intestacy, the State chooses who gets the deceased person's assets.

I Already Prepared My Will or Trust: Do I Still Need an Attorney?

Many people have the misconception that once they have created a Revocable Living Trust, they no longer need the services of their estate planning attorney. After all, a Living Trust avoids Guardianships and Probate, and attorneys and the court are involved in each of these processes. So, obviously the planning that was done eliminated the need for any future services of the estate planning attorney. Nothing could be further from the truth. There are a number of times the services of an estate planning attorney are needed.

Are Your Interests Being Looked After? Consider Using a Trust Protector

Many people are well aware of the benefits of using trusts. Revocable trusts allow you to avoid probate and provide relatively uninterrupted management of trust assets in the event of your disability. Irrevocable trusts supply you with a means of removing assets from your taxable estate and allow you to provide for a loved one while limiting his or her access to the trust assets as you have provided under the terms of the trust agreement. However, some people are apprehensive about transferring assets to an irrevocable trust because of the finality of the transfer and thereby lack of control over the assets by the creator. What happens if the creator's intent for creating the trust is not being fulfilled? What if the tax laws change, as they quite often do, leaving the purpose for creating the trust no longer necessary? A Trust Protector may be just what the doctor ordered.

MRD for 2001 from IRAs and Qualified Retirement Plans: Act Fast!

If you own an Individual Retirement Account ("IRA") or participate in a qualified retirement plan and are required to take a Minimum Required Distribution ("MRD") this year, this is an article you cannot afford to ignore. You may already be aware that the Department of Treasury recently changed the rules concerning mandatory distributions from IRAs and qualified retirement plans.

Holdback Provisions: Preparing Your Estate Plan for All of Life's Contingencies

t is no surprise to find that parents want to provide for their children and grandchildren both during life and after a parent's death. To this end, many smart parents employ some form of estate planning, most commonly through the use of trusts. However, the manner in which the trust is structured can greatly affect whether your dispositive wishes are fulfilled. Without proper planning, circumstances such as a child's divorce or financial irresponsibility can result in unintended beneficiaries of your hard-earned assets.

Estate Planning in Light of a Remarriage: Ensuring the Care of Your Children

The staggering amount of divorces that occur in today's society is all too well known. Depending upon the circumstances that lead to the break-up of any marriage, one may think that getting into another such arrangement would be out of the question. However, this is not always the case. In fact, the Stepfamily Association of America reports that about 43% of all marriages are remarriages for at least one of the adults, and of these, about 65% involve children from a prior marriage.

Choosing a Payout Period for Your Pension Benefits: Door Number One or Door Number Two?

For many, thoughts of retirement bring to mind relaxation and financial stability. However, before retirement payments begin and these years can be enjoyed, certain decisions must be made regarding how distributions will be paid. Generally, there are two options for taking distributions from a pension plan:
1.) Take the benefit over the participant's life expectancy (single life payout), or
2.) Take the benefit over a combined life expectancy of the participant and the participant's spouse or other named beneficiary, if permitted (joint life payout).

Tax-Deferred Annuities: Who is Taxed Upon the Annuitant's Death?

Many people own tax-deferred fixed annuities these days. They provide a way to defer income taxation on the investment growth until distributions are taken. But most people who own tax-deferred annuities are unaware of how an annuity is taxed if no distributions are taken before the annuitant's death. This lack of knowledge can lead to unintended results.

Encouraging Your Descendants to Become Productive Members of Society

Many adults work their whole lives, building their wealth to provide for themselves and their families. This desire to provide often survives death, as many people desire to build an inheritance large enough to provide for their children and grandchildren once they are gone. However, the desire to have sufficient assets to leave to descendants brings with it a dilemma. How do you leave assets to your children and grandchildren without marring their sense of hard work and accomplishment? A trust with incentive provisions might be the answer.

After the Divorce: The Work's Not Over Yet

Unfortunately, it's common knowledge that divorce is on the rise in America. The statistics are astonishing, and it must be acknowledged as a possible reality for anyone contemplating or currently in a marriage. If it does occur, surviving the actual divorce process may seem difficult enough, but the hard work associated with returning your life to some semblance of normalcy doesn't end there. Divorce also affects your estate plan.

Calculating Your Required Minimum Distributions: Is Your Beneficiary Qualified?

People who own retirement assets, such as Traditional IRAs, are constantly being told to be aware of turning age 70.5. This is the magic age in retirement planning, and is the time at which mandatory annual withdrawals, called Minimum Required Distributions ("MRDs") must be determined. This first MRD must be taken no later than April 1st of the year following the year in which you reach 70.5 (also known as the Required Beginning Date ("RBD")).

Joint Tenancy: Friend or Foe?

If you're like many people who don't have an Estate Plan, you probably hold some of your assets as Joint Tenants with Rights of Survivorship. This is a form of ownership where two or more people have their names on the title of an asset, and upon one owner's death; his or her share of the asset passes to the remaining owner(s). While there are advantages to joint ownership, there are many pitfalls to keep in mind.

Don't Overlook Personal Property When Creating Your Estate Plan

Planning for all of life's contingencies is a difficult task, yet one which must be attempted. This is especially true when dealing with your death. Prudence suggests that you create an effective Estate Plan delineating your wishes as to the care of your minor children, your burial arrangements, and the disposition of your assets, to name a few. However, even people who meticulously prepare their Estate Plans often overlook their personal property, which can cause problems. Here's an example of how things can go wrong: Several years ago, a widower passed away. He thought he planned out every detail of what would happen after he was gone. He had family discussions about how his major assets were to be divided, but the widower never considered his personal property in his plan.

Common Myths about Estate Planning

A great deal of confusion remains over what constitutes a proper Estate Plan. Rumors, statements taken out of context, gossip, some bad characters that have bilked the innocent, and even turf battles over business interests have created widely held beliefs that just aren't correct. These stories have become myths. They can be harmful to you and your loved ones.

Succession Planning: A Necessary, Yet Difficult Task

Owners are proud of their family-owned businesses. To be successful, owners must plan thoroughly and work hard to carry out the plan. Successful business owners should be proud of their accomplishments. Yet planning and hard work are frequently lacking in efforts to establish a viable blueprint for leaving the business behind. Reluctance to pursue proper succession planning is common. Combining family and business concerns is difficult.If a proper estate plan is not in place, estate taxes must be paid within nine months of death. This does not give heirs a great deal of time to maneuver. Irreparable harm could result. Part or all of the business may have to be sold in order to pay estate taxes.

Life Insurance: Easing The Life Of The Terminally Ill

Nearly all of us have faced the devastating experience of having someone close becoming terminally ill. This sad and emotional experience is often exacerbated by simultaneously having to deal with paying medical and care bills. There are some options, often overlooked in such times of stress, which may assist in meeting your financial needs and easing the stress during difficult times.

Don't Get Scammed . . . Get Smart

Estate planning has been in the news lately with stories on CNN and articles in Time, Money, and Fortune. Many of these stories have focused on the use of living trusts. It's important to remember that there are several types of trusts - some are legal, many are not. It is also important to know what those illegitimate trusts are and why you want to avoid them. Not only is using one of these trusts illegal, but you could end up losing your money and paying taxes, interest, and fees in addition to any civil or criminal penalties.

But Wait, There's More: The Importance of Trust Administration

Many people probably think that once they have an estate plan in place their needs have been met. They are ready to move on, and feel secure in the knowledge that when they die their estate will be handled according to their wishes. To some extent this is true. Your wishes will be carried out and you will save your family time and money, but setting up the plan is only the beginning of the estate planning process. It is imperative that you review your plan regularly with your estate planning attorney. Buying or selling property, getting divorced, significant changes in income, and many other life-changing circumstances can impact your estate plan. In addition to regularly updating your plan while you are living, someone must be selected to manage the plan after you die. Trust administration is a vitally important and often misunderstood (or ignored) aspect of an estate plan that includes a trust. Trust administration allows for the orderly settling of the decedent's legal and financial affairs, including the disbursement of assets to the trust beneficiaries.

You Might Not Have to Bite the Bullet: What to Do about Capital Gains Taxes

So, what are capital gains anyway? Capital gains are the profits from the sale of capital assets such as stocks, bonds or real estate. Your wages or other regular income (i.e. interest, dividends) are considered "ordinary" income and subject to different tax rates.

Get More for Your Giving with Community Foundations

Americans have been increasing their charitable giving an average of 7 percent a year over the last several years, and people are now looking for better ways to contribute to charitable organizations. Many want to find ways to make charitable giving part of their estate plan or create a legacy of giving for their heirs. The Community Foundation is an effective way to integrate financial planning, estate planning and charitable giving. The Foundation offers many advantages over outright gifts of cash or securities and it has few drawbacks. This makes the Community Foundation preferable to other charitable giving options.

Year End Income Tax Planning

As 1999 draws to a close, let's hope that we can put our Y2K fears to bed in time to enjoy the momentous turn of the century. But before you relax, take one last look at your tax situation and make sure you don't miss any smart moves.

Beware the "Path of Development" - It Might Cost Your Heirs Their Heritage

"If you own a family farm or other family business there are things you need to know to protect that those assets before your death. Property in a decedent's estate is valued for estate tax purposes by the ""willing buyer-willing seller test."" In the world of commerce, property generally changes hands for a price determined by agreement between a knowledgeable seller and a knowledgeable buyer. For purposes of this article, the buyer is not limited to the seller's previous use of the property. The buyer may have a more profitable use for the property than the seller, which is called the ""highest and best use."""

Playing for Time: IRS Keeps to Quick Tempo for IRA Rollover

"Rollover" is a term familiar to many because of the increased use of qualified plans and IRAs as a form of retirement savings. The term refers to the ability to remove funds from one of these retirement savings vehicles and deposit the amount into a new IRA without the imposition of income tax.

"Special Needs Trust" Needs Special Trustee

When children face a lifetime of significant medical expense, parents often turn to a "special needs trust." The beneficiary is usually eligible for Medicaid benefits, or soon will be. The goal of a special needs trust is to provide a source of money to benefit a child without jeopardizing this eligibility.

Family Trusts: Skipping Taxes and Generations

Should your generosity be passed along to future family generations with or without a trust? Increasingly, estate planning attorneys and their clients are considering that question.

Ownership and Value: The Keys to Prudent Estate Planning

Estate planning often appears to be a highly complex science, drawing upon an intricate array of trusts, transfers, financial facts and legal fictions. Yet the best estate planning is also practiced as an art, and the key to creating an estate masterpiece is keeping a clear perspective on two basic concepts: the value of property, and who owns it.

The Best of Times: Let Prosperity Write a New Chapter in Your Estate Plan

Solid estate planning is never static. Just as its name suggests, that's especially true of a Living Trust. As your financial fortunes rise or fall, as your family adds new members or shrinks by divorce, as you acquire or change title to new assets, your estate plan must also adapt, like the vibrant creation it's meant to be.

A Trusted Way to Keep Your Home in the Family

For many Americans, a home is more than a symbol of security and place of memory. It's also the most valuable asset-and that puts it solidly at the center of serious estate planning.

Special Trust Thwarts Medicaid “Smash and Grab”

Its an increasingly common question in estate planning: what can older parents do to ensure long-term health care costs dont consume the family wealth? Medicaid, the governments health care safety net, wont cushion your fall into poverty until youve depleted most of your assets. By then, the inheritance you planned for your loved ones might look pretty paltry.

Silence Isn't Golden in Estate Plans

Remember that old snickering definition for "assume"? There are few areas where assumptions do more damage - or make lawyers look more foolish - than estate planning.

Green Light for Living Trust Tax Break

Living trusts are valued by many families as a smart way to avoid the highest tax rates in the land - "death tax" brackets ranging from 37 to 55 percent. But does that mean they must forfeit lucrative tax breaks in the bargain?

IRA Paradox: Buy Time to Save Taxes

Can you imagine turning aside part of an inheritance? IRS indecision has made that a prudent estate planning option for many who will inherit IRAs.

Bank on Trusts for Spendthrift Children

Money may not always be the root of all evil, but when it comes to inheritance many parents worry it may be the root of waste and frivolity.

The Income Tax Side of Estate Planning for IRAs

It's hard to believe a surging stock market and white-hot GDP rates could make life more complicated. But yes, when it comes to estate planning, there are pitfalls in this prosperity.

Estate Planning Mistakes -- How Can They Be Corrected After Death?

We are all familiar with the age-old expression "everyone can make a mistake." Remember, this maxim applies to estate planning attorneys as much as to any other professional. The question is whether or not the mistake can be corrected.

Using Compensation as an Estate and Medicaid Planning Tool

Compensation can ensure that one's assets will be protected from estate taxes. A recent Tax Court case, Estate of Wilson, T.C. Memo, 1998-309, illustrates how compensation paid to care providers can prove to be a valuable tool in protecting property from estate taxes, or from Medicaid reimbursement claims.

When Joint Tenancy Trumps a Will

Joint tenancy offers some short-term conveniences, but can also cause you and your family a slew of problems in the long run. Married couples, friends, parents and children all rely heavily on joint tenancy when they purchase a home, car, or other costly asset. Consumers aren't always aware of the expense and headache that joint tenancy brings about. In a recent Tennessee estate planning case, the dispute arose when joint tenancy precluded the terms of a will.

Alzheimer's Disease, Nursing Homes, and Long-Term Health Care

A recent report from the National Center for Health Statistics will raise the spirits of every American. According to the report, the chances of living to a ripe old age of more than 75 years have reached an all-time high due to advances in medical science, a more health-conscious population, and a reduction in the number of deaths resulting from accidents.

Flexibility Is Key in Life Insurance Trust Planning

Life insurance is frequently an indispensable part of a successful estate plan. Unlike other estate and financial planning tools, insurance will create an estate at the decedent's death, so long as the decedent was making the premium payments. This is particularly valuable for those in the accumulation stage of estate planning. The accumulation stage is when one is young and working and saving to have a nest egg for retirement, and eventually, to benefit children or other heirs. During this period, life insurance is recommended to ensure that ones family is protected if an unexpected death occurs. However, without proper planning, life insurance can cause estate planning problems of its own.

Estate Planning Issues for Professionals

Estate planning for professional workers generally involves planning issues unique to professional occupations. Whether the plan is for medical, insurance, legal or other licensed professionals, the estate planner needs to consider issues involving the value of the professional's practice and the retirement funds included in the professionals estate.

A Lawyer’s View of "Magic Trusts"

A disturbing trend in estate planning these days is a proliferation of "Magic Trusts." The names vary, but these trusts claim to reduce or eliminate your income taxes, deduct your personal living expenses, let you sell property without the imposition of income tax, achieve Medicaid and other asset protection and last, but not least, avoid all estate and gift taxes. No

Facing Reality: The Essence of Family Business Succession Planning

Many articles have been written about the importance and benefits of buy-sell agreements, deferred compensation agreements and life insurance in family business succession planning. While these may prove valuable in planning for the transition of a family business from one generation to another, none will come into play until the business owner is prepared to face reality.

With a Charitable Remainder Trust, Charity Begins at Home

Americans are some of the most generous givers on the face of the planet. We claimed $74.5 billion in charitable deduction in 1995, according to a recent report from the Internal Revenue Service. Tax advantages for charitable donations provide a tangible incentive to fund worthy causes. According to a recent study by the Washington, D.C.-based organization Independent Sector, donations are more likely to occur when a tax break is available to the donor. More than 80 percent of those who itemize their tax returns contribute to charities, according to a recently released Price Waterhouse study of 1995 IRS data.

No Mistake: IRS Firm on 60-day IRA Rollover Rule

A valuable benefit of an employee retirement plan is the ability to "roll over," or deposit, eligible distributions from a plan into an Individual Retirement Account without the imposition of income taxes. This benefit is conferred upon Internal Revenue Code Section 401(k) cash or deferred plans, Section 403(b) tax-sheltered annuities and other "qualified" employer-sponsored plans.

Basic Estate Planning for Unmarried Couples

The estate planning concerns of unmarried partners are very similar to the concerns of married partners. They are: (1) providing economic protection for the surviving partner; (2) providing for family members at the death of the surviving partner while paying as little as possible in estate taxes; (3) asset protection for the surviving partner, including protecting the surviving partner from creditors and lawsuits; (4) meeting the surviving partners future medical costs; and (5) protecting the property from the surviving partners inability or inexperience in managing money.

Don't Be Without a Voice in "Terminal Decisions"

Stepping into one of the most controversial issues of our time, a California hospital is considering a new policy that would allow doctors to deny aggressive treatment to patients whose cases they consider hopeless.

Term Insurance Can Protect the Family Home and Bank Account

Congratulations, youve finally made it. You just hit 50; your home is virtually paid for; youve got some savings; your pension plan has grown with the stock market; and your children are out of college. You are about as worry-free as you can be. Then it happens…

If the IRS Objects to Attorney's Probate Fees, Why Shouldn't You?

How would you react if you were advised by your estate planning attorney that your will would be probated at $660 per hour? If that rate sounds a little steep, take heart: the Internal Revenue Service had the same reaction as you.

Basics of Estate Planning for the Terminally Ill

One of lifes most tragic circumstances is discovering a parent has a terminal illness. Despite the devastating emotional impact of such news, there are estate planning strategies the familys attorney can utilize to benefit those who will survive the parent.

Be Careful What You Leave to Mom and Dad

Most children want their parents golden years to be rewarding and free from financial worries. In fact, in the event that the child dies before the parent, it is not unusual for children to leave bequests to their parents. This is particularly true of children who do not have families of their own, but married children also will often leave a bequest to a surviving parent. Executed properly, leaving a bequest to a surviving parent can be a wise estate planning strategy.

Sinatra's Way: A Living Trust To Avoid Probate And Provide Privacy

The world recently lost one of its greatest entertainers in Frank Sinatra. As is often the case with those in necessarily public positions, Sinatra was a very private person. His desire for privacy, combined with the desire for complete control of the disposition of his estate, and the understandable desire to avoid probate, led Sinatra and his estate planning attorney to choose a Living Trust as his estate plan of choice.

IRS Approves Living Trusts as Beneficiaries of IRAs and Other Retirement Plans

Recognizing the growing popularity of living trusts as the estate planning method of choice, the Internal Revenue Service has released proposed regulations approving living trusts as beneficiaries of Individual Retirement Accounts (IRAs) and qualified retirement plans (401(k), 403(b) etc.). In the past, only certain irrevocable trusts were granted status as beneficiaries and they continue to qualify.

Understanding the Fundamentals of Asset Protection

Do you ever worry about becoming the victim of a groundless lawsuit? If so, youre not alone. Lately, society has seen a plague of lawsuits by predatory plaintiffs misusing the courts by filing suits as a kind of legal extortion. As a result, these predators have sent an increasing number of people to attorneys seeking asset protection planning.

"Sandwich Generation" Needs Education in Effective Estate Planning

As rock stars, celebrities and many of the rest of us reach the age of 50, much has been made of the aging of the Baby Boomer generation, and the implications for our society as a whole. Today, the 75 million Baby Boomers born between 1946 and 1964 represent one-third of the U.S. population. As this generation continues to "mature" in the next 13 to 34 years, the nation will experience what the U.S Administration on Aging is calling an "unparalleled increase" in the ranks of seniors. Just between 1980 and 1995, the 65 and older group grew by 28 percent to a record high of 33.5 million. Today, one in eight Americans is 65 years of age or older.

America Grows Up

Today, one in eight Americans is age 65 or over,Today, one in eight Americans is age 65 or over, but by 2025, one in five of us will be 65 or over. This means longer working lives and more changes in tax burdens, benefits and financial planning, including estate planning. This means longer working lives and more changes in tax burdens, benefits and financial planning, including estate planning.

The Crippling Effects of Disability

One out of three people aged 35 or younger will be disabled for six months or more before reaching age 65. It could happen to you. Disability not only affects your health but also your wealth. It will affect your current income but may also impact your retirement and the size of your estate. A health care power of attorney and a revocable living trust can help you maintain control.

Selecting a Trustee You Can Trust

When it comes to handling money for yourself or your loved ones, you need to find someone you can trust. This article explains the duties of a trustee and outlines the differences between individual trustees and corporate trustees. Sooner or later everyone is in this difficult position of having to name a trustee.

Gifting Makes Taxes a Minor Issue

Gifting is a great way to help others and reduce the value of your taxable estate. Gifting to your minor children is especially effective if you have appreciated assets that you would like to sell. Thanks to the new tax law, many children will only pay 10 percent capital gains tax. Their parents are likely faced with a 20 percent tax rate.

Seminars Give Life to Information

Here's an article designed to give credibility to your seminars. It offers some guidelines for good public seminars and highlights the educational value of gethering information in this manner. The consumer gets a free education, an in-depth opportunity to evaluate the presenter's capabilities and typically a free consultation. This helps people see the advantages of attending a seminar-hopefully yours.

Special Children Require Special Estate Plans

Raising and caring for children is a lifetime commitment. Parents of a child with special needs (disabled, mentally retarded) have a much bigger responsibility both during their lives and after they're gone. They need to plan their estates properly to ensure their child remains well-cared for and is still eligible for government and private aid. This article addresses these important issues.

When Business and Family Meet

Small-business owners have some unique challenges when it comes to estate planning. If they want to keep the business in the family, it will take some advanced planning. This may include the use of life insurance and trusts. This article addresses the major issues and offers some possible strategies that can help business owners make key decisions when it comes to their estate plans.

Giving Life to Your Estate Plan

Life insurance can be an invaluable tool when it comes to developing an effective estate plan. There are advantages when it comes to paying estate taxes, creating an estate for young families, and making gifts to charity. But all the benefits of life insurance aren't automatically received. So this article includes a couple of mistatees to avoid when using life insurance.

New Tax Relief Adds Up for Homeowners

This article talks about the new benefits for first-time homeowners and existing homeowners. The increase in the capital gains tax exclusion from $125,000 to $500,000 for married couples will result in a tremendous savings for many homeowners. Other restrictions have also been eliminated. This is a popular topic that has not received enough press.

Making Sense of the New Tax Law

This 1,200-word article explains the broad impact of the Taxpayer Relief Act. It highlights the changes to estate taxes and capital gains taxes and provides new information on IRAs and tax breaks for homeowners.

Put Your Trust in the Law

Nonlawyers are constantly marketing estate planning and living trusts. Estate planning attorneys need to be careful about working with these nonlawyers. This article highlights the opinion of the State Bar of California and can be used to emphasize the need for the advice of a licensed estate planning before proceeding with any estate documents.

How to Make Sure Your Business Survives Without You

The family-owned business may be the fuel that drives the American economy, but few survive the death of their founder. One reason is that only a handful of entrepreneurs implement any business succession plan at all, and of those who do, many fail to implement the most successful strategy for their businesses and their loved ones. This article discusses the role that GRATs and GRUTs can play in helping ensure an effective transition of the family-owned business from one generation to the next.

How To Keep Your Retirement Fund from Being Taxed to Death

For growing ranks of Americans, their retirement fund is one of the largest assets in their estates. But even as the government encourages us to save for our leisure years, it also exacts costly taxes and penalties if we build such a formidable nest egg that our retirement fund outlives us. How taxpayers can use the CRT, a multi-generational IRA, and the revocable living trust to gain some measure of tax relief is the topic of this article.

Financing a College Education Becomes a Learning Experience

A higher education never had a higher price tag. Today a year of college tuition at a public school averages $8,562. In the year 2012, it will cost $81,000. But even as the tuition bills go ever higher, the need for a college degree becomes more crucial for success in the future. This article explains how parents and grandparents can use gifting strategies, such as the Custodial Account, to finance that costly, but priceless, higher education for a child.

New Medicaid Legislation Imposes Harsh Penalties on Abusers

Everyone knows the horror stories about the high cost of long-term care. That's why Medicaid is such a reassuring safety net for so many. The trouble is many applicants will do just abou anything to become eligible, including breaking the rules. In the past, medicaid often covered the abusers anyway. But no more. Recent legislation makes it a criminal offense to knowingly and willfully apply for coverage when the applicant knows that he or she is ineligible. This article alerts consumers to the changing climate in Medicaid enforcement.

Estate Planning and Marriage the Second Time Around

Today in 30 percent of the more than 2.3 milion marriage ceremonies performed each year, at least one of the partners has been there before. And in many of these remarriages, there are children from a previous marriage. This trend can make proper estate planning even more critical, and helps explain why the QTIP Trust is growing in popularity, as this article reveals.

Home Free with the Qualified Personal Residence Trust

Home owners can give their homes away, capture tax advantages, and continue to live in their homes for as long as they want, all thanks to the Qualified Personal Residence Trust. How this estate planning strategy works and who should consider it is discussed in this article.

Foreign Spouses and the QDOT

Today the international scope of business, education and travel brings more and more foreign nationals to American soil, where they take up residency, marry and raise families. Although foreign nationals enjoy many of the same benefits as citizens, there are distinct differences. One is the inablility to use the Unlimited Marital Deduction to reduce estate taxes. How to use a QDOT to protect the financial well-being of a resident foreign national is the focus of this article.

Estate Planning Alert: Buyer Beware

Even as the message about the importance of estate planning is turning more procrastinators into converts, the choice of who provides these critical services becomes more confusing. That's why a growing number of consumers are turning to nonlawyers to assist them with their estate planning needs. This article reviews the problems inherent in working with nonlawyers and stresses the importance of obtaining qualified legal support.

Death in the Family: Managing It Remains Women's Work

When it comes to gender roles in our society, some things have changed. But one remians the same: women still do the lion's share of caregiving in their families. And that includes assuming the responsibility for managing a loved one's final affiars. This article discusses a Penn State study that shows the impact of a dying loved one's final illnes and the aftermath on surviving female relatives, and demonstrates the need for effective estate planning to ease the burden on women.

No Justice in Burger's Estate Plan

This topical story begins with a brief mention of Chief Justice Warren Bruger and his one-page Will, and moves to a discussion of the consequences we all face if we fail to do our estate planning.

Keeping It All in the Family with the Family Limited Partnership

The Family Limited Partnership is a well-rounded estate planning strategy that helps families pass wealth from one generation to another in a highly advantageous way that gains tax breaks without sacrificing control. This article explains how.

Getting the Most out of Your Life Insurance: Irrevocable Life Insurance Trusts

How the ILIT helps consumers get greatest benefit and control out of their life insurance policy with this estate plainning versatile tool is the focus of this article.

How to Avoid the Nightmare of Living Probate

For clients who need yet more proof that the Living Trust is the estate planning tool of choice, here's an exploration of the trauma that living probatre wrecks on those who must endure it. It runs approximately 1,475 words, but can easily cut to a shorter length if necessary.

The Power of Attorney: When and How to Use It

The Power of Attorney has an important role to play in many consumers' estate plans. But there's a time and place to use it, and there are times when other options are better.

What Every Senior Should Know About Probate

Why Seniors have even better reasons than most to avoid Probate is the subject of this article.

Where There's a Will, There's Probate

This article contrasts the estate planning advantages of the Revocable Living Trust over wills.

Browse Our Estate Planning Articles

REGISTER TO VIEW ESTATE PLANNING ARTICLES

Page Tools

Free Consultation

Resources

Request a Free Report