Why You Should Get Around to Drawing Up a Will

The most common number one reason most Americans lack wills is that no one likes to think about dying. Fewer than half of American adults have a will, and the most common excuse given for not having a will is that they have not gotten around to it. Most people don’t want to think about their own death but people are more likely to have important estate planning documents as they age.

Records show that just one in five millennials (adults 18 to 36) has a will, but 81% of peole who are 70 and older have one. Having a will is important to ensure that your money and belongings are distributed according to your wishes after you die, a will determines how things you own get distributed to the people you want to receive it after your death.  

When you die without a will, your estate will be settled in accordance with state law. Details vary by state but assets are typically distributed using a hierarchy of survivors with first going to spouse, then children, siblings, and so on.

To continue more in depth on this issue, please continue to read the full article "Why You Should Get Around to Drawing Up a Will" from nytimes.com

How to Plan for the Unforeseen

Thinking about an unexpected, life changing event can be unsettling, but sadly, this can happen at any time. Unfortunately, because death or illness can happen unexpectedly, people do not plan for such events. Statistically, most younger people could go years without planning and not really worry about it. Without proper planning, consequences can be magnified, so what does it take to get people to lay out their wishes concerning their finances, health care, and possessions, plus any emotional messages to loved ones? According to advisers, it takes a lot.

Take the desire to ensure that your family is cared for if you die unexpectedly. Parents are advised to buy relatively inexpensive term life insurance to provide money to care for their children, just in case. “The best way to plan for an event you can’t control is to put your own plan in place,” said Sharon Klein, president of the New York metropolitan region for Wilmington Trust. “Otherwise, someone else is going to be putting a plan in place for you.”

To continue more in depth on this issue, please continue to read the full article "How to Plan for the Unforeseen" from nytimes.com

3 Reasons You’ll Still Need Estate Planning Even if the Death Tax Disappears

The white house and congressional Republicans released a tax reform plan involving the elimination of the federal estate tax, which the plan refers to as the death tax. Estate taxes have been in the crosshairs of many lawmakers for years because many see them as an onerous form of double taxation that takes money that has already in many cases already been subject to income tax.

“An advantage of eliminating the estate tax is that it allows some people to simplify their estate planning, avoiding the need for complicated strategies designed to reduce a potential tax bill to the IRS. Yet no one should be under any illusions that eliminating the death tax will make it unnecessary to do estate planning at all.”

There are at least three reasons why you will still need Estate Planning even if a tax reform successfully puts a stop to the federal estate tax.

1. You want your assets to go where they’re most needed
2. Some states will still have estate taxes
3. The need for federal tax planning wont go away

“Many will celebrate the elimination of the death tax if it gets through Congress and the White House. Yet even if the tax goes away, you still need to do basic things like writing a will or creating a trust to make sure your assets go where you want them to. If you neglect your estate planning, then you can end up causing financial and emotional pain to those you leave behind after your death.”

To continue more in depth on this issue, please continue to read the full article "3 Reasons You'll Still Need Estate Planning Even if the Death Tax Disappears" from fool.com

Financial-Planning.com published an article by Ed Slott entitled, "When you should establish an IRA as a trust" (May 31, 2017). Provided below is a brief summary of the article published at Financial-Planning.com: 

When you should establish an IRA as a trust

A trusteed IRA offers provisions beyond a custodial plan, but is it a good strategy for clients? The answer depends on several factors, including how much control – or not – the client wants their beneficiaries to have.

With a trusteed IRA, a financial organization adds trust terms and language to the plan. As a trusteed IRA is, in essence, a conduit trust; the trustee must pay out the annual required minimum distribution to beneficiaries.

Under the tax code, an IRA can be established as a trust or custodial account. With a trusteed IRA, a financial organization adds trust terms and language to the plan. Thus, the IRA itself becomes a trust, with the financial organization acting as the trustee.

To continue more in depth on this issue, please continue to read the full article "When you should establish an IRA as a trust" from Financial-Planning.com

Planning Your Estate When You’ve Got No Children or Heirs

Certified financial planner Mike Keeler has a client, a retired teacher, who saved diligently for her golden years and will leave behind a sizable estate when she passes away. Her estate planning challenge, though, is that she has no children.

“Sometimes there is no close family, and the person doesn’t know who to leave their estate to.” Said Keeler, CEO of Peak Financial Solutions. “They also don’t know who to name as executor of their will or who they trust to make decisions for them if they are incapacitated while still living. These can be tough decisions.”

People with no children sometimes are unsure of who to appoint as their decision maker or what would happen to their assets all together. Study shows that most people who are childless fail to put in place even the most basic part of estate planning: a will. This is a problem, when you die without a will which is called dying intestate, your state’s court system decides who gets your assets.

To continue more in depth on this issue, please continue to read the full article "Planning Your Estate When You've Got No Children or Heirs" from CNBC.com

Wickedlocal.com published an article by Leanna Hamill entitled, "PLANNING MATTERS: Why you need an Estate Plan" (Feb 7, 2017). Provided below is a brief summary of the article published at Wickedlocal.com: 

PLANNING MATTERS: Why you need an Estate Plan

In reality, estate is sort of an umbrella term to mean everything you own, whatever that may be, and estate planning is an umbrella term that really just means planning for incapacity during your lifetime and for the orderly distribution of property after your death. These things are important no matter what the size of your "estate" is.

The foundation of an estate plan generally consists of four documents:

• Medical information release form;
• Health care proxy;
• Durable power of attorney; and
• Will

Planning for incapacity is one of the most important things you can do. If you die without a will, the law says who inherits your property and who has the right to serve as your Personal Representative. It might be slightly inconvenient, but your stuff will eventually get where it's going.

The main reason to do an estate plan, regardless of the size of your estate, is so that the people who are helping you, the decisions that are being made and the way your property is handled is the way that you choose -- not the way the courts decide or the way the default law provides for. You have the ability to make these decisions for yourself now, take advantage of that now to make sure your wishes will be honored, and legally binding, later. 

To continue more in depth on this issue, please continue to read the full article "PLANNING MATTERS: Why you need an Estate Plan" from Wickedlocal.com.

Poughkeepsiejournal.com published an article by Bernard A. Krooks entitled, "Proper Estate Planning More Than Just Documents" (Feb 2, 2017). Provided below is a brief summary of the article published at Poughkeepsiejournal.com: 

Proper Estate Planning More Than Just Documents

Estate planning is not something we look forward to doing.  It forces us to think about things that are unpleasant, such as who will make decisions for me if I cannot make them myself and who do I want to inherit my property when I die. Thus, there is the tendency for some to procrastinate when it comes to estate planning. 

A critical part of estate planning is ensuring that all beneficiary designations, joint accounts, in trust for accounts and related items have been taken into account to ensure that your wishes are carried out on your death.  Moreover, if you have created a trust as part of your estate plan, you need to make sure the appropriate assets have been re-titled into the name of the trust. While these may seem like simple concepts, I cannot tell you how often we hear stories of people who neglected to do the follow-up work necessary to complete their estate plan.  To accomplish this in the most efficient way, we suggest you work with your estate planning team, including your attorney, accountant, trustee and financial and insurance advisor.

To continue more in depth on this issue, please continue to read the full article “"Proper Estate Planning More Than Just Documents" from poughkeepsiejournal.com.

6 Reasons to Revise Your Estate Plan as Soon as Possible

Creating a solid estate plan is a wonderful idea - but the process shouldn't end when your plan is in place. Periodically reviewing your plan ensures it accurately reflects your current goals and requirements. With changes such as divorce, re-marriage, birth, illness, etc. you must revise and update your plan to always be up to date

Tax laws are constantly changing and can dramatically affect your estate plan. Your estate lawyer can help ensure that your plan takes advantage of new legislation. With a change such as an injury or illness to you or a family member, you may want to consider changing your plan to reflect their increased needs.

There are a number of personal and financial reasons to review your estate plan on a regular basis. You must make sure yours is always up to date so that what you intend to happen to your assets and your family will actually happen.

To find out in depth the 6 reasons to revise your plan, please continue to read the full article “6 Reasons To Revise Your Estate Plan As Soon As Possible” from Forbes.com

Don’t Drop The Ball When Planning Your Estate

People work hard throughout their lives to provide for their families, but many make serious errors in planning - or simply fail to plan - when it comes to passing their wealth to heirs after they die.

To that point, studies show that many Americans old enough to need estate planning have done absolutely nothing about it. This lapse is, of course, the most fundamental error you can make in estate planning.

Five of the most common estate-planning mistakes that can jeopardize your potential for leaving bequests in line with your desire include not having a will, failing to update a will, failure to be realistic about your heirs, overlooking the need for a trust, and choosing the wrong executor or trustee.

Depending on what state you live in and your personal situation, failure to have a will can deliver assets to people other than those you intend. Moreover, the special needs of loved ones that you're concerned about may not be addressed. The point of a will is to document your wishes.

Failure to update your will if you do have one is also extremely common. All too often, people act as though their wills are set-it-and-forget-it documents that never need to be changed — even though their lives change. Let's say that when you make your will, you leave everything to your spouse, confident that he or she will eventually bequeath what's left of your estate to the children you've had together.

Years later you get divorced but neglect to update your will. As a result, depending on the wording in the document and the state you live in, your estate may not go to your children from your first marriage, who by this time may be grown and have children of their own (who might be deserving beneficiaries themselves).

If you remarry and have more children, the estate division gets even more complicated. As your life circumstances change, your will should, too. A good rule of thumb is to review your will every two years. Take it out of the file and read it carefully.

To read about the rest of the five most common estate-planning mistakes, please continue to read the full article “Don't Drop The Ball When Planning Your Estate” from TheTimesHerald.com

New Year’s Resolution: Plan to Plan

With the New Year, many plan their new years resolution whether it is to stay healthy and fit, loose weight, or spend more time with family.  All these focus upon you while you are alive and well, have you thought about when you are not so well? 

A properly drafted estate plan keeps you in control while you are alive and well, plans for you and your loved ones in the event of your mental disability, and after you are gone, gives what you have to whom you want, when you want, the way you want, and if you can, you want to save taxes, fees and costs, all at the lowest predictable overall cost to you and those you love.

Once you have an estate plan in place, it should be kept updated. Just like you should have an annual health check-up, you should have an annual estate plan check-up. The proper updating and funding of your trust is critical in making your estate plan work and having the results you intend. Failure to properly update your estate plan or keep your trust properly funded may cause unintended results.

For your new year's resolution, if you do not have an estate plan, resolve to do one. If you do have an estate plan, resolve to have it updated…

To find out more information on this topic, please continue to read the full article “New Year's Resolution: Plan to Plan” from TheTimesHerald.com