"The costliest errors are ones we make ourselves, often without realizing how much damage we're doing."
"Estate planning is intertwined with the financial plan," a newsmax.com article explained, and it’s no secret that many individuals fail to prepare for retirement. When doing an estate plan, the article offers some sound advice:
Once you're divorced you should immediately create a new estate plan — a will or revocable living trust, a healthcare power of attorney, and a living will ("pull the plug") designee. Read on for more estate planning must-do’s regarding divorce.
A recent article in the The Huffington Post, titled “Divorce and Money,”says that you should always listen to your attorney about the applicable laws in your state regarding divorce and your estate. In addition, the article says that you should also look at the following issues.
The division of property in a divorce is typically not taxable to either party. However, if instead of dividing marital property, one spouse agrees to monthly maintenance (alimony), this will be taxed as ordinary income. And it’s deductible to the paying spouse. The original article also notes that the spouse receiving the maintenance checks must make a quarterly estimated federal and state tax payment, so you need to plan accordingly.
The sad truth is that most of us — some 70% of adult Americans — have neglected to write a will. Some think their assets are just too puny to worry about, others worry that the costs of writing a “last will and testament” are too high. But wills aren’t just vehicles for the wealthy or the morbid. If you’ve got a family and a home — not to mention a savings account — you should definitely have one. Cost is no excuse.
A recent MarketWatch article, titled “Why wills aren’t just for the wealthy,” sheds light on this important life-planning topic.
Like many people in the U.S., you may not think about estate planning until you have kids. A will is critical when you have children, because people think about what would happen if both spouses die at the same time. Without a will, a probate court judge will be tasked with selecting the individual who will care for your minor children as a guardian. That could be just about anyone, including a person you would never ever pick to take care of your kids! Why not name someone yourself right now? You also should name an alternate guardian in the document in the event your first choice is unable to serve.
In the book The Charles Schwab Guide to Finances After 50, author Carrie Schwab-Pomerantz poses the following scenario: “I’m confused about how to divide my estate between my children, who have different needs and financial resources. Is it best to divide it into equal parts?”
This question is directed at people who have children at different levels of personal and financial success, according to a recent Millionaire Corner’s article titled “Dividing the Estate: Treat Your Children Well.”It suggests that the parent in this scenario may want to do more for the struggling child than for the successful one as far as designating heirs for their estate assets.
The original explains that it makes sense for parents to treat their children equally. While one may think about providing extra assistance to a child with fewer resources, or for a child with special needs, you need to do so cautiously. The article also reminds us that the status of the children can change over time, making a strong argument for equal distribution.
Although it is a difficult subject to face, you have options when it comes to protecting your estate and your family. The steps you take now can help prevent the wrong people from making decisions for your loved ones.
If you have minor children, who will take care of them in the event of your passing? Although no one likes to think about this, it is crucial that you make a plan for your Houston family.
A recent article from Military.com, titled “Protect Your Children's Future,”offers some ideas on how to protect your children. For starters, make sure to you have a will drafted by an experienced estate planning attorney. Be sure to name one or more people to be the legal guardian of any of your children you may have under age 18. [Note: In some states, like California, a will is not the only way to appoint such a guardian. Be sure to consult with an experienced estate planning attorney in your own state.]
The viewers of this high-end PBS costume drama, which takes place about a century ago, could very likely be your clients' demographic. Look at who's a top corporate sponsor: Viking River Cruises, which told The New York Times that “our demographic is affluent Baby Boomers 55+.” It's a big group: more than 10.1 million viewers watched the first episode of the fifth season in early January. Look closely and see if Downton can impart valuable financial lessons to you.
It can be difficult to explain to clients the ramifications of putting off their estate planning. Sometimes people have to “see it to believe it,” so to speak. Enter PBS hit series, Downton Abbey.
Downton Abbey follows the lives of the fictitious Crawley family who live in a grand English country house in the early 1900s. Downton’s characters can teach some valuable financial lessons, according to AccountingWEB’s recent post titled, “8 Lessons You and Your Clients Learn by Watching Downton Abbey.
Although many people feel frustrated by elder guardianship systems designed to protect adults no longer able to fend for themselves, what’s even sadder are the many instances where it turns out that the elder guardianship system is doing its job properly –and strangers have no choice except to step in and make decisions that families and friends simply cannot.
Elder guardianship can be complicated. Many question if our elderly loved ones are getting the proper care they deserve in those situations.
The (Sarasota, FL) Herald-Tribune, in a recent article titled “The takeaway lesson on elder guardianship,”says that one woman contacted the newspaper writer from an assisted-living facility, saying she had been incarcerated against her will. She moved to be closer to her son, but her daughter in Arizona had her under guardianship, which permitted limited contact with her son.
Accounting for the possibility of your own and your loved one’s eventual mental incapacity is a key part of any estate plan. If your loved one appears to be showing signs of diminishing mental acuity, ask if he or she has the proper documents in place. If so, find out who his or her agent(s) are so that you can alert them.
What if you or a loved one develops dementia? If you didn’t have the mental capacity to take care of yourself or your finances at some point, what would happen? You need to be prepared.
A recent articlein Physician’s Monthly Digest, titled “Dealing With a Loved One’s Cognitive Decline Is Simpler with Right Legal Documents in Place,”says that a healthcare proxy and a durable power of attorney are key legal documents to have before there are any signs of mental incapacitation. The documents allow you to designate another person to make medical and financial decisions on your behalf once you are unable to do so. This can be your spouse, an adult child, a friend, or a trusted adviser. Without a power of attorney, your spouse will need a court order to access any non-joint accounts that you have.
Ernie Banks died on January 23rd at age 83 from a heart condition. Interestingly, his death certificate listed dementia as a “significant condition contributing” to his death. Why is that important? Well, three months before he died, Banks signed a new set of estate planning documents, including a power of attorney, healthcare directive, new will, and a trust.
Ernie Banks signed a new set of estate planning documents that left his caregiver and talent agent, Regina Rice, in control of everything. This new will and trust totally left out his family members and named Rice as his sole beneficiary. Rice would stand to inherit not only whatever assets and wealth Ernie Banks accumulated during his life, but the right to control (and profit from) his name, likeness, and image.
Since Banks had dementia and made these changes a mere three months before his death, his children are planning to take Rice to court over Banks’ estate. Houston families should make note of family dynamics that could place estate planning in jeopardy.
Dr. Richard Grossman amassed his fortune as the founder of the Grossman Burn Center in Los Angeles, one of the first to use a hyperbaric chamber to prevent infections in burn victims and speed their recovery. He retired from his medical practice in 2013. Lawyers for his children and widow now disagree on what Grossman intended to do with that wealth before he died.
If you aren’t crystal clear on your wishes in your Houston estate planning documents, you may leave behind much speculation after you pass.
A recent article in the Thousand Oaks (CA) Acorn, titled “Battle over Grossman estate intensifies,” describes the contentious fight over a noted physician’s estate between his wife and his children from a previous marriage. With all of the assets going to the wife, the children assert that the doctor had advanced dementia and wasn’t able to make his own decisions.
Houston Estate Planning and Elder Law Attorney Blog