Next Major Book Signing - 25% Discount

Pay only $20 per book!

This is my gift to you!

The next major area booksigning will be:

Thursday, December 10, 2009

7pm to 8:30pm

The David Library

1201 River Road

Washington Crossing, Pennsylvania

RSVP at (215) 321-4033

or email christine@taylorhachoose.com

Space is limited.

Many families have asked me what is the best way to get their loved ones to address estate planning. My answer to that question was to write the book, Stop! What are you waiting for? Your Step-by-Step Guide to Estate Planning. I have found that the book is a good way to get the conversation regarding wills and other estate planning issues moving in the right direction.

Now is the time to buy the book.

At this book signing, you save 25% on the cost of the book.

Pay only $20 per book!

As part of the holiday gift giving season,

this book makes a great gift!!

Reserve your space today. Call (215) 321-4033

or

email christine@taylorhachoose.com

7. Discern Elder Needs

We have discussed over the last 2 weeks the 7 essential benefits of estate planning and today we address the seventh essential benefit, discern elder needs.

In 2006, the oldest of the baby boomers, the generation born between 1946 and 1964, turned 60 years old. As a result, new concerns have given rise to the specialized area of “elder law.” This term was not even mentioned when I attended law school in the early 1980’s. However, with the anticipated increase in the elderly population, the advances in technology, and the increase in life expectancy, the dynamics of our society are changing and the elder law area of practice is growing rapidly.

Elder law looks at the needs of seniors during their longer lifetime. Estate planning, as well as retirement and long-term care planning, forms a natural part of the elder law practice. Seniors are finding themselves working longer to address the cost of healthcare for elders under their care. The fact that we are living longer requires all of us to take a real careful look at long term care questions and put plans in place, like purchasing long term care insurance and getting your will, general power of attorney, healthcare power of attorney and living will done.

Want to know more about the 7 essential benefits of estate planning? Check out my new book Stop! What Are You Waiting For? Your Step-by-Step Guide to Estate Planning.

6. Ensures Peace of Mind

Today we discuss the 6th of the seven essential benefits of estate planning. Remember the first 5 benefits of estate planning are; (1) protects assets (2) saves money (3) creates a legacy (4) distributes wealth and (5) addresses special circumstances. The 6th is Ensures Peace of Mind.

With the recent loss of his wife, Jack is now rearing three young children on his own. As an only child, he can not rely on any help from his mother Mary or his father Charles. Mary is still working beyond her retirement years just to be able to take care of herself and her husband. Charles has been diagnosed with a mentally debilitating form of Alzheimer’s, which the doctors do advise could be hereditary.

As the sole person responsible for his children, Jack wants to have peace of mind when it comes to their future. Therefore, he has made several inquiries into estate planning to get that peace of mind. He wants to make sure his children are taken care of when he dies. If he does not take the necessary steps to address guardianship of his children upon his death, then he leaves them in unnecessary turmoil and additional pain.

Choosing a guardian for minor children is a major decision. It is a decision that takes careful consideration. Without planning, Jack burdens Mary with making decisions he failed to address in advance. Even more tragic, imagine leaving questions of guardianship to the state or court with no firsthand knowledge of Jack’s children's gifts, talents, needs, and desires. Only Jack can choose the best guardian for his children.

Families unfortunately can fall apart over unaddressed estate planning. Estate planning gives you peace of mind now and will be appreciated by those you leave behind. Leave your comments here or contact us at http://www.ythlaw.com/

5. Addresses special circumstances - continues with Special Needs Trust

In my last post, I discussed 26 year old Julian who sustained permanent mental and physical disabilities as a result of complications at birth. How does one continue to take care of Julian when his parents are no longer living.

A special needs trust, sometimes referred to as a supplemental needs trust, is critical to protecting Julian’s health and well-being. The purpose of the special needs trust is to assure continuity of care and non-disruption of government supported programs and benefits, both of which are of primary concern for Linwood and Jordan, Julian's parents.

As pertains to preservation of government benefits, if Julian directly owned the assets, he would not qualify for Supplemental Security Income Benefits referred to as SSI. In addition to providing him with a monthly stipend, SSI eligibility qualifies Julian for other governmental programs. Because Julian has no control over (does not own) the money or assets in a special needs trust, the contents of the trust are not considered when calculating Julian's total assets. The special needs trust thus ensures that Julian will remain eligible for governmental benefits and programs regardless of the actual value of his total assets.

Do you have any questions on Special Needs Trusts? Leave your comments here or contact us at www.ythlaw.com

5. Addresses Special Circumstances - continues

Yesterday, we discussed Linwood's and Jordan's special circumstances. Today, we focus on Linwood's and Jordan's son, Julian.

As a result of complications during his birth, Julian sustained permanent mental and physical limitations. Though Julian has been blind (one particular result) since birth, there is much that he can see. Through his imagination and the support of Mainstream For Life, a state funded program, Julian has created a world that works perfectly for him. At 26, he still maintains a childlike wonderment and trust for everyone he encounters in his life. Fortunately, his home and work environment support the person that Julian has become.

Linwood and Jordan (Julian’s adoptive parents) realize that they both have contributed to the stable and productive life that Julian enjoys. They also realize the importance of the routine, familiarity, and normalcy provided by the state funded programs. They often worry about not being around to keep Julian safe. However, they also realize that they will not always be there to watch over him. Their focus has turned to how to sustain what has been developed for Julian when they both die.

A part of that answer is the special needs trust which will be discussed tomorrow. Leave your comments here or contact us at http://www.ythlaw.com/

5. Addresses Special Circumstances - continues

This blog post continues from October 24 when we started to look at the 5th benefit of estate planning, addresses special circumstances.

Remember the other 4 of the 7 essential benefits of estate planning are;

(1) protects assets

(2) saves money

(3) creates a legacy

(4) distributes wealth.

Today we continue to discuss how estate planning addresses special circumstances. In the case of Linwood and Jordan who are same sex partners, they have to address their property interests through advance planning. If either Linwood or Jordan died without a will, no property would go to the other unless there was joint ownership, a trust or beneficiary designation with the partner's name. There would have to be planning to minimize the inheritance tax since the 0 rate would not apply to unmarried individuals.

What about their son, Julian? We will discuss his special circumstances tomorrow. Leave your comments here or contact us at http://www.ythlaw.com/

Crystal Ball - What's the best investment of them All

On Monday evening, I attended an annual investment briefing from one of our national banks. I always find it interesting to listen to the economic forecast from economist and investment strategist; those whose job it is to study the market. Given the bleak conditions we have experienced over the last year or so, the bank's forecast (unlike others I have reported on) predicted brighter news on the horizon as demonstrated by the rise in the S&P 500. Though the increases have not been monumental, at least it is an upward movement.

The question still remains how does all of this affect you, the consumer. Some have remained in the market because, well, what else could one do but wait it out and hope for the best. Now there is even a suggestion to be bolder in the market by engaging in alternative investments. This would be in addition to a traditional market portfolio of stocks and bonds. It would encompass private equity, private real estate, natural resources and hedge funds. For me, in such uncertain times, the low risk/some return works better than high risk/high return, maybe. How can a person (the consumer or investment advisor) carefully select any investment these days? Oops, my crystal ball has a crack....can you spare yours???

Leave your comment or contact us at http://www.ythlaw.com/

Mistakes to Avoid in Estate Planning

We continue today to recognize National Estate Planning Awareness Week which was last week. When I wrote Stop! What are you waiting for? Your Step-by-Step Guide to Estate Planning, I wanted to make more people aware of what the estate planning process entailed so that more people would be encourage to plan, now.

Here are some common mistakes that we all can avoid with a little awareness:

•Lack of signatures. A will must be properly signed and witnessed, with witnesses in the same room. If not, the will can be contested.
•The will can't be found. A will needs to be stored in an accessible place. Some put them into a safe-deposit box. Another suggestion is to keep it at home in a fireproof box with other important papers. You must make sure that the executor can obtain access to the document when needed.
•Multiple copies. You may want to provide your executor with a copy of your will. But if you change it, you should be sure to destroy any original copies.
•Lack of specifics. Some people simply state they wish to leave their entire estate to their children. If there are adopted or stepchildren, it becomes more important to name or define children.
•Choosing the wrong executor. Relatives and friends are not necessarily the best trustees or executors. The right executor is someone who can be trusted, who can work well with others, who is intelligent and who is not afraid to ask for — or hire — help.

Leave your comments here or contact us at http://www.ythlaw.com/

Myths About Estate Planning

Last week, I discussed 5 or the 7 essential benefits of estate planning. I will talk about the additional 2 benefits this week. All of this information is so important and timely because last week was National Estate Planning Awareness Week, an educational program sponsored by the National Association of Estate Planners & Councils.

I have taken polls and generally have found that nearly 65% to 70% of people do not have a will. There reasons range from procrastination to unawareness of its application to them. Still others fear that as soon as they write a will, they'll die. In reality, there's no evidence to suggest that creating an estate plan will hasten your death. However, if you do nothing, you could create a lot of unnecessary chaos upon your death.

My book Stop! What are you waiting for? Your Step-by-Step Guide to Estate Planning adddresses how and why estate planning applies to everyone. There is an article in today's Managing Your Money that dissects five myths about estate planning and offers tips on how to make things easier for your loved ones after you're gone. Enjoy!!

5. Addresses Special Circumstances

We have been exploring the 7 essential benefits of estate planning; (1) protects assets (2) saves money (3) creates a legacy (4) distributes wealth. Today we discuss number (5) how estate planning addresses special circumstances. Let's take a look at Linwood's and Jordan's situation.

Linwood and Jordan are the same sex and have lived together for twenty-five years. They do not live in a state that recognizes gay marriages. They adopted their special needs son Julian, who was 10 years old at the time of the adoption. Julian has thrived and progressed significantly over the last sixteen years with the love, attention, and hard work of his parents. Linwood's skills as a nurse have been most helpful to Julian. Julian’s Seeing Eye dogs have helped, and his current dog is an integral part of his life. All of this has enabled Julian to live on his own with the support of state programs.

What issues will Linwood, Jordan and Julian face and how can those issues be addressed through estate planning? We will begin to look at the answer to these questions and any that you may leave here or when you contact us at http://www.ythlaw.com/

4. Distributes Wealth - a final comment

Ria and her estate saga continues today. As a singel woman without children, it is even more essentail for Ria to plan. We discussed yesterday that if Ria died without a will, her ailing parents would inherit her entire estate and all of Ria's assets might then end up being paid to a nursing home.

Today, let's assume Ria's parents are no longer in the picture. They predecease her. Then without a will, Ria's estate would go to her siblings including her estranged brothers. Is that what Ria wants? I don't think so.

Though Ria’s brothers are her heirs, she can decide, with estate planning, who inherits and who does not inherit her wealth. It is her choice, her decision, her plan. But she must take some action and plan!!

There is something to be said about creating a plan that gives you control of the distribution of assets accumulated through your ingenuity and labor. It is within Ria and everyone’s power to take control and plan now.

Leave your comments here or contact us at http://www.ythlaw.com/

4. Distributes Wealth - Continues

Yesterday, we introduced Ria and asked whether the State should control the distribution of her assets. The fact is if Ria does not take any action (plan now), the state will control the distribution of her assets.

Remember, Ria is not married and has no children. Her parents are not in good health and she has 2 estranged brothers. If Ria dies without a will in Pennsylvania, her parents would inherit her entire estate. However, with her parent’s failing health, this would not be a wise option for Ria.

She would probably want to leave some assets for their care but upon their death, control where those specific assets would go. Ria would not want a nursing home to be her beneficiary but that would happen if she does not plan.

Tomorrow, we will look further at Ria's estate and the potential perils. Leave your comment here or contact us at http://www.ythlaw.com/

4. Distributes Wealth

Over the last few days, we have discussed 3 benefits of estate planning; (1) protects assets; (2) saves money; and, (3) creates a legacy. The fourth benefit of estate planning is distributes wealth. The following is from my book Stop! What Are You Waiting For? Your Step-by-Step Guide to Estate Planning.

"Ria enjoys the international travel required of her successful technology consulting business. During her extensive traveling and demanding business, her closest and dearest sibling Michelle has taken on the full responsibility of the care of their parents, whose health has been rapidly failing. Her two older brothers have remained distant from the family and provide no support or interest in the care of their parents. Though Ria never married, she is considering adopting children.

In recent times, Ria has thought about her estate and how it;might be distributed when she dies. She is especially concerned about the ramification of any adoption."

Should the state control the distribution of Ria’s assets? What would happen to all her wealth if she has no husband and no children.

Let's learn more about Ria tomorrow. Leave your comments here or contact us at http://www.ythlaw.com/

3. Creates A Legacy - Continued

Yesterday, I stated that creating a legacy is the most important benefit of estate planning. The reason I made that statement is because all of us have a legacy. Let the estate planning process help you find yours if for some reason you do not know your legacy.

In an earlier blog, I introduced Max from my book Stop! What Are You Waiting For? Your Step-by-Step Guide to Estate Planning. Max collected historical memorabilia on the American Revolution. How can he preserve this passion for the historical significance of a major event in American history? Through estate planning, he can build upon this legacy. Future generations could benefit from the knowledge these documents provide. Max can even make sure the next generation is guided by his wisdom by giving specific instructions on the use of assets. He does not want to lose the momentum of his collection through ineffective management by his spouse or children if their interests should differ from his. Professional advice and guidance now can make the difference between creating a legacy and losing an accumulated treasure of the past.

Max’s legacy can be addressed in many ways. If he wants to leave assets to his spouse or children but their interests or passions differ from his, then he can leave the collection in a trust. He can fund the trust and choose a trustee who will be responsible for preserving the assets he accumulated in a way that he may designate. If his interest is charitable, he can give in a number of ways to those who will cherish his generosity, including institutions of higher education, museums, or organizations of scholarly pursuit. Estate planning can even enable Max to create a legacy of philanthropy that can include the involvement of his spouse, children and grandchildren.

Leave your comments here or contact us at http://www.buckscountyattorney.blogspot.com/

3. Creates A Legacy

Today, we continue our discussion regarding the benefits of estate planning. The first two,
1. Protects Assets and 2. Saves Money, have already been discussed over the last few days. This third benefit, Creates A Legacy, is, in my opinion, the most important because we all have a legacy to leave. The problem is that most of us fail to document that legacy or even more problematic fail to see the legacy worth of our life.

There has not been a single client that I have counseled who did not have a legacy worth documenting in some way. Remember, estate planning is a process as well as the tangible development and execution of legal documents. And it is that process that gives my practice its competitive edge. I may guide someone into starting a business, a foundation or a charitable organization because of what I learn about them during the estate planning process. I may suggest writing a book, journaling, speaking or putting on a photo/art/sculpture exhibit. Whether it is a financial gain to me or an Aha moment for my client, in my practice the estate planning process is always mutually beneficial.

Tomorrow, let's revisit Max and Margaret to look at their legacy and how estate planning will help. Leave your comments here or contact us http://www.ythlaw.com/

2. Saves Money - final comment

A final comment regarding Max and Margaret. Not only can they save on Federal Estate Tax but they can save on the state inheritance tax in states with an inheritance tax like Pennsylvania.

Who will get Margaret’s extensive art collection? If she leaves it to a charitable organization or qualified non-profit, there would be no inheritance taxes. However, her sons may also have an interest in art. In order to avoid the taxes on personal property, Margaret could begin gifting during her lifetime some of her art collection to her sons. There would be no taxes if she is under her one million dollar lifetime exclusion amount for gifting.

All of this requires planning on the part of Max and Margaret. In the long term as well as the short term, the value of a little planning today goes a long way to your family's future savings and security.

Contact us at www.ythlaw.com or leave your comments here.

2. Saves Money - continued

Yesterday, we were discussing how Max and Margaret could save on their Federal Estate Tax through effective estate planning.

Since we do not know who might die first, both Max and Margaret would need to have a specific trust set up to shelter or preserve the applicable tax credit of the lifetime exclusion. The lifetime exclusion is the amount of Max's or Margaret's estate that is not subject to federal estate tax. In 2009, that amount is 3.5 million dollars.

The tax savings of this amount passes to the three sons of Max and Margaret upon the death of the second spouse, ie assume Margaret in this scenario. The tax credit of Margaret will also pass tax free to the sons. As a result, 7 million dollars would effectively be saved from taxes through the single, simple act of estate planning.

Contact us with your questions at www.ythlaw.com or leave your comments here.

2. Saves Money - Continued

We continue today to discuss saving money through effective estate planning. We met Max and Margaret yesterday whose estate is worth well in excess of 5 million dollars. How can estate planning help them?

Well, Max and Margaret can reduce or eliminate their federal estate tax. Throughout your lifetime you, like Max and Margaret, have accumulated wealth in one form or another. Under the current federal estate tax law, individuals have an available tax credit against the ultimate estate tax due.

This tax credit is a direct dollar-for-dollar reduction of Max's or Margaret's tax liability, compared with tax deduction, which reduces Max's or Margaret's tax liability only in proportion to his or her tax bracket. Therefore, for Max and Margaret, each has a tax credit against the ultimate estate tax.

However, the estate tax is not due, for Max or Margaret, until the last one dies. This is because property left to a spouse is tax free. If Max is the first to die, he would transfer his estate to the Margaret free of an estate tax. It is not until the death of Margaret that the entire estate is subject to estate tax.

At that time, the tax credit of Margaret would be available to offset the amount of estate tax due. With advance planning, the tax credit available to the Max can be preserved and would then be available at the death of Margaret to further reduce the estate tax due.

We will continue to explain this significant benefit tomorrow. Stay tuned. Contact us at http://www.ythlaw.com/ with your questions or leave your comments here.

2. Saves Money

The Second essential benefit of estate planning is saving money. Today we meet Max and Margaret whose estate is in excess of 5 million dollars. They both have high-level corporate careers at companies where they now hold highly appreciated stock options. Both of them have personal passions. For over 30 years, Max has collected historical manuscripts and other memorabilia on the American Revolution. Margaret formed a local foundation that supports women and girls in her local community. She also has a fine art collection that rivals the collection of her local museum. Max's and Margaret's three sons (two of which are sons from Max’s first marriage) are married with children and have their own successful businesses.

The federal estate tax consequences would be significant (almost ½ of their estate would be at risk) if Max and Margaret did not engage in any estate planning. Further, if they reside in a state with inheritance tax, like Pennsylvania, planning could avoid costly mistakes. Clearly, they do not want money they have accumulated over their lifetime to be depleted by taxes and other circumstances that, with advance planning, they can control.

Let's continue to follow Max and Margaret on the road to saving money. Contact us at http://www.ythlaw.com/

President Obama Wins Nobel Peace Prize

Let the WORLD take a pause to celebrate this momentous occassion. As Americans, we take great pride in the 2009 Noble Peace Prize being awarded to a sitting United States President. President Obama was noted for "his extraordinary efforts to strengthen international diplomacy and cooperation between peoples" and further it was stated that "only very rarely has a person to the same extent as Obama captured the world's attention and given its people hope for a better future".

On a personal note, President Obama's legacy will be something that not only his children and family can benefit but those that lived during his lifetime can also benefit.

Click on the article below for more information.
http://www.comcast.net/slideshow/news-general/news-general-20091009-EU.Nobel.Peace/

1. Protect Your Assets

Inside:

Stop! What Are You Waiting For?

Your Step-by-Step Guide to Estate Planning,

we visit Eve and Bob. Both Eve and Bob inherited wealth and made a lot more money beyond their inheritance. They now breed show dogs and actively participate in charities benefiting animals. They only have one daughter, Julia, who at thirty-six still can not quite make it on her own. She has already experienced personal bankruptcy and, given her unemployment history, would be on welfare if not for her parents’ continued support.

Eve and Bob want to make sure Julia will not become destitute when they die. Therefore, instead of leaving money outright to her upon their death, their estate plan includes a trust for the money left for Julia, who is not fiscally responsible enough to manage the money herself. A trust is effective because Eve and Bob appointed a trustee to both manage and distribute the money for Julia’s benefit.

The cash left for Julia by her parents will not be subject to the claims of Julia’s creditors. Nor will the cash be subject to any further bankruptcy, lawsuits, or divorce settlement Julia may experience in the future. It is Eve’s and Bob’s legacy that is being protected. They have the right to determine who will be the recipient of their bounty.

For Eve and Bob, money represents their primary asset. How do you define your assets? Do you consider your children, your home, or the money you have accumulated over your lifetime, as Eve and Bob did, your assets? Do you consider yourself an asset? However you define assets, it is important to know that we all have assets, and they are worth protecting.

Tomorrow, we will continue to follow the legacy of Eve and Bob and the journey of their daughter Julia. Leave your comments here or contact us at http://www.ythlaw.com/

Benefits of Estate Planning

In my new book,

Stop! What Are You Waiting For?

Your Step-by-Step Guide to Estate Planning

the 7 benefits of estate planning are discussed. Over the next few days, I will address those 7 benefits by introducing you to individuals in hypothetical situation that may resonant with you. Sometimes we can see the importance of something through the experiences of others.

Through these examples, I want to encourage, motivate, and inspire you to prepare for your future and the security of your family for generations to come. The seven essential benefits of estate planning are protecting assets, saving money, creating a legacy, distributing wealth, addressing special circumstances, insuring peace of mind and discerning needs as you age.

Using the knowledge you acquire over the next few days or by purchasing my new book will advance you on your journey to generational prosperity.

Tomorrow meet Eve and Bob as we discuss protecting assets. Contact us at http://www.ythlaw.com/

Stop! What Are You Waiting For? Local Book Tour

It is an exciting time promoting a book that will help so many to protect their family and their legacy. The book is for those who are unfamiliar with the estate planning process and it gives

a fresh approach to those already familiar with estate and financial planning. Either way the book is for you. You can order the book here or on Amazon.com Be one of the first to give the book a review at Amazon.com.

You are invited to the major launch of the book on October 15, 2009

at the David Library 1201 River Road

in Washington Crossing, Pennsylvania.

RSVP today at http://www.ythlaw.com/

Social Security and Your Future

I am always reading about the future of Social Security. Recently, I read that in 2016 we will begin paying more in benefits than we collect in taxes, only 7 more years. Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.

Saving is even more important and in this economy even harder. But, it is essential that we save which for most of us means to stop spending. The money to save has to come from somewhere and if our economic situation does not change, then not spending is our savings program.

Give your comments and thoughts here or contact us at www.ythlaw.com

Estate planning book offers tips to wealth preservation

My new book

"Stop! What are you waiting for?"

is making headlines.

Click on this news release.
Estate planning book offers tips to wealth preservation

Shared via AddThis

Money, Money, Money

As I was doing my bills the other day, my mind could not help but go to the current state of the economy. You have listened to the gloom and doom news comparing our current state of affairs with the Great Depression. Well, what did we, or our parents/grandparents, learn from that period. They learn to save prudently and cautiously. I can not tell you how many of my clients have benefitted from that saving mentality. Over the generations, the family members of my clients have passed on the wealth in hope of making my clients' life better and it worked! Now we have our greatest challenge. How will future generations benefit from our response to this economic crisis? What should we be doing, now? Among the many things we have to do is work together as a unified society. Individually, we have to take responsibility for ourselves and those dependent upon us. We have to plan for our future generation by taking such actions as making a will to pass on our assets and our legacy. We have to set up trusts to hold and distribute our assets, whatever they may be, in a responsible manner. We have to do these things even when we think we have nothing, especially if we think we have nothing. We never know exactly what the future may bring. However, we can and should plan for the future that we hope for, for ourselves and for our children.

Leave your comments here or contact me at www.ythlaw.com

Costly Estate Planning Mistakes

I often attend continuing legal education seminar. Actually, I enjoy them because it keeps me current. I like to learn what others are doing for their clients in the area of estate planning. This evening's event addressed the top estate planning mistakes. Here is the run down of the list so you can see whether you need to see an estate planning attorney, like me, soon:
A. Is your estate in excess of 3.5 million dollars....then you should have federal estate tax planning done, immediately and correctly.
B. Is your estate under 3.5 million dollars and you still have federal estate tax planning done, revisit your plan immediately. You do not want terms and conditions that are no longer relevant to your situation. It will only complicate matters for your estate.
C. How many trusts do you have? Make sure you fund the correct trust. Terminate any trusts that you no longer require.
D. Make sure you review joint ownerships and beneficiary designations to make sure they are consistent with your intent for distribution of your estate.
E. Who will be responsible for the inheritance tax that must be paid? Make sure you cover your preference in your documents.
F. Oh, by the way, do not write on your will after you have executed it. Put it away and keep it clean. AND, do not lose the original....that will be a big problem. So, do you know where your original will is??

These are things to think about that I thought would be helpful to my bloggers. Let me know what you think. Contact us at www.ythlaw.com

Pet Trusts - What Next?

My new book was released September 14th and several papers have made some inquiries regarding the book. The first one that I received asked for information on what is the trend as

relates to Pet Trusts. Yes, that is covered in my book among many other people related trusts.

In any event, according to a 2000 estimate, Americans own about 68 million dogs and 73 million cats. The desire to protect dogs and other animals seems to be of critical importance to many. With an increasing elderly population and more and more people living alone, many people may not have a family member or friends able to care for their dogs.

In states without Pet Trusts, the most predictable and reliable method to provide for a pet is for you to create a trust in favor of a human beneficiary and then name a trustee to make distributions to the beneficiary to cover the pet’s expenses provided the beneficiary is taking proper care of the pet. This technique avoids the two traditional problems with gifts to benefit pets. There is an actual human beneficiary with standing to enforce the trust and there is a human measuring life for the rule against perpetuities (don’t worry, even many lawyers don’t understand that ancient rule). This conditional gift in trust approach provides for more flexibility and a greater likelihood of your intent being carried out.

If your state has a Pet Trust statute and Pennsylvania does, then your dogs can be the beneficiary with the Trustee making distribution for the benefit of the dogs. Your estate planning attorney can help make sure your Pet Trust meets the requirements of the statute.

Have your questions answered with your comments or submit an inquiry through http://www.ythlaw.com/

JUST RELEASED Stop! What are you waiting for?

My Book:

Stop! What are you waiting for?

Your step-by-step guide

to estate planning

has just been released

by

Second Wind Press.

I was motivated to write this book to help sustain families, build communities, create legacies one estate plan at a time. Most people hear estate planning and assume it’s not for them because they don’t have an estate. But regardless of income, we all have estates. It includes everything we own – from homes to cars to jewelry and everything we love – from children to our spouse to charitable endeavors.

The following list are upcoming

“Ask the Expert”

Book Signing Events.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Marcus Garvey Book Store, Philadelphia, PA

Friday, October 2, 2009

7 – 9pm

Newtown Bookshop, Newtown, PA

Saturday, October 3, 2009

2 – 4pm

David Library, Washington Crossing, PA

Thursday, October 15, 2009

7 – 9pm

Farley’s Bookshop, New Hope, PA

Saturday, October 17, 2009

2 – 4pm

Robin’s Book Store, Philadelphia, PA

Thursday, October 22, 2009

7 – 9pm

Yardley United Methodist Church, Yardley, PA

Saturday, October 24, 2009

10- 12pm

Doylestown Bookshop, Doylestown, PA

Saturday, January 16, 2010

2 – 4pm

Hope to see you at an event. Leave your comments here or contact us at

http://www.ythlaw.com/

What's Your Investment Strategy?

I wrote yesterday about an upcoming seminar I was attending. The speaker's topic was about rethinking your investment strategy.

I wish I could say he was optimistic about the direction of our current economic state. However, I suppose the truth of the matter is that these are turbulent times and a magic wand is not going to get us out of it. Our situation was years in the making and obviously it will take years to turn it around. In the meantime, we must continue to be vigilent in our savings and elimination of debt. We can not start over spending with the continued rise of unemployment.

As far of our investment strategy, I would suggest that it be a conservative one. The speaker did suggest that during these times buying gold has some advantages as part of your portfolio. However, the cost of gold is now in excess of $1,000 an ounce. This could be a prohibitive undertaken and though it may rise higher, it also may not.

Share your comments here or contact us at http://www.ythlaw.com/

Your Investment Strategy

I am attending a session this evening on rethinking your investment strategy. In these unsure economic times, it becomes more challenging to know what might work best with your investment, for those that might still have investments.

In my practice, I have met those whose entire savings and investments have been depleted. I have met those affected by the vast Ponzi scheme constructed by Bernard Madoff. This was undisputedly the first worldwide Ponzi scheme — a fraud that lasted longer, reached wider and cut deeper than any similar scheme in history.

What a financial or investment advisor might share at this time is intriguing to me and I look forward to sharing with you my "take aways" from the discussion. Stay tune tomorrow for my report.

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Long Term Care Planning and You

Last week I attended a meeting where our speaker addressed long term care planning. Even as estate planning professionals, we had lots of questions for our speaker and all of them were answered. I thought I would share the hightlights with you.

Long term care planning is the creation of awareness and understanding and aceptance that it is possible for one to have special daily care needs at some point in our lives. Without long term care planning, you are exposed to the largest potential unfunded liability. Of course most of our questions pertained to long term care insurance. Generally, people are advised to get at least 3-5 years of coverage. Such coverage should be obtained early on to get the best rate. That generally means that you should obtain coverage while you are healthy and between the ages of 45 to 55 are the best time to secure the coverage.

Our speaker, John B. Linvill, Jr., CSA of J. Linvill LTC, specializes in long term care and is knowledgeable, professional and can be very helpful in your long term care planning.

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September 11th

We pause today to remember those who died in the terroist attack of September 11, 2001. It has been 8 years and I can remember the moment like it was yesterday. I sat in my office at Prudential Insurance in Holmdel, New Jersey, at the time. There was commotion outside my door with folks heading to the cafeteria and lounge area where our television sets were located. There was news about a plane crash in New York City.

I arrived in the lounge at the time that the second plane hit the World Trade Center and thought it was just a replay of the first plane. It took a moment to realize that this was live. At that moment, there was clear panic. No one knew what to think. Maybe the air traffic control system had gone haywire. No one knew but the phones were ringing and people were calling friends and family living and working in New York. It is amazing how far technology has advanced in 8 years. At that time, it was a bit more primitive getting adequate and timely information.

The office was closed within an hour or so because everyone was just so upset especially when there was news of a plane crashing into the Pentagon. WHAT WAS GOING ON!!!

Now, 8 years later. We remember those who lost their lives and the heroes of that day, many whose lives were also lost.
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Charitable Trusts

Charitable Trusts are another way to engage in charitable giving. The types of trusts discussed today have significant tax benefits and include the Charitable Remainder Annuity Trust (CRAT), Charitable Reminder Unitrust (CRUT) and Charitable Leads Trust. The first two trusts, CRAT and CRUT, allow you to provide a remainder interest to a charitable organization while you continue to benefit during your lifetime from the asset to be transferred. These trusts are considered split interest trusts. They have both charitable and non-charitable beneficiaries.

The Charitable Leads Trust is also a split interest trust. However, it is the reverse of the CRAT and CRUT. The Charitable Leads Trust pays income first to the charity for a term of years and then the remainder amount is paid back to you or, if the trust is established after your death, to your beneficiaries. This means that the charity gets paid first and then the non-charitable recipient. Therefore, the charity leads the non-charitable recipient. That is why this particular trust is referred to as a Charitable Leads Trust.

The use of CRAT, CRUT and Charitable Leads Trust offer financial advantages to you during their lifetime. With the CRAT and CRUT, you, as the non-charitable beneficiary, have the right to receive, at least annually, an annuity or unitrust amount for life or for a term of years (not more than 20 years). At the end of the established term, the remaining assets of the trust are paid to or held for the benefit of charity. If the interest is an annuity interest, then the trust is considered a CRAT. When it is established, you choose the payout rate. The higher the payment to you, the lower the charitable deduction will be for tax purposes. If the interest is a unitrust interest, the trust is considered a CRUT. In the CRUT, the assets are revalued every year to determine the payout rate each year.

Whether you use a CRAT, CRUT, or a Charitable Leads Trust, you should choose appreciating assets to give and place in the trust. Since charities are not taxed, this will avoid a capital gain tax when the asset is sold by the charity. Therefore, for appreciating assets like real estate and stock, you get a charitable deduction during your lifetime and the charity avoids a capital gain tax.

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Ways to Make Charitable Gifts

Many people during their lifetime engage in charitable giving activities. They make gifts to cancer research, heart associations, educational institutions, or well water projects. Many give to hospitals, churches, or other religious and cultural institutions. Others have long term relationships with charities and want to continue charitable giving upon their death but they just do not know how. That is where estate planning comes into play.

There are many ways to engage in charitable estate planning. Today, I will address one of the most basic ways to make a charitable gift. That is through a bequest made in your will or trust. A bequest is appealing to many people because they can maintain control of their assets until they die, it is the easiest way to give, and it can also be changed at any time. The bequest is a statement in the will or trust identifying assets you want to leave and to which charitable institution you want to leave the assets.

Tomorrow, we will address other charitable estate planning methods. Stay tuned.

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Gift Tax Law

It is unusal but it does happen. I had a client who was the sole beneficiary under his aunt's will. His aunt did not have any children or a surviving spouse. However, there were other relatives but the aunt only saw fit to leave her estate to this particular nephew. No one disputed the will. The client came to me because he wanted to share the wealth with others.

Bottom line; the inheritance is his and he has to pay all of the inheritance taxes. If he chooses to share any of his inheritance, it would be a gift to the other relatives. Whenever assets are given to another for less than its full value, the amount by which the asset’s value exceeds the money paid for them is a gift. In this case, the $95,000 for each of 5 relatives would be a gift of $475,000. Everyone has a lifetime gift exclusion amount of $1,000,000. As long as he does not gift over $1,000,000 during his lifetime, there will be no gift tax due. However, there is a gift tax filing required if his gift over a certain amount annually. This annual exclusion amount for 2009 is $13,000. Therefore, in his case, the gift tax filing will be required.

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Labor Day

Well, it is Labor Day and I was wondering what might be of interest to people today. First, I thought I would reflect on its purpose. Labor Day is a holiday started by the Central Labor Union to honor the working man/woman and reward him/her for all his/her hard work by giving him/her a day off, a day of rest.

But, why are we working any way? What is the purpose of all this labor? You know I always think in terms of estate planning. And, I have found that there are three broad views that most people have when asked about estate planning and its application to their circumstances. First, there is the traditional view that estate planning is just about money, real estate, and guardianship. Second, there is the expanded view of estate planning that addresses nontraditional assets, turning human potential (ones' legacy) into valuable assets to pass on to others.

The third view is more about our purpose, why we Labor. I read about a two-year study by William Marsten, a prominent psychologist, who asked 3,000 people the following question: “What have you to live for?” He discovered that amazingly 94% of those interviewed had no definite purpose. For me, that means that those individuals did not realize the importance of their own traditional assets nor the potential of their nontraditional assets or their legacy. The men and women interviewed and many more like them are not active participants in their own lives. They are in a holding pattern, like a plane on a runway awaiting clearance to take off. But, what clearance are they all waiting for? How will they ascertain their life’s purpose so they too can soar?

If this study is indicative of our society, most of us are not living life. We are merely enduring life or letting life just happen to us. I have come to realize that if we contemplate our life circumstances now, we will discover our purpose and what we may have to pass on. The estate planning process requires that you assess your life now, to identify your assets (traditional or nontraditional), to determine your beneficiaries (family or otherwise), and to control when and how your assets are distributed.

Let your Labor have a purpose that will transcend your mortal life. Leave your comments here or contact us at http://www.ythlaw.com/.

Protecting Your Wealth For Your Family - GRAT

I read a great article on Forbes.com, Keeping Family Wealth From the Taxman, by Elda Di Re and Scott Ferritti. I share a part of that article pertaining to a great taxing saving vehicle for this economy, the GRAT. If you get the chance you may want to read the entire article.

"In view of historically low interest rates, the current environment is an optimal time to give consideration to establishing a Grantor Retained Annuity Trust, "GRAT". A GRAT is a particularly attractive estate planning strategy due to the fact that the resulting gift tax cost can be eliminated.

The GRAT is an estate-freezing strategy that enables the business owner to transfer future appreciation in the business to children at a substantially reduced gift tax cost. Under the GRAT arrangement, the owner would transfer assets to an irrevocable trust and retain the right to receive a fixed annuity for a term of years. At the end of that term, the remaining assets in the GRAT would pass to the children.

The benefit of a GRAT is that, although all remaining assets would go to the owner’s children at the end of the term, the gift tax on the transfer to the GRAT is computed on the value of the remainder interest at the time of the transfer. The value of the remainder interest is computed by taking the original value of the transferred property and subtracting the present value of the annuity payments.

The owner receives annuity payments from the GRAT each year and may be established high enough so that the annuity's value approximates the value of the assets transferred into the trust, thereby reducing the gift tax cost to zero. The ability to "zero-out" the GRAT makes the GRAT an ideal estate planning tool."

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Get Your Deeds in Order - ISSUE THREE - Trust Provision

This is the third day of looking at the issues surrounding Deeds. Many Deeds need to be updated to current situations.

Today, we address those Deeds that provide that they are held in Trust for designated individuals. Many times this occurred because the person was underage and needed to have someone named as the Trustee over their assets. Does that need still exist when the person is no longer underage?

I would suggest that some of the reasons for establishing the Deed in Trust for others after time, no longer applies. However, no one takes the time to make the change to updated circumstances. It is best to revise Deeds when all parties are well and can make sound decisions. Do not wait for an emergency which will make it more costly and time-consuming.

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Get Your Deeds In Order - ISSUE TWO - Other Deceased Relative or Person Still on Deed

Yesterday, I discussed taking a deceased spouse's name off of your Deed. Today, we look at other deceased people whose names still appear on a Deed. In order to remove a deceased person's name off of a Deed, it has to be determined who received the interest in the property upon the person's death. Did the person hold title with the others as Joint Tenants with Rights of Survivorship or was the interest held as Tenants in Common?

Joint Tenants with Rights of Survivorship
If the property was held with rights of survivorship then the interest of the deceased person will go to the other owners named on the Deed. A new Deed can be issued with just the names of those currently listed with the deletion of the deceased person.

Tenants in Common
If the property was held as Tenants in Common than the interest of the deceased person will be distributed in accordance with the person's will or if the person died without a will the interest will be distributed in accordance with the state's intestate laws. This could get very complex and confusing. But, it must be addressed because it will continue to grow more complex otherwise. For example, what if the deceased person's heirs are also deceased? Who did those heirs leave the property to? And it goes on and on the longer one waits to clean up family Deeds.

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Get Your Deeds In Order - ISSUE ONE - Deceased Spouse Name still on Deed!!!

So often as part of the Estate Administration part of my practice, I have to address issues that should have been resolved long ago. Over the next few days, I will discuss the typical type of problems that arise with Deeds. Today, I will address the Deeds that still have a deceased spouse's name on the Deed.

Is your deceased spouse's name still on your Deed?
When one spouse dies the property becomes the property of the surviving spouse (Tenancy by the Entireties). The surviving spouse takes 100% ownership as the right of the surviving spouse. Therefore, many choose to not incur the cost of having a new Deed prepared. However, when there is a sale of the property evidence of the death of the spouse whose name is still on the Deed is needed. Though this is easily accomplished with a death certificate, it is still another step that has to be taken. You may have a death certificate handy or you may have to order another one. Everytime something is done with the Deed, the explanation and proof has to be provided, even for the heirs at the death of the surviving spouse.

I recommend, for yourself as well as your heirs, that a new Deed be prepared when one spouse dies. The minimum cost that you will incur will save you and your heir lots of unnecessary anguish in the future.

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The Power of a Story - Kennedy in His Own Words

As Senator Edward M. Kennedy was laid to rest at Arlington National Cemetary, his legacy could be seen in his family, friends and the nation touched by his 47 years of service in Congress. I watched the services held for him but also, like many, I saw the HBO special Kennedy: In His Own Words. The Kennedy Dynasty began in the years after World War II and Senator Kennedy carried on that dynasty for his entire life, flaws and all.

It is important that all of us tell our story in some way. I work with my clients to do just that, create their legacy. All of us have a unique life from which others, especially our family and other loved ones, can learn and benefit. The Kennedy's have not taken their story to their graves but have documented it in ways that we all can reflect. I venture to say that estate planning was a top priority for this family. At the time of death of each respective family members questions of having a will or taking care of those left behind were NEVER raised. It was done, no question!!!

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Board Members of Non-Profits - Succession Planning

Board members of non-profits often have their hands full with all aspects of raising money to further the non-profit's mission as well as keep the non-profit viable. From discussing how to raise money, organizing and having fundraisers, writing for grants, to nurturing relationships with potential donors, board members could fail to address another important aspect of their responsiblity. Business succession planning can not be overlooked by board members. A non-profit is still a business and without taking into its role business succession planning, the board members will miss out on the most important viability issue facing a non-profit.


Business succession planning is at every level of the work of a non-profit; from its committee membership, its operations personnel, to its board membership. Now is the time to take a look at each of these area and address any deficiencies. Without succession planning the future of your non-profit IS at risk.

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Wow!!! You Hit the Lottery, Now What?

In these economic times we still have people hitting the lottery for millions of dollars, inheriting millions, and making fortunes on certain investments. Are you prepared for a financial windfall? I would venture to say that many are not. I would further venture to say that EVERYONE should be because what it takes to be prepared for a windfall is what it takes to be prepared for LIFE!!

Here are my lessons for life as it relates to Winning The Lottery!!!

1. Too much of a good thing is not a good thing. Do not take a lump sum payment. Take the money over time. It gives you time to think rationally and even to learn more about what you have and what you really need.

2. What you don't know CAN hurt you. Learn about money. Educate yourself by taking a course on money management and investments. You have the time and money and it is well worth it.

3. You Can't Take It With You. You need to make a will. A will represents your wishes regarding the distribution of your assets. Without a will, you leave it to the state and can create disharmony among your family. A little planning goes a long way.

4. Help Those Who Help Themselves. Many people will ask for help along the way and some immediately upon knowing of your good fortune. But ask them, what are you doing to help your situation? Do not just go on what they say, go on what you know. People do not change with a hand out.

5. Know Your Friends. Your true friends expect nothing from you that they were not already getting before your windfall.

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Senator Edward M. Kennedy - An American Political Icon Dies

Senator Edward M. Kennedy will be remembered as we mourn his death. I share the attached video and look forward to addressing your comments over the next few days regarding his life and legacy.

http://www.comcast.net/video/ted-kennedy-dies-after-battle-with-brain-cancer/1226994418

Prenuptial and Postnuptial Agreements

As part of any estate planning, you must consider any upcoming marriage and the inheritance rights you might want to bestow on your new spouse. This is especially true in second marriages where there are children involved. This would entail the use of a prenuptial agreement which is used before marriage to generally alleviate inheritance rights.

There are now postnuptial agreements that may be entered into between spouses to address similar issues. There has to be full disclosure of assets in the postnuptial agreement. There has to be a lack of duress in the creation of the postnuptial agreement. It has to be fair to both parties.

Admittedly, the postnuptial agreement is not as strong as a prenuptial agreement but it is better than no agreement at all if inheritance is at issue. Given this precaution, each party should be represented by counsel.

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Irrevocable Trust - When to Use

The Irrevocable Trust is an asset protection vehicle because it can protect your assets from creditors, bankrupty, divorce and nursing home costs. However, there is a 5 year look back period when applying for medicaid to cover nursing home costs.

Further, you must be cautious when placing anything in an Irrevocable Trust. If others can not reach the assets in the trust, neither can you. You can not change the terms of the trust or terminate the trust in order to retrieve the assets placed into the trust. You have to treat the trust assets as though you no longer own them because you no longer own them.

Consult with an estate planning attorney if you think that the Irrevocable Trust serves your interest. Leave your comments here or contact us at http://www.ythlaw.com/

Living Wills - Surrogates

I continue to encourage people to get their living will done now while they are able to address the remote possibility of a catastrophic illness. It is important that you name a surrogate. More importantly, you must let the person you name as surrogate know that you named them and then get their confirmation that they can adhere to your wishes.

Do not name someone who CAN NOT agree with having life support withdrawn if you ever experience an end-stage condition or a permanent state of unconsciousness. Unfortunately, this has happened because either the person did not ask or confirm with their surrogate ahead of time. Listen and know that you are making the right decision with naming your surrogate.

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James Brown - His Legacy

I recently read about the settlement reached after James Brown's will was contested by his adult children alleging mismanagement by the trustees. Trustees are those appointed by James Brown (or the court if necessary) to be legally responsible for the financial management of certain assets placed in Trust.

In any event, what I am reminded of in that controversy is the importance (financial and otherwise) of ones legacy. It is the future income from movies, royalties and the sale of James Brown's likeness that may really prove to be the most lucrative for his estate. The settlement leaves his estate to his wife, his children, the Brown Family Educational Trust and charity.

Even though you may not be able to stop someone from contesting your will, you can make sure it withstands the scrutiny of the probate court with proper estate planning. Leave your comments here or contact us at www.ythlaw.com

Stop!!! What Are You Waiting For? To Be Released Soon

Well, the book you have been waiting for has now gone to print. With the death of Michael Jackson, I wanted to include some lessons learned thus far, many more will continue to unfold. So, what is the book about??

STOP!! What are you waiting for?, a comprehensive guide to preserving your wealth, will provide information on the benefits of estate planning. It will address how estate planning (1) protects your assets, (2) saves you money, (3) creates your legacy, (4) distributes your wealth, (5) addresses your special circumstances, (6) insures you peace of mind, and (7) discerns needs as you age.

More importantly, this book will challenge you to reflect on your life. You can engage the estate planning process as a process of self-discovery to help you understand the life that you are living. It may be the first time that you plant an idea of your purpose that can begin to germinate into your legacy.

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An Ambassador's Legacy

Yesterday's blog asked "What is your legacy?". Today, I share how one woman's legacy has crossed over to the shores of Africa. Over 30 years ago, I graduated from Morgan State University in Baltimore, Maryland. Since that time I have stayed in touch with one of my mentors, Ambassador Pamela Bridgewater. After serving as a Professor at Morgan, she joined the foreign service and continues her commitment to inspiring others to excel in education and achieve their dreams.

Now funds are being raised to build a school in her honor. Her work will not only help educate girls but will expand her personal reach by inspiring others to give back and help others. See how you can help at www.kvolugh.com/pamela.html


What is your legacy? Through estate planning, you can capture it now, during your lifetime, and then preserve it for the prosperity of others now and those yet to be born.

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The Color Purple - What is your Legacy?

I recently read that the Alice Walker library at Emory University has opened. Her works, including the original manuscript for The Color Purple, will reside at the institution and therefore be available to the many who may want to enjoy her work or do research on it. During her lifetime, she has made a tremendous gift that will assure her wonderful literary legacy will live on well beyond her lifetime.

Many of us have legacies that we too can preserve whether at Ivy League institutions, community schools or other educational or artistic establishments. It just requires proper planning now. Why allow your work to languish in the basement of your home or the attic of family members who may not appreciate the true worth of your talent? Your talents, whether literary, artistic, musical, or otherwise need your attention to continue to thrive beyond your mortal lifetime. Think about it!!! Act now!!!

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The Five Year Look Back - Keeping Assets in the Family

I am often asked about the 5 year look back period as it relates to nursing home costs. Will the nursing home take all of a person's assets? Can assets be transferred before a person has to go to a nursing home?

In order to qualify for state funding of one's nursing home expense, you either have to have no assets or spend down your assets. There are some permissible spend down, ie. prepaid funeral, home repair but the biggest one is paying for nursing home cost. Once you have paid for the nursing home care for a period of time, most assets are depleted. Some assets are protected if you are married and your spouse is not in a nursing home. If you are single, there is little that can be done unless you have planned ahead of time and transferred assets at least 5 years prior to going into a nursing home.

That is why planning now is so important. Leave your comments or contact us at http://www.ythlaw.com/

Family Reunion and Estate Planning

I just attended my family reunion. When I walked out onto the Park grounds where the festivities were held, I realized that I was linked to something larger than myself. A family reunion is a good time to think about your estate. It helps you to see how over the generations wealth has been accumulated and in some cases wealth has been wasted. As a family, you can sit down and look at what has worked over the generations and try to capitalized on that for the next generation. Watching the young children participate in the organized games and spontaneous activities reinforced for me the importance of estate planning.

Think about what those close to you mean to you. Planning for their future and the future of those yet unseen is one of the most rewarding activities you can engage in, today!! Let your family reunion serve to ignite the desire to plan for the future.

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Estate Planning - How Do I Get Started?

An associate of mine was preparing to make my introduction to a group of his colleagues. He wanted me to listen to what he had put together for my concurrence. He was very complimentary of my estate planning expertise and my caring and professional services. He then proceeded to tell people what they needed to have for a first meeting with me. Let me share his list and provide my comment:

1. Make sure you have all your assets appraised so the value of your estate can be determined.
My comment: Not Necessary
2. Make sure you purchase adequate life insurance to cover your loved ones.
My comment: Not Necessary
3. Pull all your important papers together, including your deeds, insurance, car title, bank statements, income tax returns and investments including retirement accounts.
My comment: Not Necessary

There were some other things that he mentioned. I thanked him profusely for the thoroughness of his remarks but had to comment on the last part. No wonder folks procrastinate on getting their estate planning done. It would be overwhelming for people if they had to prepare that much for the first meeting with me.

I made his last part easy: "For your first meeting with Yvette, you do not have to bring anything. She will guide you easily through the process which may entail obtaining certain documents or not depending upon your specific situation. So, what are you waiting for?"

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Town Hall Meetings and Healthcare Reform

The town hall meetings around healthcare reform are all a buzz. When I think about the importance of healthcare, I also think about the importance of having designated healthcare representatives.

We all want to be able to get appropriate healthcare whenever we should need it. Reform in our current laws is needed to accomplish this goal. We have an opportunity to impact what that law might look like. While we work with our elected officials to assure a plan that we all can live with, we should also be thinking about who will address our healthcare issues when we are unable to address them ourselves.

Do you have a Healthcare Power of Attorney? Do you have a Living Will? These documents allow you to express your wishes should you be unable to do so. They also allow you to appoint an agent to act on your behalf. The agent would be a person who understands what your desires and interests are as relates to your healthcare.

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Creating Your Legacy

An important part of creating your legacy is making sure you build a sound financial future now. Even during these economic times, there are things we can and should be doing. Click on the article below which provides 3 simple steps to get you on the right track.
Financial Planning: Three Simple Steps to Financial Security - Quicken® Personal Finance Money Guide

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Michael Jackson - Buried?

I recently read that Michael Jackson's body will be buried in an unmarked grave. Well, what would he have wanted? I guess we will never know since there was no docummentation, to our knowledge, regarding his wishes.

Over the years, I have asked my clients of their burial intentions. The thought had not occurred to them but when asked to make their wishes known, they had very definite desires. Some have documented their interest to be cremated, with ashes maintained in an urn, tossed into the ocean, scattered over golf courses, and the list goes on. Others would like their bodies donated for scientific research. While others want very elaborate funerals with specific music and religious preferences which may be the same as their family or differ from their family.

No one can read your mind so think ahead and write done your wishes now.

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Finding Your Money!!!

I was looking out the window as I typed this blog admiring the greenery all around me. It made me think about the millions if not billions of dollars people take to the grave with them. This happens when you fail to keep loved ones informed of your insurance, investments, and the other benefits/assets you have.

Take the time now to collect your important papers in one place or make a list of all your insurance policies, investments, bank accounts, etc. Share with the person that you have named as executor in your will or let them know where such information will be located. There are now even on line services that you can use to store this information. Your loved ones will be notified once this service is made aware of your death. They do this by tracking Social Security Administration's death index and other governmental databases. As these services become more popular, less and less money will be diverted to the government. The intended recipient will get the money.

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Amending Your Trust

I had a question from a client regarding their revocable trust. They wanted to know whether they could amend their California trust or whether they had to execute a new trust now that they lived in Pennsylvania.

These clients had moved from California several years ago to Pennsylvania. In California they had executed a trust and proceeded to place their assets in their trust. This required them to retitle their assets from their individual names to the name of their jointly held trust. Over time new assets had been placed in the trust and now they wanted some of the terms to change since their circumstances had changed.

In response to their question, I advised that they could amend their trust. This way all of the assets already titled in the name of the trust would not have to be retitled into the name of yet another trust.

It is important when you move to have all of your estate planning documents reviewed to determine what documents need to be replaced and what documents may only need to be amended. Please leave your comments here or contact us at http://www.ythlaw.com/

Credit Score and Estate Planning

Do you know your credit score? Have you checked your credit report recently? Estate planning is a time to get your financial house in order. An important element of that organization is getting credit score and credit report information. There is no cost to obtain this information and the importance to you is immeasurable.

How can you create wealth or leave a legacy if you are not on top of your own personal financial affairs? Today, your credit score is used for so many things and without a good one you may find yourself paying more, losing out on opportunities, and unable to secure your dream of a home. Once you obtain your credit report make sure it reflects your true credit information and if not have it changed immediately. Once your obtain your credit score, if it is high keep it that way and if it is low begin to make improvements.

In this day and time what you don't know can hurt you!!! Provide your comments here or contact us at http://www.ythlaw.com/

Power of Attorney

I have blogged about the importance of having a power of attorney to address your financial affairs if you are ever incapacitated. More and more people understand the importance of the power of attorney but have questions about the formalities. They ask does your agent sign the power of attorney when you do? If not, when does the agent sign? Does the agent have to sign before a notary? How do I take the authority away from the agent? These are all good questions and the responses follow:

When does an agent sign the power of attorney?
The agent does not have to sign at the time that you sign your power of attorney. The agent's signature does not have to be notarized only the maker. In fact, since you only intend for your agent to use the power of attorney when you are incapacitated, then it is at that time that the agent signs and dates the power of attorney.

How do you revoke an agent's authority?
You should maintain your original powers of attorney. If you no longer want a person to serve as your agent then the powers of attorneys should be destroyed and new ones entered into. If your agent has an original power of attorney, then you must get it back and destroy it. Otherwise, you have to notify any one who may rely on the power of attorney that you have revoked your agent's authority. ALWAYS appoint someone whom you trust.

Springing Power of Attorney
There is another type of power of attorney referred to as a Springing Power of Attorney. It can only be used if a doctor has certified your incapacity and such certification must be attached to the power of attorney for it to be effective. The Springing Power of Attorney is revoked once your regain capacity.

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Living Wills: The Debate Continues

As healthcare reform bills continue through congress, we pause to again reflect on the controversy over Living Wills. As I stated yesterday, a Living Will does not address all health related matters. It provides everyone with an opportunity to address our preference regarding life support if we should ever be in an end-stage medical condition or a state of permanent unconsciousness.

I wanted to add today that a Living Will can be very complex or simple. If you want to provide specific details regarding your life support alternatives, you can do that. If you merely want to state that you do not want heroic efforst used if you are in an end of life state, you can do that as well. Most important, whether your Living Will is complex or simple, it should be explained and understood by the person you name in your Living Will as your surrogate. That will be the person to address your life support preference when you are unable.

A Living Will allows you to address end of life decisions and not leave it in the hands of others who do not know your wishes.

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Living Will and Healthcare Reform

Remember, the 2005 Terri Schiavo case which received national attention. Living Wills, an estate planning document, received front page notoriety and was the topic of discussion around water coolers, coffee shops, chat rooms, you get the picture. It was all a buzz!!

Well, it's back!! This time Living Wills are being discussed in the context of healthcare reform. Doctors and medical institutions in the past had been encouraged to determine the medical treatment wishes of their patients. Have you or someone you love been to the hospital recently? What are all those forms that you have to fill out? For many medical procedures, the hospital wants to know your preference regarding any life support measures or whether you want to be resuscitated. They may ask do you have a Living Will or DNR (do not resuscitate) order.

As I have counseled my clients,a Living Will is not the same as euthanasia. However, this has become part of the current controversy. So I think it is important to discuss exactly what a Living Will is.

What is a Living Will?
In the context of laws like Pennsylvania, a Living Will is used to express your desires regarding life support for end-stage medical conditions or a permanently unconscious state, such as an irreversible coma or an irreversible vegetative state. There also has to be NO realistic hope of recovery. In other words, without life-support, death would result. Your physician and generally another attending physician would make this determination. After the determination, the surrogate named in your Living Will would express your wishes as documented.

What are Life Support Measures?
The type of life support addressed by your Living Will may include measures like mechanical respiration, cardiac resuscitation, tube feeding, or other artificial forms of nutrition or hydration. This is not an exhaustive list but merely serves as an example. With modern technology, the forms of life support continue to advance. That is why it is important to have a discussion with your physician to understand the options available and how you want to address those options.

Do You Have A Living Will?
A year after the Schiavo case brought national attention to the subject of Living Wills and people were being encouraged to express their wishes in a Living Will, I commissioned a survey and found that 69% of the local population still DID NOT have a Living Will. Age did not matter, though the older population was slightly more prone to address this topic than those much younger. The results of the survey confirmed that most people are not making Living Wills a priority. Even with the incredible media coverage surrounding the case many people just have not been moved to action by executing a Living Will. I surmised, at that time, that any increase in other parts of the region or nation was minimal.

What Next?
What will the current debate on Living Wills have on people? Will making a Living Will be on the rise, decline or remain the same. Well, I am looking forward to conducting another survey after this controversy ends.

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Estate Planning Now For the Health of Your Life

This morning I went jogging, nothing noteworthy just lightly jogging. I was not jogging because my doctor told me to start doing some exercise or I needed to prepare for a race. I was jogging just to be healthy. And then I thought, why do people need to get their estate planning done. Just because one does their estate planning does not mean they are getting ready to die. Though for some unfortunate reason some people believe making a will might lead to an early death. Well, that is a myth so dispel it!

In any event when one gets their estate planning done, it can be done because they want to be prepared for their eventual death but clearly intend to live a long life. Getting estate planning done will not shorthen their life but will allow them to live knowing they have taken care of the next generation. So like jogging to live a healthy life, how ever long that may be, estate planning is done to live knowing the financial health of those we love has been addressed.

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Medical Claims Against Estates

I read an article in the Philadelphia Estate Planning Council Newsletter by Susan H. Kavanagh of Kavanagh Solutions pertaining to estates and medical claims. I have discussed in prior blogs that upon someone's death, the debts and expenses of the estate must be paid prior to any distribution to heirs or beneficiaries. An increasing problem for estates are medical claims, as noted in the article.

What is the problem?
This increase is due to gaps in coverage, higher deductibles and coinsurance policy limits; hospitals and other providers are negotiating higher fees and aggressively pursuing balance bill collections; medical cost inflation; reimbursement issues; prescription drug cost increases and aging baby boomers having more medical problems.

What can you do?
You want to be adequately insured and make sure the same applies to your loved ones; have a professional review significant bills/payments for chronic illnesses; organize your bills chronologically; become knowledgeable in insurance and healthcare; seek the needed expertise from others.

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Social Security - Myths and Facts

As part of our Elder Law work, we often address social security questions. I recently read a good article by Renee DeFranco, Social Security Myths Debunked, which addressed 7 important social security questions. Here are 2 of the questions with part of the answers and a link to the article so you can review the other 5 questions and answers.

Q: Social Security is predicted to run out of money within the next 30 years. Should we start collecting as soon as possible, at age 62, before there's nothing left to claim?

A: According to Social Security commissioner Michael J. Astrue, benefits for today's retirees are safe. However, if nothing is done to reform the system, the trust funds will begin to lose money in 2016 and will run out by 2037. A Social Security spokesperson John Shallman assured that Social Security tax income would be enough to pay roughly 75 percent of scheduled benefits through 2083. However, if the thought of insolvency keeps you up at night, it might be better to cash in early.

Q: Do I have to pay income tax on my Social Security benefits?

A: Less than one-third of current beneficiaries pay taxes on their benefits, according to the Social Security Administration. The rule: If you file a federal tax return as an "individual" and your total income is more than $25,000, you will have to pay taxes. If you file a joint return, and you and your spouse have a total income over $32,000, you will also have to pay taxes. Consider having taxes withheld from your Social Security checks.

For the 5 other questions and answer visit www.comcast.net/finance/forwhatitsworth/145/socialsecuritymythsdebunked/

Feel free to leave your comments or contact us at www.ythlaw.com

Tax Incentives and Long-term Care Insurance

I have discussed the importance of having long-term care insurance. Since we are now living longer, healthcare issues have become more prevalent. Over time the cost can be exuberant and consume all of the family's assets. A previous survey of the Health Insurance Association of America revealed that 48% of those turning age 65 will make use of a nursing home and and 72% will use home care. Long-term care insurance covers the costs of a nursing home, assisted living and home care depending upon the coverage your purchase.

Tax laws at the federal and state levels provide incentives for individuals and businesses to purchase qualified long-term care insruance policies, with the goal of decreasing reliance on Medicare and Medicaid both of which may experience capacity issues in the future.

Browse some of my other blogs on this topic to educate yourself on your needs and your next steps. Leave your comments here or contact us at www.ythlaw.com

Celebrity's Will

Another celebrity's will is being revealed and what can we all learn. Farrah Fawcett who died June 25, 2009, the same day as Michael Jackson, left most of her fortune in trust to her only child. Sounds simple and straight forward enough. But, as with all things it is the back story that fuels the headlines.

Farrah Fawcett left nothing to Ryan O'Neal, her longtime companion and the father of her son Redmond O'Neal. And the point here is WHAT??? It is HER will and other than a spouse, she is not required by law to leave anything to a companion even if he was with her throughout her illness.

Her estate is being reported to be 5.5 million dollars in cash and millions more in special holdings, still to be determined. Her son who was in prison at the time of her funeral, and still is, for drug related probation violation, though he was allowed to attend the funeral. In any event, she left the money in trust with 2 executors to oversee the money for his "journey into sobriety rather than giving him the means to destroy himself." If a dying mother can not turn a child's life around, will a well manage fortune do it? At least Farrah Fawcett believed as much and in the final analysis that is all that matters.

She also left money to her alma mater, Texas University. This is an important part of her legacy and her way to help others as she was helped by her alma mater.

More when the will is released. Your thoughts or comments are appreciated. Contact us at www.ythlaw.com

Probate - Your Questions Answered

I address so many questions from clients going through the probate process. These questions are raised by beneficiaries under the will as well as executors. Here are a few with the answers.

(1) How do I know what I get under the will? The will is a public document. You can obtain a copy of the will from the register of wills if it the executor does not provide you with a copy.
(2) When do I receive my share? All debts must be paid prior to any distribution of assets to beneficiaries. This would include final funeral expenses, last medical expenses, taxes and all other debts. A notification placed in the paper regarding a death puts creditors on notice and gives them the opportunity to present their claim if it is not already known to the executor.
(3) Do I pay inheritance taxes on what I receive? Inheritance taxes must be paid. If the executor does not pay the taxes out of the estate, the beneficiary (the one receiving the asset) must pay the taxes. Since the executor is responsible for the complete administration of the estate, it would be prudent for the executor to make sure the inheritance taxes are paid prior to making distribution.
(4) How do I transfer real estate located in another state? This question is often raised by executors when the deceased person lived in one state and owned real estate in another state. If the property was owned jointly with rights of survivorship, then it would pass to the surviving owner without going through probate. However, if the person was the sole owner or was a joint owner (without rights of survivorship) then the real estate interest will pass through probate. The executor would have to open up probate in 2 states.
(5) How can I successfully challenge the will? A challenge to the will would have to be based upon its validity. Was it executed in accordance with the legal requirements in the state? Was the decedent of sound mind? Was the decedent under undue influence or duress? The evidence would have to support the allegations. It may be costly and it would delay any probate.

Post your question or contact us at www.ythlaw.com

Your Legacy And Charitable Giving

When you use the term philanthropy, many people think it does not apply to them but to the very wealthy. However, most people do see themselves as charitable. Well, philanthropy and charity are one in the same thing. You often are charitable to those things that matter most to you. In your display of charity, you are expressing a part of yourself, a part that can be captured in your estate planning. It is your personal legacy.

For many, one of the most important part of a personal legacy is philanthropy/charitable. But it is seldom just about the amount of the check or the impact the gift has on taxes. It is about the personal legacy story and the portion of the story that the charitable gift completes.

I have many clients who are committed to the idea of higher education and making it more accessible and afforable to others. As a result, they often want to provide a bequest in their will or establish a trust which would represent their legacy. They feel a greater sense of connection to the causes and educational institutions to which they give, and they are better able to articulate their values and life experiences that led them to their philanthropic/charitable choices. As a result, philanthropy/charity can provide the added benefits of both a teaching tool and a treasured family tradition.

Your comments are encourage or feel free to contact us at www.ythlaw.com

Don't Take Your Passwords To The Grave.

I was reading an article in MarketWatch written by Andrea Coombes. See link below to place in your browser. I think it is food for thought. Many of us do not think about the details of our estate. Business that we do on-line has grown leaps and bounds. Many of our heirs would know nothing of these accounts waiting for something to come to our homes in our mailbox. I encourage you to read the article and see how your might protect your valuable assets from the state or others who are not entitled to the fruits of your labor.

Link:
"http://finance.yahoo.com/focus-retirement/article/107384/dont-take-your-passwords-to-the-grave.html?mod=fidelity-managingwealth"

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Is This Your Child?

I was walking this morning and thinking about how important it is to plan these days. Can you imagine that after your death, someone claims to be your child? This is a person that no one in your family knew existed. This happens more than you might think. Anna Nicole Smith's attorney had stated that some of the provisions in Anna Nicole Smith's will was to address this concern. Both men and women need to address clearly who they intend to be the beneficiaries under their will.

As I have pointed out before, you do not have to provide for your children in your will. However, those who may claim to be your children, though they were not named in the will, can allege that it was an oversight. If you just state that you provide for your "children" without defining, then they claim rights under that broad designation. If you die without a will, the intestate laws provide for distributions to children.

So, is this your child may be a question that has to be answered after your death. Your planning can at least make clear your intention regarding inheritance rights.

Feel free to leave a message or contact us www.ythlaw.com

Planning for Non-Traditional Families - continued

Yesterday in my discussion of domestics partners, I mentioned there are situations where cohabitation/domestic partnership agreements are advisable. Among those reasons are:
1. When a second person's name is added to a deed after considerable equity has already been established in the home during ownership by the first owner. The agreement will help clarify ownership interest in the real estate.

2. When property purchased jointly is only held in one person's name.

3. When one person is the financial provider and the other is a home-maker.

4. When unequal contribution are made towards the purchase of jointly held property.

5. When there is an interest in giving benefits or rights to another which are not required or available under the law.

6. When assets are co-mingled or combined.

7. When there are family members who may dispute the interest of a domestic partner.

I think it is always wise to have an agreement between domestic partners because there are many situations that we can not anticipate and an agreement helps with defining how to handle.

Provide your comments or contact us at www.ythlaw.com

Planning for Non-Traditional Families

It is just as important if not more important for same sex couples to engage in estate planning. With the exception of states like New Jersey, Massachusetts and Vermont, there are few laws providing benefits and protections for domestic partners.

I was talking with a CPA specializing in estate planning about the unique tax issues that arise in domestic relationships. Specifically, she expressed that same sex partners, unlike married couples, have no IRS exclusion for property or monetary transfers between them. Such transfers could be subject to gift tax and transfer tax. If there are significant assets involved in a separation between domestic partners, even if the financial provider wanted to be fair with property division, the tax consequences may be prohibitive. After the lifetime exclusion of 1 million dollars is gifted, the excess will have a gift tax imposed. The gift tax rate starts at 41% and goes to 45%. It will be lowered in later years to 35% but this is still a hefty tax for anyone to pay.

Tomorrow I will address Domestic Partnership Agreements. When should you have one? Leave your questions or comments here or contact us at www.ythlaw.com

Where Are Your Estate Planning Documents and Have They Been Signed?

One of the biggest problems when someone you love dies is where are their "official" documents. Some people share that information with others close to them but too many do not. So today I want to share best practices for estate planning documents with you.

Estate planning documents have no legal effect whatsoever until they are signed and, where required, notarized. Once you have reviewed and finalized the documents, you should proceed to have them executed immediately. As important as this may be, I have found on more than one occasion that people have held documents for years without having them executed. I remember one couple wanted to know if they should execute documents drafted more than three years prior. There are some people who never get around to executing documents prepared for them. That is why it is important that the attorney, or whomever you choose as the coordinator of your estate planning, should always make it a part of their practice to arrange the execution of all estate planning documents.

Once your estate planning documents are executed, you have several options for places to maintain your original documents. You can keep them in a safe deposit box at your bank or financial institution or a safe that is fireproof and waterproof in your home. The attorney can maintain your original documents for you as well. In many states like Pennsylvania, you do not have to file or register your will upon execution. It is only filed or registered at death.

It is your preference regarding the maintenance of your original documents. You also want to make sure those who will be serving in a fiduciary capacity know where your documents are located and can get to them when needed for your benefit.

Do you have questions or comments? Leave them here or contact us at www.ythlaw.com

As We Age - Elder Law

I had mentioned before that I alway use my birthday as a time to review and reflect on important health, financial and personal matters. Making sure my estate plan is up to date is a part of this annual reflection. Well, today is my MOTHER's birthday!! Happy Birthday Mom!!

We are fortunate that my mother and father are both vibrant and healthy individuals. However, just like we should be doing our estate planning when we are healthy and can make sound and rational decisions, we should address issues of healthcare and long-term care when we are healthy and can make sound and rational decisions. The "sandwich generation", those caring for children and potentially caring for aging parents, should be planning for the issues that arise as we age. This would include the social security areas of retirement, disability, medicare and medicaid; long term care insurance; assisted living; and, guardianship. All of these areas have issues within them that can be sorted through with the help of an elder law attorney.

Feel free to contact us soon at www.ythlaw.com.

Guardianship - Lessons from the Celebrities

The issue of guardianship is just such an important part of one's estate plan that it can not be stressed enough. I am reminded of the case of Anna Nicole Smith. It illustrates the importance of determining guardianship in a current will. Former Playboy model celebrity Anna Nicole Smith (Vicki Lynn Marshall) died in 2007 at age thirty-nine, leaving a five month old baby, naming no father, and having an obsolete will that left everything to a deceased son and omitted provisions for future born children.

Even after paternity was determined, the litigation and law commentaries continued over other unresolved questions. My advice is to take the time now to survey the list of potential guardians for your minor children, make a decision regarding guardianship, and stay current by updating your will when necessary. In fact, the lesson to be learned from this case is the importance of a properly drafted estate plan in order to protect your children who are an essential part of your legacy.

Feel free to leave a comment or contact us at www.ythlaw.com

Disinherited Spouse - Elective Share

We have learned while watching the coverage of Michael Jackson estate that you do not have to provide for parents, siblings, an ex-wife or other family members. However, I thought I would take this time to address who you can not disinherit. You can not disinherit a current spouse; husband or wife.

If the will does not provide for a husband or wife, then the disinherited spouse can elect to take against the will. The assets which the spouse has a right to includes property passing under the will of the deceased spouse or by intestacy if the deceased spouse died without a will. In addition, assets conveyed during marriage, by the deceased spouse to himself or herself and another with rights of survivorships, are also included. Finally, assets that were given away within one year of death, to the extent that the gift exceeded $3000 or the statutory limit.

The elective share rule is an election that a spouse must affirmatively make in order to receive a 1/3 share of the deceased's estate.

Each state differs so to learn more contact our office at www.ythlaw.com or leave a comment.

Guardianship and Your Minor Children

Back to Michael Jackson's estate, the importance of addressing guardianship can not be stressed enough. If you know there may be a contest for your children, it is important that you get resolution of those potential issues while you are living. Based upon the most recent reports, the guardianship hearing for Michael Jackson's children has been postponed for another week. Over the next week, it is anticipated that Debbie Rowe and Katherine Jackson may come to an amicable settlement for guardianship of Paris and Prince I.

Stay tuned. Time will tell. In the meantime, if you have issues regarding your minor children, I urge you to address them NOW. Your children's future depends upon it.

Leave your comment or contact us at www.ythlaw.com

Updating Your Will

Life if funny you know. It has a way of bringing you such great joy and at other times such overwhelming pain. But, through it all we keep on doing what we need to do. I had clients who came in to have their estate planning done when there was much to celebrate in their life; successful job, great kids. Within two years they were back to update their documents because the husband, not yet 60,was diagnosed with Alzheimer's. Changing life circumstances represent a time to review and possibly update your will and other estate planning documents. Other considerations for updating your will and other estate planning documents include:
(1) Moving to another state
(2) Marriage
(3) Birth of a child
(4) Divorce
(5) Death of a loved one
(6) Disability
(7) An Inheritance

We are here to assist you. Leave your comments or contact us at www.ythlaw.com

Continuing Care Retirement Communities - Healthcare Options

The Continuing Care Retirement Communities can offer independent living, assisted living and nursing care. Many offer all three levels of care or services, though there are some that do not include nursing care as part of the covered continuum or which offer nursing care at a separate location. There are three primary types of health care options:

First type provides an individual with the ability to move from independent living to assisted living or nursing care without any significant change in their monthly payment. For example, if a resident was paying $ 3,000 for a one bedroom apartment but now requires round the clock skilled nursing care,- in this type of community, the monthly fee would remain at $ 3,000 with some additional charge for three meals per day that are required by long term care regulation to be provided in the nursing setting. This first type of community tends to have higher entrance fees and higher monthly fees than the second and third type of communities.

Second type communities are sometimes referred to as modified fee-for-service communities. There are various forms of these communities, but essentially life care is not offered. The resident does not have to pay the full cost of the higher levels of care, either because they receive a discount on the per diem or monthly costs for the higher levels of care (i.e. assisted living and nursing care) or receive an agreed upon number of days within the higher care levels, without additional charge to their independent living unit monthly fee.

Third type communities are frequently referred to as fee-for-service communities. The monthly fee in particular (but also entrance fees) tends to be lower than the fee at other type communities. The reason for this is that there is no insurance like component to the third type community. If an independent living resident requires assisted living or nursing care, they can access that care but will be charged the full cost of the care. There is no discount or free days.

While the advantage of the first type communities is that they offer residents and families the ability to define and pre-plan the expenditures that will be made for current and future care, these communities, of course, tend to be more expensive. The third type community recognizes that not all residents will require higher levels of care; therefore, the resident is only charged for the actual care that is received.

Share your experience by leaving a comment or contact us at www.ythlaw.com

Continuing Care Retirement Communities - Payment Options

Before Michael Jackson's death and all the estate planning issues raised by his death, I had been covering the Continuing Care Retirement Communities. Picking back up with it today I will look at the payment options available in those communities.

Another key distinguishing characteristic of CCRC is the refundability of the entrance fee. The four basic types of entrance fee approaches are as follows:

Non- Refundable: The Entrance Fee is non-refundable in the event of the resident’s death. Non-refundable entrance fees are generally lower than the remainder of the Entrance Fee options described below.

Amortized: An amortized entrance fee generally offers the resident or the resident’s estate the ability to recoup a portion of the entrance fee paid during an agreed upon period.

Refundable: The term Refundable entrance fee is typically used to describe an entrance fee that offers the resident or the resident’s estate the ability to always obtain a specific refund amount – as a minimum.

Equity: Though less common, it is another payment option for some CCRC. The Equity approach represents entrance fee refund plans that offer the resident or the resident’s estate the ability to obtain a refund that reflects a portion of the appreciation of the resident’s living unit or apartment.

What are your thoughts regarding CCRCs? We would like to hear from you. Leave a comment or contact us at http://www.ythlaw.com/

Michael Jackson - Five Estate Planning Lessons

I thought I would check in at this point with estate planning lessons learned thus far from Michael Jackson's death. I am sure there will be more during what is the beginning of a long and complex estate planning saga:

FIRST, you must have a will that is up-to-date and valid.
SECOND, you must name the guardian of your minor children and address potential issues and challenges from a surviving parent who is not named as guardian.
THIRD, you must name the executors who will gather up and protect your assets and ensure distribution in accordance with your will.
FOURTH, you must provide for the distribution of your assets, but you are not required to provide for parents, siblings, an ex-wife, or other family members.
FIFTH, unlike a will, a trust, with all its terms and conditions, is not a public document.

Comment on what lessons you might have learned or contact us at www.ythlaw.com

Business Succession Planning - Continued

In follow up to yesterday's post, I wanted to provide the general estate planning principle regarding debts. Creditors can proceed against the estate to collect their debts. Debts and taxes must be paid out of the estate (or be otherwise provided for) prior to distribution of assets to beneficiaries. Therefore, it is important in any business venture to determine what exposure your venture may have on your personal estate as oppose to your business entity. You want to make sure that you separate the exposure of your business venture from your personal assets. The following are important steps to take:

1. Make sure business ventures are done in the name of your business operation.
2. Make sure your business has been properly capitalized and is in compliance with all legal requirement to assure its viability.
3. Make sure you have assessed risks in your business ventures and provided adequate insurance where your business assets might not be sufficient to cover potential exposure.

ABOVE ALL, ALWAYS seek professional advise and make sure your business succeesion planning is up to date. Leave your comments and questions here or contact us at www.ythlaw.com

Your Estate and Business Succession Planning

Well, yesterday's Memorial Service for Michael Jackson was extraordinary and a real tribute to his legacy.

I had a question posed to me. What effect will the cancellation of Michael Jackson's "This is it" Tour have on his estate? Of course, I do not know the terms of any agreement which may have been put in place but there are a number of conditions that may or should have been considered. I will discuss a few here.

FIRST, the promoters of the concerts, AEG Live, would have taken out INSURANCE on the Pop Star. They reported to the press that Michael Jackson had passed the insurance company's physical exam. He would have been insurable. How much insurance did they have on Michael Jackson and under what condition and terms would coverage be paid out? Only time will answer those questions.

SECOND, there would have been an AGREEMENT to cover all kinds of contingencies like death, disability, sickness, etc. If as reported, the promoters spent $30 million dollars in preparation and made $85 million dollars in tickets sale, in theory they might be out $115 million dollars. However, it has also been reported that 40% to 50% of the ticket holders may opt to keep the ticket as a souvenir reducing the promoter's exposure to approximately $73 million. Further reduction will occur if the agreement provided the promoter with rights to the musical footage of the rehearsal. The small footage already released has received record attention.

FINALLY, in business you must consider the effect of your actions on your estate. What happens if you die? If Michael Jackson worked with an estate planning team and professional advisors, the cancellation of the concept tour may have no negative effect on his estate. Let us see.

An interesting question that we can all watch unfold. Leave your comments here or contact us at www.ythlaw.com

If the will is valid, the named executor rules!

As I sit to write this morning, I reflect on the news coverage and stories since Michael Jackson's death. His memorial service will be today and so the focus may now just be on the musical and humanitarian legacy he leaves behind. Let's hope the other stories are put on hold for a couple of days.

In any event, I did want to speak on yesterday's findings relating to his will. I do agree with the judge that the administration of the estate should be turned over to the executors. Michael Jackson did name his executors in his will and his selection is what should control. The temporary administration of his estate was given to his mother but at that time Michael Jackson's will was not available. Whether the family agrees or not with Michael Jacksono's choice, the will controls.

So today if you should get a chance to see the memorial service, please share your reflections here with us or contact us at www.ythlaw.com

Your Body is an Asset of Your Estate

Tomorrow is the memorial service for Michael Jackson who died June 25th. We can take this time to reflect on another important asset of our estate and that is our bodies.

Many people do provide for direction regarding the disposition of their bodies upon death. Others choose to leave the arrangements and decision to close family members. Generally, close family members take on that responsibility. However, it is important for you to plan. This could be anything from life insurance to cover costs to prepaid funeral arrangements including your burial plot and the service. If you have a preference for cremation, you can provide for that in your will as well.

When you are a Pop Icon, it is even more important to provide for your preference. Did Michael Jackson want to be buried at Neverland? Is that even an available option? What type of remembrance ceremony would he have preferred? Was he an organ donor?

Think about your own situation. Will the disposition of your body cause unnecessary turmoil and more distress because your preferences were not made known? Have you considered the cost and made appropriate arrangements to cover such costs? Does your will address your interest and if not who knows what you want and can carry it out?

Let us remember the genius of Michael Jackson, his legacy and musical gift to the world. But more importantly, let us remember his humanity, kindness and charity. Leave your comments here or contact us at www.ythlaw.com

Witnesses to a Will

A question was posed to me regarding Michael Jackson's will. Apparently the named executors signed as witnesses to Michael Jackson's will. The copy of the will that I was able to obtain had the witnesses name and address covered up so I was unable to confirm who signed. Let's assume that the executors did sign as witnesses. Is that permissible? If not, would that invalidate the will?

Under Pennsylvania law, any competent individual can be a witness; the interest of such a witness does not disqualify, but does AFFECT CREDIBILITY. For that reason, if an individual has a BENEFICIARY interest in the will, the general practice is not to allow such individual to sign as a witness. A BENEFICIAY is someone who will receive an advantage/benefit under the will. Receiving any of the assets is clearly as advantage. Serving as the Executor, is that an advantage? Even if it is, it would not invalidate the will, at least not in Pennsylvania. We will see, in time, what the California law provides.

In any event, having the executors sign as witnesses does raise a question regarding the credibility of the executors to affirm that the person signing was of sound mind and not acting under duress or undue influence. Will this become an issue? Will the executors be able to establish credibility? Thanks for raising the question and let watch how this might play out.

Your comments are welcomed and encourage. Contact us at www.ythlaw.com

Independence Day

HAPPY 4th OF JULY!!!!

I share with you part of a message from President Obama:

"...As we all celebrate this weekend, let's also remember the remarkable story that led to this day.

Two hundred and thirty-three years ago, our nation was born when a courageous group of patriots pledged their lives, fortunes, and sacred honor to the proposition that all of us were created equal.

Our country began as a unique experiment in liberty -- a bold, evolving quest to achieve a more perfect union. And in every generation, another courageous group of patriots has taken us one step closer to fully realizing the dream our founders enshrined on that great day.

Today, all Americans have a hard-fought birthright to a freedom which enables each of us, no matter our views or background, to help set our nation's course. America's greatness has always depended on her citizens embracing that freedom -- and fulfilling the duty that comes with it.

As free people, we must each take the challenges and opportunities that face this nation as our own. As long as some Americans still must struggle, none of us can be fully content. And as America comes ever closer to achieving the perfect Union our founders dreamed, that triumph -- that pride -- belongs to all of us.

So today is a day to reflect on our independence, and the sacrifice of our troops standing in harm's way to preserve and protect it. It is a day to celebrate all that America is. And today is a time to aspire toward all we can still become."



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Michael Jackson's Children still in play?

Well, back to the guardianship issue, it seems.

FIRST, it is reported that Debbie Rowe has not decided whether she will or will not challenge custody of Prince Michael and Paris, her 2 children with Michael Jackson. However the permenant guardianship hearing has been delayed a week until July 14th. This may give the parties time to reach an agreement if in fact there is a dispute.

SECOND, though the will names Katherine Jackson as guardian, Debbie Rowe's parental rights were not severed by the courts. Unless a parent is determined to be "unfit" custody by the biological parent is favored by the courts under normal circumstances. This is anything but normal circumstances.

THIRD, the courts also favor keeping siblings/families together. Debbie Rowe would have no legal rights to Prince Michael II. As reported, Princed Michael II's mother was a surrogate.

FOURTH, though the law is well settled on the rigthts of biological parents and adoptive parents, the rights of surrogates or sperm donors are less clear. Many issues in this area have not been explored by the courts. Will this case serve as that opportunity to explore issues in this area? Only time will tell and I will be providing my estate planning insights.

What more could Michael Jackson have done to secure the future of his children upon his death? This and other questions will be explored in the days to come. We want to hear from you. Leave your comments here or contact us at www.ythlaw.com

Terms of the Michael Jackson Will

So, the terms of Michael Jackson's 5 page will are revealed. What does it mean to YOU? Here are my thoughts on what can be learned from a public discussion of a celebrity's will.

DISTRIBUTION OF ASSETS
Under the will all assets are to be placed into the Michael Jackson Family Trust. The Trust was not filed with the will and is not required to be filed. So, the terms and conditions of the Trust may remain private. The only person that can not be disinherited is a spouse. You do not have to leave anything to parents, children or siblings.

GUARDIANSHIP OF CHILDREN
Katherine Jackson was named guardian of the children and Diana Ross named as the alternate guardian. Who should one name as a guardian? It does depend on your family circumstances. Generally the considerations are your parents, if not aged and unable to provide care, your siblings, if there is a relationship, family friends, if willing and able. Most importantly, whoever is named, should be aware of your intent and agree. This should not come as a surprise to the named guardian.

EXECUTOR OF THE ESTATE
Co-Executors under the will are Michael Jackson's lawyer John Branca and family friend John McClain, a music executive. The role of the excecutors is to gather up the assets and distribute in accordance with the will. In this case, all assets are to be transferred into the Trust. It will be the Trustee under the Trust who will be responsible for managing the assets for the benefit of those named in the Trust. The will does not indicate who the trustees will be.

Who should be named as your Trustee? Generally, it can be individuals, ones whom you trust and whom may be familiar with your affairs or it can be an institution, a bank, trust company, law firm etc. It can be a combination of individual and institution. The more complex the estate, the more essential that the trustee be able to be around for awhile. Institutional trustees generally fit this requirement.

What else can we learn from the Michael Jackson affair? Stay tuned. Leave your comments or contact us at www.ythlaw.com

Michael Jackson Remembered…

Michael Jackson's Will

It has been reported that Michael Jackson's will was found. This was a will from 2002 and reports indicated that there might be another will. Several things came to mind when I read and heard the reports and I share them with you.

FIRST, it is always important to keep your will up to date, to address changed circumstances such as a birth, death, additional assets, relocation, etc. Given Michael Jackson's life, a 7 year old will would probably be outdated.

SECOND, there should only be one original will. It should be maintained in a safe place. Generally the attorney preparing the will maintains the original in a safe. I have my clients maintain the original in their safe at home or at their bank in a safety deposit box. My records reflect the location of the will. When a new will is made the old original will should be destroyed. However, any new will would state that it revokes any prior (old) will.

THIRD, given all of the financial, legal and personal advisors to Michael Jackson, there should be more than just a will for his situation. He needed not only estate planning but asset protection planning. For his children, Trusts could have been established and funded during his lifetime. Such Trusts, if irrevocable, would not be subject to any creditors. Trustee(s) would have been named to manage the Trusts for the benefit of the children. The complexity of Michael Jackson's estate would result in not a simple estate plan but an intricate one addressing Federal Estate tax issues, creditors's issues, family and business matters.

FOURTH, the will when filed becomes a public document. For that reason, many people have their assets placed in a Trust which is not a filed or public document. If there is a will, it would be a simple one which is only done to make sure any asset not already in the Trust is place by the will into the Trust. All the terms, conditions and other specifics of the estate would be addressed in the Trust, the details of which would never become known to the general public.

IN CONCLUSION, this is just the beginning of what will be a long and complex legal matter. As the estate planning side of it unfolds, I will keep you apprised of what matters most. Your comments are welcomed or contact us http://www.ythlaw.com/

Michael Jackson's Children - Petition Filed and Interim Decision Rendered

Now that a Petition has been filed by Michael Jackson's mother/family, Katherine Jackson and a judgment rendered. What next???

The Judge has awarded temporary guardianship of all the children to Katherine Jackson. I agree with the Judge's decision since, in the interim, this probably provides the least disruption to the children. He did not render any decision regarding the "estate" of the children or the administration of Michael Jackson's estate. This will be done (along with a determination of permanent guardianship) at a later hearing which I will continue to monitor.

The question for many is "Doesn't the children's money follow the children so if you get the kids, you automatically get the money?" ANSWER, NOT, NECESSARILY SO!!! The courts can and often do separate the children from their assets.

It is standard in estate planning to provide for a guardian of the children and a trustee for the estate. They could be the same people but not necessarily so. Having a trustee of the estate provides for the money to be held for the benefit of the children for an extended period of time, say, 10, 20, 30 years, etc. A guardian of the "estate" would manage the estate for the benefit of the children until they turn majority 18 or 21 depending upon the jurisdiction.

So, you might say why did Michael Jackson not provide a Will to address all of this? My book addresses this question, what are people waiting for? In any event, at present, the family has stated that there is no Will but I don't think this is a closed matter. Time will tell.

Share your comment or contact us at http://www.ythlaw.com/.

Michael Jackson - Prince Michael II

I previously wrote regarding Michael Jackson's 2 children, Prince Michael and Paris. Today I provide my insight into the fate of his third child, Prince Michael II.

Prince Michael II's mother, based upon the accounts, was a surrogate and has had no relationship with Prince Michael II since his birth. The law around surrogates continues to involve. If the surrogate for Prince Michael II should interject herself in any proceedings regardingt the children, I am sure new law will be made. Once again Michael Jackson's will would be instructive regarding Prince Michael II. What was Michael Jackson's intent? Were there any other legally named guardian/s for Prince Michael since he only had a father? Is the surrogate the "legal" mother? What rights would Michael Jackson's mother have? Generally, grandparents' have limited rights as pertains to their grandchildren when "parents" are still available. But, does a surrogate relinquish parental rights?

Yes, these and many other questions will have to be answered. In my opinion, what would be in the best interest of the children at this time is to maintain as normal a situation as possible before any major change in their living arrangement is made. Their tragic loss has to be processed first before ALL the players start jockeying for them.

Tomorrow, I will look at what custody, guardianship, etc. of the children might actually mean for the person seeking them. Your comments welcomed. Contact us at http://www.ythlaw.com/

Michael Jackson - Who has rights to his Children

It has only be 2 days since Michael Jackson's death and the speculations continue regarding all aspects of his estate. Take his children for instance. Until a copy of Michael Jackson's will is release, we can only wonder what his intentions were. However, even if he covers it in his will, there still might be a challenge to his decision regarding his children.

Today, I want to speak on the 2 children, Prince Michael and Paris, whose mother Debbie Rowe had been divorced from Michael Jackson since 1999. It is not clear whether she gave up parental rights to her children though Michael had full custoday under an agreement. The reports state that the children are currently with their nanny and their grandmother (Michael's mother) is in line to take care of them.

Well, it is my opinion that it will not be clear cut at all. If the will provides for a guardian and it is not their mother, she may challenge the will or just assert her parental rights which would supercede the will. She is the mother and she has been involved in their life, as so reported. If she gave up parental rights, then under what circumstances and have those circumstances now changed with his death. The legal battle would surround the terms of the (1) will, (2) the divorce decree and any settlement made with the court and, (3) the agreement referred to that was made between Michael Jackson and Debbie Rowe outside of the purview of the court. All of this will be viewed with what would be in the best interest of the children: to be with their mother; to be with their grandmother; to be with another relative; or some other option that I can not even imagine at this time. The children, 11 and 12, are old enough for the judge to even ask what their preference might be. So, we have only just begun!!!

I will talk about the third child, Prince Michael II who is 7 tomorrow. His circumstances are different and require a different approach.

Your comments are welcome or contact us at http://www.ythlaw.com/

Michael Jackson - KING OF POP - Dies at 50 - Estate Planning

Stop the presses!!! Yesterday, when I heard about Michael Jackson's death, I was really in shock. He was THE pop icon. More importantly, I grew up on his music. I remember each phase of his musical genius. I loved the Jackson Five!!! Who didn't at 13 and 14 in the 70's. And then, solo, Michael Jackson in the 80's, 90's and beyond. His music evolved and gather new fans throughout the ages. There are just so many favorites that I have. But I will share that I just took "Man in the Mirror" as my personal mantra: "If you want to make the world a better place take a look at yourself and make a CHANGE!!! Oh, yes!!

But, let me tell you Michael Jackson's death now will be for me a continued reason to talk, LOUDLY, about the essentials of Estate Planning. I do not know whether Michael Jackson had a will. As soon as I find out I will blog on it. But as I tell my audiences over and over, You Can Only Plan When You Are Living!!! So, for now we can hope that Michael Jackson did. Time will tell.

What is at stake? He has 3 children!! (What are the rights of the mothers?) He has diverse business interest!! (Who will be in charge?) He has valuable assets!! (Who gets what, when where and how? ) He has DEBT, a lot!! (Did he engage in Asset Protection Planning? Will his debt wipe out his children's and family's inheritance?)

I will be exploring these questions and more on estate planning as the life and legacy of Michael Jackson continues to unfold. Our condolences to Michael Jackson's family.

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Continuing Care Retirement Community - Services Provided

The Continuing Care Retirement Communities are diverse in the services that they provide. The services or programs are either included within the monthly fees or may be separately purchased or accessed on-site for an additional fee.

Examples include the following:
· Meals - This changed over time to reflect preference for more flexibility. Today, most CCRC’s either include a meal per day or some number of meals per month (such as 15 to 20) or offer a monthly dining allowance which can be used whenever the resident chooses.
· Housekeeping - weekly, bi-weekly, monthly, or as needed
· Transportation - on a scheduled basis to local shopping and other sites. Transportation to personal appointments and medical services may be offered as needed for an additional fee
· Activities - recreational options including fitness programs, aquatics, arts, crafts
· Other - emergency response or emergency call

It is best to visit any community prior to making a final commitment. Let us know about your experiences by leaving your comments or contact us at http://www.ythlaw.com/

Continuing Care Retirement Communities

Continuing Care Retirement Communities (CCRC)
We talked about assisted living facilities yesterday. Another supportive housing alternative is the Continuing Care Retirement Communities. These communities offer a blend of housing complex, activity center and health care services. They can consist of independent living, assisted living, and nursing care as well as other programs and activities. Some offer specialized Alzheimer’s memory care units and programs.

There are various types of CCRC types. They differ in the nature of services included or that are optional, the payment structure, the refundability (or non- refundability) of the entrance fee, as well as the physical design features of the accommodations. The three major areas that can be used to assist in defining the types of CCRC’s are services, healthcare options and payment options. Over the next 3 days, we will elaborate upon these three major areas.

Feel free to leave your comments or contact us at http://www.ythlaw.com/

Services (other that health care/nursing care)
Most CCRC’s offer a series of services or programs that are either included within the monthly fees or may be separately purchased or accessed on-site for an additional fee. Examples include the following:
· Meals - This changed over time to reflect preference for more flexibility. Today, most CCRC’s either include a meal per day or some number of meals per month (such as 15 to 20) or offer a monthly dining allowance which can be used whenever the resident chooses.
· Housekeeping - weekly, bi-weekly, monthly, or as needed
· Transportation - on a scheduled basis to local shopping and other sites. Transportation to personal appointments and medical services may be offered as needed for an additional fee
· Activities - recreational options including fitness programs, aquatics, arts, crafts
· Other - emergency response or emergency call

Health Care Options
CCRC can offer independent living, assisted living and nursing care. Many offer all three levels of care or services, though there are some that do not include nursing care as part of the covered continuum or which offer nursing care at a separate location. There are three primary types of health care options: