Former Chief Justice - Relying on do-it-yourself documents

It is important, for everyone, to have a will prepared by an experienced estate planning attorney. Your life's assets are too important to try to do it yourself. Whether you are a rocket scientist, brain surgeon or Chief Justice of the Supreme Court, you need someone with estate planning expertise to get the job done, right.

Chief Justice Warren Burger died in 1995 with a $1.8 million estate and a one page will that he drafted up himself. As a result, his family paid estate taxes that could have been avoided if properly planned. Further, his executors had to pay to go to court to get approval to complete administrative acts, such as selling real estate, that typically a well-drafted will would have allowed without court approval.

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Jimi Hendrix - Never Wrote Will

Music legend Jimi Hendrix died at age 27 in 1970 without a will. Since he did not plan for the distribution of his estate, the State contolled the distribution of his assets. Based upon the State laws, Jimi Hendrix's entire estate went to his father. Though he had a brother who he was reportedly close to, his brother received nothing.

His father did leave a Will when he died. His father's estate (including his inheritance from Jimi) still did not go to any relatives of Jimi. His father had remarried and his estate was left to his new family.

None of us are promised tomorrow. It is better to be prepared than not prepared. Share your comments here or contact us at www.ythlaw.com

Madam C.J.Walker - Entrepreneur Legacy

We continue with the estate planning lessons of the rich and/or famous, the contemporary and/or historical figures. What did they do right or wrong in their planning? Hindsight of course is 20/20 so let it work for our estate planning.

How many of us know Madam C.J. Walker? She was born in 1867 and became an American businesswoman, hair care entrepreneur, tycoon and philanthropist who made a way out of no way to accomplish what many only dreamed about during her time. She made a fortune by developing and selling beauty and hair products. She founded the Madam C.J. Walker Manufacturing Company to sell hair care products and cosmetics. She used her company to build wealth and to promote economic opportunities for others. She provided jobs to many during her lifetime and gave to charitable institutions. Upon her death in 1919, she left two-thirds of her estate to many educational institutions and charities all of which still exist today because of this type of philanthropy.


Because Madam C.J. Walker did plan for the transfer of her wealth upon her death, her legacy lives on today in her great-great-granddaugher's ability to share her ancestor's story through her books, writings and speakes. Leave your comments here or contact us at

Wills of the Rich and Famous

There are lessons for all of us in the planning or failure to plan of the rich and famous. I thought I would spend a few days looking at some rich and famous, contemporary and historical figures. What did they do right or wrong in their planning? Hindsight of course is 20/20 so let it work for our estate planning.

Last night as I was looking at Jeopardy this post came to mind. The question was "At his death in 1790, he left 200 year trust funds to the cities of Boston, MA and Philadelphia, PA?" Do you know the answer? It was Benjamin Franklin.

Franklin decided to leave funds to his native Boston and his adopted Philadelphia, on the condition that it be placed in a fund that would gather interest over a period of 200 years. Franklin's Philadelphia trust was used for a variety of loan programs to local residents. The money was used mostly for mortgage loans. When the trust came due, Philadelphia decided to spend it on scholarships for local high school students. Franklin's Boston trust fund was used to establish a trade school that, over time, became the Franklin Institute of Boston.

In this case, Franklin invested a small amount that accumulated a lot over a long period of time and made a difference in the lives of countless individuals. Rich or famous, a little or a lot, let us help you plan TODAY for tomorrow. Leave your comments here or contact us at www.ythlaw.com

Black History Month

As we end the month of January, we have been able to wish everyone Happy New Year!! As we begin the month of February, many of us are still contemplating those resolutions. Well, a few of you did follow one of my recommendations. That is to make your will. I received a number of calls in January to begin the process. Everyone wanted to do something that had been on their list for awhile and the new year was a good time to move forward. I am glad they did and still encourage others to join them.

As we also usher in Black History Month, I encourage everyone to learn something new this month about the contributions made by African Americans to this country. Everyone benefits from the contributions of others. All ethic groups help to make this country great. Each month serves as a time of reflection, whether it is Black History Month, Women's History Month, Irish American Heritage Month or American Indian Heritage Month. How do you celebrate your heritage?



Plan now, your legacy depends upon it. Leave your comments here or contact us http://www.ythlaw.com/

The Gifts That Give Back

Over the next few decades, it is estimated that trillions of dollars will be transferred from the parents of baby boomers to their children. Charitable giving will play an enormous role in this transfer of wealth. Charitable giving provides many personal and tax benefits. The top five tips of charitable giving include (1) making sure your charity is a qualified charity (2) taking advantage of your deductions (3) maintaining appropriate records (4) creating a legacy and (5) educating your children.

First, you want to make sure your charity is qualified by the IRS as a charity. The charity should provide you with the documentation if the status as a charity is unclear to you.

Secondly, when you contribute to a qualified charity, you are entitled to an income tax deduction based upon your income and the amount of the contribution. You can also set up charitable trusts that allow you to give stock, real estate or other property to a charity while you continue to benefit from the asset during your lifetime. These trusts are referred to as split interest trusts because the charity and you benefit.

In addition, you must make sure to maintain adequate records. Regardless of the amount of any contribution, you must substantiate that it was made. This can be done by retaining the canceled check, bank record, or any written communication from the charitable organization that shows their name, the date, and the amount of contribution.

Also, your charitable giving could serve as your legacy. If you have a lifetime passion or interest in something, then you could give to a charity that might represent that passion or interest. For example, some people may have been photographers, artists or collectors. You could give your collection to a charitable organization in order to create or preserve your legacy.

Finally, you may choose to set up your own charitable organization. An individual or a family could set up a private foundation to give money to other charities. A private foundation can serve to transfer assets to the next generation. This is accomplished by involving the younger generation in the foundation’s administration, management, and grant making. Children can learn about and engage in philanthropy at an early age.



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Multiple Streams of Income Helps Create Wealth

When you think of estate planning, many are of the opinion that it is all about wealth. I remind people that it is all about your loved ones and you. However, if money is of interest to you then I thought I would share this video with you as you look to build your wealth for your loved ones. In today's economy and actually at all times multiple streams of income can serve as a safety net for you and your family. Enjoy the information.





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Incentive Trusts

Do you want to make sure your beneficiaries do not misuse their inheritance? Well, your trust could be drafted in such a way to provide incentives to direct your loved one on the right path. When things go as you direct, money is earned. When they fail to meet your expectations, the money is held until they do. This can be for anything that you feel is important.

We all may know situations where children have encountered problems including drug, alcohol or gambling addiction. How can that be handled when you are no longer available to help them? The Incentive Trust can be there for them to get the necessary help. It can also serve to teach children to be fiscally responsible. If they "earn" their own money, the trust could match their earnings. The options are as limitless as the situations that exist.

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Selection of Trustee - Final Note

The last couple of days I have discussed the importance of making the correct selection of your trustee. A trustee serves in a legal capacity as your fiduciary. There are laws specific to the role and responsibility of fiduciaries and laws applicable to trust management. Today, we will address the Pros and Cons of selecting a bank or financial institution as your trustee.
PROS:
(1) A financial institution has longivity. Unlike individuals, you do not have the issue of incapacity or death.
(2) A lot of time does go into training and education in the specific area of trust and financial management.
(3) Generally, you have more focus attention to one area. There are departments for each area of expertise with individuals trained in that area of focus.
(4) Financial institutions have the resources to deal with complex matters and serve to be the deep pocket if anything should go wrong with trust management.
CONS:
(1) Financial institutions are subject to merger and closure as we have seen over the last 18 months.
(2) The fees charged by financial institutions are of significant concern to many.
(3) You have to have resources at a certain level in the trust for a financial institution to become your trustee.
(4) Beneficiaries can find working with a financial institution to be a little impersonal with specific individuals handling the trust subject to change at any time.

So, for choosing a trustee make sure you do your homework thoroughly. Seek professional guidance in the selection process. Leave your comments here or contact us at http://www.ythlaw.com/

Selection of Trustee - Continued

Yesterday, I discussed the pros and cons of selecting a family member or close friend as trustee. Today, I will look at the pros and cons of selecting a professional advisor as your trustee.

As discussed, the selection of those to serve in a fiduciary capacity is a very important decision and serves to protect your assets and distribute them in the manner you would desire. A professional advisor could be an attorney, accountant, insurance agent or financial advisor.
The PROS for selecting a professional are:
(1) they understand the laws under applicable to fiduciaries and trust management
(2) they have served to provide you guidance in your estate affairs and therefore understand your specific wishes and would be in a better position to deal with conflict among beneficiaries
(3) in addition to the laws governing those acting as fiduciary, generally their profession, ie attorney, has an additional code of ethics and professional responsibility imposed upon them when acting on your behalf.
The CONS are:
(1) there is a cost for professional advisor's to serve
(2) they may not have the back up staff to serve if the professional advisor should become incapacitated.

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Selection of Trustee

Last night I attended a seminar on the Selection of Fiduciaries & Advisors. I thought it would be informative to share the important highlights of this meeting over the next few days. Your fiduciaries & advisors generally fall into 3 major categories. They can be individual family members or friends, professional advisors or corporate/institutional advisors.

Today my discussion will center on the selection of family members or close friends as trustees. Any one who serves as a trustee does so in a fiduciary capacity which means the role is govern under the laws pertaining to fiduciaries. What are the pros and cons of selecting family members or close friends as trustees?
PROS:
(1) Generally the fee for the service is nominal or none. Family members are often times beneficiaries under the trust and so therefore would not also charge a fee for managing the trust. Family friends agree to serve to be of assistance and may only expect to get reimburse for expenses incurred on behalf of the trust.
(2) Family members and friends know the beneficiaries and understand the needs. They understand the dynamics of the family relationship and the intent/desire of the person creating the trust.
(3) Knowledge of the trustworthiness of family members or friends is known through experience. The person creating the trust will choose family members or friends who have already proven their loyalty and trustworthiness.
CONS:
(1) Family members or close friends probably will not be familiar with the laws applicable to Trust or Fiduciaries. They are govern by these laws and must become familiar with them so that they are not in violation and subject to fines and penalties.
(2) Sometimes the closeness to the beneficiaries can cause a conflict and make it difficult for the trustee to make the tough/unpopular decisions.
(3) What if the trustee were to become incapacitated or die? This is always a potential issue for longer term trusts with individuals as trustees.

Understanding the pros and cons will help you decide how you might want to proceed with appointing individual trustees. Tomorrow, I will discuss having professional advisors as trustees. Leave your questions or comments here or contact us at http://www.ythlaw.com/

ESTATE - What Does it Mean?

Yesterday I received a call from an adult child of one of my 80 year old clients. My client is in great physical and mental health. She understands the importance of getting her affairs in order and further understands that with 4 children she needs to provide direction on the handling of her affairs.

Well, her son's concerns were expressed as follows:

"My mother does not have an "estate". There is nothing "complex" about what she has. Therefore, she does not need any "estate planning". Her children can take care of her affairs for her."

My answer to him was to help him understand just what an "estate" is. So, I said:

"Your mother's "estate" is not just about tangible things but the intangible as well. On the tangible side, she has (1) her home which is very valuable - great location, well maintained and no mortgage; (2) her original art work and (3) some antiques. On the intangible side, she has (1) one child in transition after a divorce and needs to have a place to stay with her children; (2) her other children whom she would like to leave an inheritance; (3) her passion as an artist that is also a part of her legacy. More importantly, your mother would like for her wishes to be known and not have her children in disagreement over the handling of her affairs."

I encourage families to sit down and discuss these matters because he represented what could happen if there are no plans, children second guessing the wishes of their parents. With an estate plan there is no second guessing.

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Martin Luther King Holiday

The Martin Luther King Holiday is a day of remembrance and service. We remember the man who dedicated his life to equality, to basic human rights. The nation recognizes his contribution and sacrifice by not just taking a day off but taking a day on for volunteerism. It is one of many opportunities to be charitable to those less fortunate. We salute those who regularly give to others in need and we use this day to teach our children the importance of giving.

When I think of legacy in its broadest sense, it is about those intangible things we leave behind. The legacy of Martin Luther King is one of Peace, Social Change, Justice, Non-Violence and Equality. Each of us has a legacy big or small that makes a difference for the next generation, whether it is your nation, your community or your family. Think about it!! Plan for it!! YOU MATTER!!

Celebrate this day in your own way to honor one man's legacy!!!

An Earthquake's Unimaginable Devastation

"Walking the streets, all I was seeing was dead bodies" was the report of a survivor. It is devastation in the poorest country at the worst time in the history of the world. The earthquake has destroyed what infastructure may have existed in the Haitian city of Port-Au- Prince. Thousands, maybe hundreds of thousands, have died from the earthquake that shook Haiti on Tuesday, January 12th.

The pictures, the stories, the men, the women, the children, the lost of human life moves me to do whatever I can to help. Even with this blog to express my thoughts to others who also might want to help. If you want to make the world a better place... This act of nature requires us to respond with our humanity. Those who still live (the injured, the hungry, the thirsty) are stretching out their arms to us, to the world for help.

Let us all be moved to action at this time of unimaginable need.

Your Taxes - What to do in 2010

This is an interesting year with the repeal of the federal estate tax and the unknown of what lies ahead. Those in the estate planning business and consumers alike just wonder and hope that certainty is around the corner. But, what should one do until we turn that corner? There is lots of commentary out there and I am always browsing, reading, researching and myself opining.

I thought this CBS Moneywatch.com article was informative and thought I might share it here. Learn about ways to at least lower your taxes this year as we all wait for our economy to improve.

http://moneywatch.bnet.com/retirement-planning/article/lower-your-taxes-in-2010/374073/

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A Friend's Death

I pause for a moment to reflect on a friend's recent death. She was not a colleague, client, co-worker or childhood friend but among those wonderful individuals you meet during your lifetime for no apparent reason other than your paths cross and a lifetime connection is made. She was a 2 time cancer survivor and had learned to really cherish each and every day, though she was one to live her life fully before experiencing any illnesses. She was ahead of herself in many ways, advocating advancement in technology among organizations, cities and countries long before some technological changes became standard operating procedure. She was a leader among leaders with her own genuine style. She could be a mover and shaker while attending who's who events or while being a "lazy lima bean" at elite retreats where others crossed deserts, climbed mountains, rode rapids or jumped out of planes.

Carole I. Smiths' legacy will live on in her daughter who has her own unique way of addressing those issues her mother found important. I have watched the relationship among mother and daughter and realize that their relationship and what Carole leaves to her daughter is what I seek to accomplish in an estate planning law practice.

I pause and give my condolences to the family.

Durable Power of Attorney

I received a call the other day from the daughter of one of my clients. Her parents have been my clients for about 5 years. The wife, an avid swimmer in her late 70s, was the caregiver of her husband who now has advanced dementia. Unexpectantly, the wife died and with her the location of the power of attorney for her husband which had been removed from the safety deposit box since she had been using it given his illness. The daughter was the alternate agent.

In my practice, I counsel my clients to maintain their documents in one of 2 places, a safety deposit box or a safe at home that is waterproof and fireproof. My clients had followed that advise. With the Durable Power of Attorney, also referred to as the General Power of Attorney, it is important to have more than 1 original, 3 is preferable. Fortunately, for my clients' daughter, I maintain one of the 3 originals. Without the power of attorney, the daughter would have had to institute costly guardianship procedures in order to handle her father's affairs. Her parents' advanced planning alleviated that expense.

It is important to seek legal advise and guidance because it is not just the preparation of documents that is important but the details of the process. Our experience dictates the importance. Leave your comments here or contact us at http://www.ythlaw.com/

Federal Estate Tax 2010 Repeal

I can recall when I started my solo estate planning law practice in 2004, the thought was that Congress would soon address the impending 2010 repeal of Federal Estate Tax law. Practitioners and their clients needed clarity to plan. Would there continue to be a federal estate tax and at what levels would it apply?

Well, it is 2010 and Congress did not enact an extension of the estate tax before December 31, 2009. Accordingly, there is now a one-year repeal of the estate tax for 2010, subject to future Congressional action that might reinstate the tax at any time which makes advice and planning a guessing game.

It's very important to be aware that this repeal is temporary; the entire law "sunsets" (expires) after December 31, 2010. This means that the tax structure as it existed in 2001 will take effect again. Therefore, in 2011, Federal estate tax will be assessed on property valued in excess of $1 million with a maximum tax rate of 55%.

Very few people have estates large enough to be affected by the rules recently repealed but many more will be affected if it reverts back to the 2001 standard. Leave your comments here or contact us at http://www.ythlaw.com/

"Baby-Oil Heiress" Dies

I often speak of our legacy, creating one and passing it on. Today’s clients want to know that the wealth they leave their children is wisely used to benefit their heirs and not something that ruins their incentive to work or achieve. Wealth should be an opportunity. It should not serve to cripple and stifle initiative, creativity, and productivity. The tabloids often follow those of inherited wealth leading meaningless and sometime destructive lifestyles. Ensuring that their heirs have more meaningful values is of critical importance to clients who realize that giving their children substantial wealth may not truly benefit them in the long run.

One can only wonder whether the inherited legacy of wealth had unanticipated consequences for Casey Johnson, age 30, whose death was reported yesterday.

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Wills Help Avoid Crimes

I was watching Law and Order - Criminal Intent and, once again, was reminded of the importance of having a Will. This episode addressed estate fraud. When a person dies without a Will, someone has to be put in charge of the administration of the estate. That person is determined by the legal system. Sometimes there are opportunities where the system fails the deceased persons and in this episode such was the case.

There was pilfering of a number of estates while assets were held under the protection of the state. The system failed because of the criminal intent of a state employee with access. With no direction provided by the deceased persons via a Will, their assets languished within the system providing ample time and opportunity for thievery. Clearly, this was not what the decedent intended for their assets. However, failing to take that important step in creating a Will a criminal benefitted from the persons' estate.

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Self-Discovery through Estate Planning

With each New Year, we open the door to new possibilities. Our dreams and hopes for the future are refreshed. I continue to advise everyone that the estate planning process requires that you assess your life now. At our firm, we work to help you identify your assets (traditional or nontraditional), determine your beneficiaries (family or otherwise), and control when and how your assets are distributed.

Estate planning provides you with a way of addressing your needs while you are living and developing a plan that expands beyond your lifetime. It challenges 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. During this process, it may be the first time that you plant an idea of your purpose that can begin to germinate into your legacy. That is what is so exciting about estate planning. It is what you make it and we help make it a special and important journey for you and your family.

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Happy New Year!!!! Top New Year's Resolution!!!

It is 2010 and we can take the time to reflect on the past and plan for the future. So, what should be the NUMBER ONE New Year's Resolution? As we all now know having a will to reflect your specific wishes is important to you and your loved ones. 2010 is the opportunity to do what should have been done.

My suggestion is that you first write it down as a "to do", "goal", "objective" or whatever name suits your fancy. Second, get at least 3 recommendations for an estate planning attorney from your friends, an estate planning council or local bar association referral program. Third, call each recommendation to interview over the phone. Fourth, make a choice, set an appointment and make the visit. Your estate planning attorney will take it from there.

If you live in Pennsylvania, I can be listed as one of your recommendations. I look forward to your call and helping to make your decision easy. Leave your comments here or make that call today!!!!

2009 In Review

As the year 2009 comes to a close we reflect on estate planning:

In the news:

We learned from the deaths of many notables the importance of estate planning to all. How important it is to have a will and one that is up to date. The death of Michael Jackson, Farrah Fawsett and Senator Edward Kennedy all reflected different aspects of estate planning. See prior blogs on these issues starting back in July.

Top Blogs:

And the top blogs for 2009 are:

1/15/09 - 10 Reasons why you should have a will

1/27/09 - The 10 Hottest Estate Planning topics

2/9/09 - Hiring an Estate Planning attorney - 10 things that you should know

7/10/09 - Michael Jackson - 5 Estate Planning Lessons

7/22/09 - Planning for Non-traditional families

8/13/09 - Estate Planning - How do I get started

8/24/09 - Irrevocable Trust - When to Use

9/29/09 - Costly Estate Planning Mistakes

11/10/09 - Facebook, My Space, Linked In, Blog, Oh My

11/24/09 - Great Review o f My Book

12/19/09 - Tax Tips for your 2009 Taxes

Pick your top news stories and blogs. Contact us at http://www.ythlaw.com/

The Lost Symbol

As we look towards another day off, think about how you might spend that day. Whether you are with family, friends, alone in deep contemplation or meditation, 2010 is a time to refresh and renew.

I just finished reading "The Lost Symbol" by Dan Brown who wrote "The Da Vinci Code" which sold millions and had all of us thinking about the ramification of this fictional account. Well, in my opinion he has done it again. Throughout time secrets, codes and unseen truths have been held by mankind and passed down for generations. What is most revealing in the book is how those secrets, codes and unseen truths are actually available to all and revealed in the most prominent places. Read the book and share your comments here. Dan Brown's estate plan should address the manuscript of his books and the continued royalities that will surely generate from these best sellers.

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Hopes and Aspirations Captured Through Estate Planning

I was speaking before a group the early part of December about estate planning. I was telling the story of a man whom I had never met but through whose legacy I would never forget. His story was quite compelling. See my post of December 18, 2009.

In any event, a couple weeks after my presentation, one of the participants called me to let me know that I had made him think for the first time about his business and personal estate affairs. Though he thought he never had much of an estate, he realized through my presentation that he did. It was not about wealth and money but about his loved ones and his dreams for their future. From my presentation, he was made aware of ways to capture his hopes and aspirations.

Do you want to know more about estate planning and how it is not all about wealth and money? Leave your comments here or contact us at http://www.ythlaw.com/

An International Legacy

We had a wonderful holiday and are looking forward to the New Year. Of course the news on Christmas Day of the terrorist's attempted bombing was shocking and disturbing. Our need for continued vigilance in this area is apparent.

It reminds me how important it is that our personal legacy extends beyond our immediate family needs and interests into what is happening in our nation and in the world. In fact when we do extend our focus outside our personal circle, we are helping our selves and our families. What happens in Nigeria, London, Yemen affects our nation, our community. What happens anywhere in the world is of importance to all of us given the globalization of economy, technology, communication, and the list goes on.

So I continue to encourage us all to look at how we can address not only during our lifetime the issues impacting our nation and world but how can we create a legacy of an international dimension through estate planning. Leave your comments here or contact us at http://www.ythlaw.com/

Merry Christmas and Happy Holidays

We are up very, very early this morning with our 8 year old daughter who is now cooking the morning breakfast, with just a little help from Dad. She is quite the independent one and has started her own traditions for Christmas morning, as we also get ready to visit Mommom and Poppop, 3 hours away. Fortunately, we do not have to dash through the snow, just a little rain washing away the remaining snow from last weekend.

Creating memorable moments during the holidays and throughout the year is what life and living is all about. Passing on those traditions from generation to generation is what your legacy is all about. So, as we move into 2010 think about what the moments and traditions you are creating for your family and loved ones. Are they full of meaning; making a difference by helping others you do not know who are in need, sharing your wealth and good cheer with those who might not have anyone during the holidays, remembering to take the time to say I love you today and always to those close to you, and being the human being you were placed here to be now and forever.

Happy Holidays to all and to all a wonderous New Year!!!!

Tax Tips for your 2009 Taxes

With the first day of winter (12/21) still 2 days away, we watch the falling snow of our first winter snow storm in the northeast. I am reminded that the end of 2009 is fast approaching and it is time to think about our taxes. Since estate planning includes protecting and preserving our assets, how can we save on our taxes and thus maintain more of our money.

Here are my 5 things to consider:
1. Start early gathering tax information, including receipts. You can loose lots of money with last minute tax preparations.

2. Do not forget those deductions - property taxes; mortgage interest; points; home improvements for medical care; tuition and fees; and, moving expenses for that first JOB.

3. Do not forget those credits - first time homebuyer; and child and dependent care care.

4. Make contributions to your IRA.

5. If you have not already done so, invest in a financial management system so that throughout the year you are organizing and tracking your expenses to see where you can save and thus increase your net worth. At the end of the year, with the touch of a button, your tax information is available to you.

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Benefitting Others Through Estate Planning

We all understand the importance of charitable giving. We benefit others through our philanthropy, giving and humanity. In return it encourages others to do the same.

When we first moved to Washington Crossing, Pennsylvania, we purchased a home next to land under preservation for open space. We have been able to enjoy the trees and wildlife. We soon found out that this land had been donated to the community along with land where the elementary school is built that my daughter attends. It was part of the legacy of man who started his life in America as a poor immigrant. His legacy has touched the life of numerous children and many, like myself, in the community that he grew to love.

Just like this one man we, you and I, can benefit those we will never know through our giving. And how best to do that then through our estate planning. I have looked at my charitable giving during my lifetime and selected those organizations that will continue to benefit when I die.

Think about your life and how you might continue to help others or even start to help others by leaving a bequests in your Will. Leave your comments here or contact us at http://www.ythlaw.com/

Insurance - Review Annually

DID YOU KNOW that insurance is a very important part of the estate planning process. I was reviewing (something everyone should do once a year) our insurance policies to update the beneficiary designations. It just reminded me how insurance helps pay off debts so your family can continue to enjoy their assets whether a home, a car or vacation property. It also provides money to families devastated by a death. It can even address the debt of business ventures.

AND WHAT THAT MEANS your estate (not your family) is responsible for paying off ALL debts before ANY distribution is made to a loved one. You do not want your estate to be bankrupt by your debts, business or personal.

SO MAKE SURE in your buisness affairs and personal affairs, you plan for incapacity and death because your debts do not go away just because you do!!!

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Your Pet And Estate Planning

We recently got a cat, Sneakers, for our daughter. It made me think about how estate planning covers everything that you have, including your pets. So, what happens to little Sneakers if something happens to us. Technically, she "belongs" to our 8 year old daughter but I do not think, in fact, I know the guardian for our daughter has not also agreed to take on the responsibility of a cat. Given allergies of the guardian's own children, it would not be a possibility to even address. So, what happens to Sneakers, the alternative will be to "give" her to another family member so that my daughter could regularly visit "her" cat. That seems to work as an option because we do have animal lovers to choose from.

BUT what if you do not have that option. If there are no family or friends available to take your pet then you could either (1) fund a Trust for the care of your cat; (2) look up places that would take your cat; (3) find cat adoption services or (4) leave money to a family or friend to take care of your cat. Any of these options should be addressed in your Will to make sure your plan is followed.

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"Today, It's Your Legacy"

I can hardly believe it is December 14th already. December is going way too fast. But, isn't that life sometimes, especially as we get older. I can remember when I was a child that time seemed to stand still and how I wished it would go faster. Be careful what you wish for!

Well, yesterday I did the taping for an internet TV start-up. My program "Today, It's Your Legacy" is all about people because estate planning is all about people and the life they are living. Everyday, ordinary people are doing ordinary things with extrordinary results. They, however, fail to realize how uniquely awesome the legacy they are creating is. My show will explore the legacy people, just like you, are creating everyday. It will help all of us realize how estate planning can work for us, our families and our communities.

I am excited about this new beginning and will keep you posted regarding the launch. First it was writing the script, then it was taping the pilot, what is next? Stay tuned. Leave your comments here or contact us at http://www.ythlaw.com/

American Doll - Collectibles for your Estate

My mother called me today and asked whether I had started my holiday shopping. She knows that shopping is not high on my list of things I like to do so that was her way to tell me to get busy. It did make me go online and order a doll for my daughter. She asked for an Addy American Doll. We really try not to get into the commercialism of the holiday. It is about being with family and sharing the reason for the season. Helping others and giving, not receiving, are what we "try" to stress.

BUT, in this case, my daughter has made an interesting connection for me. First, she has already read all of the Addy books. She was telling me Addy's story. Addy is the American Doll that represents that part of American history that we all would like to think never happened, slavery, and would hope has ended, racial discrimination. My daughter is 8 and I thought it was very interesting her discussion of Addy's plight. The Addy books have become a learning opportunity and a way for me to address this part of our history in a more concrete way with her.

Your estate planning may entail reflecting on the plight of your ancestors. Because of or in spite of those historical circumstances, you may have amassed a fortune that you might use through effective planning to eradicate the effects of. Maybe the Addy doll will serve as a collectible that my daughter might look back on as what allowed her to emerge as a beacon of hope that justice and equality for all people will be realized for her generation. Or maybe not.......

Happy Holidays. Leave your comment here or contact us http://www.ythlaw.com/

The Legacy of Internet TV

Today was an interesting day. I wondered what I would write about since I had decided to let December be on how estate planning is about life and living. What experience did I have in my day that demonstrates this aspect of estate planning?

I spent most of my day reviewing 2 documents and writing a script for a new program that I hope to bring to TV, internet TV. I will keep you posted on that venture and invite you to the celebratory launch. In any event, I had my sister critique the script. She holds back nothing and that is why I rely on her. She is just not going to sugar coat something or say what she thinks you want to hear. Basically, after spending the good part of 2 days immersed in writing this script, I had to go back to the drawing board as a result of her comments. I just sent her a revised script before writing this post. Let see how I do.

If this program should ever go anywhere and it will, then it will be these moments - developing the script; receiving feedback; revising the script - that will form a part of the legacy of the program, the back story, you might say. I want to take the time to document that and not just breeze through it. It is not always the end result that is important. The getting there has just as much value.

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

Your Purpose May Find You

Let me tell you a story about a woman I met who says in her own words, "be careful what you ask for" and "she is doing what she has to do."

Well, this woman lost her son-in-law to cancer. Her step-daughter was left to raise triplets, one with cerebral palsy. At 55 the woman was able to retire from the government but choose to find another job because she needed something to keep her busy. She began to wonder what her purpose was in life. She felt her life did not have meaning. Within a couple of years, she lost her husband to cancer. One night while her step-daughter was visiting, her step-daughter had to be rushed to the hospital. Her step-daughter never left the hospital. A brain aneurysm ruptured and she died.

"Be careful what you ask for." This 58 year old woman was the only one left for these 5 year old triplets which she has since adopted. When you look at her with total awe and admiration, she says "she is doing what she has to do". Her purpose found her.

Estate planning will be very important for her, especially now. Provide us with your comments or contact us at http://www.ythlaw.com/

Your Sport - Your Legacy

Good Saturday Morning. This is the first Saturday in December and I am sure the malls are packed. For a person, like me, who does not like to shop, the mall is the last place I want to be today. Fortunately, there is nothing that is requiring me to make that visit.

So, today I attended my daughter's basketball game. Parents and siblings scream as their little darlings dribble, past and shoot. I am among the screamers. As my daughter concentrates on her game, I notice every once and awhile she glances over to make sure I have not missed her daring feat. She does have skills and I'm not just being the pride parent, though I am that.

In this case, I am assessing how I am passing on my legacy to my daughter. Remember estate planning is about life and living. Though I never played basketball as a child, my mother played through college. I have shared pictures of "Mom-Mom" leading her team to victory and through my prodding my mother has shared those experiences with her granddaughter. It has not been my mother's manner to talk about her past. While my dad, on the other hand, has written 4 books about his life and I talk about everything, all the time because it is our legacy to share and to enhance the lives of those we love.

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

Create Your Legacy - Live the Life You Were Meant to Live

This morning I decided I would do Yoga and Meditation. The best time of the morning to do Yoga and Meditation is just before sunrise. If you are like me, once my day begins there is no time for any type of exercise or even relaxation. So if you are so inclined to forego a bit of sleep and get up early, you will find it to be invaluable.


So what does Yoga and Meditation have to do with estate planning or even your legacy. In a nutshell, everything. Life is all about change. Yoga teaches flexibility and if one is flexible in mind and body, your ability to deal with change is enhanced. Meditation, like Yoga, focuses on the breath, your life source. Thoughts will come and go and not take control of you as long as your focus remains on the breath. You clear your mind of the chatter (thoughts) in your head and you can begin to feel a real sense of peace. All of this is important to living a life that creates a legacy that one might wish to pass on in estate planning. But the most important part is that you are living a life that is worthwhile to you.


Yoga and Meditation are not the only way to obtain this state of clarity about our life, our purpose and our legacy. Share ways that have helped you or contact us at www.ythlaw.com

Delaware Canal - Charitable Giving

This morning I was walking along the Delaware canal in Washington Crossing. It is a smooth even trail with historical significance but this morning, for me, it is all about the wildlife. The Blue Herring gliding along the waterway just as I approach his private perch. The mallards, the colorful males and their mates, floating along the water's edge. Squirrels rustling dry leaves as they scamper from the shore up the nearest tree. A black snake slitters across the canal path disappearing into the murky waters. Nature's bounty available for me to enjoy on a morning walk.

But, I can not take this natural beauty for granted. Will it continue to be here for me to enjoy and for my children? Then a thought came to me. I can make a difference in the preservation and improvement of this canal. If it means something to me, I can make that difference now and beyond my lifetime.

So, here is what I did. Today, I joined the friends of the Delaware Canal. And you can too, at http://www.fodc.org/

Let us know how you are living your life now and how that living impacts your estate planning here or contact us at http://www.ythlaw.com/

December is about Estate Planning

If you are like me, December has arrived way too fast. I was just enjoying Thanksgiving and now the shift is to Holiday gift buying and the like. Well, this season I am creating my own shift. I believe that estate planning is not about death and dying but about life and living. I want to demonstrate it not only in my business practice but in my personal actions as well.

So, I invite you on a December journey with me. I am going to share with you each day an experience in life and living that impacts estate planning for me and could do the same for you.

Stay tuned and feel free to share your life and living experience here or contact us at http://www.ythlaw.com/

Your Legacy is Your Story

Your legacy is the story of your life. You can document as much of it as you care to share at any time. What is important is that you are here for a reason, your life has purpose and you can share your purpose to those who need it most.

What I have found is that most of us fail to realize that we can and do create our own reality in many ways. We can be proactive, reactive or just plain inactive in the unfolding of our life's story. 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.

Leave your comments here or contact us at http://www.ythlaw.com/ to begin your self-discovery through our estate planning process.

The Three Important Steps to Any Plan

It is a very windy day as I write this blog entry. Today my thougths are about the importance of planning. Whether estate planning, retirement planning, financial planning, long term care planning or personal and business planning, there are 3 important steps. You have to (1) access where you are, (2) determine where you would like to be and then (3) write down the strategies and action steps to get to where you want to go.

Along the way, have a great time because each and every moment is creating the life story that you want to leave as your legacy.

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

Thanksgiving - An Estate Planning Moment

Hope you had a wonderful and enjoyable Thanksgiving. This is the Holiday when families gather around the table and enjoy lots of home cooked specialty dishes. During the preparation, with parents passing along traditions to their children and grandparents sharing family stories and anedotes, is the time to discuss the family legacy and how it can be passed on.

Yes, Thanksgiving is an estate planning moment. All of the important people are generally present to ask whether they can serve important roles in your estate plan. Your executor, your trustee, the guardian of your children when you die are sitting right next to you at the dinner table. Your agent to assist during any incapacity is carving the turkey.

Why not check this to do off of your list at Thanksgiving? You and your family will be glad you did. Leave your comments here or contact us at http://www.ythlaw.com/

Bankrupt, but why?

This is just unbelievable to me. I was reading statistics regarding Players for the NBA and NFL. Sixty percent (60%) of NBA players are broke within 5 years of retirement. What is even more startling is that seventy-eight percent (78%) of NFL players are bankrupt within only 2 years of retirement. How does this happen? Are all of these players just getting bad advise? Are they getting good advice and just not listening or following it?

I just think we have to start teaching people basic life skills early in the education process. Too many people just do not understand money and how to handle it at a very basic level. You do NOT have to be rich to take advantage of how the estate planning process can help you protect your money. In making sure that those you love are taken care of upon your death, the estate planning process makes sure you have money to leave. So while you are living and in your retirement years, you can look at putting money and real estate in a Trust for your benefit and others or consider other estate planning options.

If you know of a NBA player or NFL player that could benefit from our services, leave a comment here or contact us at http://www.ythlaw.com/

Great Review of My Book

DISCOVERIES - A KIRKUS review writes....

A valuable primer that demystifies estate planning

Estate planning is a legal step many know they must take as they get older, but few consumers understand it. Thankfully, estate-planning attorney Taylor-Hachoose has written a clear, concise overview of the various elements of estate planning, providing a solid foundation for taking action. The author grabs the reader from the outset. Taylor-Hachoose covers wills, health care power of attorney, durable power of attorney, living and testamentary trusts and other estate-planning vehicles. She also talks about the probate process, inheritance taxes and elder-law issues. The author admirably explains each aspect of estate planning in simple, uncomplicated language and provides helpful illustrations of the importance of advance planning. She teaches readers about case subjects “Eve and Bob” and their only daughter, Julia, “who at thirty-six still cannot quite make it on her own.” The estate plan of Eve and Bob “includes a trust for the money left for Julia, who is not fiscally responsible enough to manage the money herself.” This and other scenarios in the book are especially helpful in demonstrating estate planning in action. Near the conclusion, Taylor-Hachoose provides a worksheet to help facilitate information gathering in preparation for estate planning.

Readers should come away less intimidated by the process.

DISCOVERIES - A KIRKUS review

We would love to have your review of the book. Provide your comments here or contact us at http://www.ythlaw.com/

Publicity Rights Are a Valuable Asset

I was up early this morning and thinking about what I would blog on today. I really did not have a particular subject for today. AND THEN it came to me, I had a question regarding publicity rights upon a person's death. Yes, assets include publicity rights. Whoever inherits your estate will inherit the publicity rights. You could even leave such rights to anyone.

Let's just say at your death, your assets were slim to none. Let's further say that your death resulted from you saving the lives of millions by diverting the actions of a would be terroist. You are proclaimed a hero and, in an instance, your picture is all over the news, internet, billboards, in essence everywhere. You are NOW famous, a celebrity. If someone wanted to use your image to promote anything, then they would have to obtain permission from the heirs of your estate. Your heirs could even hire an agent to manage those publicity rights and make even more money from what was a "slim to none" estate.

I read an article about this recently that pointed out that celebrities can make serious money after they die. It was reported that John Lennon earned $44 million in 2007; Tupac Shakur $9 million. Anytime a company uses the image of a dead celebrity—say, in an ad—whoever owns the publicity rights can get paid. Dead celebrities’ images are used to sell board games, fragrances, T-shirts. Serving as the agent of dead celebrities, whether for movie, music, or just publicity rights is big business.

So, understand your worth and make sure those you love benefit from that worth. Leave your comments here or contact us at http://www.ythlaw.com/

What happens to email when you die?

Let's add email to our discussion of social media. Our "assets" are more varied in this technological, multimedia, socializing generation and I only see it expanding. I can only stress, as I research this new emerging phenomenal in estate planning, that it is best if you state in your Will what you want to happen to YOUR creations whether on Facebook, MySpace, Linkin, or in your email accounts. The company policies vary for those that even have one at all. Let's explore a few:

Hotmail - has a policy of deleting email accounts if they are not touched for 270 days. If you die, your next of kin would be able to access your account within that period by proving their identity and supplying a death certificate.
Gmail - will also allow the next of kin or executor of estate to apply for access to a deceased user's email account. However, they need more identification than Hotmail. The person would have to prove their own identity and supply a death certificate as well as proof of an email conversation between them and the deceased. Gmail does not delete the deceased user's account, but the next of kin could choose to do so after gaining access to it.
Yahoo! - will let the user's next of kin ask for the account to be closed, but will not give them access to it.

All internet users who want to be sure their email and other online accounts are accessible to their legal heirs should plan an offline process for such access as part of their estate planning process. Leave your comments here or contact us at http://www.ythlaw.com/

Who controls your MySpace when you die?

Previously, we discussed Facebook's policy upon the death of its users.

MySpace has no set policy when it comes to the profiles of deceased users. It seems MySpace would handle each incident on a case-by-case basis which would require some sort of notification from the deceased user's family regarding the wishes of the family if the user had no specific indication. MySpace will not allow anyone to "assume control" of the user's profile, however it won't rule out giving families access to the user's private data. MySpace does not delete profiles after periods of inactivity, but will remove a deceased user's profile at the family's request.

If that does not provide you with the comfort you need, start your estate planning today. Leave your comment or contact us at http://www.ythlaw.com%20t/

Who controls your Facebook page when you die?

Sometimes I ask questions that I want an answer to. In the case of social media and estate planning, I find it really intriguing the questions that can be raised and how many of them will have no answers. Social networks are so new that we will be making new laws as we get more and more into this new form of interaction.

Well, I did research our question posed yesterday regarding Facebook. What happens when you die? Per Facebook's policy for deceased users, they memorialize the deceased person's account. This removes certain more sensitive information and sets privacy so that only confirmed friends can see the profile or find the person in search. The Wall remains so that friends and family can leave posts in remembrance.

Now that sounds all well and good but what if your family or friends want to remove your information. Should they not have the right? Who is in a better position to decide, Facebook or the family? In my legal opinion it would be the executor or administrator of the estate who should make that call. They are the ones in charge once you die. You can even make that call more directly by providing for your social media activity in your Will. What do you want to happen, now that I have you thinking about it? It's your call!

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

Facebook - What happens when you die?

Many of us are on Facebook and even more are joining everyday, creating a community with individually unique personas. Many people have developed significant followings which, in some cases, translate into profitability in other areas. So, what happens with all that you have created in Facebook when you die?

There was a specific case involving the death of a Facebook user. Obviously, there are many Facebook users who have died but this particular one resulted in litigation and therefore provides some guidance to us all on what happens on Facebook.

This case will be discussed tomorrow in detail. Follow the saga of social media and the death of the users.

Facebook, My Space, Linked In, Blog, Oh My

We have Facebook, My Space, Linked In, Blogs, Twitter and the list goes on. Well, let's take a look at social media and estate planning over the next few days to see just what we might learn.

Managing Your Social Media Websites After You’re Dead: There are many questions to explore over the next few days. Do social media networking sites have policies for post mortem users? What happens to our virtual identities when we die? Are company policies to delete inactive user accounts? Can a family member have access to the account password after the death? How private are your email accounts, myspace pages, linked in messages, etc. after you pass away?

Few free to add your questions to this list and let's explore the answers. Leave your comment or questions here or contact us at http://www.ythlaw.com/

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.

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

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.

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

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

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.

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

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.

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

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."

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

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.

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

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.

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

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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