Estate Planning Mistakes - Number Twelve

Do not appoint the wrong Executor. An Executor is the person who handles assets and other matters when a person dies. Generally one might name the surviving spouse as the primary Executor and an older child (at least 18 years old) as the alternate Executor.

You want the assets of the estate protected. Make sure your Executor either has experience or knows how to hire the right professionals to assist with taking care of the assets. It is not always wise to name an institution unless you understand the fee structure and give an individual the authority to hire and fire institutions to manage your estate.

Contact us at http://www.ythlaw.com/ for expert legal and estate planning advice.

The Tale of Two Seminars

I have often stated how estate planning serves different needs. It is not a one size fits all and it is not for just one type of planner. For example, I am speaking on estate planning to 2 different groups today and promoting my book, Stop! What are you waiting for? Your Step-By-Step Guide to Estate Planning.


First, an association of ministers will be interested in how charitable estate planning can be encouraged amongst their congregation. Many people during their lifetime financially support their religious organization through some consistent giving arrangement. Their giving can extend beyond their lifetime if plans are made. If not, the giving stops when they die.


Second, an association of independent financial advisors will want to know how their clients' assets can be protected with estate planning. What are the latest tax issues affecting estates?

Though the conversations will be very different, the goal to take the time now to plan for the future is the same. Contact us at http://www.ythlaw.com/ or leave your comments here.

Cold Case

I was channel surfing last night and landed on Cold Case. Basically, each week the show takes a look at an unsolved case, aka cold case. It made me think about the estate plans not yet done. You should have a plan for your loved ones when you are no longer around. When we die what do we leave behind for the ones we love? Why leave everyone guessing on what you want or what you would have done if you planned?

When you leave your estate plan undone, it becomes a Cold Case for someone else to solve. My experience has shown that no investigator, detective, officer nor forensic specialist can figure out your intent.

So, don't leave your family with a mystery to solve. It is not a pleasant affair for anyone. Contact us at http://www.ythlaw.com/ and let the estate planning process begin.

Irrevocable Trusts

Let's say you have a home and you want to leave it to your children. What would be the best way to leave your home to them? Today, I want to address the Irrevocable Trust for that purpose. Over the next few days, we will look at other options and you can decide which alternative might work best for you.

Pros of the Irrevocable Trust:
(1) The Irrevocable Trust allows you to take property out of your estate. Therefore, for purposes of Federal Estate Tax, your home would not be an estate asset at your death and would reduce the value of your taxable estate.
(2) If you should need medical assistance in the future, the home would not be subject to recovery by the state if the trust held your home for at least 5 years.
(3) Upon your death, your children would not have to pay an inheritance tax when the home is transferred to them from the Irrevocable Trust.
(4) Unless your home is rental property, there would not be any income for income tax purposes. Therefore, though the Irrevocable Trust would have its own EIN for tax purposes, when income tax filings are done, there would be no income tax due.

Cons of the Irrevocable Trust:
(1) When the property is transferred into an Irrevocable Trust, there would be a transfer tax due. In Pennsylvania, that would be 6% of the fair market value.
(2) An Irrevocable Trust can not be changed and you can not serve as the Trustee.
(3) If your home is rental property, income taxes would have to be paid at the trust rate which is a higher rate than for individuals.

An Irrevocable Trust is ideal when:
(1) you are well into retirement, late 70s into your 80s and beyond
(2) your property is not income producing
(3) the transfer tax is not a problem for you to pay
(4) you want to avoid the inheritance tax

Consult with our office if you would like to more about this estate planning technique.