Estate Planning Mistakes - Number Seven

If you want to make a gift to someone only if they should survive you, it must be clearly stated in the Will. One mistake that could happen is that a gift intended for a particular person could go to a totally unintended person.

For example, the Will states, I leave my shining little red corvette to my brother, John Doe. In some states, like Pennsylvania, if your brother does not survive you, then the gift could go to your brother's children. Your brother has 3 year old twin girls who clearly would not benefit from such a gift. This would not have been your intent. Therefore, you must make sure that you provide that a gift will "lapse" (not be given) if the person does not survive you.

Let experts help you with your Will and other estate planning matters. Contact us at http://www.ythlaw.com/

When Should You Name a New Guardian

As a baby, our child's potential is unlimited. As our child grows, they develop interest and talents. Maybe she will be a dancer, a rocket scientist or a teacher.

You may name a guardian and then later in your child's life realize that another guardian would be more appropriate. There are many reasons to change your guardian. Some things that may trigger this decision include:

1. The age of your guardian

2. The age and talents of your child

3. The location of your guardian

4. Other changed circumstances of your guardian

5. Other changed circumstances of your child

The main thing to remember is that like other parts of your estate plan, updating is very important. It is not a once and done process but as your life changes, your estate plan evolves. We can help. Contact us at http://www.ythlaw.com/

Your Children's Legacy

What is the legacy that you leave your children? The answer to that question goes a long way in determining your children's legacy. Each generation builds or not on the other generation. What makes the difference between generational prosperity and generational deterioration? The answer is planning, estate planning.

Prosperity is not always about money or financial wealth. Prosperity is also inclusive of happiness, well-being and fulfillment. For some, this is all that really matters. BUT, for any prosperity, one has to have a plan. Money, happiness, well-being and fulfillment, none of these happen by chance. Estate planning is the process of evaluating your "assets" - the tangible things you have (like money, a home, car, jewelry, etc.) and the intangible things that matter to you (happiness, well-being, productivity, fulfillment). After this evaluation or reflection, the estate planning process continues by looking at those who matter most to you - loved ones, other people, places or things.

When this process is donw with a professional estate planner, you make a difference in your children's legacy. Leave your comments here or contact us at http://www.ythlaw.com/

L'Oreal Heiress is Among the Top Richest Women in the World

Liliane Bettencourt, the 87 year old French heiress to the L'Oreal cosmetics empire, has attacked her daughter for questioning her right to donate 1.2 billion in gifts to a 61 year old society photographer. The daughter who stands to inherit the family fortune which includes 30% interest in L'Oreal has sued the photographer for fraud. Now the courtroom drama begins. With such a large sum of money involved, the lawsuit will involve not only the family fortune but politics, power and sex. Yes, it is an estate planning soap opera. As of this writing the trial has been postponed due to tapes made by the butler (yes, the butler did it) and leaked to the press that raises issues of foreign tax shelters and questionable financial transactions. One question asked during all of this is whether there will be any impact on the company, L'Oreal. Well, time will tell but probably the family and the company are separated enough to protect the company, financially, from this particular drama.

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Kagan Confirmation Hearings

Congress makes the laws, the President enforces the laws, and the Supreme Court interprets the laws. It seems simplistic and straightforward but it is not because the devil is in the details. This week we watch the confirmation hearings of, Elena Kagan, a nominee to the Supreme Court of our nation. The hearings are just as important as an election to congress or the presidency.

I am always reading court opinions that interpret tax laws affecting estate planning as well as opinions pertaining to specific estate plans that have been challenged by those affected by the plan in one way or the other. Just like the laws of the land, your will has to be written to withstand the scrutiny of a judge, maybe not a Supreme Court Justice but the judiciary may be called in to determine whether your will complies with the laws or if your intentions are clear.

Professional guidance is key when making your will. Leave your comments here or contact us at http://www.ythlaw.com/

Bucks County Estate Planning Council

There is so much information on estate planning. You want to make sure you are getting correct and up-to-date advice and guidance. In my opinion, seeking the advice of an estate planning attorney is of course one of the most important ways to accomplish this goal. There are also organizations, associations, groups, and councils that can provide some relevant guidance. The Bucks County Estate Planning Council is another important way to stay current in this area.

Even if you do not want to join the Council, you can attend the dinner meetings which always has a relevant estate planning topic presented by an expert in the field. You can get a list of the scheduled meetings, topics and costs from their website www.councils.naepc.org/bucks-pa/ and additional information about the Council.

The Council is interested in sharing information to those who need to know it. You can benefit from the professionals associated with the Council in ways to grow, protect and preserve your estate. Contact our offices at http://www.ythlaw.com/ for expert estate planning advice.

You Got To Dream Big

You have no excuse not to dream big. You don't need money nor an alloted amount of time. You don't need any one's permission nor their feedback. As the Nike commercials say, just do it or should I say "just dream it". A friend of mine shared with me one of her mottos "don't just face reality, create reality". So, you have to dream to make something that you want to happen in your life. You should not just wait for life to happen, because we all know it will.

When people say to me that they do not have an estate to plan, or assets to pass on, or a legacy worth preserving then I encourage them to dream. If they do, sooner or later, they will come to me with an estate to plan, assets to pass on, or a legacy worth perserving.

I found the young man in this video to be very inspiring. Watch and dream your big dream.

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.

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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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!!!!

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/

Rethinking Your Estate Plan - Question 5

This is the last question from the Money Magazine article that I have been quoting from over the last few days.

QUESTION 5. WHEN SHOULD YOU REVISIT YOUR PLAN?
"So you've constructed your estate plan. Congratulations! Now you can forget all about it and get back to watching the Cubs game, right? Not exactly. If we have learned anything from the past year, it is how drastically things can change. New tax laws get passed; fortunes get steam-rollered; grandchildren are born. Such changes can quickly render even the best estate plan obsolete. So be sure to contact your attorney every three years or so and ask whether your plan needs updating. Always call when you hear of estate tax changes that may affect you. That way, when the inevitable happens, you really can rest in peace."

At our firm, we stay in touch with you regarding new laws affecting estate planning. Every 3 years we contact you to determine whether there have been any life changing circumstances that should be considered in your estate plan. Let us stay on top of your plan for you. Leave a comment or contact us at http://www.ythlaw.com/

Rethinking Your Estate Plan - Question 1. Part B.

This is a continuation of from yesterday. These questions were from an article I read in Money Magazine that I thought was very good and may also be of interest to you.

1. Part B. DOES YOUR STATE HAVE A DEATH TAX?
"How much will you need? If you're a 65-year-old retiree and want to withdraw an inflation-adjusted $60,000 a year from investments (in addition to whatever you'll get from pensions and Social Security), you should have roughly $1.5 million set aside for yourself. Okay, let's assume you have enough for your retirement needs but less than $3.5 million. Giving while you're alive may still make sense - and not just because your recession-hit kids may need help now.
For example, your state may levy its own estate tax that kicks in at a lower level than the federal one. Or you may want to hedge against the very real possibility that Congress will eventually lower the estate-tax exemption back to, say, $1 million, where it was as recently as 2003.

If you're going to give, now is an ideal time to make a present of assets that have been beaten down but could appreciate significantly in the future. Say you own stock in General Electric. The price at the October 2007 market peak was $38.40; today it's around $12. As a result, you can give three times as many shares without triggering a gift tax today as you could during the bull market."

Do you have a comment? Feel free to contact us at http://www.ythlaw.com/

When do I begin to plan my estate?

I alway use my birthday as a time to review and reflect on important health, financial and personal matters. Making sure my estate plan is up to date is a part of this annual reflection. Well, today is my BIRTHDAY!!! I will of course celebrate the gift of another year of wisdom and experience while I take the time to encourage you to get something done that is important to you and your loved ones. I encourage you to get your Will done NOW but NO LATER THAN YOUR BIRTHDAY!!!

One question that I often get from audiences is when do I begin to plan my estate. The simple answer is now. If you are 18 or older and of sound mind then you can and should have at a minimum, a Will. Many people use certain triggering events to start their estate plan. this would include events like buying a house, getting married, having a baby or developing a particular passion. Why not use your BIRTHDAY as your triggering event. This is your day to take care of your health, financial and personal matters. Let one of those matters be getting you Will done.

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

Updating your Estate Plan

Timing is everything. Many people procrastinate getting their estate planning done. Even more people procrastinate in updating their estate plan. It is just as important to update your plan as it is to have one in the first place. The reason is that our circumstances change and our plan should reflect those changed circumstances.

There are many reasons that you might need to revisit your plan. These reasons include the birth of a child; the death, illness or incapacity of a loved one; moving to another state; receiving an inheritance or another significant financial change; divorce; marriage; and, change in the laws. I always tell my clients that generational wealth is not about luck. It is about planning and implementation.

Make a difference in the future of your children and grandchildren by reviewing your estate plan. If you need to make a change, call our office for an appointment.

The Economy, You and Your Estate

What does the current state of the economy mean to you? How will the economy effect your estate plan? This is the perfect time to revisit your estate plan. More than likely changes are warranted. If you have not done an estate plan, a will or powers of attorney, then you leave your family's future to chance. There may not be many things for certain at this time but one thing you can take to the bank, if you bank is still around, is without a plan of your own, your family suffers. If you want luck on the side of your family's future then plan now. Should you become incapacitated, your family is more prepared to handle your affairs. When you die, your family is more prepared to deal with the financial impact of your death. This economy has us all being more cautious and reflective of our circumstances. Talk to an estate planning attorney today!! You may be able to protect the assets that you have for the future you want for your family.

Hiring an Estate Planning Attorney - 10 Things that Matter Most

THIRD, you want to know what role the attorney plays in keeping your estate plan current. Once you have completed your initial estate plan, it is important that it is revisited periodically. You also want to be kept apprised of any laws that may impact your estate plan. Your estate planning attorney should have a process in place to address these concerns and explain to you any costs associated with changes and updates to your plan. It is important to most people that they can make changes to their plan. Knowing that changes can be made to any initial plan helps people to move forward in getting their estate planning done. What's keeping you from moving forward with either getting an estate plan or updating an old one? Blog about it here, we can help.