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.

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

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.

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

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!!!

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

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.

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

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.

Share your comments or contact when you hit the lottery at http://www.ythlaw.com/

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.

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

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.

Contact us at

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.

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

An Ambassador's Legacy

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

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


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

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

The Color Purple - What is your Legacy?

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

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

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

The Five Year Look Back - Keeping Assets in the Family

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

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

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

Family Reunion and Estate Planning

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

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

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

Estate Planning - How Do I Get Started?

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

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

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

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

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

Town Hall Meetings and Healthcare Reform

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

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

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

Let us have your comments or contact us at http://www.ythlaw.com/

Creating Your Legacy

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

Shared via AddThis

Michael Jackson - Buried?

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

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

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

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

Finding Your Money!!!

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

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

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

Amending Your Trust

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

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

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

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

Credit Score and Estate Planning

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

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

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

Power of Attorney

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

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

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

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

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

Living Wills: The Debate Continues

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

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

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

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

Living Will and Healthcare Reform

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

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

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

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

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

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

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

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

Estate Planning Now For the Health of Your Life

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

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

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