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.

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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

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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.

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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.

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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.

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Your Investment Strategy

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

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

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

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Long Term Care Planning and You

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

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

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

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September 11th

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

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

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

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

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

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

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

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

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Ways to Make Charitable Gifts

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

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

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

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Gift Tax Law

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

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

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Labor Day

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

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

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

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

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

Protecting Your Wealth For Your Family - GRAT

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

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

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

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

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

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Get Your Deeds in Order - ISSUE THREE - Trust Provision

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

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

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

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

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

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

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

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