Divorce - When Should I update My Powers of Attorney

Another estate planning matter that must be addressed at the time of divorce is your powers of attorney.

(1) If you have powers of attorney naming each other as agents, then 9 times out of 10 you do not want your ex-spouse to handle your affairs when you are incapacitated.

(2) If you do not have any powers of attorney, it is even more important to get them done.

You need to appoint someone to handle your financial affairs (paying bills, dealing with the bank, etc.) when you are unable to do these things yourself. You also want someone to be able to talk with doctors or review your medical information when you are unable to address medical situations yourself.

Don't let a divorce just happen to you. Take a collaborative approach that helps you address the financial, emotional and more importantly those estate planning issues that could get overlooked and lead to real complications. Contact us at www.ythlaw.com for estate planning, probate and elder law needs.

Collaborative Divorce - Can We Change our Irrevocable Trust

At the time of divorce, an additional estate planning matter to consider would be modifying or terminating any trusts that you may have in place. At this time, I am addressing the Irrevocable Life Insurance Trust. Sometimes referred as the ILIT.

One would think that you can not change an Irrevocable Trust. However, there are opportunities to not only change the trust but also to terminate it. When I draft my ILITs for clients, I do provide for a divorce contingency so that by the terms of the trust changes are made as a result of a divorce. However, if your trust does not provide a divorce contingency, there are options available under the law. Under defined circumstances, the irrevocable trust can be terminated. At the time of divorce is the opportune time to address these legal issues. It will save time and expense.

Contact us at www.ythlaw.com for your probate, estate plannind and elder law matters.

Collaborative Divorce and Estate Planning

There are so many issues that you must consider if or when you are going through a divorce. What about the children? Where will I live? How will the assets be allocated? In a collaborative divorce, couples seek divorce without going through litigation. Collaborative divorce is more comprehensive then the mediation alternative to litigation. It can serve to help you look at the financial and emotional aspects of divorce. In addition, from my perspective, it is an opportunity to consider the many estate planning issues. Over the next few days, I will discuss those issues and how they can best be addressed for your situation.

Who will be the guardain of my minor children? This is a difficult enough question when couples are together. It becomes even more problematic during a divorce. Either parent would have full custody of minor children when the other parent dies unless parental rights have been terminated or modified as part of the divorce settlement. It would be wise to revisit guardians that you may have appointed under your prior Wills and determine whether there is still agreement. During the collabrative process, you want to make sure you address matters relevant to the guardian of your minor children.

Contact our offices at www.ythlaw.com for more information on probate, estate planning and elder law.

Have you moved to another state recently?

Peopele often ask me when should they update their estate planning documents. First, I do congratulate them for having done a Will and other estate planning. Just as important as making a Will, is to make sure to keep that Will up to date.

So, one trigger to remind you to update your documents is when you move to another state. Your Will is governed by the state where you live. Each state will recognize a Will made in another state,. However, it is important that it is reviewed by a lawyer when you move. You want to make sure there are no ambiguities that could be problematic upon death. There may be other important documents to consider in your new state. Should you have a Trust, Powers of Attorney or iving Will. What may not have been important in one state, like the need to have a Trust, may be very important in your new state.

Contact us at http://www.ythlaw.com/ for your probate, estate planning and elder law needs.

Tax Tip Mid-Year

It's summertime, the beach, vacations, sun and fun. So, have you thought about how to save on your taxes. I guess not!! But someone else has. Therefore, I thought I would share this recent article I read with you. It has some essential tips for you to consider for your 2011 taxes.

10 Midyear Tax Moves To Make Now
By Kay Bell • Bankrate.com


Contact us at http://www.ythlaw.com/ for all your probate and estate planning needs.

Divorce American Style

I received a newsletter from Marianna Goldenberg, a financial advisor who specializes in working with women experiencing a divorce. There are unique financial and estate planning matters that must be addressed during such a transition.

Here is a particular scenerio she presented with some slight modifications. Amy and Ted have been married for 12 years. They have no children and are each currently in the 25% federal tax bracket. They are trying to decide how to equally divide their remaining three assets. Those assets are a shore house in New Jersey worth $300,000, an IRA worth $200,000, and a savings account worth $250,000. The $250,000 in the savings account represents a loan taken against their shore house.

Ted has proposed that Amy take the shore house and sell it netting $50,000 after repayment of the outstanding loan. He suggests she should also keep the IRA worth $200,000. He would keep the savings account and they would both end up with $250,000.

Amy thinks this sounded fair since each would be getting half of the $500,000 total asset value. However the one question that she overlooked asking was “what is the cost basis?”

If this question had been asked of Ted it would have revealed that he only paid $110,000 for the shore house 8 years earlier. This asset has a capital gain of $190,000 which creates a capital gain of $28,500 (15% capital gain) plus $5,700 state tax due (3% state tax rate). Amy received $50,000 from the beach house but had to pay out $34,200 in taxes, so she only had $15,800 remaining.

Her after-tax value of the IRA is approximately $150,000 (25% tax bracket, not counting the 10% early withdrawal penalty since she is not planning to liquidate the account prior to age 59 ½).

The after-tax results show Amy ending up with only $165,800 while Ted keeps $250,000 tax-free and clear. This would hardly be considered an equal split.

To avoid potentially nasty surprises it is best to thoroughly investigate the basis in all assets prior to agreeing to accept transfer in order to have a clear picture of the financial outcome. Once the marital settlement has been signed and the divorce is final there is little to no opportunity to renegotiate an unfavorable deal.

AND do not forget those other documents that need to be updated after a divorce including your Will, Power of Attorney and Living Will. Contact us at

Challenges Create Legacies

In our lives we face challenges. Whether those challenges are personal or business, financial or health, ongoing or one offs, they are forming our experiences and therefore our legacies. Now, we can choose not to view our challenges as building blocks of our personal destiny. When we do, we fail to take control of the challenges and therefore allow the challenges to take control of us. When we take control of the challenge, we are facing our reality and molding it to our best advantage.

You would not sit back and allow the failure of your car brakes while driving on the speedway to take you in any direction. Instead you would take control of the steering wheel and direct the vehicle to the safest stop you could maneuver, averting a life or death situation. So when presented with a situation that is a challenge, take the steering wheel of that challenge and maneuver it to your best advantage.

Nothing is happenstance and everything is for a reason. Those who have learned the most from their challenges have been creators of amazing destinies for us to learn from and grow. What is your legacy? How are you preserving that legacy for generational prosperity?

Contact us at http://www.ythlaw.com/ . It is the legacy you have created that we seek to protect and preserve.

Wills, Wills, and more Wills - Do You Have One?

Your Will is your opportunity to say what you want to say, give what you want to give, honor those you want to honor as the beneficiary of your stuff (whatever your stuff might be). There have been many strange, wonderful, provocative, even crazy (of course crazy is in the eye of the beholder!!!) Will mandates.

Here are an interesting few!!!

Now consider your own situation and contact us today!

Medicare

Third, as we continue from July 3rd the discussion of the Patient Protection and Affordable Care Act (“Act”), another area of focus under the Act is Medicare. The Act includes provisions that impact cost-sharing for Medicare Part D prescription medications, add to and change cost-sharing obligations for Medicare Part B preventive benefits, impact cost sharing for participation in Medicare Part B and D, change payment to Medicare Advantage plans and change enrollment periods for Medicare Parts C and D.

Specifically, the "donut hole" is to be eliminated by 2020. Elimination of this coverage gap is significant for seniors. Medicare is moving away from just be about sick care and to be more inclusive of well care including annual check-ups. Enrollment period changes and premium adjustments are additional changes which serve as enhancements to Medicare and therefore to the senior population.

Contact us at

Happy 4th of July

We all know that Freedom is a beautiful and precious thing. It should never be taken for granted. As we celebrate the 4th of July, reflect on all that Freedom means to you and the country in which you live.

Happy 4th !!!!

Elder Justice Act

Second, as discussed July 2nd, the Patient Protection and Affordable Care Act (“Act”) has many aspects of importance to the elderly population. Anyone who has a practice focusing on or working with the elderly realizes the importance of advocacy on behalf of that population. There are many with designing schemes to exploit those most vulnerable in the community. In my practice, I have seen direct mail and call campaigns targeted at seniors with offerings that were in no way needed, beneficial, practical or affordable for an elderly person. I have seen solicitations that look like monthly bills which the elderly person pays. There have been nursing home facility closing leaving elderly individuals with little options. Besides exploitation, the 2 entities established by the Elder Justice Act also address abuse and neglect. Those newly established entities are the Elder Justice Coordinating Council and Elder Abuse, Neglect and Exploitation Forensic Centers.

The Elder Justice Act provides for the first time coordinates efforts to prevent elder abuse on a federal level. The Elder Justice Coordinating Council will make recommendations to the Secretary of Health and Human Services on the coordination of activities of federal, state, local and private agencies and entities relating to elder abuse, neglect and exploitation. The Elder Abuse, Neglect and Exploitation Forensic Centers develops forensic expertise regarding and provide services relating to, elder abuse, neglect and exploitation. In addition the Elder Justice Act will make available funds for adult protective services.

As we care for our aging parents and ourselves as we age, it is important to know about these services and continue to advocate on behalf of elderly. Contact us at http://www.ythlaw.com/ for more information.

Affordable Care Act and the Elderly

Over the next few days, I will focus on an important part of our population, the elderly, and a law impacting health matters pertaining to them. In March, 2010, a comprehensive federal health care act was enacted, the Patient Protection and Affordable Care Act (“Act”). Among its numerous provisions, some highly publicized, there are many provisions that are specific to the elderly but have not been given as much public scrutiny.

First, we have the Community Living Assistance Services and Supports (CLASS) program which was created by the federal Act. . It will be funded through voluntary payroll deductions made by eligible full-time, part-time and self-employed workers regardless of health conditions. Payments will be made under the program to vested participants when they have a qualifying disability. It will take 5 years to vest in the program and there will be no limits on the number of years pay outs to an individual will be made. It would not prohibit access to other long term care coverage. This program may not be helpful to those with long term care needs now but it does address the serious situation of lack of long term care coverage for over 90% of the population.

The program is anticipated to begin in the latter part of 2012. Under the Act, the Secretary of Health and Human Services has to announce the details of the program by October 1, 2012. That announcement will also include details on the benefit and premiums, and when enrollment will start.

For more information contact us at http://www.ythlaw.com/

Continuing Care Retirement Communities, Here to Stay?

The Continuing Care Retirement Communities (“CCRC”) offer a blend of housing complex, activity center and health care system. They consist of independent living, assisted living, and nursing care as well as other programs and activities. Some offer specialized Alzheimer’s memory care units and programs.

However, in recent times, some CCRCs have begun to experience financial instability and therefore have attracted public concern and national attention. In Pennsylvania, at least 3 CCRCs have been impacted by bankruptcy filings. Even though there have been no complete closures to date, there have been significant changes impacting residents. Such changes include increases in service fees, elimination of some services, reduction of staff and changes in personnel management. These concerns generally result from change in ownership and persistent financial problems.

What is the answer to this growing concern? Residents have sought legal guidance, regulatory oversight and investigative reporting. It would appear that if CCRCs are to continue to be a viable option for the elderly all of these avenues most be adequately utilized. In addition, those on the front line of the issues, the residents, must continue to be vigilant in their own advocacy for self-representation. If governing boards of CCRCs do not have resident membership, then such should be sought after by the residents for better knowledge of and control over the financial viability of what has become their home.

Contact us at http://www.ythlaw.com/

Pooled Trusts

A third type of trust that might be used for a disabled family member is a Pooled Trust. In a Pooled Trust many different disabled individuals place assets in the trust. Each in separate individual accounts, in order to achieve efficiency. A Pooled Trust is like a bank that holds the assets of individual account holder for the individual's benefit.

The trust must be established and maintained by a non-profit association. Upon the death of the disabled individual any excess funds cannot be left to heirs of the disabled person but remains in the Pooled Trust for the benefit of other disabled individuals in the Pooled Trust.

If you have questions regarding estate planning, probate or elder law matters contact us at http://www.ythlaw.com/

Payback Trust

The Payback Trust is a second type of trust that can be established for a disabled family member. This type of trust is different from the Third-party funded trust discussed in the prior post.

The Payback Trust as the name implies is a trust created from the funds of a disabled beneficiary and requires payback, at death, to the state for medical assistance benefits. However, during ones lifetime, funds may be accessed within designated limitations. Generally, these trusts are created to hold the proceeds from personal injury or medical malpractice settlements to allow the disabled beneficiary to continue to receive medical assistance. The trust must be created as an irrevocable trust for the sole benefit of the disabled individual under the age of 65. Such trust can be created by the disabled individual, his/her parent, guardian or order of the court.

Tomorrow we will discuss a thrid type of trust used for those with disabilities. Contact us at http://www.ythlaw.com/ for expert estate planning advice.

Happy Birthday to us All!!!

I had mentioned before that I alway use my birthday as a time to review and reflect on important health, financial and personal matters. Making sure my estate plan is up to date is a part of this annual reflection. Well, today is my Birthday!!

I am fortunate to have my health. I also realize how important good health is and so I do what is necessary to maintain good health. It is just as important to do what is necessary to make sure my Will and other important estate planning documents exist and are up to date, when I am healthy and can make sound and rational decisions.

It is also important that I address issues of healthcare and long-term care when I am healthy and can make sound and rational decisions. This would include the social security areas of retirement, disability, medicare and medicaid; long term care insurance; assisted living; and, guardianship. All of these areas may be of importance to you and your family.

Feel free to contact us soon at http://www.ythlaw.com/.

Third-Party Funded Trust

I will discuss 3 types of trusts over the next 3 days that would be considered for a disabled family member. The first trust to discuss is the third-party funded trust. This is a trust in which funds of one person are placed in a trust for the benefit of another person. In this case, the benefitted person would be the disabled family member.

A third-party trust, if properly established, will not affect the public benefits of the disabled family member nor will it be necessary to reimburse the state for medical assistance provided to a disabled family member. Such trust must allow the Trustee full discretion in the distribution of the funds available in the trust.

Contact our offices at http://www.ythlaw.com/ expert advice and document preparation to meet your estate planning needs of a disabled loved one.

Medicaid Eligibility

As we continue to discuss the needs of families with loved ones who are disabled, let's take a look at the Medicaid law. Medicaid provides funding for longterm care nursing facilities, inpatient hospital care, clinical services, psychiatric care, prescription drugs and medical devices. Disabled persons are a category covered by medicaid if they meet the financial criteria.

The financial requirement for Medicaid requires that an applicant have assets, including income and resources, below a certain threshold. This is generally $2,000 in states like Pennsylvania. This criteria is also applicable to SSI.

Money or other assets of a disabled family member CAN NOT be transferred into a Trust to qualify for Medicaid benefits. There are special exceptions to this rule with very specific guidelines that MUST be followed. Such Trusts that can be used are payback trust; pooled trust; and, discretionary trust (this trust DOES NOT contain the money of the disabled family member). More on each of these trusts will follow over the next few days.

Contact us at http://www.ythlaw.com/ for more information on probate, estate planning and elder law.

Understanding Trusts

As pertains to disability, understanding what a trust is and how it operates are important to not only families with disabled loved ones but all families.

Trusts use a form of bifurcated (2 part) ownership. An individual referred to as the Settlor transfers his/her property (real estate and/or money) to an individual (or institution) referred to as the Trustee. The Trustee manages the property for the benefit of the beneficiary (another person). The two-part ownership would be the Legal and Equitable. Legal Ownership is with the Trustee, while the Equitable Interest (having a right to the enjoyment of the property) is with the beneficiary.

The most common types of trusts are mandatory, support, discretionary and spendthrift. The mandatory, support and spendthrift trusts would not be the type to establish for those with disabilities if maintaining public benefits such as medicaid and SSI are important. It would be the discretionary trust that is of importance to families with disabled loved ones.

The discretionary trust will be discussed tomorrow. Contact us at http://www.ythlaw.com/ if you have questions or would like to schedule an appointment to discuss your estate planning, probate and elder law needs.

Should A Person on Disability Inherit?

Medicaid and SSI both have very stringent resource (and income) thresholds that could be implicated by a bequest or gift. The result is that the disabled individual could loose their SSI and Medicaid benefits. Therefore, they could be forced to pay for or even forego nursing care or other healthcare benefits.

What exactly is meant by "resource"? A resource is defined as cash or other liquid assets or any real or personal property that an individual owns and could convert to cash to be used for support and maintenance. So even if one who is disabled inherits a small interest is a house (real estate), it is considered a resource because everyone with an interest in the property has the right to seek their financial (share) interest in the real estate. That means they can force a sale or be brought out by the other owners.

So, how can a disabled person obtain and inheritance and still maintain their Medicaid and/or SSI benefits? The legislature and courts in Pennsylvania have recognized special needs trusts or supplemental needs trusts that when properly executed can reduce the costs to famiies and provide additional resources for the disabled person on Medicaid or receiving SSI.

We will continue this week to discuss the different types of special needs trusts. Contact our offices at http://www.ythlaw.com/ for expert estate planning advice.

Estate Planning for Family Members with Disabilities

Over the next few days, I will discuss the issues pertaining to estate planning for families with disabled family members. Generally, family members desire to leave money to a disabled loved one in order to maintain or improve the quality of life. However, if this is done with a bequeath in a Will or an outright gift, more harm than good could result.

Medicaid and SSI both have very stringent resource (and income) thresholds that could be implicated by any significant bequest or gift. The result is that the disabled individual could loose their SSI and Medicaid benefits. Therefore, they could be forced to pay for or even forego nursing care or other healthcare benefits.

Let's discuss what can be done over the next few days. Feel free to contact us at http://www.ythlaw.com/ to discuss all your estate planning needs.

Last Will and Testament

I received a birthday card today from a life long friend. It reminded of the importance of our "intangible" legacy. During our lifetime, we acquire assets that we want to pass on to our family, friends and/or charitable organizations. Those assets are not just MONEY, REAL ESTATE or other TANGIBLE property (cars, jewelry, furniture, artwork, collectibles, etc.). Our gifts are intangible as well.


Through estate planning we can document our INTANGIBLE assets. My friend reminded me that I make others happy, I know just the right thing to say, I appreciate time spent with family and friends and I enjoy giving to others. What are the intangible things of your life and how might it be documented in your estate plan?

Your Last Will and Testament can provide guidance and advice to others; it can give to a charity that makes a difference in ways that reflect your life; it can have an educational fund started for your family; and, it can even forgive. Let an estate plannning professional work to personalize your Will. Your legacy is our interest. Contact us at http://www.ythlaw.com/

President Annouces Death of Osama Bin Laden

For the families who lost loved ones in the 911 attack on our Nation and for all of us who cherish peace and freedom, a victory has been obtained with the death of Osama Bin Laden. We do not often cheer death for life is a precious gift. But, when you look throughout history, there are those, like Hitler, Stalin, Ivan the Terrible, Pol Pot, Idi Amin Dada, who promoted such horrendous and vicious acts against mankind that only death could end their terror.

The death of Osama Bin Laden addresses some closure on the worst attack on the American people in our History and for others throughout the rest of the world. Though the cost of war is great, it is the true pursuit of justice that brings the achievements we seek.

It is times like this that we give pause to address the lessons learned and make sure that our history is well documented for the next generation. Contact us for your estate planning and other legacy needs at http://www.ythlaw.com/

A Royal Legacy

The royal Wedding is very symbolic. It represents tradition with a touch of modern flare that must be timeless. As William and Kate begin their royal life together as husband and wife, they will be creating a legacy that will be documented in many ways for generations well beyond their lifetime.

With royalty, many things are already addressed for them as pertains to inheritance, incapacity and other life and death planning.

You can take responsibility of your lifetime planning. We are here to provide the advice and guidance that you will need. Contact us at www.ythlaw.com for your Wills, Powers of Attorney, Living Wills and other probate and elder law needs.

Legacy of Immortality - The Story of Henrietta Lacks

While vacationing with my family in Jamaica, the Island of sunny skies and warm people, I was able to leave behind our hectic work and home life. So between eating the speciality dishes, climbing the falls of Dunn River; swimming with Dolphins, Sharks and Stingrays at Dolphin Cove and Bobsledding in Mystic Mountain, I read. The Immortal Life of Henrietta Lacks.

The story of Henrietta Lacks is both disturbing and comforting. Disturbing in the unsettled nature of the acquisition of her cells and comforting in the contribution her cells have made and continue to make to advances in science. "HeLa" the name of Henreitta Lacks' cells which continue to live and multiply well after her death in 1951 were vital in the development of the polio vaccine, gene mapping and helped in developing drugs for influenza, Parkinson's disease and continues to aid cancer research and all other medical research.

Henreitta Lack's stories raises for me yet another question regarding our assets and the extent to which we can control the distribution of them during and after our lifetime. Contact us at http://www.ythlaw.com/ with your estate planning, elder law and probate questions.

The Legacy of a Nation

This was shared with me so I pass it along to my blog colleagues, friends and family!

Go to this website and enter the amount you paid in Federal Taxes in 2010. See your “tax receipt” for how your tax dollars were spent. Be sure to “expand all” to see the detail in each category. Don’t forget to scroll to the bottom of the receipt to see your share of the federal debt.

For many Americans, the amount they pay in taxes is larger than any purchase they make during the year, but studies show they know almost nothing about where that money goes to. An electorate unschooled in basic budget facts is a major obstacle to controlling the nation’s deficit, not to mention addressing a host of economic and social problems. This website suggests that everyone who files a tax return receive a “taxpayer receipt.” This receipt would tell them to the penny what their taxes paid for based on the amount they paid in federal income taxes and FICA. It’s truly enlightening.

Contact us for your estate planning, probate and elder law needs at http://www.ythlaw.com/

Who's Gonna Take Care of Fido?

Many people make plans with a friend or relative regarding the care of their pet after they die. However, a sure way to make sure your pet is covered is to make the pet's care a part of your Will. Even though a pet is legally considered property, you can leave money for your pet in a trust. You bequeath money into a trust with your pet as the beneficiary and a trustee named. A caregiver for your pet is also named. The trustee could be a friend or a relative or an institution willing to serve. Make sure all your loved ones are covered in the event of your death. Contact us at http://www.ythlaw.com/ for elder law, probate and estate planning needs.

To Be or Not To Be, That is Your Decision!!

You can dictate whether you want to be on life support. If your condition is terminal without any hope of recovery because you are in a permenant state of unconsciousness or in a vegetative state, your Living Will can speak for you. The Living Will is the fourth important document of your estate plan. It is also referred to has your Advance Healthcare Directive. You can let your family as well as medical professionals know your preference for life-sustaining treatment. Plan for those important decisions in your life. Contact our offices at http://www.ythlaw.com/ We can help you with Probate, Estate Planning and Elder Law.

For the Love of a Friend

"HEARTS FOR JAYLA" continues to garner lots of support but can always use more. Since her eye inquiry in 2009, Jayla has endured numerous surgury with the most recent one, April 13th. She is a phenomenal child with the spirit of a winner no matter what. You got to love her!!

There are a lot of people in her corner as demonstated by this most recent article. Her friend, Brett Hoffman (11 years old), is making a difference with his jewelry design for Jayla (10 years old). My marathon run could only have happened with the energy obtained from the charities I represented.

Contact us for your continued support of our charitable endeavors.

Business Succession Planning

Whether you are a mega corporation or a Mom and Pop operation, business succession planning is critical. Do not let your business go down the tubes because you fail to anticipate the next generation of business ownership. There are many scenarios a business owner may want to consider. The primary ones are: (1) Your children will inherit AND run the business. Have you talked to your children about their interest? Are they currently involved? Do they care about the business? Are some children more involved or interested than others? Take the time to answer these questions and plan accordingly. (2) Your children will inherit BUT others will run the business. Do you have an agreement in place with current or potential partners of your business? What are the expectations upon your death or your disability? How would your family be compensated for their interest in the business should you die? Take the time to answer these questions and plan accordingly. (3) You have a Key Employee or potential third party purchaser. Do you want to retire from the business and reap the benefits of your labor. Take the time to answer these questions and plan accordingly. Contact us at http://www.ythlaw.com/ for expert assistance with businses succession planning and other estate planning, probate and elder law needs.

Death of a Salesman

A young man was standing at the Pearly Gates wondering whether he would be allowed in. Just as he was about to turn away, the gate slowly opened and he cautiously stepped in. Before he could go further, a voice spoke clearly and loudly to him. "Are your affairs in order?" The voice asked. "I have no affairs to get in order" was the young man's reply. "Think again" said the voice. So the young man sat and pondered. "Ah ha", he exclaimed. "I hope my wife knows where the insurance policies are. I want to make sure the kids use the money I left for their college education. Who will take care of those payments I have been making for my mother's home care? What did I do with that special collection of baseball cards? They have really increased in value." "Young man you have some unfinished business. Now go back and get it done!" Right at that moment, the young man woke up. What a dream he thought. That day, he got his affairs in order. Unlike a dream, there is no second chance in death. Do not let it be too late for you to get your affairs in order. Contact us today at http://www.ythlaw.com/

Why You Need A Will

There is a pervasive belief that estate planning is only for those with wealth. This, however, could not be further from the truth. Most people own some type of property, whether it is a family home or bank account and most people have loved ones, children and spouse, that they want to take care of. Without a will, the state gets to decide how to distribute this property at death according to the state's intestacy laws. These laws generally leave the property to the surviving spouse and/or children. The problem with state intestacy laws, however, is that they are based on blood relation. They do not take into account the fact that many Americans have non-traditional families. For example, if a person has been married more than once with children and step-children from each marriage, has a civil union, domestic partnership or wishes to leave property to an unrelated person, then the intestacy laws will not carry out their final wishes. By preparing a basic will, an individual gets to control how their property is distributed. If they want to leave money to charity or create a trust to take care of a pet, they can do that. If they own a family business they want to see carried on rather than broken up, they can do that too with the right estate planning tools. There are many other things that can be done through estate planning. Contact us at www.ythlaw.com

Selling The Family Home, Oh My!!

We have a combination of rain and snow this morning, the first day of April. April showers bring May flowers. What does April snow bring? Well, let's wait and see. There are some things we have no control over. There are many that we do but we fail to act on them. I am in the middle of an estate matter with lots of family disharmony. We have a home that clearly needs to be sold but there was no Will providing those instructions. Since the 5 beneficiaries can not agree on selling the home, the court appointed Administrator will have to Petition the court to sell the property. More money coming out of the estate to pay the expense of filing the petition. In addition, since there was no Will and the beneficiaries did not agree on which one of them should be the Administrator, the court interceded and appointed its own Administrator, more money coming out of the estate. AND the only money that the estate has will be what comes from the sale of the house. SO, it appears that not only will the home no longer be in the family. The beneficiaries will get much less than they anticipated. We do have control in managing some things but only if we act while we can. Got a Will, if not contact us at http://www.ythlaw.com/ for estate planning, probate and elder laws matters.

Your "4" Essential Documents for Estate Planning

Most people do not know where to start when it comes to getting their affairs in order. That is what estate planning is, Getting Your Affairs In Order. The essential documents are (1) WILL; (2) LIVING WILL; (3) HEALTHCARE POWER OF ATTORNEY; and, (4) GENERAL POWER OF ATTORNEY. Each persons situation is different so you want these documents tailored to your specific circumstances. An estate planning attorney (one who specializes in this area) should be consulted. I, like many other professionals, will provide you with a free consultation so you know what to expect. You can also get my book Stop! What are you Waiting for? Your Step by Step Guide to Estate Planning. $24.99 but only $10 when you call my office for a free consultation. Contact us at http://www.ythlaw.com/

Will and a Codicil

I just addressed a question from a client. It pertained to making changes to their Will. You can update your Will by either getting a new one done or amending the old one. When you get a new Will, it revokes all prior Wills. However, you want to make sure you shred or otherwise effectively discard the old Will. You want to make sure no one gets the wrong Will at the time of your death. You can amend your prior Will by executing a Codicil which is an amendment to your current Will. You therefore MUST keep the current Will and keep the amendment, "Codicil", with that current Will. The Will and the Codicil MUST stay together. Otherwise, no one may know that you have made a change to your Will. Contact us at http://www.ythlaw.com/ for your estate planning and probate needs.

Geraldine Ferraro - A Legacy of Politics

My undergraduate degree was in Political Science. I have had an interest in politics since 7th grade when I ran for Treasurer of our Student Government Association. Though I was not successful in my very first bid, I did win the next year when I ran for President of our Student Government Association. So I watch with real interest when women bid for the highest offices in our country. Geraldine Ferraro's selection as Walter Mondale's Democratic running mate in the 1984 presidential election is part of her tremendous legacy, despite an unsuccessful campaign. Her vice presidential bid, the first for a woman on a major party ticket, emboldened women across the country to seek public office and helped lay the groundwork for Hillary Rodham Clinton's presidential candidacy in 2008 and John McCain's choice of his running mate, Sarah Palin, that year. You have created a legacy in your life's story. Let us help you preserve that legacy. Contact us at http://www.ythlaw.com/ for expert estate planning, estate administration and probate needs.

Twenty-Something And Loving Every Moment of It

Welcome to adulthood....at 18, (though you can not drink) you are no longer a child. I met with clients recently in their 30s and we discussed how when we first drank coffee we thought, "Now I am a real adult." Today, with Starbucks and everything else, the coffee drinking age is so much younger. In any event, the discussion today is when should you get your Powers of Attorney done. When you are 18, into your twenty-something and beyond, you should have these documents executed. If you should become incapacitated, (car accident, serious sports injury, some traumatic event), you need someone to take care of your financial affairs and health issues. Your medical information is private and you must designate who may have access to your medical information and confer with doctors. I know you are twenty-something and loving every moment of it, but take the time to cover yourself for the unexpected so you can get right back on track loving your 30s, 40s, and beyond. This is what you should know about Powers of Attorney. 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. Contact us at http://www.ythlaw.com/ for estate planning, probate and elder law needs.

Your Digital Legacy

With more and more people using social media and those who do on-line banking, shopping and even dating, we have created what I refer to as a digital legacy. What happens to this legacy of passwords, persona, and all types of data when we die? Does it live on? I suppose in a way it does. Like all things we have to take responsibility, while we are living, of how our digital legacy will be treated upon our death. Otherwise, it is the whim and whimsical fancy of those unknown folks handling cyberspace data. You do have a right to this information but like all things you must exert and protect your rights or lest they be taken away. How do you become empowered? Despite our increasingly data-intensive lives, the legal framework around our personal on-line data is still evolving. And you can be a part of the evolution. I recently read about the concept of having a digital will: A legally binding statement to the world declaring who should have access to your information after you die. It's a question that is bound to get only more complicated as our digitally engaged population grows older and dies. So, as you contemplate aspects of your estate planning, consider your Digital Legacy and address it now before someone else might. Contact us for expert estate planning, probate and elder law advice at www.ythlaw.com

Elizabeth Taylor - A Film Legend - Dies At 79

Elizabeth Taylor was truly a household name for generations. My mother was so moved by Elizabeth Taylor's stardom, she named her first born child, Yvette Elizabeth Taylor. Yes, that would be me. So, I guess hearing about the death of this particular legend moved me personally and otherwise.

Elizabeth Rosemond Taylor was born in London on Feb. 27, 1932, the daughter of Francis Taylor, an art dealer, and the former Sara Sothern, an American stage actress. At age 3, with extensive ballet training already behind her, Taylor danced for British princesses Elizabeth (the future queen) and Margaret Rose at London's Hippodrome. At age 4, she was given a wild field horse that she learned to ride expertly.

Her family moved to the United States where she begin her movie career at age 10. The rest is Hollywood legend. Clearly, Elizabeth Taylor has a significant estate which we will follow its administration. Her children include her daughters Maria Burton-Carson and Liza Todd-Tivey; and, sons Christopher and Michael Wilding, and several grandchildren.

Stay posted for updates. Contact us at http://www.ythlaw.com/ for all your probate, estate planning and elder law needs.

When Probate Matters

This morning I received a call from a son who just loss his mother to cancer. I expressed my condolences and we proceeded to discuss the reason for his call. His mother, who was very meticulous and maintained very good records of her finances, died without a Will. As you can imagine the drama unfolds from this point.

There are 3 children and they have at least agreed that the son who made the call to me could serve as the Administrator of the Estate. If that had not been agreed upon, the administration of the estate could be significantly delayed. Of course there are other issues that could have been avoided with a Will.

(1) The mother wanted her eldest son to have her extensive art collection - NOT - (they do not agree)
(2) The homestead still has a mortgage on it and one daughter wants to stay in the home - NOT - (they do not agree)
(3) The mother wanted everything to be equally distributed upon her death - NOT - (she only had one of her children on her insurance policy and on her bank account)

AND THE LIST goes on. Plan now and let us help you by contacting us at http://www.ythlaw.com/

Black History Month - Legacy of Freedom for All

What is the history behind "Jocko"?

The story begins the icy night in December 1776 when General George Washington decided to cross the Delaware River to launch a surprise attack on the British forces at Trenton. Jocko Graves, a twelve-year-old African-American, sought to fight the Redcoats. However, Washington deemed him too young and ordered him to look after the horses. He asked Jocko to keep a lantern blazing along the Delaware so the company would know where to return after battle.

Many hours later, Washington and his men returned to their horses. The horses were tied up to Graves who had frozen to death with the lantern still clenched in his fist. Washington was so moved by the young boy's devotion to the revolutionary cause he commissioned a statue of the "Faithful Groomsman" to stand in Graves's honor at the general's estate in Mount Vernon.

By the time of the Civil War, these "Jocko" statues could be found on plantations throughout the South. They were like the North Star that pointed fleeing slaves to their freedom. The Jocko statues pointed to the safe houses of the Underground Railroad. Along the Mississippi River, a green ribbon tied to a statue's arm — whether clandestinely or with the owner's knowledge — indicated safety; a red ribbon meant danger. Thus these original lawn jockey statues serve as true artifacts of the Underground Railroad that conducted so many African-American slaves to freedom.

Share a black history fact here or contact us at www.ythlaw.com

When Your Family Lets You Down

One thing, among many, my practice has taught me is all that you have control over is yourself. You really do not control, try as we might, your spouse, your children, your other family members or your friends. You only get frustrated and stressed out the more that you try.

On a daily basis, I talk with my clients about those they want to pick to serve in roles like agent, executor or even guardian. I encourage them to take those that they intend to select as they are NOW. Do not think that they might change over time to become what you want. For example, if they are not at a place NOW where you would want them to be to serve as guardian of your children, then do not select them. We can not predict the future, good or bad. All of the selections made during the estate planning process are addressed as of today. We can always make changes in the future as circumstances change. Your plan is not a static document, it evolves.

Let us help you plan correctly. Contact us at http://www.ythlaw.com/ for all your probate and estate planning needs.

Signature By Mark

I have had situations where a client may be of sound mind and body but has a physical handicap that affects his or her ability to sign documents. A signature by Mark is permissible. The Mark has to be witnessed by 2 individuals and notarized. This allows the person to continue to take care of their own business as long as they are mentally able. They do not have to give that authority to another if they want to continue to manage their own affairs.

What else do you want to know about your affairs? Contact us at http://www.ythlaw.com/ for expert estate planning and probate.

The Hammersteins' Legacy

What's Your Legacy? I attended a booksigning this weekend. Oscar Hammerstein II's grandson has written a book, THE HAMMERSTEINS, about his family's awesome musical legacy. The book draws heavily upon the family archives, presenting a rich collection of photographs, theatre blueprints, programs and patents. The grandson, Oscar Andrew Hammerstein, has become the family historian, by studying and preserving his family's heritage and their contribution to Ameican culture.

Estate planning helps create and preserve your legacy which could be lost without having a plan. Who will maintain the memorabilia on your family's work? How will it be passed on for the prosperity of your family and maybe of the larger society as in the Hammersteins' situation.

I do believe that more people need to address their own legacy by taking the time to document the journey of their life. It is an exercise of significant worth. Contact us at http://www.ythlaw.com/ for expert estate planning guidance.

Powers of Attorney and Wills for the "What ifs" and "When"

I am on the way to a Nursing Home. The reason for this visit happens all to often but could be avoided with planning. Why do we wait? What do we procrastinate?

Today, when I meet with this client and their family (generally a son or daughter), I have to first determine whether the client still has the capacity to execute specific documents like a will or power of attorney. If that huddle can not be met, then the son or daughter will have to initiate guardianship procedures to address financial matters and certain healthcare matters. The window for creating a will is now closed if the client no longers has capacity.

Unfortunately for many, when we are healthy and able bodied, we do not focus on the "what ifs" (I become incapacitated, etc.) or the "when" (death happens). However, this is the time to take care of our "business". It will save you time and money in the long run. Though I do make more when you procrastinate, that is not why I do what I do. I want families to have their documents in place for the "what ifs" and the "when". If you do, then you do not have to be addressing legal matters when your focus should be on the emotional aspects of the "what ifs" and the "when".

Contact us today at http://www.ythlaw.com/ for all your probate and estate planning needs.

No Deed Too Small

I often have clients who have loss a spouse and want to know how to handle the Deed held in both names. Generally, married couples hold property as Tenancy By The Entireties. This just means that when one spouse dies, the surviving spouse becomes the full owner of the property. Technically, nothing has to be done as pertains to the Deed. By operation of law, the surviving spouse is the owner.

However, many clients do prefer to remove the name of the decease spouse. When it comes time to sell or transfer the property, there is no need to explain the status of the other name on the Deed, which generally requires the production of a death certificate.

So, make sure all your Deeds are in order and have the names of only those who are currently living. Contact us at http://www.ythlaw.com/ for expert estate planning, probate and elder law needs.

Super Bowl - The Day After

Whether your team won are not, the Super Bowl is a great time to gather with friends and family. That is just what we did on Super Bowl Sunday. We had great food, wonderful friends and exciting entertainment.

Of course these days the Super Bowl commercials get to be legendary as well. The 2 that stood out for me was (1) Kia "One Epic Ride" and (2) Doritos "House Sitting". Like estate planning, One Epic Ride is all about knowing the past to take time now to address the future. I thought "House Sitting" raised an issue regarding cremation. What do you do with the ashes? Some folks keep them on a mantel. However, unlike being able to sprinkle doritos on them to bring someone back to life, you could inadvertently spill them. Why not have your ashes distributed over a place that has meaning for you or have them secured in a vault.

Contact us to discuss your estate planning needs at http://www.ythlaw.com/

Estate Planning Mistakes - Number Twenty-eight

The federal estate tax at the present time is 35%. This is a significant amount on any estate and there may not be any cash to pay the tax. For example, the estate value may all be in real estate or in a closely held business. Planning is critical to make sure there is cash to pay the estate tax. One planning option is life insurance.

However, if an estate is already in such a situation, no cash to pay the taxes, then extensions may be granted by the IRS. The extensions will be for a "reasonable period" for a "reasonable cause".

Get the expert advice that you need. Contact us at http://www.ythlaw.com/ if you have probate or estate planning questions.

Estate Planning Mistakes - Number Twenty-Seven

If you own a business that is set up at an S Corp, you want to make sure the S Corp status is not lost upon death. If stock in an S Corp passes at death into an ineligible trust the S Election may be lost. Only certain trusts, specifically "qualified sub-chapter S trusts" and "Electing Small Business Trusts" qualify as S Corp shareholders. In order to prevent the loss of the S Election, you want to make sure your estate planning document provides the appropriate language.

Contact our offices at http://www.ythlaw.com/ to get the expert legal advice that you need for all your probate and estate planning needs.

Estate Planning Mistakes - Number Twenty-Six

It is important to know that face value of your life insurance is counted towards the value of your estate for Federal Estate Tax purposes. Therefore, the value of your estate could be subject to federal estate tax because your insurance policy increases the value of your estate.

An easy way to eliminate this problem is not to own the life insurance policy in your name. Instead, have the policy owned in the name of a trust. Such trust is known as an Irrevocable Life Insurance Trust. It can save your estate significantly on taxes.

Contact our office at http://www.ythlaw.com/ for all your Probate and estate planning needs.

Estate Planning Mistakes - Number Twenty-Five

For those with Federal Estate Tax exposures (for 2011 and 2012 it is 5 million/10 million for married couples), you as well as your spouse should have a credit shelter trust. The Credit shelter trust/By-pass trust should be properly funded. This requires that each couple have sufficient assets in their name alone. Those assets would fund the Credit shelter trust/By-pass trust upon the death of a spouse.

If there are not sufficient assets to fund the Credit shelter trust/By-pass trust at the death of the first spouse to die, then the surviving spouse will have to disclaim a portion of his or her inheritance to allow the funding to occur. A qualified disclaimer must be executed within 9 months of the date of death of the first spouse to die.

We have the expertise to assist you in all your estate planning and probate matters. Contact us at http://www.ythlaw.com/

Estate Planning Mistakes - Number Twenty-Four

Do Not Fail To Plan for Federal Estate Tax. For the next 2 years, 2011 and 2012, those whose estates are under 5 Million Dollars (10 Million for married couples) will not be subject to the Federal Estate Tax. This could be stay the same, be raised or reduced in 2013. It would be a mistake not to address the potential exposure your estate might have to the Federal Estate Tax. This tax currently would be 35% of the estate. It was even higher in the past so it is not a tax to be taken lightly.

So, make sure your estate planner explains your potential exposure. If your estate is close to the amount or over, you want to make sure you have a Credit Shelter/ By-Trust in place. This type of Trust will allow you to avoid and in some cases eliminate the Federal Estate Tax.

Contact us at http://www.ythlaw.com/ for expert estate planning advice that will save you money on taxes and preserve your estate for distribution in accordance with your wishes.

Estate Planning Mistakes - Number Twenty-Three

Estate planning is not just doing a Will. There are documents that everyone should have to address what happens if you are incapacitated or disabled. You want to make sure you have documents that take care of you while you are living.

Everyone should have a General (Durable) Power of Attorney, Healthcare Power of Attorney (to deal with physical as well as mental health) and Living Will. If you fail to have these documents and you become incapacitated or disabled, a legal guardian will have to be appointed. This is a legal process which will require a guardianship hearing before the court. You can avoid this sometime lengthy and expensive process with advance planning.

Don't make costly estate planning mistakes. Contact us at http://www.ythlaw.com/

Estate Planning Mistakes - Number Twenty-Two

If you have a business, then you should have a buy-sell agreement or a business succession plan. Business succession planning, including ownership succession and management succession, is critical to business owners. Will the business be transferred to family members, a key employee or other purchaser?

The buy-sell agreement is often an integral part of such planning. There are three basic types of buy-sell agreements: First, stock redemption agreements where the company agrees to purchase the departing owner’s interest; second, cross purchase agreements where the other owners agree to purchase the departing owner’s interest themselves; third, hybrid agreements that combine elements of the other two.

A buy-sell agreement protects each owner’s interest, preserves value, and prevents later disputes when an event of transfer occurs. A transition event could be a voluntary departure, disability, retirement or death. What happens if one of the owners gets a divorce? Without a buy-sell agreement to address these issues and assure orderly transition, the resulting chaos could be financially devastating for any business owner.

Critical Note:
How do you value your business? Once a value is established, how do you fund a buy-sell agreement? Business valuation is one of the most problematic issues surrounding the buy-sell agreement. There are several business valuation methods. A few of the common methods include determining value with reference to (1) book value, (2) capitalizing the earning of the company over a fixed period of time, (3) setting the value by independent appraisal, or (4) periodically setting a fixed value by mutual agreement of the owners of the company. Experience shows that having the owners periodically determine the value is seldom satisfactory; they seldom get around to doing it and the value gets stale. A backup, such as determining the value by appraisal if the owners haven’t set the value in the last year or two is an important provision of a buy-sell agreement. Choosing the appropriate valuation method to implement is critical.

As pertains to funding, there are generally three ways to fund a buy-sell agreement. They are a cash sale which requires savings; a financed sale whereby part of the sales price is represented by a promissory note usually secured by a pledge of the stock being transferred; or if a cash or financed sale is not feasible, a sale funded by life insurance may best address the funding of a buy-sell agreement.

Contact us at http://www.ythlaw.com/for all your business succession needs.

Estate Planning Mistakes - Number Twenty-One

Does someone who is not related to you live with you? Is there someone living with you whose name is not on the deed to the house? What happens to that person if you die before he or she does? This is when you want to consider whether you need to preserve a life estate for that person.

What is a life estate? A life estate permits a person who is not on the deed to continue to live in the house for his or her lifetime. Upon his or her death, the house could go to whomever you choose. You want to make sure your Will has a provision similar to the following:

I devise and bequeath my house at ________ together with all household goods and furnishings therein, and all policies of insurance on said real and personal property, to my ________ for life so long as she/he desires to use such premises as a home and pays all costs of maintenance thereof, including taxes, assessments, insurance and ordinary repairs, said property to be insured in a reasonable amount insuring the interest of the remaindermen as well as herself/himself.
Upon the death of _________ or at such prior time as she/he no longer uses said premises as a home for herself/himself, I direct my Executor to sell said real and personal property and distribute the net proceeds thereof to _________.

Let us help you with all of your estate planning needs. Contact us at http://www.ythlaw.com/