Tuesday, November 28, 2017

When Your Children Don’t Want Your Stuff | Estate Planning For Collections and Assets with Sentimental Value


Summary: Estate planning can involve balancing many, and sometimes competing, objectives. On the one hand, you may desire to set up a plan that leaves your wealth to your children. On another hand, you may have certain cherished items that hold high sentimental value to you but little to your children. With a careful and detailed plan in place, you can meet both of these goals, distributing the bulk of your wealth to you children while, at the same time, ensuring that your sentimental pieces go to people who will keep them and value them as much as you do.   

Earlier this year, the Christian Science Monitor published an article about an issue as old as humanity itself: the very different perspectives that can exist between an older generation and a younger one. More specifically, though, the articles touched upon a very modern problem: the relatively large volume of possessions held by Baby Boomers and the difficulties they face when their children and grandchildren don’t want those things.

Dealing with this dilemma can be complicated. It is understandable and reasonable that the younger generations, many of whom may live in small abodes, might have no place in their homes – and lives – for their parents’ and grandparents’ collections of paintings, ceramic figurines and thimbles. Nevertheless, having these possessions rebuffed can be difficult as, for the older generation, those things usually hold high sentimental value and the thought of those cherished items ending up in a yard sale, flea market or thrift store can be excruciating.

As with many circumstances, though, there may be a solution available through estate planning. With no planning, all of your possessions pass according to what’s called the “intestate succession” rules set up in your state’s statutory law. If your spouse dies before you do, that often means that all of your assets go to your children. This one-size-fits-most plan for asset distribution has many potential pitfalls, even if you do desire to leave the bulk of your wealth to your kids.

One of these traps can relate to your collections. Let’s say that you outlive your spouse and that you desire to divide your assets among your three children. However, among your possessions are your antique china service for 12 and your husband’s vintage vinyl albums from the 1950s and ‘60s. For this example, let’s also assume all of your children have stated that they have no interest in vintage records or antique dinnerware. With no plan, everything you own, including that china and those albums, will go to your kids. What’s probably going to happen to the china and vinyl? The likelihood of that “yard sale, flea market or thrift store” outcome seems pretty high, doesn’t it?

With a careful estate plan, though, you may be able to avoid this unfortunate ending. Perhaps you have a niece who loves antique household goods, like china and crystal, and has always adored your china set. Maybe you have a trusted and helpful neighbor who is a self-described “hipster” and loves all things “retro” when it comes to music, including old-fashioned turntables and vinyl albums. Your detailed estate plan can state that, while your children split the vast majority of your assets, the china goes to your niece and the albums go to your neighbor. This type of planning can be accomplished either with a will or a living trust. With a basic will, you can simply include paragraphs indicating the special distribution of those specific collections to your preferred beneficiaries. If you desire to avoid probate, you can do the same with a living trust. With your trust, stating your intent regarding distribution of these assets works similarly. The only additional necessary step is to make sure that you have funded these assets into the trust’s ownership. That is typically done by listing these assets in a special document within your trust, often labeled as “Schedule A” (or something similar.)

By engaging in this type of planning, you will have left a legacy in two parts: you will have both provided for your children and you will also given a second life to your antique/vintage collections, ensuring that they go to homes with people who with treasure them as much as you do.     
This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan


https://www.youtube.com/channel/UCx9HBYFIYdohfnrfW_XRkIQ           



Thursday, November 23, 2017

Estate Planning to Achieve Your Unusual or Non-Traditional Estate Planning Goals

Summary: Everybody’s estate plan is a different from others’, to one degree or another. Many people have specific, unique or peculiar goals they’d like to accomplish through the legacy they leave behind. By obtaining a detailed and comprehensive estate plan, you can take full advantage of the law’s opportunity allowing to control your legacy and make sure that all of your planning objectives, both great and small, ordinary and unusual, are achieved. 

We all have our quirks -- those little peculiarities that make each of us unique. Our quirks can play a role in many things that we do, including, sometimes, how we go about planning our estates. Some of us may have rather ordinary estate planning goals, such as splitting assets between one’s immediate family and/or closest friends. Other people have goals that are more… unique.

The man who invented the Pringles potato chip can left instructions that, as part of his final arrangements, he should be cremated and part of his ashes should be buried… inside a Pringles can. An aristocrat from Portugal who died in 2007 had an unusual plan, not for his final arrangements, but for the distribution of his assets. He had no spouse and no children but lots of wealth. The aristocrat underwent the proper procedural steps such that, when he died, his wealth went to… 70 strangers whose names he selected from a telephone book.

A wealthy 19th Century man from Ohio decided to leave much of his estate for the benefits of animals. Specifically, according to a 2013 report in the Naples, Florida newspaper, his plan called for his wealth to be put toward the creation of a house for cats that was “complete with dormitories, an infirmary, a rectory, rat holes, roofs for climbing and areas for ‘conversation.’” There was even an auditorium where the cats could listen to live accordion music. Famed 1960s signer Janis Joplin had a much less elaborate but decidedly unusual estate planning goal: her plan set aside the sum of $2,500 for a rousing funeral party – a “final gesture of appreciation and farewell.”       

Chances are, your estate planning goals aren’t as exotic as a resort home for felines or leaving your wealth to strangers you’ve chosen at random. Nevertheless, it is entirely possible that your planning goals do include some highly personalized elements. Maybe you have some very particular asset distributions you want to make to specific beneficiaries. Perhaps you want your family to have the bulk of your wealth, but you want your mail carrier to have your collection of “joy buzzers” because you know he’s a hug aficionado of novelty toys.

Alternately, maybe you have specific and detailed desires for your final arrangements. Some people just want to express their wishes for where they will be buried and/or who will deliver the eulogy. Other people desire to script almost everything from eulogies to pall bearers to music to… nearly everything associated with their funeral and final arrangements.

Whatever your specific or unusual goals are, your comprehensive and detailed estate plan is the way to make sure those objectives are carried out. With a detailed will or will and revocable living trust, you can take control of your legacy and ensure that, even if you have very unusual estate planning goals you want to accomplish, those goals can be realized.

Your plan helps you in two ways: it expresses your intentions and helps prevent your loved ones being left “in the dark.” Sometimes, the loved ones you leave behind may fail to do exactly what you want, not because their reject your wishes, but because they don’t know exactly what your preferences are. With your plan, you can save them the stress that often comes with uncertainty. Your passing will be difficult for them. It will be even more so if they have to guess what your estate planning preferences were.

Your plan also avoids the perils of intestacy. If you leave no plan, then the law will simply look for your closest legal relatives (meaning, typically, a spouse and/or children) and divide everything you own amongst them. If your desires deviate from that cookie-cutter type approach in any way, then you need a plan. Your plan can ensure that you not only provide for your spouse and/or kids, but that all of your goals relative to all of your assets can be realized, even if those objectives are unique or unusual.       

This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan


https://www.youtube.com/channel/UCx9HBYFIYdohfnrfW_XRkIQ       



    

Monday, November 20, 2017

Second Marriages and Your Estate Plan


Summary:  There are many things in life that can highlight the need for a well though out estate plan that states your goals and desires with clarity. One such event is your decision to marry again. If you’ve decided to re-marry, you need a detailed plan to ensure that your objectives are 

Many people find love later in life. Whether their previous marriages ended as a result of death or divorce, they’ve moved on and have now found a new partner to share their lives with. For a lot of those people, they decide to take the plunge… again… and marry. If you are someone who has, or is considering, getting married for a second (or subsequent) time, there are some things regarding your estate plan that you should keep in mind.

The main and overarching thing you should keep in mind is the importance of details and clarity in your planning. Whether your plan is providing instructions regarding your new spouse, your ex-spouse, your children or your step-children, it is important to be clear, specific and detailed. In fact, that is one of the wonderful benefits of putting an estate plan in place. Without a plan of your own creation, you are stuck with the one-size-fits-most plan of intestacy created by your state’s laws. With a plan of your own creation, you have extensive latitude in how you distribute your assets.

Generally speaking, the law says that you are not allowed to disinherit a spouse, so you’ll want to keep that in mind as you enter your new marriage. There is a narrow exception here because, if you and your spouse have pre-nuptial or post-nuptial agreements that say that you are waiving your respective rights to claim a spousal share of the other’s estate, then you are allowed to disinherit your spouse. If that’s the case, though you should be very certain that your estate plan makes mention of the pre-nuptial/post-nuptial agreement clearly and specifically. For those without these types of agreements, your spouse may either accept what you’ve provided in your plan, or “elect” to receive the spousal share dictated by your state’s statutes.

For many people marrying later in life, there are children (often adult children) of previous marriages/relationships involved. This is yet another area where detailed and careful planning is so important, especially if there are complexities or challenges in your extended family. Some people may be worried that, if they die first, then their children may get stuck receiving nothing while their step-children end up getting everything. For those with such concerns, planning with a trust or trusts may be helpful in their estate plans. Inclusion of a trust or trusts can give you the ability to ensure that your side of the blended family continues to have a voice, even after you die (should you die first.) You could choose, for example, to create a living trust that names you and your new spouse as the initial trustees but that directs, upon your death, that the trusteeship be held by your spouse and one of your children.

In other cases, though, the complexity doesn’t arise from concerns about your step-children, but perhaps your own children. Sometimes, bonds of affinity don’t always track along the same lines as blood kinship. You may find yourself estranged from your own children while loving your new spouse’s kids as if they were your own. Again, this is a time for careful and detailed planning. The law says that you cannot disinherit a surviving spouse, but that is the only person you can’t disinherit. There’s no law that says you cannot leave a child nothing. The law gives you the freedom to customize your plan as you desire as long as you are accounting for your spouse. If you want to leave distributions to your new spouse’s children and leave you own biological children nothing or very little, you can do so. These situations can be tricky, though, as they often create an increased risk of estate plan contests in court, so it is important to work with an experienced estate planning attorney to get the strongest possible plan.     


This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan



          



Thursday, November 16, 2017

4 Estate Planning Mistakes made by People seeking to avoid probate. And How to Avoid Them!

Summary: Many people seek to avoid probate, and with good reason. Depending on where you live, probate can be expensive, time-consuming and stressful. However, as with the pursuit of almost any goal, it is important, not just to plan to achieve the goal, but to go about it the right way. There are many risks that exist for unwary people who go about avoiding probate the wrong way. By engaging in proper planning, you can achieve your goals and avoid these harmful potential traps.  

In the pursuit of any goal, there are risks. Engaging in estate planning to avoid probate is no different. The fact that potential harms exist doesn’t mean that you shouldn’t plan to avoid probate; it just means that you should make absolutely certain you are planning properly to avoid harmful mistakes. Here’s is a list of four such mistakes: 

(1)  Not engaging in proper plan updating. When it comes to estate planning, and to planning to avoid probate, getting a great plan put into place isn’t enough. You can have a plan that is comprehensive, well-thought out and exquisitely tailored to meet all your goals.. However, if it just sits for decades without ever receiving a “check-up,” it still may fail to do what it was intended to do. In the years since you began your planning, many things could have changed, and these changes could negatively impact your plan’s ability to achieve your probate-avoidance goals. For example, if you’ve failed to review your plans, you may miss the fact that all of the named beneficiaries on your life insurance have predeceased you. When that happens, do you know what happens to the death benefit on that policy? It gets paid to your estate. That means that, in order to be distributed to a person or entity that you want, it has to go through probate administration. This can be avoided through proper plan reviews and updates, like executing a new death beneficiary form.
(2)  Using the wrong methods to accomplish their probate-avoidance goals. There are actually a lot of different ways to avoid probate. These different methods are not all created equally, however. For example, creating a joint ownership arrangement with an asset (or assets) can potentially meet the goal of avoiding probate. But is also comes with many serious risks. If the person you name as your co-owner becomes involved in a bankruptcy or a civil litigation case (meaning anything from a business dispute to a divorce to an auto accident,) that legal action could result in you losing that asset completely. Other avenues for avoiding probate, such as living trusts or transfer-on-death/pay-on-death designations, can give you the advantages of avoiding probate without these risks.
(3)  Mishandling your transfer-on-death/pay-on-death assets. Transfer-on-death and pay-on-death designations can be a useful part of some estate plans designed to avoid probate. They can also, however, be extremely problematic if not used properly. If you make the mistake of not naming contingent (a/k/a alternate) beneficiaries, or not naming enough of them, then you could have a problem. If your beneficiary (or beneficiaries) all die before you do, then the asset with that transfer-on-death or pay-on-death designation will go, upon your death, to your probate estate, which will likely mean going through probate before that asset can be distributed to your loved ones.    
(4)  Misusing gifting as a means of avoiding probate. Some people decide that they will attempt to avoid probate simply by giving their assets to their loved ones before they die. This strategy is filled with a variety of serious potential risks. Two of the biggest potential risks are: taxes and impoverishment. As far as taxes are concerned, any gift above a certain dollar amount is considered to be a “taxable event” by the government’s taxation authorities. That means that it may have to be reported on tax return forms and, depending on your circumstances, it may trigger tax problems for your beneficiaries. Depending on what type of asset it is, gifting it to your intended beneficiary could create negative capital gains tax consequences for your beneficiary should he/she decide to sell that asset later. As far as impoverishment, life is full of unanticipated twists and turns. You may think that you have enough wealth to give away certain assets (and live the rest of your years on what’s left,) but unexpected changes (such as unforeseen medical problems) could mean that you find yourself without enough left to meet all of your own needs.  



The key to almost any type of planning is ensuring that you’re engaging in proper planning. With an estate planning team that includes an experienced attorney supporting you, you can make certain that you can avoid probate and also avoid the pitfalls that are out there.

This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan






Monday, November 13, 2017

How a "No Contest Clause" May Be Able to Protect Your Estate Plan

Summary: There are many ways that you, as someone creating an estate plan, can try to discourage your beneficiaries from challenging your plan in court. In some cases, one option may be a "no contest clause." These clauses may be useful in some places and some circumstances, depending on state laws and the specific distributions contained in the plan. An experienced estate planning lawyer can help decide if a no contest clause is valid in your state and, if it is, whether it can help you.

Many people, as they contemplate planning their estates, struggle with the idea that their plans might lead to disappointment, disagreements and disputes that could spill over into the court system. They desire a plan that will prevent, or at least reduce the likelihood of, such occurrences.

Ideally, the best way to eliminate or reduce the possibility of such outcomes is to communicate with your loved ones in a clear and in-depth manner. An explanation of your plans that comes directly from you may go a long way toward encouraging all your beneficiaries to accept your desires and refrain from challenging your plan.

If, however, you still have concerns, you may have other options. One such option is something called a "no contest clause" (also known by the Latin phrase "in terrorem" clause.) These provisions allow you, as the creator of an estate plan, to dictate that, if any of your beneficiaries challenges your plan, they forfeit their distribution and get nothing.

It is important to understand that these clauses do come with certain limitations. For one thing, a "no contest clause" probably won't stop or discourage a beneficiary to whom you've left very little. The provision's motivational approach will only work if your beneficiary sees the distribution as valuable enough to make him think that losing it would be a significant punishment. If, for example, you leave your one estranged son $50 in your estate plan, he probably won't believe that he has much to lose by launching a plan contest, even if your plan does have a no contest clause.

Another thing to keep in mind is that not all states' laws recognize no contest clauses as valid. The law in some states says that these clauses cannot be enforced there so, even if you have a beneficiary who contests your plan, he/she will still get his originally intended distribution, regardless of the outcome of the contest case. If you have a no contest clause in your plan and your state declares these provisions invalid, that doesn't by itself, however, bar the rest of your plan from being carried out. Generally, an invalid provision such as an unenforceable no contest clause is viewed by the courts as if it was not even included in the document.

A no contest clause is but one of many potential tools that may be available to you as you plan your estate and seek to ensure that the goals you've formulated are carried out. An experienced estate planning attorney can help you determine if a no contest clause is enforceable in your state and, if so, if it may be able to benefit you.

This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan


 



Thursday, November 9, 2017

3 Reasons Why Estate Planning Is Very Important for Young People


Summary: There are many reasons why people of any age should get an estate plan. Even young people have certain unique needs that mean they can benefit from having their plans in order. Whether you have minor children, have non-traditional relationships in your life, a desire to leave money to charity or any of a variety of other reasons, chances are you have one or more reasons why you, as a young person, have an immediate need for a plan.  

It is once again summertime, which means a time of transition for many young people. Some may have just graduated high school and be headed to college. Others, who have just graduated high school or college, are transitioning into the world of work. Still others may be newlyweds, having followed the old tradition and tied the knot in June.

Whatever new doors are opening, it is important for you as a young person (or as the parent of a young person,) to step back and realize that these changes represent a great time to get an estate plan in order. Some statistical surveys show that more than three-quarters of people under age 36 have no plan. Even though you undoubtedly feel like you have a million things more important than estate planning, that thinking is mistaken. Here is a list of a few of the main reasons why getting a plan now is so important:

·         (1) Dealing with incapacitation: Unfortunately, serious medical traumas can hit anyone of any age. If one should strike you, you'll need to be prepared. The way to do that is with what's called "powers of attorney." These two documents (your power of attorney for financial matters and your power of attorney for healthcare decisions) allow you to designate the person that you want to make decisions about your money or, especially, your health and personal matters when you cannot speak for yourself. With no powers of attorney, your family may have to go through a potentially difficult, time-consuming and expensive court procedure known as guardianship.

These documents can be especially important if there are complications between you and your parents, who are often first in line to receive decision-making authority under a guardianship. In one famous 2007 case, an incapacitated man's parents obtained a guardianship over their son (who had suffered a ruptured aneurysm) and denied the incapacitated man's long-term partner visitation because they opposed the couple's same-sex relationship. The partner had to take his case all the way to the state Court of Appeals just to get to see his partner in the hospital. Whether you are in a similar situation to this incapacitated man (such as an LGBT issue or an estrangement from your parents) or have some other element making your personal/family relationships "non-traditional," estate planning is extremely important for you so that you can be in control and have the people you want making your decisions.

·         (2) Avoiding intestacy: No young person likes to think about dying, but tragically, some people do die very prematurely. Regardless of your age, if you die with no estate plan in place, whatever assets you own will go through the legal process known as intestacy. Intestacy means that your assets are distributed according to a pre-set plan devised by your state's laws. For an unmarried young person with no children, that often means than 100% of your assets going to your parents. For some young people, this might be an acceptable outcome. For many others, though, their goals might be different. Maybe you have a committed relationship partner to whom you're not married. Maybe you wish to leave part of your estate to a charity. (In either of these circumstances, intestacy would leave them nothing.) Or maybe you have an estranged relationship with your parents. For any of these circumstances (among numerous others) that make your goals something different than "100% of my assets to my parents," then you have a particularly high need for a plan.

·         (3) Protecting your children: Unlike many seniors, who often are focused on estate planning, many young have one aspect of their lives that makes them especially in need of planning: their children. If you have minor children, especially if you are a single parent, you need a plan. With an estate plan, you can designate the person you want to care for your child(ren) if you die or become incapacitated. Without this planning (which is contained in your last will and testament,) a judge will have to make this decision with no input from you.

This article is published by the Legacy Assurance Plan and is intended for general informational purposes only. Some information may not apply to your situation. It does not, nor is it intended, to constitute legal advice. You should consult with an attorney regarding any specific questions about probate, living probate or other estate planning matters. Legacy Assurance Plan is an estate planning services-company and is not a lawyer or law firm and is not engaged in the practice of law. For more information about this and other estate planning matters visit our website at www.legacyassuranceplan.com


This article written and published by:
8039 Cooper Creek Blvd
University Park, Florida 34201
844.306.5272 (Phone)
@assuranceplan
#legacyassuranceplan