Legacy Planning

Friday, May 21, 2010

Press Coverage of Estate Planning this Week (May 21, 2010)

Michaela Cavallaro of Dow Jones Newswires recounts how a financial planner’s rearranging a client’s assets shortly before his death led to a significantly larger inheritance for his children. Estate planning vehicles, including an irrevocable life insurance trust (ILIT), are reported to have quadrupled the amount of money, after taxes, his four daughters would receive. See Digging Deeper to Create a Healthy Inheritance (May 19, 2010).

William Forsyth Jr., a senior fiduciary counsel at Bessemer Trust, shares five rules of thumb for legacy planning, including making children wait until at least age 28 to receive a large inheritance, distributing unequal gifts to children during life, but not after death, and making gifts during your lifetime, even if they are taxable. See William Forsyth Jr., On Rules for Legacy Planning (May 14, 2010).

John R. Sloan writes in Local Tech Wire about the basic rules and tools of asset protection. Many asset protection methods are relatively simple and effective, and include retitling assets in your spouse’s name, placing money in accounts protected by state and federal laws, and setting up business entities to segregate asset ownership. See Asset Protection Planning: Shoot Before the Buzzer (May 12, 2010).

Friday, January 22, 2010

Press Coverage of Estate Planning this Week (Jan. 22, 2010)

Ashlea Eberling of Forbes reviews charitable donations made between 2001 – 2007, and finds that as the federal estate tax was reduced, the percentage of wealthy decedents leaving charitable bequests also declined. Charitable organizations have contended for several years that allowing the estate tax to lapse, as it did at the beginning if this year, could lead to a significant reduction in overall charitable bequests. See Estate-Tax Lapse Could Hurt Charity (Jan. 19, 2010).

Robert S. Keebler, CPA, writes in Forbes about the correct ways to conduct a rollover of funds from a 401(k) into a traditional IRA, or from one IRA to another. If not done correctly, the account owner can end up paying taxes prematurely, or needing to hire an expert to untangle the ensuing mess. See The Dog Ate My IRA Rollover (Jan. 20, 2010).

Ann Pierceall of The State Journal Register (Springfield, Ill.) writes about distributing personal property to children and how to go about doing it. While deciding who gets what is never an easy discussion, it may be a comfort for parents to put it in writing. See Plan Now, Avoid Fights Later When Dealing With Parents’ Possessions (Jan. 16, 2010).

Gail Liberman writes in the Palm Beach Daily News about the most common estate planning mistakes and how to avoid them. One suggestion, don’t think that just because your family gets along great now, you need not worry about your estate. Many families who took this approach are now in court. See Estate Planning Missteps Can Be Costly (Jan. 16, 2010).

Friday, August 21, 2009

Pres Coverage of Estate Planning This Week (August 21, 2009)

Melinda Beck of the Wall Street Journal discusses health care advance directives, including how to get them, what you can specify in them, what to do with the forms when completed, and how to have a discussion about health care issues with your family and chosen agent.  See Preparing for the Final Hours (Aug. 18, 2009).

The Wall Street Journal blog, The Juggle, notes that fewer than one-third of Americans have an advance directive and urges readers to take time to get this important document prepared.  See Make Time to Create an Advance Medical Directive (Aug. 20, 2009).

Bob Carlson, editor of Retirement Watch, cautions estate planning clients to expand their focus beyond merely tax planning to include legacy planning, addressing topics such as ensuring financial security, management of one's estate, protecting the estate and managing tax issues. Too often, Carlson says, estate planning is viewed as merely tax planning.  See The Four Goals of Legacy Planning (Aug. 20, 2009).

Timothy O'Sullivan, Esq., writes in the Wichita Eagle that family harmony should be as large a goal as tax reduction when engaging in estate planning.  He includes a few areas where planning more often leads to disharmony.  See Think of Family Harmony as Well as Assets During Estate Planning (Aug. 20, 2009).

Tim Grant of the Pittsburgh Post-Gazette provides an overview of special needs trusts and how creation of a special needs trust for a child with a disability can take a major emotional weight off your shoulders.  See Special-Needs Trusts Can  Provide for Disabled Children (Aug. 18, 2009).

Thursday, May 07, 2009

Being a Parent is a Lifetime Commitment

Why do some people engage in estate planning and others don't? Some of the underlying reasons are discussed in Being a Parent is a Lifetime Commitment, located on the Articles page.

Friday, May 01, 2009

Press Coverage of Estate Planning This Week (May 1, 2009)

Michael G. Shinn writes in The Seattle Medium that estate planning is the most overlooked area of financial planning.  He quotes a funeral home director who claims that 80-90 percent of decedents don't have any estate planning.  See Your Money Really Matters: "An Encounter with the Undertaker" (Apr. 29, 2009).

Paul Sullivan of the New York Times writes about the basics of life insurance and disability insurance, and how they sometimes function as estate planning tools.  See Life and Disability Insurance: What You Need to Know (Apr. 29, 2009).

Kathleen M. Rehl writes in Investment News how a legacy letter, also known as an ethical will, can enhance what you leave to your children, and also be a profound experience for the writer.  See Passing on More Than Just Money (Apr. 26, 2009).

Kirk Shinkle of U.S. News and World Report discusses ways to efficiently make lifetime and testamentary gifts to those most important to you, including your pets.  See How to Give: Tips for Passing on Wealth to Kids, Your Charity, and Your Dog (Apr. 28, 2009).

Shaila Dani of the Associated Press discusses how the depressed economy makes this a good time to pass on assets to your children through gifts, intra-family loans, family limited partnerships and charitable lead trusts.  See Downturn Markes it a Good Time to Share Wealth (Apr. 26, 2009).

Friday, March 13, 2009

Press Coverage of Estate Planning This Week (March 13, 2009)

Dow Jones Newswires reporter Arden Dale writes that the volatility in the financial industry is prompting many trust beneficiaries to opt for new trustees, often moving from firms facing financial difficulties to more conservative trust companies.  The article includes some tips on what to look for when choosing an institution to manage a trust. See Moving Trusts Amid Churn in Market (Mar. 13, 2009).

Computerworld's Sharon Gaudin writes that the proliferation of online services has added a new wrinkle to an old problem: who gets access to your online accounts, including email, social networking sites and photo storage accounts after you die? One (online) company thinks it has the answer.  See Who Gets Your Facebook Page When You Die? (Mar. 11, 2009).

Kiplinger's Jane Bennett Clark reviews several ways to assist children in need while better positioning yourself for estate planning. For instance, low interest rates allow for inexpensive intra-family loans, and depressed stock markets mean you can give children your left-for-dead stocks to get future price appreciation out of your taxable estate. See Charity Begins at Home (April 2009).

The Wall Street Journal's Sue Shellenbarger writes about passing on family stories to children.  The article stresses the lasting effects such stories have, even if the child doesn't appear to grasp the full import at the time.  The article reinforces the view that estate planning can be much more than just financial planning.  See Life Stories: Children Find Meaning in Old Family Tales (Mar. 11, 2009) and also, Estate Planning or Legacy Planning? on the Articles page.