Friday, June 25, 2010

Press Coverage of Estate Planning this Week (June 25, 2010)

Deborah L. Jacobs of Forbes points out that estate planning is usually more important for women than for men, in part because women live longer and tend to marry older mates. In addition, because women typically have lower lifetime earnings, they will be more likely suffer the consequences of poor money management in later years if proper estate planning isn’t accomplished before their husband dies. She offers six issues for women to consider regarding estate planning. See Six Estate Planning Questions for Women (June 22, 2010).

Liz Davidson contributed two articles to Forbes, the first providing some tips on how to leave a legacy during your lifetime and at death. It begins with defining your values, encourages teaching life’s lessons, and identifying a charitable organization you wish to support after your death. See Estate Planning, As Told By Clint Eastwood in ‘Gran Torino’ (June 21, 2010).

In the second of Davidson’s contributions, she discusses issues to consider when leaving an inheritance to beneficiaries who may not be old enough or financially savvy enough to use it wisely. Actions to consider include educating your heirs and giving them some assets now to build their experience in managing money, limiting access to principal through use of trusts, and maintaining flexibility through the use of trustees who can oversee asset distributions after you die. See Giving and Inheritance the Right Way (June 24, 2010).

Laura Saunders of the Wall Street Journal raises the question of whether the federal government could reverse course and later tax Roth IRAs. If that were a valid fear, then converting a traditional IRA to a Roth IRA could end up being a big mistake. Her conclusion is that while possible, a later tax on Roth IRAs is highly unlikely, and today's risk may be outweighed by the benefits of Roth IRAs, which can be substantial. See Is a Roth IRA Safe From Taxes? (June 18, 2010).