Advance Directives

Friday, January 28, 2011

Press Coverage of Estate Planning this Week (January 28, 2011)

Deborah L. Jacobs of Forbes reviews new tax breaks, portability provisions and when trusts make sense under the new estate planning laws passed in December. See Married, With Assets (Jan. 27, 2011).

Joseph A. Giannone of Reuters points out that the rich have a rare opportunity to pass along millions of dollars to their children because of the re-uniting of the gift tax with the estate tax exemption level. But the current law expires at the end of 2012, so the opportunity may not last long. See U.S. Rich Get 2-Year Window on Gifts to Heirs (Jan. 27, 2011).

Ashlea Eberling of Forbes discusses how to go about writing your first estate plan, covering basic wills, advance directives, naming a guardian, beneficiary designations, and considerations for business owners. See How to Write Your First Estate Plan (Jan. 26, 2011).

Friday, January 07, 2011

Press Coverage of Estate Planning this Week (January 7, 2011)

Deborah L. Jacobs of Forbes discusses the new portability provisions included in the tax law passed by Congress in December, and asks if portability eliminates the need for trusts. She then provides several situations where trusts still make sense, and others where relying on portability alone may suffice. See Planning for a Disappearing Estate Tax Break (Jan. 3, 2011).

Ashlea Ebeling of Forbes argues there is no longer any excuse to put off estate planning, and suggests four steps to take soon: write a will, complete a financial power of attorney, complete a health care advance directive, and review the beneficiary designations on your life insurance policies and retirement accounts. See No Excuse For No Estate Plan (Jan. 3, 2011).

Thursday, December 16, 2010

NEET Tips

NEET Tips answers questions posed online to the NEET website.

What is a Living Will?

Living wills allow you to provide guidance on the types of health care you want or don’t want, and, in some states, to name an agent to make health care decisions on your behalf. In Vermont, living wills are called "advance directives" and include both the health care guidance and the naming of an agent.

You may wish to provide health care guidance in the event you are in a critical accident and thus unable to express your health care wishes to your doctors. In these sections you can agree or disagree with statements where a general condition is contemplated, such as if death is imminent, would you nonetheless want extraordinary measures used to keep you alive, or if you are in a coma and the likelihood of recovering consciousness is small, do you want to be kept alive on artificial respiration and other measures. The guidance would be used by your doctors and your health care agent, if one is named, to decide on a course of medical treatment.

The Vermont advance directive also allows you to name someone to make health care decisions for you. On this form, the “principal” is the person who fills out the advance directive document, and the person who they name to make health care decisions for them is known as the “agent.” The agent may make health care decisions for you if you are unable to do so.  This could occur if you are unconscious or are unable to understand the nature and consequences of your health care decisions. The agent’s authority to make decisions on your behalf applies only when you lack the capacity to make your own decisions. If you subsequently regain the capacity to make your own decisions, the agent’s authority ceases.

See Articles:
Updated Law Expands Advance Directive Options



Schiavo Predicament Illustrates Need for Advance Directives

Types of Wills
 

Friday, August 20, 2010

Press Coverage of Estate Planning this Week (August 20, 2010)

Seth R. Kaplan, Esq. writes in Forbes about Grantor Retained Annuity Trusts (GRAT), why GRATs are a great estate planning tool for passing money on to the next generation, and why short-term GRATs may soon be disallowed by Congress. While short-term rolling GRATs might be upended by Congressional action, mid-term and long-term GRATs are still useful, particularly when the Applicable Federal Rate (or the §7520 Rate) is low, as it is now. See The Great GRAT Debate (Aug. 18, 2010).

Joseph Nowinski, Ph.D, writes in the Huffington Post about a widower who managed to get his estate and financial affairs in order and have the necessary conversations with his children about health care directives and powers of attorney. Such conversations are not easy, but they are nevertheless important. See End of Life Planning – A Necessary Conversation (Aug. 18, 2010).

Tuesday, September 08, 2009

Estate Planning Tip of the Week

Does a Person in Their 20s or 30s Need Estate Planning?

There are levels of estate planning applicable to every age.  While many people in their 20s and 30s do not need an elaborate estate plan, they should complete a few basic documents.  The most important documents for this age focus on planning for accidents or illness, and include an Advance Directive for Health Care, which allows someone to make medical decisions on your behalf and provides guidance as to the types of medical care you want and don't want; a General Durable Power of Attorney for Finances, which allows someone to make financial decisions for you; and a HIPAA Release, which allows hospitals and medical institutions to release your medical information to family members or others.  Additionally, if you have a family of your own, a basic will is advised so that you can name who would raise your children in the event you and your spouse were severely injured or killed. 

Planning doesn't have to be complicated, but life tends to get very complicated when no planning is involved.

For more information on planning for young people, see Misconceptions About Estate Planning on the Articles Page.

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).