Estate planning is a financial process that can protect you and your family, and is a very important component of your overall financial planning. If you don’t have an up-to-date estate plan and you happen to get hurt or sick and cannot manage your financial affairs, the courts, through a guardianship, will appoint someone to manage them for you. The person they appoint might not be the one you would want to perform those tasks. Without an estate plan when you pass away, your affairs will be settled by default through a complex legal system called “probate.” The handling of…
The question of will forgery or undue influence of the person making the will is not a common question, but one that does come up periodically in an estate planner’s office. The movies have given people certain expectations when it comes to a death in the family and probating a will: a book-lined office, the entire family assembled for a formal reading of the will, shocked and angry reactions as a loved one’s fortune goes to an unknown and unlikely character… This Hollywood portrayal may be generally off base, but the basic premise is based on the very real feelings…
According to the New York Daily News, the will leaves the entire estate, which is comprised of $8 million in stocks, bonds and cash and $1 million in real estate, to Mr. Rooney's four children, Brian Rooney of Los Angeles, identical twins Emily Rooney of Boston and Martha Fishel of Chevy Chase, MD, and Ellen Rooney of London. Mr. Rooney's wife, Marguerite "Margie" Rooney, died in 2004. They had been married for 62 years. When asked about his father's estate, Brian Rooney said that his father lived "frugally" and "wasn't into fancy estate planning." So based on this statement, apparently…
Most people assume they will automatically inherit any assets their parents leave behind. However, without a will, “dying intestate”, those assets can be held in probate court and distributed according to Maryland law. Consequently, if you wish to eliminate potential issues, speak to an estate planning attorney about wills and trusts. Additionally, wills and trusts are important. However, naming people who should make your financial or medical decisions on your behalf should you become incapacitated, are the most important documents. Here are the three main documents we recommend: • Will: create a will as soon as you start acquiring assets…
A mistake in elder-law estate planning is failure to regularly review the plan. At a minimum, each client's estate plan should be reviewed every three years to determine whether changes in the client's personal life, such as health, assets or family history (births, deaths, marriages, divorces, etc.) might require changes to the plan. Similarly, changes in the law may lead to changes in the plan. It is unrealistic to expect a plan established today to be effective 10, 20, 30 or more years in the future. Over time, clients may want to change their backup trustees or plan of distribution….
It doesn’t take an experienced estate planner to say so, but “money is the root of all evil.” Unfortunately money bears with it the potential for good and bad ends alike. An experienced estate planner can help your loved ones lean to the positive when it comes to the inheritance you leave them. When it comes to trust money, and inheritances in general, you need to find a balance that will help your children become the people you know they can be. For some solid tips, check out this article and the 5 trust fund rules to help children. The…
Not so fast: With unique assets, things aren't always straightforward. More specifically, owners of unique assets – such as family businesses, legacy real estate and valuable art, coin and other collections – need to consider specialized risk management. When you own a small business, and especially if you and your family are the sole owners of a not-so-small business, it’s important to remember that personal planning and financial planning are not separate activities. Unique assets call for comprehensive planning; whether legacy real estate or a valuable collection, but this is especially true if the asset is a business. Financial Planning…
Across the board, valuation matters. Contemporaneous appraisals can be worth a lot. Retrospective appraisals — done after the fact and purporting to express value as of a date in the past — are never as persuasive as appraisals done contemporaneously. Oftentimes, proper planning is about the ability to offer proper proof. That’s my primary take-away lesson from the Ninth Circuit Court of Appeals and the case of Estate of Petter v. Commissioner, as assessed in a recent Forbes article. As many of you appreciate, when giving away assets it is important to get the most bang for your buck and…
To follow in [Reverend Crummey’s] footsteps, set up a trust and have it buy a life insurance policy on your life. Someday when you die, the trust will receive the insurance proceeds and pay them out to the beneficiaries listed in your trust. When you’re looking to pass on significant assets, a trust is a powerful tool. Quality is important. While a “crummy” trust won’t cut it, a “Crummey” trust just might do the trick. Poor puns like this and more abound in a recent Forbes article about “Crummey trusts” I thought you might enjoy. A “Crummey trust” – so…
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