New Head of Community Foundation Named

Friday, July 31st, 2009

Over the years, Lynne Berry has been very much involved with several philanthropic groups.  Now, she has been named as the Huntsville/Madison County Community Foundation’s first executive director.  This means she’s heading an organization that’s serving all nonprofits.  She said, “There’s a lot of challenges and work in this new job but I have the opportunity to be in an umbrella organization to benefit all nonprofits and I like to learn new things.”

One of the first jobs of Berry is to educate the people about all benefits (especially tax) as well as give and educate potential donors about other community needs that would be good for them.  Community foundations can work with other donors to create funds or meet a specific community need.  These funds can either be given immediately, pooled with others, or held indefinitely.

The foundation’s chairman, Chris Russell, said that the role of the foundation is to make sure that people find it easier to make a donation or charitable gift.  Russell, who work with Huntsville Wachovia Bank in wealth management said, “There’s a difference in planned giving and annual giving.  For planned giving, what we’re focusing on has always been to raise the bar and look for more opportunities.”

Tags: charitable gift, Chris Russell, community foundation, donors, Lynne Berry, nonprofits, Planned Giving
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Future Scholar Aided by $355K donation

Friday, July 31st, 2009

Allen Singleton, alumnus of Eastern Shore University of Maryland recognizes how his alma mater meant to him.  In return, he gave a $355,000 donation that will create an endowment scholarship.  This would be titled Singleton-Stone Endowed Scholarship Fund and will have its first recipients the following year of Singleton’s death (now 76 years old).

The school’s director of planned giving and alumni affairs, Kimberly Dumpson, said “This is someone with a long history that started with the university.  Fortunately, he believes that he owes many things to the school.”

Singleton was named the largest school alumni contributor for the university.  In fact, it’s not the first time that he gave a donation.  For the past three years, two other endowments named Singleton Leadership Fund and Singleton Endowment Fund for Education and Business were created - this makes his donations total over $500,000.

Singleton considers business professor Vernon Stone as a mentor.  Their scholarship will be given to any graduate or undergraduate who demonstrate academic excellence.   ”The school is always grateful to those who make philanthropic contributions and demonstrate appreciation for high-quality education to enrich the lives of students,” said Thelma Thompson, University President.  “Through this very special gift, the scholars of Singleton-Stone will have the opportunity to experience the same level of achievement as their benefactor,” she added.

Tags: Allen Singleton, donation, Eastern Shore University, Kimberly Dumpson, Maryland, Planned Giving, Singleton-Stone Endowed Scholarship Fund, Thelma Thompson, Vernon Stone
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Transferring Business Assets to Children

Thursday, July 30th, 2009

There are several methods for business owners to transfer ownership or assets to their children without the high cost of federal gift tax.  Some methods would include providing numerous money transfers until the exclusion limit, setting up family limited partnership, and setting up a family trust that will receive transferred assets.  A business owner like you should know when would be the right timing to step out of your family business.  Here are some tools you can use:

*Buy-sell agreement - this is a legal contract prearranging your business sale interest with a willing buyer.

*Outright sell - you can receive cash and use it to maintain your lifestyle through selling your business interest to any of your family members

*Grantor retained annuity trusts (GRAT) - a sophisticated succession tool in business which uses irrevocable trusts to transfer assets while at the same time retaining a specific income payment for a particular set of time.

*Private annuities - sale of property wherein the buyer makes an unsecured promise that they will make periodic payments to the seller for the rest of his or her life.

*Family limited partnerships - when you transfer ownership of your business to this partnership, control of general partnership interest will still be with you and you can gift this interest to your family members.

Tags: assets, business owners, buy-sell agreement, family limited partnerships, family trusts, famly business, federal gift tax, GRAT, outright sell, private annuities, trust
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Raising $5.1M in a Trust

Thursday, July 30th, 2009

Everyone worked the negotiations quickly when Raymond family offered to sell Maplecroft Farm.  It’s their privately owned property consisting of 250 acres of scenic views, wetlands, farmlands, and a little mix of wildlife habitat.  After 70 years, the property still has high conservation value and the development rights to various conservation organizations are for sale.

Trust for Public Land is the national nonprofit leading this fund-raising effort in preserving the property.  It has to raise $5.1 million until February to purchase conservation easements in order to keep the farm’s permanent open space.  Pending availability and approvals, the funds would come from contributions and private donations.   Currently, there’s $3.4 million in their account and most would go to purchase Maplecroft easements.

Whitney Hatch, director of Trust for Public Land, leads the fund-raising effort.  Fortunately, a Boston developer, Neil St. John Raymond, continuously living on the property approached town and conservation organizations first.  He made it clear to them that the land needs to be preserved as an open space.  As part of agreement, however, portions of this site will be used as public trail for horseback riders, hikers, etc.  Raymond declined to comment when asked on his future plans if Trust for Public Land would not be able to meet the February deadline.

Tags: Maplecroft Farm, Neil St. John Raymond, Raymond, trust, Trust for Public Land, Whitney Hatch
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President Barack Obama Recommends a Living Will

Tuesday, July 28th, 2009

Recently, President Barack Obama urged all Americans to prepare a living will.  These wills allow people to specifically give instructions if they become incapacitated or ill to make health decisions.  The President mentioned his own family for an example.  He said that he and Michelle Obama (First Lady) have living wills as well as his grandmother who recently died (last November).  In a health care online forum sponsored by AARP, he said “You wouldn’t want somebody else to make those decisions for you.  Therefore, I’d encourage everyone to have their own living will.”

To get one, you can obtain forms from hospitals.  Also, there’s a program of National Hospice Palliative Care Organization called Caring Connections that’s focused on improvement of end-of-life care.  They offer free downloads of living will form or advance directive at its web site for each state.

Common mistakes that people make in their living will is the failure to update it if it’s done years ago, failure to update when they change states, and not getting power of attorney for health care.  When you go to a lawyer, he or she can give you helpful advice, teach you about medical issues arising from it, or warn you about what will happen when you don’t have one.   

Tags: AARP, attorney, Barack Obama, Caring Connections, health care, living will, medical issues, Michelle Obama, mistakes, National Hospice Palliative Care Organization, power of attorney, President, Wills
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Preparing for your Final Hours

Tuesday, July 28th, 2009

For the moment, forget about health-reform debates.  You should have a living will that specifies the kind of care for your life if you are unable to speak for yourself.  Ethicists, lawmakers, and doctors have been urging the Americans to do this but in nursing homes, less than half have done so.  Overall, less than one third of American adults also have a living will.

According to a report from Rand Corp. in Congress, many people are baffled by legalities and don’t understand the consequences and options.  In addition, patients and doctors alike are reluctant to bring up the subject of death.

Advance directives are truly for the living as well as for the dying.  Without your specific instructions, your family members may not be able to decide if they would keep you artificially alive, let you die when you have no hope for recovery, or what level of disability you would like to live with.

A registered nurse at Inova Hospital (Falls Church, Va.), Audrey Seeley, said “Everyone knows they will soon die, but it’s scary to think how.  I see many incapacitated patients say that they don’t care what happens to them.  But their family really does.”

Tags: American, Audrey Seeley, Congress, death, die, disability, Inova Hospital, lawmakers, legalities, living will, Rand Corp, Wills
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Are there Expiration Dates for Estate Plans?

Monday, July 27th, 2009

There is no expiration for estate plans.  However, major life events should prompt you to review your plan and make sure that your wishes are still enforced.  Examples of these common life events include purchase of a home, death of a loved one, birth of a child, divorce, or marriage.

If you’re married, there are certain considerations that you should think about in creating an estate plan.  First, you would need revision of your trust to include your existing spouse.  Also, you may acquire a power of attorney for managing your finances if ever you’re incapacitated or unable to manage any of your financial affairs.  Therefore, a well-rounded estate plan must include a power of attorney for health care which appoints a trusted individual (typically your spouse) to make medical decisions if you’re unable to do so yourself.

While for remarriage, you need to revise your will or trust immediately.  Any gift to your ex-spouse may not be valid.  So how will the court decide who to give it to?  Therefore, you should make this change yourself so that you’re sure to carry out your wishes when you pass away.  Same goes to your children.  Appointing a guardian for the minor ones would protect them even when you’re gone.

Tags: attorney, estate plans, expiration, married, power of attorney, remarriage, trust, will
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Estate Planning for Ranchers and Farmers

Monday, July 27th, 2009

When your family is engaged in agriculture, you have certain considerations to think of. You should consider if you will qualify for valuation deductions, divide the land into separate parcels, or make a charitable donation.

Practically, subdividing the land to give to children can raise both legal and practical questions. Legal questions include the minimum acreage requirements (whether it can be subdivided into parcels), deed of trusts (whether there are existing encumbrances that will affect future financing), and possible latent contaminations on lots that might become a responsibility to be cleaned up by your heirs.

Practical questions, on the other hand, include the dependability to water (or whether it’s feasible to subdivide the land), one part is locked (or access to roads), and distribution of electricity (or access to utilities). In addition, division of mineral rights and differing values should also be factored into your estate plan.

Finally, estate planning for ranchers and farmers (including vineyard owners) also involve business succession similar to closely held business families. This usually entails life insurance and buy-sell agreements. Moreover, predators, creditors, protecting children’s inheritance against divorce, Medi-Cal planning, and blended families’ estate planning may also be involved here.

Tags: agriculture, deed of trusts, Estate Planning, heirs, legal, parcels, practical
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Can you Bequeath Major Assets without an Attorney?

Sunday, July 26th, 2009

For the first time, Illinois residents can name the person who will receive their car and be given a right to the title in case they die.  This amendment to Illinois Vehicle Code was mandated to designate a beneficiary when applications for the titles and certificate of title were made.

However, it’s difficult to quantify the number of consumers that took advantage of this designation.  Some area car dealers in Peoria didn’t even know of this change in law or whether this option needs to be included on applications for title on new vehicles purchased.

The idea to amend the code came from a resident of Missouri, where there’s a similar policy to designate the beneficiaries on car titles.  He consulted Rep. Jay Hoffman to promote this in Illinois.  Hoffman said, “It made sense.  This would be an easy and inexpensive way to transfer your property.”

However, Stuart Borden, 10^th Judicial Circuit chief judge said that it would not be prudent to name your beneficiary this way even if it’s less costly and more convenient compared to hiring an attorney.  “With less restriction and less formality, these beneficiaries may be subject to manipulation.”  Wills often involve third parties and require signatures of witnesses to oversee the interests of the person bequeathing properties while these forms require nothing more than a signature to designate or change the beneficiary.  

Tags: attorney, beneficiary, Illinois car, Illinois Vehicle Code, Jay Hoffman, judge, Missouri, Peoria, Stuart Borden, Wills
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Funding Goals reached by Goodwill Industries

Sunday, July 26th, 2009

Since October, Southwest Florida Goodwill Foundation is looking to assist the goal of Goodwill Industries to help disadvantaged people.  According to vice-president of development, Carolyn Johnson, Southwest Florida’s Goodwill Industries has been helping the community for over 40 years.  While most people know Goodwill stores, there are many who don’t know about their services to the indigent or disabled.

Glades, Charlotte, Hendry, Collier, and Lee are the counties being benefited by the foundation in four areas of fund-raising efforts - general giving, planned giving, job skills training division, and youth division.  Johnson has been spending some time to educate the whole community about the foundation.  She said, “It’s a kind of vehicle that will set aside funds to keep services going and help the community.”

Goodwill programs include creation of low-income housing for disabled people, service to students with disability, and transportation for employed people or those seeking employment.  Their career development programs also offer job placement and coaching.

Tom Feurig, President and CEO of Goodwill Industries said, “The foundation ensures that the services and programs will continue to help individuals as much as possible.  Anybody interested to join the community and donate to the foundation may do so.”

Tags: Carolyn Johnson, Charlotte, Collier, donation, Glades, Hendry, Lee, Planned Giving, Southwest Florida Goodwill Foundation, Tom Feurig
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Five Key Estate Planning Documents

Saturday, July 25th, 2009

Avoiding the creation of an estate plan may be due to dismissal of subjects such as taxes, incapacity, and death.  However, the fact still remains that you need to protect your wealth and your loved ones when you’re gone.  So here are five documents that you need to have while you’re still active:

*Will - these are simple instructions to distribute your assets to the beneficiaries after death.  You need to appoint an executor who will designate your assets, while you need to designate a guardian for minor children.

*Durable Power of Attorney (POA) - power of attorney is simply a legal document that will name another person who will act legally on your behalf.  A regular POA terminates upon a person’s disability or death.  However a durable POA will continue beyond disability and will only terminate upon death.

*Health Care POA - same as durable POA but it will authorize someone to decide for you in medical situations in case you’re unable to do so.

*Living Will - expresses your intentions for use of life-sustaining measures in a terminal illness.

*Revocable Living Trust - a type of trust that is often used in estate plans.  When you transfer assets to a revocable trust, your beneficiaries will receive the income or principal according to the terms of the trust.

Creating an estate plan will not be an overwhelming task if you work with experienced professionals such as a CPA, financial advisor, and an attorney,

Tags: attorney, death, estate plan, legal, power of attorney, revocable living trust, wealth, will
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Create your Estate Plan Today

Saturday, July 25th, 2009

Better Business Bureau reminds people that estate planning is not just for the wealthy.  They advise consumers to create an estate plan if they have something of value to pass on to their loved ones after death.  According to surveys, 55% of adults don’t want to set up an estate plan because either they don’t want to think of dying or they believe that they don’t have any assets to pass on.

However, if you don’t give your final instructions, nobody would know where your money should go or how will your children be taken cared of.  Do you want to leave these important decisions to the state?  If not, it’s important to create an estate plan and ensure that your wishes will be followed.

Creating an estate plan may be simple if you just draft a will.  But it can also be complex when you’re trying to set up a trust or a living will.  A will is something that you create to allocate your assets and establish guardianship of your children.  On the other hand, a living trust could set up conditions to distribute your assets while reducing inheritance taxes and avoiding probate.  Finally, a living will communicates a person’s desire for lifesaving measures in case there’s mental incapacity to decide on an emergency medical situation.  To help you draft these important documents, make sure that you consult an estate planning attorney.

Tags: attorney, Better Business Bureau, estate plan, estate planning attorney, living trust, living will, wealthy, will
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Charities Turned Away by Banks

Friday, July 24th, 2009

Planned giving programs are steadily gaining popularity with donors and their charities.  However, banks that service them are slowly turning away.  In fact, there are already key banks that retreated from this financial management area.  They refuse to take charities that have less that $5 million (some even $1 million) in assets.  And there are some that are dropping clients who do not make the cut.

This move is squeezing the smaller organizations, wherein many of them are dependent on banks to manage complex programs and they rely on planned giving vehicles to get donations.  Today, over 50 charities scramble to find new banks since BNY Mellon Wealth Management gave clients a deadline (until Sept. 1) to select another manager.  BNY Mellon is one of the biggest bank players in the investment arena of planned giving.  Likewise, other banks like Wachovia and Merryll Lynch that have longtime philanthropic practices are now folded into merged operations.

A few charities try to join forces in order to gain back clout with banks.  A New York attorney serving on the professional advisory committee of Charities Support Foundation, Andrew Grumet said, “These days, you need to have real money to gain a financial institution’s attention.  That’s just the harsh reality.”

Tags: Andrew Grumet, attorney, banks, BNY Mellon Wealth Management, charities, Charities Support Foundation, donors, Merryll Lynch, New York, Planned Giving, Wachovia
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Holding Company Sought by Mount Airy

Friday, July 24th, 2009

With a holding company’s aid, Mount Airy Casino Resort expressed their interest to transfer casino ownership.  It will be transferred from Louis DeNaples to his daughter Lisa DeNaples D.M.D., who will head a family trust.

According to Michael Sklar, Mount Airy attorney, “The purpose of this holding company is to ensure a smooth casino operations financing during the transfer.”  Under the plan, a Dunmore businessman, Mr. DeNaples, would sell to the holding company all his interest in Mount Airy.  And then Dr. DeNaples’ trust will purchase all these interests from the holding company.  Once this sale is completed, Mr. DeNaples will no longer manage or control the holding company’s affairs.  Dr. DeNaples, who is also the chief operating officer of the casino, would be joined eventually by her siblings Donna Dileo and Louis DeNaples Jr., M.D. in managing the trust.

This transfer occurred due to the perjury charges filed against Mr. DeNaples by the district attorney’s office (Dauphin County).  The charges were dismissed in April after 16 months of license suspension.  However, part of the DA’s office agreement is the pledge to turn over Mount Airy’s control to the trusteeships that should be run by his children.  

Tags: attorney, Dauphin, Donna Dileo, Family Trust, holding company, Lisa DeNaples, Louis DeNaples, Michael Sklar, Mount Airy Casino Resort, perjury, trust, trusteeships
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Animal Charities ask for Helmsley’s Billions

Thursday, July 23rd, 2009

A petition that concerns Leona Helmsley’s will is claiming that the office of Attorney General Andrew Cuomo issues incorrect analysis and a surrogate judge has used faulty reasoning before millions in grants were paid out by the estate’s trustees.

First of all, the major beneficiary in her will (worth $12 million) is her beloved Maltese named Trouble.  However, the dog was mentioned only once in the petition and then another in the supporting documents.

Three animal protection groups filed the petition saying that the money of Mrs. Helmsley is not being spent on dogs as mentioned in her will.  These three groups are Maddie’s Fund, American Society for Prevention of Animal Cruelty, and Humane Society.  They accused the estate trustees of Mrs. Helmsley of a “scheme to deprive welfare charities to dogs.”  Her fortune is estimated to be around $5 billion but only $1 million were earmarked for organizations taking care of animals.

A professor of law and philanthropy at New York University, Harvey Dale, said that this lawsuit may face significant hurdles since donors, beneficiaries, and potential beneficiaries don’t have any standing to intervene.  Maddie’s Fund president, Rick Avanzino, acknowledged that there’s difficulty in challenging trustees because their organization was not even named in the will of Mrs. Helmsley.  But still, they will push through with this lawsuit to penalize the trustees who chose to ignore the wishes and direction of their benefactor.

Tags: American Society for Prevention of Animal Cruelty, Andrew Cuomo, Attorney General, estate, Harvey Dale, Humane Society, law, lawsuit, Leona Helmsley, Maddie's Fund, petition, Rick Avanzino, Trouble, trustees, will
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Deal with Estate Taxes: Plan Ahead

Thursday, July 23rd, 2009

The golden rule in estate planning is: “Do it before you need it.”  Prudence actually suggests that we plan ahead because only a few people know when death can fall upon us.

In Oregon, there may be some last-minute opportunities for the residents despite its imposition of death tax on top of federal estate tax.  When federal estate tax exemption has been scheduled to dramatically increase, many states including Oregan became nervous since the federal exemption 10 years ago was $600,000 with 55% top marginal tax rate on the excess.  Simply put, the feds collect a large tax from a decedent’s estate - this includes taxable gifts that are made by decedents, and then, throws a portion back in state credit form.

Most states simply accept this “throwback” by imposing tax on its residents - this is the exact amount of credit permitted by feds.  However, when the feds have lowered the rates and increased exemption (currently $3.5 million and 45% flat tax rate), the state credit was also phased out.  Oregon reacted by simply enacting its death tax.  In other words, if the gross estate of the decedent exceeds $1 million (fixed Oregon exemption today), the excess will be taxed by the state.

Tags: decedent, Estate Planning, estate tax, feds, Oregon, plan, tax
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Avoid getting burned by Statute of Limitations

Wednesday, July 22nd, 2009

This is the scenario: about 10 years ago, someone was named as executor of the will of her father and stepmother.  Then, the father passed away at age 86 three years ago.  However, the child did not know who was the attorney nor was given a copy of either wills.  Several months passed and they sold their home.  The stepmother sold all the family’s belongings in a yard sale and eventually moved out of town without notifying the children.

Since the father owned a business before retiring, he had accumulated a great deal of wealth.  However, the stepmother moved to another town and ceased all communication with the family after the cremation.

First of all, you shouldn’t wait for three years after death before beginning the estate process.  The fact that you were named as executor means that you have the right to be appointed as personal representative.  So if the second wife should open the estate, you would be given notice.  Also, if the father placed all funds in the joint accounts and transferred the home to the wife, nothing would be left to pass under the will.

In this case, there is huge delay in tending to business causes.  It causes several problems because of the statutes of limitation created to end the litigation.

Tags: attorney, estate, executor, litigation, personal representative, stepmother, will, Wills
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Blended Families’ Estate Planning

Wednesday, July 22nd, 2009

Richard Barnes witnessed the negative effects of a poor estate planning.  The families are upset, frustrated, and confused - they are forever shattered by it.

Even more confusing are those people in blended families - those families formed from second or third marriages - these are more difficult and precarious situations.  Barnes said that there are no instruction manuals for second marriages, and this time, you need to deal with new in-laws and step-children.

Amidst a larger cast of individuals, renewed estate planning could clarify your wishes.  This renewed estate planning could purchase additional life insurance, update a will dealing with prior relationships and reflect the current dynamics of new ones, etc.  Therefore, you need to learn various things such as dealing with heirlooms, how to select the best lawyer, etc.

Barnes further added, “It’s not just another marriage.  Somehow, it would seem that there are numerous challenges and geometric progression of personalities from first to second marriages.  There is a large amount of emotional issues surrounding people in second marriages.  And if clients would not think of these things (especially what to do with the properties and estate), there would be adversarial impact.  Only planning ahead would make it right.”

Tags: blended families, Estate Planning, lawyer, marriage, Richard Barnes, second marriage
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Planned Giving is a Long-term Solution

Tuesday, July 21st, 2009

Planned giving can stabilize income and nonprofits understand the benefits derived from it.  So how will you know if the planned giving you chose is the best one for your nonprofit?  It’s a question asked by many organization executives and board members.  Since charitable giving is down, more and more nonprofits would be turning to planned giving instead.  One size certainly doesn’t fit all, but here are questions that you can ask and find out the answers yourself:

*What is the meaning of planned giving for you?

*Why would your nonprofit need a planned giving program?

*What do you need in order to run your planned giving program?

*What are the possible pitfalls?

*When would be the best time to start your own planned giving program?

*What are your reasonable expectations and how long will it take to see the results?

*How will you judge success?

To research more on planned giving alternatives, you can attend seminars and do your own research.  However, it would be best to consult an attorney specializing and experienced in planned giving.  They can give you actual scenarios and examples to guide you in setting up your own program.

Tags: attorney, charitable giving, income, nonprofits, Planned Giving, program
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Over $10 Million for McDowell Charities Trust

Tuesday, July 21st, 2009

McDowell Family Trust, which is a charitable trust set up by Thomas John Rider McDowell and Victoria Cross Knight-McDowell in 2005 contributed more than $10,000,000 to several charities including Hospice organizations, Breakthrough Men’s Community Workshop, and Lawrenceville School Camp.  The largest recipient of this trust includes inner city children’s 100-year-old camp based in New Jersey and Warren County.

Lawrenceville School Camp has 54 acres of land owned by Lawrenceville School’s student body.  This is a boarding school in the east coast attended by Mr. McDowell.  He said “Victoria and I felt that it was important to give a helping hand to kids who are lacking the opportunities we’ve had.”  In addition, Victoria said that, “we’ve selected Hospice because of the invaluable contribution they are giving to America.  Also, we’ve seen their indefatigable efforts and beautiful spirit first hand.”

Mr. McDowell is Pine Bros. company owner with interests in entertainment and organic farming.  He recently made “The Mercy Man,” which is his feature film-directing debut.  While Mrs. McDowell is the former owner and founder of Knight-McDowell Labs, the makers of Airborne formula.  It also created Airborne Teacher’s Trust Fund, distributing $250,000 every year to music and art programs across public schools in America.

Tags: Breakthrough Men's Community Workshop, Family Trust, Hospice organizations, Lawrenceville School Camp, McDowell, New Jersey, Thomas John Rider McDowell, trust, Victoria Cross Knight-McDowell, Warren County
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Jackson’s Movie Deal may strengthen his Estate

Monday, July 20th, 2009

Business executive John McClain and attorney John Branca are talking with AEG Live, the exclusive promoter of Michael Jackson’s supposed London concerts.  The late Jackson was preparing for these concerts before his sudden death on June 25; nevertheless, the videotape of his rehearsals could still be used to create a DVD or movie that would be sold to millions of fans.

Reportedly, Sony will pay $50-$60 million for the footage and this agreement would be announced any day from now.  Legal experts are saying that this deal could strengthen McClain and Branca’s control of Jackson’s estate, since they’re proving to the judge that they have the acumen in handling Jackson’s business.

At stake here is the control of King of Pop’s estate that is believed to be $200 million net of his $500 million debt.  Initially, Katherine Jackson, his 79-year-old mother was given temporary control; however, a 2002 will that Jackson signed have surfaced naming McClain and Branca as executors.  Therefore, a judge temporarily transferred control to them while the attorneys of Katherine Jackson are discussing to challenge their appointment.

The hearing is set for August 3.  Moreover, an attorney expert in legal matters including wills said that McClain and Branca clearly have an advantage since Jackson nominated them as executors in his will.    

Tags: AEG Live, attorney, attorneys, estate, John Branca, John McClain, Katherine Jackson, King of Pop, legal, Michael Jackson, Sony, will, Wills
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Estate of McNair in Limbo

Monday, July 20th, 2009

Former quarterback of Tennessee Titans, Steve McNair, left no will.  As a result, one of his son’s family (the one born before his marriage), was laying claim to their inheritance.  This could set up one lengthy legal battle.

David Callahan, Nashville attorney of Mechelle McNair (Steve’s wife), said that she’s determining the net worth of her husband.  A probate court judge in Davidson County granted her 60 days to complete this process as a response to her emergency petition.

The probate court filing states that the heirs are Mechelle McNair and her sons Trenton, 6, and Tyler, 11.  However, she can’t confirm whether the other two older sons of her husband are actually his.  Her husband died suddenly as he was shot on July 4 by a woman he was dating.

Steve McNair’s oldest son is Steven McNair Jr., Oak Grove High’s senior star wide receiver while his second son is Steven O’Brian McNair, 15-year old.  Cotina Feazell, the mother of Steven McNair Jr. did not find any records that the quarterback completed any estate planning or set up trust funds.

Attorneys say that even if the other women were not married to McNair, his sons are still eligible to the inheritance under state law.  There might be certain blood tests or other issues but all they need to do is hire an attorney to make a claim.

Tags: attorney, court, David Callahan, Estate Planning, inheritance, law, legal, probate, son, Steve McNair, Tennessee Titans, trust funds, will
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Honoring Wyoming Philanthropists

Sunday, July 19th, 2009

The Planned Giving Council of Greater Cincinnati recently honored Paul Keidel and Dorothy Whitley Lang for their generosity to nonprofits in the area.  Lang has provided leadership for the past 50 years in numerous Wyoming organizations.  In fact, she’s completing her second term/sixth year as trustee of Wyoming School Foundation.

Her participation and commitment as major donor and volunteer to the foundation has been inspiring and consistent for the organization.  To reciprocate, they nominated her for this award.

The Endowment for Performing Arts of Dorothy W. Lang and Albert V. was a gift that’s made out of contribution to the students and appreciation for the school.  This endowment provides annual distribution to at least one performing arts program of the Wyoming City Schools.  These are orchestra, band, vocal music, and drama.

On the other hand, Keidel was a retired CPA who has subscribed to Pops and symphony for over 40 years.  He was nominated by Cincinnati Symphony Orchestra.

The council gave 20 honorees with Voices of Giving Awards - their gifts help ensure that diverse causes will be possible for the future.  The president, Andrea Herzig, said “Since Greater Cincinnati is a caring and generous community, non-profit organizations are important in our lives.”

Tags: Andrea Herzig, Cincinnati Symphony Orchestra, Dorothy Whitley Lang, endowment, Endowment for Performing Arts, Greater Cincinnati, Paul Keidel, Planned Giving, Voices of Giving Awards
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A Unique Legacy

Sunday, July 19th, 2009

In 1963, the Grover family bought a property just outside of Hamilton and made it into a ranch named Sawtooth Ranch.  It’s a big meadow where you can have sweeping views of Bitterroot Mountains and hear the Sawtooth Creek murmur.  Since that day, there were three generations of Grover family working, exploring, and loving this 840-acre of grass and timber.

Other than a few steel-post fence lines, a caved-in barn, and a new house, nothing has changed on this place for decades.  The present owners, Joe and Carrie Grover, decided to make sure that the ranch would never be developed. 

Ravalli County Commission approved this by using $550,000 of Open Lands Bond monies of the county to purchase the conservation easement that would keep Sawtooth Ranch intact forever.  Rocky Mountain Elk Foundation donated $20,000 toward the easement cost while the Grovers generously donated $350,000.

Executive director of Bitter Root Land Trust said that it’s a unique opportunity to protect the ranch from future development.  While Joe Grover said, “It would take time to build a trust necessary for this, and we appreciate the efforts of Bitter Root Land Trust for putting together this easement.  They’re wonderful to work with.”

Tags: Bitter Root Land Trust, Bitterroot Mountains, Carrie Grover, Grover, Joe Grover, Open Land Bond, Ravalli County Commission, Rocky Mountain Elk Foundation, Sawtooth Creek, Sawtooth Ranch, trust
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Asset Descent and Distribution in Illinois

Saturday, July 18th, 2009

Every state has its own descent and distribution law which applies if somebody passes away without a will (intestate).  Generally in Illinois, half of the estate would pass to the surviving spouse and then the other half would be equally divided to the descendants (like children, etc).

For assets with named beneficiaries already or those titled jointly will not be part of the estate of a decedent spouse; therefore, these would pass directly to the beneficiary or joint tenant.

However, if there are assets titled only to one spouse, it could create a problem.  For instance, your home (or any asset) was titled to your name only due to credit issues, or maybe you already owned the asset even before marriage, then the surviving spouse would only get half of your home and the other half would be inherited by the children.

If this is the case, the surviving spouse needs to get permission from the children before selling the house and would give half of the proceeds to the children after the sale.  Typically, this is not what spouses would intend to do; however, if one of them dies without a will, then their intention will not be admissible in court.    

Tags: beneficiaries, beneficiary, descendants, Illinois, intestate, law, will
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Draft an Advance Directive to be Prepared

Saturday, July 18th, 2009

Nobody would like to spend time mulling over their death.  However, it’s important to create an advance estate plan that will give you control over any situation when the time comes that you can’t voice your opinion anymore.  Estate planning attorneys’ advice: “You can’t change the fact that you will die.  And if you have the legal paperwork properly filed, you’re just showing that you respect the people you are leaving behind - you’re not putting them through stress and emotional turmoil than necessary.”

Fortunately today, anyone can draft an advance estate plan, which is a legal document specifying the things you want to happen when you’re no longer able to provide consent.  Aside from the distribution of your assets to beneficiaries, these advance directives would typically cover the situations you want when medical staff would attempt to revive you or the kind of life support you prefer to be put on.

At age 25, maybe you would want them to revive you at full blast (even hit you with lightning if possible) but at age 95, you may have a different perspective since you would not want to reach 100 years old hooked to these machines.  Therefore, advanced directives such as these would legally allow you to specify these things before the actual emergency situation when you’ll be unable to give directions yourself.  

Tags: assets, attorney, attorneys, beneficiaries, death, directives, emergency, estate plan, Estate Planning, legal, legal paperwork
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Wais Honored for Planned Giving

Friday, July 17th, 2009

Recently, the Planned Giving Council for Greater Cincinnati honored Margaret Berning Wais for her selfless foresight and generosity.  Wais decided to include St.Rita School for Deaf in her trust as a legacy to provide for generations to come.  In return, the nonprofit based in Evendale nominated her for “Voices of Giving Award.”

Wais said that the school has been a part of her life since her two grandfathers, Peter Bergman and Joseph Berning, were involved with the school’s inception since 1915.  In fact, her fondest memories of childhood includes following her father’s shirttails on St. Rita’s grounds.  She said that maybe the saying “it would take a village to raise one child” could have come from her family since it took her family four generations with the help of the entire Cincinnati community to raise the school of St. Rita.

The Planned Giving Council honored 20 people who gave gifts to help diverse causes in their community.  Collectively, these people may have committed to give millions, but the most important thing of all is that they’re committed to leave a lasting legacy.

The Planned Giving Council for Greater Cincinnati is a professional association made up of individuals whose purpose and life work is to help ensure viability of charitable organizations.

Tags: Greater Cincinnati, Joseph Berning, legacy, Margaret Berning Wais, Peter Bergman, Planned Giving, Planned Giving Council, St. Rita School for Deaf
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Proper Way to List Assets in your Trust

Friday, July 17th, 2009

Most trusts would include an asset list being transferred to it (sometimes called Schedule A or Exhibit A).  This list would be for the benefit of the successor trustee, who’s the person knowledgeable about the contents of your trust.  Merely listing a home or bank account on the list does not place assets in the trust.

Also, it’s important to keep the asset list current.  It has to be updated and revised continuously, perhaps with a photocopy of asset list given to the successor trustee.  The values of the properties or balance of the accounts don’t need to be included.  On top of listing the assets, you should also transfer the asset title to the trustee - this is called “funding your trust.”

Also, a deed given to “Smith Family Trust” would not be sufficient because there might be numerous Smith family trusts out there.  The trust deed should state “Mary Smith, trustee of Smith Family Trust u/a (under agreement) July 17, 2009.” 

Sometimes, the initial “u/d/t” is used, which is short for the words “under declaration of trust.”  In summary, the individual trustee holding the legal title must be identified as well as the date of trust so that the bank could clearly determine who has legal rights or access to the trust.  

Tags: assets, deed, funding your trust, successor, trust, trustee, trusts
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Online Wills are Essential

Thursday, July 16th, 2009

In your life online, you would normally create passwords and never share them with anyone nor write them down.  That should be alright when you’re alive, but this protection of sensitive information regarding your personal savings, insurance, or asset details can wreak a lot of havoc for your heirs when you die.

With increasing parts of our lives being stored online - password-restricted bank accounts, confidential messages, automatic bill-pay arrangements, and even photos - piecing together all personal information may cause your heirs major headaches.  For instance, if your online savings account is separate from your other regular bank accounts, this account may be overlooked in disbursing your finances to the beneficiaries since all statement notifications arrive exclusively through e-mail.

The chairman of estate-planning department in Springfield Massachussets and an attorney, Hyman Darling, said, “Many times we spend several days trying to locate the information.  Very often, these accounts would not be known for some time.”

But of course, creating a will where the decedent included all details about existing assets would help a lot.  However, it would still not solve the problem of knowing the passwords of certain accounts.  As Michael Palermo (another estate planning attorney) said, “Without these log-in information, the survivors need to ask assistance from the court to gain account access from the company running the online account.  And sometimes, this is not always easy.”  Therefore, it’s important to include these passwords in your will or entrust them to a trusted relative while you’re still alive.  

Tags: account, attorney, Estate Planning, Hyman Darling, Michael Palermo, online, passwords, will
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Help Parents Manage Finances and Leave a Legacy

Thursday, July 16th, 2009

You’re very fortunate if your parents are still living.  However, it’s time for you to assist them on some areas of their life, more specifically on financial issues.  In fact, it’s imperative for you to be involved with them on these two things: managing finances on their retirement as well as leaving a legacy.

When your parents don’t initiate conversations on these things, it’s better if you start talking to them about it.  Who knows, you might find them willing to discuss these things with you more than you thought.  Encourage your parents to seek the help of an estate planning attorney to identify several ways on how they could pass their assets to the next generation.

Moreover, you may want to suggest that they check on beneficiaries designations of their qualified plans (such as IRAs, 401ks, etc.) or life insurance contracts. Maybe the family picture changed in the last couple of years, and they are really intending to change the designations.  They should take action now before it’s too late.

While it’s important for your parents to deal with legacy issues, they may still have numerous years ahead of them.  Therefore, you can also start discussing about their investments, savings, assets, and so on.  This kind of knowledge would be very helpful if you would become involved in distributing or managing their resources.

Tags: assets, attorney, estate planning attorney, finances, legacy, parents, plans, resources, retirement
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Couple Received Planned Giving Honors

Wednesday, July 15th, 2009

Recently, the Planned Giving Council of Greater Cincinnati honored LaVerne and William (posthumously) Stautberg for their generosity.  Their foresight will benefit future generations of Santa Maria Community Services.

Mr. and Mrs. Stautberg have been close to Santa Maria or many years - it started with William’s involvement in Western Hills/Price Hills Kiwanis Club.  Also, he served as the Board President during the mid-1980s.  So at the couple’s anniversary (64^th), their children and grandchildren fulfilled their desire to touch lives and create a lasting legacy.  The couple has provided annual funding to charity by establishing an endowment fund - there were other charity beneficiaries and among them, Santa Maria was selected as a perpetual beneficiary.

As a result, the Stautbergs were nominated for the “Voice of Giving Award.”  In total, the Price Hill-based council gave 20 awards to honorees.  The nonprofit believes that these people have committed to give millions collectively and their help will ensure that diverse causes will be possible for the future.

The Planned Giving Council of Greater Cincinnati is a professional association whose life work is ensuring viability of charitable organizations.  To get more information on planned giving and the benefits that it could give you, seek assistance from an estate planning attorney.

Tags: attorney, Cincinnati, estate planning attorney, Planned Giving, Santa Maria Community, Stautberg, Voice of Giving Award
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Trust Fund for Adopted Kids Created

Wednesday, July 15th, 2009

Early Wednesday morning, Melanie and Byrd Billings’ family held a news conference to thank the community and investigators for their support.  Recently, the Billings were murdered in a home invasion robbery.  Nine of the adopted children (in their home) have special needs, and unfortunately, they witnessed the whole event.

The oldest children of the couple, Ashley Markham, said that a trust is now being set up for their parents’ adopted children.  It’s a good thing that an outpouring of support came from the people around the nation.  Now, papers to formalize the trust are now being drawn up.

Funeral services were complete and burial will follow at memorial gardens of Pensacola.  There were seven people behind bars due to the murders.  The investigators are saying that the robbery was well-planned, and the suspects were in and out of the house in less than 10 minutes.  Right now, they are still questioning a suspect on possible abetting and aiding charges.

Ashley Markham also said that their family will continue the legacy of their parents.  They will stay together and help adopted children as well.  In fact, “the trust money will only be used to care for children with special needs,” Markham added.

Tags: adopted, Ashley Markham, legacy, Melanie and Byrd Billing, Pensacola, robbery, suspect, trust
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Living Wills: Important in All Life Stages

Tuesday, July 14th, 2009

Mitch Albom, the author of the book Tuesdays with Morrie, brought the character of Morrie Schwartz into life.  In the book, Schwartz said “People are acting as if death is so contagious.  But in reality, it’s not contagious.  Death is so natural, as natural as life itself.”  Nevertheless, people still avoid the topics of dying and death, even if this popular biography has successfully made death seem accessible.

It’s a unique human experience to be aware of one’s own mortality.  Although for some people it’s not easy to discuss, most would not want to burden their loved ones of any significant health change or a catastrophic event.  Despite this, however, more than two-thirds of adults don’t have any living will or advance directives.

Young people are mostly the ones who have not expressed future preferences while older adults are more aware on giving instructions about health care and appointing someone to make the medical treatment decisions when they’re stricken with a serious accident or disease.

Remember that whether you’re young, middle-aged, or older, any responsible adult benefits from creating a living will.  When you’ve put your preferences and wishes on paper with the help of an attorney, it’s essential to have a meaningful conversation and discuss it with your family.

Tags: accident, attorney, death, disease, health care, living will, Mitch Albom, Morrie Schwartz, mortality, Tuesdays with Morrie, will
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Include your Pets in Estate Planning

Tuesday, July 14th, 2009

When people head out of town for a week-long or month-long vacation, they make arrangements for their pet such as how they will be fed or taken cared of.  According to an attorney, Carol Wessels, “Many of my clients would simply trust another family member to take care of the pet.  However, they don’t realize that taking care of pets can be a huge responsibility.”

Since the United States is a nation full of animal lovers, Wessels predicted that the law practitioners’ interest in this particular estate law area will likely grow.  She added that pets will be better off if their owners think about their well-being too, and in advanced, so that they will be taken cared of when something unexpected happens.  This is because oftentimes, the surviving family members are taken aback with bills for food or veterinarians that these pets need.

Today, about one-third of sophisticated estate planners have pet trusts that will allow the pet owner to appoint a human beneficiary tasked to take care of the pet in the event of the owner’s death.  The conditions of the trust may state that the trustee can allocate money to this beneficiary as long as he or she is taking good care of the pet.

Tags: animal lovers, Carol Wessels, Estate Planning, law, pet, trust, trustee, United States
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Planned Giving: A Noble Goal

Monday, July 13th, 2009

Jim Taylor gave away his house to charity.  He’s not rich, but he did not become homeless too.  This 83-year-old man continues to live in their rambler (4-bedroom), that he bought in 1977 when he and his late wife moved to Onalaska.  He retired in 1990 as Dairyland Power’s head, and said that he has built a nest egg big enough to be comfortable (although not rich).  Although they own their home in Onalaska, their children were already grown and with their own homes as well.

Since Taylor and his wife received good care from Gundersen Lutheran, they now wanted to contribute something to the hospital.  So what they did was call up the Medical Foundation and asked them if they need a house.

The executive director of the foundation, Phil Schumacher, explained that the Taylors can live in the house as long as they want.  Then, after their death, the foundation will own the house and can sell it as their property.  This planned giving will not affect the estate taxes of Taylor or be tied in probate, so their kids don’t need to worry about anything.

Meanwhile, Taylor enjoys a good tax deduction and the fulfillment that he has helped out an organization that he loves.  As for his heirs, he said, “They will inherit the rest of my life savings, or what’s left of it.”    

Tags: charity, Dairyland Power, estate taxes, Gundersen Lutheran, hospital, Jim Taylor, Medical Foundation, Onalaska, Phil Schumacher, Planned Giving, probate
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Trust Meaningless Unless with Assets

Monday, July 13th, 2009

Two siblings consulted an attorney about the estate of their father who passed away in 2006.  Both their parents have revocable trusts and a $3 million combined net worth.

Both their trusts were adequate and well-written.  It has the necessary language and complete documents to ensure that the first deceased spouse’s estate would be divided into family trust and shelter the whole $1.5 million (husband’s share) from future estate tax lasting for 12 generations because it will not be added to the other $1.5 million taxable estate (wife’s share).

Instead of writing a will, which could have resulted in tax worth $460,000, the family trust saved them from this expense.  However, even if their trust was adequate, it would be meaningless unless it has assets.  What’s worse is that the children can’t sue the attorney who drafted the trust - he has included a firm warning that there are negative consequences if the couple failed to fund the trust and even included a separate sheet on how they can do so.

As a result, they need to file probate, which would cost them an additional $210,000 for court costs, attorney’s fees, and representative fees in addition to the $460,000 tax payable to the IRS upon their mother’s death.  All of these problems could have been avoided if only their parents funded the trusts.

Tags: assets, attorney, estate, estate tax, Family Trust, probate, revocable trusts, trusts, will
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Judge Finds Widow Lacks Merit to Sue

Sunday, July 12th, 2009

A Manhattan judge ruled that a widow’s claim for a $9 million malpractice suit for her husband’s attorneys have no merit.  Marilyn Shafer, Supreme Court Justice, ruled that there was no privity between Jean Sorenson Leff, the widow, and Richard Cunningham and William Bush, the attorneys.

Shafer discounted the argument of Leff that occasional interactions between her and the attorneys, which includes her own will preparation, created an attorney-client relationship with regards to her husband’s estate planning.  Shafer wrote that “even if the plaintiff has a subjective belief of an attorney-client relationship, it’s not enough evidence that there is one.”

Due to this, a question was raised on who can sue for malpractice in New York when the attorneys make mistakes in estate planning.  The chair of wills and estates department for Schlesinger Gannon & Lazetera answered, “New York is one of the very few states left with privity doctrine.  Only the decedent has the privity and the right to sue - not even the executor or administrator of the estate could charge malpractice to the attorneys.  Fortunately, more and more states are moving to abandon that doctrine.”

Tags: attorney-client relationship, attorneys, Jean Sorenson Leff, malpractice, Manhattan, Marilyn Shafer, New York, privity, Richard Cunningham, Supreme Court Justice, William Bush
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Attorney-Client Relationship in Estate Planning

Sunday, July 12th, 2009

Sometimes, elderly clients would come to attorneys to draft an estate plan.  But these clients often had their caregivers or children with them.  It may be reasonable because these clients rely on their companions to express what they want and to make sure that the attorney is somebody they can trust.

However, some attorneys would want to meet the client alone to discuss major decisions.  These are the reasons why:

• -An estate planning attorney is required to confidentially and faithfully serve the client’s interest only.  Because of this, the attorney must meet the client alone to ensure that confidential information will not be known to anyone else (unless the client gives permission).
• .
• -When the meeting is held in confidence, the attorney would more likely get personal with the client to understand their desires and circumstances.  If anyone is in the room (say the children), other people might be the one to take charge of succeeding discussions and it might prevent the client from saying something confidential.  Therefore, a confidential meeting would definitely protect the client and enable the attorney to uncover the true wishes.
• .
• -Finally, the attorney should be satisfied of the mental capacity of the client.  The elderly should still have the ability to understand and communicate the instructions clearly.  Also, clients need to act out of free will without any “undue influence.”

Tags: attorney-client relationship, attorneys, confidential, elderly clients, estate plan, estate planning attorney, free will
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Both Donor and Nonprofit Benefits from Planned Giving

Saturday, July 11th, 2009

Since charitable giving is down, more nonprofits are using and further reducing their endowments, which makes a bad situation worse.  But there’s one type of giving that has not reached its full potential - it’s planned giving, which is another way that nonprofits raise money aside from grants and donations.  However, fundraising staff and board members usually shy away from programs pertaining to planned giving because it looks more complicated compared to other programs.

According to Lorri Greif, an instructor for webinars on planned giving, “These programs are win-win both for the donor and the nonprofit.  Donors can make larger gifts to the charity they care about and sometimes increase their tax advantages and income, which will enhance their financial situation.  Then charities, on the same token, would receive more assets than before.”  She added, “Often, this would create greater loyalty and stronger relationships between the benefiting nonprofit organizations and contributors.  Furthermore, it could lead to more volunteerism and bigger gifts to the fundraising campaigns of the charity.”

So how will you know if a planned giving program is the right one for your nonprofit?  Your organization executives and board members should be looking for an answer to this question. They have to weigh the pros and cons of creating this program as well as seeking advice from qualified professionals.

Tags: charitable giving, charity, donations, donor, grants, Lorri Greif, nonprofit, Planned Giving
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Create Financial Plan for Happy Future

Saturday, July 11th, 2009

There are only a few people who actively plan for their financial success. Some may expect it or hope for it, but only one out of five people actually have a written plan on how they want their financial lives to work out. This is according to the recent financial literacy survey of Retirement Commission.

Author Arun Abey says that “drawing a financial plan may be a minority occupation. However, aside from being purely financial, it would also bring you a sense of wellbeing.” She further said that there’s a feeling of control and high satisfactory rating for people with a financial plan – it doesn’t matter if they’re simple wage earners or a rich accountant.

So, financial planning may also give us a notion of happiness and satisfies us as individuals. If you want to experience the same sense of purpose, you may go to financial planners or estate planning attorneys. When you go to them, you will be asked to fill out a statement of your insurances, debts, assets, and income. Generally, your adviser will also ask you about the household budget and the regular things that you’re spending on. Other estate planning details, such as family trust or will should also be included.

Tags: Arun Abey, attorneys, Estate planning attorneys, Family Trust, financial literacy, financial plan, financial planning, Retirement Commission, will
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Your Will Needs to Change

Friday, July 10th, 2009

Since there is a recent decline in properties and personal portfolio, these can affect your asset proportions.  Now would be a good time for you to check if the financial logic behind estate plans and wills still holds.

Rita Brown, estate planner and CPA, said “You cannot really change your will every time there’s a fluctuation in the stock market.  However, if you want your children to have a specific amount of money, and your stock portfolio today no longer allow that, then it’s time to make a change.”

A will can spell out the nomination of an executor, guardian for minor children, any specific gifts, and beneficiaries of your assets.  Software or books are available for any basic will although it’s still necessary to hire an attorney as your accounts and properties become more complex.

When you deduct all your debts from your property’s fair market value, you’ll get the value of your estate.  Also, the value determines whether the beneficiaries will be charged with capital gains taxes and whether there will be estate taxes when you pass away.

For 2009, an estate’s first $3.5 million ($7 million for couples) will be exempt from estate taxes.  Also, there’s a gift tax with $1 million lifetime exemption.

Tags: attorney, debts, estate planner, estate taxes, fair market value, Rita Brown, stock market, stock portfolio, will
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Surprisingly Disinherited

Friday, July 10th, 2009

Kari Kennedy’s father died and she was crushed emotionally.  But when she found out that Liv, her dad’s ex-wife inherited more than $400,000, she got the biggest surprise of her life.  Liv and her dad had been divorced for many years.  In fact, she has a copy of their divorce decree which says that Liv is waiving all her rights to any retirement plan.

It may sound impossible but it’s true.  Estate planning looks so simple but it’s filled with pitfalls and landmines.  So if you failed to change the beneficiary in your retirement plan or insurance form your true heirs cannot contest it if you accidentally pass away.  In the above example, the law governing qualified retirement plans triumphs over the divorce decree.

This happens all the time.  Well-meaning individuals don’t change their beneficiary forms frequently and not willing to spend any money in hiring an estate-planning attorney.  They also forget that the results can be very disastrous.

Therefore, estate planning attorneys recommend that everyone should review all assets that they own - each legal document, trust, will, real estate titles, insurance policy, annuity, IRA, and retirement plan.  If you do this regularly, you’ll be sure that the inheritors of your belongings will be according to your wishes.

Tags: attorney, Divorce, Estate Planning, estate planning attorney, Kari Kennedy, legal document, retirement plan
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Donations are Beneficial to Charities and Heirs

Thursday, July 9th, 2009

If you are looking for a win-win strategy in estate planning, then give to charitable institutions.  There are many benefits of giving.  Here are some opportunities for you to give:

*Charitable Remainder Trusts (CRT) - a tax-exempt, irrevocable trust created when any donor irrevocably transfers assets to the trust.  Then, the trustee would invest the funds to pay a designated income stream for the donor in a specified period of time - this usually lasts for the donor’s lifetime and possibly the donor’s spouse as well.  Finally, after the end of term, the charity would get the rest of the trust assets.

*Charitable Lead Trust (CLT) - this gives income to a charity for several years, and then the rest would pass to the heirs of the donor.  This also allows the donor to get an income tax deduction applied to the charitable gift (the income stream going to charity).  Therefore, a CLT is the complete opposite of CRT.

*Outright Gifts - the simplest strategy to give to charity.  When you do this, you can benefit from a tax deduction.  If you want an additional benefit of removing your assets from your estate, you may give lifetime gifts such as real estate or stock.

*Retirement Benefits - an ideal asset to give to charity.  You can simply give the name of the charity as designated beneficiary with IRA custodian or plan administrator.

Tags: CLT, CRT, Estate Planning, Outright Gifts, Planned Giving, retirement benefits
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Lessons from Michael Jackson

Thursday, July 9th, 2009

Before he died, it’s a good thing that Michael Jackson made a smart estate plan.  He provided and cared for his loved ones because a separate document gathered his assets (estimated to be over $500 million, which exceeds his debt by $200 million).  It’s called a family trust - this ensures that his affairs would stay out of court and out of the eyes of the public.

He established this trust along with his will, and it’s also called a “living or revocable trust.”  The goal of this estate-planning tool would be to transfer all the property - including real estate, bank accounts, and cars - into a separate owned entity while maintaining the control as a trustee.  In Jackson’s case, he established a “Michael Jackson Family Trust.”

At his death, the control will be transferred to his successor trustee or co-trustee.  Most people (Jackson included) will set it up to “pour over” - this means that whatever assets remain outside of the trust would be eventually be added to the estate at their death.

The beauty of this trust is: people can avoid a public process called probate.  Aside from celebrities, this process would also make sense for people with significant assets because it would spare their heirs from a prolonged legal process.

Tags: assets, co-trustee, estate plan, Family Trust, legal, living trust, Michael Jackson, probate, revocable trust, successor trustee, trust, trustee, will
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Employee Left Half of Estate to Employer

Wednesday, July 8th, 2009

For 25 years, Jack Boyle had a job as claims adjuster for State Auto Insurance.  They gave him a good job and a good pension, so now he’s eternally grateful.

Boyle seems like a mystery man who retired in 1978 and died last year at the age of 91.  What’s astonishing is that he left $152,000 - half of his estate - to State Auto.  In his will, he wrote that he is giving the inheritance with no strings attached because of his gratitude to his employer that gave him a livelihood.  The rest of the estate went to his other family members.

Because he didn’t have children, the other half of his estate went to his brother and sister as well as five nephews and nieces.  “He was married twice but was also divorced twice,” said Clifford, 80, his brother who lives near Cleveland.

He was also surprised that his brother would donate that kind of money to his former employer.  People generally leave money to their friends and family, alma mater, or even their favorite charity organization and not to a for-profit insurance company.  “But it’s his money anyway, so it is up to him on what he would do with it,” he concluded.

Tags: Clifford, estate, Jack Boyle, job, pension, State Auto Insurance, will
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Your Final Arrangements

Wednesday, July 8th, 2009

Recently, Indiana took another stab to address uncertainty in the final arrangements of a person.  It was mandated that starting July 1, any person may execute an FPD (Funeral Planning Declaration).  When you execute an FPD, you can nominate anyone to be a “designee” - this person will carry out your final instructions.

The form is so easy and simple to understand.  In your FPD, you can leave instructions regarding grave memorial, ceremonial services, funeral, entombment, cremation, and burial.

The traditional way that you can plan final arrangements is through a will.  Unfortunately, some beneficiaries don’t know where the will is; and in some case, the deceased was already buried when they’ve found it. 

Another common way is to preplan by going to a funeral home.  This means that you make decisions based on a field expert’s guidance.  But who wants to go to a funeral home to begin planning?  The reality is that people think it’s creepy to discuss an estate plan in a funeral home.

Truly, one of the most difficult parts of estate planning would involve final arrangements.  These issues could also become complicated if there are mixed families, second spouses, or the members of the family just won’t get along.

Tags: estate plan, Estate Planning, final arrangements, FPD, funeral home, Indiana, instructions, preplan, will
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Agencies Seek Aid and Share Needs

Tuesday, July 7th, 2009

At the summit called “Behind the Front Lines,” several directors from local nonprofits have stressed to financial planners that depth of need is not met locally due to budget cuts and flagging economy. The summit was presented by Planned Giving Council of Southwest Florida and Manatee Community Foundation.   It was a chance for the leaders of nonprofits to connect with a lot of financial planners, who typically help clients make the right choice in charitable giving (some lawyers can also help in this area).

Social services tend to hype their organization efficiency and the quantity of aid they provide because political support and government funding are on the line.  According to Laurel Lynch, Hope Family Services executive director, “The demand is so high yet resources are not keeping up.”

Directors of Manatee Glens, Hope Family Services, Community Coalition on Homelessness, St. Joseph’s Food Pantry, and Meals on Wheels PLUS made five-minute presentations on the state of their community and agencies.  To take a snapshot, 2,075 children were homeless from birth until 18 years old during the past year, and Manatee Glens is giving addiction services and mental health in one out of every 30 families.

Hopefully, the testimonials have made an impact on those financial planners in attendance.  And after the summit, the people have understood that there is a need affecting the whole community.

Tags: Behind the Front Lines, directors, financial planners, Laurel Lynch, lawyers, nonprofits, Planned Giving, summit
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Investors Get More Fund Brochures

Tuesday, July 7th, 2009

Investors are saying that they’re blanketed with hedge funds promotional materials than ever before.  These funds seek to gain back the assets lost or withdrawn because of the financial crisis’ negative performance.

“Normally, only a few funds would arrange a meeting with me before the conference.  However, this year, about 30 e-mailed or called,” said one manager from a company of family trust (he declined to be named and prefers to remain anonymous).  He’s talking about the GAIM hedge fund industry conference where investors like pension funds, family trusts, and high net worth individuals are saying that the sales drive intensified.

Mark Schindler, a Clariden Leu portfolio manager, also told Reuters “Marketing has been very aggressive this year.  I had so many calls and e-mails bombarding me so I have to be selective on who to answer.”

Ironically, in spite of apparent efforts in marketing, Mr. Schindler still noticed fewer sales staff compared to the previous year.  This means that executives and fund managers have to talk to potential investors about their investment strategy - a role that they usually avoid because it’s a distraction from running the funds daily.  “This is something that we rarely saw, the people actually managing the money are here to talk about their own funds,” Schindler observed.

Tags: conference, Family Trust, fund managers, funds, GAIM hedge fund industry, hedge funds, investors, Mark Schindler, portfolio manager
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Checklist for Parents’ Will

Monday, July 6th, 2009

As parents, you should be prepared to plan for the unthinkable.  If one or both parents die, anyone could be assigned as guardians to your children.  This means that the courts - not you - would decide their future.  So to guide you through the drafting of your will, consider the following steps:

-Pick a guardian for your children as well as their future assets.  Think about this thoroughly.  Who could be there for them who’ll share your values in the long-term?  What’s surprising is that the person may not be your close blood relative or current romantic interest.

-You can choose one person to raise your child and another one to take care of your money.

-Before making the designation, make sure that your guardian will accept this responsibility.  Divorced parents should make this guardianship decision together.  They could also consider each other to be named as guardian, as the courts would most likely award it to either of them when the other party petitions for it.

-Give a certified “will” copy to your guardian and let them know where you stored the original.

-Pick an attorney who’s board-certified in estates and wills.  It would also be best if they had an advanced training or certification to claim their specialized area.

Tags: assets, attorney, courts, estate, estates, guardian, parents, plan, will, Wills
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Make Estate Planning Your First Step after Divorce

Monday, July 6th, 2009

The last thing that people want to do after a divorce is to consult another attorney.  But regardless of your age and whether you have kids or not, it’s important to consult legal and financial experts to ensure that your financial plans and estate are updated in terms of reflecting your new circumstances.

So if you’re not working with an estate planning attorney or financial consultant during your divorce, it’s time for you to do it now.  A financial planner will look at your finances. Your expenses as a new single individual can grow unexpectedly; a financial planning professional helps you compare strategies and review your new savings and spending needs.

Also, talk with an attorney that has numerous experiences in real estate.  If you plan to remarry one day and you have kids, make sure that your specific assets will go to them (guaranteed) when you die.  This is because some cases happen when the ex-spouse may automatically gain full control of assets earmarked for your kids.  Of course you don’t want this to happen - that’s why you must plan for it legally.

If your children are still minors, it would also be wise to plan the guardianship for them.  Especially when there are wealth issues that’ll only become effective when they reach adulthood, it’s critical to establish a solid and efficient legal structure to distribute those assets.

Tags: attorney, Divorce, estate, Estate Planning, estate planning attorney, experts, financial, financial planner, legal, minors, plans
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