Estate Planning is for Children Too

Wednesday, September 30th, 2009

Do you know that when your children reach 18 years old, you will no longer be allowed to make medical decisions for them?  Actually, your right to see their medical records or speak to their doctor is no longer compulsory enforced.

Any parent has a fear of hearing that their child was involved in a medical emergency - whether it’s a physical catastrophe or a car accident, they would usually be notified or rushed into action.  However, under the law, your own 18-year old and above children need to name you as a health-care proxy first before you can have anything to say about their medical treatment.

Health-care proxies are documents allowing you to assign another person to make medical decisions for you if you’re unable to do it yourself.  Another document, called the living will, is a statement of medical wishes if you become ill.

Therefore, estate planning is not only for seniors.  Adult children should also have durable power of attorney as well as a health-care proxy too.  Since these are complicated documents, it’s best to speak to your family attorney.  If you don’t have one, just seek advice from any qualified estate planning attorney in your state.

Tags: adult, attorney, children, documents, Estate Planning, health-care proxy, law, living will, medical, parent, seniors, will
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Trust Amendment

Monday, September 28th, 2009

All good estate plans are designed to accommodate and anticipate changes.  The owner reserves the right to amend or revoke the trust in part or in whole.  And the most common amendment done by the owner is changing the trust asset distribution.  It’s so common for people to delete or add beneficiaries or even to adjust the amount or percentage that the beneficiary will receive.  Also, another common change is to change the order or names of successor trustees.

Because it’s so easy to amend any trust, some people are doing it on a regular basis.  There are some trusts with seven or more amendments.  But sometimes, it’s easier to just replace the whole trust instead of amending it several times. 

However, some people don’t like the thought of doing the trust all over again because it’s a bit daunting.  In a new trust, all assets titled in the first trust’s name needs to be transferred to the new one.  And it could be too much work to re-title assets.

So instead of creating a new trust, you can just restate it.  The great thing about this is: you don’t need to re-title the assets of your old trust.  A trust restatement is already funded, and could simple replace the original trust.

Tags: asset, assets, beneficiaries, estate plans, Family Trust, owner, trust, trust amendent, trust restatement
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Retirement of UW Foundation president

Saturday, September 26th, 2009

University of Wisconsin’s main fundraising arm will undergo a change in leadership as the president of UW Foundation announced at the board of director’s meeting on Friday that he will retire.  President Sandy Wilcox announced early that there will be enough time for the search committee to hire their new president.

Russ Howes, the vice president of Planned Giving and Legal Affairs at the foundation said, “Wilcox played a tremendous role in their effort to reach UW alumni and friends in doing significant amounts of fundraising.   With new administration coming in the university, they would like to have a foundation of leadership that would last.”  The foundation has experienced a lot of significant improvement for the past 21 years.  Employee personnel grew 6-7 times and the fundraising for the university support has increased starting from $27 million up to $130 million.

Wilcox said “I feel fortunate to have this position for two decades.  Many private funds raised during my tenure were used to construct numerous campus buildings like Chazen Art Museum, Grainger Hall, Engineering Hall, and the new medical campus.  Even when the global economic crisis took a toll on UW Foundation and it’s starting to feel investment cutbacks, I’m confident that things would still pick up soon.”

Tags: Chazen Art Museum, Engineering Hall, funds, Grainger Hall, legal affairs, Planned Giving, Russ Howes, Sandy Wilcox, tenure, University of Wisconsin, UW Foundation
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Katherine Jackson Wins

Thursday, September 24th, 2009

Associated Press reported that Katherine Jackson, the mother of Michael Jackson, can now challenge her son’s estate administrators without risking her inheritance share.  This is the ruling of Mitchell Beckloff, a Superior Court Judge, last Friday.  In the ruling, it states that Mrs. Jackson can remove the estate executors - John McClain (music executive) and John Branca (lawyer) - or challenge their authority without being disinherited.

Although there’s a family trust provision that calls for anyone challenging the will to lose their share in the trust, the judge ruled the complete opposite.  Previously, the lawyer of Mrs. Jackson raised concerns about a few deals that Mr. McClain and Mr. Branca have negotiated, including the involvement of Michael’s concert promoter, AEG Live.

According to Londell McMillan, Katherine’s lawyer, “We hope that this outstanding administration matter is resolved, without need for further costly obligation - this is for the best interests of Mrs. Jackson and Michael’s children, who are the true beneficiaries.”

The family trust gives 40% to Mrs. Jackson, 40% to Michael’s three children, and the remaining 20% will be given to charities.  Judge Beckloff also approved around $1 million annual allowance for the family - Mrs. Katherine Jackson, Michael’s daughter Paris, and his sons Prince Michael and Blanket.

Tags: administrators, AEG Live, Associated Press, Blanket, estate, Family Trust, inheritance, John Branca, John McClain, judge, Katherine Jackson, lawyer, Londell McMillan, Michael Jackson, Mitchell Beckloff, Paris, Prince Michael, trust
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Wills for Firefighters

Tuesday, September 22nd, 2009

A lot of firefighters contemplated on their own mortality as one of their colleague, Manny Rivera, who sustained fatal injuries in battling last winter blaze, died at 42 years old.

According to John Panacek, Trenton Fire Department battalion chief, “Most firefighters don’t have wills in order.  They may not anticipate dying in their 30s or 40s but in our job, it could happen tomorrow.”  Because of this concern, Panacek tapped Wills for Heroes program, which is a national initiative offering firefighters with free estate planning assistance.  This also includes police officers and other people considered as first responders.

For Mercer County, the Young Lawyers Division of New Jersey Bar Association agreed to host a particular event that would be open to these first responders having an estate below $750,000.  This will be held at Hamilton Capital Health on Sept. 26.

Panacek added, “Estate planning has been something that plenty of firefighters are putting off.  Manny’s untimely death has been a real eye-opener.”  Rivera rescued a man on Feb.9 from a fire at Washington Street.  He collapsed at the scene and remained in a coma (seven week) until finally succumbing to death.

According to the website of Wills for Heroes, there were 400 police and firefighters who died in 9/11 terrorist attacks but a lot of them have no wills or estate documents.

Tags: estate, Fire Department, firefighters, Hamilton, injuries, John Panacek, lawyers, Manny Rivera, Mercer County, New Jersey Bar Association, police, Trenton, Wills, Wills for Heroes
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Education Savings Plan in Estate Planning

Sunday, September 20th, 2009

Estate laws truly affect your assets.  Most of your assets constitute your estate when you pass away.  And since you know that an estate over $3.5 million will be taxed up to 45%, you may want to keep your estate below that level.  In order to do that, you can give gifts or acquire a 529 education savings plan.

Actually, this kind of education savings plan would allow you to select any relative or friend as your beneficiary.  That person is expected to incur education costs.  Moreover, the plan offers flexibility like for example; you can change the beneficiary any time, change investment elections, and make various contributions to the account.

You can choose from several 529 accounts that may be available in your state.  If you’re a resident of Ohio for instance, you can choose Ohio 529 plan and deduct your contributions from the state income tax.  Currently, IRS rules are allowing investors to make large lump sum contributions to the 529 plan.  In 2009 you can contribute up to $65,000 for individuals or $130,000 for couples.

So 529 education savings plan not only allows you to help your children grandchildren, nephews, nieces, and other loved ones from pursuing education, it would also allow you to qualify for tax deductions.  Seek advice from your estate planning attorney whether this strategy could be applied in your situation.

Tags: assets, attorney, education, estate, Estate Planning, laws, Ohio, plan, savings, strategy, tax deduction
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Roundtable for Planned Giving Professionals

Friday, September 18th, 2009

There’s a new organization called YEP (Yuma Endowment Project) where professionals working with planned financial giving are learning and working together locally.  The leaders of this organization said that they will offer training events plus host a planned-giving roundtable.

Membership to YEP nonprofit targets professional financial advisers such as insurance professionals, accountants, and attorneys in addition to executive directors and development officers.

Judy Gresser, the executive director of Yuma Community Foundation said, “In the past, people had to drive to Tucson or Phoenix for this type of training.  We need this kind of collaboration here in Yuma.”  In addition, she said, “It’s all about great agencies and sustaining the impact in our community by educating people.  It’s not just all about giving cash one time, but making a planned long-term impact.  The biggest reason for the endowments is to benefit the community.”

The annual summer forum is likened to a retreat, and the educational events are offered every quarter.  The first one will be on October 7 at Yuma Main Library.  A management consultant for major corporations, Tom Steiner, would be the one to make a presentation.  By the time they hold their kick-off activity, Gresser is hoping that they can already have 50 members.

Tags: attorneys, endowments, forum, foundation, Judy Gresser, members, membership, Planned Giving, retreat, summer, training, YEP, Yuma
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