Reviewing your Insurance

Tuesday, October 6th, 2009

Some people don’t have the habit of reviewing their life insurance policies.  But bear in mind that an insurance could be a vital part of your financial strategy or estate plan.

You can buy a life insurance policy and make your spouse or children as beneficiaries.  Business owners can also use a buy-sell agreement funded with an attached life insurance so that surviving owners may buy the company’s interest in case of a deceased partner.  In the same token, key-person insurance assures business aid when one of the core employees passes away.

However, there is a downside to this.  Life insurance proceeds form part of your taxable estate and your beneficiaries may be heavily taxed when you pass away.  One alternative around this law would be to allow your children or other beneficiaries to own your policy.  You can give gifts to your kids for the acquisition of the insurance - it’s like pooling their money and buying the policy for you.  Another way you can remove the proceeds of your life insurance from your taxable estate is to get irrevocable life insurance trust.

Life insurance can help you build wealth.  It can also be useful for employee benefits, business continuation, education planning, retirement planning, and estate planning.

Tags: beneficiary, business, estate, estate plan, Estate Planning, law, life insurance, policy, tax, trust, wealth
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Transfer Wealth through Trusts

Sunday, October 4th, 2009

Transferring wealth to the next generation is a very noble goal.  However, you may be hesitant to transfer wealth through a trust because you think that it may be expensive.  But if you think about it thoroughly, you will realize that simply handing it over to your children or grandchildren have a lot of risks, especially if the beneficiaries are still minors. 

Let’s face it - kids may sometimes be impulsive and easily influenced.  So how do you give inheritance to someone who’s not mature enough to handle their own money?  One way is through trusts.  You will have full control because you’ll be the one to establish its terms and conditions.  For example, you can make it restrictive and give the money to the beneficiary only when the right time or reasons come.

Of course you need to do a cost-benefit analysis for this purpose.  It doesn’t make sense for you to create a trust if you intend to fund it with only $500.  It’s not to say that $500 is not a lot of money, but just don’t make the mistake of spending three times as much in setting up a trust if you will only put $500 in it.  It’s best to consult an attorney regarding this concern if you want a sound advice.

Tags: advice, attorney, beneficiary, children, control, grandchildren, inheritance, kids, trust, trusts, wealth
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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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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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Suing a Family Trust

Friday, August 21st, 2009

Mary Bucksbaum Scanlan, an heiress of Bucksbaum shopping-mall clan has sued the family trust as well as its lawyers for breach of fiduciary duty and malpractice.  She blamed them for investment losses from her trust shares worth $300 million. 

The 40-year-old is a daughter of Martin Bucksbaum, who’s the late co-founder of General Growth Properties Inc.  She filed this lawsuit in Chicago U.S. District Court naming attorneys Earl Melamed and Marshall Eisenberg with their law firm named Neal, Gerber, and Eisenberg LLP.  Also included in the suit is General Trust Co., Bucksbaum family trust as defendants.

The attorney representing Melamed, Eisenberg, and their law firm is Atty. Stephen Novack, who claims that losses suffered by Bucksbaum family trust were truly caused by the souring stock market and the economy.  General Growth is based in Chicago - it manages and owns over 200 malls in the U.S. but it filed for bankruptcy (Chapter 11) protection in April carrying a debt load of $27 billion.

The lawsuit of Mrs. Scanlan alleges the attorneys (also the trustees) of breach in their fiduciary duties since they kept most of the assets of the trust in General Growth stock during the time that stock has declined in 2007 from $67 to $1 last year.  Allegedly, the attorneys also failed to inform her about the loans made to executives of General Growth with a total of $100 million.

Tags: attorneys, Bucksbaum, Chicago, Earl Melamed, Family Trust, General Growth Properties, heiress, law, lawsuit, lawyers, malpractice, Marshall Eisenberg, Martin Bucksbaum, Mary Bucksbaum Scanlan, Stephen Novack, stock, sue, trust
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Benefits of Bowers Trust

Tuesday, August 18th, 2009

Frances Bowers, a Mannington woman, passed away in the year 2000.  Her family members have all passed away as well and they have compiled the largest fortune in the community - they’re famous for the second largest state district fair.

Bowers was on the First Exchange Bank board.  Her father was late George Bowers, owner of Warwick China Co. and Bowers Pottery Co. (two very prosperous businesses).  He died around 1940s and left his three daughters with a huge estate.  Frances was the last surviving offspring.  She’s a private and opinionated woman who traveled a lot.

Upon her death, a part of the family trust has been placed in George Bowers Family Charitable Trust - many students and organizations in the area benefited from this trust ever since.  People may not know that the family did a lot of good things to the community.  It’s like a federal government awarding to organizations that need funds yearly.  Also, it’s similar to an annual gift; but the surprise is who will reap the rewards. 

Although many organizations are applying, only so many can be given out each year.  For instance, this year, East Fairmont Junior High, Fairmont Senior High, Disability Action Center, Mannington Middle School, and Salvation Army were some of the lucky ones awarded with grants.

Tags: Family Trust, First Exchange Bank, Frances Bowers, George Bowers, George Bowers Family Charitable Trust, Mannington, trust
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English Family Trust

Monday, August 17th, 2009

Finance Minister Bill English is called by Labour to release his family trust details due to questions over his qualification for an accommodation allowance of $700 per week.  In Parliament yesterday, the arrangement was put under fire - to replace Prime Minister John Key, Gerry Brownlee was taking questions.  English qualified after he signed a declaration that states he has had no financial interest on a trust owning his family home.   

Pete Hodgson, Labour MP, said that the public should judge whether English controlled the family trust so he needs to release details of it, even if he deletes family names as appropriate.  Under Mr. Key’s office rules, it’s permissible to lease a family trust home and use it as ministerial residence only if there’s no pecuniary interest of the minister.

Officials took their concerns to Mr. Key’s office on whether English truly qualified for the rent allowance.  Mr. Hodgson said, “Gerry Brownlee confirmed in the house that it would depend on the structure details whether or not this trust passed the test.”   

As of March, the trust title was transferred to Mary, the wife of English.  The Endeavor Trust owns Karori property worth $1.2 million, and everything would be okay when English has certified no financial interest in it.

Tags: Bill English, Family Trust, Finance Minister, Gerry Brownlee, John Key, Karori property, Labour, Mary, Pete Hodgson, Prime Minister, trust
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Local Fundraisers Benefit Disability Group

Wednesday, August 12th, 2009

From a donation of a fundraising group, a group of people with physical and learning disabilities enjoyed a great day out on North Yorkshire Moors Railway.  The day was organized by Rotary Club’s Pickering District for Wilf Ward Family Trust service users, with lunch as well as a railway trip.

There were more than 40 support workers and service users who took part in this outreach.  Several Rotary Club members also attended to make sure that the day went well.  The treasurer of Pickering District, John Fields, is pleased to support Wilf Ward Family Trust.  He said “It’s the second time this was done and so far, it was a great experience to see many local people that enjoy the local fundraising we do.”

On this day out, service users coming from Scarborough, Norton, Malton, and Pickering made the trip.  The chief executive of the Trust, Richard Pick, said, “The day turned out great for service users and a big thank you is in order for Rotary Club and all their supporters.”  Wilf Ward Family Trust is a Pickering-based trust that offers a wide range of services for those people with social care needs.      

Tags: donation, fundraising, John Fields, North Yorkshire Moors Railway, Pickering, Richard Pick, Rotary Club, trust, Wilf Ward Family Trust
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Procrastinating is a Bad Habit

Tuesday, August 11th, 2009

When faced with a difficult decision, people naturally procrastinate.  For instance, only 40% of people have an up-to-date will according to Visa Inc.’s recent poll.  A will is certainly not mandatory - although you don’t have to have a will when you die, you wouldn’t want to leave important decisions about your health and finances to strangers would you? Therefore, address these issues now and spare your family from dealing with them.

Consider hiring an estate planning attorney to draft and review your documents.  They can help you decide whether to create a simple will or come up with complex documents such as trusts involving large assets or complex estates.  Here are some things you need to do:

• *Before naming a power of attorney or executor, make sure they’re up to the task.
• *Name alternate executors and beneficiaries in case someone would die before you.
• *Compare trust or will beneficiaries to those named in your retirement or insurance plans to eliminate conflicts.
• *Review documents periodically, most especially when your family situation changes (death of a beneficiary, new child, divorce, or marriage).
• *Date, sign, and notarize documents as well as file them for safekeeping.

Tags: attorney, beneficiaries, documents, estate, Estate Planning, executor, family, procrastinate, strangers, trust, will
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Guide to Estate Planning

Monday, August 10th, 2009

Many would just watch their bills add up and portfolios dwindle.  Because of this, it’s very tempting to put off future planning.  However, experts caution that everybody needs to sit down in planning their estate.

According to the co-owner of a Seattle-based financial services practice called Sound Financial Partners, Debbie Whitlock, “Whether you’re debt-laden or wealthy, you should not just tell your loved ones how you want to handle your estate, you should put it into writing.”  Also, estate planning is not just about distributing cash.  It’s also making sure that your heirs don’t end up liable for all your debts.  In addition, you would prevent your loved ones from being saddled with funeral costs without hope of reimbursement, or sometimes it could take years of lengthy court process before they are reimbursed.

Planning for your estate could also be a way for you to determine what your life needs and goals are.  Do you want to ensure that your niece’s college education is paid for?  Or do you dream of giving a trust fund to your favorite charity?  Are you sure that you can still stay in your current house when your partner dies?  These are questions that can be answered with estate planning.

Tags: Debbie Whitlock, estate, estate plan, Estate Planning, goals, needs, planning, Sound Financial Partners, trust
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Planned Giving Gifts in spite of Economy

Sunday, August 9th, 2009

Donors to charitable organizations such as Wayland Baptist University are reluctant to dismiss any liquid assets.  If invested funds and retirement plans tanked with the market somewhat, it will only add to the uncertainty.

However, it doesn’t mean that you’ll strike off the university from your generosity.  In fact, while thinking of your own, you may want to consider contributing to Wayland’s future.  An ideal way for you to do this is through planned giving.  You can support Christian higher education and leave a gift down the road to the university.  So no matter how large your estate is, it’s a good move to plan ahead.

When you put the university inside your will - whether you give certain assets, a percentage or your estate, or your entire estate - these are planned gifts.  People who want to leave a legacy in the future actually have several options to do so: provision by will, charitable remainder annuity trust, charitable remainder unitrust, gift annuity agreement, retirement plans, charitable lead trust, revocable living trust, and planned gifts.

According to Martha Cross, the director of major gifts for Wayland, “If you don’t make future plans, somebody else will decide what will happen to your things and your money.  Better do it yourself rather than allow someone who doesn’t know your heart do it.”

Tags: estate, funds, legacy, Martha Cross, planned gifts, Planned Giving, retirement, trust, Wayland Baptist University, will
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Murdoch Family Trust

Saturday, August 8th, 2009

Rupert Murdoch, chairman of News Corp (NWS) has three wives and six children.  In addition, he also has two living sisters, a 100-year old mother, one deceased sister, and a father who passed away in 1952.

His biographer, Michael Wolff, divulged more facts about the Rupert’s family.  He said that Rupert’s first wife is Patricia Murdoch.  She was an intern at his paper but the family disapproved this marriage so it lasted only from 1956-1967.  Then during the recession from 1990-1991, Rupert’s wife was Anna Torv Murdoch and he promised her that he will retire as soon as the company goes out the mess. 

Unfortunately, this didn’t happen because in 1999, the couple was divorced.  Then on the same year, Rupert was married to Wendi Deng, a young executive in News Corp where he had two more children later on.  Everybody could have been happy except that when Rupert was divorced, he left the voting shares of his News Corp to a trust controlled by four of his children - called the Murdoch Family Trust.  In addition, he agreed to Anna’s stipulation in the trust that no new children should be admitted to this trust.

But Wendi can’t accept this arrangement and so a new one has to be created.  Suddenly, the kids of Wendi are now allowed into Murdoch Family Trust (without voting participation).  Rupert also paid $150 million to each of his first four children.  

Tags: Anna Torv Murdoch, chairman, children, Michael Wolff, Murdoch Family Trust, NWS, Patricia Murdoch, Rupert Murdoch, trust, Wendi Deng
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Things to Do Now

Friday, August 7th, 2009

All of us must face the reality that we are going to die.  Therefore, make sure that your final wishes have already been taken cared of.  Here’s a list of things you should do now (in no particular order) just because you need to do it before you pass away:

• *Pre-pay and pre-plan your funeral arrangements.  Just contact a local funeral home and discuss to them what you want to happen in your funeral including the costs and the ways you can pay for it.
• *Get a trust or will to take care of your estate after death.  Do not try to do this over the internet.  You’ve got to see an attorney to ensure that the trust or will is in place and to guarantee that your estate will be surely handled the right way.
• *Also get a durable and health care power of attorney in place.  These could help you avoid messy health and financial problems.
• *Write your own obituary.  It’s hard for your survivors to think of all your life details during the time of grief.  Since you know these better than they do, you’ve got to do it now.
• *If you’re receiving life insurance or retirement money, make sure that you check your beneficiary designations or notify the company if you have any changes in beneficiaries.
• *List the people that you’d like to notify of your death - these may be family, friends, pastor or priest, employer, business associates, etc.
•  

Tags: attorney, beneficiary, death, estate, funeral arrangements, funeral home, health, obituary, trust, will
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What Do You Need?

Friday, August 7th, 2009

A Harris Interactive poll (2008) found that 55% of adults don’t have wills.  Maybe some don’t want to think about dying, but the truth is: majority doesn’t know how to start one or who to talk to.

An estate plan may be as simple as creating a will or it could also be as complex as building up a living will or trust.  You can talk with a qualified attorney to be enlightened on this but remember that it’s important to create one because you want to ensure the destiny of your assets as well as your children.  When you don’t have any of these, the state will have a free hand on where to take your money and your children along with it when you pass away.

Choose what you need.  A will is an instruction document that states your assets and the individuals or institutions where you want to give it to.  Most wills go to probate after your death.  A probate court will oversee inheritance distribution and debt payment.  A living trust sets up conditions on when and how to distribute your assets.  This will help reduce the taxes paid and avoid probate.  Finally, a living will provides an assignment of medical power of attorney given to a person you trust.

Tags: assets, attorney, death, estate plan, Harris Interactive poll, living will, probate, state, trust, Wills
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Never Procrastinate

Monday, August 3rd, 2009

When faced with a difficult decision, people naturally procrastinate.  For example, planning on your own demise is the most common thing that you delay until it’s too late.  Remember that wills are important even if they’re not mandatory.  Your affairs will be decided by the state if you don’t have a will when you die.  And worse, someone else will make your healthcare and financial decisions when you’re no longer able to make it on your own.

Here are some of the negative consequences when you don’t make a will:

• *Your preferences for burial instructions and life-support procedures may not be exactly followed.
• *The state may decide over your minor children’s guardianship.
• *A court-supervised probate may hold your estate which can result in costly fees.

To prevent these scenarios, you need to prepare any or all of the following: Will, Revocable Living Trust, Durable Power of Attorney (both financial and healthcare), and a Living Will.  Remember to date, sign, and notarize them for safekeeping as well as review them periodically most specially if there are changes in your family situation (death of a beneficiary, new child, divorce, or marriage).  To further eliminate conflicts, compare the trust or will beneficiaries to the ones named in your retirement plans or insurance.

Tags: decision, durable power of attorney, fees, financial, guardianship, healthcare, living will, planning, probate, revocable living trust, state, trust, will
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Taking Family Trusts to the Next Level

Sunday, August 2nd, 2009

Beneficiaries of family trusts (oftentimes referred to as discretionary trusts), typically have no entitlement to assets held in trust, not until the trustee would exercise his or her discretion and distribute capital or income in their favor.  For example, when a father passed away, his wife may inherit the house or other assets that form part of his estate.  Then, the children (if they’re not minors) would usually take control of the trust and business.  However, trusts commonly have beneficiaries who are creditors too - this part is most often overlooked.

The reason that family trusts (especially those that carry business) tend to have creditors as beneficiaries is because the trustee would be taxed on the debts with a 46.5% flat rate unless he or she distributes all profits, earnings, and realized capital gains in a financial year.  This is one of family trusts’ benefits - the ability to stream the various classes of income and give it to most appropriate beneficiaries so that in the end, a lower tax amount is paid generally compared to business structures where the owners have fixed settlement.

Ideally, a succession plan requires a solicitor, accountant, lawyer, and financial adviser working together.  This will encourage a smooth facilitation so that the estate plan is complied with in a timely manner.

Tags: accountant, beneficiaries, capital, creditors, discretionary trusts, estate plan, family trusts, financial advisor, income, lawyer, solicitor, sucession plan, trust, trustee
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Understand Estate Planning

Sunday, August 2nd, 2009

In spite of recent financial setbacks, a lot of people are claiming to be better off financially compared to five years ago.  That’s why when a group of financial expert asked novices in the investment arena what estate planning they have done in the past, they were surprised that there was no affirmative answer.  Most people looked perplexed and raised their eyebrows.  It seems that they’re confused whether the expert mean setting up a trust or drawing up a will.

The expert asked not to be named but he said “It’s very interesting to find out that most people have never heard of the estate planning concept.  And even those aware of it have not taken it seriously.  However, it’s going to be a very serious issue when people get richer.” 

Moreover, the director of Transcend Consulting, Kartik Jhaveri pointed out that “We’ve been trying to spread the concept so that a lot of people are aware of it, but we don’t get a lot of queries.”  Therefore, a wealth manager concluded that “People usually find estate planning difficult to grasp.  So it’s much better for us to talk about different concepts of financial planning (such as retirement planning) to explain things to people.”

Tags: estate plan, Estate Planning, financial, Kartik Jhaveri, Transcend Consulting, trust, wealth manager, will
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Transferring Real Estate Title

Saturday, August 1st, 2009

When you own property in another state, the only way that you can avoid probate proceedings is to prepare and record a new deed that will transfer the title to include joint owners.  These owners may be your beneficiaries such as your spouse and children.  You can also transfer the title to a revocable trust or to entities like partnerships, limited liability companies, and corporations.

When out-of-state real estate’s title is transferred to a trust, the title will not be held by an individual but by a trustee.  So even when the individual dies, the trust will still continue.  Same thing for transferring to an entity - it’s the entity that holds the real estate title and not the decedent.

While these are simple procedures, there are a few downsides to a joint ownership.  Any lease, mortgage, sale, or other transactions that involve the property require unanimous consent of every owner.  Another disadvantage is this: the interest of any joint tenant is exposed to creditors’ claims.

And if your property is a pied-a-terr in Paris or an island villa in Antigua, you need to consider estate tax systems and probate in foreign countries.  Therefore, your attorney needs to work with a lawyer in a foreign jurisdiction for proper coordination and inclusion of the property in your estate plan.   

Tags: attorney, estate plan, joint owners, lawyer, probate, property, revocable trust, tax systems, transfer title, trust, trustee
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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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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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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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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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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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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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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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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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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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Common Answers about Trusts and Wills

Thursday, July 2nd, 2009

There are no additional filings or fees in setting up a trust.  However, it’s likely more complicated and more expensive compared to drawing up a will.  The costs vary widely - it would depend on the complexity and size of the estate - attorneys could charge several thousands of dollars on these documents.  But for most basic estates, wills could cost about $500 each, according to Steve Akers, a managing director of a New York wealth-management firm named Bessemer Trust Co.

Anybody having possession of your will (usually your attorney) is obligated to file it in the courts upon your death.  Therefore, Akers stressed that you should leave copies of your trusts with your designated trustees or attorneys.

A common reason for choosing to set up a trust instead of a will is to avoid the court proceedings.  These wills need to be filed in probate court in order to be executed, which means that they become public documents.  Costs could be between 1-3% and administrative court fees would come out of the estate.  Use of wills are more common in states that have simpler court procedures and hearings are quick (sometimes even for 15 minutes).  While with trust, your assets will be simply transferred to designated trustees (or trustee) upon your death.

Tags: attorney, attorneys, Bessemer Trust Co., court, Steve Akers, trust, trustee, trusteees, will, Wills
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Make Sure You Have the Right Estate Plan

Monday, June 22nd, 2009

There was once a lady who recently lost her husband.  She is in the midst of settling his affairs but the problem is that she’s having trouble cashing a check from the insurance company because it’s payable to a trust.  However, she claims that they don’t have a trust in place.

After reviewing the check and a pile of papers, the Indiana Bar member, senior trust officer and vice president of First National Bank, Christopher W. Yugo, indeed found a joint trust amendment which changed the trustees.  The amendment was signed by the lady and her husband but she swore that she never met an attorney.

As Yugo probed deeper, he realized that the couple sought the assistance of a financial planner for their estate plan.  Then, the planner took the information to one attorney who prepared the necessary documents.  In the end, the documents were returned to the planner who probably did his best to execute the plan while ignoring the implications of unauthorized law practice.

You can learn two things from this story.  First, be careful who you approach for estate planning advice.  It’s always critical for you to meet with an attorney before executing an estate plan.  Second, it’s important to have a basic knowledge of estate planning.  Furthermore, don’t hesitate to ask a lot of questions to your attorney so that you’ll understand every detail of your estate plan.

Tags: attorney, Christopher W. Yugo, estate plan, Estate Planning, financial planner, trust, trust amendment, trustees
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Advantages of Revocable Family Trust

Sunday, June 21st, 2009

A trust can only be effective if you own the title to the asset or property.  Remember that when you transfer your assets’ title into trust, it’s called “Funding your Trust.”  And when assets are already moved, then there’s no need for probate because the control of the estate is now transferred to the trustee.

Here are some advantages of using revocable family trust:

• -If ever an accident or illness leaves you incapacitated, then your successor trustee would be able to handle your financial affairs - the court will not need to appoint any conservator or guardian.
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• -If beneficiaries are minor children, the trust continues to hold assets until the children reaches a more mature age.
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• -If you own real estate properties in several states, you can avoid the hassle, time, and expense of multiple probate proceedings.
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• -Husbands and wives can maximize federal estate tax exemptions.
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• -Trusts are more difficult to contest compared to a traditional will. In order to invalidate it, either you prove that it’s signed under duress or the maker was incompetent during the signing day.
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• -It’s almost impossible to contest family trusts. When wills are contested, the assets are usually frozen, however, assets placed in family trusts can still be distributed pending the legal challenge outcome.

Tags: advantages beneficiaries, asset, estate, Family Trust, family trusts, probate, property, trust, trustee, trusts
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Legal Terms in a Will

Saturday, June 20th, 2009

You’ve probably watched this scene in a movie - a family sits in an office while an attorney reads a last will and testament from their wealthy grandfather.  And then it reads “Being of sound body and mind, I, Reginald V. Gotrocks, hereby bequeath all my fortune and possessions to one person who’s been there for me rain or shine, day in or day out…..my mailman Jim.”

The next thing that would happen is that the family may vow to contest the crazy will of the old man.  Unfortunately, if the will has been properly drafted, it’s one of the iron-clad documents in law.

The truth is that everyone of legal age should have a will.  If not, the court will never know how you intend to dispose your possessions - be it land, money, computer, or your pet cat.

It’s also important to know the legal terms in a will:

• Testator - person who owns the will
• Executor - person who’ll carry it out
• Beneficiary - recipient of the  assets
• Probate - court that will prove the will’s validity
• Bequest - gift of personal property coming from testator to beneficiary
• Codicil - written amendment to the will
• Intestate - a person have died without a will (opposite of “testate”)
• Trust - entity holding assets until later, which also allows the beneficiary to bypass probate.
• .

Tags: attorney, beneficiary, bequest, codicil, court, executor, intestate, probate, testator, trust, will, will and testament
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What is Estate Planning?

Thursday, June 18th, 2009

It’s important to have an “estate plan” in place no matter how much your net worth is.  Such plan will ensure that your financial goals are met and your family gets your assets after you pass away.

Several elements of an estate plan include: a will, living will or a health-care proxy (sometimes called medical power of attorney), and power of attorney assignment.  For some people, it would also make sense to have a “trust.”  However, you have to be mindful of both state and federal laws governing estates.  That is why it’s important to consult an attorney for your estate planning.

A good place to start is to take inventory of your assets.  These consist of your business interests, real estate properties, insurance policies, retirement savings, and other investments.  Answer these three questions?

1. 1. Who will inherit your assets?
2. 2. If ever you’re incapacitated, who do you want to handle your financial affairs?
3. 3. If you’re unable to make decisions yourself, who do you want to make medical decisions for you?

Remember that everybody needs an estate plan and it’s not just for the wealthy.  Inheritance can sometimes be a loaded issue.  So by being clear on your intentions, you can help dispel potential conflicts when you’re gone.

Tags: assets, attorney, estate plan, health-care proxy, inheritance, laws, living will, power of attorney, trust, will
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