Arizona Wills & Trusts Blog

Make Financial and Estate Planning a Priority

Greenwich Citizen: Financial planning and estate planning are two distinctly different areas of life planning. They do, however, interact consistently and work hand in hand when planning for the preservation of wealth and the future wellbeing of your loved ones.

The essence of both estate planning and financial planning is to ensure that once you have passed away, your personal and financial goals have been met.

Dealing with the issues of death, illness and the future care of loved ones is often an issue that most people fail to make a priority on their list “things to do.” However, advanced planning is essential, and the advantages of having a good estate plan should be a top priority above all emotional issues.

On the Net2017-10-07T11:14:45-07:00September 23rd, 2011|Estate Planning|

Preparing Your Finances For Death

US News & World Report: Preparing your finances for your death is a topic many don't want to talk about. Death is inevitable, however, and if you don't take the time to plan, your wishes (and your family's financial security) could be at risk.

Everyone should make a few preparations to ensure that decisions are made with the right frame of mind and not out of emotion or grief. Creating a will, naming an executor, and considering your estate are all extremely important. In addition, talk to your family about the following four topics:

On the Net2017-10-07T11:14:45-07:00September 23rd, 2011|Beneficiaries, Estate Planning|

Probate Explained

Toledo Free Press: As an estate planning attorney, I (Mark) often deal with helping the clients of The Retirement Guys plan how to best pass their assets on to their loved ones when they pass away. This is a very serious matter if you think about it. Folks have worked hard all their lives to provide the best lives they can to their family members. They have sweated, sacrificed and gone without to make a better life. Think back on how you sacrificed.

The first thing everyone should consider is creating a will. This document decides where all your stuff goes when you die. How does it do this? By a process called probate. Many have heard the expression, “avoid probate,” or “probate is bad.” Is it really? Let’s take a moment to examine this and see if we can better understand this evil thing called probate. What is probate? My definition of probate is that it is a court-supervised process to get assets that are titled in your name to where you want them to go.

On the Net2016-12-13T20:33:40-08:00September 23rd, 2011|Probate|

Gun Collections Pose Special Estate Problems

Forbes: “Gun Trusts are used for two main reasons. The first is to expedite a transfer of a National Firearms Act firearm. . . . The second reason is to provide detailed instructions over disposition of one’s gun collection. Many gun dealers make trust forms available. The problem is that they are usually just standard revocable living trusts, not specifically written about firearms ownership. They typically do not provide guidance or limitations for the Trustee who may find him or herself committing a felony in the way the items are used, held, transferred or sold. Some people cannot legally possess firearms. Some transfers are illegal. A properly written ‘Gun Trust' for NFA purposes is far more than a form.”

To learn more about this topic, read “NFA Gun Trusts” and “Distributions of NFA Firearms from an Estate.”

On the Net2013-03-23T10:27:06-07:00September 22nd, 2011|Gun Trusts|

Proper Planning Can Eliminate Estate Conflicts

Reading Eagle.com: A nephew of an elderly Berks County woman who died and left a $200,000 estate accused his aunt's caretakers of forcing the woman to change her will to give the couple her money.

Register of Wills Lawrence J. Medaglia Jr. said the nephew, who had no close ties to his aunt, saw a quick way to get cash.

“The nephew then asked his aunt to sign another will, as she was dying, to change her will, taking the couple out,” said Medaglia, who has held his office for 16 years. “The nephew saw dollar signs from an aunt who had no kids.”

Medaglia, who held a hearing on the matter, ruled in favor of the caretaker couple.

A Berks County judge upheld his decision.

Medaglia recommends hiring an attorney who specializes in writing wills. He said that of the 700 lawyers practicing in Berks about 150 write wills as part of their practice.

This is an example of the 35 to 40 contested wills he handles in a typical year. The hearing lasted three days.

On the Net2011-09-20T10:07:41-07:00September 20th, 2011|Estate Planning|

Online Gravesites?

The Star.com: A California startup is extending social media to the dead.

I-Postmortem Ltd., based in Palo Alto, allows clients — while still alive — to create an interactive memorial to themselves through photos, letters, poems, and audio and video files.

After death, a client can also send timed messages — to a son on his 21st birthday, say, or a daughter on her wedding day.

“Imagine if we had a service like this in the 1920s or 1930s,” company founder Jacques Mechelany said by phone Tuesday of the legacy side to the technology.

“We would be able to see what people were saying about their own life, their choices, the problems they confronted,” he said. “We would have a wealth of information.”

On the Net2016-12-13T20:33:40-08:00September 16th, 2011|Estate Planning|

IRS Gives Relief From Filing Deadline For 2010 Heirs

Forbes.com: On September 13, 2011, the IRS released Notice 2011-76, which gives executors of estates of 2010 decedents more time to make an informed decision about whether to stay in the default estate tax regime for 2010 or opt out of the estate tax entirely.

The estate tax was repealed for most of 2010. But on December 17, 2010, President Obama signed a law that reinstated the estate tax retroactive to January 1, 2010. This law set the estate tax at a rate of 35% and provided an estate tax exemption of $5 million.

In a move that helped wealthy beneficiaries, including the beneficiaries of some billionaires, lawmakers made the estate tax in 2010 an optional, default regime. Executors of the estates of 2010 decedents can opt out of the estate tax by filing a special form—Form 8939 (Allocation of Increase in Basis for Property Acquired From a Decedent).

On the Net2011-09-15T08:51:07-07:00September 15th, 2011|Estate Tax|

Who Is Your IRA Beneficiary?

Examiner.com: Deciding whom to designate as a beneficiary for your IRA might seem like an easy decision—you probably want your money to go to someone near and dear to you. But is the person (or people) you’re thinking of actually named as the beneficiary on the particular IRA you opened all those years ago?

To be certain, it’s wise to review your beneficiary designation form every few years, or whenever you’ve had a change in circumstances, such as a birth of a child or grandchild or change in marital status. Changing your beneficiary is easy—you simply complete a new beneficiary designation form. Keep in mind that a will or trust does not override this form, or the IRA document itself (which may have “default” beneficiary designations that control even if no beneficiary designation is on file), unless you name your estate or trust as your beneficiary. Because beneficiary designations are important estate-planning documents, you may want to review them with your attorney.

On the Net2016-12-13T20:33:40-08:00September 14th, 2011|Beneficiaries, Estate Planning|

Problems With Joint Ownership Between Generations

Forbes: Celebrities are not the only ones to make mistakes with their estate planning. It happens to people all across the country on a regular basis. The end result — just like with the rich and famous — often is an ugly and expensive family fight in court. One of the most common estate planning mistakes that people make is joint ownership.

For the most part, we’re not talking about when a husband and wife have joint bank accounts or the title to their home is held in both of their names. While not ideal for estate planning, this is quite common and can often be used without problems, except in many second-marriage situations or large estates that may suffer adverse tax consequences.

The area where we see significant problems, however, is when a parent adds a child’s name to an asset, such as a bank account, investment, or real estate. This is often done to help with bill paying, as a will-substitute to avoid probate court (often called a “poor-man’s will”), or simply to help an elderly loved one who needs assistance managing his or her assets. This is a big no-no!

On the Net2016-12-13T20:33:40-08:00September 14th, 2011|Estate Planning, Trusts|

Caring For Disabled Heirs

Wills, Trusts & Estates Prof Blog: Twelve percent of the U.S. population has a severe mental or physical disability, according to United State Census data. Additionally, two-thirds of caregivers do not have a plan for the future support of the disabled individual they care for. Three tips for planning for the future support of disabled heirs

On the Net2011-10-08T18:27:22-07:00September 12th, 2011|Estate Planning, Special Needs Trusts|

Before Speaking With An Estate Planning Attorney…

24-7 Press Release: If you have the vague, nagging sense you should do something about your estate plan (or lack thereof), here's a few suggestions of things to consider as you prepare to meet with an estate planning attorney.

Will most of your assets pass through the probate system? Probate is the process of verifying a will, or if there isn't a will, following the statutory intestate scheme to distribute the assets of a deceased person's estate.

In a will, you name a personal representative who distributes your assets and pays your debts. While virtually anyone can serve as personal representative, you may want to consider both the complexity of your estate and the qualifications of the person.

On the Net2017-10-07T11:14:45-07:00September 12th, 2011|Estate Planning, Guardianship|

Healthcare Questions To Ask

Estate of Denial: When Roberta Battle and her 10 siblings gathered in Washington, D.C., twice each year for their parents’ birthdays, her mother, Helen Harper White, always initiated a family business meeting. The agenda included her and her husband’s wills, their health care wishes, their financial situation — the entire spectrum of issues that experts call end-of-life planning.

When White died in 2009 at age 92, the family was prepared.

“With that background, I should be better prepared than I am myself,” said Battle, 67, a retired consultant. “I haven’t even done my own health care directive. I’ve just told my daughter things.”

For millions of baby boomers and their parents, this conversation is the elephant in the room. And in today’s volatile political and financial landscape, experts say, frank discussions between the generations about money, health care and other end-of-life issues are all the more crucial.

On the Net2011-09-12T10:16:39-07:00September 12th, 2011|Healthcare Directives|

Will Baby Boomers Leave Inheritances?

Estate of Denial: Two recent articles discuss changing attitudes and how decreasing numbers of Baby Boomers will leave significant inheritances for their kids. In Many boomers plan to leave no inheritance, the UPI discusses a Los Angeles Times report that says a survey of millionaire baby boomers by investment firm U.S. Trust found only 49 percent deemed it important to leave money to their children when they die.

On the Net2011-10-08T18:29:52-07:00September 9th, 2011|Estate Planning|

Estate Planning Tips If You Plan To Be Frozen

Wills, Trusts & Estates Prof Blog: Former “American Idol” judge, Simon Cowell, recently told GQ magazine that he wants to be frozen when dies, with the hope that science will advance enough to where he can be unfrozen and live again. Cowell is not the only person considering cryogenic freezing after death. The ALCOR Life Extension Foundation in Phoenix, Arizona already has 100 frozen patients, with almost another 1,000 on the waiting list. But with the possibility of “coming back from the dead” comes issues of paying for the body’s upkeep and preserving assets for if or when the patient is unfrozen.

ALCOR currenlty charges $90,000 for freezing the entire body and requires another $110,000 in a trust for maintenance and storage. As far as providing financially for the patient after he or she is unfrozen, some attorneys point to dynasty trusts. Peggy Hoyt, and estate planner in Florida, drafts “personal revival trusts” specifically designed for cryogenically preserved clients. The trust allows intermediate beneficiaries like family and charities to inherit if something goes wrong and allows for payments to the cryogenic facility.

On the Net2016-12-13T20:33:40-08:00September 8th, 2011|Estate Planning, Odd Requests|

What You Should Expect When Estate Planning

Nevada Appeal: Clients often admit that they procrastinated before engaging me, largely because they didn't know what estate planning entailed. Though the process involves some work, a law office that focuses on estate planning matters can walk you through it so that you develop a comfortable understanding of what you are getting and why.

When developing an estate plan, you're planning for the management of your finances during life, and for the eventual transfer of all that you own. When considering a trust-based plan, you and your attorney need to look at all of your assets to determine how they fit into the plan. More importantly, you'll need to look at loved ones and professional contacts to determine who warrants your trust in managing the biggest transaction of your life. Then, you need to talk about your beneficiaries. Whether it's your kids or your favorite charities, how they should receive your assets is all part of the discussion.

If your estate is more complicated, your attorney may want to work directly with your financial adviser or your accountant, and he or she may become one of your long-term advisers. The good news is that the more issues or complications you have without a plan, the more value you'll receive from obtaining one.

On the Net2017-10-07T11:14:45-07:00September 7th, 2011|Estate Planning, Powers of Attorney, Trusts, Wills|

Caring For Disabled Heirs

Estate of Denial: Deciding how to leave your assets to your kids is tricky enough. If your adult child has a chronic disability, the task is much more complicated.

The issue affects many families: According to U.S. Census data, 12% of the population has a severe mental or physical disability.

Strapped state and local governments are tightening income restrictions for medical benefits and supportive services, which are typically paid for by Social Security and Medicaid. Those services are tough to find—or afford—in the private sector for many adults with disabilities so severe that they can’t live alone, parents and advocates say.

As a result, it’s increasingly important to structure an inheritance in a way that won’t disqualify a child for such benefits down the road.

On the Net2011-09-07T09:08:34-07:00September 7th, 2011|Estate Planning, Special Needs Trusts, Wills|

Surviving Spouse’s To-Do List

Yahoo! Finance: The death of a spouse is one of the most devastating events of a person's life. To make matters worse, at a time when you feel incapable of dealing with life's routines, you're slammed with an avalanche of financial tasks that require immediate attention. This can be particularly stressful if the surviving spouse, usually the wife, did not play an active role in the household finances.

But despite the pressure to do so, this is precisely the wrong time to make major financial decisions. If you act precipitously, you may make costly mistakes that will be tough to unwind later. “I tell my clients that they should be in a decision-free zone for six months to a year,” says Karen Folk, a certified financial planner in Urbana, Ill.

Don't put your house on the market. Don't give away money to your children or charity. Don't sell stocks or bonds. And don't agree to move in with an adult child, says Folk. Eventually, any of these steps may make perfect sense. But take a breather in the overwhelming weeks and months after a spouse dies

On the Net2017-10-07T11:14:45-07:00September 1st, 2011|Estate Planning|

Annuities And Estate Planning

Wealth Strategies Journal: The Law of Unintended Consequences generally holds that human conduct will produce at least one unintended consequence over a course of time and during a series of activities or transactions.

Disclaimer: Material is presented here for general information purposes and does not constitute legal or tax advice. The intent of the material is to provide some insights into the issues which can arise when proper due diligence and qualified counsel may be somewhat absent during the annuity sales process.

The law of unintended consequences is an adage or idiomatic warning that an intervention in a complex system always creates unexpected and often undesirable outcomes. [wikipedia.org] In the financial world there are few better examples of a “complexity” than annuity contracts.

When annuities intersect with trust drafting by estate planning attorneys, expect the unexpected. A few case histories from the file will illustrate the point and serve as harbinger of advisory challenges.

On the Net2017-10-07T11:14:45-07:00September 1st, 2011|Estate Planning, Estate Tax, Trusts|

Supreme Court Ruling In Anna Nicole Smith Case Causes Major Confusion

Estate of Denial: The U.S. Supreme Court’s recent decision in Stern v. Marshall, 131 S. Ct. 2594 (2011), has a narrow holding, but potentially enormous implications for bankruptcy courts and litigation in the federal courts. The authority not just of bankruptcy judges but also of federal magistrate judges is now uncertain.

The case involved a dispute between Anna Nicole Smith and Pierce Marshall over inheritance from the very large estate of J. Howard Marshall. To make a long story short, Smith, the widow of Howard Marshall, filed for bankruptcy in the Central District of California. Pierce Marshall, Howard Marshall’s son, filed a proof of claim, primarily alleging that Smith had defamed him. Smith then filed a counterclaim asserting that Pierce Marshall tortuously interfered with her ability to recover from Howard Marshall’s estate. The bankruptcy court ruled in favor of Smith on her counterclaim and awarded her $425 million, which ultimately was reduced to $88 million.

Subsequent to the bankruptcy court’s decision, the Texas probate court ruled in favor of Pierce Marshall. This question, therefore, was one of preclusion. Did the bankruptcy court have the legal authority to issue a final judgment on the state law counterclaim, in which case there was preclusion of the Texas probate court’s decision?

On the Net2011-09-01T08:37:15-07:00September 1st, 2011|Estate Fights, Rich & Famous|