Friday, August 12, 2011 The Importance of an Estate Plan at Any Age
I just read the article below and thought it was interesting and important to share.
Amy Winehouse had many ups and downs during her short life, but it appears the singer/songwriter left behind an up-to-date and ironclad estate plan. Winehouse's tragic death at age 27 illustrates why you are never too young for a will.
Winehouse and Blake Fielder-Civil were married briefly. Under English law, marriage negates any wills made before the marriage, but if a couple divorces and there is no new will, the ex-spouse is the favored beneficiary. Fortunately, Winehouse reportedly updated her will to ensure that Fielder-Civil, who is currently in jail for burglary and possession of an imitation firearm, would not inherit any of her estate. Under Winehouse's will her fortune, estimated at $16 million, will go to her divorced parents and her brother.
In the United States, if you die without a will, the state dictates who will inherit from you. If you are married, most states award one-third to one-half of your estate to your spouse, with the rest divided among your children or, if you don't have children, to other living relatives such as your parents or siblings. If you are single, most states provide that your estate will go to your children or to other living relatives if you don't have children. If you have absolutely no living relatives, then your estate will go to the state.
If you have accumulated some assets (it doesn't have to be Winehouse's millions) or have young children that will need a guardian, then it is time to start thinking about an estate plan. Planning your estate with a will or trust is the best way to ensure your estate is distributed the way you want it to.
Not long ago I was talking to a colleague that had recently become a father. I jokingly said “now that you have a child you need a will and I know people who can put one together for you” The guy looked at me with shock on his face and said “what do you think I’m about to die”. I was amazed that he thought a will was only for the elderly. It’s unfortunate that this is the way many people think about estate planning. I know of several people who died unexpectedly at a young age and it caused their family stress, confusion and a great deal of sadness when they had to make decisions not knowing what their child would have wanted. I say to people all the time that putting together a will, living will and powers of attorney are like a gift to your family and I truly believe that.
Friday, August 05, 2011 The Internal Revenue Service: They may be slow but they are not stupid!
Over the years I have heard of folks "selling" their land to a son or daughter for a $1.00. New real estate deeds were prepared and recorded.
A recent American Bar Journal article recently stated that the Internal Revenue Service is reviewing land-transfer documents across the nation to see if corresponding federal gift tax returns (IRS Form 709) were ever filed evidencing these gift transfers to family members. If the land transfer was valued at more than the annual gift exemption (which has ranged from $3,000 to the current day amount of $13,000), a gift tax return must be filed. The IRS is finding that hundreds of gift tax returns were never filed! While the current lifetime gift exemption, as of this year is $5,000,000, in prior years the exemption was much lower. It is possible these gifts, when discovered, will not only be taxable, but interests and penalties may apply!
Jonathan S. Frank, ESQ Tuesday, June 28, 2011 A Retirement Community Just For You
I just read the following article from the Wall Street Journal about a new trend in retirement communities.
"Whether you're an RV aficionado, a Tai Chi enthusiast or even an avowed nudist (gulp), a growing number of retirement communities are clamoring for your business with so-called niche retirement homes."
I hope this trend is true and will continue to grow. I would like to see more diversity in the communities myself. The baby boomer generation is so diverse retirement communities need to change in order to stay in business.
Still the number one question I keep hearing is how I can afford a retirement communities. My answer is, get your estate plan in order now. Don't wait until you're in a crisis to think about Medicaid Planning, Veterans Benefits and Guardianships. Estate planning is important for anyone at any age. I hope that as our community becomes more educated with Estate Planning and Elder law more seniors will be able to choose where they want to live for what the community has to offer not because it’s what they can afford.
~Carrie
http://online.wsj.com/article_email/SB10001424052702304569504576408241776166346-lMyQjAxMTAxMDIwODEyNDgyWj.html Wednesday, June 22, 2011 Estate Planning Options for Long Term Care
Before I started working for The Law Offices Of Jonathan S. Frank I thought Estate Planning was only for the very wealthy. Now I know Estate Planning should be done by everyone, must importantly by middle class folks. The middle class are the ones who need options for Long Term Care payment. Options such as Medicaid Planning and Veterans Benefit Planning. Almost once a month I sit down with a client who is trying to figure out how to pay for his/her parents care. The parent has too much money to get Medicaid but not enough money to pay for the care they need. Below is a great article on this subject.
Carrie Barto, Client Relations Director
http://largo.patch.com/articles/exploring-affordability-options-for-senior-living Sunday, February 20, 2011 When to update your estate planning documents?
I often get the question from my clients: when do I need to update my estate planning documents? My general response is that your estate plan may need updating anytime you have a life event. The next question is, of course: what constitutes a life event? Here is a list of some triggering events that should make you pull out your documents and determine whether an update is necessary:
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Change in marital status (married, divorced, or someone in estate plan gets married or divorced)
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Children (you've had a child since completing your estate planning documents, children reach 18 yrs, you've adopted a child)
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Death or Disability (if a family member, close friend or someone named in your estate plan dies or becomes disabled)
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Change in financial status (an increase or decrease in the size of your estate or nature of your assets)
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Change in the law (some changes in the law may have a dramatic impact on your estate plan)
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Relocation to a new state
There are many other events that can have an impact on your estate plan. Outside of the triggering events listed above, a good rule of thumb is to review your estate planning documents with your attorney every 3-5 years.
RYAN W. MONK, licensed in NC & SC
Elder Law, Estate Planning, Asset Protection |