We all want to ensure our loved ones are protected and provided for, but sometimes the process of doing so can appear overwhelming, and prevent you from even taking the first steps. When it comes to protecting your family and your future with an estate plan, the process can actually be as easy as 1… 2… 3…

1. Assessment. The first step to creating a plan that can protect your family, your future, and your family’s future begins with simply taking stock of what you have and where you are. Begin by making a list of all your assets, including your house, stocks, investments, bank accounts and personal property. Next consider your responsibilities and goals: what are your plans for the future or for retirement? Who do you wish to provide for in your will? Do you have a spouse or children who might benefit from a trust?

2. Implementation. Now it’s time to put all that information you gathered in step one into play. The particulars of your estate will have a great impact on how you build your estate plan: A small estate and straightforward inheritance plan may require only a well-drafted will, while a larger estate may benefit from the asset protections found with a trust. Your goals for the future and your wishes for your family will have an equally large impact on your choice of estate planning strategies as well, including whether to include an education trust for young students, a pet trust for your furry family members, or a retirement trust to protect your own investments. An estate planning attorney can help you understand your options and implement the strategy you feel works best for your family.

3. Follow-Through. Once your estate plan is drafted, signed, and tucked safely away you’ll want to ensure that it continues working as you intend it to. The best way to do this is to review your plan with your estate planning attorney every 2 or 3 years. Your family and financial situation is likely to change over the years—estate taxes and laws change as well—and all the hard work you put into creating your plan can be undone if you don’t keep up with the changes.

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Parents of young children always seem to be busy, and we know that it can be difficult to find the time to think about something that you hope will never happen. With all the “To Do’s” and distractions out there, too many parents simply avoid thinking about a will, trust, or guardianship for their children; hoping that it will never be needed. But your children deserve more than good luck and crossed fingers, and we recommend making 2012 the year that you take the (sometimes difficult) steps necessary to ensure that your minor children are protected no matter what the future may bring.

1. Create a nomination of guardians for your children. The single-most important step you can take to ensure the well-being of your children is to execute a nomination of guardians. This is the document that names who you believe are the best and most loving people to parent your children if something should happen to you. This document is your children’s best protection against unqualified guardians or the foster care system.

2. Talk to your attorney about protecting your children’s inheritance (and in some cases protecting your children from receiving an inheritance too soon) with a trust. With a trust you can ensure that your children will be provided for financially until they reach adulthood, as well as leave a legacy for your children which includes your financial, philanthropic, and educational values.

3. Invest in your child’s higher education. Education is more important than ever in our current economic situation, and parents can resolve in 2012 to secure their child’s education by setting up a 529 education savings plan. This is something that parents can contribute to regularly, as well as grandparents, aunts and uncles, and more. A 529 plan that you set up today will be there even if you can’t be. After all, protecting your child’s future doesn’t stop when they reach 18.

If you have other questions or concerns about how to protect your minor children please contact our office today. We can help ensure your children will be provided for—and that you will have the peace of mind you deserve.

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Without a doubt the most frequent and popular New Year’s Resolutions made each year have to do with health. People resolve to exercise more, to lose weight, to eat better, etc. But far too few people are aware that in addition being healthy in body and mind, there are steps you can (and should) take to protect your medical future and privacy as well.

1. Think about your medical future and put your wishes into writing. How would you like to be cared for in the event that you are incapacitated? How long (and by what measures) would you like to be kept alive if you were to be irrevocably injured or diagnosed with a terminal illness? Who would you like making these decisions for you if you were unable to make them for yourself? These are the issues addressed in an advanced healthcare directive or a living will—documents every adult should have not only for their own peace of mind, but for the peace of mind of their family and loved ones as well.

2. Execute a HIPAA to help protect your medical privacy. A HIPAA Authorization is the document that lets your doctors and other health care providers know who may receive information about your medical status and treatment. Not only does this protect your privacy, but it ensures that the people who should be informed about your medical status will have access to the information they need.

3. Consider your eventual long-term care needs and look into long-term care insurance as a safety net. There is no way to know for sure which of us will need long-term care, but as life-expectancy increases the chances that any of us will need long-term care increase along with it. You can plan for this eventuality and protect yourself and your family from being hit too hard by the expenses of long-term care by investing in long-term care insurance. There are a few options available for long-term care insurance, and our office can help you choose which plan might be best for you.

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As the old year draws to a close and the new year approaches, many people are taking the time to reflect on 2011 and look forward to 2012, making the traditional New Year’s Resolutions for the year ahead. Many of these resolutions will be very personal—having to do with exercise, work, or personal habits, but there will be some resolutions that can be made which will benefit not just an individual, but their family and loved ones as well. The focus of our blog this week will be on which resolutions you can make to benefit your family and loved ones in 2012, and how we can help.

Times have been tough financially for a lot of people over the past few years, and although things are finally beginning to look up, many people will still be making New Year’s resolutions that focus on fiscal responsibility and financial security. Below are three financial resolutions that can help your family in 2012:

1. Take stock of your current financial situation. Being well-informed and keeping good records of your income, expenses, investments and assets is absolutely essential for good financial health. If something happened to you tomorrow would your spouse or family know what to do and have access to the documents or information needed to protect or pass on your estate? Make a list of all your assets and investments, including account numbers and contact information and keep it in a safe place where your financial agent (or someone else you trust) can find it if and when necessary.

2. Make an investment plan for the future. As with anything in life, it’s important to be prepared for what the future may hold. Having a five year, ten year, and fifty year plan for your financial future is one of the best things you can do for yourself and your family. When making your plans take into account your current situation, your future goals, and your wildest hopes and dreams for the years ahead. Consult with a knowledgeable financial advisor who can help you plan for and achieve these goals.

3. Protect your assets. We live in a litigious and uncertain world and protecting the assets you have is of the utmost importance. Our firm can help you evaluate and implement the many options available to you to protect your assets. The asset protection strategies you choose will depend on the nature of your assets, the situation of your family, and your goals for the future.

Taking the right steps in 2012 can mean a strong financial base now, as well as a bright and secure future in the years ahead for you and your family. Our firm would like to help protect that future. Call us today.

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The answer to the title question is that just about every family can benefit from a trust. The rich and famous tend to utilize trusts because of the privacy they provide, the long-term asset protection, the tax benefits, and their flexibility; but each and every family, regardless of fame or income, can reap the exact same benefits making a trust a part of their estate plan.

According to this article on the CNN Money website, you can benefit from a trust “if you have a net worth of at least $100,000 and meet one of the following conditions…

• “A sizable amount of your assets is in real estate, a business or an art collection;
• You want to leave your estate to your heirs in a way that is not directly and immediately payable to them upon your death. For example, you may want to stipulate that they receive their inheritance in three parts, or upon certain conditions being met, such as graduating from college;
• You want to support your surviving spouse, but also want to ensure that the principal or remainder of your estate goes to your chosen heirs (e.g., your children from a first marriage) after your spouse dies;
• You and your spouse want to maximize your estate-tax exemptions;
• You have a disabled relative whom you would like to provide for without disqualifying him or her from Medicaid or other government assistance.”

The article goes on to explain that depending on your assets, your family, and your goals you may have a number of different trust options to choose from. The article gives very helpful explanation of the various types of trusts you may have available to you, and will give an idea of just how powerful and flexible a trust can be.

What the article doesn’t mention is that some of these trusts can be used in conjunction with each other, to provide layers of protection and control of your assets. The world of trusts is complex, but full of potential. Please contact our office (or your own local estate planner) to learn more about trusts, and determine how a trust might be good for your family.

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Most parents (even parents of adult children) want to provide for their children—but not necessarily right away, and maybe not all at once. According to a recent article in Barron’s, “A growing number of parents are shunning the time-honored practice of handing big inheritances to their children when they turn 21. Instead, they’re waiting until the kiddies are in their 30s and 40s.”

The reason for this is that more and more parents are coming to realize that there is a learning curve associated with handling large sums of money, and dropping a large inheritance in your child’s lap may be giving he or she more than they can reasonably handle all at once, essentially setting your child up for failure. “Premature distributions to heirs can have the same effect as the jackpot has on lottery winners… The money becomes a burden, and your child may not fully develop into the adult you hope to raise.”

Luckily, if you don’t want to bequeath a fortune to your children all at once, you have a number of options for ensuring your children are provided for and eventually receive the inheritance you intend for them. As mentioned in the Barron’s article, some of the most popular strategies include passing an inheritance through either a revocable or an irrevocable trust. A trust allows a parent to transfer assets to their children while still retaining control of when and how the assets will be distributed. Of these two options, a revocable trust can provide more flexibility, while an irrevocable trust can provide more asset protection, although both kinds of trusts provide a measure of each. You will want to discuss with your estate planning attorney which option will work best for your family.

With either trust option parents can choose to simply keep the inheritance in trust until the child reaches a certain age, or distribute funds slowly over the course of time, to better acquaint the recipient with the responsibilities of wealth. However you choose to structure your estate plan, our firm can help you accomplish your goals for yourself and for your children.

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The holiday season is upon us, and as others rush about the malls and the internet looking for gifts, we can recommend a unique, useful and memorable gift that will be perfect for any loved one: An Estate Plan!

Before you roll your eyes at the idea, consider this: An estate plan is something every person needs, whether it’s your single younger nephew, your older sister with her two young children, or your retired, aging parents. Furthermore, although everyone needs an estate plan, many people (wrongly) consider it a luxury, and put off creating one—often until it’s too late.

You may be thinking, No, an estate plan is too personal (too expensive, too morbid) to give as a gift. But we can safely say that not one of these excuses is true. If you feel an estate plan is too personal a gift, we recommend giving a gift certificate good for the cost of a basic plan, which the recipient can then design and add to according to his or her needs. If you feel an entire estate plan is too expensive a gift, you may want to consider paying for a portion of the plan, or for the first consultation with an attorney, just to get your loved one started. And if it’s morbidity that you’re worried about, perhaps giving a “Loving Family Legacy Plan” sounds more appealing.

This year, don’t give a gift that will impress for a moment but be forgotten within a week; instead, give the gift that will protect your loved one—and their loved ones!—and will last for years to come. Give the gift of an estate plan.

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Much is made every November and December about spending time in the warm presence of your family, appreciating and caring for each other. If you belong to a close family we have plenty of posts on our blog about how you can protect and care for your family with an estate plan. But the sad truth is that not all families are happy, and estate planners learn that not everybody wants their parents or siblings (or even, on rare occasions, their children) to benefit from their wealth upon their death.

It’s not as unusual as you may think for someone to ask “How do I make sure my money won’t go to my family when I die?” The answer to this question is actually very easy—if you’ve had the foresight to create some kind of estate plan, that is. Without any kind of estate planning (a will or a trust, for example) the law automatically distributes your estate to your closest living relatives upon your death. But the simple act of creating a will or a trust can prevent this automatic distribution from happening.

A will or a trust can be as basic or as complex as you choose. Simply naming the people or organizations of your choice as your heirs is often enough to ensure that your wishes are followed, but if you are worried about relatives who may contest your wishes you may want to ask your attorney about stronger measures, such as including a disinheritance clause or a no-contest clause in your will or trust. This can be as simple as including a single sentence stating “I have specifically chosen not to provide for my brother John.”

We understand that not all families are the same, and not all people will want their wealth distributed in the usual manner. If you have a unique family situation, or unusual circumstances or requests, please don’t hesitate to contact our office. We can help.

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As the cost of a college education skyrockets, and the unemployment rate for new college graduates holds steady at a depressing 17 percent, more and more grandparents are feeling the pressure to help their college age grandchildren pay for college expenses, or help with student loans after graduation.

While college students (and their families) could certainly use the help, is lending financial assistance a good idea for grandparents? This article in the Wall Street Journal says maybe not. “Some grandparents are making financial mistakes that could put their own financial future in jeopardy. Promising too much to grandchildren, not saving enough for their own possible health-care needs and paying off their grandchildren’s loans are some of the mistakes well-meaning grandparents are making”

For grandparents who would like to lend a helping hand to their children and grandchildren, but are worried about neglecting their own financial futures, our office would like to suggest that there are a number of ways to help without shortchanging yourself. The WSJ article suggests that grandparents can “give support in other ways such as volunteering with their grandchild or encouraging them to pursue an education.”

Another option is to spend your money wisely during your lifetime and make arrangements with your estate planner to leave the remainder of your fortune where it will do the most good after your death. If your grandchildren are still young you may want to have their inheritance used to fund an education trust, or specify that it is to be used to pay off any existing student loans. If you have older grandchildren you can provide invaluable financial assistance by specifying that an inheritance should be used to pay for their children’s college education, giving them some breathing room during those lean financial years.

However you choose to be of assistance to your children, grandchildren, or even your great-grandchildren, our office can help you accomplish your goals. Call us today.

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Ensuring you get the medical care you want in an emergency is a team effort which includes your attorney, your doctor, your healthcare agent, and your family and loved ones. But none of these people can be part of the team if they are unaware of your preferences. Here are five things to discuss with your doctor to make sure he or she is in the loop:

1. Your Advance Health Care Directive or Living Will. If you have already created a health care directive or living will we strongly suggest you give your primary care physician a copy of the document. It can be even more helpful to briefly discuss the document with your doctor and have him or her sign off on it, if possible. This prevents any unwelcome surprises, should an accident occur.

2. Your wishes for medical treatment if you are incapacitated. Part of creating an Advance Health Care Directive is outlining your wishes for medical treatment if you are incapacitated. This is more than just making a decision about a DNR (discussed in item #5), this also includes what medications or treatments you would like to receive and under what circumstances, it includes where you would like to receive long-term treatment if necessary, and it includes who you would like to be involved in medical decision-making (from your spouse, to your parents, to your favorite doctor or doctors.)

3. Your health care agent. This is the person who will be making medical decisions for you if you are unable to make them for yourself. We are not suggesting you bring your chosen agent in to meet your doctor, but briefly telling your doctor who the person is (your spouse, your brother, your daughter) and why you chose them can make all the difference.

4. Your HIPAA Authorization. This is the document that gives medical staff permission to share information about your health status with certain people. You can sign a generic HIPAA Authorization with your attorney as part of your estate plan, but it is likely that your physician and your local hospital will have their own forms to be signed. Ask your doctor how to ensure that the right people are getting the right information in case of emergency.

5. The inclusion (or lack) of a DNR statement in your medical file. We always hope that this will never be necessary, but we all learned our lesson from the Terri Shiavo case and know that it is better to be safe than sorry when it comes to your end-of-life wishes. Talk to your doctor about under what circumstances you would or wouldn’t want life-saving treatment, and the best way to include these wishes in your health care directive AND in your medical file.

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