What Your “Will” Really Does

Well, we are fast approaching Fall and our weather says its SUMMER! Spoke to my parents and they said it was actually cooler in Palm Desert then it was in Orange County. Can you believe that! On another note, I have met so many wonderful and successful women business owners in the past couple of weeks at various networking groups that I want to acknowledge them as a whole. It as has been such a blast to see so many women with young families, older families and successful careers all networking and seeing how we can all work together! So I know some of you have heard me say it before, if you have a Will that doesn’t do you much good! So here goes: You finally got around to making a will, so now you can rest easy. You went online, found the forms, filled them out and you’re done. If anything happens to you, your loved ones are taken care of.One less thing to worry about, right? I hate to cause you more sleepless nights, but just having a will is not the “be all and end all” of planning your estate. Let’s clear up a few misconceptions about what your will actually does and doesn’t do: Hope to hear from you soon, or see you at one of my upcoming Kids Protection Workshops. If you pass this along to someone who RSVP’s for the workshop YOU and the person who attends will receive a Free Starbucks card why not have coffee on me! Upcoming Workshops include: Oct. 7th Fullerton YMCA 6:30PM Oct. 21st Rossmoor Preschool 5PM If you would like for me to speak at your group, give me a call and we will set it up. Its totally Educational, well, 99.9% there is a 1% “sales pitch” to the Workshop.. but its light. Take care,

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This is What A Sound Will Actually Does

Your will distributes property that you own at the time of your death. You can divide up your property any way you choose as long as your state doesn’t prevent you from disinheriting a spouse or children. If you intend to do either of those things, you need to talk to a lawyer and make sure it’s even legal. If you have property that would legally pass outside your estate (things like joint property, life insurance, or retirement plans), you will does not provide for how those assets are distributed unless you’ve made them payable to your estate. Additional estate planning documents are required in order to do that. Needless to say, there are various types of wills and they can be incredibly simple or terribly complex. A very simple will is called exactly that – a simple will. A will that establishes trusts is usually called a testamentary trust will. If your will leaves assets to a trust created during your lifetime, it is called a pour-over will. If you have either a testamentary trust will or a pour-over will, it should provide for property management and protection from creditors for your heirs and minimize their tax obligations on whatever property they inherit. Aside from creating trusts and distributing property, you can also designate a guardian for your minor children. If your will is properly written and you’ve set up the right kind of trust and chosen the right trustee to handle your minor child’s estate, the need for court supervision will be limited or even eliminated. The same could hold true if you name an executor. Check with me to ensure that you’re taking full advantage of the laws in California and that these designations are made in accordance with those laws. What Your Will Does Not Do If you have any nonprobate property, such as real estate that would pass to a surviving owner, or an IRA or insurance policy payable to a named beneficiary, your will does not determine how those assets are passed on. These types of assets are governed by contract law. Just because you list them in your will does not ensure that they will be handled as you’ve requested. Always make sure that your beneficiary designations are up to date and in line with your intentions. Other types of nonprobate property you will want to account for are any jointly owned property, trusts, annuities, and retirement benefits and life insurance, to name a few. Makes filling out a form online and thinking you can sleep better at night a little less appealing, doesn’t it? A simple piece of paper will not necessarily ensure that everyone gets what you want them to have and that Uncle Sam doesn’t take more of what you’ve worked for than your loved ones receive. If you would like an expert opinion on exactly how effective your current will is, or advice on actually drafting a will, call us to schedule your Family Wealth Planning Session today. We can help ensure you take the right steps to take care of your loved ones if something happens to you. Also, as part of our estate planning process, we will interview you about your specific wishes and what you want your family to know. We provide you with a copy of the interview so you can pass on the information you want your family to remember. We understand that it’s not just about the paper you leave behind, but the voice you leave behind. Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Choosing the Right Trustee for Your Estate

Hope you are getting back in the swing of things now that school is back in session. I know everyone is trying to get on a schedule for the fall and finding it to be challenging. But I have to say this is approaching one of my favorite times of the year. To start, I love the fall weather, I seem to go to bed earlier and wake up very early (love early mornings) and of course, the fact that my husband and I met in October brings back lovely memories. Well, a reoccurring question is how do I decide the right Trustee? We have a small family and I am just not sure who I can trust? Below are a few suggestions that I like to give. Something you should give a lot of thought to. And if you have minor children this person could be managing the assets that you left behind for your minor children. One of the most important, and sometimes difficult, decisions you will make in setting up your estate plan is the choice of trustee. You want to choose people to handle your estate that you trust to carry out your wishes and represent your best interests. You may think your cousin Billy is the greatest guy on the planet, but he may not be the best choice to take care of your estate. To help you make the right determination, it helps to understand exactly what a trustee does and what you should consider in choosing him or her. So read below and if you have more questions feel free to call me. I would love to discuss all the reasons why you need a Trust, and of course naming your Trustees. I am getting ready for some Guardian Workshops! I hope you can join us! Oct. 7th Fullerton YMCA 6:30PM Oct. 21st Rossmoor Preschool 5PM If you would like for me to speak at your group, give me a call and we will set it up. Its totally Educational, well, 99.9% there is a 1% “sales pitch” to the Workshop.. but its light. Take care,

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First, Let’s Define “Trustee” The term “trustee” is bantered around quite a bit and is sometimes used incorrectly. A trustee is a person given the power to manage the assets that you title in the name of your Revocable Living Trust or any other trust agreement. A trustee can be an individual or an institution, such as a bank or a trust company. What Should I Consider When Naming a Trustee? Serving as a trustee for someone’s Living Trust is a big responsibility and can be very time consuming. You want to make sure that you choose someone who is up to the task. When choosing your trustee, consider the following character traits: Loyalty and a Sense of Fairness – If your trustee is named to take care of you and your affairs if you’re disabled, you want them to be loyal to you and take care of matters in the way you would want. If they are to continue to take care of your estate after your death, you want them to be fair to your beneficiaries. Your successor trustee must be fair minded enough to treat all your beneficiaries equally and protect all their interests in administering your trust. Trustworthiness – Is the person you’re thinking of naming as a trustee someone you would trust with your money or even your life? Remember, when you die your trustee could possibly be handling large sums of cash and property. Is this someone you would trust to invest the money well and sell your assets wisely? Practicality – Common sense is a very valuable character trait when it comes to administering an estate. Make sure your nominee is able to make practical decisions both when it comes to your care if you’re incapacitated and to your estate when you die. Organized – We’ll pick on Cousin Billy again. If he hasn’t balanced his own checkbook in 10 years and has a stack of bills permanently situated on his kitchen table with no clue what is or isn’t there, you may want to rethink naming him as a trustee. The person you name needs to be organized so that trust account balances and all bills, invoices, and other documents are handled promptly and properly. Tough – You don’t want to name someone as your trustee who is terminally unpleasant, but you definitely want someone who is tough-minded and strong willed enough to fend off greedy beneficiaries, deal with all the red tape involved in administering a trust and anything else that you just can’t plan for in advance. Who Do You Have To Choose From? To help you narrow down the pool of potential trustees, bear in mind that only adults can serve. That means they must be over the age of 21, although in some states the age of majority is 18. Also, depending upon the type of fiduciary nomination, your family and friends may or may not be eligible. In most cases, your family members will be allowed to serve as trustees, but that depends on the type of trust you’re establishing. Check with us to make sure that your friends and/or family are not excluded from serving as trustees before you nominate them. Some restrictions also apply to the naming of professional advisors, people who are not citizens of the United States, and some institutions. And, as always, if you decide on someone to serve as your trustee, discuss it with them before you put them in your estate planning documents and make sure they understand exactly what they’ll be undertaking. If you would like an expert opinion on the appropriate trustee for your particular circumstances, call us to schedule your Family Wealth Planning Session today. We can help you ensure that you make the right decision in choosing someone to carry out your wishes. Also, as part of our estate planning process, we will interview you about your specific wishes and what you want your family to know. We provide you with a copy of the interview so you can pass on the information you want your family to remember. We understand that it’s not just about the paper you leave behind, but your voice and your values that you express as part of your legacy. Call today and mention this article.

Deciding If Your Aging Loved One Needs Long Term Care

Well, I know this is a tough subject, but we all need to consider this. It might not be You or your Spouse but you might know someone who needs the Long Term plan, a parent, aunt, uncle, sister or brother? I recently met with a long term care provider who made it clear to me that if you are able, you should purchase a Long Term Plan before the BIG 50 mark. You can save lots of money if you get into a plan prior to 50. For whatever reason, that seems to be the turning point. If you need to speak to someone, let me know I have several contacts regarding Long Term Care. I hope you enjoy this week’s article. Its more about the emotional decisions instead of the actual policy. I hope you take a moment to really think about these issues. It’s hard to think about, but imagine one of these scenarios… Your mother falls, breaks her hip and requires hospitalization and long term follow up care… Your spouse repeatedly wanders off and gets lost… Your grandmother has lost an unusual amount of weight and refuses to leave home… At some point, each of us will be faced with one of these issues in some form or fashion. The tipping point in deciding whether or not a loved one needs long term care can come at any time and in ways we never imagined. If we’re smart we’ve planned for it, but in many cases making the decision to obtain long term care is done in response to an emergency situation. That makes the decision that much more difficult and can lead to making mistakes with serious consequences. I am getting ready for some Guardian Workshops! I hope you can join us! Oct. 7th Fullerton YMCA 6:30 Oct. 21st Rossmoor Preschool 5pm If you would like for me to speak at your group, give me a call and we will set it up. Its totally Educational, well, 99.9% there is a 1% “sales pitch” to the Workshop.. but its light. Take care, Click HERE to view my blog

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To To help you plan ahead for any of these unsettling mishaps and make the decision quickly, carefully and in the best interest of your family, here are a few things to consider: Warning Signs of the Need for Increased Care If your loved one is exhibiting any of these warning signs, you need to start planning now for their care before you have a crisis on your hands: • Difficulty walking – unsteady on their feet – recent fall(s) • Poor grooming or personal hygiene – soiled clothing • Loss of appetite – changes in eating/cooking habits • Spoiled or outdated food in the refrigerator – little or no nutritious food in the home • Diminished driving skills – recent accidents – near misses • Loss of interest in activities they once enjoyed • Reluctance to socialize • Poor concentration or poor judgment • Memory loss, forgetfulness or confusion • Mishandled medications • Persistent fatigue and lack of energy • Changes in personality – irritability – sudden mood changes • Unopened mail, past due bills, mishandled finances • Poor housekeeping and home maintenance – unsafe conditions in the home Deciding What Kind of Help Your Loved One Needs While any of these warning signs means you need to pay closer attention to what’s going on with your loved one, some of them may be signs of a problem that’s correctable. They could be caused by drug interactions or side effects. Consumer Reports recommends that any new health problem in the elderly be considered to be drug induced until you can prove that it wasn’t. The elderly tend to take a variety of different medications, and any of them can interact poorly with the others if not monitored properly. Make sure that it’s not a correctable problem before you take drastic measures. If you’ve taken the proper steps and precautions and your loved one’s problem cannot be easily corrected, you need to decide what type of living arrangement is best for them. Can they remain in their own home? If so, do you know what kind of nursing assistance is available to them? Is assisted living or nursing home care a better choice? What specialized care will they need and how often? Do you know what community resources are available to help you manage their care? All of these questions need to be answered and the best course of action is to start gathering information now, before you’re in reactionary mode. Crisis management makes it far too easy to miss resources and care options that a good plan will have laid out. And remember, each caregiving situation is unique. These are just the first steps in helping you manage it all. Without a sound plan in place, all the decisions and options can be overwhelming. And you have to remember to take care of yourself and your immediate family as well. We can’t say enough about how important a good plan is to making a difficult situation better for everyone involved. Regardless of your current circumstances, if you have an elderly family member you could be looking at a crisis of care at a moment’s notice. Proper planning can make you feel much more confident that you’ve made the right decisions. Call us to schedule your Family Wealth Planning Session today. We can explain your care options, assist with Medicaid planning, and help you use all the resources available to you for planning your loved one’s estate in a way that will help take care of the costs for long term care. Our Family Wealth Planning Session is normally $750, but this month we are almost midway, so I’ve made space for the next two people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Are You Ready for the 2011 Tax Changes?

To minimize the hit you’ll take next year, now is the best time to plan

To give you an idea of what’s coming, here’s a brief list of the top 5 changes you’ll see after 2011: 1. Increased Income Taxes for Higher Earners Right now, single people with a taxable income of more than $192,000 and married couples who file jointly and have a combined taxable income of $232,950 or more pay 33 percent and 35 percent in taxes, respectively. These taxes are going to increase to 36 percent. If you earn more than $375,700 (regardless of whether you’re single or a couple filing jointly), your taxes will go up to 39.6 percent. The general consensus is that the Bush tax cuts will probably become permanent for earners with incomes less than $200,000. IIf you are looking at a higher tax rate in 2011, you need to look for ways to take advantage of the lower 2010 taxes now. One possibility is conversion of a traditional IRA to a Roth IRA. But don’t do this without talking to us or a professional first. It needs to be done a certain way or it’s pointless. 2. Higher Taxes on Investment Gains If you’ve been enjoying a 15 percent maximum rate on long-term capital gains and qualified dividends, expect to see that increase. If Congress takes no action, capital gains will be taxed at 20 percent and dividends will be treated as normal income (making rates as high as 39.6 percent a possibility). More than likely, action will be taken to fix that hike to 20 percent, but only for investors in the top two income brackets we talked about earlier. In 2013, that 20 percent rate will rise to 23.8 percent for the highest earners as part of the new excise tax for health care. br> DDon’t sell profitable stocks right now to qualify for a lower tax rate. Just take this opportunity to rebalance your taxable investment portfolio now when the taxes are lower. You should also take a look at your home equity situation. 3. The Estate Tax Cometh Yes, the federal estate tax will be resurrected in 2011 and it will come back at levels we saw in 2000. The top tax rate will be 55 percent on estates worth $1 million to $10 million and 60 percent on estates worth more than $10 million. But no one is really sure how all this will play out. br> RRight now, we can only hope they take action soon. But in the meantime, talk to us about how to structure your estate to take advantage of these exemptions should they happen, and make sure that your estate plan is sound. For example, there are certain kinds of trusts that will essentially disinherit you if your spouse dies before the tax comes back. Call us to make sure you don’t have a potential nightmare on your hands. 4. You Could Be Losing Write-Offs The 2011 budget will reinstate the phase-out of personal exemptions and itemized deductions for earners in the top two tax brackets. Another proposal is on the table that will cap the deduction rate for the top two tax brackets at 28 percent. TThe itemized deduction is still in effect for 2010 so this is a good year to make sizable gifts to your favorite charities. 5. An Alternative Minimum Tax Quick Fix If you’re a middle class taxpayer, you’re being hit every year by the Alternative Minimum Tax (“AMT”) because, although it was designed to make sure that rich taxpayers didn’t get out of paying taxes, it was never indexed for inflation. Every time Congress passes what they call a one year “patch” to spare some taxpayers, they raise the AMT exemption. A one year patch for 2010 is a given, and a permanent fix is possible in 2011 with an automatic annual inflation adjustment. The AMT may be a joke but it’s a very profitable one – it will account for $875 billion between 2009 and 2019, so it’s likely to be a joke we’ll be living with for a very long time. br> If you’re a single person with an adjusted gross income of $46,700 or more in 2009 or a married couple with an adjusted gross income of $70,950 for the same year, you will have to look at the tax tables and the AMT and pay whichever is higher. This is really painful for couples with children in states where you’re also paying high income and property taxes (the deductions for these taxes are limited under the AMT). These are only five of the changes that are coming in 2011. The ins and outs of dealing with the tax code are murky on a good day, but with the coming year and the expiration of old tax breaks, the new health care legislation and the outcome of any pending legislation, you need to make sure that your tax house is in order and you’re not paying more than you need to pay. WWe can help you navigate your way through the changes. Our Family Wealth Planning Session is normally $750, but if you mention this article you can have a complete planning session with me at no charge. Call today and mention this article.

What are you waiting for?

I know you all have excuses or just don’t “feel” like planning now. Your young, healthy, and super busy… Well, I hope you read the top 10 questions to ask yourself this week and then give me a call. Come in and schedule your Family Wealth Planning Session, before the summer slips away. Let me know if you have any specific questions I can answer on my blog or via email. Remember I would love to protect your family and loved ones from creditors and predators alike. Stay cool and I will talk to you soon.

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Top Ten questions when planning for Financial Security By: Robert E. Hammond, CFP®, CLU, ChFC There are many “Top Ten Question” lists published throughout the financial services industry. But this list is quite different from those others. Other lists focus on questions like “how much life insurance do I need?” or “should I buy Term or Permanent life insurance?” or “how much money will I need in retirement?” You won’t find any of those questions here. Because I believe that when you think about how to protect your livelihood from certain risks, or how to build the financial resources needed to live your life as you wish, there’s a whole other set of questions that you should be considering first. My Top Ten Questions and Answers 1 | What is important to me? Before even thinking about the right financial products for your needs, you should clarify what’s truly important to you – the people you care about, the aspirations you have, the things you want to protect, and the support you’d like to give to others. Whether you reflect on this question alone, with family members, or alongside a financial professional – answer this one first, as it will then create the framework around which your financial strategy can be built. 2 | Who depends on me today, and who might depend on me tomorrow? This question should be at the heart of your decision making process, and is one that should be answered well before you consider what financial products you need and in what amount. As a matter of fact, answers to those more traditional questions of “what kind” and “how much” really depends... well, on your dependents! Think carefully about who depends on you today and who might in the future. While spouses and children are commonly thought of as the most obvious dependents, there can be others, for example, parents, in-laws or siblings who, due to age, disability, or other circumstances, may be unable to care for themselves. Even individuals who are single without a family have dependents, namely, themselves, since their well-being depends on their own ability to earn an income. With your list of current and potential dependents in hand, you’ll be better prepared to plot your course toward greater financial security. 3 | Who is providing for my dependents now? Have you considered if there is someone in your family who provides non-financial, but invaluable, support to those you care about? Think of the stay-at-home parent – they may not support their family with earned income, but the support they do provide is just as valuable as any paycheck. And if a stay-at-home parent were unable to provide that support, it would surely be expensive to replace. For this reason, when you develop your financial strategy, it’s important to make sure that you account for all of the people who provide essential financial or non-financial support to your dependents. 4 | What risks have I overlooked or not fully considered? A financial strategy is meant to protect you and your family from a variety of risks. While life insurance is usually a critical component of such strategies, it isn’t the only one. When it comes to planning for financial security, people sometimes concentrate on the risk of premature or accidental death – to the point where they actually overlook other risks to their well-being and livelihood ,e.g., a breadwinner unable to work due to an illness, an aging parent unable to care for themselves, a retiree dealing with rising healthcare costs, a business owner faced with a succession problem. As you work to construct your strategy, be sure to think broadly about the financial risks you face today, or may face in the future. 5 | Are my plans flexible enough? Life is filled with uncertainties, and so no matter how hard one tries, it’s difficult to lock in financial strategies that will account for every possible circumstance you may encounter. It’s these uncertainties that sometimes prevent people from planning in the first place. But there is a solution. To build a strategy that will stand the test of time, in spite of a world filled with uncertainties, it must be flexible. There are numerous ways that financial product solutions can be structured to provide future flexibility and adjust with your evolving needs. When speaking with your financial professional, ask about flexible solutions that can be upgraded or downsized as events in your life unfold. 6 | How do I pick the right financial professional to work with me? Aside from you and your family, there are two key parties who play critical roles in this process, the financial professional who helps you plot a course, and the financial services companies that provide the associated product solutions. When choosing a financial professional, work with someone who is not only competent, but also inspires your trust and confidence. The best financial professionals are good listeners who seek to fully understand your circumstances and financial objectives before ever proposing possible solutions. They should have access to product solutions from multiple companies, should clearly explain how they get paid for their services, and should provide references upon request. Lastly, make sure your financial professional has a solid support network behind them, those affiliated with a strong reputable firm will likely have access to better resources to support your changing needs. When choosing a financial professional, work with someone who inspires your trust and confidence. 7 | How do I pick the right financial services company to work with? Based on your specific needs, your financial professional should present you with financial product solutions from companies that they hold in high regard and with which they have had positive experience. Just as you’ll want to align yourself with a strong, reputable financial professional, you’ll want to do the same with regard to financial services companies. In many cases, these products will be used to address financial needs and objectives that last for decades, if not a lifetime. To help ensure that your financial product providers will be there when you (or your loved ones) need them, work with strong, stable companies that have received high marks from independent ratings agencies such as A.M. Best, Standard & Poor’s, Moody’s and Fitch. 8 | What if I already have a plan? That’s great. However, even the best financial strategies should be revisited and updated regularly and at least once a year. Common life events such as marriage, having children, changing jobs, or even moving can affect your existing approach. So, too, can just having another birthday – particularly if it means you’ve reached a financial milestone, such as the year you can begin collecting Social Security, receiving Medicare benefits, or taking distributions from your retirement accounts. An experienced financial professional should regularly review your strategy with you, to help ensure that it remains aligned with your objectives and appropriate for your circumstances. 9 | What is the downside of putting this all off? Developing a financial strategy is a critically important activity that should not be rushed. There is, however, a fine line between not rushing the process and not focusing on it at all. Oftentimes, people tend to focus on those things that they know well, or that give them instant gratification, while postponing action on things they’re unsure about or from which they don’t see an immediate benefit. By putting this off, we expose ourselves and our families to unnecessary risks and lost opportunities, be it by not safeguarding our lifestyle from unexpected events, by not insuring our livelihood and legacy while in a position of health and strength, or by not capitalizing on even one extra day to build and protect our retirement nest egg. But you need not resign yourself to these outcomes, by being conscious of these pitfalls you can overcome them. and by actively focusing on this process, you can help protect your interests and shape your future. 10 | So what am I waiting for? Hopefully, after reading the preceding nine questions, nothing! You should now know what to consider as you begin developing your financial strategy, as well as how to go about securing the best resources to turn that strategy into a reality. And, perhaps most importantly, you should now understand how to avoid the common pitfalls that lead some to take what is perhaps the greatest risk of all – the risk of doing nothing. Now armed with all of this information, we encourage you to take the next step – by doing additional research on your own or seeking guidance from an experienced financial professional.

Are You Ready for Back to School?

As many of you know, we just got back from an Estate Planning conference in Chicago and then on to see my 89 year old grandma! Whew, it was wonderful to be back in Southern California. Our weather is so nice compared to the rest of the country!

Many of the kids were starting school last week in the Midwest. However, here we don’t start until the end of the month or the first week in September. So there is still time to make sure your emergency contacts that you listed on your school forms match your Temporary Guardians! Did you know that the school CANNOT release custody to your emergency contacts!!

So you need to give me a call so we can name those temporary guardians. This week the ezine is taking a break from the legal stuff and I am focusing on all those with children who start school this year.

While you may be breathing a sigh of relief that your routine is going back to normal and you can stop hassling with keeping your kids busy and out of trouble, your kids are probably feeling a little uneasy about heading back to class.

They’re facing new classes, new kids, new teachers and possibly even a new school. Here are a few tips to make the start of a new school year a little less painful for everyone so read on.

Remember I would love to hear from you on my blog… And if you have a specific topic that you would like for me to discuss, feel free to post it.

Be safe and enjoy the final days of summer vacation.

The First Day Back

• Remind your kids that they’re not the only ones nervous about the first day of school, meeting new people and starting out with a new teacher. Everyone there is in the same boat.

• Help them remember they’ll see friends they haven’t seen all summer and how much fun they’ve had on previous first days of school.

• Let them walk to school or meet at the bus stop with one of their neighborhood friends. It will give them someone to talk to and keep their mind off the fact that they’re a little uneasy.

• If your child is really nervous and you think it will help, drive them to school and pick them up on the first day to allay some of the first day jitters.

Choose the Right Backpack

• Make sure you choose a backpack with wide,
padded shoulder straps and a padded back.

• Don’t overload your child’s backpack. Use all the compartments if you need them to be organized but pack heavier items closer to the middle of the back. The backpack should never weigh more than 20 percent of your child’s body weight.

• Your child should always use both shoulder straps. How many times do you see a child walking with the pack slung over one shoulder? That’s a good way to seriously strain shoulder muscles.

• If your child has an unusual number of books and supplies and can’t really manage the weight of backpack, think about getting a rolling backpack. The only drawbacks to one of these rolling packs are that they can be a problem if your child has to go up and down stairs at school and they don’t always roll well in snow ( not that we have any snow!!!)

Establish Rules for Getting To and From School The Bus

• If your child rides the bus to school, make sure they use a seat belt and don’t move around while on the bus.

• Make sure they always remain in clear view of the bus driver and check to see that no other traffic is coming before they cross the street.

Carpooling

• If your child goes to school by car, make sure they wear a seat belt and that the car has a size appropriate car safety seat or booster seat (if your child is under 4’9” tall).

• Your child should always ride in the rear seat of the car until they are at least 13 years old.

Teen Drivers

• If you have teenagers, remember that many car accidents occur while teen drivers are going to and from school. Remind your teenager to always use their seat belt, limit the number of teen passengers in the car with them, do not allow eating, drinking, cell phone use or texting while they are driving.

Riding Their Bike

• If your child rides a bike to school, always require that they wear a helmet.

• Remind them to always ride on the right, in the same direction as automobile traffic.

• Teach them to honor all traffic lights and stop signs and use appropriate hand signals.

Walking

• If your child walks to school, make sure that their route is safe with trained adult crossing guards at each intersection.

• Use good judgment about your child’s age and maturity level when deciding if they should be allowed to walk to school. Young kids areimpulsive and will dart out into traffic without thinking.

• If you have young kids or they are going to a new school, walk with them for the first week or so to make sure they know how to get there and that the route is indeed safe.

• Make sure they wear a bright colored jacket to make them more visible to drivers.

Getting Back to the Routine of Homework

• Create a place in your home conducive to doing homework and studying. Kids need a permanent spot somewhere in the house that is quiet and gives them some privacy.

• Make sure you schedule enough time in the day for them to actually do their homework. This is a good lesson in time management and you can never start those habits too early.

• Turn the TV off during study time.

• Always supervise Internet use.

• Make sure you’re available to answer questions but don’t do their homework for them. They’ll never learn that way.

• If your child is really struggling with a particular subject, talk to their teacher. You may need to find a tutor to give them extra help.

• Be reasonable in scheduling study time. Sitting for hours on end is bad for the eyes, neck and back and leads to brain fatigue. Remind them to take breaks and stretch.

By incorporating these tips into your back to school routine, it will make the transition from summer fun to hitting the books a little easier for everyone. If you’re consistent with the routine and everyone knows what to expect, there will be less confusion and chaos. And that’s never a bad thing.

More Planning

Well I am feeling the summer heat here in Chicago. It’s a bit humid, try 80% humidity! Whew it is hot. I am in Chicago for a convention of estate planning attorneys. Each year the meeting is held with all the best estate planning attorneys from throughout the country, and of course learning from the best of the best! My husband was able to join me and get continuing education credits as a Certified Financial Planner, so it’s a double education source for us. Yesterday, we had a little time off and took a walk to the Navy Pier and nearly melted in the humidity.

Today we are in full force for an all day session. I will keep you posted of our week and the latest developments in estate planning and especially in tax with the upcoming changes taking place in 2011. If you would like to follow me you can follow on twitter or even my blog. I would love to hear your comments about my articles.

When I return, I will be implementing some new marketing and strategies. So hang tight! In the meantime, give me a call to schedule your appointment before school starts.

In the featured article today, is a discussion explaining the difference between traditional and roth IRA’s.

If you have any questions, give me a call at 888-735-7686 or send me a note via twitter or even my blog! Plenty of room to make comments, would like to hear from you!

Traditional vs. Roth IRAs – Which is the Better Choice?

The talk this year about changes in the availability of Roth IRAs has raised questions from many people eligible for the benefits of these individual retirement accounts. One of the hottest topics of discussion is the advantages of a traditional IRA versus a Roth IRA, and whether or not you have to convert your traditional IRA to make it a “stretch” IRA.First of all, the answer is no, you don’t have to convert your traditional IRA to make it a “stretch” IRA.

A “stretch” IRA is not a particular type of IRA. It’s merely a strategy used to stretch out or prolong the tax advantages of an IRA (most commonly a traditional IRA or a Roth IRA).
Before Congress passed the Taxpayer Relief Act of 1997 and created Roth IRAs, the term “stretch” IRA was used to describe the financial strategy used by a spouse, child or grandchild to draw out distributions (and tax deferrals) when they inherited a pretax traditional IRA. The longer the beneficiary expected to live, the smaller each payout had to be to “stretch” the advantages.

With a traditional IRA the money is taxed as you take it out of the IRA. By stretching out the IRA, you have extra time, and this could be decades, to compound tax-deferred interest. That’s one of the things that makes an IRA a good investment opportunity.

Now that Roth IRAs are available to taxpayers at all income levels (beginning this year), there are more ways to stretch out a Roth IRA as well.

This is what you need to know to take full advantage of the tax savings:

If you have a traditional IRA, you have to start taking withdrawals by April 1st of the year after you turn 70 and a half. To calculate your required minimum distribution, just take the account balance on December 31st of the previous year and divide it by the number of years left in your life expectancy (you can get this number from the Internal Revenue Service’s “Uniform Lifetime” table). You pay taxes on what you take out in each withdrawal.

Now, this is what confuses people with regard to a Roth IRA. In converting to a Roth IRA from a traditional IRA, you move money to the Roth IRA and must pay ordinary income taxes on whatever amount you move. However, you don’t have to take annual minimum payments and all future growth in the IRA is tax free, and so are any future withdrawals. That leaves more money for your heirs to stretch out unless you have to take money out for your own living expenses.

By converting from a traditional to a Roth IRA, you can leave a larger IRA for your heirs and it will be tax-free rather than tax-deferred. That’s why the Roth IRA is such a big deal.
One more thing to think about when considering an IRA is your choice of beneficiary. You have to indicate your choice on the beneficiary designation form when you open the account. Don’t worry. You can amend it later if you need to. Money in your IRA is distributed according to this form, NOT your will.

If you leave the IRA to someone other than your spouse, they have to take required minimum distributions, regardless of the type of IRA. A Roth conversion eliminates this requirement for you, but not for your heirs. These requirements are slightly more lenient for your spouse than for a non-spouse heir.

And one more word of caution. Never name your estate as the beneficiary of your IRA. If you do, under the worst possible combination of circumstances, the money may have to be withdrawn within five years of your death. If you have a traditional IRA, the income tax has to be paid as the money comes out. Always name contingent beneficiaries just in case your first choice dies before you do. Otherwise, the funds go to your estate by default.

If you currently have an IRA and want to know more about converting it or want to make sure that you’ve set it up properly for estate planning purposes, call us to schedule your Family Wealth Planning Session today. We can identify what needs to be done to ensure that you have the right documentation to make your wishes known and followed. Our Family Wealth Planning Session is normally $750, but since you are reviewing the ezine, you can mention this article and have a complete planning session with me at no charge.

Do Advance Directives Really Work?

Summer is moving quickly and soon the kids will be back in school. But there is still time to get your documents in order. Last night was girls’ dinner and we were talking about documents you need to get in place. There were still a couple of my friends who were not sure about these documents. So today I have simple definitions for all the documents you need and what they mean and if they really work. They do! Read the stats…

A Living Will…

A Durable Power of Attorney…

An Advance Health Care Directive…

Any of these documents can help to establish your wishes when it comes to the medical treatment you receive at the end of your life.

But do they really work?
According to one of the largest studies on the effectiveness of documents specifying medical treatments desired, or not desired at the end of life, yes, these documents do work. And more and more Americans are using these tools to make their wishes known.

The results of this study, published in the New England Journal of Medicine, showed that seventy percent (70%) of the people followed in the study lacked the ability to make choices toward the end of their lives because of their mental or physical health. Fortunately, most of them had advance directives and their wishes were not only known but followed. The will of the patient prevailed.

So which documentation is the right choice and what do they all mean? Read below for the definition of all these documents and get them in place for yourself, your parents or grandparents!

Living Will
A Living Will specifies the type of medical treatment you desire if you become incapacitated. If you are permanently unconscious or terminally ill, your Living Will merely tells your family and the medical community whether or not you desire to receive life sustaining treatment. The Living Will does not allow you to appoint someone else to make decisions for you. It just makes your wishes known.

Durable Power of Attorney for Health Care
A Durable Power of Attorney for Health Care allows you to appoint an agent with the legal authority to make decisions for you, relating to health care issues and treatment, should you become unconscious, mentally incompetent or otherwise unable to make those decisions. By making this a “durable” document, you are including language to make sure that this document remains effective or will take effect if you are mentally incompetent. In many states, you can also include language to make your wishes known with regard to “life-sustaining procedures” if you are in a coma or terminally ill. But a word to the wise, even if you include language about your wishes in this regard, make sure you discuss them with the person you designate as your agent.

Advance Health Care Directive
Here I California, the Advance Health Care Directive has replaced the Living Will and Durable Power of Attorney for Health Care as the document for making your wishes known with regard to health care treatment and decision making. This document instructs others (your family and the medical community) about your care if you are unable to make those decisions on your own. It only becomes effective under the specific circumstances you provide for in the document itself. The Advance Health Care Directive allows you to do either or both of the following:

- Appoint a health care agent
- Prepare instructions for health care

This document provides a very clear statement of your wishes about your choice to prolong your life or to withhold or withdraw treatment. You can be as specific as you like about the medical care you want at the end of your life. For example, if you are a vegetarian or vegan, you can specify that you do not want to be fed meat. You can indicate whether or not you want hydration and nutrition to be withdrawn and that it goes beyond whether or not you can breathe on your own.

The Advance Health Care Directive allows you to do everything in one document that a Living Will or Durable Power of Attorney for Health Care allow you to do separately. If you already have a Living Will or Durable Power of Attorney for Health Care, don’t worry. Both of these documents are still valid until you take steps to replace them with an Advance Health Care Directive.

If you have any of these documents in your current estate plan, make sure that copies are provided to your appropriate family members, your primary care physician and/or anyone you have named as an agent in these particular documents.

If you don’t currently have these documents in your estate plan and would like an expert opinion on which is appropriate for your particular circumstances, call us to schedule your Family Wealth Planning Session today. We can identify what needs to be done to ensure that you have the right documentation to make your wishes known and followed.

Also, as part of our estate planning process, we will interview you about your specific wishes and what you want your family to know. We provide you with a copy of the interview so you can pass on the information you want your family to remember. We understand that it’s not just about the paper you leave behind, but the voice you leave behind. Our Family Wealth Planning Session is normally $750, but this month I’ve made space for the two more people who mention this article to have a complete planning session with me at no charge. Call today and mention this article.

Why Plan? There are no estate taxes this year?

Hope you are having a great week. My husband and I had a wonderful time at the lake last week with our dear friends. It was hot but very relaxing. Before we start planning for and shopping for the school year, I thought we could dedicate this week to updating those items that you have put off this summer.

Some of you may think, what is the big deal, there are no estate taxes this year! But wait next year the tax rate is set to rise to 55%. Read the article below about the owner of the Yankees who recently died. But hopefully, no one is planning on dying this year.

Just because you don’t have estate tax doesn’t mean you avoid probate and probate costs money. You don’t want to give away money do you? What about your minors?

Do you have Minors named as beneficiaries for any of your accounts? If so that is the quickest way to end up in Probate. In California, the court must supervise the distribution of money left to kids under 18! Then it is a slow and potentially costly process, usually approximately 16-18 months. Not to mention the costs being approximately 5% of you entire estate. Oooh and one more thing it’s a public process so all those creditors and predators out there will know when you child turns 18 and bingo he or she will have X number of dollars given to them outright!

So you have the next 30 days to change those beneficiaries before all the craziness starts in September. Of course if you need assistance and guidance schedule your Free Family Wealth Planning session in the month of August and I will have a special gift for you!

Forbes recently estimated the Yankees owner’s net worth at $1.1 billion, largely from the YES network

The New York Yankees, which he acquired in 1973 for $10 million, are now worth $1.6 billion but are 95% leveraged due to debt from the new Yankee Stadium, according to Forbes.

Because Steinbrenner died in a year when there is no federal estate tax, he potentially saved his heirs a 55% estate tax on his assets — or a tax bill of about $600 million. The 55% tax takes effect on January 1, 2011. If Steinbrenner had died in 2009 when the estate tax rate was 45%, his estate tax bill might have been nearer $500 million. Because the wealthy often do elaborate planning, putting assets into trusts taxed separately from the estate or into foundations that are tax-exempt, it is unclear how large his estate will be. Estate taxes may also be postponed on assets left to a spouse in years when there is an estate tax.

Steinbrenner is survived by his wife, Joan, two sons, and two daughters, plus two sisters and several grandchildren.

There is no estate tax this year due to changes made by Congress in 2001. Those changes eased the estate tax over several years and culminated with its repeal this year, followed by a return to high tax levels in 2011. Experts say few ever expected the tax’s repeal, and its 2011 reinstatement, would actually take effect. Instead they believed lawmakers would smooth out the tax rates at some point between 2002 and the end of 2009.

Congress never got around to it, and the tax lapsed this year. Many still hope lawmakers will fix this year’s law, which actually raises taxes on heirs of the merely affluent (with assets between $1.3 and $4 million). But they still haven’t acted and have little time to do so.

Because of the huge chasm separating 2010’s zero tax rate from 2011’s 55% rate, some fear that Congress has provided the wealthy with an incentive for dying–or their relatives with an incentive for making sure they die–before the clock strikes midnight on Dec. 31).

This year’s lapse potentially provides huge windfalls for the very wealthy, like Steinbrenner. Other billionaires who have died this year include Houston energy magnate Dan Daniels and real estate developer Walter Shorenstein.

So you have the next 30 days to call and get your financial and legal life in order.

When It Comes To A Supplemental Needs Trust, Out of Sight Should Never Be Out of Mind

know everyone is busy doing something this summer! My husband and I are going to Lake Mead with a group of long time friends (college sorority sisters and their families). While we are not the “river rats” we are looking forward to spending time with some special friends and enjoying the water activities.
But before taking off, I want to make sure you are not neglecting your family members that may need some special attention. Even if you think you don’t need any assistance now, people can become disable for a variety of reasons.

If you have already done some planning and have been a responsible planner for your family’s future, especially your child with special needs you still need to read the article below. And of course if you have no special needs, you STILL need to do your own planning.

Be sure to check out my blog where you can provide comments on any of the articles I've published thus far.

You’ve met with an attorney, set up a Supplemental or Special Needs Trust and you can breathe a sigh of relief

You’ve met with an attorney, set up a Supplemental or Special Needs Trust and you can breathe a sigh of relief. Your work is done, right?

Wrong.

Funding and forgetting about a Trust can be as detrimental as not forming one at all. And having one that isn’t properly written can render it completely useless.

Supplemental Needs Trusts (sometimes called Special Needs Trusts) allow people with mental or physical disabilities, or even people with chronic or acquired illnesses, to have unlimited assets held in Trust for their benefit. If you have a child, grandchild, or even a spouse with a disability, a Supplemental Needs Trust can ensure that they have the funds they need to maintain their lifestyle after you’re gone.

And if your Supplemental Needs Trust is drafted properly those assets don’t count as financial resources in determining your loved one’s eligibility for government benefits. The Trust provides for supplemental care over and above what government programs provide.

Even if your family has significant resources to care for a disabled family member, you should ensure that your Supplemental Needs Trust is written to specifically address the needs of that family member and their future lifestyle. Monies can be placed in the Trust and used for their benefit without being counted as a source of income. This allows the family member to qualify for benefits and programs they might not otherwise qualify for. Why sacrifice services (and the funds needed to pay for those services) if you don’t have to?

If you have a family member with a disability that could require significant care as they age, a Supplemental Needs Trust can give you peace of mind in knowing that they will have the resources they need when you are no longer there to provide them. But a word of caution – these are complex documents and require very specific language in order to be effective. Your Trust must address the following:

1. The Specific Intent of the Trust
You cannot assume that because a document is called a Supplemental Needs Trust that it addresses what you intended to address. The Trust must specifically state that it is intended to provide “supplemental and extra” care over and above what government programs provide. It must state that it is NOT intended to be a basic support Trust and the funds cannot be used for basic support

2. Repayment Obligations
If the Trust is funded by parents, other third party sources or a personal injury Settlement, it will not be required to pay back Medicaid for expenses covered by the program. But if the Trust is funded by assets belonging to the disabled individual (such as earnings from a job, savings, certain Social Security back payments, personal injury recoveries not ordered into the Trust by the Court), the Trust may have to repay Medicaid for expenditures.
A properly drafted Trust must address paybacks to Medicaid or other governmental sources (both state and federal). Federal law requires that repayment language be included even if repayment is not required.
Make sure you discuss repayment obligations and proper funding with your attorney.

3. Changes to the Early Termination Provision Payback Requirements
Some Supplemental Needs Trusts contain language that allows termination of the Trust prior to the death of the beneficiary if, for example, there are no longer enough funds in the Trust to justify its continued administration or the beneficiary is no longer disabled. Effective October 1, 2010, there are significant changes in the Social Security Operations Manual System that will affect Trusts established on or after January 1, 2000. These changes could seriously impact the repayment provisions in your Supplemental Needs Trust if it contains early termination provisions.

Do you know how your Supplemental Needs Trust treats these issues? If improperly written or not modified to address changes in the Social Security Operations Manual or changes to other requirements in benefit programs, a Supplemental Needs Trust can very easily be raided by governmental benefit sources. It could even be declared invalid if not properly written. Not ensuring that your Trust documents properly address any applicable changes can lead to a loss of benefits, loss of savings or other legal and financial hardships that can easily be avoided.

If you have a family member that you wish to benefit with a Supplemental Needs Trust or you would like an expert opinion on the proper language in your Trust documents, call us to schedule your Family Wealth Planning Session today. We can identify what needs to be done to ensure that you have the appropriate language in your Trust documents and you are in compliance with the proper regulations to protect your loved one. Our Family Wealth Planning Session is normally $750, but this month if you call and mention this article you can have a complete planning session with me at no charge. Call today and mention this article.

It’s summer time!

We celebrated my husband’s birthday yesterday at the beach! Finally some warm weather. Hope you are keeping busy this summer. Now is the time to get to our beautiful beaches.

But you need to get your legal life in order. Did you know that 69% of families have not named guardians or have named them incorrectly for their minor children? Do you want a Probate Judge to decide who would raise your children should something happen to you!

This week’s featured article is about grandchildren! So all you young parents out there if you have taken steps to protect your children you should pass this along to your Parents, so they can protect their grandchildren. I know this is tough conversation to have! I can assist you with this conversation.

Schedule your appointment with me and I will also meet with your parents and have that sticky conversation with them. So if you have already done your planning, I will extend this offer to your parents. Get them in for their free Family Wealth Planning Session and protect the grandchildren.

What You Don’t Know About The Generation Skipping Tax Could Cost Your Grandchildren Their Inheritance

Virtually everyone knows about the estate tax (unless they’ve been living under a rock for the last ten or twelve years). But if you’re planning to leave property directly to your grandchildren or even great grandchildren, there’s another tax you need to plan for now.

A tax that can be just as costly as the estate tax…

The Generation Skipping Transfer Tax.

The Generation Skipping Transfer Tax (GST) is a tax on property passed directly from a grandparent to a grandchild or great grandchild by way of a will or a trust. The GST even applies to property passed on to individuals not related to you if they are more than 37.5 years younger. While currently repealed, like the estate tax, the GST will be resurrected in 2011.

Congress designed the GST to close a loophole in the estate tax. Parents were leaving their estates to their children and the children paid estate tax on the inheritance. Then, those children would subsequently pass their estates on to the grandchildren, incurring estate taxes a second time. Eventually someone figured out that by leaving the estates to the grandchildren directly, they could avoid paying one set of estate taxes. Congress passed the GST to tax transfers to related individuals more than one generation away and to unrelated individuals more than 37.5 years younger to eliminate the ability to skip paying taxes on the inheritance of one generation.

How much will the GST cost your heirs? The GST has basically mirrored the estate tax. In 2009, the estate tax rate was 45% and the estate value exempt from the tax was $3.5 million. The GST and the estate tax expired in 2010 but will reappear in 2011, unless Congress takes action to extend the expiration. If they don’t act, the GST tax exemption amount in 2011 will be $1 million and the tax rate will be 55%. Both are significant changes and could cost your heirs a substantial portion of their inheritance.

If you don’t have an estate plan or the estate plan you have was prepared based on the old exemptions and tax rates, now is the time to plan for major changes in 2011. Call us to schedule your Family Wealth Planning Session today so we can identify what needs to be done to protect more of your assets for your children and grandchildren. Our Family Wealth Planning Session is normally $750, but if you mention this article I will waive the price for both you and your parents. Call today and mention this article.

Welcome Back from the Long Weekend

The featured article is about Medicaid planning. I know most of you are way too young, but you have parents and grandparents that probably need to do some planning or at the very least have their plan updated and reviewed!

I am sure everyone has heard a family member say “I hope I never end up in a nursing home?”

How many times have you said it yourself?

The loss of personal freedom as well as the potentially devastating financial cost can be a scary proposition. Depending on where you live and the level of care you need, nursing homes can cost between $35,000 and $150,000 per year.

Long-term nursing care can be devastating to a family’s financial life for generations.

Pro-active planning, in advance if possible, can help protect what you’ve worked so hard for so you can leave it all to your family instead.

And little bit of planning now can definitely save money and heart ache later on. Here are just a few of the items we will review in our session together.

Get Your Financial House in Order and Keep it that Way!

• Ensure Your Kids (& Spouse) Are Prepared for Life Without You!
• Discover How To Legally Avoid ALL Estate Taxes & Keep Your Family
out of Court!
• Learn the Secret to Protecting Your Kid's Inheritance From Lawsuits and
Divorce!
• Discover How to Leave Your Loved Ones a Gift Far Greater Than All the
Money in the World!

And remember… The Planning Session is absolutely FREE and there is NO OBLIGATION and NO PRESSURE

Looking forward to serving you soon.

Summertime and the Living is Easy – If You’ve Taken the Right Steps to Protect Your Family

ummertime in the U.S.A. Happy 4th of JULY to all Hope you have a safe and fun 4th. But before you hit the road, please read and make sure your family is protected.

Kids live for it…

Parents spend much of the year trying to plan for it…

It’s the perfect time of year to get out of our comfort zone and break free from the safe routine of daily life. Yet along with pushing those boundaries and living the adventure comes the increased possibility of accident or injury - those unexpected events we spend the least amount of time planning for and years recovering from when they happen.

While we can’t control everything, there are steps we can take as families to handle whatever comes our way and minimize the damage as much as possible.

First, if your children are traveling without you, make sure that at least one of the adults chaperoning them has an advanced medical directive in their possession that gives them permission to make life saving medical decisions for your child, if you’re not there. When the worst happens, every second counts and having this documentation at the ready can literally make the difference between life and death.

Second, make sure that along with passports, identification and contact information, each person in your family has documentation listing all shot records, allergies, any medications they take and any other important medical history that could make a difference in how a medical emergency is handled. This goes for adults AND children. Adults on vacation are not exempt from injury any more than children.

Third, each adult in the family needs a Durable Power of Attorney for legal and financial issues and an Advanced Health Care Directive for health care issues. Each adult should also carry the name and address of the attorney who prepared both of these documents in their wallet. Make sure your attorney retains a copy of these documents in your file and they can be retrieved quickly in the event of an emergency.

If you’re thinking this sounds like overkill, just imagine what would happen if you were on vacation, hundreds if not thousands of miles away from home, and you were involved in a serious car accident. Who would take over making decisions for you? Paying bills that need to be paid, keeping your family finances in order? It happens all the time. This one document can make the difference between going back home to a normal life or returning to a financial disaster that could take years to fix.

No one likes to think of the worst when planning their summer vacation but it’s amazing how much peace of mind taking these three little steps will buy you. Make them as much a part of your summer plans as airline tickets and hotel reservations and you can leave home with little more to worry about than getting to the airport on time.

Drafting a Durable Power of Attorney and Advance Health Care Directive should be taken care of as part of your comprehensive estate plan and, of course, I recommend you work with a lawyer to take care that. While you’re at it, make sure you have a Will, Trust (if you own any assets that would go through probate) and a Kids Protection Plan prepared as well. If you have already had these documents prepared, fantastic – this would be a great time of year to make sure they are all up to date.

If you haven’t had these important documents prepared for your family (or you have and they’re out of date), call us to schedule your Family Wealth Planning Session today so we can identify what would happen for your family if anything were to happen to you.


Have fun hope to see you soon. OOhh and short article about keep food safe. My mom and husband had an incident at a couple of different fast foods or BBQ’s we are not too sure. But just in case we have read up on how to keep food safe. Especially with all the cook outs going on.

Summer Food Safety – Watch Out!

Keep your children away from grills or outdoor cooking fires at all times. Barbecue tools should be off limits, too. Summer wouldn't be complete without picnics and barbecues. But be careful: Federal government studies show that cases of food-borne illness rise in summer for two reasons. First, bacteria grow faster in the warm summer months, especially when humidity is high. Second, more people are cooking and eating outdoors where refrigerators and sinks aren't available.

Most adults have healthy immune systems that protect them from getting sick from contaminated food. Young children are more vulnerable to food-borne bacteria, because of their immature immune systems.

There are some simple steps to keep your food safe in summer. The most important safety measure is washing your hands with hot, soapy water before handling food and after using the bathroom, changing diapers, or handling pets. If you're eating away from home, use disposable wipes or antibacterial gels and dry your hands with paper towels.

Gadget Guide
“Instant read” thermometers are designed to be inserted in fast-cooking foods such as hamburgers to test for doneness. These are not the same as meat and poultry thermometers that stay in the food throughout the cooking process.
Prevent Cross-Contamination
Cross-contamination during preparation, grilling, and serving food is another prime cause of food-borne illness.

When you pack your cooler, wrap raw meats or poultry securely so the juices won't come in contact with other foods. Wash plates, utensils, and cutting boards that held raw meat or fish before using them again.

Don't Undercook
Foods should be heated long enough and at a high enough temperature to kill harmful bacteria. Meat and poultry cooked on a grill often brown fast on the outside but may be undercooked inside. Check them with a thermometer.

Cook meat and poultry completely at the picnic site. Partial cooking of foods ahead of time allows bacteria to survive and multiply to the point that subsequent cooking can't destroy them.

Here are the U.S. Department of Agriculture's (USDA) recommended temperatures for some meats, expressed in degrees Fahrenheit:

Cook hamburger and other ground meats to an internal temperature of 160°F and ground poultry to 165°F. You cannot determine if the meat is safe simply by the color.
Cook steaks and roasts that have been tenderized, boned, rolled, etc., to 160°F for well-done. Whole steaks and roasts may be cooked to 145°F for medium rare.
Whole poultry should be cooked to 180°F. Breast meat should be cooked to 170°F.

Safety Savvy
For additional food safety information, call the toll-free USDA Meat and Poultry Hotline at 800-535-4555. It is staffed by home economists, registered dietitians, and food technologists weekdays year round from 10 A.M. to 4 P.M. Eastern time. An extensive selection of food safety recordings can be heard 24 hours a day using a touch-tone phone. Or visit the Web site www.USDA.gov for more information.
Refrigerate Promptly
Luncheon meats, cooked meats, chicken, fish, potato or pasta salads, and other perishables should be kept in an insulated cooler with several inches of ice or ice packs. Replenish the ice when it starts to melt. Don't put food out until your family is ready to eat it.

Try to pack beverages in one cooler and perishable foods in another cooler, because the beverage cooler probably will be opened frequently. If possible, keep the cooler on the seat of the car instead of in the hot trunk, and put it in the shade when you unpack the car.

Handling Leftovers
Stow leftovers back in the cooler as soon as you finish eating. Food left out of refrigeration for more than two hours may not be safe to eat. At 90°F or above, food left out over one hour can spoil. If in doubt, throw it out!

Financial Summer

The stats are in, according to Mass Mutual, and a quarter (25%) of the women surveyed wished they were more confident in making financial decisions and 37% said they can make financial decisions with little guidance! So where do you start? Well, of course I think the summer is a perfect time to get your legal and financial house in order. I remind you every week to think about what would happen to your children if something happened to you and your partner? Before you click out of this email, here are a couple of recommendations:

1. Make sure you have medical authority from parents of any children traveling with you this summer.

2. Make sure your Health Care Directives are updated.

3. Of course make sure you have Temporary guardians and Permanent guardians named separate from your Will.

If you are looking to get started with your finances, a good summer read, is a book that many recommend by David Bach, Smart Women Finish Rich. It’s for the financial beginner and not a woman with financial savvy. But it has a well thought out system of gaining and keeping control of your financial self-sufficiency. Bach has filled this book with definitions, resources, quizzes, systems, exercises and tables. It is impressive and most give it a must read if you’re serious about becoming more financially organized. The book is a fitting tribute to his grandmother who helped him buy his first share of stock at the age of seven. How many of us are fortunate enough to have such a role model so early in life?

David Bach addresses both the heart and the head in Smart Women Finish Rich. He used the lessons he learned from his grandmother, and his mother, as inspiration. After growing up with two such powerful role models, he was surprised by the number of financially uninformed women. Many of the women who came to him for financial advice, had no clue about building financial security.

Mass Mutual Research

Recognizing a need for new insights into the changing definition and dynamics of families in this country, Massachusetts Mutual Life Insurance Company (MassMutual) has introduced the "State of the American Family" program, consisting of a series of research studies conducted over the months and years ahead.

This multiyear initiative will bring a deeper understanding to the different forms families take, how family members interact on matters financial and otherwise, how factors like ethnicity and income affect family dynamics, and trends that will shape families in the coming decade.

The initial research study from this new series, Families, Financial Attitudes & Planning, conducted by Forbes Consulting group for MassMutual, focuses on women and finance.

"This new initiative is an important step forward in understanding family dynamics to better provide America's adults and children with the information and guidance to make responsible financial decisions," said Kelley Gay, an assistant vice president, MassMutual's U.S. Insurance Group.

The first study released under this platform, about women, their families and finance, shows the importance and value of this initiative. "The results of our study show that women, who according to the Boston Consulting Group now control $12 trillion in global consumer spending, recognize the need to get their finances in good order -- whether professionals, executives, mom-preneurs, household CEOs or caregivers," said Gay. "A clear path to the future is often paved with sound financial guidance and action-planning," she continued.

The study shows that one quarter of the women surveyed said they wished they were more in control of their finances, and 34 percent wished they were more confident in making financial decisions.

Thirty-four percent of the women surveyed were overwhelmed by all the information available regarding investments and finances, and only 37 percent said they can make financial decisions with a little guidance.
SStay tuned for more information and if you need further information from Mass Mutual I have a contact for you.

Here Comes the Long Weekend!

It’s Memorial Day weekend and the unofficial kick off of all the summer festivities. Parades and other special events celebrate the holiday. The holiday, is to honor and pay tribute to those who have fallen in war to protect our wonderful country. As you celebrate the long weekend, may you reflect on the wonderful men and women who have served and continue to serve our great Nation. I found an interesting article on the history of Memorial Day I hope you take the time to read it and share an interesting fact with you family.

My husband and I will be out in the desert enjoying the sunshine with our family and friends.

Decoration Day

Memorial Day was originally known as Decoration Day because it was a time set aside to honor the nation's Civil War dead by decorating their graves. It was first widely observed on May 30, 1868, to commemorate the sacrifices of Civil War soldiers, by proclamation of General John A. Logan of the Grand Army of the Republic, an organization of former sailors and soldiers. On May 5, 1868, Logan declared in General Order No. 11 that:

The 30th of May, 1868, is designated for the purpose of strewing with flowers, or otherwise decorating the graves of comrades who died in defense of their country during the late rebellion, and whose bodies now lie in almost every city, village, and hamlet churchyard in the land. In this observance no form of ceremony is prescribed, but posts and comrades will in their own way arrange such fitting services and testimonials of respect as circumstances may permit.

During the first celebration of Decoration Day, General James Garfield made a speech at Arlington National Cemetery, after which 5,000 participants helped to decorate the graves of the more than 20,000 Union and Confederate soldiers buried in the cemetery.

This 1868 celebration was inspired by local observances of the day in several towns throughout America that had taken place in the three years since the Civil War. In fact, several Northern and Southern cities claim to be the birthplace of Memorial Day, including Columbus, Miss.; Macon, Ga.; Richmond, Va.; Boalsburg, Pa.; and Carbondale, Ill.

In 1966, the federal government, under the direction of President Lyndon Johnson, declared Waterloo, N.Y., the official birthplace of Memorial Day. They chose Waterloo—which had first celebrated the day on May 5, 1866—because the town had made Memorial Day an annual, community-wide event during which businesses closed and residents decorated the graves of soldiers with flowers and flags.

By the late 1800s, many communities across the country had begun to celebrate Memorial Day and, after World War I, observances also began to honor those who had died in all of America's wars. In 1971, Congress declared Memorial Day a national holiday to be celebrated the last Monday in May. (Veterans Day, a day set aside to honor all veterans, living and dead, is celebrated each year on November 11.)

Today, Memorial Day is celebrated at Arlington National Cemetery with a ceremony in which a small American flag is placed on each grave. Also, it is customary for the president or vice-president to give a speech honoring the contributions of the dead and lay a wreath at the Tomb of the Unknown Soldier. About 5,000 people attend the ceremony annually.

Several Southern states continue to set aside a special day for honoring the Confederate dead, which is usually called Confederate Memorial Day.

5 things to know about naming beneficiaries

Want your intended heirs to have to chase after their money? Probably NOT. So better make sure they're listed on your financial accounts and make sure your trust is funded.

Is your estate plan in place, Or is it NOT? Have you just not gotten around to updating your beneficiaries on your financial accounts? It's one thing to get your legal house in order by hiring a Personal Family Lawyer, such as myself to draft all your legal documents and be your personal trusted adviser. I will ensure that your assets are held properly. But, I caution you, if you are using one of those “DIY” or Do-It Yourself online Will or Trust service…even lawyers don’t always make sure you get your Trust funded or transfer your assets into your trust!

And remember not all assets should be transferred into your trust. For tax purposes it could be better to keep them out of your trust, if you have a spouse. Such examples could be your IRAs, or 401 (k)s. Life changes and your affairs need to stay up to date! I can tell that I meet with many folks who didn’t know their estate planning documents needed updated! That’s why you need a trusted advisor for your lifetime. Give me a call and we can review your assets…

You think your estate is in place, or is it?

…Not if you have out-of-date beneficiaries on your financial accounts. There are many situations where a divorce has been settled years prior to a death, but the beneficiaries were never changed. Children are fighting over mom or dad's IRA's or 401(k)s turns into a very messy situation! Here are some things you can do to avoid this.

1. Your will has no jurisdiction. Accounts with beneficiary designations - such as IRAs, 401(k)s, insurance policies and annuities - aren't governed by your will. So even if you wrote an ex out of your will or trust eons ago, he or she would still get, say, your IRA if you never changed its beneficiary. Note to Self: Review choices periodically, especially after major life events, such as children, divorce death, change of job. Don't leave beneficiary forms blank. Accounts will go to probate court for distribution, and the judge will decide who gets what.

2. You can - and should - name a runner-up. Just as the Miss America judges pick a No. 2 just in case - remember Vanessa Williams? - so should you- pick a contingent beneficiary for your accounts. Otherwise, if your primary beneficiary dies before you, the account goes to probate (A BAD and Expensive Event). Naming a No. 2 also gives the primary the option to execute a qualified disclaimer, which passes the inheritance to the contingent without gift taxes.

3. Retirement accounts have quirky inheritance rules. With IRAs and 401(k)s, there are advantages to naming a spouse over a child. Your spouse can roll over such accounts into his or her name, thus postponing distributions and taxes until age 70½. But if your kid inherits, she must start taking distributions - and paying tax on them - the year after your death, (Regardless of estate taxes, retirement account recipients pay income taxes on payouts.) Beyond that, planning is necessary pending your family situation.

4. Do you have a Minor named? That is a quick ticket to probate. In California, the court must supervise the distribution of money left to kids under 18 - a slow and potentially costly process, usually approximately 16-18 months in CA. Plus the costs are approximately 5% of your entire estate. And of course, it's a public process! Creditors and Predators’ will be after your kids’ inheritance during this process!

5. Changing beneficiaries is easier than changing the “bag in your trash can”, well for most trash cans at least… Many financial firms make beneficiary forms available online. You can also call to request them. (Or if this task will end up last on your long to-do list, give me, the Soto Law Group, permission to contact the institutions for you and we can change them). Yes, I know it is time consuming but a necessity that needs to be done NOW.