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.