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

Well its March can you believe it! The big shamrock celebration is right around the corner as is March madness. This past week I had several inquiries about special need trusts how to set them up and what you can do. I touched upon this a while ago and thought I would send you some more information. You’ve been a responsible planner for your family’s future, especially your child with special needs. 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. ___________________________________________________________ Where is DeDe? This past weekend she spoke at a wonderful Parent’s group in Seal Beach at Grace Community Church. Next Tuesday March 8th she will speaking to the MOPS of First Christian Church in Huntington Beach. If you would like for her to come and conduct a Kids Protection Workshop for your group, give her a call, no group is too small. She enjoys educating all.

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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 allow 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. Call today and mention this article.

Saving Your Heirs From Themselves

I hope your February is going well. Lots of you have had days off and are enjoying some of the cold weather activities such as hitting the slopes, or sledding all fun stuff! But I do hope you get your plan in place and protect your loved ones from the “what if” Like I said last week, I went and purchased some more gift certificates for Vintage Steak house in San Juan Capistrano, the old vintage pull carts, I only have a couple left so give me a call. Its a wonderful restaurant that would make for a great date night. All you have to do is make your appointment, mention the romantic package and I will have a certificate waiting for you! So I have had a few inquiries this past week about protecting those kids that spend too much money… okay, there are some things you can do. You’ve worked hard for your money… You’ve made some good investments and lived well within your means… You want to leave as much as possible to your heirs but… That grandson has a serious snowboarding addiction… Or maybe your daughter is just crazy about her new husband and the guy hasn’t had a steady job since he mowed yards in eighth grade… You don’t want to disinherit them but how do you save them from themselves and keep them squandering your hard-earned wealth? One option is what’s known as a spendthrift trust.

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What is a Spendthrift Trust? The quick answer is that a spendthrift trust is a trust account overseen by a trustee, typically your banker, that controls the assets you leave behind when you die. The beneficiary of the trust can’t spend the money before they receive distributions from the trust and the trustee has the authority to determine what funds are necessary according to what you’ve stipulated in your trust documents. Protection from Creditors A spendthrift trust may be a really good option to protect your assets from creditors, especially if you know your heirs are less than fiscally responsible. As an example, let’s say you left $10 million to your daughter and the trust account generated $400,000 per year in income that you allowed to be paid to her. She couldn’t use the trust assets as collateral for anything else. If she goes out and buys a $20 million yacht (which she obviously couldn’t afford), the creditors can’t collect the assets of the trust to pay the debt. All they can collect is the $400,000 distribution your daughter receives from the trust. That keeps your assets in place to generate interest for years to come. Important Things to Note While a spendthrift trust protects the trust assets from most creditors, as with most legal issues, there are exceptions. Say, for example, your beneficiary owes child support or alimony. Most jurisdictions will allow access to the trust’s assets in order to pay those obligations. And there are some states with stringent restrictions about the establishment of spendthrift trusts. For example, you can’t set up a spendthrift trust for your own benefit. And your beneficiary can’t be given power to control or dispose of trust property without invalidating the spendthrift provision of the trust itself. Statutes govern the establishment of spendthrift trusts. Always get legal advice before establishing any type of trust but especially in the case of a spendthrift trust to ensure that the requirements of your state are met. We can help you with the establishment of a spendthrift trust or any type of trust you want to provide for your loved ones after you’re gone. Call us to schedule your Family Wealth Planning Session today. 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 and the fact that you are interested in the romance package!!

The Kindness of Being Prepared

Hope your valentine’s was a good one!! February is such a fun month, because you can keep the love of family and friends on your mind and continue to celebrate the entire month. In fact I had such an overwhelming response from my Date Night, that I went ahead an purchased more gift certificates for those who have not called. So I am extending the Valentine Date night to beyond the 10 peeps that already called. If you didn’t get my Date Night Valentine, simply click HEREfor details.

Well I am continuing the conversation regarding the aging process and how you can assist those elderly family members because it can be so overwhelming. Nursing homes… Assisted living centers… At-home assistance… These are all options for medical care when we age and can no longer care for ourselves alone. But there is one more approach for medical care for those facing a terminal illness - hospice care. More than just a place to receive medical care for terminally ill patients, hospice really describes an approach to medical care for patients nearing the end of life. The prospect of facing a terminal illness can be truly daunting for both you and your family members. Planning ahead for hospice care and making your wishes known can be one of the kindest things you can do for your family. Blessings, Click HERE to view my blog

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What Exactly Is Hospice Care? Many people think of hospice as a place to go for care rather than a system of care. Hospice is more a shift in treatment to keep the patient comfortable rather than trying to cure their terminal illness. Hospice care can be administered at assisted living centers, in nursing homes, hospice centers, etc., but 80% to 90% of hospice services are provided in the patient’s home. The technology is now available to allow health care professionals to treat the patient’s symptoms in the comfort of their own home. Some of the services provided by hospice include: • Pain and symptom management • Drugs, medical supplies and equipment • Training for caregivers • Arrangements for respite care when the family caregiver needs to be away • Help with day-to-day chores and activities • Counsel with end of life decisions • Speech, physical and occupational therapy And after the patient has died, hospice often offers counseling services to the loved ones left behind. If I Choose Hospice Care, What Do I Need to Do? If you elect to take advantage of hospice services, the kindest thing you can do for your family is to advise them of the decision. Then you need to make sure your estate planning documents are in order so that if you reach a point where you can no longer make decisions, your affairs are arranged so that your family knows exactly what to do. Some of the documents you need to have in place are: • Durable Power of Attorney for Financial Matters to give someone you trust legal authority to make decisions for you if you are no longer able to make them yourself. It also allows them to tend to your financial affairs, such as paying bills, paying taxes, handling real estate transactions, if you are no longer able to do so. If you fail to give someone authority to handle these matters and your health takes a sudden turn for the worse, you can lose access to valuable assets. • Advance Health Care Directive allows someone to make medical decisions for you if you are no longer able to do so. You really need to have this document in place. Just because you have been married for 60 years, your spouse does not automatically have this decision making power. The law assumes that if you did not give this power to them, you did not want them to have it. Failing to appoint someone to make medical decisions and not telling them exactly what those decisions should be can cause your loved ones a great deal of undue stress, conflict and turmoil. • Current Wills and Trusts are vital to ensuring that your estate is handled exactly as you would like. Make sure your will and any trust documents are up to date before you reach a point where you are no longer able to make decisions or make your wishes known. For example, what would happen if you were in hospice and your healthy spouse suddenly died. If you have a will that leaves everything to your spouse in the event of your death, you could have a problem and not be physically able to make the correction. Make sure your will is current as soon as you elect hospice care. • Make sure your property is titled correctly. Review your property titles with a qualified estate planning attorney. If the titles to your real estate holdings are not done properly, your loved ones could spend months going through a costly probate process. It can also affect whether or not you can go into a nursing home if you can no longer be treated at home. • Long Term Care is a subject you will have to research to determine what is available in your state. You may be eligible for benefits from federal or state programs. You will need to talk to a qualified estate planning attorney to see what’s available in your area and start the application process. Don’t try to go this alone. Enlist the aid of someone familiar with the process and you’ll save time and aggravation. Hospice care can make the prospect of facing a terminal illness easier for everyone involved, especially if you plan well ahead of time. If you think you might want to take advantage of hospice care if or when the time comes, talk to your estate planning attorney and make sure you’ve laid the proper ground work. Planning ahead so that your loved ones aren’t faced with these choices when they’re already dealing with your illness can be one of the kindest things you can do for them. Call us to schedule your Family Wealth Planning Session today. 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.

Questions to Ask About Nursing Home Care

Americans are living longer than ever, and with that increased longevity comes some tough questions. My family has been dealing with some of these tough questions, for the past couple of months, especially my mom! As I mentioned in December my grandmother celebrated her 90th birthday! With a very sharp mind, she still lives at home with her special needs daughter. Well, she fell and fractured her ankle and was in the hospital and a rehabilitation facility for almost 2 months. Fortunately, she is back in her home, but the past couple of months have been tough with lots of decisions that have had to be made, research for the unknown, exploration of all options. She has had angels as friends that have helped out – My parents drove ½ way across the country to pick up and take care of my Aunt, who cannot be left alone. So she has been staying with my parents, enjoying the Sunshine of Palm Desert. So the short term has been taken care of but we have been faced with lots of long term issues some are still pending. Right now, my parents have decided that the best place for her is in her own home. But we have had to make lots of inquires to provide her with the best care possible, because she needs care 24/ 7. So, I know, making the decision to place a loved one in a nursing home can be one of the hardest decisions you’ll ever make. And they definitely do not want to go and leave their home. The more quickly you have to make that decision, the more room there will be for making a bad decision. The best thing you can do is plan ahead. Anticipate that, at some point, your loved one will need nursing home care. To help you make the right decision in choosing a nursing home, here are a few questions to ask yourself ahead of time. And of course I am of the belief that you need to plan while you are young and healthy. Blessings, Click HERE to view my blog

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1. What Are The Alternatives To Nursing Home Care? Let’s face it, no one wants to go into a nursing home. But often, families don’t see any other option. They’re making the decision to opt for nursing home care at the last minute and in crisis mode. That’s why pre-planning is so important. Talk to your doctor, local social workers and other elder care professionals to see if there are assisted living or home health care options available to help your loved one. 2. How Do I Find A Good Nursing Home? Shop around. Planning ahead gives you the option to go and actually visit nursing homes in your area. Make unannounced visits and see what’s going on when they’re not expecting you. And again, talk to your doctor and other local health and social workers and ask them for recommendations. 3. How Do I Get My Loved One Into A Nursing Home? The admission process for nursing homes can be daunting. Planning ahead gives you more time to go through the process with less pressure. Talk to the admissions directors of the nursing homes you’re interested in and get information on the admissions process. Talk about your financial situation and be willing and ready to negotiate. 4. Who Pays the Nursing Home? Talk to a good elder care attorney and see if you’re eligible for assistance. You may qualify for help from Medicare or Medicaid. This is a particularly tricky area of the law and you need an experienced professional to help you through it, especially if your loved one’s spouse will not be going to a nursing home. You need to take steps to protect them. Have your elder care attorney look at all documents before you sign them. 5. How Do I Make Sure My Loved One Will Get Good Care? Again, planning is crucial. You need to sit down with the nursing home staff and determine what kind of care your loved one will need and what is available. Have a proper care plan in place from the very beginning and make sure that care plan is part of the contract for your loved one’s admission to the nursing home. 6. What Are the Nursing Home’s Duties to My Loved One? During your investigative process, ask each nursing home for a copy of their duties under the Nursing Home Reform Act. You may be surprised to learn what rights you and your loved one have. And again, talk to an attorney specializing in elder law to make sure you understand what the nursing home is, and is not, obligated to do. Making the decision to place a loved one in a nursing home requires serious planning and thought to ensure that you are making the right decision and choosing the right nursing home. Don’t go it alone. Talk to an experienced elder care attorney and find out what your options are with regard to financing, government assistance, your loved one’s rights as a nursing home resident and exactly what the nursing home is obligated to do. We can assist you and put you in the right direction. Its tough, believe me I know! We can help you plan and help you ensure that you’re making the right decisions. Call us to schedule your Family Wealth Planning Session today. 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.

Happy February!

My husband and I enjoyed a great weekend in Big Bear. One day it was bright and sunny the next was flurry with snowflakes as we hit the ski slopes! We enjoyed the time with our friends. Its been busy since we returned. There are a few long weekends this month and of course love is in the air as we prepare for Valentine’s. Life and love can get complicated when you are young and have a growing family. Well regardless, life can become complicated and there are various ways to easy the stress of life, especially when it comes to money. It’s hard to go from handling your money as a single person to handling money as a couple... When you add children to the mix, it gets even tougher... Birthday parties, karate lessons, family vacations... All the things we want our children to have can put a pinch on the family budget. If you have a young family, you need to be smart about your finances to make sure your family is taken care of. I hope you find some of these tips beneficial. Blessings, Click HERE to view my blog

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Here are six common mistakes young families make when it comes to money. How many apply to you? 1. Too Much Debt Most people see debt as a way of life. But if you want your children to have a sound future, do whatever you can to avoid carrying excess debt. Pay off those credit card balances as quickly as possible, or at least make sure that if you do use debt, you are still living within your means. Forego a new car every 4 or 5 years. 2. No Budget Say the word “budget” and many young parents will just laugh and say, “Who can afford to budget?” The real question is who can afford not to. A budget is nothing more than a smart plan for how you spend your money. If you don’t plan, it’s too easy to go on binge shopping sprees or pick up that little something extra at the grocery store that you really don’t need. Budgets help curb impulse buying. And when you’re sitting down to do your budget, be honest. Most young couples underestimate their expenses by 20%. 3. No Retirement Savings This is a must. Retirement may seem like it’s a lifetime away when you’re raising your children but it will be upon you before you know it. First, get out of debt and save some money for emergencies. Then do everything you can to put money away for retirement. If your employer matches your 401(k) contributions, you need to contribute as much as possible so you will get your match. Forget about saving for a new car until you’ve maxed out your 401(k) contribution. 4.No Insurance As young parents, you may need term or whole life insurance pending your finances and need. Term life is less expensive than whole life insurance. Talk to a reputable insurance agent about how much you need and the best policy for your family. 5. Not Saving for Education The cost of a college education has gone through the roof. Now, just imagine what it will be like when your 3-year-old is ready for college. Some estimates are that in 18 years, a four year private college education will cost more than $300,000. After you’ve put money away in an emergency fund, cleared your debt and maxed out your 401(k), your next savings goal should be your children’s education fund. But there are alternatives on saving for education. 6. No Emergency Savings By now, you’ve probably noticed that we’ve mentioned emergency savings several times. That’s because so many young couples don’t think about planning for emergencies. It’s tough to put extra money away “just in case” when you’re raising a family. Every penny seems to be spoken for. But you need to have three to six months’ salary set aside for emergencies. Put a little away every time you possibly can. Don’t let the numbers daunt you. Just set it aside in an account and leave it there. With today’s job market, having those emergency funds is more important than ever. You may be thinking that right now it’s all you can do to just take care of your children. But planning ahead for your family’s welfare is the greatest gift you will ever give them. We can help you plan. Call us to schedule your Family Wealth Planning Session today. 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.

Are Fees Robbing Your 401(k)?

Wow January is almost over! It has been a busy month. I have been meeting with clients and protecting their families. Along with that I have invested in a new server and additional Security Protection for my clients. I am happy to announce I just have to put in a few passwords and press a couple of buttons. My IT professional Doug Harvey has been fantastic! There has been a few kinks but he has been fabulous in setting it up. I will let you know a little bit more about his services, but for now I highly recommend him. I hope you are organizing your legal and financial house! I know there is so much to do in the new year but you just have to keep checking off your list. Here is a bit of information about 401 (k)’s I hope you find interesting. If you need a referral I have several that I can recommend. Love to hear from you soon. I will be in Big Bear this week enjoying some cool weather and maybe a little bit of skiing or at least playing in the snow. Blessings, Click HERE to view my blog

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You’re a smart money manager You’re planning well for retirement You put the most you possibly can in your retirement accounts, including a 401(k)… Then you get your statement and find that you’re being robbed blind by outrageous fees. And what’s even worse, you were never given access to information that would tell you what those fees are. The good news - that’s about to change In October 2010, a new rule issued by the Department of Labor requires 401(k) plans to not only disclose their fees up front but also explain them. The bad news is that this rule is an improvement but it’s not perfect. You’ll be told how much you pay in overall expenses but you may not be told how much of that goes to investment management fees as opposed to administrative costs. What You Can Expect Once a year, your 401(k) plan will send you a breakdown of the annual operating expenses for each one of the investment options they offer. The breakdown will show the expenses as a percentage of the assets and a dollar amount per thousand dollars invested. They will also provide sales fees and any other charges associated with each investment option. You’ll receive a quarterly statement showing your 401(k) plan’s expenses for administrative costs such as accounting and record keeping. The statement you receive will only show the fees deducted from your account. Some 401(k) plans will take administrative costs directly from your balance while others use a portion of your investment expenses to cover some of the administrative side. One thing to note - any indirect fees for administrative costs won’t have to be broken out, so chances are they won’t be. For example, if you see a charge of $250 on your account, you won’t know exactly how those fees were spent (i.e., legal fees, accounting costs, etc.) The Benefit of Disclosure Knowing what you’re being charged gives you the opportunity to compare funds. Take a look at the fees for each of the investment options your 401(k) plan offers. Balance those fees against their historic returns and see if the higher paying funds are really a better deal for you. Even though you don’t get a full, line item disclosure of what the administrative costs were for your particular plan, you still have a breakdown of what the investment management fees vs. administrative costs are. This should give you the information you need to pressure your 401(k) plan to keep costs down. One way to do that is to encourage competition. Compare your plan to other plans and see how your administrative and investment fees stack up. If there’s a better deal out there, make sure your Human Resources department knows it. They can use that information when it comes time to negotiate with your plan provider. Would you like a second opinion about your 401(k) investments? Want to make sure you’re making the right investment choices and structuring your retirement to optimize savings?br> WWe can help. I have a couple of great folks that I work with that can take a quick look at your account and see what is going on. Call us to schedule your Family Wealth Planning Session today. 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.

Interviewing Your Financial Planner

Hope your year is kicking off with lots of good things and you are starting your New Year Resolutions – Of course its time to get the financial and legal house in order. Here is a little bit of information to start putting your financial house in order. With all the bad news about crooked investment counselors and dishonest financial planners, you may be more than a little hesitant to trust someone with your life savings. If you want to hire a professional to handle your portfolio, you need to do what folks in the legal trade call “due diligence”. You need to do your homework and interview the planners you’re considering. When choosing a financial planner, ask them the following questions to get a good feel for not only their level of expertise, but their ethics as well. And remember, you need to feel comfortable with the person you are going to allow to invest your money. I have several Financial Planners that I can recommend based on what you are looking for. This is not an all inclusive list but a few things that you should consider. I hope to see you soon and assist with your legal house and protecting your loved ones. Blessings, Click HERE to view my blog

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Key Questions to Ask When Looking for a Financial Planner

Question No. 1: How many years of financial planning experience do you have? They should have at least five years of experience. If you have a sizable portfolio, you want someone with considerably more experience. Don’t let someone “learn the ropes” with your money. Question No. 2: What level of education do you have? Any financial advisor should have at least a Bachelors degree. The more advanced the education, the better. Find out where they went to school and check the school out to make sure it’s an accredited university. You don’t want to hire someone to handle your money who bought their degree. Of course, if it’s Harvard, Yale, Stanford or some other well known university, you can skip this step. Just make sure that it’s a valid degree. And many times its experience that prevails. Question No. 3: Do you have any additional professional certifications? The correct answer to this is yes. They should have at least a CFP, or CPA/PFS certification. These certifications indicate that your advisor has obtained specialized knowledge in their area of expertise. That’s good news for your portfolio. Question No. 4: Are you a Registered Investment Advisor or Investment Advisor Representative? The answer to either of these should be yes. If the person you’re interviewing is not an RIA or IAR, don’t hire them. These are both important certifications. RIA’s and IAR’s provide financial planning services for a fee. Other types of advisors will sell you investment and insurance products and work on commission. Neither of those is in your best interest. Question No. 5: Do you have a criminal record or any disclosures on your NASD or insurance compliance records? The answer to either of these questions should be no. An affirmative answer to either one should send you walking out the door. Don’t even bother completing the interview. Question No. 6: How do you get paid? There are three acceptable answers to this question - hourly, asset-based, or fixed fee. If the answer is commissions, take a walk. Financial advisors who work on commission have a built-in conflict of interest. Their first thought will be making the sale, not protecting and growing your money. There is no time like the present to start planning for your financial future. If you’ve been hesitating in hiring a professional to help you, taking these questions into the interview will make it much easier for you to determine whether or not the planner you’re interviewing is the right one for you. It’s important to get a fee agreement regarding how the financial planner will be compensated. This is your life savings and your future we’re talking about. Take it very seriously and proceed with caution. Call us to schedule your Family Wealth Planning Session today. We can help you with your financial planning questions and ensure that you’re getting the best advice possible. 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.

So, What Exactly Does An Executor Do?

Wow we are almost through the first month of the year! What have you done? Financial Planning? How about Legal Planning? Have you named your guardians? Here are a few things to think about if you are getting your legal house in order. After naming guardians I ask clients who they would like as the executor… Or maybe, someone you know has asked you to be their executor… If either of these scenarios sounds familiar, it might be a good idea to know exactly what an executor does before you make a commitment either way. Blessings, Click HERE to view my blog

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Being an Executor - An Honor and a Burden

The executor of an estate is charged with taking care of a person’s final business on earth. You are responsible for protecting the deceased person’s property until all the taxes and debts are paid and making sure that everyone else receives what they’re entitled to under the estate. That can be a huge task or a small one, depending on the size and complexity of the estate. As an executor, you don’t have to be a legal expert or an accountant but you do have to be honest, impartial and detail oriented. As an executor, you’re charged with a “fiduciary duty” (which means a duty to act in good faith and honesty) in all business of the estate. If you fail to carry out this “fiduciary duty”, you could be held legally liable for that failure. This is a serious consideration when deciding who to name as your executor or whether or not to accept appointment as the executor of someone else’s estate. Again, depending on the size and complexity of the estate, you could feel like Switzerland in the middle of warring factions for a long time until everything is settled. Make sure your nerves are up to the task before you sign on. The Daily Business of the Estate Executors have a lot of work to do to settle an estate, regardless of the size. Some of the things you would be responsible for are: • Finding and managing the deceased person’s assets until they’re distributed to the heirs of the estate. You may be asked to make decisions on whether or not to sell certain assets or keep them in the estate. • Determining whether or not the will needs to be sent through probate. If there is a surviving spouse, many of the assets that were jointly owned may pass on to the spouse without the probate process. Always consult an estate planning lawyer to determine what needs to be done. • Determining who actually inherits property. If you’ve been named as an executor, chances are that your loved one left a will. That makes this part of the process much easier. If your loved one died without a will, you could have a serious chore ahead of you. • Take care of any necessary court filings. Even if the probate process is not necessary, the will still needs to be filed with the probate court. If it turns out that the estate does need to go through probate, you could have a substantial list of filings to take care of. • Handling the day-to-day grind. This could be a laundry list of little details that need to be taken care of to close out an estate. You could be cancelling credit cards, notifying the Social Security Administration and Medicare of the death, stopping mail deliveries from the Post Office, determining who takes care of pets, and the list goes on. Make sure you have the time and the ability to handle all these daily details before you agree to the task. • Setting up a bank account for the estate. If you don’t have signature authority on the decedent’s bank accounts (and you probably won’t), you will need to set up an account to take care of the expenses involved in wrapping up the estate. Any insurance payments, stock dividends or final paychecks will go into this account to pay ongoing bills such as a mortgage or property insurance until the estate is settled and the assets are distributed. A word to the wise - keep thorough records of all sums coming into and going out of this account to head off any potential problems with heirs to the estate. • Paying taxes. Yes, a final income tax return has to be filed for the deceased person and it will cover the period from the beginning of the tax year until the date of death. If the estate is a large one, state and federal estate tax returns will need to be filed as well. Being an Executor Requires Commitment Take another look at the list of duties we just gave you. Stop and seriously think about all the things that would go into settling your estate - who needs to be paid, what needs to be sold, who gets what - and then make a decision on who would be the best person you know to handle all that. Once you have someone in mind, talk to them about it at length. Show them our list and make sure they’re okay with handling this much detail in someone else’s life before you name them as your executor (or before you agree to be the executor of someone else’s estate). Call us to schedule your Family Wealth Planning Session today. As part of our Family Wealth Planning Session, we will sit down with you and go over a list of what needs to be done with your estate and give you an unbiased opinion on your options for an executor. 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.

New Year Goals for 2011

Happy New Year!! I do hope that 2011 will be a healthy and happy year for all. But we all do need to be proactive and take care of business. So don’t wait to take care of those essential necessities in life. I did a little research about New Year’s Resolutions or Goals and put together a list. I know you know what’s number one on my list! But that of course, is even after taking care of your health. Your health should always be # 1 on your list. Think of it this way, if you take care of your legal life, the rest of the year you can enjoy. So while you are on that treadmill or taking that yoga class YOU need to make your appointment and get your financial and Legal life in order! You will have peace of mind once you do. Blessings, Click HERE to view my blog

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Improving your Economic Well Being

1. Create or update your Trust/ Will. (you knew this would be number one my list!) Nobody likes to think about his or her own death. But you can't ignore reality. Look at the earthquake in Haiti, Hurricane Katrina, 9/11 or the unfortunate, 150,000+ victims killed by the Tsunami that spread across Asia and Africa. Tomorrow isn't promised. You all know this is my favorite and I can assist you with this one! Your plan should be reviewed at least every 3 years, unless of course there has been some type life change, marriage, divorce, birth death. Either way I can assist here. 2. Eliminate credit card debt. Tired of being in debt and living paycheck to paycheck? Then it's time to knock out those credit card bills once and for all. There are all sorts of assistances out there to help you. Go on line and they will find you, or get on a budget! 3. Improve your credit rating. Having poor credit will hurt you in many ways. You'll pay more for loans, credit, and insurance. Plus, bad credit could prevent you from renting an apartment, buying a house, getting a loan or getting a job in this economy. If you go online you can get free copies of your credit report. 4. Get proper insurance. Get life insurance and have adequate coverage for your valuables and property – home, car, etc. – too. If something goes wrong, you and your family will be so glad you did. We all need this and it can also assist with your savings as well. 5. Prepare your taxes early. Get any tax form you need from the IRS and file your taxes ASAP. Or see your CPA and you'll avoid the procrastination and stress, as well as the hassles and long lines, at the Post Office on April 15th. Don’t forget, early filers also get faster refunds. 6. Slowly set aside 3 months' savings. If an emergency happens – from a job loss to a car breakdown – your savings cushion will protect you from resorting to credit cards. There are all sorts of ways to save money, but you might have to stop drinking your favorite coffee drink and make it yourself! 7. Make a financial plan. Start writing out your financial goals and what it will take to achieve them. Work with an advisor or do it yourself. 8. Fund a retirement plan. If you have a 401(k) or 403(b) plan at work, start contributing, or increase your contribution. 9. Ask for a raise. (Be careful here) List the ways you've contributed to your company's prosperity or your department's well being, and approach your boss for a raise. The Wall Street Journal's Careers section has tips for getting a pay hike at www.wsj.com. If you work for yourself, give yourself a raise by raising your prices or offering higher-end products and services. I cannot add much on this one, but the Wall Street Journal’s article is helpful 10. Improve your financial record-keeping. Get your paperwork in order, and keep good records all year round. This will save money in the long run and reduce your aggravation come tax time. For help, try the free online budgeting and record-keeping or make an appointment with me to get your Financial Freedom Notebook. Here's wishing you a happy and financially prosperous New Year!