In far too many cases, loved ones are left behind to deal with difficult circumstances because of estate planning mistakes that were made by family members. With this in mind, we will look at some common estate planning mistakes in this post so you can steer clear of these scenarios. DIY Estate Planning There are websites on the Internet that sell boilerplate, fill in the blanks legal documents. The marketing approach revolves around the idea that anyone can play the role of an attorney and … [Read more...] about Avoid These Common Estate Planning Mistakes
Estate Planning: Make Today the Day
Studies are conducted periodically to gain an understanding of the estate planning preparedness of adults in the United States. Unfortunately, the results are never encouraging. Most people that are over 65 have a will or some other estate planning document, but a significant percentage of people in this age group do not. The vast majority of Americans that are under the age of 40 are completely unprepared. If you are a young adult and you are single, you should have a will or a trust, but … [Read more...] about Estate Planning: Make Today the Day
Planning for Education Expenses
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the third in a series focusing on planning for children. The first article was focused on the importance of planning if you have step-children. The second article focused on the importance of planning if you have “special needs” children. This third article focuses on planning for education expenses. You want the most for your child. Above all you want to … [Read more...] about Planning for Education Expenses
Planning for Special Needs Children
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. This is the second in a series focusing on planning for children. The first article was focused on the importance of planning if you have step-children. This article focuses on the importance of planning if you have “special needs” children. The next article in the series will focus on planning for education expenses. A “special needs” child is a child who faces a … [Read more...] about Planning for Special Needs Children
Kiddie Tax is Worse Than Ever
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. The “Kiddie Tax” is a tax on the “unearned” income of a child. In other words, it applies to the child’s income from interest and dividends, but not from wages from a job like their paper route or McDonald’s. The Kiddie Tax has been around since 1986 and applies to the unearned income of a child over a certain small amount. In 2019, that amount is $2,200. Prior to … [Read more...] about Kiddie Tax is Worse Than Ever
Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. TOD (Transfer on Death) designations, POD (Pay on Death) designations, and beneficiary designations can be useful in the right circumstances. Each of these tools allows for an automatic transfer to the named beneficiary at the death of the owner. But these tools can have a few shortfalls. First, if the named person predeceases the owner, typically it will not be … [Read more...] about Beneficiary Designations, etc., Aren’t a True Substitute for a Trust
Trusts for Privacy
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. There are many good reasons to use trusts: Trusts avoid the probate process, which is a public process to change title of assets from the deceased person to the new recipient. Trusts may be helpful in tax planning. Specialized irrevocable trusts may be helpful in qualifying for Medicaid/Medi-Cal. Trusts are helpful to manage your assets during your … [Read more...] about Trusts for Privacy
Estate Planning is Too Important to Procrastinate
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Most of us recognize that estate planning is the loving and responsible thing to do. Yet, only 44% of adult Americans even have so much as a simple Will, according to a Gallup poll. Our world is increasingly complex. It seems our lives are busier than ever. Interestingly, this may not be what leads us to procrastinate. According to Psychology Today, there are three … [Read more...] about Estate Planning is Too Important to Procrastinate
Donor Advised Funds: IRS Issues New Ruling
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. In prior blogs, I explained how a donor advised fund works in detail. Basically, you make a contribution to the fund now and take a deduction in the year you make the contribution. In future years, you, as the adviser, can direct distributions to the public charity of your choice. A donor advised fund may be useful to aggregate charitable gifts into one year to enable … [Read more...] about Donor Advised Funds: IRS Issues New Ruling
Sager Family Shows Perils of Blended Families
Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education, American Academy of Estate Planning Attorneys, Inc. Blended families require special planning. Sometimes, the children from the prior marriage bond with the new spouse and the family moves forward in a happy, newly modified form. However, frequently, the new marriage brings conflict between the new spouse and the children of the prior marriage. Such is the case with the Sagers. In 1980, sports reporter Craig Sager … [Read more...] about Sager Family Shows Perils of Blended Families
