It is not uncommon for the executor of an estate or the family members of a lost loved one to be forced into digging through stacks of paper to determine whether or not the deceased has outstanding debt, or if there was an insurance policy in place. It is recommended that people include information about outstanding debts when they compile their end-of-life documentation. Nowadays, a list of passwords for accounts paid online is also a good idea; not to mention personal identification numbers and information like mother's maiden name, et cetera.
]]> Something else that often goes overlooked when will planning is documentation concerning any investments a person may have in place. The contact information for brokers or agents along with a list of any assets a person may have can go a long way toward easing stress for loved ones in the wake of loss. Finally, it's not a bad idea to leave detailed instructions - and set aside funds - for funeral arrangements. When doing so, including a list of organizations and close friends to contact may also ease some strain.Will planning in Palm Beach County is not an easy subject to breach. No one likes the idea of planning for the end of life. Unfortunately, death is inevitable and will come to every person. Discussing the aforementioned details with your family members will ensure that loved ones do not suffer unnecessary stress.
Source: Reuters, "5 Things You Must Do After Writing Your Will," Jennifer K. Halford, May 3, 2012
]]>This reality is just another reason estate planning is so important. Having an estate plan in place that includes a will or trust can make things just a little bit easier for those we leave behind.
]]> The story highlights a former United States Marine and now government employee who is still fighting the war on terror on his country's behalf. He got married earlier this month. In what reads like a fairytale, the happy couple had planned to pack a plethora of memorable moments into a fun filled wedding weekend. Unfortunately, tragedy struck the Friday morning prior to the wedding when the bride's grandmother passed away. In what was surely a whirlwind of mixed emotions, the family of the bride had to deal with not only joy but pain -- both gain and loss.Guests to the wedding were hard-pressed for an appropriate reaction. Congratulations were quickly followed by condolences. The story itself is a reminder that life can be fragile. Planning ahead for one's final breath can save family members heartache and stress after the fact. And while the subject of death and estate planning is something that many people in Palm Beach would rather avoid, advocates are in place to help make the estate planning process a bit easier to bear.
Source: NWI.com, "Estate Planning: One wedding and a funeral," Christopher Yugo, May 6, 2012
]]>In a recent newspaper column, one writer detailed her experience about the death of her grandmother many years ago. Her grandmother, believing that everyone already knew her intentions, was said to have seen a will as unnecessary. Unfortunately, though, many of her family members did not know her intentions, disagreed about those intentions or outright ignored them. According to the writer, some of her family members still do not talk to one another some 17 years later as a result of the disputes that arose in distributing her grandmother's estate.
]]> Sometimes, Florida residents may be holding themselves back from engaging in will planning out of a belief that it is lot of paperwork and expensive or that they have nothing of value. However, while there is certainly paperwork involved, leaving a will often saves time and money for loved ones. Moreover, drafting a will is not necessarily expensive, especially compared to the expense that family members often incur when probating the estate of someone who left no will behind.Source: Worcester Telegram & Gazette, "The necessity of having a will," Michelle Singletary, May 3, 2012
]]>In many instances, conservatorships are used in cases where an elderly person is no longer able to adequately care for themselves. But in some cases the process is used when a younger individual is deemed to be incapable of caring for themselves. This week Britney Spears' fiancé was named as her co-conservator along with Spears' father. Her father has served as her conservator since 2008 after the singer's highly publicized breakdown.
]]> Fortunately there are various guardianship or conservatorship arrangements which can be applied by the court based on the need of a specific situation. In the case of Britney Spears and her fiancé's co-conservatorship, the fiancé will not have control over Spears' significant financial assets, but instead will have power to act on her behalf to promote her wellbeing. Control over her finances will remain with her father. News reports indicate that Spears still enjoys a wide scope of personal freedoms.This situation allowed for a fairly deliberate decision to add the fiancé as a co-conservator. Unfortunately in many cases in which an elderly Florida resident requires a conservatorship to protect themselves and their interest, it is either due to some unexpected health issue or not sought out until the potential ward is already past the point of being able to make decisions for themselves. Ideally plans for how this situation will be handled should be in place before they are needed.
Source: People, "Jason Trawick Gets Shared Legal Control Over Britney Spears," Ken Lee, April 26, 2012
]]>Consider the type of representation that is best suited to your needs as a couple. Both joint representation and separate counsel can have distinct advantages and drawbacks depending upon the circumstances of your relationship.
Joint representation can be less expensive and efficient. You need only rely upon one set of estate planners and can work together to complete tasks and make decisions. It also has the potential to enforce bonds as you and your spouse build trust and engage in open communication.
]]> On the other hand, employing separate lawyers can make it easier to voice personal issues and desires. You can be confident that your best interests are always represented - especially important where blended families are concerned.But knowing what works for you isn't always easy. Both representation options can be disastrous if there is a lack of communication. Matters can quickly become volatile and issues complicated when factoring in half-siblings or non-blood relatives. Generally however, it is a good idea to consider separate lawyers when:
Source: Forbes, "Estate Planning For Couples: Should It Be A Solo Or A Duet?" Deborah Jacobs, April 10, 2012
]]>Typically, personal debt will lie only with the borrower and cannot be passed down to children or spouses. But there are exceptions. The law varies depending upon the specific nature of the outstanding financial obligations and the state in which the decedent resided.
As one financial planner explained, much is contingent upon how the assets are titled, and whether the debt had any guarantors. If a loved one co-signed your loan or guaranteed a line of credit, he or she would be on the hook for the balance after your death.
]]>If you are insolvent at the time of your passing, all debts will disappear. However, that also means any remaining collateral can be sold and the profits given to creditors, leaving loved ones with nothing.
Even if your estate is solvent, it can be important to remember "creditors always come before heirs." Your debt will be deducted from your estate and the remainder left to those you have designated as beneficiaries. Usually, debts will be paid from your savings. Should that money prove insufficient, the executor may be forced to sell assets such as cars, stocks or homes.
Even so, not all assets may be sold. Those excluded from the probate process could include life-insurance proceeds, retirement benefits and even real estate, should the property have a surviving co-owner.
Source: CNBC, "Who Inherits Your Debt?" Shelly Schwartz, March 16, 2012
]]>For many retailers and others who stand to benefit from those who spend or mishandle monetary legacies, that statistic bodes well. But for others, including the author of the study, it comes as a disappointment.
Prior research has shown that over the next decade, elderly and aging Americans will pass down around $4 trillion to heirs. That means $2 trillion saved and a roughly equal amount spent.
]]> Data for the study was collected from participants in a 1979 National Longitudinal Survey of Youth, whose money habits were measured 23 times over the next 30 years. Results indicated that of those who received an inheritance, more than one third saw a decline or "no change" in their wealth.The median inheritance stood at around $12,000. Almost one in five baby boomers who inherited a significant sum ($100,00 or more) spent or lost all of it.
Researchers hope the study can help both the elderly and their heirs become better financial planners. Parents should consider establishing a trust to ensure money is handed down at an appropriate time and allocated in an appropriate manner.
Meanwhile, children and other heirs could find the motivation to save for baby's college or their own retirement, rather than dishing out dollars to retailers. As one researcher put it, spending can be enjoyable in the short term, but saving can translate to a less stressful future.
Source: Ohio State University Research News, "Most Americans save only about half of their inheritances, study finds" Jeff Grabmeier, March 15, 2012
]]>That number will likely continue to grow as baby boomers age. So what can children do now to protect the long-term interests of themselves and their loved ones? A representative with AARP encourages families to have candid conversations about future care options. Understanding an elderly parent's preferences and goals can make difficult decisions easier.
It is also wise to have the proper paperwork in place. An advance care directive can be an adult child's best line of defense if a parent should become incapacitated. A directive will typically include a health care proxy, durable power of attorney and living will. The health care proxy will grant someone the power to make medical decisions for an elder, while the power of attorney bestows financial control. A living will specifies instructions for end of life care.
]]> Depending upon the family dynamics at play, many children find it beneficial to consult with financial planners, care managers and qualified attorneys who can help tease out disagreements and settle disputes. For example, one sibling might manage a parent's finances while another takes charge of shuttling mom or dad to doctor's appointments.In any case, children should be wary of their own health, particularly when providing care means moving in with a parent. Among female caregivers aged 50 and older, 20 percent reported symptoms of depression.
Source: USA Today, "Caring for elderly parents catches many unprepared," Christine Dugas, March 29, 2012
]]>In the state of Florida, if an individual dies without a will, the courts will take charge of establishing guardianship and distributing wealth. And it is important to note that the judge in charge of a decedent's estate will not be privy to his or her personal wishes. Instead, any assets will be divided according to Florida probate code.
The question of "who gets what" will be determined according to the decedent's family situation. Generally, this means the estate will be distributed between the surviving spouse and children. If there are no descendants, the estate will go to parents or siblings.
]]> For most young adults, it is preferable to have a will that names beneficiaries. A single 20 something may not, for example, want his or her estate to revert to a parent. By creating a will, he or she can instead leave money to a charity or provide for a best friend.Parents of young adults also may wish to consider the terms of their estate. Leaving money to an 18-year old with no strings attached might not be a desirable outcome for some. Rather, parents may want to preserve those funds until a teen has grown into a responsible adult.
Source: Jewish News, "Estate planning wise at almost any age," Michael Butz, March 15, 2012
]]>Lawmakers and attorneys in at least two states are considering proposals that would make Facebook and other social network contents part of a decedent's digital estate. The proposals would grant family members and loved ones access to the deceased's personal, online records and accounts.
Proponents argue that digital images, letters and other content can be equated with mementos kept tucked away in shoe boxes or stored neatly in photo albums. However, unlike the components of a physical estate, there are no laws regulating their distribution.
]]> Proposed bills would allow friends or relatives to take control of a decedent's social media accounts. They would treat Facebook, Twitter and email as digital assets that could be shut down or used by an appointed representative.Currently, when Facebook learns of a death, the site places the deceased's account in a memorialized state. Certain information is removed and profile access is restricted to friends. The wall is maintained so that friends can compose posts in remembrance. Only "if prior consent is obtained from or decreed by the deceased or mandated by law," will Facebook provide loved ones with account data.
For many grieving a death, such policies can be heartbreaking. They may downplay the emotional value of social media accounts, preventing loved ones from poring over favorite photos or re-reading memorable comments. And in some cases, restricted access can thwart practical efforts to notify friends and family of another's passing.
Source: Pioneer Press, "And to my loved ones, I leave my ... Facebook?" Michael Avok, March 15, 2012
]]>The trust was so named because a family member's craving for ice cream led to the purchase of the lucky lottery ticket. The elderly woman bought the ticket while accompanying her relative to the store last month. However, unlike many past winners, she resisted the urge to claim her prize immediately.
Instead, the new millionaire placed the ticket in a Bible and slept with it on her bed. The next morning she made sure her first phone call was to her attorney. Together, the pair set up the Rainbow Sherbet Trust.
]]> The woman's attorney praised her for waiting nearly a month to come forward and accept her winnings. And one might argue that the praise was well deserved. By establishing a trust, the 81 year-old made a well planned decision about the future of her estate. The trust will control exactly how and when her newly acquired assets are disbursed.The exact nature of the Rainbow Sherbet Trust is not known. Trusts can be established in several ways, including through the creation of a will, as in Whitney Houston's case. They may also be set up to provide for the long term care of a disabled individual, or to benefit a charity.
Many trusts are spendthrift trusts. That is, they give the trustee full authority to spend or invest assets for the benefit of the trust's beneficiaries.
Source: WHDH News, "$336.4M Powerball winner is 81-year-old woman," March 6, 2012
]]>The family did not know what orders were coming in, who the business owed money to, who to bill or what orders had been filled. After one month, Yahoo provided the family with the password but after court order. Because of the long wait, the father's business was forced to close because no one except the father had access to crucial digital information about the business.
Before the days of tablet computing and wireless networks, organizing a person's records meant paper documents and sorting through the mail says one estate planning attorney. Today, if a family cannot access computer or online accounts, acquiring access is no easy task. According to a survey conducted by the American Bankers Association last year, more than half of all bank customers age 55 and older prefer banking online. One year earlier, only 20 percent of the same age group preferred to bank online.
As more people's personal and financial lives are connected to the internet, the more important computer passwords become in allowing important access to online accounts. The policies to gain access among firms and companies are different and many require documentation like a death certificate and a court order. To avoid a difficult estate administration process it is important to think about your digital life when creating your estate plan.
]]> One estate planning expert suggests creating a list of professional, financial and personal online assets, including usernames and passwords. The list should be kept somewhere safe like in a safe or bank deposit box. Like with other estate planning documents, at least one other person should know the whereabouts of the list.Source: Reuters, "Keep your digital life alive, after death," Marla Brill, Feb. 17, 2012
]]>It is assumed that Whitney Houston's 18-year-old daughter, Bobbi-Kristina, is the main beneficiary of Houston's estate, and it is also believed that Houston at least had a will. However, a will alone may not be the best estate planning instrument. Under a will, Houston's 18-year-old daughter would receive Houston's assets all at once, which may not be the best idea since many 18-year-olds do not have the financial maturity to handle a large inheritance. The use of a trust would likely be a better choice.
Frequently, folks with even a modest amount of wealth use trusts to disperse assets. In contrast to wills, trusts control when and how assets are distributed and would likely be a better choice when the beneficiary is a young person without financial experience. In the case of Whitney Houston, her daughter Bobbi-Kristina could receive various amounts as she turns older.
]]> Whitney Houston's estate planning case is also interesting because she divorced her former husband Bobby Brown in 2007. Often, individuals who go through divorce do not update their estate planning documents, which can have undesired consequences. Unless, Houston wanted Bobby to receive assets, she hopefully updated her estate planning documents and renamed beneficiaries on accounts and policies like life insurance.Source: abcnews.go.com, "Whitney Houston's estate expected to get boost after death, but less than Michael Jackson," Susanna Kim, Feb. 14, 2012
]]>The 48-year-old's decision to adopt his 42-year-old girlfriend came after criminal charges and civil legal proceedings were filed against the man when he allegedly drove drunk through a stop sign, hit and killed a 23-year-old and fled the scene of the accident. The adoption, according to the man's attorney, is to protect the 48-year-old's minor children.
Well before the accident, the 48-year-old formed an irrevocable trust for his two children and the trust grew from $1.5 million to more than several hundred million. In 2009, the man turned the management of the trust over to an outside trust company.
Facing a potential jail sentence and believing the trust company was not doing what it promised to do, the 48-year-old worried that no one would protect the children's interest in the trust. Therefore, the man sought to add another beneficiary to the trust who could legally protect the interests of the children and the strategy he chose was the adoption of his girlfriend.
]]> According to the 48-year-old, the girlfriend can only receive 5 percent of the trust but she can challenge the decisions of the trust company as a beneficiary. However, the judge in the civil case is not so sure the trust is irrevocable because of the adoption and as a consequence the trust may be included to calculate the damages amount in the civil case.Source: Forbes, "Can Florida millionaire justify adopting his girlfriend?" Danielle and Andy Mayoras, Feb. 6, 2012
]]>A pet trust is a legal document that names a guardian for a pet that outlives its owner. The guardian of the pet trust carries out the owner's instructions for the pet's care which can include directions on food and how the animal should live. Like other trusts, a pet trust must be funded with money or property or both so the care of the animal can be paid.
In comparison to wills, pet trusts are a more robust legal option when it comes to the care of a pet. While a will can assign who will receive a pet upon the death of an owner because a pet is considered property, instructions for the care of a pet are generally not enforceable if contained in a will. If the new ownership of a pet is only established in a will without other legal documents, the state may ultimately decide the fate of the pet because judges have the power to adjust wills.
]]> If an individual person cannot be named as guardian for a pet trust, think about naming an entity like a retirement community as the trusted guardian. With money set aside for the pet's care, a retirement home may welcome the addition of a pet to entertain residents.Finally, the establishment of a pet care plan is also beneficial at time when family members are likely to be grieving.
Source: The New York Times, "The pet problem," Alyson Martin and Nushin Rashidian, Feb. 3, 2012
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