Many people think about planning ahead and create an estate plan that includes a Last Will and Testament and various other estate planning documents. If you have created an estate plan, or are in the process of doing so, you may wish to consider pre-planning your funeral as well.

Pre-planning your own funeral offers a number of practical and emotional advantages. By making arrangements ahead of time, or at least expressing your wishes ahead of time, you will spare your family and loved ones from having to make very difficult decisions in the midst of their grief over your death. In addition, pre-planning your funeral can provide financial savings as well.

If you have ever been in the position of being in charge of making funeral arrangements for someone who has just died then you know how emotionally challenging it can be to try and concentrate on practical concerns while in the midst of grieving. In addition, even if the person discussed with you his or her wishes regarding burial and funeral services, you inevitably run into an issue that was overlooked during your discussions.

By consulting with your estate planning attorney and a local funeral director ahead of time, you may be able to spare your family and loved ones the daunting task of planning your funeral upon your death. Making funeral plans ahead of time can be fairly easy to accomplish and will provide you with the peace of mind that comes with knowing that your wishes are in writing and will be followed in the event of

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

If you are a small business owner, you have special concerns when it comes to estate planning that should be taken into account when you create your estate plan. As you have undoubtedly worked hard to build up your business, you should take care to ensure that it will not be lost or mishandled in the event of your death.

How you approach your estate planning with regard to your business will depend on a number of factors, principal among them is what business entity you chose for your business when it was formed. A corporation, for example, survives the death of a shareholder. A partnership, on the other hand, may or may not survive the death of a partner. A sole proprietorship, clearly does not survive the death of the owner. Which entity you formed for your business, therefore, will dictate, to a large degree, how you incorporate your business into your estate plan.

Regardless of which type of entity you chose for your business, however, you have a financial interest in the business that you likely wish to pass down to loved ones or family members. You may also wish to devise a business continuity plan that provides a legal mechanism for the business to continue even after your death. In that case, important decisions will need to be made regarding who will continue in your place and how to legally transfer ownership of the business upon your death.

The best way to protect your small business in the event of your death is to consult with your estate planning attorney.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Advanced directives, also known as health care directives or living wills, are common estate planning tools that can be used by anyone. Although the importance of creating an advanced directives is applicable to anyone, it can take on heightened importance for members of the Gay, Lesbian, Bi-Sexual and Transgender, or GLBT, community.

State laws determine whether advanced directives are recognized within the state, and if so, what form they must take, what may be included, and what limitations apply. The basic concept, however, is the same in all states where they are recognized. An advanced directive is a legal document that allows you to appoint someone to make health care decisions on your behalf in the event you are unable to do so. An advanced directive may become active because of a physical incapacity or because of a mental incapacity. You may also be able to make certain health care decisions ahead of time such as whether or not to agree to life sustaining measures.

For members of the GLBT community, executing an advanced directive may be a simple solution to a complicated problem. Even if you were legally married in one of the few states that recognize same sex marriages, you may now be living in a state that does not recognize that marriage. You could also be injured or become gravely ill in a state that does not recognize your union. Even a legal spouse may not be able to make health care decisions for a spouse, as many states require court approval in the absence of an advanced directive. In order to avoid the need for court approval, and the risk that a court will not give your partner the authority to make decisions on your behalf, consult with your estate planning attorney about executing an advanced directive

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

At some point during the planning or implementation of your estate plan, you may start to wonder with whom you should discuss the details of your plan. There is no standard answer to that question. Some people choose to share all the details with everyone involved while others share nothing with anyone. Only you can make the final decision; however, there are some things worth considering before you make the decision.

Executor/Guardian/Trustee: If you plan to name someone as the executor of a Will, the trustee of a Trust, the guardian of your minor children or any other significant position within your estate plan, it is generally a good idea to discuss your intentions with them first. While they may be competent to serve in the position, they may not be willing or able for a variety of reasons. If you do ultimately appoint the person to the position, they should also be given a copy of the final document reflecting the appointment.

Spouse or Partner: You are certainly not required to discuss your estate plan with your spouse or partner. Separate plans can be made; however, if you own significant jointly held assets and/or have children in common, creating separate estate plans could create confusion or even lead to litigation in the event of the death of one spouse or partner.

Beneficiaries: This is a highly personal decision. In most cases, beneficiaries have no real legal need to know ahead of time what is contained in your estate plan. Some people choose to divulge the details so that there are no surprises, yet others intentionally withhold the details to avoid any family conflict that could arise as a result of divulging the details.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

As a small business owner, you have likely spent years growing your business to the point where it is at today. As such, your business is now an important asset that must be considered when creating your estate plan. Regardless of how you wish to dispose of your business in your estate plan, you will want to avoid incurring estate or gift taxes to the extent possible. There are numerous options that may help you accomplish this, including the following:

• Sale of Your Business: Selling your business is the easiest option by far. An outright sale can potentially be postponed until your death and still avoid estate taxes as long as the sale is for the fair market value of the business; however, the sale could still subject you to the payment of capital gains taxes. Another sale option is to use a buy-sell agreement. Similar to an outright sale, a buy-sale agreement is a pre-arranged agreement for the sale that kicks in when a triggering event occurs, such as your death.
• Trusts: Both the grantor retained annuity trust (GRAT) and the grantor retained unitrust (GRUT) are irrevocable trusts to which you transfer the business assets. A GRAT or GRUT can be structured to allow you an income stream from the business until the end of a specific period of time at which point the trust assets transfer to the beneficiaries. The benefit to a GRAT or GRUT is that the assets transfer at a reduced value, thereby decreasing your tax liability.
• Forming a Partnership: By forming a partnership with someone to whom you wish to leave your business, you can retain control of the business while alive, and slowly gift the limited partnership interest to the other partner. The gifts may qualify for valuation discounts as a minority interest, thereby reducing estate taxes in the long run.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

The world is mourning the death of Whitney Houston who died this week at the relatively young age of 48. The legendary singer/actress was found dead of unknown causes in her Beverly Hills hotel room where she was staying in anticipation of the upcoming Grammy Awards. Best known for the song I Will Always Love You, Houston once seemed to have the touch of gold with a string of number one hits and a successful attempt at crossing over to acting with her role in The Bodyguard. Sadly, the last decade of Houston’s life was plagued with personal troubles including a battle with alcohol and drug addition and the end of her contentious relationship with singer Bobby Brown. As is often the case, sales of anything related to Houston began to soar within hours of her death. Beneficiaries of Houston’s estate stand to receive income from the residuals of her music and acting contracts for years to come.

Although most of us have not attained the kind of public success that Houston reached during her lifetime, many people do have assets that may continue to grow long after death. When planning your estate, it is important to take this into consideration. An investment, or business, for example, will continue to increase in value long after your death if managed properly. Even a small investment or fledgling business can grow to become an asset of significant value in a short period of time. When planning your estate, be sure to consider the possibility that an asset such as this can grow exponentially, providing a significant future income for the beneficiary. By the same token, if you have an asset that has grown, and the new value changes how you wish to handle the asset in your estate plan, be sure to consult with your estate planning attorney to make the required changes in your estate plan.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Unfortunately, divorce is now more common now than it was years ago. In fact, more than half of all first marriages, and approximately 60 percent of second marriages end in divorce. While divorce clearly affects the spouses and children emotionally, it also has a significant financial impact. If you are currently in the process of a divorce, or recently finalized one, be sure to consult with your estate planning attorney to ascertain what estate planning changes may need to be made. While each situation is unique, the following changes, as well as others, may need to be made:

• Replace your ex-spouse as the beneficiary of retirement plans, pension plans or life insurance policies. Do not count on state laws to automatically remove your ex-spouse as a possible beneficiary.
• Removal of your ex-spouse as a beneficiary in your Last Will and Testament.
• Appointment of a guardian in your Will for your minor children.
• Creation of a trust and appointment of a trustee. Unless you want your ex-spouse to control funds left for your minor children, you may wish to create a trust for all assets left to them and choose a capable and trustworthy trustee to oversee the administration of the trust.
• Execute a new living will (often called an advanced directive or healthcare directive). You likely appointed your ex-spouse to make decisions on your behalf in the event of your incapacity. Unless you still want him or her to make these decisions, you will need to execute a new document.
• Revoke any power of attorney documents you executed making your ex-spouse your agent.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Most people have created some type of retirement plan as well as an estate plan; however, people often fail to understand why the two need to be considered together instead of independently.

Think of it this way. Your retirement plan involves money and assets. Your estate plan also involves the same money and assets. Therefore, when you create one plan, you should consider how it will affect the other plan. Likewise, when you change one, you will likely need to change the other as well.

Take, for example, assets that you currently have in savings or in an investment account. You may be counting on those funds to support you during your golden years. Your current estate plan may direct that those assets go to your spouse or children upon your death. What happens, however, if you find that you need to place those assets in an asset protection trust in order to qualify for a program such as Medicaid as you age? A change such as that will also require you to make a change to your estate plan in the form of the creation of a trust.

By the same token, your current estate plan may include trusts for your young children in the event of your unexpected death. As you age, however, you may decide to terminate those trusts and use the funds for your own retirement once your children are grown and self-sufficient.

Because the two go hand in hand, you should make a point of reviewing one whenever you make a change to the other.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

Creating a Last Will and Testament is the foundation of any estate plan. While executing a Will is certainly essential, updating it is equally as important. As the saying goes “nothing stays the same.”  So how do you know when you need to update your existing Will? Although each person presents unique circumstances, there are some common events that warrant revisiting your Will, as well as any other estate planning tools you have in place.

Major life changes always warrant updating your Will. Although there are other events that may also warrant updating your Will, the top three major life changes that clearly require a Will update are marriage, divorce, or the birth of a child or grandchild. The reasons why are equally as apparent. If you get divorced, you likely do not want your ex-spouse to receive the bulk of your estate if you die. If, however, he or she remains a named beneficiary in your Will, that is precisely what is likely to happen. Likewise, if you get married yet fail to name your new spouse as a beneficiary, he or she may not be entitled to anything, depending on the laws of the state where you are a resident. Even if your spouse is entitled to something under state law, it may not be as much as you wished him or her to take from your estate. The birth of a child or grandchild is also a good reason to update your Will. Although the generic term “issue” is often used in a Will to refer to any children or grandchildren, it is best to name children or grandchildren by name in order to avoid confusion. In addition, if you did not have any children when you made your Will, you may not even have a generic provision for any future children, making an update essential.

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.

If you are considering the creation of an estate plan, one important consideration is often the avoidance of probate. In order to understand why avoiding probate is such an important facet of estate planning, you need to have a firm understanding of what probate is and how the probate process operates.

Probate is the legal process that is often required when someone dies. Although the process may vary somewhat from one state to the next, there are commonalities. Probate begins when someone petitions the court to probate the decedent’s estate and admits the decedent’s Last Will and Testament to the court, if one exists. The court then appoints a personal representative or executor. If the decedent left a will, an executor was likely named in the will. The court must still approve of the nomination. In the absence of a will, the court will appoint someone as personal representative.

The executor or personal representative is then charged with making a complete inventory of the decedent’s assets. All assets must also be valued and an inventory list submitted to the court. Notice of the probate is required to be given to beneficiaries and/or heirs as well as to the public by publications in a local newspaper. Claims can then be made against the estate for debts which are approved or denied by the executor or personal representative. Taxes must also be paid by the estate in some cases. A final accounting is eventually submitted by the executor or personal representative to the court for approval, If no disputed claims or a will contest against the estate have been filed, the court will then release the assets to the beneficiaries or

Purcell and Amen, Attorneys at Law – Your Estate Matters, LLC is a member of the American Academy of Estate Planning Attorneys.