Trusts can be very flexible in meeting a family’s needs. But, needs can change over time. The key to a trust is flexibility. Let’s look at a couple fairly common situations and some solutions. John and Jane consulted with an attorney who drafted a trust for them which started out revocable and became irrevocable upon the death of the survivor of them. The trust worked seamlessly while John and Jane were both alive. Then, when John died the trust continued for Jane’s life. At Jane’s death, … [Read more...]

Life expectancies are getting longer and longer. And, not coincidentally, the risk we will need long-term care (“LTC”) is greater than ever. An interesting article in Forbes discussed the likelihood of needing LTC. It examined the research and concluded that most people would need LTC at some point during their life. Needing LTC is not the exception, it is the rule. This is not just an interesting point to ponder. LTC is a very expensive proposition that can torpedo a client’s financial … [Read more...]

Clients often don’t put much thought into the importance of the selection of trustees and the standards for distributions used by the trustee. Truth be told, these are some of the most important decisions clients will make. The trustee is the CEO of the trust. They make the decisions regarding how to invest the assets and exercise whatever discretion is in the trust regarding distributions to beneficiaries. First, who makes a good trustee? Clients often choose a trustee simply based on birth … [Read more...]

Most of us have a broad range of clients in our practices. Some of our clients have large assets and now want to dispose of those assets. They might have started a business with sweat equity and now want to retire or exit the business. They might have purchased a publicly-traded stock, such as Amazon, Apple or Microsoft in the early days and hold a very large position in the stock. They may want to diversify their portfolio due to the inadvertently large concentration of assets in one stock. … [Read more...]

Savvy planners know that failing to plan is not desirable. Benjamin Franklin is often quoted, “If you fail to plan, you are planning to fail.” Few planners would guess how many of their clients might not have a plan in place. According to a recent survey by Harris Poll, 64% of Americans do not even have a will. Here’s a link to an article in USA Today which discusses the survey. Many would guess their wealthier or more sophisticated clients would not be among those without a plan. But, even … [Read more...]

Retirement assets comprise a large portion of most Americans’ total wealth. By March 2015, retirement assets hit $24.9 trillion. That’s a lot of money! The key to maximizing and maintaining that large chunk of your clients’ wealth is to keep the money in the retirement plan for as long as possible. There are two reasons it is normally best not to withdraw retirement assets for as long as possible. The first reason is asset protection. As long as the assets are in a retirement plan (like a … [Read more...]

Now that the election of Donald J. Trump has become a reality, the question is how that will affect estate taxes and estate planning. The simple answer is that for most Americans there will be no change, as currently 99% of taxpayers are not subject to the estate tax. If the law remains unchanged, the amount a taxpayer can pass free of estate tax in 2017 will be $5,490,000, or $10,980,000 for married taxpayers. President-Elect Trump has proposed the complete elimination of the estate tax. In … [Read more...]

Persons with disabilities have been seeking a way to save for college, medical equipment and health care expenses, and retirement without being disqualified from government assistance programs such as Medicaid and SSI (Supplemental Security Income) for decades. Generally speaking, a disabled person receiving needs-based government assistance cannot have more than $2,000 in a bank account or other assets. There are exceptions for a personal residence, one car, certain work-related equipment, and … [Read more...]

Tom Clancy was a prolific scrivener of action novels. Upon his death at age 66, he left a substantial estate. His Will divided his estate into three shares – one share to his wife, one share for his wife to use during her life (with the remainder to go the daughter of their marriage), and one share to go to his children from previous relationships. Weeks before he passed away, Clancy executed a Codicil to his Will which included the following sentence: “No asset or proceeds of any assets shall … [Read more...]

Fans of Young Frankenstein, Blazing Saddles, The Producers, and Willy Wonka were saddened by the death of Gene Wilder. Unlike others who die from Alzheimer’s disease, the comedian’s death was attributable entirely to this deadly disease. The fact is that Alzheimer’s disease is the real cause of death of millions of people, causing a slow death of the brain until the body succumbs, most often to contributing conditions such as pneumonia, sepsis, kidney failure or heart disease. Wilder’s family … [Read more...]