A recent article in the New York Times on the Donald Sterling saga illustrates the uses and effectiveness of incapacity planning as a part of estate planning. Although this case is by no means a model for how any of us would want our incapacity handled, it underscores how incapacity planning may work in the event of a spouse who loses
This NY Times article – about estate planners who focus on a more holistic approach to planning than those who laser in almost exclusively on tax strategies and savings – really resonated with me. I often describe my sweet spot as working with “Millionaire Next Door”-type families and helping provide a bridge between legal issues and family or emotional dynamics. These
According to this Wall Street Journal article, the rise is now official. When the new estate tax laws were passed at the beginning of 2013, the law set the applicable exclusion amount (the value of assets that an individual can pass without any estate taxes) at $5,000,000. That amount was indexed for inflation based on the consumer price index back to
What do Philip Seymour Hoffman, James Gandolfini, Heath Ledger, and Amy Winehouse have in common? Unfortunately, two things: an unexpected and early demise and the other — problematic estate issues. This Forbes article from earlier this year provides some key lessons to take away from these celebrities’ untimely passings. There are numerous stories about families having to go through the same
Consumer Reports magazine highlights the top “7 money stumbles to avoid,” and lists “not updating your [estate plan] and beneficiaries” as the number one stumble. The article highlights CR’s finding that 86% of respondents hadn’t updated their estate planning documents or beneficiary designations within the previous five years and then talks about situations in which that might cause problems. Kaiser Law
This New York Times article does a good job of highlighting a bad-case scenario where there wasn’t enough communication about financial affairs between a mother and her daughters. Although it can often be difficult, I almost always encourage my clients to talk with their adult children about their estate plan and their wishes. Often, we will set up a family meeting
A recent Reuters article explored the increasing phenomenon of parents delaying distribution of their loved ones inheritance – even after the parents have passed. I’ve seen this take place in my own practice – most parents are not comfortable with the idea of their children having full access to significant funds until after the age of 30. Even if the parents
For those of you who follow such things, the passing of the 2013 Tax Act – which established a $5.25M per person estate tax exemption (indexed for inflation) was welcome news for higher net worth families. But estate planning and financial professionals warn (as illustrated in this NY Times article titled “Estate Planning Remains a Moving Target Under the New Tax
An article on Wall Street Journal has this advice to give: “With Estate Planning, Don’t Forget Virtual Assets.” Failing to include provisions for virtual assets in a will could lead to real-world losses if the surviving spouse or beneficiaries are unable to access the deceased’s online accounts. Here are just a few samples of the digital assets with obvious financial value:
We do estate planning because we want to make sure that our loved ones are taken care of at the time of our passing. At the very least, we would want our wealth to be preserved and distributed according to our wishes in order to provide the ones we leave behind with financial stability. While the purchase of life insurance and