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]]>So, too, is effecting business succession planning that optimally carries out your wishes and sets up the entity you have worked so hard in creating for long-term success in following generations.
Asset management and asset protection are just as important -- if not more so -- in the realm of a family business than they are concerning other aspects of an estate administration plan. Following are a few considerations to heed where succession planning regarding a business is concerned.
]]> First, it is flatly easy to underestimate the number of things that need to be considered when passing along a business, as well as the time required to implement important changes and processes.An initial consideration of overwhelming importance is the necessity to find a truly qualified and experienced adviser to work with, namely, one that knows business and has demonstrated command over succession issues, effective taxation strategies, valuation methodologies and criteria, rules regarding the transfer of business ownership, and related matters.
A proven professional will ensure that business succession is a matter that is thoroughly and thoughtfully contemplated. That means due consideration of all important aspects, without decisions being made in a disordered and rushed matter. The adage "good planning is good business" is absolutely true and readily highlights this converse business fact: Bad planning -- that is, decision making that is based on incomplete information, a lack of understanding concerning planning tools, wealth preservation and smart succession strategies -- all but ensures that the future will not be something a business owner desires.
For virtually any business owner who is thinking about succession planning, the time to start taking proactive action to implement a sound plan is now. An experienced estate planning and business succession attorney can outline the terrain and identify important considerations and strategies that make the best personal sense for ensuring business continuation and financial stability.
Source: WealthManagement.com, "The myths and realities of succession planning for small businesses," David Scott, May 6, 2013
]]>A charitable trust in particular can be of great utility to families with specialized needs, such as the need to minimize estate and gift taxes or, alternatively, to simply help plan optimally when contemplating income taxes.
]]> Two types of charitable trusts in particular -- each with two beneficiaries -- might work especially well for some families. Although both have some similarities, they are often employed quite differently. They are called charitable lead trusts (CLTs) and charitable remainder trusts (CRTs), respectively.Both trusts have charitable and noncharitable beneficiaries. As for a CLT, the so-called "lead" beneficiary -- the chosen charity -- gets what are customarily annual payments over the stated trust term, with the noncharitable beneficiary -- often a donor's children -- getting the remainder upon term expiration. A CLT can be a well-chosen vehicle for cutting back on or eliminating altogether estate and gift taxes.
A CRT, conversely, is less focused upon cutting gift and estate taxes and more centered on assisting a donor with income tax planning, especially in the case where appreciated property is involved. Unlike a CLT, the lead beneficiary is usually the donor or the donor's spouse, with the remainder going to a designated charity at the end of the trust term. This enables the donor to avoid payment of income taxes and to also get an income tax deduction for whatever the charity receives.
Trusts can be extremely flexible and creative tools for families with specialized financial needs. An estate planning attorney with proven experience in working with trusts can answer questions and help ensure that what makes the most sense is identified and duly put into place.
Source: Sterling Foundation Management, "Planning with charitable lead trusts and charitable remainder trusts," undated
]]>That is the bottom-line advice given by one adviser, who counsels that a sound and effective estate planning scheme makes sense for virtually every family, regardless of where it resides on the wealth spectrum.
Although different families will of course have varied needs, a workable plan that has duly contemplated and provided for contingencies is the ultimate tool for reducing uncertainty, preserving assets and providing for future peace of mind.
]]> Foregoing that exercise or only attending to it marginally, or failure to revisit matters occasionally with an experienced estate planning attorney and making necessary adjustments, can have both material consequences that are seen immediately and rippling effects for generations.For some families, concerns might center most fundamentally on the exemption provided for in the federal tax on estates, and the tax rate above that threshold. They might also be concerned by exemptions and taxes associated with gifting. Changes flowing earlier this year from the newly passed American Taxpayer Relief Act are relevant to such considerations and can be explained by a proven asset-protection attorney.
For other families (the great majority, for whom the $5.25 million threshold exemption on estates and the 40 percent tax rate above it are simply not relevant), many other considerations are quite valid and should be followed through on.
Those include making a will and keeping it updated to reflect changed family circumstances. Ensuring that all beneficiary designations are correct for instruments such as life insurance policies and retirement accounts is also of great importance. So, too, can be an understanding of when and how one or more trusts might be optimally employed to preserve and hold assets, provide for family members and ensure maximum privacy.
Many other factors can also apply in a given case. An estate plan that focuses upon and appropriately responds to all relevant considerations can be an inestimably important tool for promoting family interests now and in the future.
Source: Source: The New York Times, "Estate planning remains a moving target under the new tax law," Paul Sullivan, April 26, 2013
]]>Other factors, too, play into estate planning considerations, such as the potential sense it makes to establish trusts, deal with retirement funds, manage Social Security benefits, and deal with a variety of health-related issues.
]]> In short, there can be multiple and highly interrelated considerations that cumulatively affect asset management, investment decisions and wealth transfer objectives.One such factor centers on the family home, most specifically, whether it has been fully paid, as retirement nears or becomes reality for couples. It is not hard to see why that can be such an immediate and important concern after a career has come to a close. Having a continuing and sizable payment to make -- or not -- each month has a great financial impact in most cases.
An overwhelming majority of American couples owned their homes outright a generation ago, but government statistics indicate that things have changed greatly over recent decades. According to a Federal Reserve survey, more than 40 percent of households nationwide where the head was older than 65 were still making house payments in 2010.
That can have a material impact, obviously, on wealth and finances, making the need for sound financial planning even greater than it might have been years ago.
An experienced estate planning attorney can be an invaluable resource in helping individual and family members understand their options and make choices that fully promote their best interests. Comprehensive estate planning takes into account all the factors relevant to a family, including home equity.
Source: St. Paul Pioneer Press, "What paying off a mortgage (or not) means to retirement," Mara Lee, April 20, 2013
]]>Medicaid is flatly a present or future reality for millions of American seniors, being the government program most centrally involved with nursing home care and many other health-related services for aging individuals and family members.
]]> As has been noted by many commentators, nursing home care is a subject that many people simply do not think about. For those who do, timeliness if often a factor that is not sufficiently appreciated. Many people incorrectly view Medicare as the vehicle that will help them finance long-term care, but it is in fact Medicaid that is the key resource in this area.It is important to begin planning as soon as reasonably possible when Medicaid considerations surface. Eligibility requirements must be met and, because the program is taxpayer-funded, a comprehensive financial review process is undertaken in which eligibility verification must be ascertained prior to eligibility being established.
That process requires a scrutiny of several years' worth of financial investments, savings accounts, real estate transactions, gifts and other factors.
A proven estate planning attorney can be an invaluable resource for helping to identify assets and, in many instances, enabling them to be restructured or spent down so that they continue to be protected in the future while not jeopardizing eligibility for Medicaid.
Source: Pittsburgh Post-Gazette, "Elder law: Approach Medicaid nursing home coverage with care," Julian Gray and Frank Petrich, March 24, 2013
]]>That fact is not so much a warning to heed as it is a clarion call to act for most families. Costs do rise, and that is a simple reality that must be accounted for in contemplation of elder family members and their care as they grow older.
Things can of course become worrisome for many individuals and families, but proactive engagement with the process and sound estate planning in a timely manner can do much to instill confidence and alleviate concerns regarding loved ones. Consultation with an experienced and empathetic elder law attorney can be both an instructive and, ultimately, money-saving communication for families as they seek to understand and best employ care-planning strategies that are in the best interests of older family members.
]]> In its just-issued 10th annual "cost of care" report, Genworth Financial, a national insurer that sells long-term care policies, confirms that nursing home costs have progressively increased over the past decade. That fact naturally begs the question: How can a family best ensure that a loved one's senior years will be adequately provided for and as stress-free as possible?Every family is of course a unique unit, and each family is differentiated by its wealth, income, special needs and the singular circumstances that might surround it. A proven estate planning attorney well-versed in elder law will take an exacting and comprehensive look at all relevant family factors and help members prepare for and do what makes the most sense.
That can include preparation of advance directives, creation of various planning documents (e.g., wills, trusts and other instruments), Medicaid planning, guardianship considerations and many other things.
Preparing for the future through sound and tailored estate planning can help ensure confidence as loved ones near retirement or otherwise approach their later years.
Source: New York Times, "Long-term care costs rising," Ann Carrns, April 9, 2013
]]>Stories concerning celebrities can sometimes be instructive in such a context, in large part because of their dissemination to a wide audience. A media report concerning the family law matter of a well-known person can often be of interest for far more than the simple tabloid value it holds for some readers. Indeed, it can serve to instruct in a meaningful way and highlight legal concerns and issues.
]]> Such is the case surrounding recent developments concerning celebrated actor Mickey Rooney. Rooney, now 92, was given court protection in 2011 when a Los Angeles Superior Court probate judge named his attorney as his conservator. The action was taken amidst charges that Rooney's stepson and the stepson's wife were financially and verbally abusing the actor, who was essentially powerless over most aspects of his life.The conservator recently sold Rooney's home, splitting the proceeds between Rooney and his estranged wife, following news that Rooney wanted that outcome and needed to move to a more accommodating residence.
Rooney's conservator claims that the actor's stepson and wife are guilty of elder abuse against Rooney and liable for breach of their fiduciary duty toward him and of financial fraud.
Source: San Marino Tribune, "Mickey Rooney's home approved for sale," March 4, 2013
Of central noteworthiness is that the new report -- issued by the national Centers for Disease Control and Prevention (CDC) -- varies materially from previous analyses in its estimate of just how many children in the United States have autism.
The core conclusion of researchers is this: Many more youngsters than customarily perceived have the disorder, which brings about the necessity of new thinking about special needs planning and the long-term care of potentially millions of children with moderate to severe autistic symptoms.
]]> The new findings supplant research conclusions from a 2008 study, which posited that about one in eighty-eight school-aged children have autism. Government researchers from the CDC now say that the earlier numbers underestimate the incidence of the disorder, with a more accurate assessment being about one in fifty children.The reappraisal is likely to be of material significance across a wide spectrum, including how autism will now be perceived vis a vis other disorders for limited government funding. The CDC's estimate equates to at least one million children having the disorder.
The new report might also draw attention to the need for many families to pay closer attention to ensuring the long-term care of their loved ones with special needs, through a guardianship, trust or other estate planning instrument.
Houston-area and other residents throughout Texas can obtain further information and advice by contacting an experienced estate planning attorney.
Source: AP, "Health officials: 1 in 50 school kids have autism," Mike Stobbe, March 20, 2013
]]>Reynolds is a Seattle mother of two young children. She is also a widow and sole caregiver following her husband's unexpected death in a bicycle accident. After that life-changing event for the family, Reynolds was left to confront what was to her a bewildering assortment of questions and forms relating to finances and assets, something she and her husband had never considered during marriage or remotely prepared for.
Most centrally, those considerations focused on estate planning, a subject that Reynolds felt woefully inadequate to tackle. The couple had no will. Reynolds was suddenly hearing terms like living will, probate and power of attorney. She felt lost.
]]> "I was just overwhelmed by this pile of questions about legal stuff and finances and probate courts," she recently told a reporter in a media profile.Although daunted, Reynolds eventually got through the process and emerged on the other side with increased knowledge and a strong desire to help others take a proactive approach to estate planning. She has created a website to get people started that contains a checklist of basic concepts and ideas that people should be timely focused upon.
From all indications, Reynolds comes across as a thoughtful and civic-minded person intent on public service. Moreover, and as she notes, her website subject matter is especially relevant to the huge baby boomer population that is now in or quickly approaching retirement.
Reynolds duly notes that her site is based solely on her personal experience and is essentially geared toward getting people to think about the estate planning process. She explicitly notes that it does not constitute legal advice.
Every estate plan is unique, with considerations based on the singular components of a given individual or family. Effective planning tailored to those needs can be achieved through close consultation with an experienced estate planning attorney.
Source: NPR, "From grief comes a mission to make estate planning less daunting," NPR staff, March 12, 2013
]]>Given the cost of medical care in the country, the question virtually asks itself: How can an individual or family help to ensure that a loved one will be able to always receive adequate and respectful care? What type of care planning will bring about that result, and how does a family even begin to start the process?
]]> How long-term care services are paid for has been, states one media commentator on the subject, "a thorny issue for patients, families and federal and state policymakers for decades." For some families, red tape predominates, and there are mountains of forms to deal with.In fact, the Obama administration has called for a special commission to examine long-term care and make recommendations to Congress, but the15-member panel has yet to be finalized. When it is, members will be confronted by a daunting array of complexities, including funding duties spread across municipal, state and federal agencies, as well as troublesome questions regarding the ability of Medicare and Medicaid to play strong ongoing roles in the area of skilled nursing care.
Long-term care planning encompasses a cluster of issues centering around finances, health care decisions, living arrangements and estate distribution. An experienced estate planning and elder law attorney can be a strong resource for identifying relevant concerns, protecting assets and helping a family fully promote the best interests of an aged or disabled loved one.
Source: ModernHealthcare.com, "Long-term tab," Jessica Zigmond, March 9, 2013
]]>Now, shortly six-plus years after his death, Brown serves as a reminder that the lives of celebrities often transcend the glaring details that boldly fan out from tabloid publications. Often, celebrity stories -- especially because they are widely read and considered -- can be instructive in important ways.
]]> That certainly seems to be true in Brown's case. Obviously, the talented entertainer left behind a sterling legacy of musical accomplishments. Additionally, though, his name remains front and center in news stories for something that is centrally relevant to millions of people across a non-musical front, namely, estate planning.From all indications, Brown proactively and with due consideration attended to his estate. He executed both a will and charitable trust and was quite explicit about his wishes. He provided for his adult children and grandchildren's schooling, and he evinced a strong desire to benefit disadvantaged youths and adults with their educational needs.
Somewhere along the line, ruled the South Carolina Supreme Court recently, Brown's desires were sabotaged and circumvented. The Court set aside a settlement secured by that state's attorney general following a challenge to Brown's will by his heirs, calling it "a total takeover of Brown's estate." The Court particularly found that Brown's wishes in regard to his charitable trust were being undermined unilaterally by the attorney general, who had stepped in pursuant to his role to safeguard charitable trusts.
Commentators on the matter say that Brown actually did many things right in his planning, having created "a detailed and specific set of documents."
What he failed to do, though, was to pay continuing attention to changed circumstances that occurred following the execution of his estate plan. He did not update documents or execute amendments that would have overcome challenges and helped to secure his wishes.
The Brown matter, as noted by the commentators, "underscores the importance of working with the right estate planning attorneys."
Source: Forbes, "Court scolds SC attorney general for hijacking James Brown Estate," Danielle and Andy Mayoras," Fe. 28, 2013
They are certainly gaining traction now, though, as an aging elder demographic and tough economic times have resulted in increasing numbers of younger family members seeking to assist their parents and older loved ones with their finances and to make ends meet.
]]> Concerned family members with the means to help should immediately know these two things: There are a number of creative and flexible ways in which to help, and the assistance of an experienced estate planning attorney is virtually required to take fullest advantage of them. Skilled counsel in this area will pay off literally and help a provider optimally minimize taxes.Following are some general things that children can do in the area of parental care, with the caveat, again, that proven estate planning counsel can help identify and implement what makes most sense in a given case. This bears noting: Every family is unique.
The above options are merely a few among many and are presented in simple and abbreviated form here, with, again, each of them containing detail, complexity and implications that should be fully understood through discussion with an estate planning expert.
The bottom line: There are a number of ways to help older family members, and structuring giving with due thought given to taxation and related matters will make it optimally powerful and save money at the same time.
Source: Wall Street Journal, "Paying them back," Julie Steinberg, Feb. 14, 2013
]]>The reasons for that, whether in Texas or anywhere else in the country, are certainly variable. One person might mistakenly believe that a will provides for every contingency. Another might feel overwhelmed and procrastinate or entrust the important matter of wealth protection to an individual or business entity poorly equipped to handle it.
]]> As noted in a recent media article on estate administration and probate, being proactive and smart in this area is vitally important to ensure the achievement of financial goals and promote family security over the long term.Fortunately, realizing that aim is far from insuperable with the help of an attorney commanding experience over both the "tax" and "non tax" considerations of estate planning. A proven lawyer in this area will probe deeply to understand the needs of an individual and family, with an estate plan being precisely tailored to fully promote the best financial interests of a client.
An effective estate plan will encompass close scrutiny of these and related considerations:
A careful estate planning attorney will also make sure that all other applicable concerns are addressed and properly attended to. These can include the need to periodically review assets held in a revocable trust; ensure that documents such as Health Care Powers of Attorney and Durable Powers of Attorney are in place to address incapacity before death; and incorporate the flexibility into trust provisions necessary to ensure that they will remain viable as time goes on and circumstances change.
Source: WRAL Tech Wire, "Top 10 'non-tax' estate planning recommendations," Stuart B. Dorsett, Jan. 2, 2013
That comment comes courtesy of Suzanne Cobb, a director at the Dallas-based Senior Source, a nonprofit organization that serves elderly Texas residents.
What Cobb is referring to is the increased likelihood for the older-aged demographic to be victimized by fraudulent schemes and unethical behavior that targets members' wealth and seeks to undermine their decision-making capacity over important personal matters.
]]> Those important personal matters range widely from estate planning and advance directives concerning health care to asset distribution and the creation of trusts and wills. Relevant considerations might further encompass the execution of powers of attorney and issues concerning long-term care, guardianships and alternative arrangements focusing upon personal autonomy.In short, there is certainly no dearth of issues for many people to think about as they approach or enter their retirement years, and focused planning with the assistance of a proven and caring elder law attorney can go far toward securing confidence and stability at such an important time.
A recent media article's reference to elder abuse and exploitation underscores the importance of solid long-term care planning. As the article notes, analysis conducted by the Texas Adult Protective Services agency reveals that about 60,000 meritorious complaints of elder exploitation were received by the state last year.
That sobering number puts a glaring spotlight on a widespread problem and highlights the need of many elderly persons to have well thought out and drafted plans in place to address financial matters, health care decisions, estate distribution and residential plans.
An experienced estate planning attorney can be an invaluable asset for ensuring those critically important goals.
Source: The Dallas Morning News, "Texas Seniors Deserve To Be Protected," Jennifer Nagorka, Jan. 31, 2013.