If you have a children who are minors then it is very important to name a guardian for them in your Estate Plan. You need to make arrangements so that your child is looked after properly in case both you and the child’s other parent pass away before your child reaches adulthood.

The process of choosing a guardian can be especially difficult. Your attorney may be able to guide you in choosing an apt guardian but here are some basic points to keep in mind:

Where does the guardian live?

In most cases your child would need to move where the guardian lives. Very rarely do adults relocate to look after minor children, so if you don’t want your children to have to move away, you’ll want to select someone who lives near you.

What are the religious, political and moral beliefs of the guardian?

This is probably the most important factor in choosing a guardian for your child. In the unlikely event of your death, you would not want your child to grow up with different values than your own. Guardians will have a great deal of influence over your child, so it’s important to keep their religious, moral and political beliefs in mind while making a selection.

Is the guardian responsible?

Do you think your potential guardian would love your child and look after them properly? Do you think he or she has the right parenting skills? Can the guardian balance discipline and nurturing in a way that will work for your child?

How old is the guardian?

You need to name an adult who is not too old to keep up with your child. You want to make sure that whoever you choose will be physically able to take care of your child. Also, you may want to consider the fact that an older guardian might be out of touch with latest issues relating to parenting and children.

What is the guardian’s family situation?

Consider whether the potential guardian’s family situation would allow him to look after your child properly. Would he be able to give time to your child or does he already have too many personal family responsibilities?

Acceptance by the guardian

Be sure to ask the potential guardian if he would be willing to take on the job. It is no use naming someone without asking them first. Some people might not be ready to shoulder the responsibility.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Last week several senators introduced a bill to continue last year’s estate tax provisions for this year and into the future, retroactive to January 1 of this year.

This bill would reinstate last year’s $3,500,000 per person exemption from the tax, and restore the 45% tax rate on amounts over that for estates up to 10 million. The tax rate increases for estates over 10 million, with an additional surtax on estates over 50 million. It would also reinstate the full step up in basis on appreciated assets held by a decedent. Although the different provisions for very large estates, result in a high tax for those decedents, if passed, the bill would be very good news for many estates that would otherwise be taxable next year with a scheduled $1,000,000 exemption and 55% tax on the excess.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

If you have properties or cash that you wish to be handed over to one of your loved ones after your death with the least amount of legal hassle, you need to understand estate planning. Through estate planning, you can also take steps to ensure that your decisions with regard to your health care are fulfilled, especially when you are not in a state to implement them. This is not all. Apart from planning for your property and health-related wishes, you can also do the following through estate planning:

• Reduce the tax liability on your estate to the minimum
• Name guardians for your minor children, should something happen to you

Is Estate Planning For You?

Do you think that estate planning is only meant for people who have loads of cash and property? Well, it’s time to think twice and clarify your understanding of the concept of estate planning. You should consider estate planning if you own any of the following:

• Bank accounts
• Real estate
• Stocks and other securities
• Personal property, such as automobiles, jewelry, and artwork
• Life insurance policies /IRAs
• Minor children and/or beloved pets

What Do You Need For Estate Planning?

Usually people tend to put off estate planning and concentrate on more immediate matters at hand. However, this is not the right approach because you never know what life might have planned for you. A person can start estate planning when he or she is aged 18 years or more and is of sound mind. To properly plan for your estate, you should also be free of emotional stress.

While making an estate plan, you will need to put down your decisions in the form of legal documents such as a will, a trust and Powers of Attorney. The best way to go about this is to consult an estate planning attorney.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

A Revocable Living Trust is a valuable estate planning tool that’s designed to allow you to avoid probate, but there are some things that you may be surprised to learn about this popular type of trust:

1. A Revocable Living Trust will not help you protect your assets from creditors. This is true during your lifetime and after your death. Because the trust is revocable (meaning you keep control and can take back the property at any time), the law says that your creditors can get at the trust assets while you’re alive. After you pass away, assuming all of your property is in your trust, then the property will be distributed through the trust and there will be no need for probate. If you’re concerned about creditors, this may not be such a good thing. This makes no sense..a trust can file a notice to creditors and get the same 4 month period. If it does nothing, it still has protection, but the claims period is 4 years instead of 4 months. The concept here is old law that’s been changed for at least 10 yearsThe probate process offers at least a little bit of protection from creditors. When you probate a Will, creditors have a deadline for filing their claims against the estate. If a creditor misses a deadline, they lose the right to collect on the debt forever.
2. A Revocable Living Trust does not do away with the need for a Will. This may seem strange, since the whole point of the trust is to avoid probate, but if you have a Revocable Living Trust, you need a special kind of Will called a Pour-Over Will. A Pour-Over Will serves as a catch-all for any property that may have been left out of the trust before your death, and places it in the trust when you die. This way, you make sure that all of your property ends up where you want it to.
3. A Revocable Living Trust will not help you avoid nursing home costs. Because the trust is revocable and you can end it at any time, the government counts all of the trust assets as your personal assets for purposes of determining whether you’re eligible for Medicaid.

A qualified estate planning attorney can help you determine whether a Revocable Living Trust is right for you, and can help you put together a comprehensive estate plan that will help you address all of the concerns you might have.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Regular maintenance of your estate plan includes updating your Will, Trust and other legal documents that name beneficiaries. You should review your estate plan at least once a year and when major life events occur such as marriage, divorce or a new child.
Changes to these documents need to be executed the same way as the original version.

Do you have a 401K, Pension Plan, Life Insurance Policy, or other financial account? You must maintain and update the beneficiary forms for these assets regularly to reflect any beneficiary changes. You cannot rely on your Will or Trust to transfer these assets to your intended beneficiaries upon death.

Changing your Will or Living Trust is a more complicated process than changing a Pension Plan or Life Insurance Policy beneficiary, and how you change it will depend upon how the original document is executed. To change these documents, talk to your estate planning attorney.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Do you monitor your estate plan as often as you should? Much like regular car maintenance, tuning up your estate can help you avoid big problems later.

First and foremost, do you even have a plan? Many people with little or no property assume they do not need a Will or other estate documents. But this is simply not true. Who will care for your children? Do you want your loved ones to put you on life support if needed? Not planning your estate would allow state laws, or a stranger apointed by the Court, to dictate what happens to your children, your life and your property.

Another common estate planning mistake is not considering taxes. Estate tax laws are currently in a state of confusion. Last year the laws affected estates worth more than three and a half million. This year that law has lapsed and next year the amount may revert to a previous figure of one million unless Congress decides otherwise. You must pay close attention to changes in tax laws during estate planning to ensure your estate isn’t eaten up by hefty tax bills. Of course, a good estate planning attorney will be able to advise you of the best avenues to minimize estate taxation.

Do you regularly update beneficiaries for life insurance policies and other financial accounts? Many people forget this very important part of estate planning. They also often forget to update the amount of their life insurance policies to ensure loved ones will have enough money for living expenses.

Another common mistake is not being aware of gifting laws. If you have joint ownership of any property with a person besides your spouse, that person may have to pay taxes when you pass away. You can avoid this by gifting the item to the person before your death. Each year, you can gift a certain amount of your property to loved ones without them having to pay taxes on it.

Did you know that if you and your spouse intend to leave property to your children, you may help your spouse and children avoid large tax bills by leaving this property in a Trust? At your death, the Trust would pass to your spouse who would have full control until his or her death, and then the Trust could pass easily to your children.

The best way to avoid all of these estate oversights is to speak with your attorney and update all Wills, living trusts, life insurance policies and financial accounts. Preparation now will help your family have a smoother transition later.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Many people assume that the beneficiaries named in their estate planning documents are the same beneficiaries that will automatically receive the assets in their estate. But not all assets are treated equally when the estate is distributed.

Insurance policies for example, as well as annuities or retirement accounts such as a 401k or an IRA, are transferred to a named beneficiary no matter what your Will says. Because of this, the beneficiary named in the policy or retirement plan will be the one to receive the proceeds, regardless of who might be named in your Will or living trust.

How do you make sure that the intended person gets the money they deserve from your insurance policy?

You should coordinate your retirement plans and life insurance policies with your estate plan. If a change is made after your estate plan is drafted, the beneficiary must be changed on a change of beneficiary form too – simply updating your Will is not enough.

You should also note that most of these forms allow you to name Primary and Secondary beneficiaries. The Primary Beneficiary is the person(s) who should receive the proceeds – Secondary Beneficiaries are treated as “backups” in case the primary beneficiaries die before you do. Please be aware that there may be different income tax results depending on whom is named.

To ensure that your life insurance policies and retirement plans are coordinated with your estate plan, consult a qualified estate planning attorney.

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Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Actor Gary Coleman died last week at age 42 after falling at his home. The memorial service that was planned for this past weekend was cancelled and his body remains in a Salt Lake mortuary. His estranged parents and ex-wife all asserted rights to make medical decisions for him, including funeral arrangements.

According to reports, his former agent says Mr. Coleman who was a Utah resident at the time of his death has a CA will from the 1990′s and his former co-star says he has new paperwork. No one has mentioned a Health Care Directive which would have easily named the person he wanted in charge. So the wait begins for the Court proceedings to start…and if for some reason, the Court finds both wills invalid, his estate can pass under the laws of intestacy to his parents from whom he was estranged for over 20 years…

While you wait to hear the latest, call your own estate attorney and make sure your plan is up-to-date!

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.

Blog posts coming soon.

Armstrong, Fisch & Tutoli is a member of the American Academy of Estate Planning Attorneys.