B.H. GREENBERG & ASSOCIATES

Why Estate Plans Are All Different When the Process is the Same!

2012-02-10T13:55:00.001-07:00

Every estate plan is different while the process of estate planning is the same for every client. Why is that?

Every estate plan for every client is different. The reason is simple actually, it's because every client is different. This is the most important and compelling reason that estate planning and Wills are not commodities that can be purchased off the internet.

Every client presents a unique situation. Each client's assets and property are different and each family is different as well. Due to these differences, a proper estate plan must be individually designed and drafted for each client. Now this is not to suggest that there aren't similar situations, but to emphasize that each family and each client is unique.

While each client is different resulting in each estate plan being unique, why is the estate planning process always the same. I was reminded today by my friends at the American Academy of Estate Planning that every estate planning attorney who specializes in estate planning has an estate planning process that applies to every client.

Today, I'll describe the estate planning process that I have used with clients for many years. We follow six steps in our process:

1. The Estate Planning Assessment. In the assessment we meet with the client(s) and do an in depth analysis of family and assets to develop recommendations for the specifics of that client's estate plan.

2. Estate Plan Design and Drafting. This second phase involves converting the design of the plan into actual documents: Wills, Trusts, Powers of Attorney, etc.

3. Estate Plan Review. Once the draft documents are created, the next step is detailed review of the drafts with clients. This step can involve several meetings, but always results in final documents being created and made ready for signature.

4. Estate Plan Execution and Signing. This separate step involves the signing, witnessing and notarizing of all the final estate plan documents.

5. Asset Titling and Beneficiary Designations. After the plan documents have been signed and executed, it is necessary to synch the client's assets and beneficiary designations with the estate plan. This is critical because how an asset is titled controls over the terms of the plan itself. We want to make sure that the assets are titled correctly for the estate plan to work the way it is designed.

6. Estate Plan Reviews and Updates. Since laws change periodically and families change as well, it is necessary to review estate plans with clients periodically. In these reviews, we can determine if any of the documents are no longer valid or proper and whether titles to property have gone out of synch with the plan. We also re-check on the plan design to ensure it still matches client objectives.

The six step process is always the same with every client, even though every client's estate plan is different.

Bernie Greenberg

How Are Your Resolutions Coming?

2012-01-26T08:34:00.001-07:00

Resolutions: We Start the Year with Them, How Are Yours Coming?

One of the most common New Year's Resolutions is to finally do a Will or estate plan. Because of this, there is always an uptick in calls I receive from people with questions about Wills. Here are several of the more common recent questions with my responses, maybe you've thought about similar questions too.

1. How much do Wills cost?

This question is more complex than you may think since each Will and each client is different. There are many different kinds and varieties of Wills, each one, if done properly, is custom designed for each client. The only way to learn about the costs of a Will or estate plan is to have an estate planning assessment with an attorney who specializes in estate planning. This assessment meeting should be low cost and you should receive credit for the cost of the meeting against the fee for doing the Will.

2. Can't I just do my own Will on the internet?

As many of you know already, I have written several articles on this very topic! Yes, you can do your own Will, but in most cases, you will be disappointed with the result. The reason that internet and fill-in-the-blank Wills don't work is that they are not designed for any one person. They are generic and non-specific, the reason they can apply to everyone is that they don't apply to anyone!

Additionally, do it yourself documents carry legal consequences that can create traps for you and your family. For the most part, you will be better protected and your family will be safer if you have your documents prepared for you by a qualified attorney who specializes in estate planning.

3. Is a Will enough or do I need more?

A Will alone is never enough for ANY client. This is because your Will is valid only if you die. Your Will does NOT apply if you are sick, or become disabled or incapacitated. This is why I recommend that every client add the following documents, at a minimum: a)Durable Financial Power of Attorney; b)Durable Medical or Health Care Power of Attorney; and c)Living Will. These additional documents are necessary to protect you if you are incapacitated because your Will does nothing while you are alive.

4. I have a Will already, how do I know if it is current?

Any Will or estate planning document should be reviewed periodically. You should plan on doing a review with your attorney every two years, or if something significant happens in your life. Examples include: births, deaths, divorces, marriages, moving to another State, changing careers etc. The best way to think about such changes is if the change is significant, it's time to review your Will.

Additionally, the laws change from time to time and these changes can cause potential problems with your documents. If you read or see something about changes in the law, or receive a notice from your lawyer about them, then it's time to schedule a review meeting.

If you have a question not addressed here, or simply want to join our conversation about Wills and estate planning, just let me know, all questions are welcome!

Thank you for your interest!

Bernie Greenberg

You've Resolved to Get Your Will Done, Great! Now What? 4 Steps to Follow Now

2012-01-04T11:28:00.001-07:00

You've Resolved to Get Your Will & Estate Plan Done-Now What? Here are the 4 Steps to Follow to Get the Job Done

New years are great for resolutions and one of the most popular ones is the decision to finally complete your Will and estate plan. But how do you get started and what steps do you take? Here are the steps to consider to make sure you get the job done right and on time.

1. Make an appointment with an estate planning attorney.

Use someone who specializes in estate planning. There are articles below about how to select the right attorney for you and your family. Do a thorough initial meeting. I call this the Estate Planning Assessment. Leave with a clear idea of what you should do next.

2. Follow up by proceeding with your plan.

It won't help to get the recommendations of the expert and then to not followup. So after you have the recommendations, proceed by scheduling whatever meetings are necessary to complete your plan. You should be complete in several days or just weeks depending on your particular situation.

3. After you sign your plan and all documents, complete your titling and beneficiary designations.

Completing your Will and estate plan is great, but those documents won't work as designed if you have titles and beneficiary designations that are not linked to and synchronized with your plan. This step is critical to your plan working properly.

4. Remember to review your plan periodically.

Even the best plans need some periodic attention. Laws change, family situations change and our assets change. By doing periodic reviews, you can keep everything current and up to date.

By following these four steps, you can protect yourself and your family with the proper estate plan and Will. Good luck and let me know if you have any questions.

Bernie Greenberg

Experience Pros Radio Show

2011-12-21T15:52:00.002-07:00

The Experience Pros Radio Show

I am honored to appear on the Experience Pros Radio Show! I'll be discussing several estate planning questions.

Here are the details:

Thursday, December 22nd 2011

10:20AM Mountain Time

You can find the show here: On the radio dial, it's AM 560.

Streaming on the internet, it's www.560TheSource.com

I hope you'll join the show, listen in and even call in and participate!

Bernie Greenberg

FAQ About Estate Planning

2011-12-05T12:49:00.001-07:00

Frequently Asked Questions About Estate Planning

We are always taking questions about estate planning here at our firm, and also do so on social sites like facebook; Google+; twitter and linkedin. You can connect with us there by clicking on the Contact Us tab above. From time to time, I like to publish some of the recent questions I have received so you can review them and determine if the information is helpful for you. Here are several recent questions and answers:

1. What is estate planning?

Estate planning is a catch all phrase that refers to legal arrangements you can make, either through legal documents such as a Will, or to contract arrangements you can make such as beneficiary designations on accounts or property. The planning portion of the phrase refers to a thoughtful analysis of your situation, needs, assets and goals to develop and implement a plan that is customized for you that involves both the legal and title arrangements.

There is no such thing as a "one size fits all" estate plan. Everyone's situation is different making their estate plan different as well.

2. Do I need an estate plan?

This is one of the most frequent questions I hear. The answer is, "it depends". Now, that's not a typical lawyer answer at all. It really does depend and it requires what I refer to in the first answer above: a thoughtful analysis of your situation, needs, assets and goals. Without this (we call this an estate planning assessment)it is not possible to provide each person with proper answer.

By doing the analysis one client at a time proper recommendations about the specific estate planning necessary to accomplish a client's goals can be given. So, to answer this question, ask yourself some questions. If you answer yes to any of these, then you should consider having an estate plan. Ask yourself:

1) Do you have minor children or a disabled child?
2) Do you care who makes decisions for you if you are incapacitated or controls your estate if you die?
3) Do you care where your assets go if you died suddenly in an accident?
4) Do have life insurance and other investments?
5) Is your property in more than state, or does it consist of operating businesses or farm or ranch property?
6) Are you concerned about keeping assets and estate private?
7) Is your estate near or over the estate tax exemption?
8) Are you concerned with protecting family property from future creditors?

There are other circumstances any client may have that would give rise to a need for estate planning, but a good place to start is those 8 questions. If you can answer any of them with a "yes" then you should schedule an estate planning assessment for yourself.

3. Since the estate tax exemption is so high, I don't need to do anything right?

Unfortunately, this is wrong. The level of the estate tax exemption keeps changing as Congress has decided (for whatever reason) to use the estate tax exemption as part of a political game. In fact, the current exemption may only be in place for 2011 as a new proposal to decrease it starting in 2012 was introduced just last week in Congress.

Relying on the government or Congress to do your estate plan for you is a risky proposition and we don't recommend it to any clients. A good rule of thumb to remember is: what the Congress gives one year can be taken away the next. With the frequency of changes to the estate tax laws coming from Washington, we recommend that clients focus on estate planning arrangements that will be workable for their family regardless of that Congress does. This is not always easy to accomplish for all clients and does require that thoughtful analysis I refer to above.

If you have a question that you would like our input on, don't hesitate to give me a call at 303-730-7100, send me an email, or just make a comment here. I hope you join our conversation and we look forward to hearing from you. Thank you for your interest.

Bernie Greenberg

A Gift For Thanksgiving? How About the Gift of Being Current?

2011-11-22T12:59:00.001-07:00

The Gift of Being Current

As an estate planning attorney, as you might guess, I think a lot about estate planning. Recently, two experiences with clients reminded me of how important your estate plan is to protecting you and your family. The experiences of those two families is about the importance of having a current plan rather than one that is old and out of date.

Current Powers of Attorney

The first case involved a client who suffered an illness that left them incapacitated. The issue we faced is that the client's documents did not have current HIPAA language. This means that having the right family members with access to the client's doctors took some work. First lesson: make sure you have current Powers of Attorney that contain the appropriate HIPAA provisions so that the family members you want can speak to your medical providers should you suffer an incapacity.

A Current Will

The second case was more problematic. This client had not updated their Will concerning who would be the Personal Representative (that's the Executor in Colorado). When the client died two months ago, the family was not pleased that someone no longer involved with this client was named as the PR. We were able to solve this sticky problem with a series of meetings and negotiations. Lesson two: keep your Will or estate plan up to date.

What started me thinking about this is the holiday season. The holidays are when most people think the most about family (except some the stores that are forcing employees to work on Thanksgiving; a subject for a different article)and is always my busiest time of the year. So when you are thinking about your family this Thanksgiving, you might also think about whether your documents, Powers of Attorney, Will or estate plan are up to date and current. If not, how about that for a way to remember your family? Protect them and yourself with current documents.

And of course, if you don't have these documents yet, the holidays are probably the best time to get started.

What do you think? Please join our conversation with your comments, thoughts or questions. As always, thank you for your interest.

Bernie Greenberg
303-730-7100

The Top 3 Reasons To Not Do Your Will Online

2011-11-16T09:10:00.001-07:00

There are many reasons to not do your Will or estate plan online. Here are the top three.

Many people want to have a Will or start their estate planning. However, one of the worst ways to do so is to try and do your Will online. This is definitely an area where the illusion of ease and simplicity can come back and hurt you and your family.

Here are the top three reasons to not do your Will online:

1. Online Wills Don't Work.

There's not much reason to do something online if it's not going to work for you. Generally, online Wills don't work and they don't work because of the reasons that the document is online in the first place. Read on.

2. Online Wills Are Overly Generic.

In order to make a document apply to millions of people simultaneously, the document must be built and structured extremely generically. In other words, having apply specifically to you takes work, the kind of attention that you get only with a qualified estate planning attorney and not online. These documents are full of traps for the unwary and if you don't have advice, how can you be sure of avoiding those traps?

3. Online Wills Fail to Comply with State Law.

Due to their generic nature, lack of planning and expert advice, most times online Wills fail to comply with even the most basic requirements of state law. If the Will fails to comply with state law, the Will itself fails. Moreover, the primary supplier of online documents, legalzoom has been sued in several states for a variety of state law violations. I have always failed to understand why people would think of dealing with a company like that which doesn't serve the interests of it's customers.

There are many more reasons to not do your Will online, but these top three should be considered by everyone. Given that you can do your Will with expert advice for about the same investment, consider that approach first.

Let me know if you have questions or comments and please join our conversation. Thank you as always for your interest.

Bernie Greenberg

Starting Your Estate Plan is Easier Than You Think

2011-11-08T11:10:00.002-07:00

The phrase estate planning can be intimidating to some, but getting started is easier than you may think.

Are you put off when you hear about estate planning? It's in the news, on TV and all over the internet. Many people gt intimidated when they hear those words, but there's no reason to fear or avoid getting started with your estate plan. Let's discuss just how easy it can be to get started.

First, the words, estate planning. Those words mean something different to everyone, but all they really mean is creating certain arrangements for your assets, property, insurance, IRA, etc. and for some creating a Will, Powers of Attorney and a Living Will. For others it can also involve creating trusts and focusing on estate tax planning. In fact, you may have already done some and you don't remember.

For example, if you have some insurance, you probably named a beneficiary. Perhaps the same with an IRA. Those beneficiary designations represent a form of estate planning. Perhaps you got a Will from military service, or some other source. Again, you have done some estate planning.

So, what about getting started and why would I suggest it's easy? Well, if you want to have a simple plan, then just make sure your beneficiary designations say what you want, especially if you haven't looked at them in a while.

Second, in a State like Colorado, you can use POD (Pay on Death) or TOD (Transfer on Death) beneficiary designations to direct bank accounts or brokerage accounts to the beneficiaries you want. This represents a probate-free transfer of the bank or brokerage account to your intended beneficiary and you don't need a Will to accomplish this.

Moving to the next step could involve protecting yourself with Durable Powers of Attorney and considering a Will. If your net worth is significant, you might also look at estate tax issues.

So, when you approach it from this direction, estate planning can be simple and not intimidating.

What do you think? Please join our conversation and leave a comment or feel free to ask any questions that you may have. You can also call our office or send me an email, I answer them all.

Thanks for your interest.

Bernie Greenberg

How To Review Your Estate Plan at Home

2011-11-01T13:28:00.000-06:00

Before you visit with your attorney, do you know what to look for in your documents? Here are some suggestions:

We provide all our clients with a client notebook containing all their estate planning documents. So you have this notebook, but how should you use it?

Here are some useful tips to make the notebook work for you:

1. Take the notebook out and read through it twice each year.

2. Pay attention to the provisions about your decision makers, how you are providing for your kids and/or grandkids and who you have in control if you become incapacitated or when you die.

3. While you read these sections, ask yourself if what you are reading matches what you now want to have happen. If you see an issue, it's time to call our office and schedule a review.

Here is an example: We had a client who recently had one of his agents resign from the Power of Attorney. When the client saw who he had named as an alternate, he knew it was time for an update. That's what you want to look for. Each time you look at your documents at home, look for these kinds of issues so you can make sure that your documents do what you want them to do.

Let me know if you have any questions concerning these issues. Thank you.

Bernie Greenberg

Scam Alert: The Fake Referral Scam

2011-10-27T12:20:00.000-06:00

Scam Alert: The Fake Referral Scam

In our continuing and unfortunately never-ending mission to expose scams, here's a new one called the Fake Referral. I found out about this scam this morning and if you know about it, you can protect ;yourself. Scammers and criminals are getting more and more clever in their efforts to steal your money. Here's the latest one, the Fake Referral Scam.

Here's how the Fake Referral Scam works: Someone claiming to be a financial planner etc. calls you and says "so and so referred me to you". Sounds legit, right? Well it isn't because that is not how professionals make referrals. Don't fall for the Fake Referral Scam. Professionals, like me, make referrals differently. If a client asks me to refer them to an accountant for example, I will provide my client with several names of accountants that I trust. I will never call the accountant and give them a client's name and number.

Tips to Protect Yourself from the Fake Referral Scam:

1. Get referrals from the referring professional directly.

2. If you get a call like this, either hang up, or call the professional who supposedly has made the referral and ask if they did so.

3. Write down the callers name and phone number and consider referring the caller to the proper authorities.

If you follow these three suggestions, you can avoid this latest scam, the Fake Referral Scam.

Let me know what you think and please join our conversation. Thank you as always for your interest.

Bernie Greenberg

Banging the Estate Planning Drum

2011-10-24T16:52:00.001-06:00

Many people wonder why I'm always talking about estate planning. Well that's easy. Estate planning is one of the most important gifts that you can give to your family and yourself. Through even the most basic plan, you can protect your family and yourself from disability and unplanned, untimely death. What could be more important?

Well, even though the media is constantly filled with articles about the importance of estate planning, less than 20% of people in the U.S. have even a simple Will and Powers of Attorney. Given how important protecting our families is, this is an alarming statistic.

So, to drive attention about the importance of estate planning, I bang the drum for it. Hopefully you read my posts and articles and one of them may spark your interest in this area. Do you know what would happen to your family if you were incapacitated or if you died unexpectedly? If you don't, and you want to make sure what you want to happen does, then planning your estate is for you.

So now you know why I am always posting about estate planning. Do you have questions about how this applies to you? Just ask and I'll be happy to answer any questions you might have. You can call, send me an email, or respond here. You can get all my contact info by clicking on the tab at the top of our website page at www.bhgreenberg.com and you can find me.

Thank you for your interest and I hope you join our conversation.

Bernie Greenberg

Going To Florida? Better Review Your Estate Plan First!

2011-10-20T13:07:00.001-06:00

The good news, a trip to Florida is in your plans. The other news? You may want to have your estate plan reviewed before you go!

The New Florida Power of Attorney Law

As of October 1, 2011, Florida rocked the legal world by adopting one of the strictest Power of Attorney laws in the U.S. See, Florida Statutes, ss. 709.2101-709.2402.
This new law will definitely affect you even if you are just traveling through or visiting Florida.

The new Florida requirements may make your existing Powers of Attorney obsolete if you are in Florida and get sick or injured. Clients of our firm already have compliant documents for Florida, however, if you are considering traveling to Florida, it's time for a review meeting.

How To Protect Yourself:

1. If you have a Power of Attorney, call your attorney and schedule a review.

2. If you don't have a Power of Attorney, call your estate planning attorney and consider getting one that will be compliant in your State and in Florida.

3. Make sure your Powers of Attorney do NOT contain "springing powers" as these are now illegal in Florida.

There are several articles below that provide you with information about how you can protect yourself and family with a financial and health care Power of Attorney. I encourage you to review these articles if you don't already have a Power of Attorney.

These steps can be important if you will be traveling to Florida or spending any time there at all. If you have questions about how this may affect your or a family member, please give me a call and we can discuss further.

I hope you enjoy our articles and encourage to join our conversation with questions or comments. As always, thank you for your interest.

Bernie Greenberg

Avoiding Fraud and Scams

2011-10-13T11:27:00.000-06:00

How to Avoid Fraud and Scams

Hard times seem to draw out even more scams and scam artists than normal. Scammers prey on people during hard times and when our hearts are open after disasters and calamities. There are steps you can take that will help protect you and your family.

The Attorneys General in most States have websites dedicated to helping you avoid fraud and scam artists. I will not repeat those steps here, but I do urge you to use the websites available to you in your State to get information, report fraud and learn tips that will protect yourself and family.

What I want to discuss in this article is a particularly insidious scam that is prevalent now and targeting people during these hard times. That is job scams. There are different versions of the job scam, but they are all pretty much alike. In a job scam, part time work is offered to make calls, write letters or do some kind of "research". There may be incentives offered based on calls made, or other results obtained.

The people who pursue these types of 'jobs" are looking to supplement their families' income and do nice things for their families or themselves. Here's the scam part: after work is done, the scam artist comes up with some excuse not to honor their promise to pay for the part time work. Often they will turn it back on the unsuspecting person by complaining that the results don't merit compensation, or some other nonsense.

Wrong? Yes. Illegal? Probably. A scam? Most certainly. Avoidable? Most times not because many of these scams appear in the form of "affinity fraud". Affinity fraud involves a scam perpetrated by someone you know and usually from a setting that you trust, such as church or an organization you may participate in.

To protect yourself from a job scam, consider these steps:

1. Check everything out in detail.
2. Get all arrangements for your compensation and payment of same in writing.
3. Contact your local DA's office and your State's Attorney General Office to determine if the situation is legitimate.
4. Consider part time work from a trusted company or employer. Working for friends can be risky.
5. Contact your local BBB office to check out the situation.

These steps are a good starting point to help protect yourself and your family. Let me know your thoughts on scams and financial fraud and please join our conversation. As always, thank you for your interest.

Bernie Greenberg

5 Ways to Protect Yourself and your Partner in a Domestic Partnership or Unconventional Relationship

2011-09-22T10:41:00.000-06:00

5 Ways to Protect Yourself and Your Partner

If you already live in a State that recognizes same sex marriages or domestic partnerships or other unconventional relationships, that State's laws can protect you and your partner should a disability or death occur. But not always.

Even in those States and the vast majority of other States that do not recognize these relationships, there are five ways you can protect yourself and your partner. Learning about these will help you protect yourself and your partner. What most people desire is to protect themselves and their partners against unwanted intrusion or interference from well-meaning family members or friends.

1. Beneficiary Designations and Insurance Policies

You can name your partner as a beneficiary in policies or work benefits. Doing so can prevent unwanted intrusion of others seeking to control those benefits. Also, you may want to review with your car and homeowner's insurance agent whether your partner should be added as a named insured on those policies.

You can also use beneficiary designations to allow control and pass property to your partner in the event of an untimely death. This is especially important if you are not doing any estate planning or a Will.

2. Durable Powers of Attorney

If you want your partner to be present with you during illness or incapacity and to have the legal authority to make decisions for your assets and your care, then the only way to accomplish that is by having appropriate Durable Powers of Attorney. While you can do these on your own, they are legal documents and it is usually better to have the guidance of a qualified attorney.

3. Asset Titling

How you own title to various assets, property and accounts can go a long way in protecting yourself and partner. For example, if you have an older bank account that still includes a parent on the title, then that account will not be available for your partner should something happen to you. Checking and confirming all titles is crucial to making your wishes happen.

4. HIPAA Authorizations

If you are not going to have Durable Powers of Attorney, then consider having your partner as your designated HIPAA Personal Representative. This will permit your partner access to you if you are incapacitated and if properly drafted permit your partner to make decisions for you. Again, this helps to avoid unwanted intrusion or interference by others.

5. A Will

If you want certainty about what will occur should you die unexpectedly than you should consider having a properly drafted Will. The Will can solve many problems for you such as who your Executor will be and cover how your want your property distributed. In States that do not recognize unconventional relationships, this can make all the difference between the result you want and immense heartache for your partner.

If you combine these five ways, you can ensure that you and your partner will create the result you want in the future. Let me know if you have any questions about any of these and how they might apply to your situation.

Thank you for your interest and attention.

Bernie Greenberg

Tax Reform: Tax the Rich or Class Warfare: Isn't it all Just Politics?

2011-09-20T13:54:00.001-06:00

Tax Reform, Tax the Rich or Class Warfare: Isn't it all just politics?

The politicians are at it again, this time in the supposed effort to reform our tax system and reduce the deficit. But it all smells like politics all over again.

One side (I'm not even going to dignify each side with their desired labels in this column) says that high income earners should pay more than the 40% they pay now. The other side claims that constitutes "class warfare". To me, it's all politics.

By framing the tax reform discussion in the way the politicians have, they have created a no-win scenario for us all. Tax reform is not about giving rich people the business. It is also not about inciting emotions by pitting different income earners against each other. Tax reform has always been and should always be about simplifying the tax structure so it is understandable, simple to comply with and is not filled with hundreds of exemptions and give-aways to special interest groups.

Tax reform is not about fairness since that is a relative and subjective concept. What is fair to one group is the goring of another group's ox. Tax reform cannot focus on what is "fair" if it is to be accomplished.

Second, for real tax reform to occur, politicians MUST stop viewing our money as theirs. What we pay in taxes is our money going to the government. The system that we fund through our taxes is the system that we elect politicians to work out and decide on, not to bring our country to crisis and stalemate as they argue over their petty positions of power. In other words, asking politicians to work on tax reform is like asking irrational people to make rational decisions.

For tax reform to work, it has to occur outside of politics which today are ruled by emotions and irrationality. As long as politicians act irrationally, then it our mistake to expect them to make rational decisions. Perhaps it is simple as realizing that we don't have the right people in Washington doing the business of our country. At least, they have demonstrated they are wrong for the job over the last 3 years.

What do you think? Let me know your thoughts and comments and join our conversation. When it comes to taxes, it is your money after all.

Bernie Greenberg

Taxes: A Vexing Subject; But Whose Money Is It Anyway?

2011-08-11T13:51:00.000-06:00

Taxes: A Subject That Vexes; But Whose Money Is It Anyway?

"Oh boy, Bernie's back with more stuff on taxes." Well yes, but from a perspective that you may not have taken before. Here, I'm not going to try and teach you about taxes, we have plenty of time for that in other articles.

No, here I want us to focus on what taxes are, what their purpose in our system is, and when we talk taxes, whose money are we really talking about. So strap in because this can get bumpy.

Taxes in the news.

You have may have noticed that taxes are in the news quite a bit. And not just now, taxes are always in the news, it just seems like it's more now. Why? Why does the subject of taxes cause so much noise, commotion and controversy? Well, that's the point of this article. The controversy? Taxes involve someone's ox getting gored for the benefit of someone else. No matter how you approach the topic, because of that simple little truth, it will always be controversial.

The controversy is growing due to the country's budget and deficit crises. The so-called "Super Congress", actually a committee, must decide on new tax policy and deficit reductions in the next several months to prevent massive tax increases and budget cuts. The possibility of their success is beyond the scope of this discussion.

What are taxes?

Taxes are nothing new. They were invented the first time that someone decided they were sovereign over someone else. But for our purposes, you may remember the concept of, "rendering unto Caesar". So the simple explanation is that taxes are amounts that the government takes from it's citizens in exchange for the government and services they supply back. The quality of those services is also beyond the scope of this discussion.

In the U.S. the legislative history of our tax system indicates that the purpose of taxes is to redistribute wealth via government. That makes taxes a political animal. Again, the wisdom of this and it's historical results are not our subject today.

What are the main taxes?

While there are several hundred forms of taxes and fees that we pay to various governmental entities, the taxes I focus on here are:

1. Income taxes.
2. Capital gains taxes.
3. Gift taxes.
4. Estate taxes.
5. Taxes imposed on transfers to grandchildren or the generation skipping tax.

Let's expand on each of these so we know what they are:

1. Income Taxes.

Income taxes are imposed on your income as you earn it. You get to see these taxes up and personal every two weeks, or quarterly if you make quarterly estimates. Each pay period you can see what is coming out of your pay. In our system, we have what is referred to a "progressive" income tax. That means the more you make, the higher percentage of tax you pay. Currently, if your income is below a certain amount, you pay no taxes at all.

2. Capital Gains Taxes.

Capital gains taxes are incurred when you sell something that has increased in value. To buy that thing, remember you have already paid income taxes on the income you earned to buy the thing. Let's make the thing your home. If you sell your home and it has increased in value since you bought it (good luck with that given the recent past) then that increase is called gain. After certain exclusions, you would have to pay the capital gains tax.

3. Gift Taxes.

If you make gifts those gifts are subject to the gift tax. Dang, we can't even give something without a tax. That's right. Again after exclusions and exemptions if you make a gift, you may have to pay the gift tax.

4. Estate Taxes.

The estate tax is imposed against your property when you die if you die owning more than the exempt amount. Due to politics, these exemptions have been changing from year to year and the cause of many estate planners like myself going prematurely grey or even worse.

5. Transfers to Grandchildren or the Generation Skipping Tax.

Not believing the first four types of taxes were enough, the government decided that gifts to grandchildren or beyond the generational level of children should also be taxed. So after the exemptions available, this last tax is also imposed.

So to sum it up, you pay taxes as you earn your pay, taxes if what you own increases in value, taxes if make gifts, taxes when you die and taxes if you want to help your grandchildren and great-grandchildren. That's quite a few oxen getting gored.

The answer to my question above, about whose money is it anyway should be clear. It's your money!! We are talking about the government taking your money for it's various purposes. And do you know what all the controversy is about? The controversy is all about "fairness". What is a fair rate of tax for the government to take is also beyond the scope of this discussion. But I would sure like to hear your opinion on that topic!

To boil down the budget crises debate, it's all about whether the government should spend less, or should increase taxes on you. Those are the only two issues that are really going on. The reason it boils down that way is because money will not fall on the government from some aliens visiting (at least as far as we know now). Revenues to any government are enhanced by either spending less, or by collecting more.

Historically, governments are not too successful at spending less. They are very famous for increasing taxes. That's a very tender balance also. Increase taxes too much and the people who pay them are unhappy, sometimes to the point of replacing those politicians. Decrease spending too little and the budget crises remains unsolved.

What makes the current budget problem so intractable is we are attempting to solve a complicated non-political problem with many moving parts politically. It may not happen. But that too is a topic for another day.

So that's my little primer for you about taxes. What do you think? Where do you stand? Comment back and sound off, let's start a dialogue on the subject of taxes. It may not be fun, but it may be necessary because I'm not sure I trust the folks in Washington to solve this one.

Bernie Greenberg

Is the World End Near? Ummm, No.

2011-08-08T13:45:00.000-06:00

Sorry for those who are waiting, but all indications are the world is not coming to an end.

Usually you expect me to be writing on an estate planning topic of some kind. Something about estate taxes and the like. Not this time though. Reports in the media over the weekend got me thinking resulting in this missive.

After distilling several dozen reports from the numerous medial outlets and supposed experts that I follow, I expected to wake up this morning to mass destruction and devastation. What a surprise when the day dawned bright and sunny here in Colorado with nary a destruction in sight. Oh well.

I am always reminded of the lessons of the one of the most important books of the last 100 years, The Black Swan. I recommend this book to everyone for many reasons. Today that reason is the absolute folly of attempting to understand what is happening in our world from reading the news (rare today I know) or watching it on TV or your computer. That exercise is simply unsuccessful.

You see, the media exists in it's own world of self hypnosis or more accurately, self-induced hysteria and insanity. According to the media (all the media) "if it doesn't bleed, it doesn't lead". The only reason I actually know what that means is because a reporter told me. It means, what the media wants to report on is: death, destruction, and mayhem. They WANT blood and in our world, if you look for that, you'll find some.

So, according to the media, (especially MSNBC who expects the world to end hourly)what is going on out in the world is unrelenting war, famine, destruction, chaos and mayhem. Might as well pack it all in right now if we are to believe them. But it's not true, not any bit of it. So sorry you Mayan world destructionists and other looney rapture and alien watchers, none of that is gonna happen.

The end of the world (or days if you will) has been predicted, prophesied and expected for thousands of years. Recently, we had two rapture non-happenings, preceded by: total world meltdown, total world freezeups, and the year 2000, all of which turned out to be much hysteria about nothing. In just a few months, according to some deluded and long dead Mayans, supported by a ridiculously bad movie from Hollywood, we will get 2012, another end of the world non-happening.

"How can you be so confident Bernie?" Well, it's easier for me to say than you might think. For me it's simple arithmetic. There have been approximately 13 million end of the world predictions in the last thousand years. Their batting average? A big fat 0. So, I'm not really going out on the limb at all when I say, it's just not happening. The odds are way in my favor.

So, how to avoid all this talk of doomsday, armageddon and just sad stuff? Don't watch or take seriously what you see on TV or read daily in the news. Here's the truth: just because something bad happens somewhere (and there's no shortage of that) there is no equation that says that it means anything. "Gasp!!" I hear you now. "It doesn't mean anything? Ridiculous." Maybe so, but if it did, you wouldn't be here now to read this article now would you?

That is the point of The Black Swan. In our effort to find meaning, we personalize things that have nothing to do with us so we can pretend that they do. Well, they don't. It doesn't mean that we shouldn't care and we shouldn't try to make our world better, we absolutely should. But let's not get swept up in the media's attempts to hypnotize us into thinking that the end is near. If we should have learned one thing as a species on this planet, it's that we just keep keeping on, especially here in the land of the free and the home of the brave. Let's not ever forget that is our birthright, and our gift to the rest of humanity.

So, let's knock off the talk of the end and focus more on the beginning. And let's get those knuckleheads in Washington to actually get something done. But more on politicians another time.

Let me know what you think. Is the media really just the bearers of bad news? I look forward to your comments.

Bernie Greenberg

Six Sure Fire Ways to Make Sure Your Will is Up to Date

2011-08-01T13:51:00.000-06:00

Six Sure Fire Ways to Make Sure Your Will (and Estate Plan) is Up to Date

Here are six sure fire ways to make sure your Will is up to date and current. I am often asked how someone can make sure about this. Let's discuss how you can tell if it's time for you to get your Will and estate plan reviewed.

If your Will or estate plan falls into any of the categories below, it is OUT OF DATE and requires immediate attention.

1. You signed your Will in 2009 or earlier.

If your Will or estate plan is from 2009 or earlier, it is out of date and probably obsolete. Many things have changed since 2009, including dramatically different laws and rules concerning estate taxes.

2. You don't have Durable Powers of Attorney than name a HIPAA Personal Representative.

With the introduction of patient privacy laws under HIPAA several years ago, it is vital that your Powers of Attorney comply with these federal rules. Failure to do so could result in many problems for your family and decision makers if you are sick or injured.

3. You have moved to a state different from where your Will was created.

Since the laws vary from state to state, when you move to a new state, it is always advised to have your existing Will and other documents reviewed. This guidance also applies to your titles and beneficiary designations.

4. You have either: gotten married, divorced, had a child or children or had any other significant event in your life

Life brings changes, some good, some not. These changes must be considered to make sure your Will and estate plan remains appropriate for you. If life has brought you a significant event, it's time to get your Will and estate plan reviewed.

5. You have an A-B Trust, or any any other kind of estate plan that mentions the marital deduction and estate tax exemption.

These kind of Wills and estate plans are now obsolete and hazardous to your wealth. If you don't know how the estate tax changes of 2010 impact your plan, and you don't amend your plan accordingly, your family is at risk.

6. You have a fill-in-the-blank form or Will from any internet site.

It is a certainty that your Will or estate plan is out of date and obsolete if you have one of these. Not only are these forms dangerous for your family (See, the several articles below on internet Wills), they are even illegal in some states. If you have these kind of documents, get them reviewed and replaced immediately to protect yourself and family.

There are many other methods we use to determine the soundness of your Will and estate plan. So we don't stop with only these six. These six ways are a good way for you to start and I encourage you to see if any of these apply to you.

Let me know your thoughts and comments and any question is welcome. Thank you for your interest.

Bernie Greenberg

The 6 Steps in Estate Planning

2011-07-25T13:42:00.001-06:00

The 6 Steps in Estate Planning

Did you know that every estate plan consists of six steps? It's true and in this article we discuss each of those. As you proceed with your own estate plan, use this as your checklist to make sure that you include all six steps in your plan.

This discussion is NOT about what kind of estate plan you should have, or what your estate plan should say. This is about the six specific steps you want to make sure you complete in order to have the estate plan that is right for you and works for you. Notice that these steps are cumulative and should be taken in the order that I list them here.

We have also published this article as a video if you would like to watch and read along as well. You can find it on our YouTube channel at: www.youtube.com/BHGREENBERGLaw

Here are the six steps:

1. Decide to have an estate plan.

That really isn't is silly as it sounds. It's the first step and only you can take it. You have to decide that you want an estate plan before you can take action to get one. It's up to you.

2. Think about your goals.

You want to think about why you are going to do your plan. Is it to protect your kids, property, what are the three or four reasons driving you to do your plan? Write these down and think about them before moving on to step 3.

3. Schedule your estate planning assessment meeting with an attorney who specializes in estate planning.

At this meeting you will discuss your goals, the estate and estate tax laws and learn about your options for the different types of plans that might fit your goals and needs. Be prepared to ask questions and for specific recommendations.

You also want the attorney to give you a firm price on fees and expenses so you know ahead of time what your investment will be.

4. Work with your estate planning attorney to design, draft and sign your planning documents.

It may take several meetings to complete each of the tasks in this fourth step. Working with your attorney through these tasks will help make your plan better and ensure that it is yours. Remember, there is no plan until you have signed documents.

5. Coordinate titles to assets and all beneficiary designations with your plan.

This step is critical to the proper working of your plan. It is frustrating and potentially damaging to your family of you skip this step. The goal here is to make sure that your assets and beneficiary designations are synchronized with your plan. Each person is different, so don't just do something because Uncle Fred did.

6. Review your plan, titles and beneficiary designations with your attorney at least every two years.

Since people's lives change, the laws change and your general circumstances change, it is vital to make sure that you keep your plan up to date with changes in your life and the law. The only way you can accomplish this is to do periodic reviews with your estate planning lawyer.

There you have them, six steps to follow to make sure you get the estate plan that fits you and works when you and your family need it.

Let me know if you have questions about any of these steps or this article. We take all questions and comments and welcome your feedback. Thanks for your interest.

Bernie Greenberg

Estate Planning Questions: "What Documents are Necessary for Everyone ?"

2011-06-02T12:39:00.000-06:00

Estate planning questions: "What documents are necessary for everyone?"

In our series of articles responding to frequently asked questions about estate planning, we recently dealt with the question of who should have a Will. You can read that article below.

Today we tackle a different question, what documents are recommended for everyone regardless of their situation. Remember, the need for a Will is situation dependent. There are certain documents necessary that are not dependent on your situation.

Here are documents every person over 18 should have:

1. Durable Financial Power of Attorney.

This document permits your chosen person to deal with your money, property, bills and taxes if you are incapacitated.

2. Durable Health Care Power of Attorney.

This document permits the person you choose to deal with your doctors and medical care issues if you can't speak for yourself.

3. Living Will

This document sets forth your wishes if you are unfortunately in a coma as a result of a terminal disease or injury and you can't speak for yourself.

4. An estate planning assessment.

This is not a document, but a planning meeting with an estate planning attorney. This meeting is recommended so you can make sure you don't miss something else that may be required to protect yourself, your family or your property.

These are legal documents and should be pursued with appropriate legal advice and assistance.

Let me know what you think about this article and if you have a question that you would like to see us address. Thank you.

Bernie Greenberg

Estate Planning Questions: "Do I Really Need a Will?"

2011-06-01T12:42:00.001-06:00

Estate Planning Questions: "Do I really need a Will?"

Each week we answer all questions we receive from the public on various estate planning topics. Here is the most frequently asked question so far this week in its various forms:

1. Do I really need a Will? and 2. Does everyone need a Will?

This is actually a very good question and is not as simple as you might think. You probably thought I was going to answer that, "yes, everyone should have a Will". But that is not correct. Not everyone "NEEDS" a Will.

Since everyone's situation, family status and estate is different, the correct answer is "it depends". I know, a typical lawyer answer, but it is true. This is one of many reasons that internet Wills and estate plans don't work.

There are certain situations when a Will is mandatory. They include:

1. You want a specific result to occur if something happens to you.

2. You want specific people to handle your estate when you die.

3. You have children, especially minor children.

4. You are doing an estate plan anyway.

There is only one way to find out if you "need" a Will. That way is to meet with an estate planning attorney and go over your situation. You may find, like many, that you don't "need" a Will, but you "want" one in order to accomplish specific goals that you have.

There are dozens of different types of Wills and even more types of estate plans. So go ahead, and schedule a review meeting for yourself today. Find out about your situation and then make an informed choice to protect yourself and your family.

Bernie Greenberg

The 5 Biggest Mistakes Trustees Can Make - Barrons.com

2011-05-23T16:22:00.000-06:00

If you are acting as a trustee you should read this article:

The 5 Biggest Mistakes - Barrons.com

Let me know your thoughts or if you have any questions.

Your Turn: What Topic Would You Like to Discuss?

2011-05-17T15:11:00.001-06:00

In reviewing my last few entries here, I noticed that the topics were all of interest to me. As I do periodically, it's now your turn. What would you like to have discussed here next?

Remember, our focus is estate planning; estate taxes and estates, so let's try and stay in those areas and away from the usual minefields of politics, religion and Lady Gaga.

To start things off, I will say that it was an honor for me to be a presenter along with such luminaries as Brad Friedman, Jim Thomas and Susan Gindin today at a continuing legal education program at CLE in Colorado called, Social Media for Lawyers, by Lawyers. As we learned from Jim today, there really funny lawyers!

So now it's your turn. What estate planning, or estate tax topic would you like to discuss next? I'm looking forward to hearing from you.

Bernie Greenberg

Legal Forms | Estate Settlement Components | Bernard Greenberg - JDSupra

2011-05-13T15:49:00.000-06:00

In the article below, I discuss the essential components to administering every estate. Let me know what you think.

Legal Forms | Estate Settlement Components | Bernard Greenberg - JDSupra

How Often Should You Review Your Will?

2011-04-29T10:12:00.000-06:00

Did you know that your Will or estate plan should be reviewed periodically?

One of the frequent questions people ask me, is how often they should review their Will or estate plan? This is a great question!

Any Will or estate plan should always be reviewed periodically. There is no special rule for how often, but here are some useful tips you can follow:

1. Plan on reviewing your Will or plan with your attorney every 15 months.

2. If a significant event occurs in your life or family, schedule a review meeting.

3. If a significant financial event occurs in your life, schedule a review meeting.

4. If you take your plan out and read it and find you don't like something there any longer, schedule a review meeting.

If you follow these tips, you will keep your Will and estate plan current. If you have specific questions on this or any of our topics, please give me a call or drop me an email. Thank you.

5 Reasons to Avoid Doing Your Will On the Internet

2011-04-20T15:31:00.001-06:00

While there are actually many more than five, here are the top five reasons to avoid internet Wills:

1. Internet Wills Don't Work:

Most folks who attempt to create an internet Will miss one or more important questions or drafting issues rendering the document useless. If you are going to do a Will, why not have one that actually works?

2. Internet Wills Can Work In Unintended Ways:

As with most fill in the blank documents, the end result is a function of what goes in. Remember GIGO? That stands for “garbage in, garbage out”. Since most folks who attempt to use these are not aware of legal details that apply to estates the documents they create, while enforceable, create consequences that are not intended.

3. Internet Wills Don't Apply to You:

When a form is made general enough to apply to millions of potential users, it usually will not apply to you. This is why well drawn Wills are custom for each client.

4. Internet Wills Don't Address Special Circumstances:

Do you have a disabled child? If so, forget internet documents. Internet documents cannot address any special circumstances that require special handling.

5. Do You Really Want a Will from one of OJ's Attorneys?

The most popular internet documents are from a company started by one of OJ's lawyers. While he may be a good criminal lawyer, he knows very little about Wills and estate planning. Enough said on that.

What are your thoughts? Please join our conversation.

IRS Declares Form Not Due Since They Haven't Created The Form Yet

2011-04-15T14:53:00.000-06:00

The IRS Is A Master of the Obvious!

The IRS announced today that the Form 8939 (more on that below) will not be due for filing on April 18, 2011. The reason provided by the IRS is not that the filing date has been extended, but because the IRS has not yet created and released the tax form for use by taxpayers.

Can there be doubt about why our tax system is such a mess? How in the world are people supposed to comply with a tax system that works in such a crazy fashion? Sorry, but I don't have the answers, I just wanted to provide you with the "through the looking glass" experience of dealing with our tax system and the numerous and complex forms that are required of taxpayers.

Now for Form 8939. Do you remember back in 2010 when there was no estate tax. It had been replaced with a new carryover basis system. The reporting obligations for that were supposed to be made on the new IRS Form 8939.

In December of 2010, Congress through those rules out the window (actually a very good result for taxpayers) by passing a new estate tax system retroactive to January 1, 2010. Under the new law, presently in effect, the $5 million exemption against the federal estate tax was made retroactive to 1/1/2010

However, since Congress passed the new law at the end of 2010 and since just a few people had died in 2010 expecting there to be no estate tax, 2010 estates have a choice. 2010 estates can elect to either go with the "no estate tax system" which is no longer law, or with the $5 million dollar exemption system which is now the law.

Estates desiring the "no estate tax" system, like the Estate of George Steinbrenner, are required to use Form 8939.

And as of today, 4/15/2011, per the IRS notice I am reporting on, that Form will not have to be filed on time (4/18/2011) only because Form 8939 doesn't exist since the IRS hasn't created it yet. By the way, I have the IRS draft Form 8939 in my possession. I can tell you that the reason there is no Form 8939 is that the IRS doesn't yet understand the new tax law passed by Congress and how the optional carryover basis system works. That's ok, no one else does either.

If you haven't yet, get those quarterly estimates in and remember tax day for 2011 is April 18th.

Let me know what you think about this article and join our conversation by commenting. Thank you.

Bernie Greenberg

Where There’s a Will There’s No Way, Many Americans Say | Advisor One

2011-04-14T13:09:00.000-06:00

I found this article to be not only surprising, but shocking as well. I encourage you to read this, and let me know what you think.

Where There’s a Will There’s No Way, Many Americans Say | Advisor One

To think that so many people would rather have a root canal or give up sex before making a Will is just shocking. Does that say something about how they feel about their families? I'm not sure.

The second reason I wanted to comment on this article is my distaste for internet Wills. I have written several articles explaining the reasons you should stay away from internet legal documents, I don't repeat all those reasons here. I do however, encourage you to read those prior articles before entrusting your own estate plan to the internet.

Let me know what you think, as I hope you join our conversation. Thank you.

Bernie Greenberg

Obama Lays Out Plan to Reduce Deficit by $4 Trillion in 12 Years | Advisor One

2011-04-13T13:53:00.000-06:00

In the deficit reduction plan announced by the President today, your estate tax exemption just vanished.

As you know, the estate tax exemption became $5 million on January 1st of 2011. However, that exemption is reduced to only $1 million on January 1, 2013.

The President's announced plan would make the $1 million exemption permanent. This is a drastic increase in federal estate taxes resulting from an absurdly low exemption of $1 million and a top estate tax rate of 55%.

What is your take on this announcement? I don't know if the President has the votes in Congress to get this through, but if passed, it is a disaster for your family.

Please read the article below:

Obama Lays Out Plan to Reduce Deficit by $4 Trillion in 12 Years | Advisor One

The Phrase "Estate Planning" Causes Different Reactions: What Do You Think Of?

2011-04-07T14:49:00.002-06:00

Recently I asked the above question by posting on several social networks. As you might think, there was a variety of responses.

One of my friends actually responded that the phrase “estate planning” makes him think that I am posting again! In this article, I list some of the more prevalent and interesting responses and again ask for your thoughts.

It has always interested me how people who are not immersed day to day in estate planning think when they hear that phrase.

1. When I hear “estate planning” I think about a Will.

This is the most common response and one that I think of as well. Is that what you thought of?

2. When I hear “estate planning” I think about my family.

This is my favorite response and the one I suggest to all of my clients. To me estate planning is about family and family represents the reasons people plan their estates.

3. When I hear “estate planning” I think about taxes.

It is true, for many, thinking about their estates brings up thoughts about taxes. The impact of taxes on estate planning is a function of the size of the federal exemption against the estate tax, not a subject for this article.

Those are the three most common responses that people have when I ask them what comes to mind when they hear, “estate planning”. What comes to your mind? Please respond and share your thoughts on this topic and join our conversation.

Thank you.

Bernie Greenberg

State Health Insurance Regulators Tied to Industry, Says Watchdog | Advisor One

2011-03-23T10:23:00.001-06:00

Here's an article that may be of interest. My question is where is the transparency in government that we have been promised?

From Advisor One:

State Health Insurance Regulators Tied To Industry

Let me know what you think of this and visit here often: B.H. GREENBERG & ASSOCIATES

Your Credit is Important!

2011-03-23T07:41:00.001-06:00

I thought you would find this article about protecting your credit interesting.

How to Effectively Manage Your Credit Reputation [Personal Finance] - http://pulsene.ws/1610A

FDPOA or HCDPOA: Knowing the Power of Attorney Code Can Save Your Life

2011-03-21T16:08:00.001-06:00

It's true. Knowing the code of Powers of Attorney, the difference between a FDPOA and a HCDPOA can save your life.

In estate planning, Durable Powers of Attorney are critical and fundamental. Every estate plan, if properly drafted, will consist of both of these documents.

FDPOA: The Financial Durable Power of Attorney.

A FDPOA or Financial Durable Power of Attorney represents your choice of financial decision makers for any period you cannot speak for yourself due to incapacity. Think of all the financial parts of your life, from paying your bills and other periodic payments to filing your taxes. Those things need to occur even if you are incapacitated. Your FDPOA can accomplish that for you.

HCDPOA: The Health Care Durable Power of Attorney.

A HCDPOA or Health Care Durable Power of Attorney represents your choice of health care decision makers to speak for you during incapacity. From medical treatment to living arrangements, decisions need to be made. If you cannot speak for yourself due to disability, your decision makers as listed in your HCDPOA can make these decisions for you.

So these letters: FDPOA and HCDPOA represent the Power of Attorney Code. Whether it's a FDPOA or a HCDPOA, knowing the code protects you and helps your family if you ever experience a disability which prevents you from speaking up for yourself. Knowing the code could save your life.

Let me know your thoughts about this and all of our articles. Join our conversation and leave your questions and comments or feel free to send me an email or give me a call. Thanks for reading.

Bernie Greenberg

Congress Puts Your Estate Plan on a Two Year Election Cycle: Here's How to Protect Your Family

2011-03-16T17:56:00.001-06:00

You may have heard enough to make you nauseous about the 2010 tax act that changed all the rules we've ever known about estate planning. However, you may not have noticed that one of the most adverse parts of this new law is that your estate plan is now on a two year election cycle.

The 2010 estate tax changes expire on December 31, 2012. On January 1, 2013, all the estate tax and planning benefits of the new law disappear into the ether unless Congress passes a new tax bill before the end of 2012.

What this means is that estate planning has been placed on a two year election cycle by Congress. Whoever prevails in the 2012 elections will dictate what our new estate planning rules will be. No certainty, no continuity, no doing what's right for our country. Congress has geometrically increased the complexity of planning even the simplest estate.

There are several steps you can take to protect yourself and family from this latest example of Congressional foolishness. Here they are:

1. Make your estate plan flexible to respond to whatever Congress decides.
2. Consider building your estate plan so that Congress is removed from the equation. Avoid using formulas that are based on what Congress may change in the future.
3. Review your estate plan with your estate planner every election year.
4. Be proactive and not reactive. Plan before you need it when you are not acting under emergencies, disasters or family crises.

Let me know if you have questions about these four steps and how you can use them to protect your family.

Bernie Greenberg

How to Choose the Right PR for Your Estate

2011-03-03T20:47:00.001-07:00

I thought you might enjoy this article from the New York Times.

Choosing the right Personal Representative is a crucial part of your estate planning.

How to Choose the Right Executor for Your Estate - NYTimes.com

Powers of Attorney & Age Staleness: The Problem You Didn't Know You Had

2011-02-24T17:41:00.001-07:00

Your Power of Attorney has a limited useful life! This is the problem of age staleness with Powers of Attorney.

One of the crucial components of every estate plan is the Durable Power of Attorney. There are two types, one for financial matters and one for healthcare issues. Many people believe that when they sign their Powers of Attorney the documents are good forever. This belief is incorrect.

This article was requested by one of my clients who just dealt with the age staleness problem recently. A bank (which shall remain nameless) refuses to accept her husband's Power of Attorney. The document is less than four years old. The bank is afraid of liability without an affidavit from the husband stating that the Power of Attorney still reflects his wishes. Ridiculous? Yes! This is the problem of age staleness.

In age staleness cases, the bank has no legal leg to stand on. The Power of Attorney is legally valid. However, the bank can refuse to accept anything they don't like and request either an updated document or an affidavit. There are two options to deal with age staleness:

1. Fight tooth and nail with the bank or produce the affidavit.
2. Update your Powers of Attorney regularly.

In most cases the second option is the better one. How do you do this? When you meet for your annual or biannual reviews with your estate planner, ask if it's time for updating your Powers of Attorney. You should plan on doing so approximately every 3–5 years.

If you have questions about age staleness issues, or any other estate planning questions, feel free to give me a call. Also, if you have comments on this article, please leave them here or send us an email. Thank you.

Bernie Greenberg

Your Turn: What Interests You About Estate Planning & Wills

2011-02-18T13:58:00.001-07:00

It's Your Turn: What are you interested in? Are we writing about the right topics?

I am interested in what interests you about estate planning, Wills and trusts! I have written on these topics hundreds of times, but I want to make sure to cover the areas that you may find interesting or perplexing.

So now it's your turn. Comment back or write in. Whatever you would like to see covered or addressed. Even if it's about how politics now affects estate planning, we will address it.

Join the conversation and let us know your thoughts. What are your questions? What interests you in this area? What upsets you about these topics. It's your turn, we are waiting to hear from you.

Thank you.

Bernie Greenberg

Estate Planning FAQ: "What is the difference between a Living Will and just a Will?"

2011-02-15T10:38:00.001-07:00

In this series of frequently asked questions on estate planning, we take this question: “What is the difference between a Living Will and just a Will?”

This question is asked often since these two things sound so much alike. However, they are completely different and unrelated. Both are part of every client's estate plan.

Lifetime Documents: The Living Will.

A lifetime document is one which has validity during someone's life. A Living Will is a lifetime document. It is valid only while the maker is alive.

A Living Will addresses medical treatment near the end of life, such as a coma or similar condition. In my State of Colorado, the Living Will can either be simple and address only life support, artificial feeding and organ donation. Or, the Living Will can as extensive as you want and address many different medical treatment questions and living arrangements. I will address which type is better in a later article.

Another example of a lifetime document is a Power of Attorney. Previous articles discuss Powers of Attorney.

Testamentary Documents: The Last Will.

A Will, or “just a Will” as our questioner called it, is a testamentary document. A testamentary document is one which become valid upon the death of the maker. If you have a Will, it is not valid during your life. It's validity is created by your death. Previous articles here have covered the many different types of Wills.

So, the answer to our question is this: a Living Will is for your lifetime and expresses your wishes about medical treatment if you are unconscious or comatose. A Will is a death-time document and deals with the disposition of property, your children and similar issues. Detailed descriptions of these two documents appear in earlier articles here on this site and I encourage you to read those.

Let me know if you think this article answered our FAQ. Also, if you have comments or questions, please feel free to share them here. Thank you for your interest in estate planning.

Bernie Greenberg

Estate Planning FAQ: "I really don't have anything, so I don't need an estate plan, right?"

2011-02-07T13:08:00.001-07:00

Estate Planning FAQ: Frequently Asked Questions:

“ I really don't have anything, so I don't need an estate plan, right?”

No, usually that's wrong. But read on.

This is one of the most frequently asked questions I hear about estate planning and Wills. The answer is usually, no, that's not right. Rarely though, it is possible to meet someone who really doesn't need a plan.

Let's explore this question further. Let's start with the thought that estate is not a question of how much you have (money or property) but about how much you care about 1) yourself; 2) your family; and 3) your decision making power. Beginning with this thought makes it easier to understand why most people really do need estate planning.

Let's assume that you are right and you have little if any property. If you answer any of these nine questions with “yes”, you need an estate plan:

1. Do you have kids?
2. Do you have any life insurance?
3. Do you care who raises your kids if you died unexpectedly?
4. Do you care who would control your children's money from your life insurance if you died unexpectedly?
5. Do you care who makes decisions for you if you can't make them for yourself?
6. Do you have anything that you want to leave to a particular person, or where what you do have goes if you died unexpectedly?
7. Do you care how you would be treated if you were in a coma?
8. Do you want to be an organ donor?
9. Do you have pets that to you are like your kids?

So how did you do with these nine questions? Did you answer any of them with “yes”. If you did, then you are proving that estate planning is not about how much you own.

Did you answer every question with “no”? If you did, then it is possible that you don't need an estate plan. However, I would still recommend you review these issues carefully before make your final decision.

If you did answer any of the nine questions with a “yes”, do you feel differently now about our frequently asked question? I hope so. I'll leave you with this quotation of mine:

“Estate planning is not about how much you have, but about how much you care about those people and things you do care about.”

That one sentence sums up best why just about everyone needs some type of estate plan. In my over 32 years of practicing law, I have met less than a handful of people who truly didn't need even a simple estate plan.

That's all for this installment of Estate Planning FAQ. I hope you found this article informative and thought provoking. Please feel free to add your comments and questions. If you have a question that you would like to see addressed in Estate Planning FAQ, please let me know. Thank you.

Bernie Greenberg

Estate Planning FAQ: What is estate planning?

2011-01-31T16:16:00.001-07:00

In this series of estate planning FAQ's, we are covering your questions on estate planning. In this article, we answer, “What is estate planning?”

Estate planning can mean many things to different people. Here is the definition from investorwords.com:

investorwords.com definition of estate planning.

That's not a bad definition, but I believe it is too specific to make estate planning understandable. I want us to take the focus off of specific documents and put it on goals and objectives.

Here is the definition that I like:

Estate planning is about creating arrangements, usually legal, to make what you want to happen in the future happen, no matter what the future holds.

I like that definition because it gets more accurately at what real estate planning is about. Let's match my definition with some examples to make this point.

Assume that you want your kids to go to college. When you start a college fund, like a 529 Plan, that is a form of estate planning. But,
How do you make sure that goal is realized if you get sick, become disabled or die too soon? You might add an insurance plan to supplement the 529 Plan. That's estate planning too.
Now, how do you make sure the insurance money will be spent for your kids how you want, like to provide that education? You might consider establishing a trust for your kids in a Will or revocable trust that provides guidelines to the trustee to make educational opportunities for your children happen. Again, elegant examples of estate planning, or, creating arrangements to make sure what you want to happen does, even in an uncertain future.

Now, you can expand on those examples with more details that make you and your family original and unique. Your unique details provide the first clue that every estate plan is, and should be, different. No family is the same, their goals are unique and their resources unique as well. What one family may do to reach similar goals may be quite different than what you might do.

Another example illustrates this. Let's stay with our college education goal. One family with substantial resources may be considering Ivy League schools in their planning. Another family may focus on State colleges and student loans. Same goal, college education, but different planning due to the different family situations and resources.

When you look at estate planning this way, it takes on an additional meaning:

Estate planning provides the means to control the outcome of future events and circumstances.

We sometimes get to focused on the means of estate planning; Wills, Trusts, Durable Powers of Attorney, etc., and forget that those are just means and tools. What estate planning is really about is you, your family and your resources. That's what makes estate planning so interesting. Each one is different, unique and special.

What do you think? Did this article answer for you the question, “What is estate planning?” Let me know your thoughts.

In our next article, we will start to look at some of the tools that we use in estate planning, like Wills and Durable Powers of Attorney.

Bernie Greenberg

Estate Planning FAQ: Frequently Asked Questions About Estate Planning

2011-01-31T14:03:00.001-07:00

Estate Planning FAQ:

Over the next few articles, I will address the most frequently asked questions I get about estate planning; Wills; Trusts and probate.

If you have a question or questions that you would like to see addressed, please send them in to me or post them here.

You can always get our latest news and comments about estate planning at: Our website and we encourage you to check back there often.

So stay tuned for our series on Estate Planning FAQ. In the next article is: What is estate planning?

Bernie Greenberg

The Corrected Link to The Wall Street Journal Story On Corrupt Legislation

2011-01-25T21:59:00.002-07:00

Is Our Legislative Process Corrupt? Maybe.

I commented below on a story in the January 25th edition of the Wall Street Journal.

Here is the corrected link to the Wall Street Journal story:From

Investors Weigh In on For-Profit-College Regulation - WSJ.com

This story alarmed me because it suggests that our legislative process may be corrupt. What this involved is lobbying attempts by some Hedge Fund operators to have Congress crack down on for-profit colleges. At the same time these hedge fund guys were pushing for Congress to act, they were shorting the stock of several of these colleges.

My point is this: there should be complete transparency in our legislative process. I have no problem with these people lobbying for Congressional action. My argument is their doing so without telling Congress that they have shorted or are shorting the stock in these colleges. You see, if Congress does act, their short bet that the stock would go down would be correct and the hedge funds would make millions.

So if you are going to lobby Congress to pass legislation, then at least be honest and up front about why you are there.

What's your opinion?

Bernie Greenberg

Another Reason To Distrust How Laws Are Made

2011-01-25T21:39:00.002-07:00

Some new laws have laudable goals, but dubious motives.

Here is an interesting example of that.

Let me know what you think of this story from the Wall Street Journal about who is lobbying for certain laws to be passed: stock market speculators.

A 'Short' Plays Washington

The actual link to this story appears in my entry just above this one. So remember to read the entry just above this one to find the link to the actual WSJ story.

Bernie Greenberg

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010: Yes, We Do Have A New Tax Bill

2011-01-20T17:18:00.001-07:00

We Have a New Tax Law and Called the Above Name!

As I write this, it's January 20, 2011. We got our new tax law back in December of 2010. I am writing this because this week alone, I have met with over 10 people who were not aware that this new tax law existed.

Strange? Perhaps. But tax lawyers like myself do not always remember that people who do not focus on estate taxes do not pay attention to changes in the estate tax laws. Remarkable, but true.

I have written before about some of the details of this new tax law. The estate tax parts of this new law are retroactive to January 1, 2010! I will not repeat those descriptions in this article.

People Are Unaware of the New Tax Law!

Since the first of the year, I have met with several people who expressed surprise that a new tax bill had been passed and signed by the President. This has amazed me because of how much my firm has tried to educate our clients and the public about what is going on with estate tax laws.

However, the truth is that most people do not pay attention to these tax law changes. So, what should you do about all this?

First, schedule a meeting to meet with your estate planning attorney and learn how and if these changes apply to you.

Second, if you don't have a Will or estate plan yet, make 2011 your year to get one. You can review all of my earlier articles about why this is the best thing you could do for yourself and your family in 2011.

Third, if you don't want to stay current on what is happening in the tax world, follow our blog here. Come visit here often and check in from time to time. Who knows, it just might be fun and even (gasp) educational.

Let me know if you found this article helpful and if you have any questions. Thank you.

Bernie Greenberg

Why New Tax Laws Mean Reviewing Your Estate Plan

2011-01-20T07:52:00.001-07:00

New tax laws mean it's time to review your estate plan. Here's why:

The Congress has passed several new tax laws that affect your estate and estate plan over the past 10 years. Each time, the new law has major adverse impact on your family and your plan.

Additionally, for people unfortunate enough to die during these periods, their families face enormous uncertainty in how their family member's estate must be handled.

The only way for you to know how these changes in the law affect you is to review your plan with your estate planning attorney. Here are recommendations:

Review your plan at least every two years. The meetings could be short and simple, or if the change in the law is major, the meeting will be more in depth.
Don't skip a review.
Don't rely on your interpretation of the news to decide whether or not to have your plan reviewed.
If you don't have a plan, then it's time to meet with an estate planning attorney for your first time.
There are very few people alive who don't need an estate plan, so don't use that to not meet and find out about your situation.
When you schedule your meeting, ask what you should bring and review so you will be prepared for the meeting.
Ask what the charge is for the meeting so there are no surprises.
Not to be repetitious, review your plan, review your plan, review your plan.

Follow these simple steps and stay current on the law and keep your plan current and your family protected.

Was this article helpful? Please comment or leave your questions. Thank you.

Bernie Greenberg

Testing BlogJet

2011-01-20T07:38:00.001-07:00

I have installed an interesting application - BlogJet. It's a cool Windows client for my blog (as well as for other tools). Get your copy here: http://blogjet.com

Let me know what you think if you try it out.

Bernie Greenberg

"Computers are incredibly fast, accurate and stupid; humans are incredibly slow, inaccurate and brilliant; together they are powerful beyond imagination." -- Albert Einstein

Serving as Someone's Trustee Can be Hazardous!

2011-01-19T12:53:00.000-07:00

As the below article from Trusts and Estates Magazine shows, serving as a Trustee can be hazardous if you are not a professional.

It is common for clients to name family members as a Personal Representative or Trustee. However, before take on the responsibility you need to think carefully about your responsibilities.

The article below should be required reading before you take on the job:

trustee breach fiduciary duty paradee

Clients also need to be careful in their selection of decision makers. Before you make a selection that creates a disaster, make sure you discuss it thoroughly with your estate planning attorney.

Bernie Greenberg

Top 10 Worst Estate Planning Mistakes

2011-01-16T15:36:00.002-07:00

Top 10 Worst Estate Planning Mistakes!

This is just one list of the worst estate planning mistakes. There are dozens of mistakes that people make with their estate planning. This is my list of the 10 worst mistakes I see in my practice.

Don't be fooled by how common or ordinary these mistakes seem. There very ordinariness is what makes them so dangerous to the family.

1. Not Having An Estate Plan:

This mistake should really need no explanation. It is the worst mistake of all because it leaves your family and you completely exposed. You are reliant on the legal system of your State to take care of your property; your spouse and your children. Generally, this is not the preferred way to take care of your loved ones.

2. Thinking You Don't Need An Estate Plan:

This is a common mistake that usually leads to the first mistake. There are several reasons that people believe that estate planning is not necessary. They think they don't have enough property or they don't have family that depends on them.

These factors could be present, however, the truth is that there are very few people who don't need some kind of planning. Even if you have no property ( a rare circumstance) or if you have no family, you would still want to protect yourself from disability.

3. Not Properly Protecting Your Children:

Children and their protection is a primary goal of estate planning. This is crucial if your children are young or disabled. A proper estate plan will allow your kids to be raised by those you trust, in the manner you support and the financial future of your kids to be protected.

4. Not Knowing How to Calculate the Size of Your Estate:

Many people who don't pursue an estate plan fail to do so because they think they don't have a large enough estate. Unfortunately, approximately 96% of all clients don't know how to calculate their estate.

Invariably, people forget something that creates estate value when they tell me how much they are worth. They routinely forget life insurance (See, the next mistake!), pension plans and other assets.

When you do your estate plan, learning how to correctly calculate your estate is one of the initial steps.

5. Not Including Life Insurance When Calculating Your Estate:

As just referred to, many people fail to include their life insurance when considering their estate size. They do this because people remember that life insurance is income tax free. However, it is not estate tax free and if you own or control the insurance policy, it is part of your estate.

Insurance proceeds alone can be significant and if not planned for, can create havoc in your plan.

6. Creating a Will From an Online Form:

Most experts (and I) agree that online or fill-in-the-blank forms are an inappropriate estate planning solution. Why? They don't work, people fill them out incorrectly and they create numerous unintended consequences.

7. Having Just a Will:

A Will, while important, is not an estate plan. The Will is just one component to every estate plan. The plan should also include, at a minimum, Durable Powers of Attorney, Living Wills, and tax and probate analysis.

8. Not Synching Beneficiary Designations With Your Plan:

Many people have benefits from work, insurance policies and IRA's. All your beneficary designations need to be coordinated with your estate plan. Failing to do so will mean the plan will fail.

9. Not Considering Tax Consequences:

Almost everything we do has tax consequences, including our estate planning. Congress has changed our estate tax rules repeatedly over the past several years and more changes are coming.

It is vital to the integrity of your plan to consider how these tax rules work and how changes to those rules impact yourself, your family and your plan.

10. Not Working With an Estate Planning Expert:

Even though I am a fan of the movie, My Cousin Vinnie, the truth is your cousin, uncle, brother, sister or neighbor cannot help you with your estate plan. Unless they are a full time estate planning specialist, you should stay away from their amateur estate planning approaches and ideas.

I can't tell you how many times we have had to re-do or clean up estate planning documents that came from a non-expert source. I recommend to all clients to view their estate plan like their medical care. They would not let their cousin perform surgery on them so don't let that same cousin try and do their estate plan. Like surgery, estate planning is best done by experts.

That's my list of the top 10 worst estate planning mistakes. Do you have your own? What do you think of this list? Please comment on your thoughts and experiences. Thank you.

Bernie Greenberg

The New Tax Law: What Does It Mean For You?

2011-01-12T08:31:00.001-07:00

Right before the end of the year, Congress passed and the President signed a major new tax law. What does it mean for you?

Our new tax law is far reaching and will affect every aspect of your life. Over the next few days, I'll have several articles for you about different features of this new law.

Before getting into details, let's just list several features of the new law.

1. The Bush era income tax cuts have been extended.

2. The estate tax exemption becomes $5 million retroactive to 1/1/2010.

3. The carry-over basis rules that were in effect for 2010 estates with a 0 estate tax are now optional via election for 2010 estates.

4. The new $5 million estate tax exemption means that old style A-B or Marital Deduction trusts are no longer viable and will create major problems for your family.

5. Unused exemption from the first spouse's death now can be used at the second spouse's death, but require the filings of estate tax returns with the IRS.

That's just a quick introduction to the new law. Many more details will follow.

Bernie Greenberg

You've Resolved to Get a Will This Year. That's Great! How to Know the Right Will for You.

2011-01-04T18:15:00.001-07:00

You've Resolved to Get a Will This Year. That's Great! How Do You Know the Right Will for You? What do You do Next?

You've made a wonderful New Year's resolution to finally get your Will done this year. It may surprise you to know just how many people each year make the same resolution. In this article, I will cover the information you need to know to get started on this resolution and bring it to completion.

So where do you begin? Well that's actually an easy question to answer. It's the same answer to the question of knowing which Will is right for you. There is no such thing as a Will "out there" that is right for you and your family.

You see, there are dozens of different kinds of Wills. Let's review just several to demonstrate what I mean. There are Wills for:

1. Single people.
2. Single people with minor children.
3. Single people with grown children.
4. Single people with grown children and grandchildren.
5. Single people with dependents not their children.
6. Married couples with the same combinations as listed above for single people.
7. Unmarried couples with all the same combinations.
8. Domestic partners with all the same combinations as above.
9. Same sex partners with the same combinations.
10. Wills for situations that are too numerous to mention.

In other words, every person's Will is (and has to be) different than every other person's Will. This is because everyone is different! This is why internet and fill-in-the-blank documents don't work and are so dangerous. It is impossible to properly tailor those documents so they can work just for you.

If all this is true, then how do you start on this resolution? That's easy. You make an appointment with an estate planning attorney for an initial estate planning assessment. By having this meeting, you will learn what type of Will fits your situation.

You will end up with recommendations of how to proceed with your estate planning. I have written prior articles about how to find such an attorney and the qualifications you should insist on from that person. Please refer to those articles elsewhere here for reference.

The last point I want to emphasize is that your Will is just part of this resolution. I have written prior articles on the proper components of an estate plan. Your Will is just one of several necessary components. You want to make sure that you add Durable Powers of Attorney and a Living Will. Refer to the prior articles here if you want more details on these components or just give me a call.

Congratulations on your resolution and I hope this article helps you bring it to a pleasant conclusion. Completing your Will and other basic documents represents one of the best gifts you can give your family and yourself for the new year.

If you have questions about this article or your estate planning, feel free to give me a call or send me an email or message.

Bernie Greenberg

Resolutions, Resolutions, Resolutions: Should Getting Your Estate Plan Be One of Them?

2010-12-28T16:25:00.000-07:00

It's that time of year, the time we all start to think about our resolutions for next year. What about finally getting your Will and estate planning done?

Some of us always make New Year's resolutions and some of us don't. Some of us stick to our resolutions and some don't. The point of this article is not to debate the merits of resolutions. Instead, I'd like to suggest one that is almost always on everyone's list, but somehow never gets completed.

I hope you make 2011 your year to finally get your Will and estate planning completed. I think that is a pretty important resolution because of how much it means to your family. I have written before about the statistic that most people will spend more time and money each year on an annual vacation then they ever spend on their estate planning. Well, let's make 2011 your year to finally get your Will done. Let's make 2011 your year to finally get your estate planning done.

With all of the tax changes in force for 2011 and 2012, it couldn't be a better time to finally cross this one off your list. Did you know that these estate tax changes are set to expire in 2013 unless extended by Congress?

How do you know which type of Will and estate plan are right for you? That's a very good question and the subject for my first article in the new year. So, like I always, say, Stay Tuned

Have a great, happy and safe New Year!

Bernie Greenberg

Merry Christmas!

2010-12-24T16:06:00.000-07:00

Happy Holidays & Merry Christmas!

This is my favorite time of year, it's magical. I hope you believe in the magic of the season and are able to enjoy this holiday with your family and loved ones.

Many are not that fortunate and their loved ones may be ill, suffering or protecting us by serving in our armed forces.

In addition to enjoying all of our blessings this season, let's take a moment and remember those who may not be as lucky as we are.

Thanks to all of you for reading our articles on estate planning. Thanks to our servicemen and women for protecting us. Thank you to all those who serve here to keep us safe.

Happy Holidays everybody!

Bernie Greenberg

Outsourcing Your Estate Plan! Wait, What? Really?!?

2010-12-16T15:10:00.000-07:00

A recent problem in estate planning is outsourcing. Here's more information and how to make sure your plan isn't outsourced.

The outsourcing issue affects all of us. Many jobs have been moved overseas: call centers; fulfillment offices and others. You may not even be aware that legal services have been outsourced overseas. I originally started drafting this article before the recent fracas erupted about the tax bill. Now, with the tax bill passed by the Senate and hopefully soon to be passed by the House, I am happy to get back to informing you about this outsourcing problem.

This article is not about outsourcing, this is about estate planning; how to get your plan done properly and make sure you don't end up with an outsourced plan. Whatever your thoughts are on the topic of outsourcing, they are valid and not what this issue is about.

How did I find out about outsourced estate plans? Quite interesting actually. Our firm was solicited to purchase legal services from several suppliers in India. We continue to receive offers weekly for outsourced legal services. We can hire paralegals for $5 to $7 per hour and lawyers for $10 to $20 per hour. Yes, your eyes don't deceive you, and those are not typos! Those are immense savings for any law firm to consider and many have pursued those incredible deals.

Lawyers, either inexperienced in estate planning, or just seeking to make more money in their practices are using these outsourced legal services to produce work for their clients. This is legal, but the professionalism may be questionable. I strongly urge you not to pay for or use legal documents for your estate plan that are outsourced.

Estate planning is a specialized field. While it may not be rocket science, it can be close. With the interplay between sometimes complicated family dynamics and the ever-increasing complexity of our tax laws, estate planning should not be undertaken without appropriate training and experience and certainly not outsourced.

I have surveyed several of my colleagues who are estate planning experts, and none of them would ever consider outsourcing your estate planning. The ability to work one on one with our clients, understand their concerns and goals and to then translate that into their documents is something that real experts pride themselves on. For the same reasons that you should avoid internet and fill-in-the-blank documents, so should you avoid outsourced documents. They are hazardous to your family and to your property!

So how do you protect yourself and your family? Follow these simple steps:

1. Work With Experts. For your estate planning, make sure you deal with an attorney who specializes in estate planning and ONLY estate planning. You wouldn't go to your foot doctor if you have a problem with your heart. Use that same principle in dealing with your estate planner.

2. Work with qualified experts. I recommend you insist on these qualifications at a minimum:

A. The attorney has an AV rating from Martindale-Hubbell, the attorney rating service. This rating cannot be purchased and is awarded only upon peer review.

B. The attorney specialize in full time estate planning practice.

C. The attorney has a minimum of at least 7 years of full time estate planning specialization or concentration.

D. The attorney be a member of their state's Trust and Estate Bar Section or be a member of ACTEC.

E. The attorney verify they do not use outsourced services or documents in preparing and producing your estate plan.

By following these simple steps you will protect yourself and your family and make sure that your estate plan was not outsourced.

Note: no outsourced services were used or consulted in the preparation or writing of this article.

Bernie Greenberg

Federal law requires us to advise you that no portion of this article is intended nor can be used in any manner as tax advice. You are advised to seek the advice of your own attorney for your estate planning. Also, no portion of this article may be used in any manner in any attempt to evade federal taxes or tax penalties.

Can It Be True? Real Estate Tax Reform? Maybe So!

2010-12-15T15:12:00.000-07:00

Are we on the cusp of the dawning of a new age in estate planning? Perhaps.

On December 15, 2010, the U.S. Senate passed by more than 80 votes a tax compromise reached between President Obama and Congressional Republicans. Among other tax issues, the bill continues for two more years the income tax structure that was due to expire on December 31st.

Also, the bill ushers, potentially, a new age in estate planning. The bill would make the exemption against the federal death tax $5 million (up to $10 million for married couples) and make the death tax rate 35%. This would be in lieu of an absurdly low exemption of only $1 million and a 55% rate under present law.

However, the bill has not passed the House of Representatives and several members of that House have threatened to torpedo the bill. That threat is mostly empty since it is being made by Representatives who were voted out of office in the last election.

So stay tuned, it is now up to the House to see if we will get real estate tax reform.

Bernie Greenberg

December 9, 2010: Sad News Out of Washington

2010-12-09T16:47:00.001-07:00

Congressional Democrats Rebel Against Their Own President; Vote to Reject Obama's Tax Plan

Today is sad news from Washington. The President's Tax Plan, a compromise reached with Republican leadership, was rejected today by Congressional Democrats who rebelled against their own President.

You can read more here from CNN:

As of today, this means there is no compromise on income taxes or estate taxes. The President's economic advisers announced that Congressional Democrats had just voted to continue and deepen the recession.

What does this mean for your estate planning? It means that nuclear winter on your estate arrives January 1st, 2011. Sad news for the entire country.

Bernie Greenberg

A Historic Agreement On Estate Taxes? Maybe.

2010-12-07T07:35:00.001-07:00

Late Monday, December 6, 2010 the White House and Republican Leadership reached an agreement on tax policy for 2010-2012. What does it mean?

It could mean nothing and it could be historic. Nothing has passed Congress yet, and the Democratic leadership reacted negatively to the proposal.

On estate taxes it would mean a new $5 million exemption against the federal estate tax with a rate of 35%. That would be truly historic if it happens.

Up in the air at the time of this writing is exactly what the rules would be for people dying in 2010.

All I can say right now is stay tuned!

Sad news as the President's own party has rebelled against him and voted to reject the President's tax plan:

http://bit.ly/hWARHj

Bernie Greenberg

The Gift

2010-12-02T12:55:00.001-07:00

The Gift of Estate Planning: One of The Best Gifts of All

It's the holiday season, the season of thanks and gift giving. Here's an idea for a gift that you may not have considered. The gift of estate planning. This could be the most important gift you ever give to your loved ones.

In 32 years of practicing estate planning law, I have never had a surviving family member tell me that they were sad that Dad, or Mom, had done their estate plan. On the contrary, the reaction has always been gratitude that we assisted their loved one with their plan.

What better gift can you ever give to your family then the gift of security, protection and peace of mind? Yet, most people will spend more time and money each year on the annual vacation then on protecting themselves, their family and property with an estate plan.

Please consider these benefits to your family when thinking of gifts this holiday season.

I will add to this with more thoughts on why the gift of estate could be the best idea for you this holiday season. Stay tuned.

How To Calculate Your Taxable Estate And Why It Matters To You

2010-11-29T14:10:00.002-07:00

How To Calculate Your Taxable Estate And Why It Matters

In a recent article, we discussed the difference between your taxable and probate estates. In this article, we discuss how you calculate your taxable estate and why doing so is crucial to protecting your family.

I know what you may be thinking, "Here's that lawyer again, bugging me about estate taxes and my estate". Well, after you read this article, you will be glad I did.

Why Calculating Your Taxable Estate Matters to You:

Most people stopped worrying about estate taxes in 2009 when the exemption against the federal death tax was $3.5 million. Few clients had taxable estates in excess of $3.5 million and most thought that was that about death taxes. Not so fast! If you follow my articles, you know that system was trashed by Congress. That's not news anymore, no matter how bad that news is.

What the current Congress did is allow the federal death tax to expire for the year 2010 (creating a nightmare for anyone dying in 2010) and to bring the tax back starting January 1st, 2011. And starting in 2011, the exemption does not return to the 2009 level of $3.5 million. It is reduced to the absurdly low level of $1 million. In addition, the tax rate starts at 45% on the first dollar over $1 million and increases to a maximum rate of 60%!

If you still think that a $1 million exemption against the federal death tax is high, just keep reading to learn how your taxable estate is calculated.

Calculating Your Taxable Estate:

When you calculate your taxable estate (the size of your estate subject to death tax)the best place to start is to think of the word, everything. That's a good word because that is pretty much what is in your taxable estate, everything you own or control or benefit from.

Here are the details.

1. Start with your net worth. That's all your assets minus any liabilities.

2. Use the current value of assets, not what you paid for them. You can use current stock prices, a recent statement from your bank and brokerage accounts. For real estate, you can get a working number just by going on the internet these days.

3. Add in your personal possessions.

4. Add in the current values from your IRA's; 401(k)'s; and pension accounts (but only those amounts that continue on after your death. If your pension stops at your death, we can exclude it from the calculation).

5. Break down these numbers by how each item is owned. For example, make these columns:

My Name:

Joint Name:

If you don't which column to put something in, just put in the first one.

6. Add in the life insurance on your life, if you own or control the policy. This is the category that pushes many clients over the exemption amount. Most people forget to include their life insurance when calculating their taxable estate. While life insurance may be income tax free (and sometimes it isn't even income tax free!) it is not estate tax free.

That is how the calculation is done. Starting 1/1/2011 if your total is nearing or exceeds $1 million, you have federal death taxes to plan for. How your estate pays those is a subject of a different article.

So let's review. Start with your net worth, add in everything else, and then add in the death benefits from your life insurance. Still think a $1 million exemption is more than enough? I don't either.

There is some chance that the new Congress may take this issue up next year. However, one thing I have learned as an estate planner is this: don't rely on Congress to solve clients' estate planning issues! There are planning strategies available to protect you and your family and with the federal death tax coming back in 2011, it may be time for you to look at those.

Let me know if you have questions or comments on this article, or if you need help calculating your taxable estate. It is worth the few minutes it takes!

Bernie Greenberg

Happy Thanksgiving

2010-11-23T18:11:00.001-07:00

From us here, to you and yours, we wish you a Happy Thanksgiving holiday.

This entry is our first of many from a mobile device. Enjoy Thanksgiving with you and yours.

Bernie Greenberg

Our Site Has Changed

2010-11-21T16:51:00.000-07:00

Have you noticed? Our site has changed!

We have re-built our firm's website and hope you like the results. We have integrated our full website here to make finding information easier for you.

Please let us know what you think of these improvements and how useful they are for you.

We look forward to hearing from you.Are

Bernie Greenberg

Do You Know the Difference Between Your Probate Estate and Your Taxable Estate?

2010-10-14T14:20:00.000-06:00

Do you know the difference between your probate estate and your taxable estate? Knowing how they are different and how to use those differences to your advantage is a critical component to your estate planning

In this article we will explore those differences and why it matters to you and your family. First, two examples of the consequences of the differences.

1. Did you know that you could have a probate estate that did not generate any estate taxes? It's true.

2. Did you know that you could have a taxable estate worth millions but your probate estate was worth $0? That's possible too.

Both of these examples are possible because of the differences between the probate estate and taxable estate.

Second, what is an estate. In general terms, your estate is what you pass on when you die. But that is a huge over-simplification that ignores the differences we are discussing here.

Third, what is probate? Probate is the legal system in each state of transferring title from a deceased person's name into the names of the appropriate beneficiaries. Keep the idea in mind of the name on the title of something as you read on.

What is your probate estate?

Your probate estate is determined by how you OWN what you own. In other words, the probate estate is all about ownership which is all about titling.

Titling is how you own what you own. There are several ways you can own something and which way determines your probate estate. Here they are:

1. Title is in your name alone, with no named beneficiary.

Think of a bank account that is just in your name, that is an example of this first category.

2. The title is in your name along with another person as tenants in common.

Think of two sisters who own a house as tenants in common. (Note, this is not joint tenancy which is discussed below).

3. The title is in your name alone, but you have named someone as the beneficiary.

For this third category, think of a life insurance policy where you have named a beneficiary.

4. The title is in your name along with another person as joint tenants with rights of survivorship.

Here think of spouses who own their residence together as joint tenants. This form of ownership has the unfortunate illusion of seeming like a good idea. It's not, but that is the subject of a different article.

5. The title is owned by another entity like a trust that you established.

For this fifth category, think of someone who has placed real estate into a trust which they created.

The benefits and faults of each of these five forms of ownership is not discussed here, I will write about that another time. So go back and read again each of these five forms of ownership.

Categories 1 and 2 are in your probate estate. Categories 3-5 are not in your probate estate. Categories 3-5 are also known as probate free transfer devices. Again, we are not discussing which of these is better, just how it affects your probate vs. taxable estate.

What is your taxable estate? Your taxable estate is about what you own, direct and control even if you don't own the title to the asset.

Think of the five categories all added together. Then add all things that you get benefits from, direct or control. Even some gifts that you made in the past are included. The total of all of that is your taxable estate.

When you examine these differences it is possible to see how you can have a non-taxable estate that is entirely subject to probate; or a huge taxable estate that is entirely probate exempt.

In estate planning, you will need to be aware of these differences, now they affect your property and family and plan accordingly. Your estate plan, when thought through, will probably end up being some combination of all the forms of title we examined above.

How can you know the best way to proceed. Schedule a visit with your expert estate planning attorney before making any moves.

Bernie Greenberg

Note that federal tax law requires that we notify you that you cannot use this article or any portion thereof in any manner to attempt to evade federal taxes or penalties.

Communicating in the Modern World

2010-10-11T13:14:00.001-06:00

You may have noticed that many changes have occurred in the world of communications recently. It's not like several years ago when you would just write someone a letter or call them on the phone. Even the entire media industry has shifted and with the internet, newspapers are closing and how we get our information has also changed.

The purpose of this message is not to debate whether these changes are good or bad. I'm not so sure, but I do know that our world has shifted and because of the shift, it is important to embrace these changes and learn how to use them to your benefit.

These changes have certainly impacted how we communicate with you. We no longer publish a hard copy newsletter having shifted that to our firm's website several years ago. Now, there are many ways for us to get you information faster than ever before. I hope you are using at least one of these new information sources.

Let's review all the ways you can communicate with our firm and all the ways you can receive information from us:

There's the old standby, what is now called snail mail. When you actually send a letter in the U.S. Mail. Our mailing address is:

26 W. Dry Creek Circle, Suite 520
Littleton, CO 80120

The second old standby is the telephone. Here is our phone: 303.730.7100.

A third standy, the fax machine is also used, but less and less and will probably not exist sometime in the future. Here is our fax: 303.730.7195.

There are numerous more modern ways to also be in touch with us. These appear below and we encourage you to try them out. Just paste each address into your browser and each site a visit.

Our newsletter is now published on our firm's blog. We hope you follow it and enjoy our articles. You can find it here: http://bhgreenberglaw.blogspot.com and that is where you landed to be reading this article.

We still have our firm's website you can use it every day. Also, older newsletters appear there along with other important estate planning information. You can find our website here: www.bhgreenberg.com

We also now have our firm on Twitter. If you are using Twitter, you can follow us here: @BHGreenberg or http://twitter.com/BHGreenberg

We also have a presence on facebook. You can find us on facebook here: http://on.fb.me/atuS7Q

We are also on Linkedin and you can find us there at: http://linkd.in/bGKtUv

You will notice that when you follow us at these other places and in these other ways, you will receive more information about estate planning and estate taxes than ever. We also post articles from other sources that we think you will find interesting and useful in thinking about estate planning and your own finances. Try at least one of these other ways of being in touch with us and let me know what you think.

As always, thank you for your interest and support.

PS: Congress has failed to act to clean up their estate tax mess. There are numerous articles on our blog about this topic and how it affects your planning. After you read that, if you have questions, just let me know. And, you can even just give me a call or send me an email, just like in the old days.

Bernie Greenberg

The First & Most Important Element in Your Financial Plan

2010-10-07T13:29:00.003-06:00

The First & Most Important Element in Your Financial Plan: How to make sure your financial house is built on a solid foundation.

Most people agree that planning finances is important. Most agree that if they don't have a financial plan, they would like to have one some day.

Even if you have a financial plan, how do you know if it is built on a solid foundation? That is a critical question and we will explore here how to make sure your plan has a solid foundation.

Let's start with a basic premise. Any structure, including your financial plan requires a sold foundation. Whether a house, building or financial plan, the structure will ultimately fail if the foundation is not solid.

Imagine a pyramid, it looks like a triangle with the point of the pyramid at the top.

The bottom of the triangle or pyramid is the foundation. Because everything rests on the foundation, we want NO risk in that foundation. That foundation must support the entire structure in any kind of situation, storm or trouble. That is why pyramids are built like this and they have certainly withstood the tests of thousands of years.

Unfortunately, most financial plans are not structured this way. In fact, if you turned the pyramid with the top on the bottom, that is how most plans are built. In complex legal lingo, we call such a plan top-heavy. To use more complex lingo, the plan is ass-backwards. The slightest wind or trouble will topple that plan.

How is it possible that such an important structure, your financial plan, could be made upside down? The answer is more simple than you may think. Most plans do not protect against the biggest risks first. Such plans are focused on what to invest in, funding retirement, college education for kids and other similar and important goals.

But such a plan is upside down because they are built on a false assumption. The false assumption is that you will make the money necessary to deposit into the financial plan over the right number of years in order to make the plan work. That length of time is called the plan horizon. The assumption is false because it fails to anticipate that you may not be able to meet the plan horizon due to illness, disability or death.

Said another way, upside down financial plans fail because there is NO foundation. The foundation of any properly constructed plan has to protect against the WORST that can happen first. Not last, but first. A proper plan must first assume that you will not meet the plan horizon and have contingencies built into the plan that will still allow the plan work as intended.

We get now to the first and most critical step in any financial plan: estate planning. You read that right, estate planning. The first step in building your financial plan is to START with your estate plan. This is because your estate plan is about protecting against the worst risks first. Your estate plan is what protects your blind side.

I won't cover here the elements of a proper estate plan here, you can read about that elsewhere here on my blog. Suffice it to say though, that your estate plan covers YOU, your loved ones and your property if anything happens to YOU. A proper Will, perhaps a trust for the kids, Durable Powers of Attorney; a Living Will; proper beneficiary designations, life insurance, health insurance, proper auto and home insurance, and disability insurance are all important pieces of this foundation.

Don't let your financial plan fail because it is built upside down. Make sure that your plan is built on a solid foundation of your estate plan. Insist that you and your loved ones be properly protected. Remember, friends don't let friends drive with an upside down financial plan. Don't let your own plan be hazardous to your family and your wealth.

Bernie Greenberg

Where Did All The Money Go?

2010-10-05T16:28:00.000-06:00

Where Did All The Money Go?

That's a very good question. If you don't know what I am referring to, I am referring to $2 trillion. That's a lot of money, and I'd like to know where it went.

What $2 trillion you ask? Did you know that for the first time in history (recorded or otherwise) a government has spent $2 trillion in just 18 months!! According to Colorado Senatorial candidate Michael Bennet, there is nothing to show for that money!

Here's what happened: the current administration is the first government ever, to spend $2 trillion in just 18 months. I am not going political in this article, I just want to know where the money went. It is simply inconceivable for the administration to have spent that much money and not know where it went and what the country got for that much spending.

So I pose the question: where did the money go? Do you know? Bennet says it was wasted and we have nothing to show for it. We know it didn't improve the economy or the help with unemployment. So where did the money go? Does anyone in Washington actually know? Does anyone there actually know what they are doing?

If you know, let me know and maybe send a message to Michael Bennet and let him know too.

Top Five Reasons You Should Have DPOA's

2010-08-23T16:37:00.000-06:00

The Top 5 Reasons You Should Have DPOA's

You may be asking, what in the world is a DPOA? That's a good question and before I get into the top 5 reasons you should have them, let's explore what a DPOA is.

DPOA stands for Durable Power of Attorney. This is a legal document where you specify who YOU want to make decisions for YOURSELF if you become incapacitated. By incapacity, I mean when you cannot communicate your own decisions due to illness, infirmity or any other reason.

There are two types of DPOA's. First, there is the financial type. The second type is for health care or medical decisions. These are two separate legal documents which CANNOT be combined. Here's why:

1. Each type of DPOA is governed by different state laws.
2. Each DPOA deals with different subject matter and has it's own individual structure.
3. It is common for people to want one person handling their money if they are incapacitated and a different person talking to their doctors.

For those three reasons, it is customary to have a Financial Durable Power of Attorney and a separate Health Care Durable Power of Attorney.

A word about why it is called "durable". A Power of Attorney that is not "durable" is revoked as a matter of law when the principal (the person who is making the Power of Attorney) becomes incapacitated. A Power of Attorney which is durable, survives the incapacity of the principal.

Now on to the top five reasons you want the two types of Powers of Attorney:

1. To protect yourself. When you have a Durable Financial and Health Care Power of Attorney, it is YOU who decides who YOUR decision maker will be if you are incapacitated. These "agents" are people you have decided, after due deliberation, you trust to make decisions for you if you cannot make them for yourself. This is crucial with our HIPAA laws because you can name your HIPAA personal representative in the document. Without that, because of HIPAA, it is difficult to obtain medical information about you when you are sick or injured.

2. The law will not protect you. State laws provide for who will make decisions for you if you fail to adopt the two types of DPOA's. However, if they are the same person you would choose, it would be coincidence and only by chance. This is especially true for unmarried persons, or people in unconventional relationships.

Also, because of the HIPAA laws (medical information privacy laws) it is crucial that you have designated someone that can speak with your doctors and medical providers. This is done in a DPOA.

3. To protect your property. The Financial Durable Power of Attorney allows you to select someone you trust to handle your money and property if you are incapacitated. This affords you much greater comfort than having a Court supervised Conservatorship appointed for you. Your choice is generally always better than the choice forced on you by law.

4. To protect your family. By naming your own decision maker you can protect your family by creating greater likelihood that your choices and plans for yourself and family will occur if you are disabled. This affords greater protection and comfort to you and your family. This is not completely foolproof however. The key is choosing your agent wisely.

5. To avoid conflict in the family when you are sick. Nothing will tear a family apart faster than conflicts over who should be your decision maker. When you create your DPOA's, you can, in most cases, eliminate conflict over who should make your decisions if you are incapacitated. To have your own choices respected and enforced will always help you sleep better. Again the key is to choose your decision makers wisely.

Those are my top five reasons I think you should have DPOA's. If you have others, or any questions, please get in touch with me or leave a comment.

Bernie Greenberg

The 5 Top Reasons to Have a Will

2010-08-16T13:00:00.000-06:00

The 5 Top Reasons for Having a Will

Before I get into the five top reasons for having a Will, I want to invite you to follow our blog and become a contributor with your comments and questions. Your contribution and participation will help to make our blog better.

Like our recent article about the 5 top reasons for having an estate plan, there are many, many reasons for having a Will. This article will focus on what I believe to the be the top five reasons. You might have reasons that are not discussed here and if so, let us know.

1. You get to pick your Executor or Personal Representative

This is an important reason and introduces the concept of having a Will so your choices are recognized vs. those of your state. When you have a Will, you can choose who will administer the Will and your estate. This is an important, fundamental power that you should not surrender.

2. Your kids won't have to go to foster care, even temporarily.

Most clients with children don't want their kids to spend any time in foster care. But if you die without a Will, this is a real possibility. With a Will of your own, you can provide for the guardianship of your kids to make sure that this doesn't happen.

3. Your pets won't have to go to a shelter or be euthanized.

For many clients their pets are like children and they want to be sure the pets are cared for if something happens. With a Will you can provide for custody and living arrangement for your pets. Those arrangements are problematic without a Will.

4. Your property will go to who YOU want when YOU want.

If you die without a Will, the state provides one to you in the form of the state's laws of intestacy. So, if you want your property to go to certain persons in a specific way, then creating a Will is a must. Otherwise, the state will dictate where your property goes and if property ends up where you want, it's only a matter of coincidence.

5. You can protect your children or loved ones from wasting their inheritance and destroying your legacy.

Most clients I speak with are adamant that they do not want large sums of money delivered to their children at young ages. If you don't want your kids inheriting your estate at an early age line 21, then creating a Will is a must. In your Will, you can stage the delivery of a child's inheritance until they achieve an age that you believe is more suitable for handling money and property. Who wants their estate to be wasted buying a $200,000 car for an 18 year old? If you don't, then you need to create a Will.

A final thought. I have written before on the dangers of internet Wills and Wills from software programs. I encourage you to read that article. One popular internet Will is being sold by one of OJ's lawyers. In a recent poll we conducted, not one person who responded was interested in buying an internet Will from that source.

We recommend that you deal with a qualified estate planning attorney when you decide it's time to create your Will and estate plan.

Let us know if you have other reasons for creating a Will.

Bernie Greenberg

The Top 5 Reasons You Should Complete Your Estate Plan

2010-08-12T12:32:00.000-06:00

The Top 5 Reasons for Completing Your Estate Plan

There are hundreds of reasons for you to complete your estate planning. Recently at a talk I gave on estate planning and Wills and Trusts, I was asked, "Bernie, what are the top 5 reasons I should do an estate plan"?

That's a great question because it forces us to really focus on the true reasons that estate planning in some form is necessary for everyone. I mean everyone, regardless of age, relationship status or wealth.

So here we go, the top 5 reasons you should complete your estate plan ASAP:

1. Certainty

Your estate plan creates certainty. For yourself, your family, your pets and your property. A good estate plan will ensure that what you want to happen and when you want it to happen will.

2. Creativity

Since it's your estate plan, you can be as creative as you want to be. Your only limitations are: how much you want to spend and keeping it legal.

3. Continuity

All of us have plans for the future. Some of those plans involve ourselves, and some involve our loved ones. A good estate plan can make sure that those plans will happen and your dreams for your family can continue into the future even if you are not here to see it occur.

4. Comfort

Having a good estate plan will make you feel more comfortable. Comfortable knowing that you have protected those and that needing protection. You will be comfortable knowing that you have done what less then 20% of adults have done--your estate plan. You will have thought through those issues we all avoid and don't think about. And that brings an incredible sense of comfort.

5. Confidence

A good estate plan will create confidence for you and your family. Knowing that they are protected and cared for makes you more confident to live your life. Never again will go to sleep worrying.

Those are the top 5 reasons I think you should complete your estate plan. Maybe you have others. If you do, I'd like to hear from you and would also like to hear from you if you have comments or questions about this list.

Bernie Greenberg

How to Control Your Future

2010-08-11T13:09:00.000-06:00

That would be great wouldn't it? Controlling our futures? Is this something out of science fiction? No, it is something that anyone can do.

So how can you control your future? With estate planning of course! Estate planning, once complete, is a process that allows you to control the outcome of future events.

Now, we are not talking about controlling what happens in the future. That would be beyond what estate planing can accomplish. What estate planning allows you to do is to control outcomes of an uncertain future.

How about some examples:

1. We cannot predict our health in the future. With estate planning, you can control how you are treated and who would make decisions for you if you suffered incapacity. That's controlling the future.

2. We cannot predict WHEN we might die. But with estate planning, you can control how your property is handled, who would raise your children or pets and many other things if you suffered an untimely death.

These are only two examples of hundreds of others of how you can control your future with estate planning. So if you are interested in having some control over how your future will turn out, start by completing your estate plan.

Plagiarize This: I Dare You!

2010-07-14T09:06:00.000-06:00

Yes, plagiarize this article, I dare you!

There is currently a plagiarism scandal raging in Colorado involving former Senator Scott McInnis who is running for Governor.

First, let's be clear on my position on plagiarism. It is wrong and indefensible under any circumstances. There should be strict and serious consequences for stealing the intellectual work of another. McInnis should face whatever consequences come his way.

But this article is not about plagiarism. This article is about political BS, duplicity and double standards.

All those currently calling for the head of Scott McInnis, were strangely silent or even defended the perpetrator of an even more serious case of plagiarism. You see, a serial plagiarist is our current Vice President, Joe Biden.

Biden, while a US Senator was found guilty of numerous acts of plagiarism. For whatever reason, he meekly apologized and that was it. Many now calling for the political demise of Scott McInnis, strangely, defended Joe Biden.

Why weren't their acts of misconduct on par? One reason, politics. You see, if you are on the "right side" of things, you can get away with any manner of wrongdoing and it is defended and forgiven.

But have the temerity to be on the "wrong side" and you are doomed. I do not defend Scott McInnis here. I think his career in politics should be over. But if his career is done, then all those now calling for him to withdraw from politics should also be insisting on the immediate resignation of Joe Biden.

Isn't that what fairness means?

Too Rich to Live? - WSJ.com

2010-07-12T12:05:00.000-06:00

This article from the Wall Street Journal is a graphic example of the issues we have been writing about now for two years. This is the disaster created by Congress. Why Congress has done this and refuses to fix this problem is anybody's guess. As one of the most famous estate planners in the US, Conrad Teitell has said, this is unconscionable.

Please let me know your thoughts about this article and this issue.

Too Rich to Live? - WSJ.com

Common Myths about Estate Planning & How to Avoid Them

2010-06-29T06:48:00.001-06:00

Here are several common myths about estate planning. Let's review these and how to protect yourself and your family.

1. Estate planning is only for rich people. This the most prevalent myth about estate planning and probably the most dangerous. It is not true in any way. While wealthy people need estate planning like everyone else, they benefit from an a subset of estate planning that focuses solely on death taxes.

Protecting yourself and your family in the event of an unplanned illness; disability or death does not depend on how much money you have. The focus and estate planning tools to solve these issues are asset independent.

2. The Congress will solve the death tax problem. This is the current popular myth and also dangerous. It is now July and Congress has done nothing to solve the estate tax crises they created by not acting before the end of 2009 to extend the $3.5 million estate tax exemption. Not only does Congress show no interest in fixing the 2010 and 2011 disaster, they have announced that they have no plans to do so.

Relying on the government to solve your problems may be popular now, but it is very dangerous to you, your family and your property. Since there exist simple tools and strategies to solve this latest Congressional problem in estate planning, a good question is, why would you even believe that the government can fix this for you?

3. I don't have any assets so I don't need an estate plan. This myth is actually a case by case issue. It could be true only if all of the following are true for you:

A. You have no assets, no insurance, no retirement, no IRA or 401(k) and are permanently unemployed.

B. You have no family.

C. You don't care what happens to yourself if you are sick or incapacitated.

If you don't meet all of the above criteria, then an estate plan in some form is appropriate for you.

4. Estate planning is expensive. This myth is also untrue. Most people spend more money and time each year on their annual vacation then they spend in their lifetime on their estate plan. Many estate planning solutions are either free (a Living Will) or cost almost nothing when compared to the problems and crises that they solve.

I hope this article clears up these common estate planning myths for you. If you you have questions, please contact me. Our mission is to make the world better one estate plan at a time. Why not start your estate planning today? Now, that's a good question!

Bernie Greenberg

In Honor of Memorial Day: A Real Judge's Words

2010-05-28T12:51:00.000-06:00

In the words of this Judge, in the Richard Reid case, the meaning of the sacrifice of so many, for us and our country is evident.

I want to acknowledge and thank Robert Armstrong of the American Academy of Estate Planning Attorneys for sending me this transcript.

Here are the Judge's remarks fromthe transcript of the sentencing remarks by the Federal District Judge in the Richard Reid case:

Ruling by Judge William Young, U.S. District Court

Prior to sentencing, the Judge asked the defendant if he had anything to say. His response: After admitting his guilt to the court for the record, Reid also admitted his "allegiance to Osama bin Laden, to Islam, and to the religion of Allah," defiantly stating, "I think I will not apologize for my actions," and told the court, "I am at war with your country."

Judge Young then delivered the statement quoted below:

January 30, 2009, United States vs. Reid.

Judge Young: "Mr. Richard C. Reid, hearken now to the sentence the Court imposes upon you.

On counts 1, 5 and 6, the Court sentences you to life in prison in the custody of the United States Attorney General. On counts 2, 3, 4 and 7, the Court sentences you to 20 years in prison on each count; the sentence on each count to run consecutively. (That's 80 years.)

On count 8, the Court sentences you to the mandatory 30 years again, to be served consecutively to the 80 years just imposed. The Court imposes upon you, for each of the eight counts, a fine of $250,000; that's an aggregate fine of $2 million. The Court accepts the government's recommendation with respect to restitution and orders restitution in the amount of $298.17 to Andre Bousquet and $5,784 to American Airlines.

The Court imposes upon you an $800 special assessment. The Court imposes upon you five years supervised release simply because the law requires it. But the life sentences are real life sentences, so I need go no further.

This is the sentence that is provided for by our statutes. It is a fair and just sentence. It is a righteous sentence.

Now, let me explain this to you. We are not afraid of you or any of your terrorist co-conspirators, Mr. Reid. We are Americans. We have been through the fire before. There is too much war talk here and I say that to everyone with the utmost respect. Here in this court, we deal with individuals as individuals and care for individuals as individuals. As human beings, we reach out for justice.

You are not an enemy combatant. You are a terrorist. You are not a soldier in any war. You are a terrorist. To give you that reference, to call you a soldier, gives you far too much stature. Whether the officers of government do it or your attorney does it, or if you think you are a soldier, you are not--you are a terrorist. And we do not negotiate with terrorists. We do not meet with terrorists. We do not sign documents with terrorists. We hunt them down one by one and bring them to justice.

So war talk is way out of line in this court. You are a big fellow. But you are not that big. You're no warrior. I've known warriors. You are a terrorist. A species of criminal that is guilty of multiple attempted murders. In a very real sense, State Trooper Santiago had it right when you first were taken off that plane and into custody and you wondered where the press and the TV crews were, and he said, 'You're no big deal.'

You are no big deal.

What your able counsel and what the equally able United States attorneys have grappled with and what I have, as honestly as I know, tried to grapple with, is why you did something so horrific. What was it that led you here to this courtroom today?

I have listened respectfully to what you have to say. And I ask you to search your heart and ask yourself what sort of unfathomable hate led you to do what you are guilty and admit you are guilty of doing? And, I have an answer for you. It may not satisfy you, but as I search this entire record, it comes as close to understanding as I know.

It seems to me you hate the one thing that to us, is most precious. You hate our freedom. Our individual freedom. Our individual freedom to live as we choose, to come and go as we choose, to believe or not believe as we individually choose. Here, in this society, the very wind carries freedom. It carries it everywhere from sea to shining sea. It is because we prize individual freedom so much that you are here in this beautiful courtroom, so that everyone can see, truly see, that justice is administered fairly, individually, and discretely. It is for freedom's sake that your lawyers are striving so vigorously on your behalf, have filed appeals, will go on in their representation of you before other judges.

We Americans are all about freedom. Because we all know that the way we treat you, Mr. Reid, is the measure of our own liberties. Make no mistake though. It is yet true that we will bear any burden; pay any price, to preserve our freedoms. Look around this courtroom. Mark it well. The world is not going to long remember what you or I say here. The day after tomorrow, it will be forgotten, but this, however, will long endure.

Here in this courtroom and courtrooms all across America, the American people will gather to see that justice, individual justice, justice, not war, individual justice is in fact being done. The very President of the United States, through his officers, will have to come into courtrooms and lay out evidence on which specific matters can be judged and juries of citizens will gather to sit and judge that evidence democratically, to mold and shape and refine our sense of justice.

See that flag, Mr. Reid? That's the flag of the United States of America. That flag will fly there long after this is all forgotten. That flag stands for freedom. And it always will.

Mr. Custody Officer. Stand him down."

Thank you Judge Young, and all the others who, every day, prove why we remember those who sacrificed everything for us this Memorial Day weekend.

Bernie Greenberg

Memorial Day is Here & Still No Congressional Action on Estate Taxes

2010-05-25T12:41:00.000-06:00

Memorial Day is Here & Still No Congressional Action on Estate Taxes

After five months now we still await Congressional action on the estate tax mess they created in opposition to President Obama's promise the $3.5 million estate tax exemption would be extended.

In even in the face of withering criticism from every quarter nationally, Congress has yet to act. President Obama's proposal to extend the 2009 estate tax rules has broad national support from taxpayers, estate planning professionals, tax accountants, and commentators.

The mess that Congress has created is immeasurable. Increased cases of assisted suicide, matricide and fratricide have been reported. An episode of Law & Order even addressed the motivation to murder a rich relative in 2010 due to the one year repeal of the federal estate tax.

Senator Bennet has refused to respond to my open letter on this crucial issue. Other members of Congress also refused to respond to the open letter published by world famous attorney and charitable expert, Conrad Teitell.

We will continue to keep you apprised of any developments, however the time for Congress to act in 2010 is narrowing.

Thank you as always for your interest and support.

Michael Bennet Why Have You Forsaken Us?

2010-05-14T12:55:00.000-06:00

An Open Letter to Michael Bennet: Has Michael Bennet forsaken us? Does he say one thing in his political ads here in Colorado but do something different in Washington? You be the judge.

Michael Bennet has been telling us (ad nauseum due to his war chest)that he supports small business and that small business will "drag us out of this great recession". Aside from whether this is a "great" recession, I happen to agree with Mr. Bennet. I agree, and all the statistics suggest, that most, if not all, job growth and job creation comes from small business.

The curious thing is though, if Mr. Bennet believes in small business, why does he vote every time against small business and the owners and founders of small businesses? I don't know the answer, but I would like Mr. Bennet to tell us.

Skeptical of whether Michael Bennet's positions? Me too. So let's look at a few examples.

1. Card Check. This is generally accepted as the worst jobs killing bill ever considered in the U.S. Congress. If Mr. Bennet is a champion of small business, why would he support a bill that eliminates jobs by the thousands, especially jobs for minorities and women?

2. 2010-2011 Estate Tax Changes. Nothing destroys small businesses faster than when the business has to be closed and liquidated to pay federal death taxes. Starting on January 1, 2011, the largest estate tax increase in American history goes into effect. Now when an owner of a small business dies, if her estate exceeds $1 million, counting everything, including life insurance, home, savings and the business, the business is gone just to pay this onerous tax. Mr. Bennet's position? He seems to favor this result because he has done nothing to prevent this from occurring. This is one of the more racist and sexist laws we have because it penalizes people on the lower end of the wealth spectrum. Shouldn't Mr. Bennet favor an estate tax structure that makes it easier for people to keep their small businesses? I think so.

There are numerous other examples that I won't go into here. So I ask the question that I started with. Shouldn't we expect our politicians to do in Washington what they promise us here? Michael Bennet, why have you forsaken us?

Bernie Greenberg

The 75 or the 25: Which Group Are You In? If You Are Not In the Good Group, You Have Work To Do!

2010-05-14T06:26:00.001-06:00

Yes, the 25 or the 75, an interesting look at two groups that have been studied by experts for decades. Which group are you in?

Of course, I'm speaking about which groups have done their estate plans, because, of course, I write about estate planning. All reliable studies show that around 25% or less of adults have done their estate plans and far fewer keep the plan current.

The purpose of this article is not to explore why so few people have done their estate plan. That has been studied and debated for so long now, rehashing all the theories is not very useful. The purpose of this article is simply to point out that these two groups exist and to encourage more of you in the 75% group to get your estate plan done.

So let me offer this encouragement in this article. Estate planning is about protecting your family. It is one important and tangible way you demonstrate how much you care about your family.

Please consider this thought: estate planning is not about how much money you have, but all about how much you care for those people you do care for and about. Estate plans come in all shapes and sizes and are not very expensive for what they do for your family.

Let me know your thoughts and if you have questions about starting or completing your estate plan. Let's work to reverse those numbers.

Thanks, as always, for your interest and support.

Bernie Greenberg

Have You Addressed Potential Long Term Care Needs?

2010-05-06T14:07:00.000-06:00

What to do about long term care and potential long term care needs, that is the question. Have you addressed this potential need for yourself and family?

If not, this is a good time to sit down with a long term care specialist and review your options.

Long term care expenses increase every year with no end in sight. While we all hope we will never face this need, the cost if you do is alarming.

The average annual expense of long term care in the Rocky Mountain Region is approximately $80,000 and growing. That's for every year of long term care! Medicare does not cover long term care needs and Medicaid is only available for people with little money and hardly any assets.

If you would like to visit with the specialist we recommend to discuss these potential needs, please give me a call and we will be happy to refer you.

As always, thank you for your ongoing interest and support.

Bernie Greenberg

Reviewing your Homeowner's & Auto Insurance

2010-04-28T14:07:00.000-06:00

Have you reviewed your coverages recently? If not, it's now time.

I have written in prior articles about the importance of keeping all of your planning current. This is actually quite easy if you follow the critical step of reviewing your planning periodically.

In our litigious society, this is even more important with your homeowner's insurance and auto insurance!

These insurance coverages will not only protect you and your assets, in most states having auto insurance is the law.

So how do you get these coverages reviewed? You call your agent, or if you don't have an agent, I recommend that you call the insurance expert that we use and refer our clients to. That person is J.P. Gudka in Colorado. You can reach J.P. by calling 303-752-2999.

Reviewing these two insurance coverages will allow you to feel comfortable about protecting your family and assets. So if you haven't done your 2009-2010 review yet, please, for the sake of your family, get it done soon.

Thanks as always for your interest and support.

So What Else is New? No New Good News Out of Washington on Estate Taxes

2010-04-22T09:24:00.002-06:00

I wish I had better news to report to you on estate tax developments. There is none. There is no movement in Washington to fix the federal estate tax mess that Congress created.

We assumed that after health care reform, Congress would take up the estate tax and actually fix their mess. So far, that assumption is not correct.

What should you do? If you haven't reviewed your plan to learn how it is affected by the 2010 and 2011 estate tax changes, it is imperative that you do so ASAP. Call me with any questions.

Estate Planning News for March 26, 2010: READ NOW!

2010-03-26T07:24:00.000-06:00

Estate Planning News for March 26, 2010

Due to congressional inaction, the world of estate planning, as well as your estate remains in total upheaval for 2010. Here is a list of issues to focus on:

1. Our Client Alert concerning the 2010 estate tax changes remains in effect. If you haven't reviewed your existing plan to understand how it is affected by the 2010 estate tax rules, it is time to do so now.

2. The 2011 estate tax changes (in current law) are even worse. Even if your estate plan works for 2010, is it flexible enough to deal with the coming estate tax disaster that is 2011? If you don't know, it's time to find out.

3. Many people have still not revised their Powers of Attorney to incorporate HIPAA provisions. This is vital for you and your family. If you haven't revised your Powers of Attorney, it's time to take care of this issue.

4. Congress has passed the health care bill and the president has signed this sweeping and in many cases life changing legislation. Stay tuned for more reports on how this affects your estate planning. One area you will notice right away is the federal government's take over of your diet. More on this alarming change soon.

Call or email me at any time with questions or to discuss these issues. Thank you.

Bernie Greenberg

CLIENT ALERT LETTER--IMMEDIATE ACTION ADVISED CONCERNING 2010 ESTATE TAX CHANGES

2010-03-18T14:26:00.000-06:00

B.H. GREENBERG & ASSOCIATES
26 W. DRY CREEK CIRCLE, SUITE 520
LITTLETON, CO 80120
303-730-7100

CLIENT ALERT LETTER--IMMEDIATE ACTION ADVISED

On January 1, 2010, we entered uncharted territory with the federal estate tax system. You may have already read about these changes, however, this alert letter is to advise you of the current status of the 2010 estate tax rules and advise you how to proceed. Ignoring these changes or pretending that they do not apply to you will be hazardous to your estate and beneficiaries. If your estate plan divides into a marital and family trust at the first death, it needs to be reviewed immediately. This is due to the 2010 changes in federal estate tax laws that are detailed below.

Back in 2009 we had a $3.5 million estate tax exemption with full step-up in basis. Those rules are now gone. For 2010 there is no exemption because there is no federal death tax. Also gone are the unlimited marital deduction on which your plan is based and the step-up in basis. For 2010 we now have carry-over basis. This means a new tax if a beneficiary inherits property which grew in value in the hands of the decedent. These new basis rules are beyond the scope of this letter. Suffice it to say that everything you once heard or knew about federal estate taxes no longer applies.

It is uncertain how your current documents will work under these new rules. This is because several provisions of your documents are phrased in terms of the estate tax exemption and marital deduction which have been repealed for 2010. Because these tax concepts are not in the law for 2010, there may be questions about what your documents mean and how they will work. This could cause serious tax questions to arise that could require involvement of the courts to resolve. This is not the reason you created your estate plan and why we are urging you to review your plan with us immediately.

Please call us as soon as possible to arrange a meeting to review your estate plan and to determine whether any revisions are necessary to protect your property and family. We look forward to seeing you and reviewing these changes with you in greater detail.

Sincerely,
Bernie Greenberg
Bernard H. Greenberg

CIRCULAR 230 DISCLOSURE
Federal tax regulations require us to notify you that any tax advice in this communication was not intended or written to be used, and cannot be used, for the purpose of avoiding any tax or penalties

Living Wills; Last Wills; DNR's: What's the Difference and How do They Work?

2010-03-12T13:27:00.000-07:00

I have been asked many times recently to describe the differences between Wills; Living Wills and DNR's. That's a great question and the subject of this article.

Let's start by defining our terms and explaining what each of those actually is.

Last Wills: This is a dispositive document I wrote about in the 8 Steps to Getting Yourself in Order. A Last Will, or Will for our purposes, is a legal document which handles the disposition and distribution of your property AFTER your death. The Will can also create trusts for your spouse, children; appoint guardians for children and many other things. The key is that a Will has no force or validity during your life.

Living Wills: A Living Will addresses your wishes about life support measures and artificial feeding tubes at the end of life if you are in a coma. It is completely different from a Last Will because a Living Will is in force during your life and has no validity after death. It is an important document to express your wishes about how you want to be treated if you are in this condition. If you sign a Living Will, it becomes mandatory. Compare granting authority to a trusted person to make decisions for you with a Health Care Durable Power of Attorney.

DNR or Do Not Resuscitate Statement: A DNR expresses your instructions about not being resuscitated under certain circumstances. It is generally useful for elderly clients, since most of us wish to live if possible, even if measures are necessary to restart our hearts if we stop breathing. People in accidents; swimming incidents and even chest injury situations typically wish to be resuscitated unless they are elderly. Even some older clients wish this to be true. Before signing a DNR, carefully think through your desires and goals.

All three of these planning tools are important, but involve completely different situations and consequences. Always discuss each of these with your estate planning attorney before signing such documents.

I hope this is helpful and if you have further questions, feel free to give me a call at: 303-730-7100. Thank you for your interest and support.

Baby Ita s Cold Outside, Better Call Your Estate Planner - Topix

2010-01-29T20:33:00.000-07:00

Baby Ita s Cold Outside, Better Call Your Estate Planner - Topix

t's cold here in Philadelphia on this last Friday in January, and some spouses may feel they've been left out in the cold if the federal estate tax is not reenacted and applied retroactively in 2010.

Read the rest at the link above.

Good, you've decided to start your estate plan. What do you do next? Here are the steps to follow.

2010-01-27T06:25:00.000-07:00

It's great that you have decided to start your estate plan. So what do you do next? Follow these steps to prepare for your meeting with us:

A. Gather Information

1. Gather together all documents like: deeds to real estate; bank account, brokerage firm account, and IRA account statements. If you don't have any of these, don't worry, these are not necessary for your estate planning.

2. Find your life insurance policies, if any.

3. Find your marriage certificate, divorce documents, pre-marital agreements or anything similar, if any.

4. Write down names and dates of birth for your spouse and children if you have a spouse or children.

5. Read the 8 Steps to Getting Yourself in Order on our blog at: http://bhgreenberglaw.blogspot.com to help you learn how to think about your estate planning.

B. Think about these issues:

1. Who do you want to make decisions or control your money if anything happpens to you?

2. Who do you want to receive your property when you die and are they old enough or capable enough to do so?

3. Are you aware of how taxes impact your situation? If not, just write down what you think about the question. Remember, estate planning is not just for people with money or lots of property.

4. Who should raise your children if something happens to you?

5. Are special arrangements for your pets or business appropriate?

6. Do you have a direct or network marketing business?

If you prepare using these simple steps, your initial estate planning meeting with us will be productive and provide you with what you need to proceed with your estate planning. If you have questions or want to discuss how to prepare for your initial meeting, just give me a call at: 303-730-7100.

If you are receiving this message via email it is because you are subscribed to our blog by email. If you would just prefer to read the blog on the web, go to: http://bhgreenberglaw.blogspot.com and you can do so.

Thank you for your interest in your estate planning.

Bernie Greenberg

When is the Right Time to Begin Your Estate Planning

2010-01-21T15:44:00.001-07:00

Do you know the right time to begin your estate planning? The answer surprises many people.

When I posted this question online, the only person who had the right answer was my friend and real estate expert, Lea Rogers.

The right time to begin your estate plan is before ANYTHING happens. I know, it sounds trite, and this is not a trick question. I mean before anything happens. That is the right time to begin your estate planning.

So, if that is the right time, before anything happens, then the real time to begin is now. Right now, because that is the only way you can be sure to begin before anything happens.

Lea correctly used the example of the terrible earthquake in Haiti to illustrate what we mean by anything. Accidents, illnesses, disabilities are, for the most part, unpredictable events. Because life is unpredictable, we can create some certainty in our lives by completing our estate plans. If we do this now, before anything does happen, we know that we have started our planning at the right time for us.

So, the answer to the little question that started this article is NOW. Now is the right time to begin your estate plan.

If you already have an estate plan, then now is the right time to review that plan.

Bernie Greenberg

Thought for Wednesday....Just Maybe....

2010-01-20T08:11:00.000-07:00

With everything going on now in our world, this seems like a difficult time. Political strife; natural disasters; economic difficulties; sometimes it seems just overwhelming.

I normally only write about legal and estate planning topics, but I felt today like doing something different. My friend, Rob Thomas has a song out now that I feel has a message I wanted to share with you today.

So with thanks to Rob Thomas and giving him full credit for this message, here goes:

Maybe, someday, we'll figure all this out.
Get rid of all our doubt and
Find a way to make things better.

Baby, someday, we'll live our lives out loud.
We'll be better off some how,
Someday.

I take comfort from Rob's words because I believe them, I believe that anything is possible and I hope you do too. Someday.

Bernie Greenberg

Getting Yourself In Order Step 8: Review, Review, Review

2010-01-13T17:19:00.000-07:00

In our series on how to get yourself in order, we are at the last step. Step 8 is Review, review and review. Why do we review? Well more on that below, but first, let's review the first seven steps to getting yourself in order.

1. Protect your house. This means getting the right homeowner's insurance and liability coverages in place.

2. Protect your car. This means getting the right car insurance, including liability coverage in place.

3. Provide for decision makers in the event of your disability. This means getting Durable Powers of Attorney with HIPAA provisions in place.

4. Create your dispositive document. This means do having a Will or revocable trust and working with an attorney who specializes in estate planning.

5. Synchronize your beneficiary designations on your insurance, IRA and 401(k) with your estate plan.

6. Beware of Uncle Sam in your planning. This means to consider the tax implications of what you do in your plan so as not to create any hidden tax traps.

7. Choose the right advisors. This one speaks for itself.

If you read the articles below you will find that each of these steps is discussed in detail.

Now what about reviews? Getting yourself in order is not something that you do just one time and forget about. It is an ongoing process. It's organic and that means that it is always subject to change. Changes like these:

1. Change in yourself. Your thinking and circumstances change from time to time and what you did a couple of years ago may not be how you decide today.

2. Change in your family structure. Marriage, babies, divorce, illness and death can create change in your family structure requiring a change in your planning.

3. Change in the laws. 2010 is a great example. Estate plans created with tax planning before 2010 were made obsolete by the 2010 estate tax law changes. Do you know how these changes in the law affect you? The only way is to do periodic reviews of your plans and arrangements.

That's why we recommend to all of our clients to have a review meeting with us at least once every two years. This permits us to review current situations in light of an older plan. By reviewing, we can synchronize your current situation and goals with your plan documents.

This concludes our series on Getting Yourself In Order. We hope you enjoyed the series and found it useful and informational. If you have any questions about any of the eight steps, feel free to email or call me anytime.

Bernie Greenberg

Why Did Congress Decide to Take Money from Widows and Orphans?

2010-01-07T10:47:00.000-07:00

This is a very good and very important question. I can't even pretend to be cynical enough to guess at the answer. Are you aware of this? If you are not, you have exposed your family to severe financial penalties.

How did this come about? It is the result of Congress's failure to extend the estate tax exemption and unlimited marital deduction into 2010. I will cover this in greater detail in future articles, but suffice it to say, this has created a financial and tax disaster for surviving spouses and children.

For the last 30 years the bedrock of estate planning has been the unlimited marital deduction. Since 1981, spouses could take comfort from knowing that there would be no estate tax at the first death between spouses. The estate tax burden was shifted to the second death. Starting January 1st of 2010, this is no longer the case.

Now the surviving spouse is faced with a new death tax that must be reckoned with in every case because there is no marital deduction. The federal estate tax has been replaced with a brand new tax on inherited assets. This is because the basis step up that occurred at the decedent's death is gone. Again, I'll get into more details in later articles. Now the surviving spouse must calculate basis in the assets of their deceased spouse and do complex and expensive tax planning at the first death.

Since most surviving spouse are women, this is a highly discriminatory new tax. While you ask a good question, "Why did Congress decide to take money away from widows and orphans"? I am sorry to say that there is answer, good or bad.

Stay tuned as we get into greater detail about Congress sticking you with the largest lower and middle class tax increase and boondoggle in U.S. history.

How Congress Turned Estate Taxes Into An Asteroid That Hits Taxpayers on January 1, 2010

2009-12-16T16:37:00.003-07:00

The estate tax asteroid. If you have read my articles you know I have written many times on this topic. Recently I was asked, "Why do you call it an asteroid and why is it bad?" Those are great questions and this article provides the answers.

Let's begin by seeing where we stand as of 2009. The current estate tax rate is 45% and the estate tax exemption for 2009 is $3.5 million. This all comes to an end unless Congress acts on December 31, 2009, hence the asteroid. More on the impact results from the asteroid below.

Let's continue with what happens in 2010 and 2011 under current (on the books) law. In 2010 the estate tax is repealed for one year only. It is replaced in 2010 only with capital gains taxes on inherited assets because the "step-up in basis" is also repealed for 2010. Perhaps not too bad because the capital gains rate is less than the 2009 estate tax rate of 45%. Since very people can prove basis, you can calculate the impact by assuming inherited assets will have a 0 basis. There will be some basis step-up that can sprinkled on inherited assets.

The first problem with 2010 is that all the estate plans out there that are based on a formula relying on an estate tax exemption are in trouble. Second, there will be some unbalanced people with assets who jump off of bridges since they can die without an estate tax. See, the comment below from anonymous if you questions that.

Now that is the just the first impact results from this asteroid. It gets much, much worse.

In 2011 the estate tax returns in all it's fury with a 55% marginal bracket and only a $1 million exemption (the same structure in 2003). Again, this is current law if Congress fails to act. The asteroid's impact results become catastrophic come 2011.

I have excoriated Congress over this since 2002. Each year, the House has passed a fix and each year that fix has failed in the Senate. The same has occurred this year notwithstanding that there are bills pending in both houses that will prevent the asteroid from landing.

Let me know if you think that explains why the estate tax asteroid is so bad. Thank you for your interest and ongoing support.

So Whose Money is it Anyway? Does This Question Even Need to be Asked?

2009-12-05T15:26:00.002-07:00

Whose Money is it Anyway?

Apparently we do need to ask this question. It seems like a simple question, but it is actually surprising that there is any difference of opinion on this one.

To start this discussion, let's begin with a mind experiment. Do you agree with this statement:

"From each according to his ability and to each according to his need".

A recent poll showed that almost 80% of people agreed with this statement. That was surprising and quite shocking actually since this statement has resulted in genocide around the world and enslavement of millions more.

How's your mental exercise going? Remember that statement yet? Here's another clue:

That statement resulted in a philosophy that has failed wherever it has been tried and failed by killing off millions of people by the people who have practiced what that statement stood for.

Have you got the answer to our mental exercise yet?

OK, here's the answer:

Karl Marx said that in his book Das Kapital, the beginnings of communism and the state version of communism, socialism.

Surprised? Each person who took that poll I mentioned a moment ago was shocked, they didn't believe it because that statement is seemingly innocent. However, the truth is the opposite. That statement is the reason for our initial question, whose money is it anyway.

First, let's bury marxian philosophy once and for all. Wherever it has been tried or attempted, it has failed. Because it is a denial of the most basic part of our humanness, our desire for liberty and freedom, the only places where it has survived for any time is because of state sponsored tyranny to enforce its existence.

So why is Marx part of this discussion? The question,whose money is it anyway, can only exist when people are confused and start to believe that our money belongs not to us, but to any government.

Right now, our Congress is involved in another debate about taxes. One party believes that the money you earn and save is yours, that the government only taxes a portion of that money to finance the government.

The other party believes that the money you earn and save belongs to the government, and the government's job is to decide how much of that money the government will allow you to keep.

In my tax practice, we work with our clients to assist them in protecting their assets and estates believing that their money is theirs.

Which side do you come down on? Whose money is it anyway?

Here's the answer if you haven't figured it out yet.

It's your money. You earned it, you saved it. It's your money, not the government's. How much of your money do you want to give to the government? That's up to you and why we have debates and elections.

But never forget that it is your money. Never. Otherwise, you may fall prey to believing that Marx was right and we already know he was wrong. Dead wrong.

Getting Yourself In Order Step 7: Choosing the Right Advisors

2009-12-04T14:21:00.002-07:00

In our series on how to get yourself in order (painlessly) we are now at Step 7 Choosing the Right Advisors. With all the yellow pages and paid referral listings out there you might think this step would be easy. It is easy if you know the right steps to follow and if you don't get caught up in the hype of TV ads.

First, a quick review of the first six steps of getting yourself in order:

1. Protect your house.
2. Protect your car (and yourself).
3. Provide for decision makers in the event of your disability.
4. Create your dispositive document, like a Will.
5. Synchronize your beneficiary designations with your plan.
6. Beware of Uncle Sam in your estate planning.

Step 7: How to Choose the Right Advisors.

Choosing the right advisors is not like trying to find a needle in a haystack. Also, it is not a matter of watching TV ads and then hopping the web or your phone. It is a specific process with steps that you can follow to ensure that you end up a team of advisors designed to be on your side and who will help you accomplish your plan and goals.

Here are the steps:

1. Deal with real experts and real specialists. You don't have your plumber do your lasik surgery do you? Of course not, and you want to use that same philosophy in choosing legal and financial advisors. Avoid referral services that charge people to be listed on them. There are two quite famous services right here in Colorado that charge the people they list many thousands of dollars, but that offers you no comfort that you are dealing with an appropriate expert.

2. Insist on real experience, not a listing in a paid referral list. More details on that below.

3. Choose experts based on the need you have. For example, don't ask your dentist how to do your Will.

4. When picking an estate planning attorney, insist upon at least the following:

A. Full-time estate planning practitioner with at least 7 consecutive years of full time estate planning experience.

B. Membership in the Colorado Bar Association Trust and Estate Section.

C. An AV rating from Martindale-Hubbel, the attorney listing and rating service. You can't buy the rating because it is a peer review process.

5. When picking an an accountant insist on the following:

A. A CPA, that means a certified public accountant.
B. Specializes in tax planning.
C. Member of the AICPA.

6. When picking an insurance advisor insist upon:

A. Full-time insurance advisor with solid experience. I wrote a previous article on how to select a property and casualty insurance advisor, that is a good reference source.

B. For life insurance, the CLU or ChFC designation.

7. Insist that your arrangement with each advisor be reduced to writing with all details spelled out, including the work to be done and details about fees and charges.

If you can follow these simple steps you will be successful in assembling your team of advisors. Let me know how these steps work for you.

H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

2009-12-03T12:21:00.000-07:00

This what we get when Congress waits until the last minute:

H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

Estate Tax Reform at the Last Minute

2009-12-03T12:20:00.000-07:00

H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

2009-12-03T12:19:00.000-07:00

Courtesy of the University of Denver's Planned Giving Design Center here is the latest on Congress's efforts to avoid the estate tax asteroid which strikes on January 1, 2010.

H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

Estate Tax Reform? H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

2009-12-03T12:18:00.000-07:00

We have been waiting for 9 years for the federal estate tax system to be reformed. Instead, this is what we get at the last minute by a Congress who seems to not care about the American people.

H.R. 4154 Would Amend Federal Estate Tax | Planned Giving Design Center

Colorado's Texting Ban Takes Effect Tuesday - cbs4denver.com

2009-11-30T17:23:00.000-07:00

A more important ban could not be imagined. Please follow this link and read the story.

Colorado's Texting Ban Takes Effect Tuesday - cbs4denver.com

Federal Estate Tax Changes Loom - Endow - Wealth Manager

2009-11-18T07:12:00.001-07:00

Federal Estate Tax Changes Loom - Endow - Wealth Manager

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Step 6 to Getting Yourself In Order: Watch Out For That Long Lost Uncle--Uncle Sam

2009-11-03T15:43:00.002-07:00

We are up to Step 6 in our series about how to get yourself in order. You can read below for the steps preceding this Step 6.

In Step 6 we are concerned about Uncle Sam. Yes, that Uncle Sam, the federal tax system. In every estate plan we always analyze whether there are estate or death tax issues present. Primarily this involves examining the size of your estate and projecting its probable growth over time.

This is an important issue because you are permitted to leave an inheritance of a limited size before a significant tax is due. The federal estate tax is one of the highest taxes in the U.S. For the balance of 2009, the estate tax is 45% of each dollar over the estate tax exemption left to anyone not your spouse and that includes your kids!

Unless changed, the estate tax rate increases to 55% of each dollar over $1 million in 2011. Shocking? Yes, it is indeed.

We will cover death taxes in greater detail in a future article. The important point here is that estate taxes be considered in getting yourself in order. To accomplish this, when you meet with your estate planner, focus on these questions:

1. What is the size of your estate currently?

2. Have you calculated the estate size correctly?

3. Make sure all elements are included, especially your life insurance.

4. Is your estate expected to grow over time?

5. How does your estate size compare with the available federal estate tax exemption?

6. How is your estate affected by death taxes in states where you own property?

7. Have you maximized your available exemptions in your estate plan?

8. Have you properly coordinated the marital deduction with available estate tax exemptions.

7. Are you subject to generation skipping taxes?

8. Are you subject to gift taxes?

9. Do you understand the interplay between gift taxes and death taxes?

10. Do you understand how the different tax exemptions operate and are different?

11. Do you understand the changes coming at you in the current estate tax laws?

By asking and focusing on these questions, you will be well on your way to accomplishing Step 6 to getting yourself in order. Good luck.

Step 5 to Getting Yourself in Order: Synchronize your beneficiary designations with your estate plan or dispositive document.

2009-10-29T17:05:00.002-06:00

We are up Step 5 of Getting Yourself In Order. Step 5 is to synchronize your beneficiary designations with your estate planning.

For the earlier four steps, just read our prior articles which appear below.

Why do you want to check your beneficiary designations and synchronize them with your plan? Because if you don't, then some big surprises could await your family.

Beneficiary designations exist in many places. Life insurance; disability insurance; IRA's; 401(k)accounts; pension benefits and others. Many of those forms were completed years ago and what you put down then may not match what you want now!

Another issue is that life insurance beneficiary designations will not necessarily be what you use for qualified plan accounts like IRA's and 401(k) accounts. Those type of accounts have special rules dealing with income taxation and frequently you will want to maintain the income tax deferral on those accounts. Those rules require that special consideration be given to those accounts.

Here's another example: Let's say you took out a life insurance policy when you graduated from college. Back then you thought it a good idea to list your mother as the beneficiary. Now you are married or in a committed relationship. Your Will provides for your estate to pass to your spouse or partner. However, that life insurance is going to your Mom if you don't synchronize the beneficiary designation with your plan.

So Step 5 of getting yourself in order is to check and then synchronize your beneficiary designations with your estate planning. If you don't know how to do this, let us know and we can point you in the right direction.

Protect yourself against greedy adult children- FiLife.com

2009-10-29T14:36:00.000-06:00

Protect yourself against greedy adult children- FiLife.com

Ways and Means Committee Chairman Taking Up Estate Tax | Planned Giving Design Center

2009-10-28T15:13:00.001-06:00

Ways and Means Committee Chairman Taking Up Estate Tax | Planned Giving Design Center

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