The New Estate Planning: It's All About the Family!

What is Estate Planning Really About?

Are you like 70% of the folks out there who don't like to think about or hear about wills, trusts and estate planning? Well, if you are, don't fret. Many people believe that estate planning is only for the rich. Not only is that false, wills and trusts actually do more to protect people who don't have millions of dollars and property.

Why estate planning is not for the rich folk!

As the preceding article from one of the top companies in the world reveals, estate planning is about your family. Creating certainty, protecting your spouse and loved ones, protecting children, it's ALL about your family.

So how did the myth start that estate planning was only for the rich? It dates back to when the federal exemption against the federal estate tax (some call it the "death tax") was very low. Do you know the history of this exemption? The exemption is used by the government to define when YOU are wealthy (rich) enough to have to pay estate tax when you die.

The History of the Federal Estate Tax:

Thanks to the good people at Cook & Cook, here is the history and it's shocking.

History of the federal estate tax exemption and rates:

Let's start with the year 1978, the year I started practicing law. The federal estate tax exemption (the definition of wealthy) was a mere $134,000! If your estate was greater than $134,000, you paid federal estate tax and if you look at the chart, the marginal rate of that tax was a horrifying 70%! As you can see from the chart, the exemption has increased over time, not even coming to close to keeping up with the economy or inflation.

So here is where the myth about estate planning started--we were all concerned as estate planners with reducing or avoiding this tax, the highest tax ever imposed on citizens of our country. When the exemption was low, the focus was estate tax planning. Most people were so incensed about the estate tax that they didn't pay proper attention to the real reason for estate planning--protecting the family.

The Federal Estate Tax in 2015:

So where are we today? In 2015, the exemption against the federal estate tax is $5,430,000 and is scheduled to increase in 2016 to approximately $5,515,000! Now that's more like what someone would expect as a real definition of wealth.

With the exemption against the estate tax at this level, the old, historical focus on estate tax planning is less relevant for most families. As you might think, far fewer families have estates over $5,430,000 than that old exemption of only $134,000. Because the exemptions are at historically high levels, the focus for most families is on protecting the family.

Most common is the desire to protect the spouse, then children and then other family members. I have always believed that protecting family should always be the driving reason for a client's estate planning and this focus should be reflected in documents such as wills, trusts and powers of attorney.

Good estate planners never let the tax tail wag the family dog! That's a good rule of thumb to remember when you think about your estate plan. Just because taxes are not a concern doesn't mean that we don't care about our families. We do and here are three short videos that illustrate just how important this is.

Estate planning for young families:

Estate planning for children over 18:

Estate planning for blended families:

So when someone says to you, "I don't have enough money to do a will or estate plan" share this article with them so they can have the full story.

Let know your thoughts on this and please join our conversation by commenting or sending me an email. Thank you for your interest.

Bernie Greenberg

Happy Holidays

With the holidays upon us, we wish for you and your families, the happiest of holiday seasons.

 Best wishes to you and yours this holiday season with our hopes you will enjoy health and happiness for the new year.

Our best to you,

Bernie Greenberg

Estate And Gift Tax Exemption Announced For 2015

The government has announced the exemptions for gift, estate and generation skipping taxes for 2015. Under our current tax system, these exemptions are indexed and will increase each year. Take note, the exemptions for 2015 are set at $5,430,000. This means that even fewer people than ever will be subject to the federal estate or generation skipping transfer taxes.



Unfortunately, the present interest gift tax exclusion remains at $14,000 for 2015.

Here is an excellent article that discusses the 2015 numbers:



Estate And Gift Tax Exemption Announced For 2015 Gift Tax Annual Exclusion Remains Unchanged | Mitchell Silberberg:



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Here are your takeaways from these 2015 exemption numbers:



1. The focus in estate planning will be less on estate tax reduction and on income tax and asset protection planning.


2. With the exemptions so high, your focus should be specifically on family issues and concerns. There is NO reason now to let the tax tail wag the family dog.


3. The high exemptions permit you to be creative and intuitive with your estate plan. No longer will what 'feels right for the family" be in conflict with sound estate tax planning.



4. Focus on protecting spouse and children and discuss with your estate planner how those protections work. Select the right mix of protections for your family.


These high exemptions are unprecedented in U.S. tax history. Will they be around permanently? That will entirely depend on politics as always. Stay tuned for more as any news develops on the federal tax exemption numbers.

Let us know your thoughts on this or any other estate planning issues of interest. Your contributions are always welcome. If you prefer to respond more privately, please send me an email. Thank you.



Bernie Greenberg

Holiday Time is Estate Planning Time

Happy Holidays!

Yes, it's that time of year again, it happens every year, the holidays are upon us with Thanksgiving this coming Thursday.

If you follow my articles you know that I have written many times about the holidays also being estate planning time. In this article, we'll explore how that happens.

Estate planning attorneys notice what times of year that clients want to discuss and do wills and their estate plans. I have tracked this for the past 33 years. Generally from near the end of October until the end of January is the time. That tracks exactly with the holidays.

I have asked many clients about this and always the same answers come back. "Well, the holidays are time for family, and in thinking about my family I want to make sure they are protected, so let's get that estate plan done". There are many variations on this theme, yet the theme is always the same.

This is why I say, holidays = family time and family time = estate planning time. This led to a series of articles I began years ago about gifts we give at the holidays. The best gift of all we can give to our families is the gift of peace and security and the best way to give that gift is through your estate plan. You may notice me asking every year if you have given the gift of a current estate plan to your family. In fact, I'll ask you again here, have you given your family the gift of a current will or estate plan?

Since so few adults in the U.S. have a current will or estate plan, it is my goal to motivate people to protect themselves and families through the gift of estate planning.

What besides family do the holidays make you think about? Let us know and please join our conversation by commenting or by sending us an email. We wish you and your families the happiest of Thanksgivings this and every year.

There Is No One Size Fits All Estate Plan

There is no one size fits all estate plan. As an estate planning attorney in Douglas County, Colorado, I am asked frequently why another's good looking estate plan can't be copied.

I mean, how could there be? Is anyone else exactly like you? We all know the answer, but if you use a DIY solution or think you are just like everyone else, it could spell estate planning disasters for your family. We as estate planning attorneys know that each client estate plan, their will, powers of attorney; livng wills and related documents must take into account their particular situations.

In this article by, Christopher W. Yugo, he explores this concept and why custom designing and drafting your estate plan so it can be just for you is important. You can read the article by clicking this link: The Yugo Article

Let me know your thoughts and if you have questions about why your estate plan will probably not look like your friend's or neighbor's plan.

Join our conversation and let us know your thoughts, leave us a comment and a review if you see this post on social media. Thank you.

To find my firm click here: Kokish & Goldmanis, P.C.

To find our firm on facebook click here: Kokish & Goldmanis on facebook feel free to leave us a review there.

To find our firm on Google or Google Places or Google+, click here: Kokish & Goldmanis on Google+ where we'd love you to post a review as well.

Bernie Greenberg

Introduction to Estate Planning: A Course for Consumers Chapter 3

Chapter 3: Identifying Goals and Objectives

In Chapter 2 we discussed how the process of estate planning works. In this Chapter 3, we explore how to identify goals and objectives that drive the estate planning process. As an estate planning attorney, the process of goal identification is critical to assisting clients in moving forward with their estate plan.

With each estate plan individualized to each client, understanding what each client intends to accomplish is critical. Many people say, "I know I need a Will", but when asked why, very few can actually identify any real reasons. The reason to deal with estate planning specialists is to have qualified guidance in understanding why you are doing any part of the estate plan.

Let's start with goals that many clients seem to share. As your read through the list, ask yourself if any of the items listed are important to you. As you begin to identify your estate planning goals and objectives, you are searching for what is important to you and your family.

1. I want to protect my spouse if I get sick or die.

2. I want my estate to go to my spouse and then to my children.

3. I want my family to face the smallest amount of costs with my estate.

4. I want to save taxes.

5. I want to avoid probate.

6. I want my estate to pass free of Court involvement or supervision.

7. I don't my spouse's next spouse to get my money.

8. I want the inheritance I leave to my children to last for them and not be taken in a divorce or their creditors.

9. I want to know who will raise my children if I am not here.

As you read that list did any of those items sound like something you would say? Remember, identifying your goals and objectives is about what is important to you. Here are examples of other goals clients will mention:

1. I have a disabled child and want to make sure they are provided for.

2. I am taking care of a disabled parent. How can I protect them.

3. I want to pass my business interest to one child but not short change my other children.

4. How do I minimize estate taxes?

5. I want a Will.

As you can see, goals can be as creative and as numerous as there are people. Bear in mind that the purpose of this chapter is not to tell what you goals should be. The purpose of this chapter is to start you thinking about what your goals are.

Here are some exercises you can do to help you focus in on what is important to you:

1. Pretend that you either died or became disabled yesterday. I suggest yesterday because it can't happen and it will help you focus your thinking.

As you think about that, think about how you want things to work, who you want to protect and what you would want your situation to look like in that event. Then start writing all the things that pop into your mind. As you write that list, you start to identify the things that are important to you. This list becomes your starting point with your own estate plan.

Your list is yours alone and that is why your estate plan is yours alone. Your list of goals and objectives is what your estate planning attorney will use to guide you in designing and building your own estate plan.

As you think about your situation, do you have things on your list that are not covered here? That's great and you are on your way to starting your estate plan. If you would like to share a goal not listed here, that could help others that read this in their own thinking.

In Chapter 4 we will cover how your estate planning attorney uses your list of goals to begin the process of designing your estate plan. The first step is to understand the components of every estate plan and that is where Chapter 4 starts, with The Components of Every Estate Plan.

Thank you for your questions and comments. We appreciate each and every one and look forward to any you have about this Chapter 3 of Estate Planning: A Course for Consumers.

Bernie Greenberg

The 6 biggest estate planning mistakes NFL players make | LifeHealthPro

Did you know that professional athletes have to do their estate plans, just like you do? Here is a list of the mistakes NFL players make and the list sounds familiar doesn't it?

The Super Bowl is this coming Sunday and my favorite team is playing. You can guess who that team is since I live in Colorado.

And wouldn't you know, an estate planning attorney can weave estate planning into a discussion of the Super Bowl.

Here is an excellent article that discusses how professional athletes must pay attention to estate planning to make their very short careers of value in their lives.

The 6 biggest estate planning mistakes NFL players make | LifeHealthPro:

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Let me know your thoughts by joining our estate planning conversation. Also, let me know if you can correctly guess my favorite team.

Bernie Greenberg