Our estate, gift and generation skipping tax exemptions are changing again! This time they are going up per the new tax law and are scheduled to increase each year.
For 2014 the exemptions will be $5,340,000. Here is an excellent article that discusses these increases and merits your reading.
IRS Releases 2014 Estate, Gift and GST Tax Exemptions Adjusted for Inflation
Let me know your thoughts and if you have any questions about how this will impact your estate planning. I look forward to your questions and comments.
Bernie Greenberg
BECAUSE DEATH AND TAXES: Learn about what you need to do to be prepared for what's coming. Wills, trusts, taxes, probate. If you haven't experienced it you will. Estate planning is one of the most important things you can do to protect yourself and your family. Please join Bernie Greenberg's world of estate planning. www.kgattys.com
Showing posts with label estate planning. Show all posts
Showing posts with label estate planning. Show all posts
Tuesday, November 5, 2013
Monday, March 11, 2013
Choosing Your Executor
Choosing the right decision makers is important in estate planning. Here is an interesting article that may help:
ESTATE PLANNING: Who will serve as personal representative? - nwitimes.com
Monday, March 4, 2013
Pressure Testing Your Estate Plan: How To Make Sure Your Plan Works
Pressure Testing Your Estate Plan: The Three Steps that Work
Your estate plan is something that you design now before it's needed, it will operate sometime in the future. So if the plan won't be used until the future, how can you make sure the plan will work? If you do what I call "pressure testing" your estate plan, you will go along way to making sure the plan will work and minimize disputes.
Here are the steps for pressure testing your estate plan:
1. Work with a specialist and estate planning expert.
It may seem like a simple thing, but nothing will torpedo your estate plan than having a DYI, fill-in-the-blank form or working with someone who does not focus exclusively on estate planning. As I have written before, if you have a problem with your kidneys, you don't go to the foot doctor.
2. Imagine future scenarios with your estate planning attorney.
In the design of all estate plans, we have our clients brain storm with us and imagine future scenarios. As we do this, we test each part of the estate plan and how it work under that imagined scenario. Does this work if that happens, how does client feel about it, how can they imagine how that provision will impact family or those involved? This is how to pressure test the design of each portion of the estate plan.
3. Review your plan periodically and re-test.
As time goes by, provisions that made sense years earlier in your plan may not make sense in the future. Things change, laws change, people change. These changes are always occurring and if ignored can also defeat your estate plan. The way to deal with changes is to review your plan periodically and re-test the provisions given all the changes. This is what we do with every client at every estate plan review meeting.
So there they are, the three steps to pressure your estate plan. Do you follow these steps? If not, it's time for an estate plan review if you have an estate plan. If you don't have a plan, these steps will guide you to creating a more effective estate plan.
Please let me know if you have questions about pressure testing your plan. Feel free to join in our conversation and leave a comment here or send me your thoughts via email, I look forward to hearing from you.
Bernie Greenberg
If you are seeking an estate planning attorney in Castle Rock, Douglas County, or for the South Denver Metro Area, contact Kokish & Goldmanis, P.C.
Your estate plan is something that you design now before it's needed, it will operate sometime in the future. So if the plan won't be used until the future, how can you make sure the plan will work? If you do what I call "pressure testing" your estate plan, you will go along way to making sure the plan will work and minimize disputes.
Here are the steps for pressure testing your estate plan:
1. Work with a specialist and estate planning expert.
It may seem like a simple thing, but nothing will torpedo your estate plan than having a DYI, fill-in-the-blank form or working with someone who does not focus exclusively on estate planning. As I have written before, if you have a problem with your kidneys, you don't go to the foot doctor.
2. Imagine future scenarios with your estate planning attorney.
In the design of all estate plans, we have our clients brain storm with us and imagine future scenarios. As we do this, we test each part of the estate plan and how it work under that imagined scenario. Does this work if that happens, how does client feel about it, how can they imagine how that provision will impact family or those involved? This is how to pressure test the design of each portion of the estate plan.
3. Review your plan periodically and re-test.
As time goes by, provisions that made sense years earlier in your plan may not make sense in the future. Things change, laws change, people change. These changes are always occurring and if ignored can also defeat your estate plan. The way to deal with changes is to review your plan periodically and re-test the provisions given all the changes. This is what we do with every client at every estate plan review meeting.
So there they are, the three steps to pressure your estate plan. Do you follow these steps? If not, it's time for an estate plan review if you have an estate plan. If you don't have a plan, these steps will guide you to creating a more effective estate plan.
Please let me know if you have questions about pressure testing your plan. Feel free to join in our conversation and leave a comment here or send me your thoughts via email, I look forward to hearing from you.
Bernie Greenberg
If you are seeking an estate planning attorney in Castle Rock, Douglas County, or for the South Denver Metro Area, contact Kokish & Goldmanis, P.C.
Friday, November 2, 2012
4 Reasons Estate Planning is the Best Gift of All
4 Reasons Estate Planning is the Best Gift of All
It's true! Estate planning really is the best gift and here I'll discuss four reasons why. Now I know what you may be thinking, "here he is again, that estate planning attorney from Castle Rock, telling me about the benefits of estate planning"! And you know, you're right, but not for the reasons you think. You see, estate planning is not only beneficial, but is a gift to your family that is so significant, that all other gifts combined pale in comparison. Let's see why.
Four reasons that estate planning is the best gift of all:
1. Estate planning never stops giving.
One feature of an estate plan is that it never stops giving--it never stops protecting you, your family and your loved ones along with your assets and property. While you want to keep your plan current and update it due to changing family circumstances or needs, it is always there. More on that part below.
2. Your estate plan is the best way to protect yourself.
As I have discussed in prior articles, one important purpose of your estate plan is to protect you in the event of unplanned illness, disability or death. Since your estate plan protects you against these risks, it makes your estate plan one of the best, if not the best way to protect yourself. This is done with Powers of Attorney and medical directives and Living Wills.
3. Your estate plan is the best way to protect your family.
Our families rely on us for all sorts of things. In fact, for many families, it is not possible to even list all of the things that we are relied on to provide. Financial support, emotional support and others are the just the beginning of the ways you support your family. When you create your estate plan, you can provide this support to your family when they most need it---when you are not available! Nothing else can provide this protection to your family.
Your estate plan does this with Wills, Trusts and other estate planning arrangements.
4. Your estate plan allows you to control the future.
Yes, it's true, your estate plan can control the future. The truth is, the future is uncertain and no one can know what it will bring. What your estate plan can do is allow you to control the outcome of events in the future that are difficult to predict or project. For example, we don't know if an unplanned near-term disability is in our future. But if it does happen, your estate plan can control how you are treated and cared for. Your estate plan is the only way that the outcomes of an uncertain future can be controlled.
No other gift provides these four benefits which is why I am suggesting that estate planning is the best gift of all.
What do you think? Please join our conversation and share your thoughts on this topic. Thank you.
Bernie Greenberg
It's true! Estate planning really is the best gift and here I'll discuss four reasons why. Now I know what you may be thinking, "here he is again, that estate planning attorney from Castle Rock, telling me about the benefits of estate planning"! And you know, you're right, but not for the reasons you think. You see, estate planning is not only beneficial, but is a gift to your family that is so significant, that all other gifts combined pale in comparison. Let's see why.
Four reasons that estate planning is the best gift of all:
1. Estate planning never stops giving.
One feature of an estate plan is that it never stops giving--it never stops protecting you, your family and your loved ones along with your assets and property. While you want to keep your plan current and update it due to changing family circumstances or needs, it is always there. More on that part below.
2. Your estate plan is the best way to protect yourself.
As I have discussed in prior articles, one important purpose of your estate plan is to protect you in the event of unplanned illness, disability or death. Since your estate plan protects you against these risks, it makes your estate plan one of the best, if not the best way to protect yourself. This is done with Powers of Attorney and medical directives and Living Wills.
3. Your estate plan is the best way to protect your family.
Our families rely on us for all sorts of things. In fact, for many families, it is not possible to even list all of the things that we are relied on to provide. Financial support, emotional support and others are the just the beginning of the ways you support your family. When you create your estate plan, you can provide this support to your family when they most need it---when you are not available! Nothing else can provide this protection to your family.
Your estate plan does this with Wills, Trusts and other estate planning arrangements.
4. Your estate plan allows you to control the future.
Yes, it's true, your estate plan can control the future. The truth is, the future is uncertain and no one can know what it will bring. What your estate plan can do is allow you to control the outcome of events in the future that are difficult to predict or project. For example, we don't know if an unplanned near-term disability is in our future. But if it does happen, your estate plan can control how you are treated and cared for. Your estate plan is the only way that the outcomes of an uncertain future can be controlled.
No other gift provides these four benefits which is why I am suggesting that estate planning is the best gift of all.
What do you think? Please join our conversation and share your thoughts on this topic. Thank you.
Bernie Greenberg
Monday, September 24, 2012
Joint Tenancy vs. Tenancy in Common: What is the Difference?
For Estate Planning Which is Better: Joint Tenancy or Tenancy in Common? The Answer May Surprise You!
Many estate planning clients are unaware of the difference between joint tenancy and tenancy in common. Not knowing can be hazardous to your family and property and interfere with the proper result with your Will or estate planning.
Let's discuss how TIC works vs. JTWROS.
1. JTWROS is a legal fiction. This is because each joint owner owns an undivided 100% interest in the property. Because each cannot own 100%, it is actually a construct to produce the following result. When the first joint owner dies, the deceased owner's interest vanishes. The survivor is left owning 100% of the property. Title doesn't pass to the survivor, they already owned 100%. The interest of the deceased owner vanishes for title purposes.
This is why for some couples of very modest means, owning property jointly works like a mini-estate plan to avoid probate at the first death. It accomplishes nothing at the second owner's death.
2. TIC ownership is different. Each TIC owner owns an undivided 50% ownership interest unless the title document, the deed specifies a different percentage. When the first TIC owner dies, their percentage interest passes through their estate or estate plan. The survivor's percentage interest remains in the survivor's hands.
The catch is this: neither is better than the other. The consequences of each is different. We pick the form of ownership we want based on how we want things to work, both on the first death and the second death. There are also tax differences that are beyond the scope of this article.
To learn if you have the right ownership form on real estate or other property, consult with your estate planning attorney immediately.
Let me know what you think and if you have comments and questions. Thank you.
Bernie Greenberg
Many estate planning clients are unaware of the difference between joint tenancy and tenancy in common. Not knowing can be hazardous to your family and property and interfere with the proper result with your Will or estate planning.
Let's discuss how TIC works vs. JTWROS.
1. JTWROS is a legal fiction. This is because each joint owner owns an undivided 100% interest in the property. Because each cannot own 100%, it is actually a construct to produce the following result. When the first joint owner dies, the deceased owner's interest vanishes. The survivor is left owning 100% of the property. Title doesn't pass to the survivor, they already owned 100%. The interest of the deceased owner vanishes for title purposes.
This is why for some couples of very modest means, owning property jointly works like a mini-estate plan to avoid probate at the first death. It accomplishes nothing at the second owner's death.
2. TIC ownership is different. Each TIC owner owns an undivided 50% ownership interest unless the title document, the deed specifies a different percentage. When the first TIC owner dies, their percentage interest passes through their estate or estate plan. The survivor's percentage interest remains in the survivor's hands.
The catch is this: neither is better than the other. The consequences of each is different. We pick the form of ownership we want based on how we want things to work, both on the first death and the second death. There are also tax differences that are beyond the scope of this article.
To learn if you have the right ownership form on real estate or other property, consult with your estate planning attorney immediately.
Let me know what you think and if you have comments and questions. Thank you.
Bernie Greenberg
Friday, August 17, 2012
Three Things to Know About Which Comes First: Financial Planning or Estate Planning?
Which Comes First, Your Financial Plan or Your Estate Plan? Here are the three reasons you MUST do your estate plan first.
I am asked frequently, which comes first, a client's financial plan, or estate plan? How an advisor answers this question will tell you much about whether their priorities are aligned with yours or not.
Here are the three things you need to know to answer this question and properly protect yourself, your family and your property.
1. Financial Planning Requires Time.
Financial planning is important to your financial success. However, for any financial plan to work there is a vital requirement: time and lots of it. Financial planning is a process of goal setting, asset alignment coupled with savings and investment--over time. Here's one example:
Say you want to ensure a child can go to college. Your financial planner will assist you in establishing a plan that will involve savings and investment so that by college age, the college fund will either pay for or assist in college related expenses. The critical element in the plan is time. There will be insufficient funds the first few years of the plan to pay for college. You can see the same applies to goals like retirement. If the time horizon is not realized the plan fails. This is the reason that life insurance is an estate planning tool before it is used in a financial plan. More on that thought below.
2. Protect Against the Worst Risk First.
The worst risk any client faces is dying or becoming disabled too soon. In other words, a near-term event that is unplanned. Unlike the financial planning time horizon, the worst risk can happen any time. A main reason to do your estate plan is to protect against the worst risk--an unplanned death or disability. Since this is an unplanned event, protecting against such risk is priority ONE.
3. Estate Planning Has No Time Requirement.
There is no time required for your estate plan to work. Your estate plan must take into account the unplanned and near-terms risks mentioned above. I can tell you that most clients who live to life expectancy do not die with their original estate plan. A client's estate plan will be revised several times over the course of their life. This is the beauty and necessity of the estate plan. It requires no time, no specific course of events in order to operate, unlike a financial plan. As mentioned above, this is why life insurance is part of estate planning before it is considered in the financial plan--we can protect against an unplanned, near-term death with life insurance.
Those are the three reasons that your estate plan comes before your financial plan. Both are important and you should pursue both. Start with your estate planning to protect against the worst risk first and then start your financial plan.
Let me know your thoughts on this important estate planning issue, your comments and questions are welcome. Feel free to email me at: bgreenberg@kgattys.com or call me any time at: 303-688-3535. Thank you.
Bernie Greenberg
I am asked frequently, which comes first, a client's financial plan, or estate plan? How an advisor answers this question will tell you much about whether their priorities are aligned with yours or not.
Here are the three things you need to know to answer this question and properly protect yourself, your family and your property.
1. Financial Planning Requires Time.
Financial planning is important to your financial success. However, for any financial plan to work there is a vital requirement: time and lots of it. Financial planning is a process of goal setting, asset alignment coupled with savings and investment--over time. Here's one example:
Say you want to ensure a child can go to college. Your financial planner will assist you in establishing a plan that will involve savings and investment so that by college age, the college fund will either pay for or assist in college related expenses. The critical element in the plan is time. There will be insufficient funds the first few years of the plan to pay for college. You can see the same applies to goals like retirement. If the time horizon is not realized the plan fails. This is the reason that life insurance is an estate planning tool before it is used in a financial plan. More on that thought below.
2. Protect Against the Worst Risk First.
The worst risk any client faces is dying or becoming disabled too soon. In other words, a near-term event that is unplanned. Unlike the financial planning time horizon, the worst risk can happen any time. A main reason to do your estate plan is to protect against the worst risk--an unplanned death or disability. Since this is an unplanned event, protecting against such risk is priority ONE.
3. Estate Planning Has No Time Requirement.
There is no time required for your estate plan to work. Your estate plan must take into account the unplanned and near-terms risks mentioned above. I can tell you that most clients who live to life expectancy do not die with their original estate plan. A client's estate plan will be revised several times over the course of their life. This is the beauty and necessity of the estate plan. It requires no time, no specific course of events in order to operate, unlike a financial plan. As mentioned above, this is why life insurance is part of estate planning before it is considered in the financial plan--we can protect against an unplanned, near-term death with life insurance.
Those are the three reasons that your estate plan comes before your financial plan. Both are important and you should pursue both. Start with your estate planning to protect against the worst risk first and then start your financial plan.
Let me know your thoughts on this important estate planning issue, your comments and questions are welcome. Feel free to email me at: bgreenberg@kgattys.com or call me any time at: 303-688-3535. Thank you.
Bernie Greenberg
Wednesday, March 23, 2011
Your Credit is Important!
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
Thursday, March 3, 2011
How to Choose the Right PR for Your Estate
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
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