Who needs Legacy & Estate Planning

>> Monday, June 23, 2008


Contrary to popular belief, Legacy & Estate Planning isn't just for millionaires - it's for anyone who cares about what happens to their assets after they pass or who desires to leave a record for future generations to be able to access.

That said, Legacy & Estate Planning is particularly important for people in a number of basic life situations:

Married Couples: Each spouse must have a separate will. Joint wills can create legal issues if you both pass within a few weeks or months of each other.

Divorced Couples: Make sure your assets go to the "right" people, especially if you'd prefer that they not go to your former spouse's new partner and his or her children. To protect your own children, you may need to establish a trust.

Business Owners: Create a succession plan that specifies what should happen to your business, or your equity in the business, if you become incapacitated or pass away. Be sure that the business has enough cash on hand to survive the transition to new ownership.

Future Millionaires: Currently, the estate tax provides an exemption for estates valued at $2 million or less (it will rise to $3.5 million in 2009). This exemption has historically been $1 million and will most likely revert to that level in the year 2011. As a general guideline, if your estate currently totals $1 million or more - or has a strong prospect of exceeding $1 million in value during your lifetime - you should establish trusts to protect assets you may have beyond the $1 million benchmark.

(Special note: Many people are not aware that life insurance proceeds are included in your taxable gross estate and should be included when calculating potential estate tax liabilities.)

Professional Athletes: The unique demands and rewards of excelling as a professional athlete create unique needs and opportunities for both estate and legacy planning. Most sports stars understand the necessity to protect their hard earned dollars, but often fail to receive proper advice and counsel from those charged with directing their affairs. From issues of caring for your family and loved ones to handling the affairs of off-the-field ventures and charitable foundations require the consultation of expert counsel.

Entertainers & Artists: Those who hold valuable intellectual property rights, (copyrights, trademarks, etc.), or derive income from royalty payments need to consider special plans to deal with these unique issues.

SOURCE:
We offer many thanks to the talented hand of Robert Weber whose work was originally published in The New Yorker August 16, 1999.


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New Lessons from an Old Tale

>> Sunday, June 22, 2008



There are numerous lessons that can be learned from Wiley's adaptation of this popular fairy tale.
Lesson #1
Wiley's humorous rendition serves as a subtle reminder that predators lurk wherever opportunity presents itself, including the Legacy & Estate Planning realms.
Lesson #2
To prevent falling prey to the proverbial "wicked wolf" you should become familiar with the basic principles of choosing a trusted adviser for the preparation of your actual estate plan. [Learn more here] This person, most often, is not the Executor or Trustee who will be in charge of carrying out the plan when the time comes.
Lesson #3
Many people put intense amounts of time and energy into drafting a properly conceived plan and then fail to address perhaps the most important issue of them all, who will be in charge of fulfilling your wishes and instructions when the time comes. Choosing the proper Executor or Trustee for your estate is essential. As illustrated by music legend Ray Charles [see post] all of your well-laid plans can be thwarted if the wrong person or institution is put in charge of your affairs.
Lesson #4
Care and consideration should be given in authorizing a Power of Attorney. A Durable Power of Attorney can be an extremely useful tool in planning for incapacity and/or making decisions regarding life support and health care issues. Prior to authorizing a Power of Attorney, you should discuss your intentions with your Estate Planner to better provide direction and the extent of the powers necessary to be granted in order to achieve your true intentions.
Lesson #5
Just like the example of this comic strip, make sure to have fun in the process of planning your estate and truly take the time to celebrate your life and your legacy that you are leaving to your next generations and the world.

SOURCE:
We offer many thanks to the creative mind of Wiley Miller and his comic strip NON SEQUITOR. If you would like to see more of Wiley's work feel free to check out: Wiley's Non Sequitur Homepage

REPRINTED FROM SUNDAY COMICS 8-12-2007


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