You may have heard that you can protect your assets after you pass away by giving them to your heirs during your lifetime. In some cases, this is true. However, you should not assume that doing so is the best option for you. Instead, speak to an estate planning attorney who knows what the latest laws are and ask what your choices are.

An attorney can look at the entirety of your estate and take into consideration what you want to happen to your assets after you pass away. Based on that information, the attorney will then go over your options with you and let you know the benefits and drawbacks of the different options.

Whether gifting during your lifetime is the best option changes with every change in the law. It often seems like it changes with each new congressional session. For this reason, you should not rely on information that you may have heard in the past. Estate planning attorneys study the new laws as they pass so that they can inform about your options using up to date information.

Speak to an attorney before deciding to gift your money. If you do not undertake a gifting plan properly, you or your heirs may face unintended and detrimental consequences. An attorney will help you to avoid that eventuality.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

When you have an attorney draft a healthcare power of attorney document for you, you need to tell the attorney who to designate as your agent in the event that you are incapacitated. However, it is not enough to just speak with your attorney about it. You also need to speak with your designated agent under your healthcare power of attorney.

Whoever you designate to act on your behalf is the person that medical professionals will look to for decisions about your treatment. That person will only make decisions when you cannot. The agent is supposed to make decisions based upon what is in your best interests and what you would decide, if you could make the decisions. However, if your agent does not know what your wishes are, then he or she cannot express them to medical professionals.

Talk to the person you want to designate and communicate what you want to happen in different circumstances. Your attorney can give you suggestions about the different circumstances you should discuss with your designated agent. Also, make sure to inform your agent if you change your mind about what you want. The only way to make sure that your wishes are carried out is to let your agent know what your wishes are.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Parents who have children with special needs should make sure that their children are adequately cared for after the parents pass away. Special needs children sometimes require financial assistance for the duration of their lifetimes, making planning more challenging than it is for other children. An estate planning attorney can assist you to make sure that your child is cared for.

If your special needs child will need financial assistance and cannot manage his or her own money, your attorney can setup a trust to dispense the funds as they are needed. Often the attorney can also act as the trustee who administers the trust. Thus, the same attorney will continuously make sure that your special needs child has the funds necessary to maintain his or her lifestyle after you pass away. In some cases, you may need to appoint a guardian for your special needs child. Your estate planning attorney can also help you choose an appropriate guardian and ensure that the necessary documents have been prepared.

Speak to your attorney about what will happen to your special needs child after you pass away. Do not leave the care of your children up to state agencies that are often short on funding.  An experienced attorney can give you peace of mind in knowing that your children will be taken care regardless of what happens to you.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

In the last post, we looked at a few of the “don’ts” to consider in naming an executor in your Will. To review, the executor is the person charged with seeing that your wishes as stated in the Will are carried out. Before you see your estate planning attorney to draft a Will, these are a few things you should consider so you can tell your attorney who you want to name as the executor of your will.

• Do choose someone you can trust to carry out your wishes faithfully and quickly. Your executor should not drag her feet handling your will and drag out the process longer than necessary. Choose someone who will try to get things done in a timely manner.
• Do choose someone who your other beneficiaries and family members get along with. Under ideal circumstances, no one will seek to challenge the contents of your will. If they do, however, you want an executor who will not bring unrelated, personal differences to the arguments over the will.

• Do choose someone you have spoken to about being your executor and who has agreed to act in that capacity. You do not want to surprise someone with a responsibility she was not anticipating having after you pass away. If the person you name as the executor does not want the role, then the probate court may have to name someone else whom you would not have chosen.

That wraps up a few of the basic do’s and don’ts in naming an executor. Your attorney can go over other considerations with you.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

One of the first things your estate planning attorney will ask you about what you want in your Will is who you want to name as the executor. This is the person charged with seeing your Will through the probate process, making sure your debts are paid, and distributing your assets according to the terms of your Will. Who you want to name as the executor in your Will is entirely up to you. However, there are a few “don’ts” you should consider.

One of the first things your estate planning attorney will ask you about what you want in your Will is who you want to name as the executor. This is the person charged with seeing your Will through the probate process, making sure your debts are paid, and distributing your assets according to the terms of your Will. Who you want to name as the executor in your Will is entirely up to you. However, there are a few “don’ts” you should consider.

Don’t think you need to name someone as your executor because of his or her relationship to you. You can name a spouse, child or other close family member, but you are not required to do so.

• Don’t name someone financially irresponsible. The executor is charged with handling the finances of your estate. Make sure that you appoint someone who can handle his or her own finances.
• Don’t name someone who lives far away from you and who cannot easily travel to your residential area. The executor may need to travel to handle some aspects of the estate, including appearing in probate court proceedings. Appoint someone with the ability to be in the proper location when needed.

Next time, we will look at a few “do’s” you should consider when naming an executor in your Will.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

If you are like millions of other Americans, you have listened to the experts tell you how important it is to start early on funding your retirement account in order to ensure that you have enough saved to live comfortably during your golden years. While that is certainly relevant advice, it often leads to over-funding your retirement account. That, in turn, can lead to your estate losing over half of the excess funds to income and estate taxes if you have not also created an estate plan that accounts for that contingency.

Despite the best efforts of thousands of experts in the field of finance, it is simply impossible to know precisely how much you will ultimately need to make it through your golden years. Variables such as how long you live, your health, and unexpected family emergencies can drain your account. By the same token, an early death, excellent health, or higher than expected returns on investments can lead to a surplus at the time you die.

Making use of the unlimited marital deduction can solve the immediate problem when you die, if applicable. In the long run, however, this simply over-funds your spouse’s account and creates the same problem upon his or her death. With proper estate planning, the tax issues that result when you over-fund your retirement account can be addressed as a possible contingency. Numerous estate planning tools can help avoid, or decrease, any estate tax and/or income tax exposure your estate will have as a result of the excess funds. Just as with retirement planning, however, those tools will only work for you if you plan ahead.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Everyone leaves behind a legacy. What that legacy is composed of is up to you. You have the opportunity now to create a legacy plan that can reflect your values and ideals. Although the wealth that you have acquired during your lifetime is certainly part of your legacy, your legacy is not limited solely to the transfer of wealth upon your death.

Think of a legacy plan is an extension of your existing estate plan. Your estate plan provides the framework for how you wish your assets to be transferred upon your death; however, a legacy plan can do much more than that. In a simple estate plan, once your assets are transferred after your death, that is the end of the influence and control that you have. By creating a legacy plan, your legacy can live on.

The components that make up a legacy plan will, of course, be unique to the individual creating the plan. Trusts, however, are common components of a legacy plan because of the versatility and variety they offer. A trust not only provides a mechanism for the transfer of wealth, but it also allows you to incorporate your ideals and values along with the transfer of your wealth. For example, if education is a value that you hold dear, you have the option to include a trust term that allows trust assets to be used for educational purposes. In addition, where a simple bequest in a Last Will and Testament terminates once the transfer is accomplished, a properly created trust can live on for generations. As a result, your legacy can live on for generations as well.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

Hollywood darling Whitney Houston was found dead last week at the age of 48 in her Beverly Hills hotel room just hours before the Oscar Awards. The legendary singer, actress, and producer seemed to have the golden touch in her professional career, yet was plagued by personal problems as a result of her battle with drug and alcohol addictions and her turbulent relationship with singer Bobby Brown. Sadly, it appears as though trouble is already brewing over Houston’s estate.

As record sales soared after Houston’s death, conflict was setting in over Houston’s funeral, according to reports. Houston’s mother was opposed to inviting ex-husband Bobby Brown to the funeral for fear that he might try to gain access to Houston’s fortune through their daughter, 18 year old Bobbi Kristina. While Brown did attend, he didn’t stay long.

It appears as though Houston did leave a Last Will and Testament, although the contents of the Will are unknown at this time. It is likely that as Houston’s only child, Bobbi Kristina will inherit much, if not all, of Houston’s estate. While it is rarely a good idea to leave a substantial amount of money to any 18 year old, rumors have also suggested that Bobbi Kristina battles her own drug and alcohol problems just as her mother had for years. If Bobbi is unable to handle her finances, and Houston did not leave a trust that controls the inheritance, then a court will likely have to appoint a conservator who will, in effect, have control over Houston’s fortune through Bobbi. Another example of why thorough estate planning is so important.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

With over half of all first marriages ending in divorce within the United States, you may be one of the millions of people currently planning to remarry and create a blended family. There are an endless number of emotional, as well as financial, issues that surround the creation of a harmonious blended family. While most people think to spend a considerable amount of time deciding how to handle day to day money matters once they are remarried, some do not think to take the time to discuss how their estate plan will change once they are remarried. Of course there is no “right” or “wrong” way to handle your estate plan once you are part of a blended family, but deciding which accounts, or which assets, to join is an important part of any discussion about your future estate plan.

In some cases, keeping an asset as your separate property may make more sense even after your marriage. Inheritance money or family heirlooms that are earmarked for children from a previous relationship, for example, may be easier to simply keep as your separate property.

Other assets, though, may be worth taking a second look at once you are married. If you are concerned that your future spouse may need access to assets or funds for his or her support, or the support of any future children you may have, then converting accounts to joint accounts, or titling property jointly, may be wise. If you retain sole ownership of an asset after your marriage, then the asset or account may need to go through the probate process before your spouse will have access to the asset. Be sure to discuss the pros and cons of converting to joint accounts, or jointly held property, with your estate planning attorney to decide how to best handle your assets in your new blended family.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.

The world was saddened by the death of singer and actress Whitney Houston this week. Found dead in the bathtub of her Beverly Hill hotel room on the eve of the Grammy Awards, Houston’s cause of death has yet to be determined –nor has the value of her estate. Judging by the buying public’s reaction to Houston’s death, her estate value will continue to soar for some time after her death, as is often the case when an artist dies. Most notable for the song I Will Always Love You, everything that Houston touched once seemed to turn to gold. Along with a string of number one singles back in the 90s, Houston also made the often difficult crossover from singer to actress with her appearances in The Bodyguard and Waiting to Exhale. While the world mourns her death, those involved in her estate will have to wait and watch as the value continues to soar.

You may not have a multi-million dollar record deal or residuals from a film contract that will provide income for years to come, but you likely have estate assets that will provide income long after your death. Investment accounts, if managed properly, should continue to increase in value. If you own a small business, or interest in a larger business, as the business become more successful, your interest in the business will become more valuable. Real property as well as intellectual property will frequently continue to appreciate in value long after your death. Be sure that you consider both the present day value of these assets as well as the likelihood that the asset will appreciate or continue to provide income after your death when you are making decisions regarding your estate plan.

The Law Offices of Richard B. Schneider, LLC is a member of the American Academy of Estate Planning Attorneys.