Tuesday, May 08, 2012 What Happens If I Do Not Plan My Estate?
You will leave what is legally known as an “intestate estate”, one in which the deceased has left no instructions. The families of those who fail to plan their estates have a rude surprise awaiting for them – the government will fill in the blanks with its own plan. After debts, probate costs, and taxes are paid, the courts will divide the estate according to the laws of intestate succession.
If you do not plan your estate, you may not know who your beneficiaries are.
If you do not plan your estate and a minor child is entitled to receive an inheritance by law, the court will place the inheritance into a custodial trust.
If you do not plan your estate and you have no spouse or children, most states provide that distributions will be made to your parents. If your parents are in a nursing home or receiving government assistance, who do you think gets the inheritance?
If you do not plan your estate and fail to appoint the personal representative you want to administer it, the court will appoint a personal representative of its own choice for you.
If you do not plan your estate, the personal representative may be forced to pay for an expensive bond to insure the estate.
If you do not plan your estate and you and your spouse both die prematurely, the probate court will appoint the guardian it chooses for your minor children instead of the ones you could have, but failed to name yourselves. In other words, a stranger to the family will get to decide who tucks in your children at night and takes care of all of their other needs.
If you do not plan your estate, the courts will maintain continuing jurisdiction over any inheritance left for your children.
Thursday, March 29, 2012 What Is A Will?
A will is a written document that tells the court how to divide your property at the time of your death. It also tells the court who should be the guardian for your minor children and your personal representative. Wills are filed with the court at time of death and the court oversees the administration of the will through a process known as probate.
Wednesday, March 14, 2012 What Is Meant by “Estate Planning”
The process of developing a sound estate plan is to achieve the following objectives: controlling your property while you are alive; take care of loved ones and yourself if you become disabled; you want to give what you have to whom you want, when you want and they way you want; whenever possible you want to save tax dollars, professional fees and court costs.
Without a good estate plan, you and your family will probably lose control over your property, suffer through unnecessary court proceedings and pay unnecessary taxes and expenses. The lack of an estate plan may also deprive your family of many other legal protections otherwise available and also deprive them of the opportunity to receive from you a lasting legacy designed to bring your family closer together. Fortunately, all of these ills can be easily avoided by implementing a sound estate plan that passes your property to your loved ones in the way you want.
All good estate planning starts with making sure that your property is legally owned in an appropriate way.
Wednesday, March 07, 2012 Basic Concepts of Estate Planning
Estate planning, when done correctly, should above all else provide you with the peace of mind that comes from knowing you have done everything possible to protect yourself and your family. It does this by helping you achieve your hopes and accomplish your personal planning goals. Once these individual needs are addressed, good estate planning benefits your family by eliminating unnecessary probate costs, guardianship hearings and death taxes.
Wednesday, February 29, 2012 When Should I Start Planning For Long Term Care?
The first steps should be taken right now. The best approach is to have your care paid by insurance and the sooner you investigate what is offered, the more options you will have and the less it will cost. Long term care insurance is designed to pay some or all of a policy holder’s long term care needs.
Wednesday, January 18, 2012 Charitable Remainder Trust
Is a special type of irrevocable trust in which the assets donated to it are shared between the Trustmakers and charitable beneficiaries. Typically, a CRT pays income to the Trustmakers for a number of years (or entire lives), after which any remaining principal is paid to qualified charities.
Thursday, January 12, 2012 How Can I Remove Property From My Taxable Estate and Still Benefit?
To save estate taxes, these appreciating assets must be eliminated from the gross taxable estate. The solution is to convey such appreciating assets to an irrevocable trust that contains special instructions. Those instruction state that at your death the trust’s assets will belong to your designated beneficiaries; therefore, the assets will not be a part of your taxable estate when you die.
Wednesday, January 04, 2012 What is a Living Will?
Living Wills, in essence, are intended to provide you with a way to express in advance your desires concerning your health care treatment. They are mainly used by those who desire to authorize the withdrawal of life sustaining care. Living Wills can also be used to provide instructions about the types of medical treatment the patient does not want withheld or withdrawn.
Wednesday, December 28, 2011 Should More Than One Successor Trustee Be Named?
The decision to choose more than on Successor Trustee to serve simultaneously may be based on several factors. Often one person possess all the necessary skills to serve alone. If this is not the case, co-trustee can be appointed and trust responsibilities divided. If co-trustees are appointed, the trust agreement should state the specific responsibilities of each Trustee and how joint decision are made.
Another benefit of naming multiple co-trustees is that if one of them resigns, becomes disabled or dies, the other co-trustee is already in place to continue the trust administration without any interruption. Without this protection, the beneficiaries must deal with the burden of deciding whom to appoint as a Successor Trustee.
A final benefit of naming co-trustees is that they can monitor each other so that trust assets are managed and distributed as the Trustmaker intended. Many believe that is simply good policy to make sure that multiple individuals are jointly responsible for the trust’s administration as it can help prevent the mismanagement, misuse or theft of the trust’s assets.
Wednesday, December 21, 2011 How Can A Trustee Be Replaced?
The trustmaker of a revocable trust can change a trustee at any time prior to his or her disability or death by amending the trust to name a new Successor Trustee. The trust can include instructions that outline the circumstances that allow a Successor Trustee to be removed.
Thursday, December 15, 2011 What Are The Advantages and Disadvantages of Selecting a Corporate Successor Trustee?
Trust companies or bank trust departments have substantial expertise in serving as trustees, are highly regulated by state and federal agencies, provide professional financial management and have the financial resources to pay for costly mistakes. The disadvantages, as with other professionals, include their higher fees, their lack of knowledge of the Trustmaker’s family and the fact that they are often seen as uncaring and dispassionate. Including instructions in the trust that permit the trustee to be replace if appropriate can mitigate some of these disadvantages.
Thursday, November 17, 2011 What Are the Advantages and Disadvantages of Selecting an Attorney, CPA or Financial Advisor as Successor Trustee?
Professional advisors generally have expertise in finances and knowledge of the legal requirements of trust management. They also usually carry professional liability insurance that financially protects your beneficiaries if mismanagement of trust assets occurs. What professional trustees possess in financial and legal expertise they lack in knowledge of the Trustmaker’s family and goals. Also with their professional skills come higher fees. However, a professional’s fees are often more than compensated for by their ability to obtain for beneficiaries a better return on trust investments.
Wednesday, November 09, 2011 What Are the Advantages and Disadvantages of Selecting a Family Member or Friend As Successor Trustee?
An advantage of selecting family members or friends as Successor Trustee is that they have personal knowledge of the family. Their knowledge of the true needs of the beneficiaries can prove valuable. They can also be trusted to act in the beneficiary’s best interest and usually will serve for little or no fee. The disadvantage of family members or friends serving as Successor Trustee is that they may make decision on an emotional rather than objective basis and they often lack the financial skills necessary to invest and manage large sums of money.
NEXT WEEK: What Are the Advantages and Disadvantages of Selecting an Attorney, CPA or Financial Advisor as Successor Trustee?
Thursday, October 27, 2011 Who Can I Select To Be A Successor Trustee?
A Successor Trustee can be any adult. Possible candidates include family members or friends. Alternately, the services of a professional trustee can be used. These include attorneys, certified public accountants and trust companies or the trust department of a bank. Selection of a trustee is an important decision and each alternative has advantages and disadvantages.
NEXT WEEK:
What Are the Advantages and Disadvantages of Selecting a Family Member or Friend As Successor Trustee?
Monday, October 17, 2011 Upcoming Estate Planning Seminars - Two Locations
The greatest estate plan in the world is worthless unless it controls your property. We have been getting many questions recently about designating trusts as beneficiaries, especially with regard to IRAs and 401K plans.
We are pleased to announce that Hooper Law Office will be holding a Beneficiary Designation seminar for all who are interested in understanding how your choice of beneficiary affects your estate plan.
The seminar will be held on Tuesday, October 18th in Room 123 of the Neuville Public Museum at 1:00 p.m. and also on October 19, 2011 at Hooper Law Office, 2 Systems Drive, Appleton, WI 54914. We will host an afternoon session beginning at 2:00 p.m. and an early evening session beginning at 5:30pm. Light refreshments will be served.
Limited seating available, please RSVP to Sharon at 920-993-0990. We look forward to seeing you at this informative seminar.
Wednesday, September 28, 2011 What Are the Duties & Responsibilities of a Successor Trustee
The most important duty is to implement the Trust's instructions concerning how the trust property should be used to aid the beneficiaries. Guardians decide how to take care of a beneficiary's physical needs, the Successor Trustee decides how to use trust assets to pay for those needs.
Among other responsibilities, a Successor Trustee should: make an inventory of trust assets; protect trust assets and make sure they are properly invested; prepare an accounting for beneficiaries and implement the trustmaker's instructions as to how assets are to be distributed to the beneficiaries or used for their benefit.
The Successor Trustee does not have to act alone. The trust should authorize the Successor Trustee to obtain whatever professional services are necessary to carry out the trust's instructions. Each state has statutory guidelines that regulate a trustee's responsibilities. Trustees must use reasonable business judgment in the investment, management and diversification of the trust assets, taking into account the needs of the beneficiaries. Additionally, trustees must not allow trust assets to be wasted or invest money or other property in speculative or other imprudent investments.
NEXT WEEK: Who Can I Select To Be A Successor Trustee? Wednesday, September 21, 2011 It is Important to Name a SuccessorTrustee
It is important to name a Successor Trustee to prevent the family from having to go through court proceedings to appont a new Trustee if the Trustmaker is no longer able to serve due to disability or death. The Trustmaker should discuss the appointment with the peson to be named so that person will be aware of the duties and responsibilities of a Successor Trustee when the Trustmaker can no longer serve.
NEXT WEEK: What Are the Duties and Responsibilities of a Successor Trustee? Wednesday, September 14, 2011 How Do I Nominate and Replace a Guardian?
You may nominate a guardian for your children in you will. Wills are the legal tool used because the guardian appointment is officially made in probate court. Because of this, individuals with minor children who plan their estates with a living trust should have a will drafted to nominate a guardian.
A guardians can be replaced signing a new will that nominates a new guardian. This can be done at any time prior to the death of both parents. After the death, the guardian can only be changed by court order. Therefore, the appointment of a guardian should be re-evaluated on a regular basis as your family needs change.
Next Week: Is It Important to Name a Successor Trustee? Friday, September 09, 2011 How Do I Choose A Guardian?
This may the most difficult decision a parent has to make; however, if you do not choose a guardian a judge may make the decision who will raise your children. Don't allow this to happen - choose someone who shares your ideas and values in raising children. Also consider the proposed guardian's ability to financially care for your children.
All issues should be discussed thoroughly with the proposed guardian in order to ensure the person you select is qualified to make sure he or she is willing and able to serve as primary guardian. It is always a good idea to have someone named as a backup guardian in case the first person selected is unable to serve. The backup guardian is known as a successor guardian and can service if you decide to replace the primary guardian or if the primary guardian is uanble or refuses to serve when needed.
Next Week: How Do I Nominate and Replace a Guardian? Friday, September 02, 2011 What Are The Duties of A Guardian
A guardian is responsible for caring for the physical needs of minor children or adults who are disabled. They make decisions involving basic needs such as housing, clothing, medical care and schooling. For minors, the guardian is the person who will tuck your child in at night. For disabled adults, the guardian is the person who decides if they can be cared for at home or if their condition requires placement in a group home, assisted living or facility or nursing home.
Wednesday, August 10, 2011 The Importance of Guardians and Trustees
No other single estate planning issue is more important for parents than making the difficult decision about who will take care of your children if you are unable to care for them yourselves. These decisions often paralyze parents into not planning at all. We can help you through this process, because by not planning you may abandon to strangers in probate court the right to choose who will take care of your children.
In planning for children there are two questions to ask. The first is, "Who will take care of my children's physical needs?" This is the role of a guardian. The second question is "Who will be responsible for managing the children's inheritance until they are mature enough to manage it themselves?" This is the role of a trustee. Wednesday, July 20, 2011 How To Select An Estate Planning Attorney
Estate planning involves reviewing and analying your desires and finances today to insure that you and your family are prepared for tomorrow. We offer the following tips to provide you with the information needed to select an estate planning attorney who has the experience and traning to do an excellent job for you.
*Interview only attorneys whose practices are dedicated to planning estates.
*Ask if the attorney will help you avoid the additional costs, delays, loss of privacy and other problems of probate.
*Hire only an attorney you like and can trust.
*Determine the law office's procedure for handling client requests for information and performing leg work before you hire.
*Find out if the attorney will return your phone calls quickly.
*Ask if the attorney will quote y ou a fixed fee for designing and implementing your estate plan.
*Determine whether the attorney can prepare your estate planning documents within a month's time.
*Choose only an estate planning attorney who offers comprehensive estate planning services.
*Be sure you can read and understand your estate planning documents.
*Determine if the attorney remains current with changes to estate planning laws that affect your estate. Tuesday, June 28, 2011 What is a Power of Attorney?
In a Power of Attorney you ("the principal") name a chosen "agent" to exercise legal authority on your behalf the same as if you were doing it yourself. The authority granted can be whatever rights you desire the agent to exercise over your legal affairs and your property. Such authority can include making deposits and withdrawals from your bank accounts, managing your investments, selling your home or anything else you could do yourself.
Typically such Powers of Attorney take legal effect immediately. Also, the legal authority granted the agent in all Powers of Attorney terminates at the principal's death and usually also terminates if the principal becomes mentally disabled. Wednesday, June 22, 2011 Healthcare Power of Attorney
All states have laws that authorize you to create a special Power of Attorney in which you designate an agent to make health care decisions for you if you are unable to do so yourself. These Healthcare Powers of Attorney can also be used to provide instructions to your agent concerning the type of care you do or do not want to receive if disabled, seriously ill, or injured. It is important to get professional advice when preparing a Healthcare Power of Attorney because each state has its own requirements. The person you select for your healthcare agent should be someone who not only knows you well, but also understands your views about continuing health care in circumstances where you are terminally ill or suffering from permanent loss of consciousness. Wednesday, June 01, 2011 Tax Law Update Seminar
Hooper Law Office will be hosting Tax Law Update seminars at the Appleton office on Tuesday, June 7, 2011 at 2:00 and 5:30 p.m., and on Thursday, June 9th at 2:00 p.m. We will be discussing the changes to both the income and estate tax systems as well as describing planning strategies for the future. Please RSVP to Amanda. Monday, May 23, 2011 Wills
Wills are, by far, the most well-known estate planning document; however, their role in estate planning is often misunderstood. Wills are a useful estate planning device, particularly for younger couples with children. A will is necessary to appoint a guardian for minor children in case of the parents’ death, and can be used to fund additional property into trust at death. They also provide a simple solution to create an asset management system for beneficiaries by creating testamentary (will-created) trust shares. However, many people are unaware that wills do not help families avoid costly probate court procedures upon the death of their loved ones. In fact, wills essentially act as a set of instructions for the probate courts to follow. Furthermore, because probate court is public record, anyone is capable of reviewing your estate financials and identify your beneficiaries. A will may be a viable solution to your estate planning needs but oftentimes there are less costly and better-suited answers. Tuesday, May 17, 2011 Retirement Planning with Social Security
Social Security is a complex benefit that must be properly utilized in retirement planning. Divorce, disability, death of a spouse, early retirement, investments and spending habits are just some considerations in this area of financial planning.
When and how an individual or couple takes social security benefits may have a large effect on their retirement. For instance, if someone is working beyond retirement age, a younger spouse may benefit greatly from collecting on that working spouse’s social security benefits rather than his or her own. It is important for all of us to understand these benefits and how they may affect our estate and disability planning. Monday, May 02, 2011 What Your Clients Need You to Know About Social Security
On Tuesday, May 10, 2011 at 9:00 a.m. Hooper Law Office will be presenting a social security seminar for advisors with Guest Speaker Tim Gierke, the District Manager of the Appleton Social Security Office. The session is free and qualifies for 3 CE. Tuesday, April 19, 2011 Divestment Strategies and Long Term Care
Preserving assets through divestment is a poorly understood area of law. Often we are asked about how the annual gift tax exclusion (currently $13,000) relates to long term care planning. In short, it really doesn’t. The annual gift tax exclusion does not reduce the Medicaid penalty period for asset transfers that occurred within five years of receiving long term care benefits. In Wisconsin, nearly any transfer of income, non-exempt assets, and homestead property for less than fair market value is considered a divestment. However, there are strategies available for preserving the maximum amount of assets and incurring the minimum penalty. Wednesday, April 13, 2011 What is HIPAA?
The Health Insurance Portability and Accountability Act (HIPAA) was passed about fifteen years ago to ensure that people’s health care information remains private. It prevents health care providers from releasing your private information to unauthorized individuals. However, one unfortunate consequence of this law is that oftentimes loved ones are unable to obtain necessary information when an emergency arises. A proper estate plan will incorporate a HIPAA-compliant release of information that allows key individuals to speak with health care providers. There are no requirements regarding who can be named in an authorization and that decision should be made according to your individual circumstances. Monday, March 28, 2011 Is This All About Taxes?
Estate planning has much less to do with taxes and much more to do with making sure your wishes are known and honored. Families change, needs and interests change, and sometimes your plan should change accordingly. The changing tax landscape acts as a reminder that you should revisit your estate plan regularly. Monday, March 14, 2011 Estate Taxes in 2011
Just a couple of months ago, few estate planning professionals were willing to offer predictions regarding where the 2011 estate tax was headed. We now have answers and opportunities. The 2011 estate tax exemption amount is $5 million, and its sister tax on lifetime gifts is also $5 million. These exemption increases offer excellent current opportunities to plan charitable bequests. Monday, March 14, 2011 Estate & Income Tax Law Seminar
Tomorrow, March 15, from 9:00 a.m. to noon, we are holding a seminar: Recent Developments in Income Tax Law and Recent Developments in Estate Tax Law. This will be held at our office at 2 Systems Drive, Appleton. Monday, March 07, 2011 What is a Financial Power of Attorney
A power of attorney is a document that authorizes an individual, called the Agent, to act on behalf of another (the Principal). It can be drafted to give the agent broad discretion or very limited, specific powers. The major benefit of this document is that it allows the Principal to choose who will act on their behalf in case they become incapacitated, and helps avoid costly guardianship proceedings. Generally, a power of attorney is either immediately effective or a “springing” power, which becomes effective only upon the incapacity of the Principal. Monday, February 28, 2011 What is a Trust?
A trust is an agreement that certain property should be managed by one person (the trustee) for the benefit of another (the beneficiary). There are three basic trust types: revocable, testamentary and irrevocable.
A revocable trust is often used as the centerpiece of the family’s estate plan. Upon creating the trust, the Trustmaker(s) place property into the trust, which then protects that property from the probate process. Normally with a revocable trust, the Trustmaker is also the trustee and beneficiary of the trust, and retains all the same powers of ownership including changing or terminating the trust.
A testamentary trust is directions for the creation of a trust contained in an individual’s will. Essentially, the individual is requesting the probate court during probate to create a trust for certain assets.
An irrevocable trust is often used to plan for estate taxes or long term care. It operates with the same general principles as a revocable trust; however, it cannot be changed as readily. It allows people to retain control over their property while positioning their assets in a manner that prevents medical costs from depleting their life savings. Tuesday, February 22, 2011 Heritage Planning Seminar
For Financial Advisors:
We are offering a Heritage Planning seminar on Thursday, February 24, 2011 at 9:00 a.m. at our Appleton office.
Heritage Planning is becoming an important component of the services offered by the planning and professional communities, but many people do not yet have a clear understanding of how heritage planning works or what it accomplishes.
The concepts, content and benefits of heritage planning that you will learn about during this fast-paced event will be explored through the perspective of your own business, so you can see why heritage planning is becoming the norm, and understand what it looks like in practice. Monday, February 14, 2011 Choosing A Trustee
The trustee is responsible for carrying out the trust instructions, which may provide a great amount of discretion for that individual or entity to make decisions regarding investment and distribution of the trust property. The trustee also manages the trust’s assets for the benefit of the beneficiaries. Therefore, selecting the right trustee is a crucial aspect of estate planning. In most cases when establishing a revocable living trust, it is appropriate for the person making the trust to serve as the initial trustee. However, when the Trustmaker becomes incapacitated or dies, it is important that the right successor trustee is in place to control the trust. A discussion of possible successor trustee candidates with your estate planning attorney will help you appoint the appropriate family member, friend or professional trustee. Wednesday, February 02, 2011 Three Essential Estate Planning Documents
Although there is no "one size fits all" estate plan, certain documents are necessary for every individual. Whether you choose to plan with a will, a trust, or die intestate (allowing state law to determine the disposition of your assets), you should make certain that you have a valid and current durable power of attorney, healthcare power of attorney, and HIPAA authorization. These documents ensure that, in the event you become incapacitated, your selected loved ones have authorization to review your healthcare and financial information and make decisions on your behalf. Without such documents in place, it is likely that your family will have to request a guardianship through the court system, which is an expensive and time-consuming process that may limit their options during a crucial time. |