Being a father has been a wonderful experience. I have two young boys and find so much pride in helping them and watching them grow. The more I look around and meet other parents I know this pride we all share. I see other parents constantly giving so of themselves to make sure their children are happy and healthy. Whether it is helping with homework, volunteering in class, or driving them to afterschool classes I am amazed these parents still have time to work, cook meals and maintain a house. After watching these parents give so much of their time I am surprised how few have created a Will. So much of life is out of our control and by not creating a Will we are leaving our children's future up to chance.
I understand creating a Will is a challenging subject especially when you have young children. It is one of those things in life we all know we should have but there is always a reason to put it off. Even as an attorney I always seemed to find an excuse. My wife and I probably talked about it a dozen times before we sat down and creating our Will. Looking back now I have to admit we never really had a good reason to put it off. When we finally decided to create a Will I was surprised how simple the process was. We did not have any complicated goals to accomplish. No elaborate family trusts or tax shelters. We just wanted to make sure our children would be taken care of if something ever happened to us.
For us, the most important issue for us was to nominate guardians for our children. We are blessed to have multiple people who would be willing to care for our sons, but for a combination of reasons we chose to nominate my mother as their guardian. Her ability to care for them physically, financially and morally made her the right choice for us. We felt she would be the best candidate to provide our sons with the love and care they deserved.
We had an additional concern about nominating a guardian. Our sons are from different marriages and it is likely if something ever happened they would end up living in different homes. We needed to have something in writing to make sure they could continue their realtionship even without us to hold them together. We added a clause to our Will instructing any guardian to make sure our sons continued to play an active part in each other's life. This includes asking the court for visitation rights if necessary. This issue was something that bothered my wife and I greatly and it was relieving to feel we had taken the right steps to make sure our sons would always be brothers.
After we were confident our sons would be taken care of we had to make decisions regarding our property. We both own little things that we want to see handed down. Without a Will it is likely our property be inventoried and sold off with each person getting a check. Sentimental value is a funny thing and to limit what we pass down to only the monetary worth of our property deprives them of many important memories and mementos. For me there are two things I feel this way about. The first is my parent's grandfathers clock. It was a fixture of my childhood and one of very few things that survived my parent's divorces and financial hardships. That clock symbolizes some stability to me that I needed as a child and to this day it puts me at ease and makes me feel at home. The second is an antique map my wife gave me a few years back. It is a map of Scotland showing where my family can be traced back to. Neither item is incredibly valuable but I would consider it a great loss to see them sold and the proceeds divided. By taking the time to find out what the real value of our property is, we have a great opportunity to preserve our family heritage and make sure our loved ones will always have something to remember us by.
The last thing for us to decide was who would take care of our final affairs. When a person dies they leave us with many memories and some sadness, but they also leave many tough decisions and responsibilities that must be taken care of. It was important for us to choose a person we trusted and somebody that we felt could handle it. I trust my mother with the well being of my children, but it would be borderline cruel to expect her to pull the plug on me. So I made my feelings known about health care decisions in writing and in person then left those decisions to be handled by my wife or father. We never want to burden on our loved ones with stress they cannot handle so it is important to make sure we choose wisely when we decide who will take care of our final affairs.
This whole process of creating a Will was challenging. Discussing our children's lives without us there to protect them was very hard. However I came out of it with a piece of mind that my family would be cared for no matter what happened. I see how much parents are willing to do for their children and the sacrifices they make on a daily basis. I urge every parent to do what comes so natural to them and protect you children by creating a Will. An attorney can help you create a very affordable Will and estate plan. If money is an issue you can find statutory and attorney drafted forms online to help create a simple will. There is no reason with all you give to your family that something this important should go undone.
Wednesday, June 9, 2010
Wednesday, June 2, 2010
Choosing the right person as your Executor is an important aspect of Estate Planning. Your executor will be the person who takes care of all your final affairs. It is a vast job that entails numerous responsibilities. Choosing somebody who is reliable and trustworthy is important.
The Executor's responsibilities will include making funeral arrangements, preparing final tax returns, distributing assets, cancelling credit cards, paying debts, filing your will with the court for a probate proceeding and helping resolve conflicts between loved ones.
This is not an easy job and you should ask the person you choose to make sure they are willing to accept the duty. Also choosing somebody local can help lessen the burned. Your Executor will be required to attend court and participate so limiting travel would greatly benefit them.
It is hard to accept we will not always be around to make our own decisions, but it is important to make sure somebody you trust is there is make decisions for you in your absence. Please spend the appropriate amount of time and care choosing an Executor for your estate.
Law Offices of Keith Dysart are available to help the people of Santa Cruz, Scotts Valley and San Lorenzo Valley with their estate planning needs. Santa Cruz Estate Planning Attorney
The Executor's responsibilities will include making funeral arrangements, preparing final tax returns, distributing assets, cancelling credit cards, paying debts, filing your will with the court for a probate proceeding and helping resolve conflicts between loved ones.
This is not an easy job and you should ask the person you choose to make sure they are willing to accept the duty. Also choosing somebody local can help lessen the burned. Your Executor will be required to attend court and participate so limiting travel would greatly benefit them.
It is hard to accept we will not always be around to make our own decisions, but it is important to make sure somebody you trust is there is make decisions for you in your absence. Please spend the appropriate amount of time and care choosing an Executor for your estate.
Law Offices of Keith Dysart are available to help the people of Santa Cruz, Scotts Valley and San Lorenzo Valley with their estate planning needs. Santa Cruz Estate Planning Attorney
Tuesday, May 18, 2010
Wills for Families
As a parent and husband the creation of my will brought with it many challenges. I was forced to consider my own mortality and think about what would happen to my family if something happened to me. It became clear to me that I had a responsibility to protect my family whether I was there or not. This included making sure they were taken care of financially and emotionally. It also meant knowing which family members I could trust with my responsibilities.
The most important issue for me was to make arrangements for my children. Appointing guardians to care for them ensured I would chose who I thought would best care for and raise my children if I could not. My family situation also offered a unique problem. My children are from separate marriages so it is likely if something happen to me and my wife that they would end living in different houses. It was important for us to have something in writing to make sure our sons would maintain their relationship even without us.
Distributing property is another important feature of a will. Without a will your property will be subject to probate statutes. This means your property will likely be inventoried and sold with your family members getting a check that signifies their percentage of the inheritance. So often with property a trinket or bauble carries so much more value to a member of your family that just receiving a dollar amount. For me I am in love with an old grandfathers clock my parents have and it would kill me to see it sold. To my sister that trinket was my grandfather's wedding ring. Without a will these items would be sold and the money divided, but with a will you can know what really matters to your loved ones and make sure they have something that will always remind them of you.
Another important reason to create a will and estate plan is to make sure who in your family will make decisions in your absence. Appointing an executor to take care of your estate and creating a "power of attorney" and "advanced health care directive" will let you decide who will be burdened with these tough responsibilities. Knowing the members of my family I could never ask my mother to pull the plug on me, but I trust my wife and father to make that decision in accordance with my wishes. When we pass away it leaves some challenging issues to be resolved and knowing which family members can handle those burdens will make it easier on everybody.
Creating a will requires you to thinking about tough and stressful issues. Our own mortality and what will happen to our family when we are gone are not easy subjects openly discuss. However what will begin as a stressful experience will leave you with a peace of mind going forward. The short discomfort is well worth the long lasting feeling of knowing your decisions will be respected even if you are not around.
The most important issue for me was to make arrangements for my children. Appointing guardians to care for them ensured I would chose who I thought would best care for and raise my children if I could not. My family situation also offered a unique problem. My children are from separate marriages so it is likely if something happen to me and my wife that they would end living in different houses. It was important for us to have something in writing to make sure our sons would maintain their relationship even without us.
Distributing property is another important feature of a will. Without a will your property will be subject to probate statutes. This means your property will likely be inventoried and sold with your family members getting a check that signifies their percentage of the inheritance. So often with property a trinket or bauble carries so much more value to a member of your family that just receiving a dollar amount. For me I am in love with an old grandfathers clock my parents have and it would kill me to see it sold. To my sister that trinket was my grandfather's wedding ring. Without a will these items would be sold and the money divided, but with a will you can know what really matters to your loved ones and make sure they have something that will always remind them of you.
Another important reason to create a will and estate plan is to make sure who in your family will make decisions in your absence. Appointing an executor to take care of your estate and creating a "power of attorney" and "advanced health care directive" will let you decide who will be burdened with these tough responsibilities. Knowing the members of my family I could never ask my mother to pull the plug on me, but I trust my wife and father to make that decision in accordance with my wishes. When we pass away it leaves some challenging issues to be resolved and knowing which family members can handle those burdens will make it easier on everybody.
Creating a will requires you to thinking about tough and stressful issues. Our own mortality and what will happen to our family when we are gone are not easy subjects openly discuss. However what will begin as a stressful experience will leave you with a peace of mind going forward. The short discomfort is well worth the long lasting feeling of knowing your decisions will be respected even if you are not around.
Tuesday, March 30, 2010
Value of Gifts to Estate Planning
Gifts offer a valuable tool in estate planning, but if not used carefully they can cause as many problems as they solve. The primary use of gifts is to manage the value of your estate to avoid estate taxes. Although there is no federal estate tax right now for 2010 it may be implemented before the years end and it is scheduled to return in 2011. So it is important to understand how you can use gifts to avoid what may be as high as a 55% tax rate.
Your estate is only subject to estate taxes if its value is above the minimum amount set for the year. In 2009 this amount was 3.5 million dollars and if nothing changes the amount will be 1 million dollars for 2011. You may use gifts to ensure the value of your estate is below the set amount. It is important to make sure your estate plan has taken into account the current exemption amount and any appreciation gained by your property.
Even though gifts may be beneficial it is important to understand the potential pitfalls. A few possible issues to watch for may include:
Gift may triggering other taxes
Gift may alter recipient's status for current support
Loss of property to you
Using gifts to avoid estate taxes may have other tax implications. It is important to make sure your gift falls within one of the exceptions to the federal gift tax. Also it is important to understand giving a gift that has appreciated in value may leave the recipient paying capital gains taxes. If the purpose of your gift is to avoid taxes then it is important to look at the big picture.
Another concern to understand how a gift can affect the recipients eligibility for financial and medical assistance. A gift may cause a students to lose financial aid, a person with special needs to lose financial and medical assistance, or a person classified as low income to lose benefits such as Medicare. A gift may be given with the best intentions, but without proper planning it may actually cause more harm than help.
Lastly I would urge you to understand the affect giving a gift may have on you. You may be giving away property that ensures your financial security. In addition you will surrender control of property that may have sentimental value. A gift to a child may seem natural way top honor the sentimental value, but there is no guarantee the property will not be sold or re-gifted later. It is important to understand when you give a gift you are giving up control of the property.
Your estate is only subject to estate taxes if its value is above the minimum amount set for the year. In 2009 this amount was 3.5 million dollars and if nothing changes the amount will be 1 million dollars for 2011. You may use gifts to ensure the value of your estate is below the set amount. It is important to make sure your estate plan has taken into account the current exemption amount and any appreciation gained by your property.
Even though gifts may be beneficial it is important to understand the potential pitfalls. A few possible issues to watch for may include:
Gift may triggering other taxes
Gift may alter recipient's status for current support
Loss of property to you
Using gifts to avoid estate taxes may have other tax implications. It is important to make sure your gift falls within one of the exceptions to the federal gift tax. Also it is important to understand giving a gift that has appreciated in value may leave the recipient paying capital gains taxes. If the purpose of your gift is to avoid taxes then it is important to look at the big picture.
Another concern to understand how a gift can affect the recipients eligibility for financial and medical assistance. A gift may cause a students to lose financial aid, a person with special needs to lose financial and medical assistance, or a person classified as low income to lose benefits such as Medicare. A gift may be given with the best intentions, but without proper planning it may actually cause more harm than help.
Lastly I would urge you to understand the affect giving a gift may have on you. You may be giving away property that ensures your financial security. In addition you will surrender control of property that may have sentimental value. A gift to a child may seem natural way top honor the sentimental value, but there is no guarantee the property will not be sold or re-gifted later. It is important to understand when you give a gift you are giving up control of the property.
Wednesday, March 24, 2010
How Often Should I Check my Trust
Having a living trust in place may give you peace of mind, but does it ever need to be updated? The honest answer is nothing is built to last forever and your living trust needs to be maintained just like anything else. Your trust is a reflection of (1) your (2) wishes about your (3) property conveyed in a (4) legal manner. Many things might have changed to affect this.
(1) Who "you" are might have changed.
You might have been through a divorce
You may have gotten married
Your spouse may have passed
Your health or your spouse's health may be declining
If you chose another person as trustee their situation may change
(2) Your Wishes may have changed.
It may be as simple as you feel differently now
may have been children born
financial changes
minor becomes an adult
(3) Your property may have changed.
May have changed up or down
(4) Laws may have changed
New taxes law changes
You may have moved to a new state with different laws
A living trust is a great tool to manage your assets, but as time goes on many things can change and it is important to make sure it is up to date.
(1) Who "you" are might have changed.
You might have been through a divorce
You may have gotten married
Your spouse may have passed
Your health or your spouse's health may be declining
If you chose another person as trustee their situation may change
(2) Your Wishes may have changed.
It may be as simple as you feel differently now
may have been children born
financial changes
minor becomes an adult
(3) Your property may have changed.
May have changed up or down
(4) Laws may have changed
New taxes law changes
You may have moved to a new state with different laws
A living trust is a great tool to manage your assets, but as time goes on many things can change and it is important to make sure it is up to date.
A Few Common Reasons You Need Estate Planning
This is just a brief article going over some common reasons people need to take care of estate planning. Estate Planning is a generic term to describe the ways your property can be distrubuted after your death. Probate is the default statutory scheme if you do not make legally make you wishes known. Wills are a simple instrument that can distribute your property and Trusts are a more flexible tool that can be used to control, manage and distribute your assets after your death.
Once you understand what exactly is available it becomes important to think about how you want your assets handled after your death. The tools available can be very simple or very complicated based on your desires. Here are a few reasons it may be important to make plans for the future.
1. You have children. In the event you die while your children are still young the court will decide who raises yor children unless you do so.
2. Choice. Probate is a statutory scheme that will distribute your assets to you spouse, children and blood relatives. A will or trust allows you the freedom to distribute your assets the way you choose.
3. Costs: probate and contested issues will drain money from your estate to pay for court and attorney's fees. In CA probate is very costly. Proper use of a will can make sure you the maximum amount of your assets reach the people you care for.
4. Power of Attorney. This comes in two types. Financial and medical and can be be extended to a person if you become incapacitated. Having orders regarding medical care and regarding your property ensures your wishes are followed. Family member's judgment may be clouded with their own emotions and your wishes should be respected during these times.
5. Your legacy. A trust is so flexible you can make sure your property reaches loved ones into the future. Giving support or specific property down the road can ensure you have a long lasting effect on your family even after you have passed.
This are just a few examples of benefits available. IT is an uncomortable subject to cover but it is important to make sure your family and you are cared for the way they deserve.
Once you understand what exactly is available it becomes important to think about how you want your assets handled after your death. The tools available can be very simple or very complicated based on your desires. Here are a few reasons it may be important to make plans for the future.
1. You have children. In the event you die while your children are still young the court will decide who raises yor children unless you do so.
2. Choice. Probate is a statutory scheme that will distribute your assets to you spouse, children and blood relatives. A will or trust allows you the freedom to distribute your assets the way you choose.
3. Costs: probate and contested issues will drain money from your estate to pay for court and attorney's fees. In CA probate is very costly. Proper use of a will can make sure you the maximum amount of your assets reach the people you care for.
4. Power of Attorney. This comes in two types. Financial and medical and can be be extended to a person if you become incapacitated. Having orders regarding medical care and regarding your property ensures your wishes are followed. Family member's judgment may be clouded with their own emotions and your wishes should be respected during these times.
5. Your legacy. A trust is so flexible you can make sure your property reaches loved ones into the future. Giving support or specific property down the road can ensure you have a long lasting effect on your family even after you have passed.
This are just a few examples of benefits available. IT is an uncomortable subject to cover but it is important to make sure your family and you are cared for the way they deserve.
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