Savvy planners know that failing to plan is not desirable. Benjamin Franklin is often quoted, “If you fail to plan, you are planning to fail.” Few planners would guess how many of their clients might not have a plan in place. According to a recent survey by Harris Poll, 64% of Americans do not even have a will. Here’s a link to an article in USA Today which discusses the survey. Many would guess their wealthier or more sophisticated clients would not be among those without a plan. But, even … [Read more...] about Failure to Plan is a Disaster for Clients and their Advisors

Retirement assets comprise a large portion of most Americans’ total wealth. By March 2015, retirement assets hit $24.9 trillion. That’s a lot of money! The key to maximizing and maintaining that large chunk of your clients’ wealth is to keep the money in the retirement plan for as long as possible. There are two reasons it is normally best not to withdraw retirement assets for as long as possible. The first reason is asset protection. As long as the assets are in a retirement plan (like a … [Read more...] about Planning for Retirement Benefits: Get it Right the First Time

Now that the election of Donald J. Trump has become a reality, the question is how that will affect estate taxes and estate planning. The simple answer is that for most Americans there will be no change, as currently 99% of taxpayers are not subject to the estate tax. If the law remains unchanged, the amount a taxpayer can pass free of estate tax in 2017 will be $5,490,000, or $10,980,000 for married taxpayers. President-Elect Trump has proposed the complete elimination of the estate tax. In … [Read more...] about Estate Tax Repeal in 2017?

Persons with disabilities have been seeking a way to save for college, medical equipment and health care expenses, and retirement without being disqualified from government assistance programs such as Medi-Cal and SSI (Supplemental Security Income) for decades. Generally speaking, a disabled person receiving needs-based government assistance cannot have more than $2,000 in a bank account or other assets. There are exceptions for a personal residence, one car, certain work-related equipment, and … [Read more...] about ABLE Accounts: A New Planning Tool for Persons with Disabilities

Tom Clancy was a prolific scrivener of action novels. Upon his death at age 66, he left a substantial estate. His Will divided his estate into three shares – one share to his wife, one share for his wife to use during her life (with the remainder to go the daughter of their marriage), and one share to go to his children from previous relationships. Weeks before he passed away, Clancy executed a Codicil to his Will which included the following sentence: “No asset or proceeds of any assets shall … [Read more...] about Ambiguities Can Lead to Litigation

Fans of Young Frankenstein, Blazing Saddles, The Producers, and Willy Wonka were saddened by the death of Gene Wilder. Unlike others who die from Alzheimer’s disease, the comedian’s death was attributable entirely to this deadly disease. The fact is that Alzheimer’s disease is the real cause of death of millions of people, causing a slow death of the brain until the body succumbs, most often to contributing conditions such as pneumonia, sepsis, kidney failure or heart disease. Wilder’s family … [Read more...] about Alzheimer’s Disease Claims the Life of Actor, Comedian and Philanthropist Gene Wilder

Section 2704 of the Internal Revenue Code was enacted to limit the discounts available to certain transfers of limited partnership or limited liability company ownership interests among family members. Section 2704(a) deals with lapsing rights. An example of a lapsing right might be an LLC in which the parents own the voting shares and the children own non-voting shares. There is a provision that upon death the voting shares become non-voting shares. Should the shares be valued as voting shares … [Read more...] about IRS Issues Proposed Regulations Affecting Advanced Estate Planning – Clients Should Act Now!

In U.S. v. Adent, 117 AFTR 2d 2016-1505 (7th Cir. 5/10/16), Leonard and Joyce Advent owned a commercial property as joint tenants with their son, Derek. Leonard and Joyce owed tax to the federal government. The Internal Revenue Service placed a lien on the property for the amount owed by Leonard and Joyce. The IRS then sought to foreclose and force a sale of the property and Leonard and Joyce objected to the sale, claiming it would prejudice Derek who was not a party to the tax liability owed … [Read more...] about Protect Against Creditor Claims – Even Tax Liens

According to the United States Census Bureau, almost half of seniors 95 years old or older live in skilled nursing homes. Slightly over five percent of the entire senior population 65 years and older occupy assisted living, congregate care, and board and care facilities while just over four percent live in skilled nursing homes (for a total of almost ten percent of the senior population). As bad as these statistics are, they are misleading. The reality is that you either have a 100% chance of … [Read more...] about Don’t Rely on Government Officials for Information about Medi-Cal Planning Options

Don’t Rely on Government Officials for Information about Medi-Cal Planning Options According to the United States Census Bureau, almost half of seniors 95 years old or older live in skilled nursing homes. Slightly over five percent of the entire senior population 65 years and older occupy assisted living, congregate care, and board and care facilities while just over four percent live in skilled nursing homes (for a total of almost ten percent of the senior population). As bad as these … [Read more...] about Don’t Rely on Government Officials for Information about Medi-Cal Planning Options