4 Steps for Simple Estate Planning

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Estate planning is a difficult topic to address because it requires you to think about a world without you in it. No one likes to reflect on their own demise, which is why many people simply put estate planning off for another day and only get around to it when the chips are down.

However, like so many things in life, taking care of your estate planning now is the right step, even if you don't have any dependents. It's a weight off your shoulders, and it leaves plans in place if the unthinkable were to happen to you.

If you have a significant net worth, you should consider talking to a lawyer for planning advice for your estate, but for most people, these four steps should take care of most of your estate planning needs.

1. Prepare a master information document. A master information document is simply a collection of the information a person would need to properly close out your accounts and obtain any and all account balances you might have. This is an invaluable tool for whomever is responsible for cleaning up your estate after you pass away.

http://money.usnews.com/money/blogs/my-money/2013/12/17/4-steps-for-simple-estate-planning

What Phone Calls You Should Make When a Loved One Dies

Many of my clients become overwhelmed and confused once a loved one passes away.  This is to be expected, but you must have a list of people to call on hand so that no one is forgotten.  As an orange county estate planning lawyer I usually suggest to my clients that the first thing they should do is call a funeral director.  This might have already been chosen by a loved one or your might have to make the decision to your best ability.  This phone call is important because it gets the funeral plans started while you deal with other things that need to be taken care of.

To read the full version of this blog post visit:
http://blog.tompkins-law.com/2013/12/an-estate-planning-lawyer-discusses.html

The Big Estate-Planning Goof You May Be Making

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You may have made a giant estate planning mistake without even knowing it — forgetting to update the names of your beneficiaries for your employer-sponsored retirement plans, IRAs, life insurance policies, mutual funds, bank accounts, brokerage accounts, annuities and 529 college savings plans.

If your beneficiaries are out-of-date, when you die, your assets could go the wrong people — a former spouse, for example — no matter what your will says.

You probably designated a beneficiary when you initially bought insurance or signed up for your retirement plans. And you likely filled out POD (payable on death) or TOD (transfer on death) certificates when opening your bank and investment accounts, effectively naming beneficiaries for them.

But your life and wishes may have changed since then. That’s why it’s wise to periodically review all your beneficiary designations and amend any that are out-of-date. Some financial advisers suggest also naming secondary or contingent beneficiaries. If you don’t, and your primary beneficiary dies before you do, your assets will go to probate, which can be costly and time-consuming.

To read the rest: http://www.forbes.com/sites/nextavenue/2013/12/16/the-big-estate-planning-goof-you-may-be-making/

Estate planning basics: Three things you need besides a will -- and why you need a will, too

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Barry Glassman, special to wtop.com

WASHINGTON - If you care about who will get your assets and care for your minor children upon your death, creating a will is strongly recommended.

Without one, your state will decide who gets your money, typically in a certain order, starting with your spouse, then your children, moving on to your parents, then siblings and finally going to a broad category called "other," should none of the previous people exist.

A will is the most basic of estate documents, yet 50 percent of Americans with children and 41 percent of baby boomers (age 55-64) don't have one, according to a survey from RocketLawyer.com.

That's a lot of potential court dates with families fighting over money and kids. This potential nightmare can be solved simply by telling the world -- in writing - - who gets what.

Aside from a will, there are three important documents that all of us should have, but most don't. If you would like to stay in control of your money and your medical decisions until the end, then here's what you need to consider:

1. Beneficiary designations: If you have a life insurance policy, or any type of retirement account, you likely have signed a beneficiary designation. This is an extremely important piece of paper because who gets this money is not determined by your will, but who you named on this form.
   If there were any changes in your life -- such as getting married or divorced, or having a child and then more children -- it's time to revisit who's listed as your beneficiaries. To find out who you currently have designated, contact your insurance company for life insurance, your employer for 401(k) or your brokerage firm for IRAs.
2. Financial power of attorney: Creating a financial power of attorney lets you designate someone to make financial decisions on your behalf, should you become incapacitated or unable to make those decisions for yourself.
   You can decide the scope of powers to grant your "agent" -- from access to your financial accounts to managing all your financial affairs. Without a Financial POA, the court will step in and appoint someone to take care of these decisions.
   This process can take time, and while the court typically appoints a close family member, they may not be the person you would choose. This is especially imperative if you have a non-spouse partner.
3. Medical power of attorney: Like the financial power of attorney, a medical POA lets you choose who will make medical decisions on your behalf if you are not able to make those for yourself. The power allows your designee to have access to your medical records, consult with your doctors and admit you to a hospital or long-term care facility, among other things.
   Your medical POA will also see that your Advanced Medical Directive is carried out. In this important document, you provide specific end-of-life instructions for what type of care you want or don't want, such as tube-feeding and/or living on a ventilator.
   These decisions can be deeply personal and incredibly difficult for loved ones to make, so it's best to make sure that your wishes are clearly defined.

http://www.wtop.com/249/3521384/3-things-you-need-besides-a-will

5 estate-plan strategies for boomers

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For many Americans, the task of putting together an estate plan is one of those “to-do’s” that never gets done.

It’s hardly surprising. Estate plans are easy to ignore until it’s too late. They can be cumbersome to implement — generally, you’ll want to have a legal professional draw up the documents. And the process entails thinking about events most of us like to pretend won’t ever happen — death and debilitating accidents.

But avoiding these important personal-finance tasks leads to a much worse scenario: Your family is rocked not only by the inevitable tragic event — but their pain is compounded by the complete upheaval of their financial life.

“Estate planning is an act of love,” wrote John Ventura, in the Kiplinger book “Estate Planning: The Complete Guide to Wills, Trusts and Maximizing your Legacy.”

Read more: http://www.marketwatch.com/story/5-estate-plan-strategies-for-boomers-2013-11-29

Gifting for Tax Planning

Most people start planning for their death to make sure that their assets are given to the correct people.  There is also another main objective of estate planning, which is tax planning.  It is important to plan for taxes because there are many tools that can be used to reduce the expenses.  One tool used is gifting.  For estate owners, this tool is ideal because they get to see their loved ones rewarded.  You can gift to your heirs, or your can gift to a charitable organization.

For more information visit my estate planning attorney Orange County blog.

http://blog.tompkins-law.com/2013/12/tax-planning-through-gifting.html

http://www.tompkins-law.com/estate-plan-reviews-and-amendments