Check out this article: Ensure you revisit estate plans when clients move to other provinces and territories. Here’s what to consider. 1. WILL VALIDITYEach province and territory has its own criteria for a valid will. The new jurisdiction may have different rules regarding whether a subsequent marriage or divorce revokes a will. And if your client doesn’t have a will, each has its own intestacy rules. 2. PROBATEProbate fees differ throughout Canada. Nova Scotia and Ontario are the most expensive, at 1.645% and 1.5% respectively, of the estate’s value on the date of death. Minimizing these fees is less of a worry in Alberta and N.W.T., where they’re capped at $400. 3. DUAL WILLSIf a client relocates to or acquires certain assets in Ontario, such as shares in private corporations, it may be possible to minimize probate fees using multiple wills (different assets are allocated to each will). This strategy may also be available in B.C. under the soon-to-be-in-force Wills, Estates and Succession Act. For real property in Quebec, like a cottage, clients may be able to execute notarial wills to avoid the probate process. 4. DEPENDENT’S RELIEFThis type of legislation ensures support to a deceased person’s dependants if she failed to provide adequately for them in her will. The Supreme Court of Canada has confirmed that B.C.’s legislative requirement to provide “proper maintenance and support” includes not only the basic necessities of life, but also moral obligations. This requirement can lead the court to redistribute an estate, even to the extent of providing for an adult independent child who was excluded from http://www.advisor.ca/tax/estate-planning/4-estate-planning-tips-when-clients-move-133213
How do you know who to call when a loved one dies? Well, as an Orange County estate planning lawyer, I have numerous tips that will help you. The first thing you should do is to contact a funeral home, this may be per your loved ones request or a funeral home of your choice. Next you need to contact the beneficiaries of your loved ones assets and then call and estate planning lawyer to look over their will. After that you should contact banks or credit card companies that need to notified. Lastly, you should make a list of friends and family that will want to attend the funeral. For more estate planning advice please visit this blog: http://blog.tompkins-law.com/2013/12/an-estate-planning-lawyer-discusses.html
Read this article we found: After several years of significant change, 2013 will end with relative certainty related to estate tax laws. However, this does not remove the need for careful year-end planning. Higher marginal income tax rates for ordinary income, capital gains and dividends – coupled with the imposition of the new (and complicated) 3.8% surtax on net investment income for higher-income individuals – can create new challenges and opportunities. A few simple actions may result in savings if taken before year-end. Transfer Tax Exemption and GST Exemption At the beginning of the year, Congress enacted legislation that “made permanent” the exemption amount that individuals may transfer by gift and/or at death without being subject to federal transfer taxes. Notably, the legislation includes an annual inflation adjustment for the federal exemption amount and a maximum tax rate of 40%. The inflation-adjusted federal exemption amount is $5,250,000 for 2013, and will be increasing to $5,340,000 in 2014. In contrast, Illinois has established its exemption amount at $4,000,000 for state estate tax purposes – which amount is not adjusted for inflation. The rates of Illinois estate tax on Illinois estates range from 8% to 16%. Illinois also allows a marital deduction for state transfer tax purposes for assets passing in qualifying trusts for the benefit of a surviving spouse (including trusts for which a similar federal marital deduction is not elected). In order to ensure a death tax at each successive generational level, a generation-skipping transfer (“GST”) tax – equal to the highest estate tax rate – is imposed on transfers to grandchildren or more remote descendants. However, every taxpayer is also given a separate federal GST exemption equal to the federal transfer tax exemption ( i.e., $5,250,000 in 2013 and $5,340,000 in 2014), although the federal GST exemption is applied separate and apart from the federal transfer tax http://www.lexology.com/library/detail.aspx?g=266d087f-1091-4bbf-90eb-639a8fc82ece
Read this article we found: With the responsibility for saving for retirement shifting to workers as companies and the government abandon pension plans, experts say estate planning is crucial step in creating a secure financial future. “You can either plan accordingly in an efficient and organized manner or just let things happen,” says Ben Barzideh, wealth advisor at wealth management firm Piershale Financial Group, in Crystal Lake, Ill. “When you don’t plan for the transfer of your estate to one generation to the next, you can end up losing more money to taxes than you had to.” Not having a clear estate plan can not only be costly to your beneficiaries, it can also create unnecessary heartache, warns trusts and estates attorney Avi Kestenbaum. Estate planning used to only be an obligation of the wealthy, but that’s no longer the case. “Anyone who has a penny to his or her name, children, or might even be coming into money in the future, needs to have the basic estate planning documents,” Kestenbaum says. Kestenbaum adds that in the past, estate planning was all about minimizing taxes, and while that still plays a role it also now includes “elder law planning.” “People are living longer and you need to make sure your money will last; it’s about making your IRA stretch as long as possible to cover your basic needs, cover long-term health-care costs and make sure the people you want to inherit your assets will.” Here are four tips on what you need to know and how to get started with creating your own estate plan. Have an Open Mind. According to Kestenbaum, many people think estate planning is a morbid and complicated topic. “It’s more about living than dying, it can be a pleasant process, but often people over think it and overcomplicate it. After all, we all know who we love and want to take care of.” http://www.foxbusiness.com/personal-finance/2013/11/22/4-tips-to-begin-estate-planning-process/
Read this article we found: Technology is changing the world of estate planning, with new intangible assets that must be accounted for, and new ways of accounting for them. Carrie Bray, a senior wealth manager with Buckingham Financial Group, said planning for how to pass on digital assets is an essential part of estate planning. “We own so may assets electronically,” Bray said. “Technology is advancing quicker than the lawmakers can keep up with it, to determine if you can pass those assets on.” Bray listed some examples of assets that could rack up a significant digital fortune: • Frequent flyer miles; • iTunes libraries; • Online gaming accounts; • Bitcoin accounts; • Digital photo collections; and • PayPal accounts. read more at http://www.bizjournals.com/dayton/news/2013/11/27/estate-planning-should-include-digital.html
Check out this article we found:
When successful business owners reach a certain age, it becomes imperative that they address the issue of succession planning. Many of them may have been dodging this particular conversation for years, yet they often come to their advisors with seemingly ironclad convictions about how they’d like the succession to play out.
That doesn’t mean that they actually know what they want.
Often, a business owner meets with a financial advisor who has only cursory knowledge of the tools related to transfer of ownership or assets and effective strategies to minimize or avoid future or current tax liabilities related to ownership changes.
They also come to the advisor fully devoted to a set of myths, beliefs and emotions that are almost always counterproductive in the early stages of the process.
The first step by any qualified advisor should not be a discussion of strategies or tools. It should be a frank discussion of what the client really wants.
That discussion requires breaking down some myths that are almost universal amongst small business owners and confronting not only the realities of succession planning, but also the emotions and family dynamics that are powerful forces in many small businesses.
Read this article we found:
If you're like most people, you think estate investment planning is only for the wealthy. The truth is that everyone — regardless of how much money they have — needs an estate investment plan. Here are a few frequently asked questions about estate investment planning, along with the answers that may help you better understand this subject:
http://www.iberkshires.com/story/45171/Estate-Investment-Planning-is-Not-Just-for-the-Rich-and-Famous.html
What is an estate plan?
An estate investment plan is a program for the management and distribution of your assets upon your death, as well as instructions for handling your affairs should you become unable to do so while you are still alive. Your estate investment plan should include a will and/or a revocable living trust as well as updated beneficiary designations for your 401(k), Individual Retirement Account, savings bonds and life insurance policies. Both a durable power of attorney and a health care power of attorney should also be created. Your financial adviser can help you work out the details of your plan and can also help keep it up to date.
Why do you need an estate investment plan?
An estate investment plan can not only potentially reduce the taxes your heirs must pay on assets they receive from your estate, but can also ensure that your accumulated wealth will go to the individuals that you intend to receive it. In addition, an estate investment plan can help avoid probate proceedings, an often long and expensive process that can open your financial matters to the public.
What is the difference between a will and a revocable living trust?
Basically, a will is a legal document that directs how your assets will be distributed among family members, charities or others upon your death. It is important to update a will periodically to reflect any material or personal changes in your life. A revocable living trust (RLT) is an entity, like a corporation, that holds and owns your assets, while you are alive and continues to hold your assets after your death. Like a will, the RLT directs how your assets will be distributed at your death, but because ownership does not change at your death, it can do so without the expense, delay or publicity of probate court. A revocable living trust gives a trustee the right to make decisions for you if you become incapacitated while a will has no effect until your death.
What is a durable power of attorney?
Whether you create a simple will or a revocable living trust, it is important to have a durable power of attorney. A durable power of attorney is a document that designates a person who can sign on your behalf and handle your financial matters in the event of your incapacity. A durable power of attorney becomes void at death.
Having a basic estate investment plan can help ease stresses on your family, especially during a difficult time. Your financial adviser, with the help of your tax and legal advisers, can help you take necessary steps today to ensure that your wishes are carried out and that you and your loved ones have the peace of mind you would want them to have.
Check out this article we found: When “Queen of Mean” Leona Helmsley left $12 million in trust for the care of her beloved Maltese, Trouble—a move that took third place on Fortunemagazine’s list of the “101 Dumbest Moments in Business” for 2007—she was ridiculed for excessive generosity toward a mere animal, just as during her life she was ridiculed for her stinginess toward people. Yet the high-profile case of Trouble has increased awareness of this valuable tool—the pet trust—for the rest of us. If, through the use of these trusts, more pets are cared for after their guardians die, then Mrs. Helmsley will have accomplished something positive. While the idea of providing for a pet after death has been around for centuries, laws supporting pet trusts are a fairly recent creation. According to Gerry W. Beyer, a law professor at Texas Tech University School of Law specializing in estate planning, “Trusts for pets are very similar to trusts for children.” Beyer urges anyone considering a pet trust to find a knowledgeable attorney. “What if all of their property is in survivorship form? Then funding a pet trust through a will provision may not work. It’s just too risky to do without legal advice.” Beyer also points out the importance of planning—realistically—for the pet’s lifespan. “Discuss whether or not you want the trustee to pay for heroic medical care. Get real specific.” Stacey Romberg is a Seattle-area estate planning attorney specializing in pet trusts. At least half of her clients are concerned about providing for their pets. “Not every client needs a pet trust,” Romberg says. “Trusts are complex. Instead of setting up a trust, a client could give $10,000 and Buddy to a caregiver; lots of people do. It’s my job to explain the options and let the client decide.” Romberg cites the case of one client who had a sickly dog with special needs, including a cart for his hind legs. The client left $50,000 in trust for her dog, knowing that otherwise, her family or friends might be reluctant to spend that amount for a pet’s care. On the other hand, Steve Smith, co-founder of Rolling Dog Ranch Animal Sanctuary in Montana, provides a cautionary tale about trusting family with your pet after your death. “We’ve found that family members sometimes can be unreliable caregivers; their willingness to care for a pet can change over time. People make assumptions regarding their family loving their pet, when what will literally happen is, the day after the funeral, the pet is taken to the nearest shelter.” Linda Griffin, a 52-year-old Seattle resident, plans to avoid such a tragedy. She and her partner are guardians of four dogs: an older German Shepherd mix, and three younger Miniature Poodles (whom Griffin calls porta-pups). Twelve years ago, when exploring estate planning, Griffin asked Romberg about creating a trust for their pets. “They’re like our kids,” says Griffin. “You wouldn’t leave who cares for your kids up in the air, would you?” She talked to her sister and niece about being caregivers. “I told them I didn’t expect them to keep all four dogs, or however many I have at the time, but I do expect them to find good homes for any they can’t keep.” When asked if friends or family were shocked at the idea of a pet trust, Griffin replies, “They already think we’re a little nuts about our animals, so they weren’t surprised!” Finding the best trustee and caregiver for your pet is critical to the success of your planning. Beyer strongly recommends choosing different people for each task, to prevent any conflicts of interest. And the pet covered should be clearly identified. “In one case, a caregiver went through three black cats before anyone realized the original cat had long since died,” he says. Make sure the named caregiver is willing. That seems basic, but as Smith points out, you simply can’t assume. http://thebark.com/content/pet-trusts
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