| Sun | Mon | Tue | Wed | Thu | Fri | Sat |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| 7 | 8 | 9 | 10 | 11 | 12 | 13 |
| 14 | 15 | 16 | 17 | 18 | 19 | 20 |
| 21 | 22 | 23 | 24 | 25 | 26 | 27 |
| 28 | 29 | 30 | 31 |
Posted by Howard Kirkpatrick, Esq. on Tuesday, March 09, 2010 at 07:46 AM | Permalink | Comments (0)
Technorati Tags: 2010, congress, estate planning, estate tax, howard kirkpatrick, living trust, middle class, power of attorney, repeal, tax, trust, trusts, will, wills
|
Posted by Howard Kirkpatrick, Esq. on Thursday, February 25, 2010 at 11:40 AM | Permalink | Comments (0)
Technorati Tags: asset protection, asset protection trusts, divorce, estate plan, estate planning, golf, howard kirkpatrick, lawsuits, postnup, prenup, prenups, Tiger, Tiger Woods, trust, trusts
|
Of course all living trusts aren't created equal. Are all cars the same? What about hamburgers? How about mortgage loans? The question seems silly in reference to cars and hamburgers, right? But until the real estate market dove off a cliff, most Americans thought loans were just boilerplate legal documents with different interest rates. Why anyone would believe such a myth with hundreds of thousands of dollars at risk is beyond me. But just like loans, many Americans believe the same thing about living trusts. And just like loans, this mistake could cost hundreds of thousands, if not millions of dollars in losses. All living trusts are NOT created equal. First, we must understand what a living trust is to appreciate the differences between them. A "living" trust is simply a trust that created while you are alive. It is that simple. All living trusts have this one fact in common. After that, however, remember this truth--all living trusts are unequal. Some attempt to solve tax problems. Solve attempt to solve probate. Some attempt to solve probate and taxes. Some attempt to prevent distribution disputes. Some attempt to provide asset protection for your heirs. Some attempt to address disability issues. Some are flexible, while others have very rigid rules. Remember, a trust is nothing more than a tool to achieve a goal. The important thing is, did you discuss all of these options and more with your lawyer? Did you know there are about 10 different ways to set up the estate tax provisions alone? Do you know if you have an AB trust? An ABC trust? A Disclaimer trust? A QTIP Trust? A Marital Exemption Trust? A special needs standby trust? Did your attorney discuss you family situation with you? The financial and marital stability of your heirs? I think you get my point. Living trusts are wonderful estate planning tools that, if used correctly, can provide incredible benefits such as tax and probate savings as well as asset protection and peace of mind. However, one size does not fit all and the drafting of a living trust, or any trust for that matter, should never be left the jack-of-all trades attorney. If you choose this method, your heirs may be in for the shock of their lives. All trusts are not created equal, just like cars, hamburgers and mortgage loans. Remember this when thinking about a living trust. Don't make the same mistake many made about loans.
Posted by Howard Kirkpatrick, Esq. on Sunday, February 21, 2010 at 03:38 PM | Permalink | Comments (0)
Technorati Tags: estate planning, howard kirkpatrick , living trust, living trusts, loan, loans, mortgage, real estate, real estate market, trust, trusts, will
|
Posted by Howard Kirkpatrick, Esq. on Thursday, February 18, 2010 at 02:21 PM | Permalink | Comments (0)
Technorati Tags: estate plan, estate planning, estate planning attorney, estate tax, estate taxes, exemption, gifting, gifts, howard kirkpatrick, IRS, northampton attorney, nursing home, trusts, wills
|
As promised, this is Part 2 of this common question. In my first post, I wrote about how Medicaid's rules, including the 5 year look-back and the penalty provisions, make gifting property to anyone a risky venture. Now lets look at the question from a personal standpoint. First, giving away the family home to the kids, no matter how wonderful they are, results in a loss. In other words, you don't own your home anymore. Someone else does. Often times, the family home has been in the family for many years. Children were reared in that home. Holidays were spent in that home. Memories are associated with the family home that encompass several generations of family. When the family home is gifted away to the children, however, many parents feel a tremendous loss of control and independence. After gifting the house away to the kids, the parents who still reside in the home are vulnerable to the misfortunes of their kids. For example, if a child gets divorced, half of what your child's interest in the property will be available to the ex-spouse. This could leave you out in the cold. Another unfortunate reality we live with each day are frivolous lawsuits. What would happen to your house if your child is sued? Even worse, what if your child is sued and loses the lawsuit? The entire interest in the house would be available to creditors. Once again, the parents are in big trouble. Yet another common problem occurs when a child predeceases the parent. The child's interest in the house will most likely go to his/her spouse, which puts the parents at the whim of a son or daughter-in-law. I think you get the point here. When property is gifted away with no strings attached, it is no longer yours. When it is no longer yours, you have no control. And once you lose control, the property is subject to all the financial, medical and marital problems of the new owners. Thus, giving the family home to the kids may be the worst personal choice you ever make. More about tax consequence in Part 3...
Posted by Howard Kirkpatrick, Esq. on Monday, February 15, 2010 at 05:32 PM | Permalink | Comments (2)
Technorati Tags: estate planning, gifting, gifts, house, howard kirkpatrick, Medicaid, power of attorney, property, tax
|
Posted by Howard Kirkpatrick, Esq. on Thursday, February 11, 2010 at 10:28 AM | Permalink | Comments (0)
Technorati Tags: estate plan, estate planning, gifts, house, howard kirkpatrick, irrevocable trusts, law offices of howard s. kirkpatrick, living trusts, masshealth, Medicaid, nursing home, trusts, wills
|
Posted by Howard Kirkpatrick, Esq. on Monday, February 08, 2010 at 05:09 PM | Permalink | Comments (0)
Technorati Tags: annual review, estate plan, estate planning, estate tax, estate taxes, health care power of attorney, howard kirkpatrick, northampton, powers of attorney, probate, tax, trusts, wills
|
Posted by Howard Kirkpatrick, Esq. on Friday, February 05, 2010 at 08:39 AM | Permalink | Comments (0)
Technorati Tags: attorney, delaney house, estate planning, estate taxes, health care power of attorney, health care proxy, health care proxy, holyoke, howard kirkpatrick, living trusts, northampton, nursing home, power of attorney, probate, seminar, seminars, taxes, trusts, wills
|
Most times the overlooked members of our families are the most vulnerable--the kids. As they can't speak for themselves they need parents and caregivers to be intimately involved in their day-to-day lives. Today, kids face a daunting world that requies parents do more than ever to ensure their safety and well-being. So 2010 will see the launch of a new product--the new "Minor Protection Plan--a Protection Plan for Children". What is it? It's similar to an estate plan, but for kids. For example, children seem to have more allergies today than in the past--peanuts, bee stings, medications, etc. In an emergency, the caregiver must know who to contact and what to do--fast. With both parents needing to work to make ends meet today, children are often in the hands of secondary caregivers (grandparents, babysitters, daycare providers, etc.). These people must know what to do immediately in an emergency. The Minor Protection Plan provides each child with legal documents and a credit card-like card with emergency medical and contact information available 24/7 anywhere in the world. The cards go to school teachers, baby-sitters, daycare providers, grandparents, and any other secondary caregivers. In addition, this new plan allows the parents to pick guardians for their children should anything happen to them. Without this, the court's will appoint someone to take care of your kids (at a hefty cost) and it may not be who you would have liked. This plan will be like nothing else on the market. Estate planning is not just for senior citizens anymore!
Posted by Howard Kirkpatrick, Esq. on Friday, January 15, 2010 at 01:16 PM | Permalink | Comments (0)
Technorati Tags: estate planning, grandparents, guardians, howard kirkpatrick, howard s. kirkpatrick, living trusts, living will, massachusetts, minors, newlyweds, northampton, parents, trusts, wills
|
For whatever reason, people think wills are for older people. Maybe the idea comes from TV shows that portray the family sitting in the lawyer's office for the "reading of the will." In reality, however, wills are more important to newlyweds and parents with minor children than to older persons. In fact, as we age and acquire more valuables and assets, wills give way to trusts as the estate planning tool of choice due to their numerous tax and asset protection benefits. At some point, wills even become a detriment to older persons because they ensure court involvement in the estate. All that being said, the people who should have a will don't--younger people and parents with minor children. Why? First, a will directs who will receive your property when you die. Without a will, the state will determine who gets your "stuff." Suffice to say, control is the issue. State laws change and when they do, so do the people who inherit your life savings. Needless to say, without a will, your property may not go to the people you want it to go to, including your spouse or ex-spouse! Second, and more important to couples with minor children, a will allows you to select the guardian of your children should something happen to you. You might name your parent or brother to take over in the event of your death. If you don't have a will, the Court will do its best to pick someone to care for your children after you're gone. Again, the person the Court appoints, might be the last person you want in charge of your kids. At that point, you have no control. For this reason alone, no parent should be without a simple will when they welcome a new member of the family into the world.
Posted by Howard Kirkpatrick, Esq. on Thursday, January 07, 2010 at 10:29 AM | Permalink | Comments (0)
Technorati Tags: children, estate planning, guardian, howard kirkpatrick, minor, parents, state law, trust, trusts, will, wills
|