Do I need a will?

How much does it cost?

Isn't a "Living Will" all I need? Why do I need a Health Care Power of Attorney?

If I am planning to marry and I have at least one child by a prior marriage, what should I do?

What are the advantages and disadvantages of Joint Tenancy?

How much can I leave my spouse and children without estate taxes if I die?

What is the most overlooked estate planning concept?

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Do I need a will?
Everyone with any property, real or personal, needs a will, if they care at all who receives their property upon their death.

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How much does it cost?
This is just like asking the grocery clerk how much groceries cost before knowing what you are going to buy.

I charge $300.00 for the initial meeting, which typically takes 1 - 2 hours. During this meeting, I listen to the client’s desires and offer some alternative methods to accomplish their desires. A reasonable fee is quoted in writing following their first meeting.

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Isn't a "Living Will" all I need? Why do I need a Health Care Power of Attorney?
Many clients feel that the "Living Will" covers the "typical nursing home situation". The problem is that the "Living Will" only covers terminal situations, and does not cover a situation where one is not terminal. For situations which are not terminal, a well drafted Health Care Power of Attorney is necessary.

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If I am planning to marry and I have at least one child by a prior marriage, what should I do?
Conventional planning for the married couple is based on the premise that the assets are available to the surviving spouse and then the common descendants. A different kind of plan must be considered to protect the interests of family members unrelated to the surviving spouse.

It is advisable that a couple intending to marry discuss the various opportunities and options before marriage.

The main tool to accomplish the parties' objectives is the "marital" agreement. In the typical agreement, each spouse gives up specified rights in the assets or income of the other spouse. In return, the spouse giving up the rights is usually promised some sort of payment in the event of a divorce or death. This often involves the use of life insurance.

The problem avoided by the marital agreement is the unplanned concept of "estate planning by coin flip". The goal is to avoid the passing of property on the death of both spouses in a manner dependent randomly on which of the spouses died last.

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What are the advantages and disadvantages of Joint Tenancy?
Joint tenancy is a convenient form of ownership. It is a form of ownership that has been encouraged in the marketplace by financial institutions and, to some extent, by professional advisors. Joint tenancy, it is estimated, is utilized in ninety-five percent of married couples’ estate plans. Because of the survivorship feature of joint tenancy, it is thought to create an estate plan instantly.

Joint tenancy requires no will, trust or other estate planning device. It does not go through probate court on the death of the first joint tenant. In fact, this has been one of its main selling points: "If there is no probate, owning property jointly must be good".

We do not recommend the use of joint ownership to our clients to any great extent. Our advice is that joint ownership is a potential planning pitfall that should be avoided in most instances. Untutored planning with jointly held property can create income and estate tax pitfalls, even when this planning appears proper.

Favorable Features of Joint Ownership:

• Easy and convenient.
• Psychologically pleasing.
• Creates a "mini estate plan".
• Not complicated on the surface.
• No gift tax to spouse.
• No death tax on death of first spouse.

Adverse Features of Joint Ownership:

• Passes property to unintended heirs.
• Affords no planning opportunity.
• No control.
• Excellent for creditors.
• Gift taxes to non-spousal owners.
• Death tax is created without ownership as to non-spousal owners.
• Fifty percent step up in basis, as opposed to full step up in basis.

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How much can I leave my spouse and children without estate taxes, if I die?
The IRC provides that property going to a surviving spouse passes free of tax, with no limit, and children can receive $11,000.00 each year from each parent and $1,000,000.00 either by gift or at death.As the law currently reads, this amount will increase each year until, in 2010, the state tax is eliminated. The law has a sunset provision and in 2011 the estate tax is reinstated. The estate tax exemption and the gift tax exemption amounts are not the same.

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What is the most overlooked estate planning concept?
No one should leave their property to either a spouse, children or other person without the protection afforded by a spendthrift trust. A spendthrift trust protects "inherited" property from the inheriting person’s creditors and can also pass the property free of estate taxes to successive generations and the inheriting person can still have "control".

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