Living Wills and Healthcare Power of Attorneys Help to Make Sure Your Wishes are Met

Writen by Thomas McNally

No one can foresee problems that may arise should he become incapacitated. Yet, you can avoid negative consequences of unforeseen problems by creating Living Wills and Healthcare Power of Attorneys (HCPOA).

Setting up a Living Will or HCPOA is a relatively simple task. The first step it to consult with an attorney that specializes in estate planning to ensure that your documents are clear. Here’s an overview of what you can expect from your Living Will and HCPOA.

Healthcare Power of Attorney
The HCPOA, otherwise known as a “healthcare proxy” is a legal document that enables an individual that you appoint (your “agent”) to act as your healthcare representative if you become incapacitated. The agent becomes your acting representative at the moment you become incapacitated, thus eliminating the need for your loved ones to argue over your rights and wishes in court.

Your agent has the authority to request or deny any medical treatment that he determines to be appropriate. Therefore, it is a good idea to choose someone that you trust as your agent. Please note: In most states, your spouse will be your default agent. If you are not married but are in a lifelong relationship your partner, he does not automatically become your agent. Make sure that you appoint your partner as your agent to ensure that he or she has control over your medical decisions if you are unable to make them.

Because your agent has whatever powers you give him or her, make sure that he or she understands your desires. Some of the decisions he or she may need to make include but are not limited to:

• Deciding whether or not you will receive medical treatment
• Withdrawing life-support

Living Will
A Living Will and HCPOA should be used in tandem, since one document complements the other. Your Living Will is a document that clearly expresses your desires. In short, your Living Will provides your medical team with instructions for how to carry out your wishes should you become incapacitated. For example, if you become brain dead, you can state in your Living Will that you wish to receive or not to receive life support.

By creating a Living Will, you ensure that your desires will be carried out without court involvement that can be costly and stressful for your family. Criteria for enacting a Living Will vary by state; so make sure that you consult with an attorney to ensure that your Living Will complies with the rules in your state.

Thomas McNally is the staff writer at the National Directory of Estate Planning, Probate & Elder Law Attorneys. McNally stresses the importance of finding a qualified estate planning attorney to ensure that your estate passes to whom you want, when you want, and is carried out in the manner you’ve chosen.

Corporate Kit Estate Binders

Writen by Jimmy Sturo

Corporate kit estate binders help to keep everything in one place. Corporate binders usually have important material related to a public or private company, which includes a minute book, share certificate, common seal, stock ledgers, etc. All of these things are kept in a well-built, turned-edge, D-ring minute book binder engraved with the company name. This is a corporate kit binder.

You can maintain your estate planning records with these attractive and functional estate planning kits. Normally, the estate plan binders are stamped with the name of the estate plan or trust. These kits provide ample storage room and index tabs for the organization of your wills, trusts and other estate planning documents and forms. A binder keeps these records in one convenient, organized, and professional unit.

There are different estate binders available on the market, and all available in different colors. The three-ring binder format holds copies of loose papers. It contains a client’s customized estate plan and gives explanations of all estate planning documents and information. It is also able to maintain the trust letters and documents given by the law office in the binder. All the files which are needed to keep a business in order are hold in corporate binder.

A corporate binder provides a professional place to file and store the documents and paperwork required to be in fulfillment with business entity laws and regulations. Corporate binders are the most economical way to present an organized and portable source of information. They come in a price range of around $20-$30.

Retirement Planning for the Future

Writen by Frank Owen

Many people make the mistake that retirement is only something that older people need to worry about. Unfortunately, this way of thinking can longer be acceptable, because those in their 20’s and 30’s who do not plan for their future now will end up with very little come retirement age. If you engage in planning for retirement now, you’ll be able to rest assured that you can continue to live the lifestyle you’ve always dreamed about. Remember, it’s never too early to start planning for the future, and you want to make sure you have enough to support yourself by the time you can’t work anymore.

The first option when planning for your retirement is to open a Roth IRA. Your current employer may have this option available to you, and you might be able to open one for you and for your spouse. This type of IRA will grow for many years tax-free, and you don’t have to do anything to it. Once you’ve reached age 59 and a half, you can withdraw whatever money has accumulated or leave it there to continue to develop until you really need it. Because you never have to touch the IRA, this type of investment is a great way to plan for the future.

Alternatively, if your company has any sort of retirement fund program you can choose to participate in, it would be wise to do so. Many employers match the money you contribute to your fund, so if your company offers a retirement program it would be a good idea to take advantage of it. These are just a couple of simple things you can do to plan for the future, and if you start while you’re young that gives you more than enough time to build up a tidy nest egg you can live off of when you can’t work anymore.

Planning for the Intangibles

Writen by Ronald Hudkins

Every state has statutes and mechanisms in place that deal with disposal of tangible assets whether the deceased had a will or not. Families might fight over who gets the house, the cars, the stocks and the cash, but there is generally no question about where such property is located.

On the other hand, many of the questions surrounding intangible digital assets are just beginning to be asked, much less answered. Estate planning in the information age raises a whole new set of issues that just didn’t exist even as few as ten years ago.

When a person dies, for example, who inherits the computer files, the web pages, blogs and emails? More complicated yet, how are online bank accounts, stock holdings that exist entirely in digital media, or the rights to an exclusively online business to be handled? The proliferation of online businesses and the world’s propensity for doing paperless business means that digital holdings very often have considerable monetary value. What if nobody knows your passwords or your various usernames? Do your digital assets just disappear into the ether? Can your online business be seized and sold to pay your creditors?

The dynamic nature of Internet transactions makes their inclusion in a will eminently impractical. User names and passwords change, new businesses are created, new stocks are e-traded, and new email accounts come into being. Changing a will, or adding a codicil, every time your online dealings change is not at all feasible.

Even though the law governing digital assets is unclear, largely because it hasn’t yet been written, there are ways to protect those assets and make sure your heirs are able to locate and use them.

First, keep a master list of all your online dealings, complete with urls, user names and passwords. The list should include items like domain names, where they are registered, and when they need to be renewed to keep the business name and Internet location. Put this particular information on paper, update it every time something new is added or something old deleted, and keep it in a safe place with your other important business papers, preferably in a safety container.

Make sure your attorney or your estate executor is aware of the list, even if you don’t want it opened until after your death. Instruct your executor or attorney as to when the list is to become available to your heirs - for example in the case of serious illness in the event that someone needs to take care of online business transactions in your stead. Such instructions may or may not be legally binding, but chances are your instructions will be followed, as a matter of moral obligation.

If you have a prosperous online business, online bank accounts, e-trade accounts, or other valuable digital assets, those need to be figured into your estate planning. Otherwise, your heirs may be stuck with a messy situation and many unexpected expenses, or even legal challenges to deal with - problems that your estate planning was initially designed to protect against.

About Ronald E. Hudkins; Ronald Hudkins is a retired U.S. Army Military Police member that was assigned as a staff researcher. He has coordinated with military and criminal investigators, set on court marshals and worked closely with the Staff Judge Advocate Generals Office (JAG). He has a keen sense of legal matters - their interpretation, initiatives and guidelines. For imperative financial planning needs he suggests his book “Asset Protection and Estate Planning for All Ages.” Additionally, he offers a Free Newsletter at his web site: http://www.AssetProtectNow.com

Three Advantages a Roth IRA May Offer Your Estate Plan

Writen by Cristina Callegari

Many may not consider the possibilities that a Roth IRA can offer an estate plan. But, there are three advantages that a Roth IRA can offer if your estate value is under the Applicable Exclusion Amount ($1.5 million in 2005, and $2 million in years 2006 & 2007) and if one of your planning goals is to leave as much money as possible to your heirs.

Defining The Roth IRA

Simply stated, the Roth IRA is an IRA that individuals make contributions to on an after tax basis (contributions to a traditional IRA may be made with pre-tax money). When qualified withdrawals are taken1, they are totally free from federal income tax (state income tax treatment may vary depending upon your state of residence).

Estate Planing Benefits of a Roth IRA

There are three.

1.) Passing income tax-free money to an heir. The estate planning benefits begin with the Roth IRA’s ability to pass money to a beneficiary income tax-free on qualified distributions at your death, provided the Roth IRA satisfies a five-year holding period.

2.) The Roth IRA avoids forced depletion at old age. Due to minimum distribution requirements (forced distributions at age 70

Your Estate Planning Basics

Writen by Amy Nichols

You have probably accomplished a great deal with your life. Over the years you have worked, planned and saved. Perhaps you have even made some sacrifices to achieve your current level of success. It’s a sure bet that you will want to pass along your accumulated assets rather than hand them over for court costs, taxes or attorney fees.

Estate planning is the relatively simple process by which you prepare legal documents outlining your wishes for your estate upon your death. It can be difficult to plan for the end of your life, but this planning is necessary to protect your family and your assets.

What is your estate?

Your estate refers to your property, those things you own, including your total assets and liabilities. Your property includes your home, car, accounts (i.e. bank, retirement, and brokerage), jewelry, insurance policies and so forth.

The language of estate planning

It is understandable that the idea of planning for your family after die can be a little frightening. Familiarity with the terms used in estate planning will help you begin to develop some comfort with the process.

Estate: Refers to your property or those things that you own.

Property: Includes two categories, real (as in real estate/your home(s) and personal, which includes everything else such as stocks, bank accounts, car(s), jewelry, and so forth.

Intestate: Is a pre, or non-planning state. Dying intestate means that you have died without creating a will or trust to outline your desires for distribution of your estate.

Trust: Eliminates many of the financial risks in planning for the transfer of your estate from you to your heirs upon your death. Risks include taxes, probate, lawyers, creditors, judgments, etc. A trust can provide for the management of your estate if you become incapacitated as well reduce death taxes and assure a smooth transfer of your property according to your wishes. Trusts can be revocable or irrevocable. Talk with your tax or legal advisor about the benefits of each.

Probate: The process by which your personal property is legally transferred to your heirs upon your death. The probate process also identifies rightful heirs and determines how your assets will be distributed among them. Probate can be quite expensive (up to 10% of the net worth of your estate) but the expense can be avoided with estate planning.

Will: A written, legal document outlining your wishes for your real and personal property upon your death. You can also appoint a guardian for any minor children.

Beneficiaries: These are the people you assign to benefit with distribution of your real and personal property upon your death.

Your will can be an important tool of your estate plan. The goal of the estate plan is to allow you, rather than probate court and attorney, to maintain control of your assets. Planning allows you the opportunity to set forth clear directions and desires for your assets in the event of your death or physical or mental incapacitation.

Estate planning is a necessary and painless process. You will afford yourself peace of mind and you will smooth the road for your heirs in terms of property transfer upon your death.

Amy Nichols is a freelance writer and contributing author to http://www.howtowriteawill.com, a site providing free estate planning tips and information.

Do You Really Need A Will?

Writen by Ronald Hudkins

Many people wonder if they really need a will. They may think that they don’t have enough assets to bother with a will. Some people erroneously believe that a will causes your heirs to have to go through probate, leading to unnecessary expenses. However, a will is a good idea for just about everyone. Read on for some of the reasons to have a will.

A will is a document in which a person declares what he wants done with his property at the time of his death. A will has no effect until the person who wrote it, known as the testator, dies. The testator can also revoke a will at any time prior to his death.

If you die without a will, the state will distribute your property to your heirs according to the state’s intestacy statutes. The statutes might call for a distribution that is similar to what you want. Then again, maybe they won’t.

State intestacy laws will provide how the sum total of your property is to be divided among your heirs. It can’t provide for who will get certain specific items of your property. This can lead to many problems. Your heirs may not agree on who will get certain items of your personal property. For example, say you have inherited your grandmother’s wedding ring and intend to pass it on to your daughter. If you die without a will saying that is what you want, your son may feel very strongly that his wife should have it. So even if you don’t have a lot of assets, you may be concerned about making sure that certain items of your property go to the people that you want it to. You can do this with a will.

Another misconception about having a will is the idea that having a will causes your heirs to have to go through probate, and that it will be difficult and expensive. If you die without a will, the court is still going to have to oversee the distribution of your assets to your heirs. There is absolutely no reason to think that this process is made easier or less expensive by your not having a will. In fact, it will probably be more expensive. For one thing, whoever administers your estate will probably have to post a surety bond if you don’t have a will. If you do have a will, not only can you choose the person who will administer your estate, you can provide that he or she will not have to post a surety bond.

Do you have minor children? If so, you really need a will. If you don’t have one, the probate court will have to set up a conservatorship to manage your children’s share of your property. A judge will decide who manages the money. When each child turns 18, he or she will get his share, whether they can handle it or not. If you have a will, you can decide who will manage your children’s inheritance on their behalf and you can choose the age at which you want it to be distributed to them.

Even if your estate is small, there are good reasons to have a will. You should see an attorney who practices in the area of estate planning or wills and trusts. This attorney can also help you decide if you need more advanced estate planning techniques and help you implement an estate plan that is best suited to your needs.

About Ronald E. Hudkins; Ronald Hudkins is a retired military enlisted member that was assigned as a staff researcher. He was responsible to compile, write or conduct; reports, studies, statistics, reviews, plans, inspections, lessons and numerous other tasks deemed essential to operational efforts. His actions allowed superior, peer and subordinate commands, their designated leaders and staffs make vital and logical decisions. The ability to identify, analyze and propose solutions is a trait still exercised. For additional asset protection and estate planning needs he suggests his web site: http://www.AssetProtectNow.com.

Estate Planning Basics

Writen by Mansi Aggarwal

Greek philosopher Heraclitus had remarked that ‘you cannot step into the same river twice’ i.e. time will never be the same ‘Change’ is the only constant factor and ‘Death’ is the only certain thing in life. So what is true for today will not be true forever. A contended joyful life today does not entail happiness for all the successive years. Time can flip today or tomorrow. No one is sure that when the journey of life will meet its end and our eyes will never open again to see the sunshine. So, keeping the precariousness of life in mind, one should be prepared for the good as well as bad times.

An essential feature of this preparation is the planning of one’s estate. Estate planning is foremost judicious step in securing your family’s future and also to fulfill your desires after you depart from the world. Generally people think that they do not need to allocate their estate now, this should be done in old age. But the fact is that it is never too early to plan your estate. Doing so will be a great assistance to your successors. They will not have to tax their brains in dividing and managing your share. This will save their time and effort. You will also snatch your estate from being the victim of many expected quarrels that may arise amongst your heirs. The best part is that it is your wish that will be obeyed even in your absence.

Apart from these merits, another wonderful thing to pre-planning estate is the saving of tax. In order to do this you require gathering complete information about the types of will, the adequate time and manner of allocation of estate. Your attorney can be the best person to seek advice from. Once you make your intentions clear to him, he can direct you the correct way to follow to achieve your goals.

There are several ways in which estate planning can be done. For instance you can make wills (living wills are even helpful within your lifetime), plan your funeral arrangements, life insurance and other directives. ICMA RC is a good source to seek help and guidance. It directs you the step-by-step procedure to prepare your will and the manner in which you should bifurcate your assets. ICMA RC also makes one aware that if he or she does not write the will during his or her life period then after death the court will have the authority to allocate the property to the members. For those who have their own business ICMA RC especially suggests is to leave behind a paper trail behind. Documentation is the biggest evidence for your plans and desires for the future.

Whereas future life (old age and its consequences) is concerned Americans today largely rely on the Long Term Care Insurance. This has proved to be beneficial to numerous Americans in today’s date. However, one should be ultra careful and educated about the merits and demerits of policy before laying hands on it.

Often people question the pre planning of funeral arrangement. They think it is comical and worthless to do so. But they forget that by pre planning their funeral they are making things least complicated for their loved would be survivors. It is generally seen that when somebody dies his family members are gripped with the tension of funeral arrangements. They do not get any time to express their feelings and feel the loss that they have met. However, if the one who has died has pre planned his funeral; everything goes smoothly without any hustle bustle and in accordance to the will of the deceased.

So when are you planning your estate nowRemember it’s now or never!

Mansi aggarwal writes about estate planning. Learn more at http://www.stepstoestateplanning.com

Estate Planning - The Mortgage: To Pay or Not To Pay

Writen by Ronald Hudkins

Where does your home mortgage fit into your financial planning and particularly into your estate planning? In the world of yesteryear, the chief goal was to pay off the mortgage and hold the property free and clear. Higher land prices, higher building costs, and fluctuating interest rates have changed the landscape of the housing market, with instruments available from flexible interest schedules to interest-only mortgages, in which the buyer never actually purchases the property.

There are advantages to paying off your mortgage as quickly as possible and there are disadvantages as well. It just depends on your needs and your aims for the future, which route you should take. Say, for example, that you had just come into a lump sum of money - from a stock market windfall, inheritance from Uncle Joe, or some other pile of cash that gave you the option to pay off your mortgage and be done with it, or not.

Some things to consider in contemplating this matter include:
 Are you still working and intend to be working for 20 more years, or are you nearing retirement age within the next few years?
 Do you intend to retire in the home, or move to another retirement location altogether?
 Do you have children who would want to inherit the family home?
 Are you in a stage where you are actively trying to build a retirement nest egg?
 Is the interest rate on your mortgage high or relatively low?
 Do you need extra tax deductions or is that immaterial?

The answers to these questions can help you determine whether you want to use the extra money you have available for paying of your mortgage or put it to other uses.

If the following statements describe you, paying off the mortgage is the best option:
 You are a person who craves personal security and don’t like the worry of having a mortgage hanging over you.
 The interest rate on your mortgage is higher than that which you are currently earning on your investments.
 You would like to have money available to begin, or contribute more heavily to, an investment or retirement program.
 You don’t intend to retire in the home, but want to buy a smaller home by the lake, mountains, river, in the tropics, etc.
 Your mortgage is near to being paid off (within 10 years) so you are now paying more principle than interest.
 You have enough money to pay off the mortgage and still have a healthy savings account.

If these statements best fit you, you may want to ignore the mortgage and use the money for other purposes.
 The interest rate on your mortgage is lower than the interest rate you are receiving on your investments.
 You have more than ten years till retirement and are able to comfortably handle the mortgage payments and don’t anticipate any change in that situation.
 Paying off higher interest credit cards would be more beneficial to your financial situation than paying off a low interest mortgage.
 You still have 20 years to pay on the mortgage so there is a significant amount of interest still to be paid before you begin to seriously impact the principle.

These are questions that your estate planner or estate planning attorney can help you resolve by listening to your plans and making suggestions.

About Ronald E. Hudkins; Ronald Hudkins is a retired U.S. Army Military Police member that was assigned as a staff researcher. He has coordinated with military and criminal investigators, set on court marshals and worked closely with the Staff Judge Advocate Generals Office (JAG). He has a keen sense of legal matters - their interpretation, initiatives and guidelines. For imperative financial planning needs he suggests his book “Asset Protection and Estate Planning for All Ages.” Additionally, he offers a Free Newsletter, Articles and Forum at his web site: http://www.AssetProtectNow.com

Estate Planning - The Most Common Mistakes

Writen by Thomas McNally

Your estate consists of the assets that you will pass on to your beneficiaries when you pass away. Estate planning means deciding where your assets will go when you die. It takes time, thought, and the knowledgeable assistance of a qualified attorney.

Even if you diligently plan your estate on your own, it is easy to make mistakes. Mistakes can result in portions of your estate being unnecessarily taxed and assets going to the wrong beneficiaries.

We have compiled a list of some of the most common mistakes individuals make in estate planning. Please review the list, but also plan to meet with a qualified attorney to review your unique estate.

Failure to Prepare
One of the most common mistakes people make when it comes to their estate is that they simply fail to prepare a plan. Many people, especially the young and healthy, never even set up a Living Will. Living Wills are important to have at any age because they serve as a directive in the event that you become incapacitated. Even though far fewer young people plan their estates, more than twice as many 20-somethings die in car accidents than 60-somethings. Therefore, it is crucial that you plan your estate regardless of your age, health, or income level.

Choose your Beneficiaries
Your beneficiaries are those individuals who will inherit your estate when you die. It is important that you carefully consider and name your beneficiaries. Choose the appropriate individuals for the estate you will be leaving behind.

Many times, beneficiaries are children and spouses. However, if you have young children, you may not feel comfortable setting up your estate so that they inherit a large sum of money directly. How will they spend it? Are you sure that they would make wise choices?

If you would like to have more control over the estate after you die, then it is important that you set up a Trust for your beneficiaries. By establishing a Trust, you can allocate a certain portion of your estate towards a child’s education, first home, or other purpose of your choosing. Consult with a qualified attorney for more information about how to set up your estate for your beneficiaries.

Choose your Agent
Central to estate planning is choosing people to make decisions for you both during incapacity and after your death. These people include trustees, guardians, agents, and beneficiaries. Make sure that you select an agent who knows you and your wishes well. He or she will speak for you when you cannot, so it is vitally important that he or she knows you well. Make sure you and the agent have a clear understanding of his or her role in your estate and that you have clearly communicated your desires.

Leaving Assets
A significant portion of your assets might be vulnerable to estate taxes after you die. However, there are ways to leave behind an estate without losing most of it to taxes. It is important that you consult with a qualified attorney to discuss the most strategic methods for establishing your unique plan. A well-crafted plan will ensure that your beneficiaries get the most benefit from your years of hard work.

Review your Estate
Because life events, such as divorce, loss of job, etc., may change your assets, it is important to periodically revisit your plan to ensure that it is always current. Many people die without reviewing their assets, so their plans cannot be carried out as they had desired. By regularly reviewing your plan, you are able to help your beneficiaries inherit the assets you leave behind for them without having to fight for them in court or with other beneficiaries.

Thomas McNally is the staff writer at the National Directory of Estate Planning, Probate & Elder Law Attorneys. McNally stresses the importance of finding a qualified estate planning attorney to ensure that your estate passes to whom you want, when you want, and is carried out in the manner you’ve chosen.