Jackson White Law » Life’s Checklist

Serious illness or disability?

jtanner — Wed, 03 Jun 2009 17:03:08 +0000

One of the challenges of life is the possibility of serious illness or disability. As we get older these issues become more critical as the possibility increases with age. It is very important to prepare in advance for this eventuality. Waiting until the illness or disability strikes can result in loss of security for the person who is ill or disabled and further losses to their spouse and family.

It is a fact of life that mental impairment is becoming more and more a challenge of old age. You may wish to review the 10 Signs of Alzheimer’s on my other blog, End of Life Transitions. These challenges may seriously affect your ability to make rational and reasoned decisions about personal care and finances. You may also wish to avoid leaving a huge financial burden, either for taxes or debts, to your heirs.

Perhaps the word to the wise is plan ahead. Do not assume that good fortune or good health will last forever. It is not pesimistic to prepare for the future, it is wise to do so.

7. Be aware of your limits on gifting

jtanner — Sun, 17 May 2009 13:00:23 +0000

7. Be aware of your limits on gifting. There is an annual maximum amount you can give to any one individual without having a tax consequence.

The current annual gift tax maximum is $12,000 per person per year. In addition, there is a lifetime exemption of $2,000,000. Gifts under the $12,000 yearly exemption do not count against the lifetime exemption.

If you give any one person gifts that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.

6. Learn about Trusts

jtanner — Thu, 14 May 2009 13:00:19 +0000

6. Learn about Trusts. Simplify settling your end-of-life issues by transferring your property to a Trust. A Trust is administered by a Trustee. The Trustee can either be the person transferring the property, known as the Trustor, or can be a relative or even a financial institution. Trusts come in a variety of different kinds and can be rather simple or highly complicated, depending on the wishes of the Trustor (creator of the Trust).

There are several reasons for creating a Trust, these include:

1. Owning property in more than one state or country.

2. Having assets sufficient to incur estate tax obligations.

3. Having heirs with special circumstances or needs.

4. Owning an operating business concern.

5. Having a desire to keep family affairs private.

5. Start and keep an accurate inventory of your real property and your valuable personal property

jtanner — Mon, 11 May 2009 13:00:02 +0000

5. Start and keep an accurate inventory of your real property and your valuable personal property. This inventory can be a written, audio, or video recording. Be sure to include the name of the owner for each possession. Do not forget to update this whenever there are any substantial changes in your possessions.

Keeping an inventory can remove a lot of the uncertainty experienced by the Personal Representative of your estate. It will also assist you in the event of loss due to theft or a natural disaster. Keep in mind, an inventory should not be kept at the same location as the property.

4. Mark your calendars for will updates

jtanner — Thu, 07 May 2009 13:00:42 +0000

4. Mark your calendars for will updates. An old will or trust may end up doing more harm than good. In our experience, about ten percent of all estates have some type of conflict. These estate conflicts are expensive and directly impact the amount of estate assets, including cash that pass on to the heirs. Avoid difficult conflicts with your estate by keeping it up-to-date.

3. Make sure you have a living will and a durable power of attorney

jtanner — Mon, 04 May 2009 13:00:25 +0000

3. Make sure you have a living will and a durable power of attorney. These two documents can give you personal control over your own health care, even if you should become incapacitated. These documents are available for free on the JacksonWhite Elder Law Web site or you can have an estate planning attorney customize one to your specifications.

2. Review your current estate planning documents and strategies frequently

jtanner — Fri, 01 May 2009 13:00:00 +0000

2. Review your current estate planning documents and strategies frequently. Changes in the law may affect your current situation – sometimes to your advantage. Talk to the person who established your estate planning documents on a regular basis and ask that they keep you updated with changes in the law.

1. Get a will

jtanner — Wed, 29 Apr 2009 19:09:15 +0000

1. Get a will. Determine if you need a will by answering the following five questions:

1. Do you or your spouse have any children that are not children of the present marriage or partnership? This question applies even if one of the spouses is already deceased. The question also includes the situation where you have children but were not legally married.

2. Do you have any items of sentimental or monetary value that you wish to give to a specific person or organization?

3. Do you own more than one parcel of real estate? This especially applies if the real estate is located in more than one state.

4. Do you wish to give more than a proportionate share of your estate to one of your children or other heirs? This applies also if you do not wish to give someone less than their proportionate share or nothing.

5. Do you have a very large estate worth more than the current Federal Tax Lifetime Exemption amount? In 2009 this amount is $3,500,000.

If you answered yes to any of these questions, you most certainly need a will. If you have minor children and wish to designate a guardian in event of your death, you may also need a will.

Introducting…Life’s Checklist

jallen — Thu, 23 Apr 2009 21:11:37 +0000

Wouldn’t it be nice if someone handed you a checklist of goals and told you that if you could accomplish those goals you’d have a better life? What if that checklist also detailed how to accomplish those goals? Sounds awesome, right?

That’s what we hope to do by converting our “End of Life Transitions Blog” to “Life’s Checklist.” Our new and improved “Life’s Checklist Blog” will be just that, a checklist of things to have done to make sure you and your family are prepared for the present and future. We hope you enjoy the new format and feel free to comment on the items. We’re here to help!

Happy Blogging!

Introducting…Life's Checklist

jallen — Thu, 23 Apr 2009 21:11:37 +0000

Happy Blogging!