Tri County Elder Law

Education Can Be Funded by a Trust

There are many different ways to fund a college education and a trust is one of them. If a family should decide they do not want the younger generations to be be heavy in debt upon graduating from college, there are a couple of different options, according to the Wills, Trusts & Estates Prof Blog in "Funding Education? Consider A Trust Instead of a 529 Plan." A 529 plan is a great way for families to save for education. It allows for tax-free investments for educational expenses. However, the investment opportunities can be somewhat limited and people can only sign up for plans that are made available from state governments. People with more money would be better off using trusts for educational expenses. With trusts there are more investment options and if the money is not needed for educational expenses, then it can more easily be used for other things. An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and may include funding education for future generations. Reference: Wills, Trusts & Estates Prof Blog (Nov. 16, 2017) "Funding Education? Consider A Trust Instead of a 529 Plan."

What Happens to Endowment Funds If School Closes?

If a university closes its doors, there is a slight chance of getting endowment money back. Every year hundreds of schools close their doors permanently, but still have money in their endowment funds with some chance of recovery by donors, according to the Wills, Trusts & Estates Prof Blog in "Orphan Endowments of Dead Schools Bedevil U.S. States." The big problem with getting the funds returned? When a school closes, there are many people who would like to have the money that is leftover in the endowment funds. The descendants of wealthy donors would like to have the money, as would the bondholders and other creditors of the schools. The Attorney General of the state has to figure out who gets the money and state laws are not always clear on the subject. That creates big headaches for people over what are often relatively small sums. If you or an ancestor of yours has given money to a small school that has closed, you should know that you can try and get that money back but your chances of success is not good. Reference: Wills, Trusts & Estates Prof Blog (Nov. 17, 2017) "Orphan Endowments of Dead Schools Bedevil U.S. States."

You Really Do Need an Estate Plan!

Will from British Duke to Be Unsealed

The will of the Duke of Windsor will be opened for copyright determination. A court in the U.K. has ruled that the will of the Duke of Windsor, who passed away in 1972, will now be unsealed for for limited purposes, according to the Daily Mail in "Duke of Windsor's will to be unsealed at last… but only so The Crown's writers can get their facts straight." King Edward VIII of England abdicated his throne in 1936, so he could marry a divorced American woman Wallis Simpson. This changed his title from king to duke. The contents of his will were quickly sealed by the court and have never been made public, despite great public and historical interest in them. People are curious whether the will might shed any light on the man’s decision to abdicate. The writers of the Netflix show The Crown would like to use the duke's letters in their show. However, they first need to know who owns the copyrights to those letters, so they can get the necessary permissions to use them. It is not likely the will's other details will be made public. For a former king's will to be sealed, is probably a simple matter. For other people, it is much more difficult since wills are generally a matter of public knowledge. An estate planning attorney can advise you on creating an estate plan that meets your unique circumstances under the laws of your state of residence. Reference: Daily Mail (Nov. 15, 2017) "Duke of Windsor's will to be unsealed at last… but only so The Crown's writers can get their facts straight."

Perhaps One Person Should Head Wealth Planning Team

It might be best if one person coordinated the advisors working for a wealthy person. If you have considerable wealth, it might be a good idea to get a variety of opinions but it also might be a good idea to hire someone to help you manage it all, according to Forbes in "Estate Planning For the Ultra Wealthy - The Role of A Family Wealth Advisor." You have financial advisors. You have business consultants. You have accountants. You have estate planning attorneys. You have business attorneys. You have a lot more than that. It can be difficult to keep all of your advisors coordinated and all working toward the same goals. The advice you get from the different advisors can be contradictory. The idea of a wealth advisor is fairly simple. Estate planning attorneys who have the expertise to plan how wealth can be transferred down within families for generations can also act as wealth planners. They coordinate the activities of all of the other advisors and make sure the wealthy client's ultimate estate planning goals are always kept in mind. Estate planning attorneys can make sure that the other advisors are all working toward the one ultimate goal. Not everyone needs a wealth planner but an estate planning attorney can advise you on creating an estate plan that fits your unique circumstances. Reference: Forbes (Aug. 29, 2017) "Estate Planning For the Ultra Wealthy - The Role of A Family Wealth Advisor."

Estate Planning Mistakes Not Always Well Known

Common mistakes are often mentioned over and over again. There are common mistakes in estate planning that are not often mentioned, despite the fact they are made over and over again, according to the Ithaca Times in "Key estate planning mistakes to avoid," including: • Forgetting to update an estate plan when a spouse or child passes away. It might not be the best time for you to change your estate plan, especially given everything you are going through. Not doing so, can result in problems later. • Not reviewing and updating retirement plan and insurance policy beneficiaries for years. • Many people have the mistaken belief that if they have a will, then their estates will not go through probate. That is almost never the case. If your objective is for your estate not to go through probate, see an estate planning attorney to learn how to accomplish that. • People too often assume that once their children reach the age of 18, they will be able to responsibly handle any inherited assets. That may not be the case. You should plan for any minor children to have assistance with assets for longer than that. An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and helps you to avoid some of those mistakes as well. Reference: Ithaca Times (Nov. 8, 2017) "Key estate planning mistakes to avoid."

Widows Fight over Remains of WWII Veteran

Marriage, divorce and remarriage sparks debate on veteran’s burial site. A veteran of World War II recently passed away. Now two widows are fighting, according the Daily Mail in "Widows at war: British and American wives of war hero banker both want him buried in their own local cemetery - on opposite sides of the Atlantic - so they can visit his grave." The saga begins with Paul Lewis Morigi fighting for the U.S. during World War II. While in England, he met and fell in love with Olive Murphy. The two got married in 1944 and they divorced when Olive decided she did not want to move to America with him. She feared she would miss her family too much. Morigi went on to be a successful banker and a very wealthy man. He also got remarried to an American, Muriel Morigi. They were married for 40 years and had two children together. At the age of 92, Paul Lewis Morigi divorced Muriel and moved to England where he remarried Olive Murphy. For now at least, the dispute between the two women does not appear to be over Morigi's assets but over where Morigi should be buried. They both would like him buried close to them, so they can visit his grave easily. Of course, this could easily turn into a fight over his assets later. It might have been wise of Morigi to leave burial instructions. Reference: Daily Mail (Nov. 3, 2017) "Widows at war: British and American wives of war hero banker both want him buried in their own local cemetery - on opposite sides of the Atlantic - so they can visit his grave."

IRS Makes Annual Inflation Changes

New rates are important to estates, as well as for estate planning. The IRS has announced some important changes in tax adjustments and deduction limits based on inflation. They can make a difference for people planning their estates, according to the Wills, Trusts & Estates Prof Blog in "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan." Changes include: • Lifetime gift tax exemption increased to $5.6 million. • Annual gift tax limit increased to $15,000. • Annual gift tax limit to a foreign spouse increased to $152,000. • Estate tax exemption increased to $5.6 million. • Failure to file a return within 60 days of due date, to result in a penalty of $215 or 100% of amount due, whichever is lower. An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and takes the new IRS rates into consideration. Reference: Wills, Trusts & Estates Prof Blog (Nov. 8, 2017) "Estate Planning Inflation Adjustments for Tax Year 2018 & 2017-2018 Priority Guidance Plan

Estate Plan Can Include Consideration for Your Pets

More and more people are protecting pets in their estate plans, as well as their loved ones. There are some tips that should be considered, if you plan to protect your pets after you pass away, according to the Wall Street Journal in "Estate Plans Don't Have to Be Just For People." The tips include: • Think about who should be the caregiver for your pets and make sure your choice is willing to serve in that role. • Figure out how much money your pets might need to maintain their lifestyle and set aside that money for them. • Think about everything that needs to be done to properly care for your pets and make sure you have it all written down, so the caregiver will know what to do. • Be sure to visit an estate planning attorney so you can formalize your plans. The attorney will help you decide the best legal instrument to make sure your plans will be carried out. In addition, the attorney will draft those documents so a court will accept them as valid. Reference: Wall Street Journal (Nov. 5, 2017) "Estate Plans Don't Have to Be Just For People."

Don’t Leave Social Security Benefits on the Table

Social Security benefits are important to most retirees, so make sure you get the most out of it. Many people choose to figure out how to maximize their Social Security benefits for themselves. However, many do so to their own detriment, according to CNBC in "Bungling this retirement decision could cost you $300,000." It has been estimated that every year, Americans receive $10 billion less in Social Security benefits, than if they maximized their benefits. Some people leave as much as $300,000 in lifetime benefits on the table, without even knowing it. This is the result of people not choosing to retire at the right time and also not thinking about things like spousal benefits that might be a good option for them. It is not a good idea to make Social Security decisions on your own or to rely on government employees to tell you how to get your maximum benefit. You need to talk to experts when making these decisions. An elder law attorney can advise you on applying for your Social Security benefits and how to get all the benefits you have earned. Reference: CNBC (Nov. 14, 2017) "Bungling this retirement decision could cost you $300,000."