Hi I’m Aaron Miller attorney at law, and today we are going to talk The Team Approach to Estate Planning, Why it is important to involve all your Professional Advisors and Your Family in your estate plan.

When it comes to estate planning, a team approach ensures that you’re getting complete advice that encompasses the legal, financial, and health aspects your family will need as you transition from your working years into retirement.  Your team should consist of your elder law attorney, your tax advisor, insurance agent, banker, and financial advisor, as well as your family, and, if it applies, a qualified health care advisor. Here’s why.

Your elder law attorney is essential because they will make sure all of your legal documents are in order to protect you from having 3rd party interests control your assets and decisions.  Without the right legal documents and planning in place, you lose options and control over your affairs.

Your accountant can provide valuable information to your elder law attorney, such as when you purchased a piece of real estate and for what price, or how your business is structured. Aside from this, your accountant will need to know, particularly if you do any advanced estate planning or asset protection planning, the tax status of the trusts you’ve created and the tax consequences of the gifts that you’ve made.

Your banker, insurance agent and financial advisor can also provide important information to your elder law attorney, such as how your accounts are titled, cash values and beneficiaries of your life insurance policies, and values and beneficiaries of your retirement accounts and annuities. In addition, these professionals should be instrumental in making sure that your accounts are properly funded into your Revocable Living Trust and your beneficiary designations are updated to comply with the terms of your new or updated estate plan.

Involving your family in your estate plan from the beginning can promote harmony and avoid confusion and distrust later. If you keep everything a secret, then your estate plan will be more prone to challenges after you die since no one other than your attorney and professional advisors will understand your true intent. Also, involving your family in complex estate planning transactions from the beginning will give them peace of mind after you’re gone since they’ll already understand what was done and why. Your elder law attorney can assist you in creating an action plan that ensures all family members know their role and who becomes responsible for financial and health decisions.  This plan will eliminate confusion, bad decisions, and prevent discord.

Well those are the reasons why it is important to have a whole team in place for your family’s financial and legal affairs.  You can find more videos at aaronmillerlaw.com/resources/videos

This is Aaron Miller and thank you for watching.

Hi I’m Aaron Miller attorney at law, and today we are going to talk about the 5 most common Estate Planning Mistakes People Make

When it comes to basic estate planning, these are the most things I run into the most.  Let’s talk about what they are and how you can avoid them when making or updating your estate plan.

Mistake #1 – Failing to Make an Estate Plan

When it comes to basic estate planning, the easiest thing to do for people is to avoid it.  The typical reasons why range from fear of death, to a belief that it is too expensive, to complicated family situations. Needless to say without an estate plan, you’ll be leaving your loved ones in the dark, and they can end up spending a ton of money figuring out what to do for you if you become disabled and what to do for themselves after you die. Avoid this #1 mistake. Begin your planning early, while you still have your wits about you.

Mistake #2 – Forgetting About the Little Things

I find that many people overlook making a plan for their personal effects, including jewelry, art work, and collectibles. They simply assume that their family will be able to agree on how to divide it all up. But in my experience, these things are what people argue over the most. Recently I visited with a friend who was involved in an estate where two sisters fought for over a year on who was to receive the family picture albums left in their mom’s house. They ended up spending over $2,000 on attorney’s fees fighting over 2 photo albums that had a simple resolution, had they stopped to think about duplicating the originals. Don’t let this planning mistake happen to you and your loved ones. Ask what everyone wants and then make a simple but smart plan for your “stuff.”

Mistake #3 – Failing to Fund Your Revocable Living Trust

I see this mistake over and over again – people who don’t understand the importance of properly funding their living trust. If you’ve taken the time and invested good money on creating a solid foundational estate plan, then don’t stop there, or your assets will0still end up in a court-supervised guardianship if you become disabled, and they’ll still have to go through probate after you pass away. Instead, take the time to have your attorney assist you in the funding process of your trust and update the beneficiaries of your life insurance and retirement accounts. Otherwise, plan will only be worth the paper it’s written on.

Mistake #4 – Choosing the Wrong Fiduciaries

When it comes to basic estate planning, this is another common mistake I see over and over again – people who choose the wrong people or institutions to serve as their Personal Representatives, Successor Trustees, Power of Attorney Agents, and/or Health Care Agents. In fact, choosing the right fiduciaries for your estate plan is just as important as creating the plan in the first place, since your plan won’t work as you intended if your fiduciaries aren’t capable of doing the jobs you’ve given to them. Avoid this estate planning mistake by working with your estate planning attorney to choose the right people or institutions for the right jobs.

Mistake #5 – Making Your Estate Plan Too Complicated

When it comes to basic estate planning, some people go over the top and make their plan so complicated that it will take several lawyers, accountants and a judge, not to mention thousands of dollars, to unscramble the plan and make it work. An overly complex estate plan will not only frustrate your loved ones, but it will also tie the hands of your fiduciaries since they won’t be able to do their jobs without seeking expensive professional advice. Avoid this mistake by working with your estate planning attorney to create a practical and common sense estate plan that will work as you intended but without the need for advice from multiple attorneys and accountants.

Well those are the top 5 mistakes people make with their estate plan.  You can find more videos at aaronmillerlaw.com/resources/videos

This is Aaron Miller and thank you for watching.

For more videos check out http://aaronmillerlaw.com/resources/videos

For more videos check out http://aaronmillerlaw.com/resources/videos

• Asset Protection Planning – Reviewing your assets and determining which are exempt and nonexempt from creditors’ and nursing home claims in the event of an unexpected disability;

• Trust Planning- Using trust instruments beyond the basic will to ensure proper control of your assets;

• Business Succession Planning – Addressing what will happen to you and your closely-held business if you become disabled or die;

• Planning for Disabled or Problem Beneficiaries – Discussing all of the needs of your beneficiaries and then planning accordingly with certain trust documents that you will always control;

• Creating a Family or Charitable Legacy – Working to establish a wealth transfer/dynasty trust, one or more charitable trusts, and/or a private foundation.

Trust Planning and Asset Protection Planning:

Working with your elder law attorney, you need to establish your foundational estate plan which will allow you and your attorney to assess further, your needs for estate and/or asset protection planning. Why? Because as part of creating your base estate plan you’ll need to make a list of all of your assets and liabilities and then calculate your net worth. This, in turn, will reveal the estimated value of your estate and which of your assets are exempt or nonexempt from potential creditors’ or long-term care claims. From there, your elder law attorney can develop a plan to reduce or even eliminate the potential forced liquidation of your estate and by restructuring your assets, protect and preserve them for your spouse or heirs.

Business Succession Planning:

If you’re in a partnership or sole owner of a closely-held business, then having a strategy to exit your business in the event of your disability or death should be a crucial part of your estate planning. With your attorneys help you can create a plan to ensure what will happen to your interest in the business in the event of an unexpected disability or untimely death.

Planning for Disabled or Problem Beneficiaries:

With advanced planning, your attorney can assess the needs of all of your beneficiaries. If a beneficiary is disabled and receiving government benefits, then the beneficiary won’t be able to receive a direct distribution and will require a Special Needs Trust be prepared. Should there be a beneficiary who is bad with managing money or is in a shaky marriage, it may require that a lifetime irrevocable trust be created for this beneficiary instead of receiving their inheritance as an outright distribution.

Creating a Family or Charitable Legacy:

Finally, creating your foundational estate plan will ensure an ongoing legacy for your family through the use of generation skipping planning or lifetime trusts that preserve the stretch out of required minimum distributions from retirement assets, and/or a charitable legacy through the use of one or more charitable trusts or a private foundation.

There are other reasons you should consider advanced estate planning over that of just creating a simple will, but these reasons I’ve listed above are what I’ve found that clients have the most concerns about.

If you have other questions or would like to discuss the benefits of protecting and preserving your family nest egg, please call 214-292-4225 for a COMPLIMENTARY CONSULTATION.

One of the areas of estate planning I focus on is helping young families cover the basics when it comes to protecting their children and themselves in the event of an untimely death or disability.  All too often, I hear families who feel the only legal document they need is a simple will.  It would be nice if one document could solve all of our legal obligations, but in truth, it can be more complex and require other planning beyond just a will if we really want our wishes honored when we pass.

When I meet with a family for the first time, I try to relieve their fears and concerns that the process of estate planning is so final.  I know that families will transition through a lot of changes over the course of their children growing up, and so I make sure the estate plan is just as flexible.  There are several issues that must be addressed when developing a plan that covers all the unexpected happenings parents can face from birth until their children reach adult age.  I’ve identified some immediate concerns that should be a priority to any family with minor children.

What financial planning has been created  in the event either parent should pass  before the children reach adulthood?

If, God forbid, both parents were killed before the kids were grown, who will be in charge of the estate to make sure the kids are cared for?

Who is responsible for raising the children until 18?

Financial Planning for an Unexpected Death

Being a single parent is tough, and it’s even harder if you have no money for emergencies and expenses that go with raising a child, whether it’s 3 years, 5 years, or 15 years.  The reality is that the best and most affordable solution lies in  life insurance.  No matter how good your group benefits are, I always recommend that both spouses consider investing in additional insurance.  The purpose is not to make anyone rich,  but a proper amount of life insurance ensures that the loss of income that would have been there, is now replaced so that the family doesn’t have to change their lifestyle.  Healthy, young parents can get a lot of life insurance for less than $50 a month, which will provide “peace of mind” that no other financial product can guarantee.  One word of caution for parents with minor children, never name minor children as contingent beneficiaries of the policies.  The reason is simple, minors can’t receive or control assets.  For this reason, I suggest creation of a Will with trust provisions which names the estate in care of the trust as the contingent beneficiary. Or a Living Trust can be created that names an alternate trustee that can be designated as the contingent beneficiary, who will be there to act on behalf of the kids.

Management of the Estate Assets

If both parents should simultaneously pass before their children are grown, someone must be appointed to handle all the financial affairs of the estate until the children are entitled to receive their inheritance.  For this reason I strongly promote the use of a Living Trust because of the protections it provides to the beneficiaries of the estate along with guidelines it offers for the person managing the finances.  Most families will undoubtedly think it’s best to choose a relative to act in this capacity.  At first, it would only make sense to have a family member handle these duties, but certain questions must be asked before appointing anyone that will have to deal with large sums of money.

How will they manage the funds?

What experience do they have with making these types of decisions?

Do they understand their fiduciary responsibilities?

A lot can change over the course of a few years especially in the financial markets, so I suggest that my clients map out a strategy that entails a combination of conservative and semi conservative approaches to seeking a decent rate of return while keeping risk to a minimum.  They might also have their financial adviser involved in helping their trustee make decisions for the management of the funds.

Guardianship Choices

Who will raise your child as close to your values had you been there?  The truth is that NO ONE can truly fill your role, but you still never want to leave this decision to the State of Texas. You need to decide who will watch over and guide your children if you are not there to do it.  Without a doubt, this is one of the most difficult decisions parents have to make, but one that should be dealt with as early as possible – ideally before you bring your child comes home from the hospital.  I don’t have a crystal ball, if I did, it would make my job a lot easier, but planning for this contingency means that who ever is appointed will have to make a lot of the decisions on the child’s upbringing, values, religion, schooling, etc.  Not a small task, but one that must be dealt with by those you feel will make the best  surrogate parent if you couldn’t be there.

Estate planning is not just about dying, there are a lot of aspects people just don’t think about, but no matter what happens, by using the services of a competent estate planning attorney you prevent the courts and the State from becoming partners with your family.

If you have questions about this, or about elder care planning for your loved ones, please visit my website: www.aaronmillerlaw.com or contact me, Aaron Miller, directly at 214-292-4225.  My office is located at 101 E. Park Blvd., #600, Plano TX .   Remember -

“Your Life, Is Our Life’s Work”

1. Loss of capacity. What if you become incompetent and unable to manage your own affairs? Without a plan the courts will select the person to manage your affairs. With a plan, you pick that person (through a power of attorney).

2. Minor children. Who will raise your children if you die? Without a plan, a court will make that decision. With a plan, you are able to nominate the guardian of your choice.

3. Dying without a will. Who will inherit your assets? Without a plan, your assets pass to your heirs according to your state’s laws of intestacy (dying without a will). Your family members (and perhaps not the ones you would choose) will receive your assets without benefit of your direction or of trust protection. With a plan, you decide who gets your assets, and when and how they receive them.

4. Blended families. What if your family is the result of multiple marriages? Without a plan, children from different marriages may not be treated as you would wish. With a plan, you determine what goes to your current spouse and to the children from a prior marriage or marriages.

5. Children with special needs. Without a plan, a child with special needs risks being disqualified from receiving Medicaid or SSI benefits, and may have to use his or her inheritance to pay for care. With a plan, you can set up a Supplemental Needs Trust that will allow the child to remain eligible for government benefits while using the trust assets to pay for non-covered expenses.

6. Keeping assets in the family. Would you prefer that your assets stay in your own family? Without a plan, your child’s spouse may wind up with your money if your child passes away prematurely. If your child divorces his or her current spouse, half of your assets could go to the spouse. With a plan, you can set up a trust that ensures that your assets will stay in your family and, for example, pass to your grandchildren.

7. Financial security. Will your spouse and children be able to survive financially? Without a plan and the income replacement provided by life insurance, your family may be unable to maintain its current living standard. With a plan, life insurance can mean that your family will enjoy financial security.

8. Retirement accounts. Do you have an IRA or similar retirement account? Without a plan, your designated beneficiary for the retirement account funds may not reflect your current wishes and may result in burdensome tax consequences for your heirs (although the rules regarding the designation of a beneficiary have been eased considerably). With a plan, you can choose the optimal beneficiary.

9. Business ownership. Do you own a business? Without a plan, you don’t name a successor, thus risking that your family could lose control of the business. With a plan, you choose who will own and control the business after you are gone.

10. Probate. Without a plan, your estate may be subject to probate.

Those are just some of the reasons why Estate Planning is for everyone — please don’t assume that estate planning doesn’t apply to you.

1. No age group is exempt from facing the risk of needing long term care. Waiting until you are 65 or older to think about long term care issues can be too late. As you age, the probability you will need care, either at home or in an nursing facility, increases.

2. Planning ahead provides peace of mind. It helps reduce fear and worry. It provides you with the security of knowing that your plans have been made and your wishes will more likely be followed.

3. Proactive planning means more choices and options are available to you. The options and choices available to you tend to decrease with age and increased health risks. Planning early allows you time to research options and gather information about potential choices before making decisions.

4. Planning early allows you time to determine, clarify and prioritize your goals. The decisions you make about how to finance long term care should help you achieve your overall financial goals. Planning allows you to identify and share your financial goals with others and to seek their input, if you so choose.

5. Planning early can help reduce the potential for misunderstandings and conflict between family members. It allows you to discuss your plans with your spouse, your children, and others. It also allows you to discuss the potential role these people may have in your care and any limitations they may have.

6. Making plans early will reduce the emotional burden for those close to you. By making plans while you are mentally competent, you will be able to choose your own direction rather than forcing someone to else make hard choices for you that you might not have wanted.

7. It is easier to make plans when you are physically and mentally fit. As time passes, your health may deteriorate making it more difficult or even impossible for you to select your options.

8. Planning early will allow you to seek advice from professionals working on your behalf, such as your financial planner, your elder care attorney, your insurance agent, and your care coordinator. They can provide information to help you maximize your options.

9. Planning early may allow you to purchase long term care insurance before your health deteriorates making you ineligible. Waiting to purchase long term care insurance usually increases the premiums and also increases your chances of becoming uninsurable.

10. Planning early will help you protect your own financial security and that of your loved ones. Why put your financial security at risk due to long term care costs? It is impossible to predict when any one individual might experience the need for long term care.

Protecting against changes in health and independence during your lifetime is an essential part of estate planning and risk protection. Don’t jeopardize your independence and your family’s legacy by waiting until you can no longer make decisions.

“Old times never come back and I suppose it’s just as well. What comes back is a new morning every day in the year, and that’s better.”
- George Edward Woodberry

Hello,

Did you go somewhere fun for spring break?  We just got back from Colorado where we’ve had a blast!  No skiing but we did get to see some snow a couple of days before the “warm” weather came.  The kids had a blast watching a play, visiting the Molly Brown house, ice skating, and jumping around the rocks at Red Rocks Auditorium just outside of Denver.  It was nice having some time off, but now it is time to get back to work!

This week, I’d like to talk about some changes to banking regulations.  A couple weeks ago, a new law went into effect.  “The Card ACT” brought some new credit card rules in play, and I wanted to give you a “heads up” about the changes which affect YOU.

Read on!

Aaron Miller’s
“Straight Talk” Personal Strategy
How To Use New Credit Card Laws To Your Advantage

You may not have heard, but a new credit card law (“The Card ACT”) went into effect recently. The provisions of this new law that will impact most of us are the ones around interest rates, over-limit fees, payment allocation, and monthly statements. Now, if you don’t use credit cards in your family life, this doesn’t apply to you…but most people do, and you should know about what’s now being done by credit card companies in response to this new law.

So, here is a quick summary of what you should know so that you can take full advantage of these pro-consumer changes:

Interest Rates
The new rules will make it harder for credit card companies to raise a customer’s rates across the board. Under the so-called “universal default practice”, a consumer who was late on a payment for one credit card might have seen the interest rate rise on that card and another, unrelated credit card.

But now… interest rate hikes are going away during the first year an account is open and on existing balances. However, banks and card companies will still be able to raise interest rates in *some* cases, such as when you are more than 60 days late paying your bill or an introductory rate expires after six months.

Another important exception: Issuers can raise your rate before the first 12 months is up if your rate is “variable” and tied to an index–and that index rises. These indices are at historic lows, but when rates begin to rise (to keep inflation at bay), so will payments.

Over-Limit Fees Rising
Another major change involves the fee charged when a consumer charges more than his or her credit limit. Until now, many card companies have allowed consumers to continue charging beyond set limits–tacking on sometimes hefty over-the-limit fees in the process. Cardholders will now have to “opt-in” for over-the-limit spending.

How Payments Are Applied To Balances
With the new rules, card issuers have to apply payments to the part of a bill with the higher interest rate. For example, if an account has a $5,000 balance with a regular rate of 15 percent, and a $5,000 balance at a promotional rate of 5 percent, the monthly payment must be applied first to the balance with the 15 percent rate. This is good news for the consumer.

Monthly Statements
Credit card statements will have to show how long it will take to pay off a credit card if only minimum payments are made. The statements will also have to show how a consumer may pay off the entire bill in 36 months if payments are increased.

Lastly, you should be aware that, because of these new rules, credit card issuers will be forced to find other sources of revenue. Already, we’re seeing card companies take an “airlines” approach–identifying ticky-tack fees which can be justified as a “normal” course of business. Rewards transactions & international charging are two very-common places which card issuers are already applying fees. So watch your statements carefully.

Wishing you all the best!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!

“The past does not define you, the present does.”

- Jillian Michaels

Hello,

As we work with families, we spend a good amount of time sorting through beneficiary decisions and attitudes about life, money and the values which parents seek to pass on.

But one of the more difficult tasks for me is when I meet with a family who doesn’t have the confidence they wish they would have about how their children would handle finances, down the line.

At the point of making these decisions, we can put into place a whole range of mechanisms which will ensure that financial assets are properly distributed, when the time does come.

But wouldn’t it be great if our children had the experience and self-control to handle money, starting at an early age?

That’s why I’ve put together some pointers for you (10 of them) which will help your family raise children who “get it” when it comes to money. This is a great article to forward along to your friends and family, I think–it’s an issue which too often goes neglected within families.

And, of course, I’d love your thoughts (as usual!)…

Aaron Miller’s

“Straight Talk” Personal Strategy

Teach Your Children Well About Money

As Americans try to spend less and go on a budget this provides an opportunity to teach the next generation financial principles they may never have seen in the prosperous years they have been alive. Here are ten principles for teaching children about money:

1. Talk about money . Every time money is involved, parents have a chance to teach their children the values and analysis behind their actions. Money should never be the primarily topic of discussion, but it is one of the most important topics through which we communicate our wisdom and values to our children. Every purchase, investment, or donation can be a time to teach your children something about your values.

2. Talk openly about money. Parent makes a mistake when they keep information from their children. The only way children learn what is a good deal and what is too expensive is by the experience of what their family earns and what items cost. Hiding this information robs children of the financial education they need.

3. Talk factually about money. Many parents have strong emotions about money based on their childhood experiences. These emotions are always transmitted to children. Instead of helping children, they can cripple children from growing to make sound financial decisions.

4. Require chores; pay for optional work. Everyone in the family has to help complete the work that needs to be done. If you want to pay your children, only pay them for optional work they can choose to do or not to do.

5. Provide children an allowance they can make real choices with. Talk about money is important, but children need real-world lab experience to understand the consequences of their decisions. Consider giving them an allowance large enough so that they can purchase some of their own needs. Then continue to give them honest advice, and help them ask the right questions to make wise decisions based on their values.

6. Help children prioritize purchases. Ask them if this purchase is better than other purchases they are considering making.

7. Help children comparison shop. Help them consider issues such as cost, quality, and convenience.

8. Require children to wait before making large purchases . Adults should wait at least a month whenever they are making a large purchase. Children shouldn’t be expected to wait that long. Here is a good rule of thumb: Children should be required to wait as many days as they are old in years before being allowed to make a large purchase (over a week’s allowance). There is always tomorrow and over half the time they won’t remember what attracted them to it in the first place. Developing this habit will help make them resistant to impulse buying.

9. Don’t use money as a punishment. Your priority should be helping to give your values to your children, not buy their outward behavior.

10. Don’t loan your children money! If their desired purchase is something they should be saving for, let them save for it. If you want to buy it for them for the value of the experience, buy it for them. The principles are “If they want it, they have to save for it. If you want them to have it, you will buy it for them.” Loaning your children money for items they want teaches them they aren’t responsible and they don’t have to prioritize.

Some may disagree with all of these admonitions–I don’t intend to become a “parenting guru” in my spare time–but I do hope that, at minimum, this will help you be thinking about how your wishes get passed down.

Wishing you all the best!

Aaron Miller

Miller Law Firm, PLLC
Your Life Is Our Life’s Work!
101 E. Park Blvd., Suite 600
Plano, Texas 75074
Connect via: Facebook Twitter LinkedIn

PS–If you are receiving this and are NOT a subscriber to our weekly “Straight Talk” Personal Strategy Email series, click here to sign up.

To ensure we don’t make the folks at the IRS ornery, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have received this message in error, please advise the sender immediately by reply e-mail and delete this message. PHEW!