By now most people, when planning for their “Golden Years”, know that they need to consider the possibility that they may need long-term care at some point in time, and that long-term care insurance is a logical option for this purpose. What most people don’t know is that if you are self-employed or own your own business the cost of your insurance premiums could be tax deductible.

A recent article in Forbes reveals that “self-employed folks with business income that passes through onto their personal returns… can deduct 100% of the premiums paid for themselves (and spouse) as a business expense, just like health insurance. These folks are still subject to the age-related premium limits, but that doesn’t necessarily limit [their] deduction.”

This could be a HUGE incentive for self-employed business owners who tend to lag behind their traditionally-employed counterparts in saving for future retirement expenses. It’s not that business owners are less concerned about their futures than their peers, but that as entrepreneurs struggle to get their small business off the ground in the early years they are more likely to put any extra income back into their business, rather than investing it for retirement. This tax-deduction for long-term care insurance can be just what entrepreneurs need to put them back on equal footing.

In today’s economy traditional employees and entrepreneurs alike need all the help they can get saving for the future and protecting the assets they have. To find out more about this, or other strategies to prepare yourself and your family for what we hope will be a long and prosperous retirement, please contact our office.

The answer to the title question is that just about every family can benefit from a trust. The rich and famous tend to utilize trusts because of the privacy they provide, the long-term asset protection, the tax benefits, and their flexibility; but each and every family, regardless of fame or income, can reap the exact same benefits making a trust a part of their estate plan.

According to this article on the CNN Money website, you can benefit from a trust “if you have a net worth of at least $100,000 and meet one of the following conditions…

* “A sizable amount of your assets is in real estate, a business or an art collection;

* You want to leave your estate to your heirs in a way that is not directly and immediately payable to them upon your death. For example, you may want to stipulate that they receive their inheritance in three parts, or upon certain conditions being met, such as graduating from college;

* You want to support your surviving spouse, but also want to ensure that the principal or remainder of your estate goes to your chosen heirs (e.g., your children from a first marriage) after your spouse dies;

* You and your spouse want to maximize your estate-tax exemptions;

* You have a disabled relative whom you would like to provide for without disqualifying him or her from Medicaid or other government assistance.”

The article goes on to explain that depending on your assets, your family, and your goals you may have a number of different trust options to choose from. The article gives very helpful explanation of the various types of trusts you may have available to you, and will give an idea of just how powerful and flexible a trust can be.

What the article doesn’t mention is that some of these trusts can be used in conjunction with each other, to provide layers of protection and control of your assets. The world of trusts is complex, but full of potential. Please contact our office (or your own local estate planner) to learn more about trusts, and determine how a trust might be good for your family.

Nursing homes during the holiday season tend to see a little more activity than they do during the rest of the year, whether because of families coming to visit loved ones, or local groups or individuals bringing holiday cheer to residents who may not have family living nearby. Taking time to visit with nursing home residents during this time of year can be an immensely rewarding experience for all involved, especially if new or infrequent visitors keep a few simple rules of etiquette in mind:

1. Call the nursing home staff ahead of time to schedule your visit. This not only ensures that you won’t be interrupting any previously scheduled mealtimes or activities, it also gives the residents something to look forward to (and prepare for, if necessary.)

2. Be aware of what to expect. Some will have physical disabilities such as trouble with their hearing, eyesight, or ability to move freely. Some residents may have Alzheimer’s or dementia and may have trouble remembering people or conversations. If you aren’t sure how to respond in certain situations you can ask a member of the nursing staff for advice.

3. Knock before you enter a room. The residents’ rooms are their homes and should be treated as their personal and private space. It is polite to ask permission before entering a room or before handling personal objects on display, but residents will likely welcome queries or questions about photos or personal objects, and this is an excellent way to get a conversation started.

4. Be a good listener. Elderly residents have a lot of history and experience to share, and providing a friendly and attentive ear will be gratifying not only to your elderly friend or relative, but will likely be a fascinating experience for you as well.

5. Be aware of your host’s energy level. Nursing home residents can often tire quickly and 20-30 minutes may be a tiring visit for them. (On the other hand, if you and your host are in the middle of a conversation or game there is no need to rush through to stick to an arbitrary schedule.)

6. Bring photos, cards, or board games with you. Conversation will not always flow easily and freely, and having a back-up plan such as a deck of cards can dispel awkward silences. You may also consider offering to write or read letters for residents who may have trouble with these activities.

7. Don’t promise to visit again unless you truly intend to follow through and can even put it on your calendar right then and there. Nursing home residents may not get many visitors, breaking an appointment can be a heavy disappointment for your friend or relative.

The public has been curious about the estate of Steve Jobs ever since he passed away in early October, but with his assets wisely protected with a trust, his family’s privacy regarding the distribution of inheritance has remained intact. (Privacy is only one of the many benefits of using a trust as part of your estate plan.) However, what is not a secret is that Mr. Jobs’ significant investments in both Disney and Apple stock will pose some interesting questions for his advisors and heirs. Whatever the family chooses to do, it’s clear that estate tax and capital gains tax laws will have to be taken into consideration.

This article in Investment News discusses what Jobs’ trustees or heirs might choose to do with his valuable investments. According to the article Jobs had billions of dollars invested in Apple and Disney stock. Now, “under the U.S. Tax Code, his heirs may sell shares of Apple and Disney, and avoid $867 million in capital gains taxes. If Apple’s late co-founder left his estate to his wife, Laurene Powell Jobs, the family won’t be liable for the 35% estate tax until she dies or gives money to others, according to estate planners.”

An executor or trustee has a responsibility not only to follow the wishes of the grantor of the trust, but also to look out for the best interests of the beneficiaries; which in this case may include selling or diversifying investments Jobs had chosen to hold onto for sentimental reasons.

Additionally, any executor or trustee will have tax laws to consider–not only the laws in place right now, but any changes to the estate or capital gains tax laws being considered by Congress for 2013. “The capital gains tax is set to rise to 20% in 2013, from 15%, and high-income Americans also will be subject to a 3.8% levy on unearned gains.” This means that advisors and heirs won’t want to wait too long before making any decisions.

The estate of Steve Jobs may be larger than most, but the same issues and questions will face the executors, trustees, and heirs of estates of all sizes. Whether you are a grantor, executor, heir or trustee, our office can help you through any questions or concerns you may be facing. Don’t be afraid to contact us.

Most parents (even parents of adult children) want to provide for their children—but not necessarily right away, and maybe not all at once. According to a recent article in Barron’s, “A growing number of parents are shunning the time-honored practice of handing big inheritances to their children when they turn 21. Instead, they’re waiting until the kiddies are in their 30s and 40s.”

The reason for this is that more and more parents are coming to realize that there is a learning curve associated with handling large sums of money, and dropping a large inheritance in your child’s lap may be giving he or she more than they can reasonably handle all at once, essentially setting your child up for failure. “Premature distributions to heirs can have the same effect as the jackpot has on lottery winners… The money becomes a burden, and your child may not fully develop into the adult you hope to raise.”

Luckily, if you don’t want to bequeath a fortune to your children all at once, you have a number of options for ensuring your children are provided for and eventually receive the inheritance you intend for them. As mentioned in the Barron’s article, some of the most popular strategies include passing an inheritance through either a revocable or an irrevocable trust. A trust allows a parent to transfer assets to their children while still retaining control of when and how the assets will be distributed. Of these two options, a revocable trust can provide more flexibility, while an irrevocable trust can provide more asset protection, although both kinds of trusts provide a measure of each. You will want to discuss with your estate planning attorney which option will work best for your family.

With either trust option parents can choose to simply keep the inheritance in trust until the child reaches a certain age, or distribute funds slowly over the course of time, to better acquaint the recipient with the responsibilities of wealth. However you choose to structure your estate plan, our firm can help you accomplish your goals for yourself and for your children.

Salon.com recently published a touching and illuminating article about Baby Boomers and their aging parents—about the transition from being the cared for child to the caregiving adult, and how Boomers are dealing with this new development. This is not the first article to be written on the subject, but this one is unique because it is written by one of the parents.

Author Lillian Rubin writes that she can see the growing worry in the eyes of her 63 year old daughter, “who wants me — her 87-year-old mother — to be in touch when I leave town, even if only for a few days or a week, who calls when she’s traveling though she never did before, whose anxiety announces itself over the phone lines when we haven’t talked for a while: ‘Are you OK?’ I tell her I’m fine, ask her to stop worrying. ‘It’s my turn to worry,’ she replies.”

Even when their parents still have the ability to care for themselves, Boomers can’t help but worry about what might be coming down the road, and when the shoe might drop. This worry can have the effect of putting adult children on edge, and making their parents feel smothered. Rubin writes movingly—and fairly—about the struggle on both sides of the divide. “Parents commonly resist their children’s attempts to intervene, but they are often in denial about the depth of their decline and can’t or won’t see what’s plain to others: They need help. If children back off from the conflict, their parents can fall through the cracks. If they don’t, parents are often resentful and difficult.”

Rubin admits that she has no easy answers, that every family will need to search for their own solution, but our firm knows that finding a solution is easier if you don’t have to do it alone. Having a solid estate plan is not going to solve all the problems between parents and their children, but having a good Advance Healthcare Directive and Financial Power of Attorney can certainly make both parent and child feel a little more secure. Furthermore, opening the lines of discussion for these two documents can clear the way for other important discussions down the road.

The holiday season is upon us, and as others rush about the malls and the internet looking for gifts, we can recommend a unique, useful and memorable gift that will be perfect for any loved one: An Estate Plan!

Before you roll your eyes at the idea, consider this: An estate plan is something every person needs, whether it’s your single younger nephew, your older sister with her two young children, or your retired, aging parents. Furthermore, although everyone needs an estate plan, many people (wrongly) consider it a luxury, and put off creating one—often until it’s too late.

You may be thinking, No, an estate plan is too personal (too expensive, too morbid) to give as a gift. But we can safely say that not one of these excuses is true. If you feel an estate plan is too personal a gift, we recommend giving a gift certificate good for the cost of a basic plan, which the recipient can then design and add to according to his or her needs. If you feel an entire estate plan is too expensive a gift, you may want to consider paying for a portion of the plan, or for the first consultation with an attorney, just to get your loved one started. And if it’s morbidity that you’re worried about, perhaps giving a “Loving Family Legacy Plan” sounds more appealing.

This year, don’t give a gift that will impress for a moment but be forgotten within a week; instead, give the gift that will protect your loved one—and their loved ones!—and will last for years to come. Give the gift of an estate plan.

In this day and age many families are spread across the country, with these winter holidays being their only chance to see each other during the year. This means that many adults are planning a trip this holiday season to visit aging parents they haven’t seen in months—or possibly haven’t seen in over a year! But what many people don’t anticipate is how much can change over a year, or even during a few short months. It is not unusual for adult children to find that their aging parents are not doing as well as they thought.

If a visit to your aging parents this holiday season brings up worries or concerns for you, or if you aren’t sure what to do or where to start, we have a few tips and suggestions that might help. Of course, every family will be different, but these suggestions can get you started down the road to ensuring your parents have the help and care they need.

1. First and foremost, talk to your parents.—some elderly people may be in denial about how much they need help, but many recognize when they begin losing the ability to care for themselves, and appreciate the opportunity to express their concerns and look for assistance.

2. Talk to your siblings—if you’ve noticed mom or dad aren’t doing so well, your siblings have probably noticed something too. Talking about the situation together may help you get a clearer picture of exactly what’s needed, and you may be able to plan the next steps together.

3. A recent article on the New York Times New Old Age Blog recommends contacting a geriatric care manager—this is someone who can work with you and your siblings together, someone “who can assess the situation, come up with a plan and supervise its execution.”

4. As also mentioned on the New Old Age Blog, sometimes the best thing to do is not to come in during the holidays and make snap decisions or sweeping changes, sometimes the best thing you can do is to make small, slow changes. The article points out that “engaging a bill-paying service or a chore service, a transportation program, a few hours a week of a home helper to handle laundry and shopping” can often make a huge difference.

5. Ask your parents if they have some kind of estate plan, or at the very least encourage them to have an advance healthcare directive or living will. If they do not have any kind of powers of attorney, try to help them find an estate planner or elder attorney they can trust and feel comfortable with, who can ensure they have the legal protections they need.

Much is made every November and December about spending time in the warm presence of your family, appreciating and caring for each other. If you belong to a close family we have plenty of posts on our blog about how you can protect and care for your family with an estate plan. But the sad truth is that not all families are happy, and estate planners learn that not everybody wants their parents or siblings (or even, on rare occasions, their children) to benefit from their wealth upon their death.

It’s not as unusual as you may think for someone to ask “How do I make sure my money won’t go to my family when I die?” The answer to this question is actually very easy—if you’ve had the foresight to create some kind of estate plan, that is. Without any kind of estate planning (a will or a trust, for example) the law automatically distributes your estate to your closest living relatives upon your death. But the simple act of creating a will or a trust can prevent this automatic distribution from happening.

A will or a trust can be as basic or as complex as you choose. Simply naming the people or organizations of your choice as your heirs is often enough to ensure that your wishes are followed, but if you are worried about relatives who may contest your wishes you may want to ask your attorney about stronger measures, such as including a disinheritance clause or a no-contest clause in your will or trust. This can be as simple as including a single sentence stating “I have specifically chosen not to provide for my brother John.”

We understand that not all families are the same, and not all people will want their wealth distributed in the usual manner. If you have a unique family situation, or unusual circumstances or requests, please don’t hesitate to contact our office. We can help.

As the cost of a college education skyrockets, and the unemployment rate for new college graduates holds steady at a depressing 17 percent, more and more grandparents are feeling the pressure to help their college age grandchildren pay for college expenses, or help with student loans after graduation.

While college students (and their families) could certainly use the help, is lending financial assistance a good idea for grandparents? This article in the Wall Street Journal says maybe not. “Some grandparents are making financial mistakes that could put their own financial future in jeopardy. Promising too much to grandchildren, not saving enough for their own possible health-care needs and paying off their grandchildren’s loans are some of the mistakes well-meaning grandparents are making”

For grandparents who would like to lend a helping hand to their children and grandchildren, but are worried about neglecting their own financial futures, our office would like to suggest that there are a number of ways to help without shortchanging yourself. The WSJ article suggests that grandparents can “give support in other ways such as volunteering with their grandchild or encouraging them to pursue an education.”

Another option is to spend your money wisely during your lifetime and make arrangements with your estate planner to leave the remainder of your fortune where it will do the most good after your death. If your grandchildren are still young you may want to have their inheritance used to fund an education trust, or specify that it is to be used to pay off any existing student loans. If you have older grandchildren you can provide invaluable financial assistance by specifying that an inheritance should be used to pay for their children’s college education, giving them some breathing room during those lean financial years.

However you choose to be of assistance to your children, grandchildren, or even your great-grandchildren, our office can help you accomplish your goals. Call us today.