Most people are familiar with joint versus individual ownership of property, but did you know that there’s a third way to own property? It’s through contract rights, and this type of ownership can have a large impact on your estate plan. In general, property in which someone holds contract rights is not subject to probate. Examples of this type of property include payable on death accounts, life insurance policies, retirement accounts, and revocable living trusts. Payable on death accounts … [Read more...] about How Do Contract Rights Fit Into Your Estate Plan?
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The Importance of Advanced Health Care Directives
Many people wonder if they should include instructions in their Will to let loved ones know what kind of medical care they’d like if they’re in the final stages of a terminal illness. But your Will is not the place for this type of information. In fact, in many cases, your family doesn’t even find your Will until sometime after your death. What’s more, your Will, by definition, does not take effect until you die – so it’s powerless to make sure that your health care wishes are … [Read more...] about The Importance of Advanced Health Care Directives
Is a Life Insurance Policy Considered Part of My Estate?
With so much buzz about the estate tax returning in 2011, many people are taking a closer look at just what constitutes the value of their estate. Some items are obvious – your home for example, your cars and your personal belongings, but what about life insurance? Is that considered part of your estate as well? The answer is yes and no. If the life insurance policy is “owned” by you, then yes, the proceeds of the policy will be included in calculating the value of your estate. If … [Read more...] about Is a Life Insurance Policy Considered Part of My Estate?
What Happens to Assets Not Included in a Trust?
A trust is a legal entity that survives the person who created it. The basic purpose of creating a trust is to ensure easy distribution of assets to the beneficiaries without going through the often lengthy procedure known as probate. The assets covered or transferred in the name of a trust are easily passed on to the named beneficiaries after the death of the trust maker, but what about assets not held within the trust? How are those handled? The simple answer is any assets not held … [Read more...] about What Happens to Assets Not Included in a Trust?
Can I Object to Conservatorship?
If family members feel that you are no longer able to care for yourself, they may petition the court to appoint a guardian – typically called a conservator – to look out for your best interests. If the court grants this petition, the conservator would then be responsible for making personal and financial decisions on your behalf. You can however, object to the appointment and there are some rights you retain even after a conservator has been appointed: being present during the hearing if … [Read more...] about Can I Object to Conservatorship?
Who Should Know About Your Estate Plan?
After you have prepared an estate plan, the next question is who should you share it with? Do you tell your family about your plan or do you keep this knowledge secret between you and your Estate Planning attorney? The answer to these questions may not be so simple. Let’s look at your choices: You do not tell your family about the estate plan. Your decision to keep the plan undisclosed may be based on your intent to keep your true net worth a secret from your family, and this is not … [Read more...] about Who Should Know About Your Estate Plan?
Estate Planning Basics: Calculating Your Net Worth
When planning your estate, you want to be sure that you give your attorney your complete financial picture. One way to do this is to calculate your net worth. Doing this on an annual basis will also give you an idea of the financial progress you have made over the year. All that’s needed to do this is information on the assets you own and the liabilities you owe. Step I: List all your assets Start with your big assets, such as your home, your cars, boats, rental properties and raw land. … [Read more...] about Estate Planning Basics: Calculating Your Net Worth
Common Estate Planning Mistakes
Estate planning might not sound like the most exciting way to spend your time, but it is definitely one of the most beneficial. Planning your estate ensures that your assets are distributed correctly after you’re gone. Without the explicit instructions a plan would contain, a state-appointed representative will be given the responsibility of distributing your assets as they deem fit. But before you begin trying to plan your own estate, there are some things you should know. One of the most … [Read more...] about Common Estate Planning Mistakes
What is a 403(b)?
A 403(b) plan is an employer-sponsored retirement savings account that’s for employees of public schools, 501(c)(3) charities, and other tax-exempt organizations. It’s very similar to a 401(k), which is the better-known type of retirement account available to employees of for-profit companies. Sometimes 403(b) plans are called tax sheltered annuities (TSA’s) or tax deferred annuities (TDA’s). As an employee, a 403(b) plan offers you several advantages for saving for retirement. When you … [Read more...] about What is a 403(b)?
A Different Kind of Retirement Planning
Chances are you’ve spent a lot of your working life dreaming about retirement. You’ve been diligent in putting a financial plan in place so that you’d be able to retire in comfort. But, have you thought about what your day-to-day life will look like once you retire? Retirement is a huge lifestyle change – your time is suddenly your own, instead of being dictated by the demands of your career. As much as you’ve been looking forward to it, the sudden end to your old routine can be really … [Read more...] about A Different Kind of Retirement Planning
