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SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Over the 22 years of practicing law I have met with many people and have reviewed their financial affairs. Although I am not a financial advisor and I do not sell insurance, I believe insurance and financial planning play an important role in protecting you and your family.

There are many types of insurance and I do not have enough time to provide a comprehensive overview of the ins and outs of insurance, but let me talk briefly about several types of insurance in estate planning.

I see life insurance in just about every estate I work with. Life insurance has many applications including funeral planning, or debt planning for paying off a mortgage or car loan.  Life insurance can also provide liquid funds for the surviving family.

Long term care insurance is another insurance product I frequently address in estate planning.  I highly recommend everyone consider how they anticipate paying for long term care costs.  Long term care insurance is one option.  Whether you will be cared for at home, in an assisted living or in a nursing home, planning for how the care will be paid for is important.    Long term care insurance can go a long way in preserving your estate.

Liability insurance is another insurance product I regularly recommend to my clients.  Many people tell me they want to protect themselves from law suits.  However it really is not appropriate for most people to do sophisticated asset protection planning with vehicles such as “off shore trusts”.  If this is a concern for you, then a meeting with your insurance agent would be beneficial.  At that meeting you will want to review the insurance you have in place for your home and your automobiles.   You will also want to consider an umbrella policy, or a personal liability policy, to insure you in areas where your homeowners and auto insurance does not.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Insurance Can Play an Important Role in Estate Planning – Attorney Colleen Sinclair Prosser

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

By choosing an executor and successor trustee when planning your estate, you will be able to have control over who is handling your final affairs. Choose trusted helpers who are trustworthy and reliable as well as fully capable of handling all of the duties. Take a look at the following information to better prepare for this decision. If you have any questions about how to choose a great executor or trustee, contact an estate planning attorney.

Fully Communicate All of Your Expectations

Communication is key to a successful estate plan; be sure to communicate what you expect from a trusted helper such as your executor and successor trustee. Explain, or have your estate planning attorney explain, the common duties such as communicating with beneficiaries; keeping detailed records; following court orders; working with the estate planning attorney; protecting and managing financial, real property, and personal assets; paying bills; filing and paying taxes; and distributing assets.

Make Sure Your Trusted Helpers are Ready for the Job

If you want to avoid confusion and delay in the future and want your wishes to be respected, you need to make sure that your trusted helpers are willing and able to serve when needed. Allow each trusted helper to think about his or her decision to accept the job ahead of time, so he or she can decide if it’s the right choice. Always name back-up trusted helpers in case your primary executor or trustee is unable to serve.

Make Sure You’re Making the Right Choice

Before appointing an individual, take the time to fully consider all of your options. This isn’t something that you should rush into. Think about the qualities that each potential trusted helper has and if you don’t have a family member or friend that is a good fit, name a professional trusted helper.

If you need assistance communicating your needs to your executor or trustee, consult with a qualified estate planning attorney.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

Another year

And we’re still here

As we always plan to be

As your resource

To direct your course

In preserving prosperity

Should you want to establish

A Will or a Trust

Without hesitation

The answer is us!

In Trust Administration

We minimize taxes

To those who are aging

Our guidance relaxes

We’re experts at pre-nups;

And post-nups, it’s true

Business succession planning

We can position for you.

As your estate planning expert

We give peace of mind

Our team stands to serve you

Through the passage of time

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

1)      Marriage. Marriage can automatically give each spouse some rights in each other’s property.  However, marriage does not automatically change your will or trust to provide for the new spouse.  It is important to examine your estate plan in light of the new situation and your mutual and separate goals.

2)      Divorce. Divorce is particularly disruptive to an estate plan.  Goals which you had before, such as providing for the now ex-spouse probably have to be changed.

3)      Birth or Adoption of a Child. The addition of a new family member can radically alter your estate plan.

4)      Illness. If you or one of your family members becomes seriously ill, you may want to consider changing your estate plan to reflect their increased needs.  For example, if a loved one now has special needs, you can leave assets in a trust that will not disqualify him or her from receiving government benefits.

5)      Change in Feelings about Family and Friends. With the passage of time, you learn more about yourself and others.  For example, you may decide your brother John, who lost everything in Enron and WorldCom, may not be the best selection to manage your assets.

6)      Change in Tax Laws. As we all know, Congress rarely leaves tax law alone for long.  Changes in tax law can mean your estate plan no longer accomplishes its goals.

7)      Change in Non-Tax Laws. Periodically, state legislatures change substantive non-tax laws.  These laws may affect who gets your property or how your trust may be managed.

8)      Inheritance. If you or your spouse have received or expect to receive a significant inheritance, there may be new opportunities to reduce taxes or provide creditor protection.

9)      Change in Assets. A significant change in the nature or extent of your assets may give rise to different estate planning options.  For example, the acquisition of a farm or business may raise issues of succession planning and discounted gifting.

10)   Change in Residence. While estate planning documents typically are valid from one jurisdiction to another, each state has its own peculiarities.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.

By: Stephen C. Hartnett, J.D., LL.M., Associate Director of Education, American Academy of Estate Planning Attorneys

After much wrangling and politics, on December 17^th, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, otherwise known as “TRA 2010.” The law did many things:

• Temporarily extended the Bush-era income tax cuts,
• Temporarily extended the program extending unemployment insurance benefits,
• Temporarily cut employee’s FICA tax by 2%, and
• Temporarily provided estate tax relief.

From an estate planning perspective, the new law set the amount that could pass without an estate tax at $5 million per person for 2010-2012. However, the new law is temporary and will expire after 2012. In 2013, the amount that can be passed free from tax will go back down to $1 million per person. Thus, unless the law is changed again between now and then, someone dying in 2013 would only be able to pass $1 million without an estate tax.

As before, you can use a portion of that exclusion to make lifetime gifts, but then it would not be available at death. In 2010, you can use up to $1 million of your exclusion during your lifetime. In 2011 and 2012, you can use your whole $5 million exclusion during life. Of course, then you would not have any available at death.

Congress also introduced a new “portability” provision. This is where one spouse can add their deceased spouse’s remaining estate tax exclusion to their own exclusion to shelter more from taxes. This portability provision, also known as the “Deceased Spousal Unused Exclusion Amount,” can be used to shelter the assets of the surviving spouse. While intriguing on the surface, under current law this portability tax benefit only happens if both spouses die in 2011 or 2012. If either spouse hangs on until 2013 or beyond, there is no portability option available.

In addition, the new law reduces the top estate and gift tax rate to 35% in 2010-2012. However, a top rate of 55% returns in 2013 and thereafter.

So, what’s the gist of the new law? Prior to TRA 2010 we were facing a return to the $1 million estate tax exclusion on January 1, 2011. Now, we are still facing a return to the $1 million estate tax exclusion; it’s just put off for two years now—to January 1, 2013. The bottom line is that TRA 2010 is temporary. In two years, it will disappear as though it had never existed.

SinclairProsser Law, LLC is a member of the American Academy of Estate Planning Attorneys.