Do you have a family owned business? Then, you might be thinking about what to do when you're ready to pass it down. Here are a few things to consider soon.

Strong financial planning creates clarity, prepares for future expenses, and ensures trusted people are ready to step in when needed. Read on to learn more.

Discover the reasons why hiring an estate planning attorney is crucial for protecting your legacy. Contact Nash Bean Ford & Brown, LLP today to learn more.

If you are in a committed relationship but have decided not to become legally married, you still need to plan to protect your assets for yourselves and your children. We know that complexities can pop up suddenly, so it is never too early to start a shared estate plan. Because unmarried couples do not automatically receive spousal rights, there is a specific legal approach that needs to be taken that involves creating a will, establishing trusts and designating the surviving partner as the beneficiary on all financial accounts and insurance policies. It is highly recommended that you seek the advice of an experienced estate planning attorney to create all formal legal documents for you. Here are some important steps you can take to protect those you love in the event of your passing or catastrophic illness: Set up a durable power of attorney — This document gives your permission for your partner to handle all financial and legal decisions on your behalf if you are unable to do so. This document clears up any ambiguity in terms of who the decision-maker may be. Create a living will with a proxy — With this document in place, your partner is granted permission to provide directions on your health care wishes in the event you need a medical intervention. Naming your partner as your proxy gives them the authority to discuss your medical care with your health care providers. Without this in place, a medical professional can turn to your next of kin, who may not be aware of your wishes. Establish joint ownership of property — Clearly defining what an unmarried partner's rights are to shared property after the death of the other partner is crucial. For example, if you own a home together, you will need to establish joint tenancy so that the surviving partner can continue to own the residence. This means that the property automatically falls to the surviving partner without going through probate. Have a cohabitation agreement in place — Similar to a prenup, this legal document details the responsibilities and rights between an unwed couple if the relationship ends. Some areas to be agreed upon are how property and debt will be distributed, who will care for any minor children and what the ongoing financial support for children or a partner will be. You may want to purchase life insurance to make sure that the surviving partner will be financially secure. Name your partner as your retirement beneficiary — If you want your retirement account to be handed over to your partner, then you must designate that person as your beneficiary. If you do not take this step, you run the risk of having the funds enter as part of the estate and go through probate. Include your partner as the executor of your will — By taking this step, you are assured that your final wishes will be carried out as you have specified. The executor should be a responsible individual close to you. They should be someone you can trust to distribute the contents of your will as you see fit. For your peace of mind, discuss your estate planning goals with your partner and retain a qualified estate planning attorney to handle all the legal requirements. A plan is essential to ensure that your partner and family are protected.

One of the saddest things we can experience is the cognitive decline of a loved one, whether it's a spouse, parent or sibling. What makes it even harder is that person's need for help with finances and with activities of daily living. It's worse still if he or she refuses this help despite the fact that he or she desperately needs it. There is no easy solution, but there is a way to help. With the appointment of a legal guardian (also known as a conservator), your loved one can get the help that he or she needs. A guardian is either a family member or a paid professional who steps in to take over financial decisions, personal care decisions or both. Two things have to happen for a legal guardianship to be established A judge must be given proof that: 1. The person with cognitive declines is truly unable to make competent decisions for him- or herself, and 2. The person who wishes to become the guardian has the ability to be a competent guardian. In order to be appointed as a legal guardian, that candidate has to have a care plan in place that ensures the person with Alzheimer's or other dementia is: Living in a safe place that allows the person to maintain his or her dignity. Free from financial exploitation. Able to receive necessary medical care. Able to receive necessary long-term care. Obtaining legal guardianship is never a slam dunk. As mentioned earlier, competency must be established for the person petitioning for the appointment, and incapacity must be proven for the impaired person. A judge uses a wide range of criteria to decide whether people are no longer able to care for themselves. There's a lot of paperwork involved in being a legal guardian, and many times, if it's a family member, that person might have to leave a job in order to take care of the financial and personal needs of the loved one. If you are facing these issues on behalf of a cognitively impaired loved one, please contact us. We can walk you through the complex process of obtaining legal guardianship of a loved one.

If you live a long life, your chance of declining cognition gets worse. The statistics are stark: Among the over-65 cohort, 29% struggle to make wise and informed financial decisions. By that age, 11% are suffering from Alzheimer's, while a further 15% have mild cognitive impairment, which may demand compensatory workarounds to preserve their independence. The decline only progresses. By age 82, the likelihood rises to 50% and by age 90 to 80%. Still, retirees and their families can prepare themselves for the mental challenges of aging. Warning symptoms Are stacks of unpaid bills mounting up? Is it taking you (or your parent) too long to settle the invoices? Do you flounder when you must quickly calculate a tip for a restaurant meal? Is a house that was formerly shipshape getting untidy? Is a retiree who always used to be prudent about investing suddenly throwing caution to the wind and making speculative gambles? It can be alarming for seniors to notice those traits in themselves or for their families to recognize those signs. Before financial calamity strikes, you must act for everyone's sake. Retirees themselves should stay hypervigilant for financial scammers. Several tricks target the elderly, often to elicit personal information that exposes their accounts. Some of these include: Posing as a Social Security or Medicare representative or a utility company Pretending to be a grandchild in need of funds — may be online or by phone Pyramid schemes Counterfeit prescription or anti-aging products, such as for improving memory skills Bogus telemarketing prizes Keep your antennae up and warn elderly relatives and other vulnerable people. Make sure to monitor accounts regularly for fraud or unauthorized activity. Simplify finances When retirees are competently managing their affairs, it is still sensible to streamline accounts. You might, for instance, limit accounts to one taxable, one traditional IRA and one Roth. You should be clear in your mind as to the function of each. Is it there for income or for emergencies to draw on? Or is it intended for legacies, such as for your children or grandchildren? If you can automate your bill payments, it will save you the hassle of tracking, paying and balancing accounts. You can also arrange for direct deposits. Another useful resource is Social Security's own Representative Payee Program, originally authorized by Congress in 1939, which helps beneficiaries who are incapable of managing their Social Security income. Now dealing with almost 3 million recipients, the program enables a designated friend, family or an institution, like a nursing home, to direct the income toward food, shelter, bills or medical care. Leftover money goes to an interest-bearing account or savings bonds. There are plenty of helpful budgeting tools available that retirees may find useful for keeping track of finances. A sampling includes: BudgetPulse — import information manually from accounts Budget Simple — free, intuitive interface Age Well Planner — for creating budgets, planning and cutting spending, plus government resources Mint — a popular tool for consolidating account information, with alerts for overdue bills or low fund levels Daily money managers (DMM) A DMM can be your financial butler and executive secretary, relieving stress and preventing errors. A DMM can perform many critical tasks, preventing them from falling between the cracks. Typical jobs include receiving and paying bills, managing mail, filing insurance claims, and taking on the drudgery of organizing tax return documentation. These providers are certified by the American Association of Daily Money Managers, which requires managers to pass a criminal background check and a written examination. But ask some key questions before you leap. What are the fees for in-person or virtual meetings? Can you get monthly statements? How many communications are allowed? Are you charged each time? Are you protected against a data breach? Can your fees be refunded for unsatisfactory service? You should discuss other strategies with your financial advisor or attorney, such as joint accounts or a financial power of attorney. Your advisor might also suggest an annuity for a limited portion (but not all!) of your assets.

The trouble with inheritances is that you're not around to make sure everyone completely understands the how's and whys of your decision-making process. That is why having frank and honest discussions ahead of time is critical. When siblings have very different personalities, needs, and motivations this can be even more difficult. How can you keep your kids or other heirs from fighting it out after you're gone? Here are a few things to consider. Start the conversation early and often. No, you don't need to have the conversation with your five-year-old, but once your children are adults, it is time. Talk to them about your wishes for your estate. Establish someone who can be an executor who is likely to be responsible and not instigate arguments between siblings and families. Establish your wishes in writing. Now that you've had the difficult conversation with your family, it is time to put pen to paper. This is where you should consult a legal expert who can help you craft a will that can work for your estate and, hopefully, keep the peace between your children or heirs. Understand the clarity of communication. For example, there is a difference between saying that each child will get an equal portion of items from the estate and specifically stating how each of their inheritances will break down in value. There may also be inequity between each child's lifestyle which facilitates a different process between them. Even if you're trying to create scenario that works best for each individual, that sense of fairness will be difficult to overcome. Know the difference between fair and equal. To this end, it is critical that you and your children understand the difference between fair and equal. Equal is giving each child a stake in the house so, after your death, it is sold and the profits split. Fair might be willing the home to your youngest child when your older children are already established in their own homes. You could, then, offer an asset of similar value to the oldest. Do you want to make sure that your family is taken care of in the most fair and equitable way? Our experts can help you establish the right process for your inheritance to avoid major conflicts between family members, so call today! Copyright HomeActions, LLC © 2012 - 2025. Powered by IndustryNewsletters, 5.19.3, authored by Richard Koreto.

This guide will walk you through the necessary steps to prepare for your first estate lawyer meeting, helping you feel more confident. Read on to learn more!

A life insurance trust is a form of irrevocable trust that invests the proceeds of a life insurance policy into a trust with designated beneficiaries. Most life insurance policies are owned by the insured. The money is paid when the insured dies, but the payment made to the beneficiaries is taxable. Because a life insurance trust is owned by a trust, which functions as a separate entity from the insured, the beneficiaries do not owe taxes. Life insurance trusts are often used to avoid passing burdensome estate taxes onto the beneficiaries. Understanding Estate Taxes The federal government taxes your estate above a certain amount, based on limits set annually and subject to change. When the estimated value of your estate exceeds this amount, the excess amount if subject to the federal estate tax. This tax is in addition to any income taxes and probate taxes or fees owed at the time of death, and they must be paid in cash within nine months of the death of the estate owner. If you hold considerable financial assets, your estate may be subject to very high taxes, thus reducing the amount you can pass on to your heirs by a substantial amount. Life Insurance Trusts: How They Work An irrevocable life insurance trust has a grantor, the person creating the trust. A trustee is the person chosen to manage the trust. The beneficiaries are those chosen to receive the benefits of the trust. The trustee purchases life insurance in the trust’s name, with you as the insured. The trust is typically named as owner and beneficiary. Upon your death, the money from the life insurance company is paid to the trust. The trust then pays any probate costs, legal fees and other fees related to the death and funeral expenses, and then distributes the remainder to the trust’s beneficiaries. Benefits Of Life Insurance Trusts Life insurance trusts aren’t subject to estate taxes. They also give you greater control of your assets, since you establish the rules and boundaries of the trust fund. A trust cannot be touched by creditors or the courts, so funds inside the trust are relatively secure. There are a few things to note about life insurance trusts. They’re irrevocable, which means that once you set up the trust, you can’t change it. Be certain of how you wish to create the trust and the ground rules regarding the management and distribution of funds. Life insurance trusts aren’t for everyone, but they do offer another option to minimize estate taxes. Tax laws and tax rules are constantly being updated and interpreted. This article contains general information, so please discuss your individual situation with a trusted tax adviser before making tax decisions.