May 2021 - Jim A Lyon Law Firm

What You Should Know About Family Advancement Sustainability Trusts

Many people create estate plans to achieve certain financial objectives, but it is just as important to make sure that estate plans can satisfy “softer” goals. Because a person spends a life acquiring their wealth, it is a good idea to inform children as well as other loved ones about how to manage assets responsibly. You might also decide to utilize an estate plan to promote shared values and encourage giving back to the community. One of the best ways to satisfy these goals is to utilize a family advancement sustainability trust. Family advancement sustainability trusts are created in states that permit “dynasty” trusts that benefit several generations and which have directed trust statutes that make it possible to appoint either an advisor or committee to direct a trustee. A directed trust statute makes it possible for both family members and trusted advisors to participate in both the governance and management of a trust. Common Structures for These Trusts A common structure for one of these trusts includes four entities with the ability to make decisions including an administrative trustee, an investment committee, a distribution committee, and a trust protector committee. These trusts can also help to create a leadership [...]

gstealth132021-05-28T17:56:14+00:00Tags: estate planning, Family Advancement Sustainability Trusts|

Three Reasons to Think Twice About Durable Power of Attorney and Medicaid Planning

A durable power of attorney refers to a legal arrangement that is frequently used to deal with a person’s incapacity. While it is often a grim subject to address the prospect of a person’s eventual incapacity, failure to create the appropriate estate planning documents can later result in additional undesirable complications. Incapacity can be caused by countless factors. For example, Alzheimer’s Disease impacts a large number of older adults. Data shows that approximately 45% of people who are 85 years old or older and suffering from Alzheimer’s disease, which can, in turn, lead to dementia. While some people think that living to an advanced age is unlikely, data shows that a continuing number of people are reaching old age. The Census Bureau reports that the oldest segment of the population in the United States is also the fastest-growing portion of the country. Understandably, many people see the value in creating a power of attorney to deal with potential issues that could arise involving incapacity. New York state even provides statutory power of attorney forms in the hopes that this can speed up the process. This form is legally valid and if completed properly will give another individual certain powers to [...]

gstealth132021-05-23T18:06:34+00:00Tags: estate planning, medicaid, power of attorney|

Six Non-Financial Assets to Include in Your Estate Plan

Most estate planning lawyers are capable of doing an excellent job creating an estate plan to address the transfer of financial assets. It is often the case, however, that not enough thought is given to intangibles, which do not have an exact financial price and are often worth much more for their emotional value than their financial value. In these situations, it is critical to consider non-financial assets in your estate plan. Your Public Presence Your public presence is how the world views you and includes things like your reputation, how you are received in the media, and any public content like books that you might have written. A correctly handled public presence can result in increased business opportunities, while an improperly handled public presence can hobble future growth. If you are involved with passing on a family company, brand, or other public legacy, proper planning will make a substantial difference in the future of its reputation. Family Heritage Family plays a powerful role in defining our identities and our values. Performing some research into your family history can prove incredibly valuable. You might wish to pass on photographs and details about important events in your family’s history to make [...]

gstealth132021-05-23T17:59:58+00:00Tags: estate plan, estate planning|

Estate Planning Advice for People Nearing Tax-Exemption Limits

Taxes are often said to be one of the few unavoidable parts of life. The degree to which you end up paying taxes, however, can change substantially. Even though it is currently set at $11.7 million for singles and $23.4 million for a married couple, the estate tax exemption is set to expire in 2026. Following the government’s decision to create various pandemic recovery programs, it is likely that tax rates will increase. The uncertainty generated by estate tax exemptions means that anyone with over $5 million in assets is likely to be curious about various strategies that can be utilized to minimize taxes. The following reviews some estate planning strategies that you might consider if you are close to estate tax exemption limits. Make the Most of Annual Exclusions One of the best ways to reduce your taxable estate is to maximize your annual exclusion limit, which is currently set at $15,000 a year for each individual who receives a gift. Remember, it is possible to make gifts to as many people as desired provided the amount is less than $15,000 without facing tax consequences. Set up an Irrevocable Life Insurance Trust An irrevocable life insurance trust involves a [...]

gstealth132021-05-05T03:02:49+00:00Tags: estate planning, estate taxes, taxes|