Home Posts tagged Estate
Local Business Advice

The Wealth Technology Group

By: Gary F. Thomas, JD, LLM, CLU, ChFC, AIF, CDFA

Earlier this year I received a call from “Jen”, a concerned client. She had just learned from her older brother that her widowed, elderly mother, who lives in Rhode Island, had fallen a couple of days before and had been admitted to the hospital with broken ribs and several fractures. Even though Jen was in the regular habit of calling her mother once or twice a week, the fall occurred shortly after their last conversation and was a shock.

Jen immediately dropped what she was doing and drove to the hospital. While visiting she perceived that her mother was suffering from more than the fractures, but was also somewhat disoriented, which Jen assumed was because of medications that were administered to alleviate pain.

When asked why she was not notified of the fall immediately she was told that mother and her brother who lived nearby just “didn’t want to worry her”. Of course Jen was worried, not only about her mother’s health but also about her mother’s finances, and whether any plan was in place to prepare for the unexpected. All along she had assumed that her brother, who was a retired comptroller, had everything under control.

When Jen questioned her brother, he said that even though he had dealt with finances for his entire life, he was uncomfortable talking to Mom about money, because it was too close to home. He wasn’t sure what planning their mother had done, whether or not she had even the most basic legal documents, and if so where they were located.

“They learned that their mother, who had lost her husband more than twenty years earlier, had never updated the documents after their father’s death.”

Unfortunately, they were forced to have the difficult conversation about money with their mother while she was still in the hospital, admittedly, not an ideal time. They learned that their mother, who had lost her husband more than twenty years earlier, had never updated the documents after their father’s death. Mom said that the lawyer who had prepared them had retired long ago, and she wasn’t sure where the originals were. More than that, she was not quite certain of her banking and financial accounts because the names of the institutions had changed so many times over the years, and she found it difficult to keep track of what she owned. Mom said she had just been assuming that, because of her son’s financial background “he would take care of things” should any health or financial issues arise.

Fortunately since her accident, Mom has returned home and appointments were made for the whole family to meet with a local attorney to complete some basic estate and elder law planning. Now, both Jen and her brother have located Mom’s insurance policies, financial accounts, and credit cards, and keep track of accounts monthly. They have updated the beneficiaries on life insurance and retirement accounts, which are now set up to avoid probate. For the first time, they have a clear picture of their mother’s assets, income and expenses.

Unfortunately, many incidents like this don’t quite turn out as well. Lack of planning and lack of time can cause a financial disaster. Often costly financial decisions are made in the heat of the moment and without full knowledge of the resources available, tax consequences, or the affect of the parent’s ongoing needs.

Our advice: Broach the conversation about money after you have completed your own estate and financial plan, then share with your parents what you have done, which may make it easier to begin the conversation.

 


Gary F. Thomas

JD, LLM, CLU, ChFC, AIF, CDFA

“Because it’s not what you make … it’s what you keep!”

Gary is the President of The Wealth Technology Group, with offices in Pittsfield and Westfield. His company serves over a thousand individuals and businesses in Massachusetts, Connecticut, and across the country, helping them reduce taxes, diversify their portfolios, and keep more of what they have.

Gary is a native of Pittsfield and is a graduate of the Massachusetts College of Liberal Arts and Western New England University Law School. He is a member of the Massachusetts Bar and holds the prestigious Master of Laws in Taxation degree from Boston University Law School. Gary is a Chartered Life Underwriter and a Chartered Financial Consultant. He is also certified as an Accredited Investment Fiduciary, having met the ethical and education standards of a prestigious network of forward-looking investment professionals dedicated to advancing fiduciary responsibility.

Gary has conducted courses on retirement planning, financial management, and estate planning at General Dynamics Corporation, Tubed Products, the Massachusetts Nurse’s Association, Plumbers and Pipefitters Locals 4 and 104, Westfield State University, Berkshire Community College and the Massachusetts College of Liberal Arts, and has lectured financial planning and insurance professionals throughout the U.S. and internationally on best practices and customer service. He specializes in education about safe money management and the maximization of pension and Social Security benefits, so that his clients enjoy a stress-free retirement.

Gary is a member of the Massachusetts Bar Association, the Financial Planning Association, the National Association of Insurance and Financial Advisors, and the International Association of Financial Planners; he sits on the Board of Directors of the MCLA Foundation. Last year, Gary was honored to be appointed a member of the Board of Trustees for Western New England University. He also underwrites programming for WHMP, Channel 57, and is a member of the Westfield Chamber of Commerce and the Better Business Bureau. He was chosen Outstanding Philanthropist of the Year for 2013 by the Western Mass Association of Fundraising Professionals.

Gary is a presence on local media and is sometimes called upon to comment on financial news. Every few weeks Gary also has some fun talking about financial topics with Bax & O’Brien on Rock102. His programs are available on the station websites, and are podcast on iTunes and at www.wealthtechnology.com. He has appeared nationally on Fox Business News, and has been quoted on the Forbes and CNN Money websites.

(800) 266-6793

[email protected]

www.wealthtechnology.com

Retirement Planning

Separating Hype from Reality

By Ann I Weber, Esq.

Ann I Weber, Esq.

Ann I Weber, Esq.

Recent headlines read: “Estate Taxes Repealed for All But Mega Estates!” “Get Your Hot Dogs Here with a Complimentary Will and Trust!” and “Never Need Legal Work Again!”

Is all this true, hype, or misinformation?

All three, as it turns out. Yes, only ginormous estates, i.e., those in excess of $11,200,000 for an individual, will be subject to federal estate taxes. Yes, wills and trusts may become less expensive without technical drafting to minimize federal estate taxes. Hype because many people have estates that are subject to state estate taxes. In Massachusetts, any estate over $1 million is taxed from dollar one — and you can’t dodge that bullet by making deathbed gifts.

Hype also because many non-tax situations make an estate plan desirable or even crucial. Misinformation because, as noted below, changes and complications in families, businesses, and relationships are inevitable, and sometimes an estate plan can help your family to navigate through what might otherwise be turbulent times.

A estate plan is important because you still need to say where you want your property to go at your death. Without a will, absent a named beneficiary, your property will go where the Commonwealth says it will go. In many cases, that’s not what you may want. For example:

• You may want your surviving spouse to receive all of your assets. But unless you say so in a will, your estate will be divided among your spouse and your children based on formulas tied to whether some or all children are from your prior marriages, if any, and from the prior marriages, if any, of your current spouse.

• You may have individuals you wish to include who are not your ‘heirs at law.’ Under Massachusetts intestacy statutes, a parent, cousin, nephew, friend, or charity, among others, might not benefit from your estate unless specifically named.

• You may have minor children and want to delay their direct access to your estate. Many people want to defer the benefits that their minor children receive from their estate until the children reach specified ages. The Commonwealth provides only for outright distribution to estate beneficiaries age 18 or older. If such beneficiaries are under the age of 18, the court will appoint a guardian to manage these funds for the child. A will or a revocable living trust can create a trust providing for delayed distributions to the child while still allowing the trustee to use trust assets for the child’s benefit until that time.

• You may have children from a previous marriage. The Commonwealth provides formula benefits to current spouse and children whether from the current or prior marriages, and may not meet the particular needs of your family. A will or trust can tailor distributions to your children and spouse or provide that property allocated to your spouse pass to your children at such spouse’s death.

• You may have a parent you want to benefit. The intestate laws in Massachusetts do not provide benefits for a parent if a spouse or children survive you. A will or trust could include such provisions. If there is a possibility that a parent might require nursing-home care, a specially drafted trust can shelter trust assets from MassHealth claims. At the parent’s death, trust assets will pass according to your directions.

• You may have a special-needs beneficiary. If assets from your estate are distributed outright to a person who otherwise qualifies for state or federal benefits such as MassHealth, Supplemental Security Income, or VA benefits, for example, the receipt of these assets may cause an interruption in or cessation of benefits. Instead, you may want to consider directing these benefits to a special-needs trust which can hold such benefits without adversely impacting needs-based benefits.

• You may want to make gifts to charity. Massachusetts laws of intestacy do not provide for gifts to charities. Such gifts can be made via a will or trust or by naming a charity as a beneficiary of your bank, investment, or retirement account. If a charity is named as a beneficiary of your retirement fund, the gift will pass free of income taxes that would be payable by individual beneficiaries and will also pass free of estate taxes.

• You may want to consider a durable power of attorney to appoint someone to handle your financial affairs in the event of your disability. Durable powers of attorney can take effect immediately or upon your disability and, in the event of your disability, can avoid the need for a court-appointed guardian with all the attendant expense, publicity, and delays — and the choice of who handles your affairs is made by you rather than a judge.

• You may want to specify the type of medical treatment you do or do not want. The Commonwealth provides a standard-form healthcare proxy, available online, that can address these concerns about treatment and end-of-life care. If you have strong opinions regarding the administration (or lack thereof) of particular forms of treatment should you be terminally ill or injured, you may want to consider executing a living will.

Attorney Ann I. Weber is a partner with the Springfield-based law firm Shatz, Schwartz and Fentin, P.C., and concentrates her practice in the areas of estate-tax planning, estate administration, probate, and elder law. She has a particular interest in creative estate planning for authors, artists, farmers, and landowners, and she is a frequent author and speaker on issues regarding estate planning; (413) 737-1131; www.ssfpc.com

buy ivermectin for humans buy ivermectin online buy generic cialis buy cialis