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David Ash
When planning for an upcoming arrival into your family, most of the things on your to do list include registering or purchasing the baby gear you need and getting all of the supplies to decorate the nursery. Most people don't think about an important task that effects your entire family;estate planning. While some may think of the subject as a bit difficult, awkward, and even morbid, estate planning is beneficial for your family now and in the future.
When planning your estate, there are several things you should consider. Here is a list of some of the important topics that should be discussed:
Guardianship - if both parents pass away at the same time and don't have Wills, your families would need to go to court to determine guardianship which would ultimately be the decision of the court. Also, only an official, notarized Will is accepted by the court so you can't write down instructions on a piece of paper. ·
Trusts for minor children - if both parents pass away, children would get all of the assets at age 18. However Wills can include trusts to control when your children would get the assets. ·
If one parent passes away without a Will, the state effectively determines how the estate is allocated. Surprisingly, the estate does not all pass to the surviving spouse; rather half of your estate passes to the surviving spouse, with the other half going outright to your children at age 18. This is not what you would want. ·
Estate taxes - we simply don't know what the law will be beginning next year, 2013, because it keeps changing. Thus, Wills need to be flexible so that they don't need to be redone every year. Furthermore, while the federal estate tax law is in a state of flux, the state estate tax laws have set their exemptions at significantly lower amounts than the federal estate tax exemption, and the state laws are not expected to change. Thus, you are more likely to pay state estate taxes without proper estate planning, even if your estate is not so substantial. ·
Life insurance trusts (ILIT). The ILIT is a major estate planning tool, as it keeps insurance proceeds outside of your estate, effectively leaving more money for your children estate tax free. ·
Health care proxy - selects who would act on your behalf (as your agent) if you became incapacitated. ·
Living Will - provides instructions regarding whether you would want to be kept on life support; (can serve as a do not resuscitate order).
For more information on estate planning feel free to reach out to David at estateplanning4family@yahoo.com or 917-301-8705
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Ensuring Lifetime Financial Security for Child with Special Needs
By Heidi Goldstein and Marie DiCesare
According to the U.S. Census, nearly 21 million families in our country are caring for a member with special needs, and one in every 26 families is raising a child with a disability.[1] Parenting a child with a disability or special needs can be a complex and overwhelming endeavor. In addition to making sure your child has the best quality of life possible, including high quality health care and a reliable support system, you must also be the rock that keeps your family together.
The challenge is not only to meet the financial demands of your child, but to make sure those demands are balanced against your own long-term financial needs, including saving for retirement and building a financial legacy for your entire family. This can be a daunting task, though parents do not have to face it alone.
Assembling a team of professionals can help you to address the financial, social and legal issues you and your family may face. This team may include a special needs trust attorney, local care manager, disability and medical experts, and a tax adviser. They can help ensure you are well positioned to provide for a child with special needs, and secure your family’s financial well-being.
It can help to anchor this team with a Certified Special Needs Advisor (CSNA), a financial planner who has been trained specifically to help families like yours. They can quarterback and work hand-in-hand with your team to help ensure that financial and life goals are achieved.
Here are some other essential steps parents can take to help secure the financial future of a child with special needs:
1. Ask other families like yours for references for your team of professionals – ask questions about their approach and knowledge when it comes to caring for a child with special needs
2. Calculate your child’s future financial needs, including their projected income and monthly expenses, such as housing, transportation, special education and health care costs, as well as federal and state government benefits. This can help you identify potential shortfalls in your ability to sustain your child’s quality of life. Online resources such as the Merrill Lynch Special Needs Calculator can help (www.ml.com/specialneeds).
3. Create an achievable plan with your CSNA that accounts for your retirement savings, a legacy for all of your children, and unforeseen circumstances such as job loss or medical emergency. Included at the link above, is a Special Needs Planning Workbook that you can download free to begin this process.
4. Consider the use of a special needs trust, which allows you to contribute supplemental funds while remaining eligible for public benefit programs such as Medicaid, Supplemental Security Income or the U.S. Department of Housing and Urban Development (HUD) housing program.
Leading a family that includes a child with special needs may be difficult and often stressful. Having a strong team of professionals in your corner, along with a financial plan, may provide peace of mind knowing that you are able to provide your loved one with financial security, and ensure that their medical and physical needs will be met throughout their lifetime.
Heidi Goldstein is a Merrill Lynch Certified Special Needs Advisor (CSNA) based in New York, NY, and Marie DiCesare is a Vice President of Investment Tools for Merrill Lynch Wealth Management and was instrumental in the design of the company’s Special Needs Calculator.
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[1] 2005, U.S. Census Special Report
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Stacy Schneider
It’s a known fact among matrimonial lawyers that divorce rates go up along with money pressures. In tough times, even the most solid marriages are not immune from rough patches that come with job instability, dwindling bonuses, disappearing nest eggs and lay offs.
But the silver lining for many couples in a bad economy is that tough times may be the best excuse for couples to open up about their finances. And if you can endure a little discomfort in the front end by airing out some financial dirty laundry, there’s a big payoff at the back end. Not only will you be strengthening your relationship with your spouse, but you’ll be protecting your family’s assets and assuring peace of mind that if financial turbulence hits your house, you’ll be prepared to weather the storm.
As a former divorce attorney, I am no stranger to helping couples manage marriage and money. But you don’t need a professional or deep pockets to recession proof your marriage. To get started all you need to invest is a little time together at the kitchen table.
My 5-Step Plan for recession and relationship success is:
1. Organize—Together, make a list or spreadsheet of all marital assets and debts, organize bills and bank accounts and investment statements. Stay ahead of money problems by knowing when to expect a bump in the road.
2. Equalize Control-- Both spouses should share equally in paying bills and managing bank accounts. Couples fight less when one spouse isn’t left in the dark. In a partnership, both people should know what money is coming in and what money is going out of your marriage.
3. Prioritize—Decide together where and when to cut expenses, and the best way to spend your paychecks if money is tight. Focus on building your nest egg if you suspect a potential for lay-off or job loss.
4. Prepare—Stay-at-home Moms, polish your resumes and update your job skills. Take a computer class. Get ready to join the job market in case your marital financial picture changes.
5. Disclose—Be Honest… with yourself and with each other. Air out disagreements on spending and debt. Make a date to communicate about family finances at least twice a month.
Even if discussing money and finances falls outside your comfort zone, the best way to take care of your family, is to put your financial house in order and make it a habit to keep ahead of what’s happening under your own roof. As with most marriage issues, a little effort goes a long way.
Stacy Schneider is a trial attorney and author of He Had It Coming: How to Outsmart Your Husband and Win Your Divorce (Simon & Schuster). She appears as a legal commentator on CNN and Fox News and writes a column about celebrity divorce for The Huffington Post.
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