Five Step Check List for Your Estate Plan

October 08, 2012

What did Heath Ledger and former Supreme Court Justice Warren Burger have in common?  Their career choices couldn’t have been more different but in their estate planning, they made similar mistakes — ones that could have been easily avoided.  Heath Ledger made the mistake of not updating his will when his daughter was born and even though Warren Burger was a Supreme Court Justice, well versed in the law, he made the mistake of doing it himself and ended up leaving out some key provisions.  In both cases, the family paid the price.  If a Supreme Court Justice can make a mistake, anyone can. Continue reading “Five Step Check List for Your Estate Plan”

What We Can Learn From “The Will: Family Secrets Revealed”

October 05, 2012

Sometimes my job is really fun!!!  Today is one of those days.  I had the opportunity to check out a TV show before it airs.  That made me feel a little bit like a celebrity.  Here’s the story.  There’s a show on Investigation Discovery called The Will: Family Secrets Revealed and I had never seen the show before.  Because of our blog here, someone from the channel contacted us to let us know that Season 3 is starting soon and graciously allowed one of us to preview a few episodes.  Luckily for me, I was the one who got to do this.  I think I have a new favorite show and I’ll be DVR’ing the series now!  Continue reading “What We Can Learn From “The Will: Family Secrets Revealed””

Three Common Estate Planning Mistakes That You Can Easily Avoid

October 01, 2012

When I made a mistake once on my taxes, I got a notice from the IRS in the mail asking me to pay what I actually owed and a little extra for interest and penalties.  This was certainly not a pleasant experience, but all it really cost me was money and my pride. However, when you make a mistake in estate planning and don’t catch it, you may not know it until it is too late.  The very people you were trying to take care of may end up muttering your name under their breath in frustration because they have some problems on their hands. Continue reading “Three Common Estate Planning Mistakes That You Can Easily Avoid”

Why Naming a Successor Trustee Is So Important

July 18, 2012

Last week I shared with you the story of Joe who, as a named healthcare power of attorney for his aunt and uncle, found himself in the difficult position of having to make healthcare decisions for both of them under less than hospitable circumstances.  As though that were not enough, Joe was also named the successor trustee for his aunt and uncle’s trust, which meant that at the same time he was making difficult healthcare decisions, he would also have to make important financial decisions.  Now, at first glance you might think it makes sense to name the same person in both capacities.  After all, one of the decisions Joe had to make was whether his aunt and uncle should receive care in their home or in a facility, and that would certainly depend on what they could afford.  But there are a number of reasons why it may have been better to name someone else as the successor trustee. Continue reading “Why Naming a Successor Trustee Is So Important”

Choosing the Right Healthcare Power of Attorney

July 11, 2012

Choosing a person to make healthcare decisions for you when you are physically and/or mentally unable to make them for yourself is difficult, but it’s a choice that should be made with great care and diligence.  This person may be required to make decisions not only about the type of treatment you receive but also about which hospital you go to, where and what type of custodial care you receive, and when it may be time for hospice care.  You may be inclined to simply name a spouse or a child, but as my friend Joe found out, this might put them in a very difficult position.  Here is Joe’s story (and just for the record, all names have been changed to protect the privacy of those involved): Continue reading “Choosing the Right Healthcare Power of Attorney”

One of the Biggest Challenges Facing Financial Planners

February 01, 2012

One of the biggest challenges I face in my line of work is deciding when to explain things in more detailed technical terms and when to explain them in more understandable  “practical” terms.  For example, when discussing the income limits for traditional and Roth IRA contributions, most financial professionals will tell you the limits are based on your adjusted gross income (AGI) when technically they are based on your modified adjusted gross income (MAGI).  In many cases, such as this one, the difference between the practical and the technical may be so small that it’s just easier to speak in practical terms. The problem is that if you don’t know the technical stuff, it’s easy to make a financial mistake. Continue reading “One of the Biggest Challenges Facing Financial Planners”

When Should I Consider Having a Trust?

January 11, 2012

At Financial Finesse, we are often asked this very basic question.  It seems simple enough.  A trust, by its purest definition, is a form of ownership.  You can own assets in your name alone, you can own assets with someone else (e.g. jointly), you can own assets by contract (e.g. a life insurance policy), or you can own assets in a trust.  There are several benefits to having assets held in trust.  For example, when you have a trust, you can control who receives trust assets, when they receive these assets, and what these assets may be used for.  Consider the following example:

When I was a child, my father was killed in a car accident.  Prior to his death, he provided instructions in his will that basically said if anything ever happened to him, money should be set aside in a trust until each of my two brothers and I turned 18, after which the money would be used to pay for college. Continue reading “When Should I Consider Having a Trust?”

I’m Thankful for…Estate Planning?

November 23, 2011

During Thanksgiving, many households (including mine) have a tradition of having each person at the table tell everyone what they are thankful for.  It’s in the spirit of this tradition that I’d like to share with you why I’m thankful for estate planning. Continue reading “I’m Thankful for…Estate Planning?”

Estate Planning for the Young, Single, and Not So Rich

October 27, 2011

When we think of estate planning, we usually think of something that only older, wealthy people do.  After all, how many of us think of ourselves as even having an “estate” to plan?  The fact is that if you own anything at all, you’ll have an estate when you eventually pass away.  The only question is what will happen to it. Continue reading “Estate Planning for the Young, Single, and Not So Rich”

Estate Planning: Governor Brown Has Enough To Do

October 10, 2011

Around the water cooler at the office yesterday, I was congratulating one of my co-workers on her child’s second birthday.  It seems like yesterday when she was pregnant, went into labor a few weeks early at work and we were all running around like chickens with our heads cut off so she almost needed to drive herself to the hospital!  It was something out of a “Three Stooges” comedy.  She made it to the hospital and everything turned out just fine. Continue reading “Estate Planning: Governor Brown Has Enough To Do”

The Joys of Moving

September 05, 2011

When was the last time you moved?  Were you amazed at the amount of “stuff” you have?  I am moving this weekend (from a five bedroom three bath home to a condo about half the size) and I am shocked at how much stuff is coming out of my house.  I found that I have not one, not two, but seven cameras!  There is an old Minolta manual 35mm film camera with a bunch of lenses (I’ll keep that one), a Canon 35mm film camera, and a bunch of point and shoot digital cameras (which we don’t really use anymore since we use the cameras on our phones every day). Continue reading “The Joys of Moving”

Why I Love My Whole Life Policy

August 15, 2011

Whole life insurance has a bad reputation.  It isn’t perfect but then again it wasn’t ever meant to be.  When used for the right purpose, however, it can fit perfectly into a financial plan when there is a need for life insurance.  You hear a lot of talk about the negative aspects of whole life and what it doesn’t do such as: Continue reading “Why I Love My Whole Life Policy”

Even Minor Surgery Can Be Scary!!

July 01, 2011

I had a real life brush with “Estate Planning” recently when I had some minor surgery performed. One of the questions that came up during registration was “Have you contracted any hospital borne infections in the last 12 months?” That question was Continue reading “Even Minor Surgery Can Be Scary!!”

Get a Durable Power of Attorney for Your Parents – Unless Your Mom is Betty White

May 16, 2011

The problem is our parents aren’t as feisty and sharp as Betty White is but they think they are.  Betty who is 89 is still working and even signed on a show on NBC slated for the fall about practical joke playing seniors.  Personally I am not so sure I want to work until 89, unless of course I am asked to be the host of Saturday Night Live at the time.  The issue is with the parents – our parents not wanting to believe they will have a diminished capacity.  Seriously.  Who would? Continue reading “Get a Durable Power of Attorney for Your Parents – Unless Your Mom is Betty White”

Important Steps to Take When Preparing Your Estate Plan

April 27, 2011

In my last blog I told you about my neighbors Mr. and Mrs. P.  Fortunately for Mrs. P, her next door neighbor is a financial planner, so I’m able to help her during this time of transition.  That being said, there are a few things Mr. P could have done to help make his wife’s situation a little easier.  Here are some things you can do to help your loved ones cope with your loss: Continue reading “Important Steps to Take When Preparing Your Estate Plan”

What are the Minimum Documents I Need for a Basic Estate Plan?

April 21, 2011

The other day I was spending some quality time with a very good friend of mine, enjoying the nice spring weather and having a great time talking about various topics, when as often happens the cell phone rings.  After seeing who it was, my friend decided to answer it, gesturing that it would be a short call.  Prescient she wasn’t as it turned out to be not only a long call but emotional as well.  Now I’m not one to engage in the art of eavesdropping but in this call I did not have to. Continue reading “What are the Minimum Documents I Need for a Basic Estate Plan?”

7 Steps to Follow after Losing a Loved One

April 20, 2011

My neighbor Mr. P passed away several weeks ago, and now I find myself in the difficult position of having to help Mrs. P sort through all the financial details.  Mr. P took care of all the financial decisions in their household, so you can imagine how upset and confused Mrs. P is right now.  While there are many important financial decisions that need to be made, very few need to be made right away.  Here are some steps to take following the loss of a loved one: Continue reading “7 Steps to Follow after Losing a Loved One”

Employee Communications: The Importance of Estate Planning

April 12, 2011

I had the sad task of attending my husband’s cousin’s funeral this past weekend, and it really brought to light the fragileness of life.  Dave (my husband) and his cousin were born in 1961, and would have been celebrating their 50th birthday together this year.  Even worse, he leaves behind a wife and 2 sons who are in shock both emotionally and financially.  Continue reading “Employee Communications: The Importance of Estate Planning”

Are You Prepared for an Emergency?

March 28, 2011

When hurricane Katrina hit, the newspapers reported a location that has the greatest risk of flood from levees failing – Sacramento California where I live.  My husband and I bought a house on a flood plain.  I know it sounds stupid but after the federal government made improvements to the levees, they deemed them safe enough to withstand the 100 year flood.  Based on that assessment, housing development, retail shops, and schools were built and 70,000 people moved to the area.  After the hurricane in Louisiana, the Federal Army Corp of Engineers reassessed the levees to less than 100 year flood protection.  In other words said, “Just kidding.  There really is a flood danger. The initial assessment was false.”  The area should never have been developed. Continue reading “Are You Prepared for an Emergency?”