Monday, April 11, 2011 Do you lead by example when donating to charity?
Bob Ross Estate Planning
Over the years, Northwestern Mutual has conducted a number of studies on financial literacy. One of the key findings is that kids' financial savvy and money habits don't come from celebrities, friends, media or even teachers - it's parents who have the most influence on the way children save and spend. But one financial area parents aren't actively leading by example is in donations to charity, according to a survey released by the Northwestern Mutual Foundation's financial literacy Web site, Themint.org.
When asked, "Do you know what organizations or causes your family donates money or time to?" most children 17 and younger said either, "I'm not aware of their giving at all" or "I know my parents give back, but I'm not sure how or to whom." Only 23 percent said, "My parents talk about the organizations and causes they support."
If parents don't discuss their charitable intentions with their children, a valuable learning opportunity is lost. The same is true for professional advisors and working with clients. Planning how to give is just as important as the planning that goes into saving, spending and investing.
Tips for modeling your charitable outlook
This is a perfect time for you as a parent and Professional Advisor to demonstrate how you're modeling and explaining charitable giving to your kids as well as your clients.
Engaging children and clients in financial matters doesn't have to be complicated; there are many simple things you can do. For example, you might consider the following. Also describe to your clients how you are doing this with your family. Stories are very powerful teaching tools.
* Involve kids in conversations about your charitable giving. Develop giving goals as a family. Choose a charity to financially support together. Model - and explain - how the family will budget to meet its giving goal.
* Show them that money isn't just for spending. Help kids start a four-bank system with compartments for saving, spending, investing and giving.
* Encourage children to develop realistic personal giving goals to support a cause in which they believe.
* Add fun into the process. For example, if your family decides to use its giving budget to buy toys for a program that distributes presents to disadvantaged children during the holidays, involve your children in the shopping for those toys.
* Explain to teens the concept of tax benefits related to charitable contributions to organizations such as The Salvation Army or your Church.
People are taught about the importance of giving. I believe that is one of the most lasting legacies you can provide.If you are now out of excuses not to get your estate planning in place or up to date, contact www.RossEstatePlanning.com
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Friday, April 01, 2011 Social Security News
Social Security Program Changes for 2011
The Social Security program is undergoing some changes in 2011 that will affect just about everyone – current retirees, those retiring soon and American workers. Here’s what you need to know about these changes, from a recent U.S. News Money report:
Lower Taxes
For 2011 only, Social Security taxes will drop from 6.2 percent to 4.2 percent for those with taxable wages of less than $106,800 per year. For the self-employed, the tax rate drops from 12.4 percent to 10.4 percent in 2012.
Retirement
Paper checks stop after May 1, 2011. Anyone applying for Social Security benefits after May 1, 2011 will no longer have the option to receive paper checks – you will be able to choose either direct deposit into a bank or credit union account, or have your monthly benefits loaded onto a prepaid Direct Express Debit MasterCard. For those retirees who already receive their benefits via a paper check, that service will stop on March 1, 2013 and you will be able to choose between direct deposit or debit card. This is estimated to save the system over $1 billion in the next ten years.
No more retroactive benefit suspensions. Beginning this year, retirees will no longer be able to retroactively suspend benefits and pay back monies already received to receive higher payments going forward. You will still be able to temporarily suspend benefits and restart them later – however, you will only be allowed to suspend benefits for the months you did not receive a payment or for future benefits beginning with the month in which you made the request.
Free loan option discontinued. Starting in 2011, individuals are no longer allowed to apply for benefits at age 62, pay back those benefits at age 70 and then reclaim benefits at a higher rate due to delayed claiming. The new rules are that you can only withdraw an application for benefits within 12 months of your first payment, and you are allowed only one withdrawal per lifetime.
For more information on effective retirement and estate planning, contact our Ross Estate Planning estate planning attorney.
Please share this with your friends. Monday, March 21, 2011 Does the New Estate Tax Law Affect Your Legacy
Does the New Estate Tax Law Affect Your Legacy?
In one word: YES.
Thanks to the new law, fewer families will pay estate taxes — but making your wishes become reality still takes careful planning.
The new changes recently signed into law made some big changes to the federal estate tax, which is applied to the value of what you leave behind at death. In addition to extending the Bush-era income tax cuts for two years, the law temporarily prevented estate taxes from imposing higher rates on American families. The new law provides for a $5,000,000 death exemption. The new law provides welcome relief, but it's important to realize that it will expire at the end of 2012. Without an extension, estates over $1 ,000,000 will be exposed to tax rates as high as 55%. A million dollars may sound like a large sum, but not when you consider the 3 largest assets in most families estates; life insurance, retirement plans and your home equity.
Review Every Estate Plan
Reviewing wills and trust documents should be on everyone’s to-do list. We live in a world of constant change. Changes in your family, changes in the rules. The economic crisis has prompted many people to stick their head in the sand and do nothing to reevaluate their financial and estate plans.
Planning Your Legacy: Not Just for the Rich and Famous
Why Plan your estate? Life is full of choices. Where to live? What career to follow? Whether to purchase a home? Frequently, our lives are governed by the choices that we fail to make; the non-decisions that come from procrastination, ignorance or apathy. People can choose to plan their estates or they can do nothing. Whether your net worth is $5,000 or $5 million, everyone should have an estate plan.Estate planning is appropriate at any stage of life -- if you don't prepare for the inevitable, you may create needless heartache and loss for those left behind. Estate Planning is not just about documents. Good Estate Planning is a process that lets you keep control of your wealth while you are here; protect yourself and family; distribute your property to the people and causes that you choose, and all at the lowest overall cost.. Use good estate planners to ensure things work the way you want. Friday, July 23, 2010 Long Term Care Risks and Their Solutions
As our population continues to age the need for long term care services continues to grow dramatically. According to the Department of Health website 70% of Americans over age 65 will need some kind of long term care in their lifetime. In addition, the largest provider of financing of care are tax dollars the Federal and state governments provide through Medicaid, not Medicare funding. (www.longtermcare.gov.).
The Federal government has imposed strict financial guidelines before tax dollars are to be used to pay for long term care. For an individual needing care, the total amount of assets that is allowed to be retained is only $2000!
Families are concerned that the high cost of nursing home care (currently $75,000 or more per year) will deplete their estates leaving nothing to give as a legacy to their loved ones. Romeo Raabe "The Long term Care Guy" asks a simple question "Would an extra bill of $50,000 to $90,000 a year be a problem in your retirement?" See www.Thelongtermcareguy.com
So what are families to do? The first solution would be to have a family meeting to put a Care Plan into place. Then the family needs to explore: 1) Purchase of a long term care policy that qualifies as a partnership plan in Wisconsin; 2) Consider self funding costs with a tax deferred HIPAA annuity with a long term care rider; 3) Explore purchasing life insurance with a long term care rider; 4) Determine if a Continuous Care Facility or life care residence is a safer and financially viable alternative to home care ( www.carf.org); 5) Have our Team of experts prepare an Estate plan for you that will preserve a significant amount of your assets from the rising cost of long term care. 6) Establish a reverse mortgage, either as a line of credit or as an annuity payment as a way to finance home care long term care costs.
A final alternative that will be available beginning in 2011 is a new Federal program to be established through the Department of Health as a voluntary payroll deduction Long Term Care Program through employers. If offered by a company, each employee will be enrolled in the plan unless they elect out of participation. The program is designed to pay for a small amount of long term care costs (between $50-$75 a day) as a benefit, with indexing for inflation.
Benefits are available after 5 years of premium payments. Since there is no medical underwriting individuals with health conditions will be accepted into the program automatically. Friday, July 02, 2010 2010 ANNUAL UPDATE MEETING
June 7, 2010 was the time for our 7th Annual State of the Estate meeting. Congratulations to the winners of our drawing. Bob Brogan won 2 tickets to the Baylake Bank Tall Ship Festival www.tallshipgreenbay.com. Paul Kieffer 2 tickets to the PGA Championship Friday August 14, round at Whistling Straits www.pga2010.com.
Two new exciting changes at Ross Estate Planning were announced. Check out our website for more details. www.rossestateplanning.com
"R" club Ross/Review/Revise. This is our new yearly review program. Your estate is too important to fall victim to law changes or to let new opportunities pass you by.
Legal Vault Secure access to healthcare directives when you need it most; plus electronic storage of your critical documents. This service is included in your "R" club program membership.
Romeo Raabe www.TheLongTermCareGuy.comhas a strong interest in cheap travel. He provided a number of insights and websites to help you in your travels. Call us to get a copy of his information. After the meeting he gave me another great tip:
"For people who travel out of the country, it’s a good idea to scan your passport and then email it to a free email account such as Yahoo or Google's gmail. Then if yours is lost while traveling, you can bring up a copy from any internet terminal in the world. Also print a color copy and then have it laminated. It can be carried in a swimsuit and not get wet."
Please feel free to share this information with your friends and family. Friday, May 28, 2010 Take Care of the Simple Stuff
You might be interested in a recent article at CNBC.com titled How to Manage Your Death Portfolio, online at http://www.cnbc.com/id/37088214. It’s another good example of an article that recognizes the need for more than a basic will.
“Most people have the traditional legal documents, but they don’t have a simple Family Love Letter,” says Craig Silverman, retirement planning specialist with AXA Advisors in Melville, NY.
The letter that Silverman is referring to is a 50-page document, created by Jeff Scroggin, partner in Scroggin & Company in Roswell, Ga., and includes an inventory of advisors, assets and other information. It even contains details like account passwords.
Each of Ross Estate Planning Portfolios have a place for all of this information to be provided to your family and Advisors. We call it your homework. We have thought of simple stuff like putting down the whereabouts of a bank safety deposit box, and the personal property list.
Is your Family Love Letter up to date? If not check out a new service for Ross Estate Planning clients called "The R Club". Friday, May 07, 2010 The Ultimate Gift
I sat down with some of my family members this past weekend to watch The Ultimate Gift movie. Every time I watch the movie I am inspired by the great message. It is a movie the entire family can enjoy. Jason Stevens embarks on a yearlong journey and discovers life changing lessons, forges meaningful relationships that he never knew could exist and learns to give back to others in need. I have handed out a number of the Ultimate Gift books. I am curious the reaction any of you have had to the message of the book and movie. By the way if you have not had a chance to see the movie you can rent it at your local video store or buy for about $10.00 at www.amazon.com/.
Please note that the book and the movie have some differences. In the book Red Stevens is Jason's great uncle. In the movie he is Jason's grandfather. In the movie, Emily, the young girl with cancer (portrayed by Abigail Breslin) will steal your heart. If you would like see the trailer for this movie follow this link: athttp://www.youtube.com/watch?v=rwXe5eKZr6M&NR=1.
I would like to encourage you to get share your thoughts and experiences you have gained from the lessons from the book. In the movie the first gift is work. Jason is sent to Texas to work on a ranch. Gus and red had to be great friends for Gus to take in Jason for a month sight unseen. What was your reaction to Jason's wakeup call from Gus?
In the movie the author Jim Stovall has a brief appearance as a limo driver. Remember he is blind. When I had a chance to meet Jim Stovall he explained that his appearance turned this family movie into an action adventure.
If you would like to look at a faith based discussion guide go to: http://www.theultimategift.com/public/docs/TheUltimateGift-FaithDiscussionGuide.pdf Friday, April 16, 2010 Who is minding your Digital Property?
Steven Maimes, principal of SALAM Research writes in The Trust Advisor Blog. http://thetrustadvisor.com/
Recently, a great deal of attention has been given to the digital life after death – especially gaining access to a deceased person’s email accounts. We have entered into an age where digital storage is replacing physical document storage. In the future, more important property will be created, revised, and stored digitally. And as more people move important components of their lives onto the computer (from photos to legal documents, medical records and beyond), it becomes necessary to devise a safe and secure method for a deceased or otherwise incapacitated person’s loved ones to access digital property. A recent article from The Wall Street Journalsuggests everyone establish a separate plan to deal with online property issues when they die or become incapacitated.
Here is what you can do now:
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List your digital property.Create a document and note if the property is personal or has monetary value. Other details can be included. For example account usernames and passwords, specific instruction about each account, and other details (such as whether certain documents or correspondence should be deleted). Update this list quarterly. (Legal Vault for R Club Members)
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Define your wishes.Choose who will have access to the property.
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Choose someone to execute your wishes.Provide access and control to that person including account usernames and passwords.
Friday, April 09, 2010 A Family Conversation
The Greatest Generation just does not like to discuss estate planning. Supposedly 7 out of 10 of us have no plan. Of the 3 who do, what are the chances that the plan is up to date?
A friend of mine, Dennis Brislawn, sent me this link to an article in the NY Times talking about talking. I wanted to share it with you as it paints the picture of what happens with no plan, and even how to open a conversation about one.
http://www.nytimes.com/2010/03/04/business/04ESTATE.html?emc=eta1
When I think about the plans that I have helped clients create, many stories come to mind. Some of the best laid plans have been made when the family gets together to talk. What I have learned from family conversations is that estate planning is really not about money, it's about creating lasting bonds within families. By getting together, families can help cement those bonds and preserve memories for generations. Saturday, April 03, 2010 Estate Plan Tuneup
I have previously discussed the importance of regularly monitoring client’s estate plans and, potentially, the need to update those plans when there are changes in the client’s life. A recent New York Times article, Assemble a Paper Trail, and Make Sure Your Heirs Can Follow It, suggests that this is a critically important process. “Once you have [an estate plan], it is crucial to keep it up to date. This should be done every five years or whenever there is a major life event.”
This article goes on to say that “in a year when there is no federal estate tax — though there will almost certainly be one in 2011 — reviewing wills and trust documents should be on everyone’s to-do list. Reviewing both wills and trusts for someone with substantial assets is particularly important this year. Even though there is no estate tax, wills can have clauses that distribute assets to trusts as if the tax still existed. This could end up leaving some heirs too much money and others none at all. And since a federal estate tax will return next year even if Congress does nothing about it, there will be a need to review everything again in 2011.”
Clients may opt to do nothing which is an inexpensive alternative for now.The cheapest alternative is seldom the best alternative.
"It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much you lose a little money - that is all. But, when you pay too little, you stand to lose everything, because the thing you bought was incapable of doing the thing it was bought to do.The common law of business balance prohibits paying a little and getting a lot - it can’t be done.
If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better."
John Ruskin
(1819-1900) |