Harry and Marge, a blended family couple, are seeking estate planning advice regarding their sizable assets. They have children from previous relationships and disagreements exist around support for the adult children after Harry's passing. The estate planner must determine the best approach to meet the couple's goals while avoiding potential conflicts between Harry, Marge, and their respective children.
1) The average debt obligation of active DC plan participants increased by 9% between 1992 and 2010, leaving less money available for retirement savings. For near-retirement participants between 50-65 years old, debt obligations increased even more sharply, by 69%.
2) Over 60% of households with DC plans accumulated more debt than retirement savings between 2010-2011. 20% took on credit card debt faster than retirement savings, while others accumulated mortgage, auto, or other debt faster than savings.
3) DC plan participants that accumulated any type of debt faster than retirement contributions had around 50% less retirement savings than those focused more on building savings. Debt savers had only about 2 years of replacement income saved compared to
What To Do When You Can't Pay Your MortgageHoyes Michalos
Your home is your biggest asset but you're struggling with keeping up with your mortgage payments. What are your options to deal with your debts and keep your house.
Seniors are increasingly carrying higher levels of debt into retirement which is an added risk on a fixed income. We address debt management solutions for seniors if debt levels are threatening their ability to make ends meet.
A checking account is most people's first exposure to the financial world. Checking accounts allow deposit and withdrawal of funds in various ways. Some key benefits of having a checking account include safety of funds, transaction flexibility, easier bill payment and cash access. However, not having a bank account can result in challenges without access to traditional banking services. The document then provides further information about checking accounts, including how they work, reasons to open one, how to read a bank statement, and compares checking accounts to other financial products and services.
The document discusses the major financial decision of whether to rent or own a home. Renting is the cheaper option upfront but the rent payments do not build equity, while owning requires a large down payment and closing costs but the monthly mortgage payments do contribute to building home equity over time. The document provides information about factors to consider for both renting and owning as well as costs associated with each option.
The document summarizes information about cohabitation from a family law conference presentation. It discusses:
1) The definition and increasing prevalence of cohabitation in the UK, with over 3 million cohabiting couples and most couples now living together before marriage.
2) The lack of legal protections for cohabiting couples compared to married couples, which can lead to relationship-generated disadvantage, especially regarding property and child-related financial matters upon separation.
3) The development of case law recognizing common law constructive trusts and considering both financial and non-financial contributions to determine property shares for separating cohabiting couples.
Cohabitation Agreements and the Agenda for Reform 17th June 2016Graeme Fraser
Cohabitation is increasing rapidly in the UK and other Western countries. This has prompted calls for legal reforms to provide more protections for cohabiting couples, particularly around issues like property division and financial support upon relationship dissolution. Currently, English law provides few rights for unmarried cohabiting partners. Other jurisdictions like Sweden take a more neutral approach, automatically sharing assets acquired jointly during cohabitation. Mediation is discussed as an alternative that could lead to more fair and amicable resolutions. Cohabitation agreements are recommended to clarify financial arrangements and avoid disputes, but many couples do not utilize them. Overall reforms aim to balance individual autonomy and protection of vulnerable parties like child caregivers.
1) The average debt obligation of active DC plan participants increased by 9% between 1992 and 2010, leaving less money available for retirement savings. For near-retirement participants between 50-65 years old, debt obligations increased even more sharply, by 69%.
2) Over 60% of households with DC plans accumulated more debt than retirement savings between 2010-2011. 20% took on credit card debt faster than retirement savings, while others accumulated mortgage, auto, or other debt faster than savings.
3) DC plan participants that accumulated any type of debt faster than retirement contributions had around 50% less retirement savings than those focused more on building savings. Debt savers had only about 2 years of replacement income saved compared to
What To Do When You Can't Pay Your MortgageHoyes Michalos
Your home is your biggest asset but you're struggling with keeping up with your mortgage payments. What are your options to deal with your debts and keep your house.
Seniors are increasingly carrying higher levels of debt into retirement which is an added risk on a fixed income. We address debt management solutions for seniors if debt levels are threatening their ability to make ends meet.
A checking account is most people's first exposure to the financial world. Checking accounts allow deposit and withdrawal of funds in various ways. Some key benefits of having a checking account include safety of funds, transaction flexibility, easier bill payment and cash access. However, not having a bank account can result in challenges without access to traditional banking services. The document then provides further information about checking accounts, including how they work, reasons to open one, how to read a bank statement, and compares checking accounts to other financial products and services.
The document discusses the major financial decision of whether to rent or own a home. Renting is the cheaper option upfront but the rent payments do not build equity, while owning requires a large down payment and closing costs but the monthly mortgage payments do contribute to building home equity over time. The document provides information about factors to consider for both renting and owning as well as costs associated with each option.
The document summarizes information about cohabitation from a family law conference presentation. It discusses:
1) The definition and increasing prevalence of cohabitation in the UK, with over 3 million cohabiting couples and most couples now living together before marriage.
2) The lack of legal protections for cohabiting couples compared to married couples, which can lead to relationship-generated disadvantage, especially regarding property and child-related financial matters upon separation.
3) The development of case law recognizing common law constructive trusts and considering both financial and non-financial contributions to determine property shares for separating cohabiting couples.
Cohabitation Agreements and the Agenda for Reform 17th June 2016Graeme Fraser
Cohabitation is increasing rapidly in the UK and other Western countries. This has prompted calls for legal reforms to provide more protections for cohabiting couples, particularly around issues like property division and financial support upon relationship dissolution. Currently, English law provides few rights for unmarried cohabiting partners. Other jurisdictions like Sweden take a more neutral approach, automatically sharing assets acquired jointly during cohabitation. Mediation is discussed as an alternative that could lead to more fair and amicable resolutions. Cohabitation agreements are recommended to clarify financial arrangements and avoid disputes, but many couples do not utilize them. Overall reforms aim to balance individual autonomy and protection of vulnerable parties like child caregivers.
This chapter discusses cohabitation agreements and premarital agreements. It defines cohabitation and explains that cohabiting partners can use documents like powers of attorney, wills, and cohabitation agreements to define their rights. A cohabitation agreement is a contract between unmarried partners living together that defines their intentions and obligations. If the relationship ends, cohabiting partners may seek equitable relief from courts like implied contracts or constructive trusts. The chapter also describes premarital agreements, their legal requirements, common provisions, and trends in their enforceability. It outlines the paralegal's potential roles regarding related cases.
Boston eitc coalition training11192010preetimehta5
This document provides information about promoting savings through the purchase of U.S. Savings Bonds at tax time. It discusses how tax refunds received by low and moderate income filers each year could provide an opportunity for savings. Research findings show that many tax clients want to save and are familiar with savings bonds. With assistance from a trusted tax preparer, clients can be encouraged to consider saving some portion of their refund by purchasing low-minimum savings bonds. The tax preparer plays a key role in raising the topic of savings and helping clients decide if purchasing bonds meets their savings goals.
The document discusses issues to consider when going through a "Gray Divorce", or divorce after age 50. It outlines tips for avoiding tax penalties when splitting retirement assets, such as using a Qualified Domestic Relations Order (QDRO) to transfer retirement funds between spouses. It also discusses deciding who gets the family home and the option of a reverse mortgage to potentially keep the home. Health insurance gaps and collaborative divorce methods are also mentioned as important considerations for older couples navigating divorce.
The document discusses promoting savings among lower-income taxpayers through the tax preparation process. It notes that Americans had stopped saving in 2008 and debt levels had risen. It then outlines the benefits of saving, including for emergencies, investments, and security. Challenges to saving for lower-income individuals are discussed. Examples are given showing that even modest savings are possible with programs that match savings. The remainder of the document provides guidance on promoting U.S. Savings Bonds to tax clients as a convenient and trusted way to begin saving at tax time.
This document provides information about mortgages and homeownership. It explains that a mortgage is a loan used to finance the purchase of a home. It distinguishes between fixed-rate and adjustable-rate mortgages. It also discusses factors that impact total mortgage costs like down payment amounts, interest rates, and loan terms. Additionally, it compares costs and payments for different down payment amounts and credit scores to illustrate the impacts of these factors.
The document discusses saving opportunities at tax time for lower-income individuals. It notes that Americans had stopped saving in 2008 and debt levels were high. However, tax refunds provide an opportunity for lower-income individuals to start saving, as they receive over $100 billion total in refunds annually. Research found that lower-income individuals who received assistance from a tax preparer were able to successfully save a portion of their refund in U.S. savings bonds. The webinar promotes savings bonds as a convenient and simple savings option that can be purchased for as little as $50 and used to help individuals meet savings goals.
This document provides an overview of the home buying process. It discusses preparing for homeownership by saving money and improving credit. The stages of buying a home are outlined, including choosing homes that fit one's budget and criteria, obtaining financing, making an offer, and closing on the purchase. Both benefits and challenges of homeownership are described, such as higher monthly costs compared to renting but gaining equity over time.
Tax-Advantaged Real Estate Investing When You've Maxed Out Your Self-Directed...Tom Rutkowski
This document discusses using permanent life insurance as a tax-advantaged way to invest and access funds for real estate investing. It outlines how life insurance provides stable, high returns that can be borrowed against at low rates, allowing investments to earn returns in two places at once. This "micro-banking" strategy improves returns without additional risk compared to traditional real estate investing. The document uses an example of a real estate investor to demonstrate how this strategy provides higher returns, asset protection, a death benefit, and income in case of critical illness.
This document provides an overview of the home buying process. It discusses preparing for homeownership by saving money and attending homebuyer education classes. The document outlines the steps to buying a home, including selecting homes and financing options, making an offer, getting inspections, and completing the closing. Key parts of the process include determining what you can afford, getting pre-approved for a mortgage, negotiating a purchase contract, and understanding your loan documents before finalizing the purchase. Potential issues that may arise are also addressed such as discrimination, predatory lending, and foreclosure prevention.
Making money sensetips and ideas to help your family prosper
Buying a Home
Am I Ready To Buy A Home?
Important questions to consider if you think
buying a house is right for you...
Do you have a steady income? Have you been employed on a regular basis for 2-3 years? Is your income reliable? Do you have a credit history? Do you have a good record of paying your bills? Will you be able to pay your bills and other debts? Do you have the ability to make the mortgage payment every month, plus handle additional costs for taxes, insurance, maintenance and repairs? Do you have money saved for a down payment and closing costs?
The document discusses challenges retirees face with managing their finances, including market volatility, longevity risks, healthcare costs, and inflation. It notes that average healthcare costs for a retiree are around $230,000 and that historically low-risk investments have not kept pace with inflation. The document advocates creating a customized portfolio that includes sources of steady income to outpace inflation and maintain one's standard of living in retirement. It also notes looming issues with Social Security and Medicare funding shortfalls that may require benefit adjustments.
Bankruptcy is a legal process that allows deeply indebted individuals to create a repayment plan or have some debts erased. There are two main types of bankruptcy: Chapter 7 involves liquidating assets to repay debts and allows erasing unsecured debt; Chapter 13 creates a court-ordered repayment plan over 3-5 years. Bankruptcy remains on one's credit record for many years and makes obtaining credit more difficult with higher interest rates. It is a major life event that permanently affects borrowers, lenders, and those declaring bankruptcy. Responsible financial habits like tracking spending, minimizing borrowing, and saving for large purchases can help avoid the need for bankruptcy.
This document provides an overview of understanding auto insurance. It differentiates the main types of auto insurance such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. It explains factors that determine auto insurance premiums such as driving history, personal information, vehicle type and mileage. The document also discusses discounts for good student grades and being added to a parent's existing auto insurance policy.
This document discusses the differences between wills and trusts for estate planning purposes. It explains that a will directs how property is distributed after death but requires probate, while a revocable living trust allows assets to avoid probate by transferring ownership of assets to the trust during life. It notes that a trust can be used to manage assets if one becomes incapacitated, but a will is needed to name guardians. Both documents allow directing distribution of assets, but a trust may provide privacy advantages over probate. The decision depends on factors like state probate laws and property holdings.
Homeowners in Distress: Preventing Foreclosuressondramilkie
1) The document discusses strategies to prevent homeowner foreclosures, including educational materials, counseling programs, and policy approaches.
2) It provides data on foreclosure rates in Wisconsin counties and discusses the financial and emotional toll of foreclosure on homeowners.
3) In Dane County, a task force was formed with various groups to develop coordinated prevention, intervention, and stabilization efforts like workshops, a mediation program, and identifying neighborhoods impacted by many foreclosures.
This document discusses various topics related to banks, loans, and credit, including interest rates, credit scores, auto loans, payday loan services, credit cards, and the ethics of debt. It provides an example of an auto loan deal for someone with bad credit, noting the interest rate would be around 17.9% for a $16,000 car loan financed over 72 months. It also discusses the concept of "usury" and how views on lending money have changed historically.
Unfortunately, researchers tell us that most Americans have not executed all of the appropriate estate planning documents. Many people don't act because they DON’T KNOW where to begin. This presentation explains the basics, and it may inspire you to finally take action for the benefit of your family if you are currently unprepared.
This document provides an overview of digital assets and how to plan for them after death or disability. It defines digital assets as online accounts and files stored digitally. It recommends creating an inventory of digital assets and naming a digital personal representative. It also discusses how various social media platforms like Facebook, Twitter, and LinkedIn handle accounts after death. Laws vary by state, and there is no uniform approach yet. Attorneys should consider digital assets in estate planning and clients should make their wishes clear.
The document discusses advance care planning (ACP), which involves discussing future medical care preferences with health providers. Key points include:
- ACP is a voluntary process that considers a person's values and wishes for end-of-life care if they become unable to communicate themselves.
- Discussing future care preferences can align treatment with a person's goals and values and may reduce family stress after death.
- Valid advance decisions to refuse treatment must be in writing, signed, and witnessed to be legally binding if a person loses capacity.
Parents with Minor Children Estate PlanningRobert Nash
If you have minor children, or children of any age with special needs, estate planning takes on a heightened importance. Learn more about estate planning for parents with minor children in this presentation.
This chapter discusses cohabitation agreements and premarital agreements. It defines cohabitation and explains that cohabiting partners can use documents like powers of attorney, wills, and cohabitation agreements to define their rights. A cohabitation agreement is a contract between unmarried partners living together that defines their intentions and obligations. If the relationship ends, cohabiting partners may seek equitable relief from courts like implied contracts or constructive trusts. The chapter also describes premarital agreements, their legal requirements, common provisions, and trends in their enforceability. It outlines the paralegal's potential roles regarding related cases.
Boston eitc coalition training11192010preetimehta5
This document provides information about promoting savings through the purchase of U.S. Savings Bonds at tax time. It discusses how tax refunds received by low and moderate income filers each year could provide an opportunity for savings. Research findings show that many tax clients want to save and are familiar with savings bonds. With assistance from a trusted tax preparer, clients can be encouraged to consider saving some portion of their refund by purchasing low-minimum savings bonds. The tax preparer plays a key role in raising the topic of savings and helping clients decide if purchasing bonds meets their savings goals.
The document discusses issues to consider when going through a "Gray Divorce", or divorce after age 50. It outlines tips for avoiding tax penalties when splitting retirement assets, such as using a Qualified Domestic Relations Order (QDRO) to transfer retirement funds between spouses. It also discusses deciding who gets the family home and the option of a reverse mortgage to potentially keep the home. Health insurance gaps and collaborative divorce methods are also mentioned as important considerations for older couples navigating divorce.
The document discusses promoting savings among lower-income taxpayers through the tax preparation process. It notes that Americans had stopped saving in 2008 and debt levels had risen. It then outlines the benefits of saving, including for emergencies, investments, and security. Challenges to saving for lower-income individuals are discussed. Examples are given showing that even modest savings are possible with programs that match savings. The remainder of the document provides guidance on promoting U.S. Savings Bonds to tax clients as a convenient and trusted way to begin saving at tax time.
This document provides information about mortgages and homeownership. It explains that a mortgage is a loan used to finance the purchase of a home. It distinguishes between fixed-rate and adjustable-rate mortgages. It also discusses factors that impact total mortgage costs like down payment amounts, interest rates, and loan terms. Additionally, it compares costs and payments for different down payment amounts and credit scores to illustrate the impacts of these factors.
The document discusses saving opportunities at tax time for lower-income individuals. It notes that Americans had stopped saving in 2008 and debt levels were high. However, tax refunds provide an opportunity for lower-income individuals to start saving, as they receive over $100 billion total in refunds annually. Research found that lower-income individuals who received assistance from a tax preparer were able to successfully save a portion of their refund in U.S. savings bonds. The webinar promotes savings bonds as a convenient and simple savings option that can be purchased for as little as $50 and used to help individuals meet savings goals.
This document provides an overview of the home buying process. It discusses preparing for homeownership by saving money and improving credit. The stages of buying a home are outlined, including choosing homes that fit one's budget and criteria, obtaining financing, making an offer, and closing on the purchase. Both benefits and challenges of homeownership are described, such as higher monthly costs compared to renting but gaining equity over time.
Tax-Advantaged Real Estate Investing When You've Maxed Out Your Self-Directed...Tom Rutkowski
This document discusses using permanent life insurance as a tax-advantaged way to invest and access funds for real estate investing. It outlines how life insurance provides stable, high returns that can be borrowed against at low rates, allowing investments to earn returns in two places at once. This "micro-banking" strategy improves returns without additional risk compared to traditional real estate investing. The document uses an example of a real estate investor to demonstrate how this strategy provides higher returns, asset protection, a death benefit, and income in case of critical illness.
This document provides an overview of the home buying process. It discusses preparing for homeownership by saving money and attending homebuyer education classes. The document outlines the steps to buying a home, including selecting homes and financing options, making an offer, getting inspections, and completing the closing. Key parts of the process include determining what you can afford, getting pre-approved for a mortgage, negotiating a purchase contract, and understanding your loan documents before finalizing the purchase. Potential issues that may arise are also addressed such as discrimination, predatory lending, and foreclosure prevention.
Making money sensetips and ideas to help your family prosper
Buying a Home
Am I Ready To Buy A Home?
Important questions to consider if you think
buying a house is right for you...
Do you have a steady income? Have you been employed on a regular basis for 2-3 years? Is your income reliable? Do you have a credit history? Do you have a good record of paying your bills? Will you be able to pay your bills and other debts? Do you have the ability to make the mortgage payment every month, plus handle additional costs for taxes, insurance, maintenance and repairs? Do you have money saved for a down payment and closing costs?
The document discusses challenges retirees face with managing their finances, including market volatility, longevity risks, healthcare costs, and inflation. It notes that average healthcare costs for a retiree are around $230,000 and that historically low-risk investments have not kept pace with inflation. The document advocates creating a customized portfolio that includes sources of steady income to outpace inflation and maintain one's standard of living in retirement. It also notes looming issues with Social Security and Medicare funding shortfalls that may require benefit adjustments.
Bankruptcy is a legal process that allows deeply indebted individuals to create a repayment plan or have some debts erased. There are two main types of bankruptcy: Chapter 7 involves liquidating assets to repay debts and allows erasing unsecured debt; Chapter 13 creates a court-ordered repayment plan over 3-5 years. Bankruptcy remains on one's credit record for many years and makes obtaining credit more difficult with higher interest rates. It is a major life event that permanently affects borrowers, lenders, and those declaring bankruptcy. Responsible financial habits like tracking spending, minimizing borrowing, and saving for large purchases can help avoid the need for bankruptcy.
This document provides an overview of understanding auto insurance. It differentiates the main types of auto insurance such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. It explains factors that determine auto insurance premiums such as driving history, personal information, vehicle type and mileage. The document also discusses discounts for good student grades and being added to a parent's existing auto insurance policy.
This document discusses the differences between wills and trusts for estate planning purposes. It explains that a will directs how property is distributed after death but requires probate, while a revocable living trust allows assets to avoid probate by transferring ownership of assets to the trust during life. It notes that a trust can be used to manage assets if one becomes incapacitated, but a will is needed to name guardians. Both documents allow directing distribution of assets, but a trust may provide privacy advantages over probate. The decision depends on factors like state probate laws and property holdings.
Homeowners in Distress: Preventing Foreclosuressondramilkie
1) The document discusses strategies to prevent homeowner foreclosures, including educational materials, counseling programs, and policy approaches.
2) It provides data on foreclosure rates in Wisconsin counties and discusses the financial and emotional toll of foreclosure on homeowners.
3) In Dane County, a task force was formed with various groups to develop coordinated prevention, intervention, and stabilization efforts like workshops, a mediation program, and identifying neighborhoods impacted by many foreclosures.
This document discusses various topics related to banks, loans, and credit, including interest rates, credit scores, auto loans, payday loan services, credit cards, and the ethics of debt. It provides an example of an auto loan deal for someone with bad credit, noting the interest rate would be around 17.9% for a $16,000 car loan financed over 72 months. It also discusses the concept of "usury" and how views on lending money have changed historically.
Unfortunately, researchers tell us that most Americans have not executed all of the appropriate estate planning documents. Many people don't act because they DON’T KNOW where to begin. This presentation explains the basics, and it may inspire you to finally take action for the benefit of your family if you are currently unprepared.
This document provides an overview of digital assets and how to plan for them after death or disability. It defines digital assets as online accounts and files stored digitally. It recommends creating an inventory of digital assets and naming a digital personal representative. It also discusses how various social media platforms like Facebook, Twitter, and LinkedIn handle accounts after death. Laws vary by state, and there is no uniform approach yet. Attorneys should consider digital assets in estate planning and clients should make their wishes clear.
The document discusses advance care planning (ACP), which involves discussing future medical care preferences with health providers. Key points include:
- ACP is a voluntary process that considers a person's values and wishes for end-of-life care if they become unable to communicate themselves.
- Discussing future care preferences can align treatment with a person's goals and values and may reduce family stress after death.
- Valid advance decisions to refuse treatment must be in writing, signed, and witnessed to be legally binding if a person loses capacity.
Parents with Minor Children Estate PlanningRobert Nash
If you have minor children, or children of any age with special needs, estate planning takes on a heightened importance. Learn more about estate planning for parents with minor children in this presentation.
Digital assets such as social media accounts, emails, and online financial accounts form an individual's digital estate. However, there is currently no uniform law governing the distribution of digital assets after death. This has led to issues such as companies permanently deleting accounts or refusing to provide access to deceased users' information to their families. While some services have emerged to help with digital estate planning, they do not replace a legal will or estate planning documents. Uniform digital estate laws are still needed to properly handle the transfer of digital assets upon a person's death.
This document is a presentation on estate planning for blended families given by L. Paul Hood Jr. and Emily Bouchard. It discusses the definition of blended families and examples. It addresses ethical issues that can arise in representing blended family couples, such as conflicts of interest. It also discusses determining who is considered "family" in a blended family and exploring clients' goals and concerns, which can often conflict more than in traditional families. The presentation covers various topics related to blended family estate planning.
1. The document discusses two important legal issues for seniors: preparing for diminished capacity and preparing to leave an inheritance.
2. It recommends granting powers of attorney and health care directives to prepare for potential diminished capacity and loss of ability to make financial and health care decisions.
3. It also recommends using wills, trusts, joint ownership or beneficiary designations to prepare an inheritance plan and avoid costly and lengthy probate processes.
What Is Estate Planning: Commonly Asked Questions and AnswersJennifer Vermillion
Estate planning is the process through which you make choices about what you want to happen to you and your property should you die or become incapacitated. Learn more about estate planning in this presentation.
Who will have access to your digital legacy when you become incapacitated or upon your death? Looks at the emerging field of estate planning for digital assets.
- Many people delay estate planning and do not appoint guardians for their children if they die. They also do not plan for what happens if no one claims their property after death.
- When creating a will and estate plan, it is important to consider all family relationships and dependents to ensure fair treatment. One should disclose all important relationships to their lawyer.
- Estate planning now also involves virtual assets like passwords, emails and online accounts. One needs to decide how these will be handled after death and ensure executors can access them.
The document discusses the essential components of a basic estate plan, including transferring financial assets through a last will or revocable living trust, appointing an executor through a last will to administer the estate during probate, using a revocable living trust to avoid probate and name a trustee and beneficiary, executing advanced health care directives like a living will and medical power of attorney, appointing a successor trustee or financial power of attorney in the event of incapacity, and contacting the law firm of Frank & Kraft for a free estate planning consultation.
The document discusses how to organize one's mind in order to organize one's life. It discusses how distractions, lack of self-regulation, and obesity are epidemics negatively impacting focus. It provides 6 rules for bringing order to the mind: 1) sweep the mind clean by taming frenzy and sustaining focus, 2) get above the forest to see the big picture, and 3) harness working memory, generate insights, and connect ideas. The document gives strategies grounded in neuroscience for applying each rule to improve focus, flexibility, and decision-making.
From the Oklahoma law firm Cazes Roberts, PC:
A concise yet practical review of what Oklahoma estate planning is, why some would want to do Oklahoma Estate Planning and the tools used in Oklahoma Estate Planning.
Depending on the exact estate in question various different types of legal devices could be utilized. In this presentation we are going to look at the core components of a basic estate plan.
This document contains information from Christian Sinclair, MD about resources for end-of-life planning and conversations. It lists websites, projects, books and articles about advance care planning, goals of care discussions, palliative care, healthcare directives, and preparing for death. Key resources mentioned include the Before I Die walls project, National Healthcare Decisions Day, the Center to Advance Palliative Care, and Ira Byock's book "The Four Things That Matter Most".
In this paper we have provided some things for you to think about, but there are no hard and fast rules with regard to a legacy plan. You simply ask yourself how you would like to be remembered, and you take steps to leave a lasting impression. Learn more about Connecticut legacy planning in this presentation.
Ll.b i fl u 3 essentials of muslim marriagesRai University
This document discusses the essentials of Muslim marriage according to Islamic teachings. It defines marriage as a contract that results in a man and woman living together with rights and obligations to support one another. Key aspects of a successful Muslim marriage highlighted include having a shared faith, patience, developing friendship with one's spouse and in-laws, choosing pious friends, incorporating fun activities together, establishing financial plans, prioritizing family, allowing freedom while being considerate of one another, planning for the future, and finding fulfillment in fulfilling one's role to their spouse. References are also provided at the end.
This presentation was made by Director of Brisbane Family Law Centre, Clarissa Rayward in September 2012.
Clarissa made the presentation on behalf of the Family Law Practitioners Association of Qld.
This ppt will help students who are want to have a detailed idea about marriage counselling or couple counselling. This ppt is developed for the purpose of achieving curriculum objectives for post graduate students.
This document provides information from Clarissa Rayward, a family law specialist and mediator, on common legal issues surrounding financial matters after separation. It discusses the four main steps in property division: identifying assets and liabilities, assessing contributions, considering other factors, and determining a just and equitable division. It also covers spousal maintenance and important timeframes. Key points include that property is divided based on value at settlement, not separation, and that negotiation through mediation or collaboration is preferable to litigation when possible. The document aims to clarify legal principles and provide tips for reaching an agreement on financial matters after separation.
DISCUSSION EXAMPLE W14 1. Select one of the four approache.docxstelzriedemarla
DISCUSSION EXAMPLE W14
1. Select one of the four approaches listed above and provide a brief (1-2
paragraph) summary.
Structural family therapy is based on the theory that an individual's symptoms are best
understood from looking at familial interactions and patterns (Corey, 2017). Salvador
Minuchin, the theorist behind it, also believed that the structure of a family must change
before an individual's symptoms can be reduced or eliminated (Corey, 2017). There are
two goals of structural family therapy: 1. reducing the symptoms of dysfunction and 2.
bringing about structural change within the system by modifying rules and establishing
appropriate boundaries within the family unit (Corey, 2017). Sub-systems were
eventually developed within this theory. These generally consistent of individuals within
the sub-system, for example, parental, spousal, or sibling, just to name a few (Corey,
2017).
2. Access Psychotherapy.net from the MBU library. Select the "Counseling &
Psychotherapy Theories in Context & Practice" videos. Once you open these
videos, select Family Systems Therapy and watch the video in its entirety. After
you have watched the video, construct 1-2 paragraphs that specifically details
your thought, feelings, and insights into the counselors use of family
sculpting and prompting congruent family communication.
I first noticed congruent family communication being used at the very beginning of the
session. Mom was saying that the boys always seem to have something negative to say
to each other. Both the boys agreed, and even sort of demonstrated a small example of
it. The whole family seemed to be in agreement that the boys always looked for the
negative in one another. Another way she used congruent family communication was by
connecting the entire family by identifying where and how they feel when they get
annoyed. The counselor demonstrated family sculpting by engaging the entire family.
She sat on the floor to demonstrate to Tanner how the feeling of being alone may look.
Tanner agreed that was a correct physical reflection of loneliness. She then got
Brayden's perspective of the situation and how anger would look to him. Then went onto
mom and identified what she is usually doing while this is taking place and the same
with dad. This exercise brought out a lot of emotions within the family because of mom's
guilt that Tanner felt lonely.
This helped to identify the roles in the family and what is happening that before may not
have been identified. I really thought these techniques were especially interesting. The
congruent family communication really seemed to connect the family as a whole. I think
this is especially beneficial for a counselor because it helps understand how the family
unit operates and each individual’s role within that family. I think this is a technique I
would want to use with a family because it helps get everyone on the same page of
communication. Family sc ...
DISCUSSION EXAMPLE W14 1. Select one of the four approache.docxmadlynplamondon
DISCUSSION EXAMPLE W14
1. Select one of the four approaches listed above and provide a brief (1-2
paragraph) summary.
Structural family therapy is based on the theory that an individual's symptoms are best
understood from looking at familial interactions and patterns (Corey, 2017). Salvador
Minuchin, the theorist behind it, also believed that the structure of a family must change
before an individual's symptoms can be reduced or eliminated (Corey, 2017). There are
two goals of structural family therapy: 1. reducing the symptoms of dysfunction and 2.
bringing about structural change within the system by modifying rules and establishing
appropriate boundaries within the family unit (Corey, 2017). Sub-systems were
eventually developed within this theory. These generally consistent of individuals within
the sub-system, for example, parental, spousal, or sibling, just to name a few (Corey,
2017).
2. Access Psychotherapy.net from the MBU library. Select the "Counseling &
Psychotherapy Theories in Context & Practice" videos. Once you open these
videos, select Family Systems Therapy and watch the video in its entirety. After
you have watched the video, construct 1-2 paragraphs that specifically details
your thought, feelings, and insights into the counselors use of family
sculpting and prompting congruent family communication.
I first noticed congruent family communication being used at the very beginning of the
session. Mom was saying that the boys always seem to have something negative to say
to each other. Both the boys agreed, and even sort of demonstrated a small example of
it. The whole family seemed to be in agreement that the boys always looked for the
negative in one another. Another way she used congruent family communication was by
connecting the entire family by identifying where and how they feel when they get
annoyed. The counselor demonstrated family sculpting by engaging the entire family.
She sat on the floor to demonstrate to Tanner how the feeling of being alone may look.
Tanner agreed that was a correct physical reflection of loneliness. She then got
Brayden's perspective of the situation and how anger would look to him. Then went onto
mom and identified what she is usually doing while this is taking place and the same
with dad. This exercise brought out a lot of emotions within the family because of mom's
guilt that Tanner felt lonely.
This helped to identify the roles in the family and what is happening that before may not
have been identified. I really thought these techniques were especially interesting. The
congruent family communication really seemed to connect the family as a whole. I think
this is especially beneficial for a counselor because it helps understand how the family
unit operates and each individual’s role within that family. I think this is a technique I
would want to use with a family because it helps get everyone on the same page of
communication. Family sc ...
DISCUSSION EXAMPLE W14 1. Select one of the four approachewiddowsonerica
DISCUSSION EXAMPLE W14
1. Select one of the four approaches listed above and provide a brief (1-2
paragraph) summary.
Structural family therapy is based on the theory that an individual's symptoms are best
understood from looking at familial interactions and patterns (Corey, 2017). Salvador
Minuchin, the theorist behind it, also believed that the structure of a family must change
before an individual's symptoms can be reduced or eliminated (Corey, 2017). There are
two goals of structural family therapy: 1. reducing the symptoms of dysfunction and 2.
bringing about structural change within the system by modifying rules and establishing
appropriate boundaries within the family unit (Corey, 2017). Sub-systems were
eventually developed within this theory. These generally consistent of individuals within
the sub-system, for example, parental, spousal, or sibling, just to name a few (Corey,
2017).
2. Access Psychotherapy.net from the MBU library. Select the "Counseling &
Psychotherapy Theories in Context & Practice" videos. Once you open these
videos, select Family Systems Therapy and watch the video in its entirety. After
you have watched the video, construct 1-2 paragraphs that specifically details
your thought, feelings, and insights into the counselors use of family
sculpting and prompting congruent family communication.
I first noticed congruent family communication being used at the very beginning of the
session. Mom was saying that the boys always seem to have something negative to say
to each other. Both the boys agreed, and even sort of demonstrated a small example of
it. The whole family seemed to be in agreement that the boys always looked for the
negative in one another. Another way she used congruent family communication was by
connecting the entire family by identifying where and how they feel when they get
annoyed. The counselor demonstrated family sculpting by engaging the entire family.
She sat on the floor to demonstrate to Tanner how the feeling of being alone may look.
Tanner agreed that was a correct physical reflection of loneliness. She then got
Brayden's perspective of the situation and how anger would look to him. Then went onto
mom and identified what she is usually doing while this is taking place and the same
with dad. This exercise brought out a lot of emotions within the family because of mom's
guilt that Tanner felt lonely.
This helped to identify the roles in the family and what is happening that before may not
have been identified. I really thought these techniques were especially interesting. The
congruent family communication really seemed to connect the family as a whole. I think
this is especially beneficial for a counselor because it helps understand how the family
unit operates and each individual’s role within that family. I think this is a technique I
would want to use with a family because it helps get everyone on the same page of
communication. Family sc ...
This document discusses reasons why marriages last based on a marriage workshop. It provides 7 reasons by Casey Leins for why people should get married, including economic benefits and children being raised in stable environments. It then discusses the three phases of marriage: rookie (0-5 years), intermediate (6-15 years), and veterans (16+ years). Some questions are provided for couples to discuss about each phase. Overall, the key points made for why marriages last include: taking care of yourself, managing conflicts and communication, being supportive and respectful of your spouse, and maintaining intimacy and fun.
The document describes the collaborative approach to divorce, which involves both spouses hiring collaborative lawyers who work together to resolve issues through mutual problem-solving rather than litigation. Key aspects include: (1) all meetings promote open communication to understand needs and reach agreements, (2) additional experts like coaches may participate, (3) the goal is to create fair agreements tailored to the family's needs in a less antagonistic process. The collaborative approach aims to preserve family relationships and is said to reduce costs, stress, and time compared to conventional adversarial divorce litigation.
Marriage in Canada: Purposes and Legal Issueslweitend
Social scientists study marriage from different perspectives to understand its common purpose. Sociologists view it through structural functionalism, seeing marriage as perpetuating social norms and roles. Anthropologists use systems theory, arguing marriage provides pair-bonding for survival. Psychologists apply social exchange theory, viewing marriage as a tradeoff where individuals seek benefits and minimize costs. While modern marriages vary, laws govern the legal institution, requiring licenses and defining eligible partners and rights.
260367062 how-to-manage-your-money-erik-wecksZol Has
This book provides advice on managing money when you don't have much. It introduces a simple financial plan divided into strategies and tactics. The plan is based on the author's own experience struggling financially and advising other families. The introduction discusses the current economic challenges in the U.S. and argues that lasting financial change requires altering beliefs about money in addition to changing behaviors. Readers are asked to examine their own thinking and spending habits around debt.
The document provides an overview of key concepts and issues in Australian family law. It discusses traditional and modern family structures, the role and influence of international law, and legal rights and responsibilities of parents and children. Key points of discussion include changing social values, compliance with the law, and using legal and non-legal approaches to achieve just outcomes for families.
This document provides information about a support group meeting for the Mindful Divorce group. It includes introductions, an overview of positive psychology and mindfulness, and a family law topic on credit card debt disclosure. Positive psychology is introduced as focusing on cultivating happiness, strengths, and optimism compared to traditional psychology's focus on pathology. Mindfulness is discussed as allowing one to release thoughts and patterns that sabotage happiness. The meeting includes a mindfulness meditation, expressive writing exercise, and addresses a common question about whether separate property owned before marriage needs to be disclosed. It reviews fiduciary duties between spouses under family law which require full disclosure and prohibit unfair advantage.
This document provides information about family law issues related to separation and divorce. It discusses things to consider at separation like finances and living arrangements. It explains the requirements for no-fault divorce in Australia and the two main areas of family law - property and children. When parties agree, they can divide property through consent orders or binding financial agreements. When they disagree, the court considers contributions, future needs, and a just and equitable division of property and financial resources. Two case studies are presented as examples.
The document discusses the importance of having a valid will and outlines some common misconceptions people have about wills. It explains that without a will, your estate will be distributed according to intestacy laws rather than your preferences. Additionally, your spouse may not inherit all of your assets and guardians for your children may not be who you want. The document recommends having a will written by a specialist to ensure your wishes are properly documented and advises reviewing existing wills periodically to keep them up to date.
Bringing a favorable solution family lawyers’tansygeoffery
"Family lawyers in Largo, Maryland provides solutions to daunting and sensitive issues that arise between family members.
• They handle issues that involve family members, including split ups, domestic financial disputes, negotiations and lawsuits
"
Marriage is a social contract that legally and emotionally unites two individuals. It requires a commitment from both partners to support each other through good and bad times. People marry for various reasons, such as legal obligations, family expectations, or religious beliefs. Successful marriages are typically monogamous and require open communication, mutual respect, trust, compromise, and putting effort into the relationship. A divorce legally dissolves the marital union and responsibilities. Common reasons for divorce include a lack of proper communication between partners, disagreements over finances or parenting, and immature or rushed decisions to marry without fully considering commitment. Rebuilding broken trust through honesty, respect, quality time together, and expressing love can help strengthen a struggling marriage.
This document discusses poverty and its effects on parenting and family relationships. It addresses several key points:
1) Absolute and relative poverty are both valid concepts - absolute poverty refers to a set standard across all countries, while relative poverty considers standards within a given society.
2) Poor families often face non-traditional structures, teenage parenting, health issues, large family size, and other challenges. Poverty can increase stress on parents and affect parenting styles.
3) Barriers to inclusion in services often exist for certain groups like fathers, those with disabilities, minorities, homeless families and those in rural areas - outreach must consider these barriers.
Understanding how poverty interconnects with parenting, family
Gray divorce, or divorce after age 50, has doubled in the past 20 years. Dividing retirement plans and long-term financial goals during a gray divorce is complex and requires serious financial planning. The document provides tips for avoiding financial mistakes when going through a gray divorce, including creating a budget to track expenses, taking inflation into account when determining settlements, considering long-term liabilities and expenses like healthcare, and ensuring alimony arrangements are beneficial to both parties given factors like future earning capacity.
Similar to Modesto estate planning council presentation (20)
2. Blended Family Estate Planning: the Intersection
of the Head and the Heart
“Second marriage is the
triumph of hope over
experience.” Samuel
Johnson
2
3. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• This past May, Emily Bouchard and I did a
three part teleseminar series on blended
family estate planning that each ran 90
minutes, all of which are available at
www.ultimateestateplanner.com
• We also are the co-authors of Estate
Planning for the Blended Family (SelfCounsel Press 2012), which is available at
the major on-line booksellers’ websites
3
4. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Our agenda for today’s presentation,
which comprises only selected issues:
• Define the term “blended family” and
describe how blended families can look
• Review some blended family statistics
• Analyze some of the business and ethical
ramifications of working with blended family
couples
4
5. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Our agenda for today’s presentation (cont.):
• Review a hypothetical situation involving a
“yours, mine & ours” blended family couple
• Consider a simple “empty nester” blended
family business hypothetical
• Consider some power of attorney issues
• Take up some post-death administration
issues, including asset allocation and estate
tax apportionment
5
6. Blended Family Estate Planning: the Intersection
of the Head and the Heart
What is a “blended family”?
• For our purposes, a “blended family” is one in
which two people are partners and at least
one of the partners has one or more children
who are not birth children of the other
partner
• Blended families can be quite different and, in
fact, each blended family is unique
6
7. Blended Family Estate Planning: the Intersection
of the Head and the Heart
What is a “blended family” (cont.)?
• What follows are examples of blended
families – to give an idea, while also being
clear that this is in no way exhaustive
• Each of these situations is quite different in
how you should approach the estate planning
• The bottom line: each blended family is
different
7
8. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• The Brady Bunch: Widow and widower in their
40’s, each with 3 children from prior marriages.
• May-December Relationship: 80yo wealthy
widower with 3 grown children in their 50s,
marries 26yo who has a daughter, age 7.
• Empty Nesters: 72yo widower with 3 grown
children, a pension, and benefactor of his wife’s
life insurance, marries 72yo who is long divorced
with three grown children, no savings or
retirement other than social security, and her
only asset is her home.
8
9. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• Eat, Drink, and Remarry: 63yo man with one grown
son and large alimony obligations marries 35yo
wealthy, two-time divorcee with two dependent
sons, as his fourth wife
• Nontraditional Blended Family: 46yo woman
recently moved in with her 37yo partner, who is also
a woman. Both are single parents, one is divorced
with a 10yo, the other’s adopted son is 18
• Yours, Mine and Ours: 43yo divorced man marries
41yo divorcee, each having a child younger than 18
from a prior marriage, and each having joint custody.
They also have a 7yo and a 3yo together
9
10. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Blended Family Statistics:
• More and more, blended families are becoming the norm
• 50% of the children in the U.S. are being raised in blended
families
• 1,300 new stepfamilies are formed every day
• As of 2010, there are now more blended families than any
other type of family
• At least one-third of the children living in the U.S. are
expected to live in a blended family before the age of 18
• Over 50% of blended family divorces are caused by the
children of either or both partners
• Source:
http://prtl.uhcl.edu/portal/page/portal/SOE/Programs/COUNSELING_MS/Counseling_Resources/Files/Ble
ndedFamilies.pdf
10
11. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Key Considerations towards Working
Effectively with Blended Families:
• Business and ethical issues, especially
regarding Conflict of Interest
• Joint or Separate representation
• This is a time when zealous representation
actually may harm the couple’s relationship
• Avoid “zero sum game” negotiations-look for
win-win solutions
12. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Conflict of Interest: This issue is much more
vexing when it involves a blended family couple
• You have to take into account that
approximately 60% of second marriages fail—
and the number is even worse-approximately
74%-for third marriages
• The problem with conflicts of interest is that
they almost always look worse in hindsight
after time has elapsed than at the time of
engagement
13. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Conflict of Interest (cont.):
• Conflicts of interest are not confined to the
lawyers but to other estate planning
professionals too
• Conflicts of interest are bad business even if
they aren’t ethical problems
• Let’s look at the conflicts of interest rules for
lawyers, since they are very well developed
• However, similar risks attend to the nonlawyers in this area too
14. Blended Family Estate Planning: the Intersection
of the Head and the Heart
REMINDER:
• The Rules of Professional Conduct
(“RPC”) for lawyers essentially restrict a
lawyer from representing people who
are at odds with one another or who
have issues that are in conflict with each
other
15. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• RPC 1.7 provides the general rule for
conflicts for lawyers: it generally proscribes
simultaneous representations of clients that
have a “concurrent conflict of interest”
UNLESS the lawyer reasonably believes that
she can provide “competent and diligent”
representation; it isn’t against the law; the
matters don’t involve an assertion of a claim
by one client against another client in the
same proceeding before the same tribunal;
AND the clients give “informed consent” in
writing [emphasis added]
16. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• A “concurrent conflict of interest” is one where
the representation of a client will be “directly
adverse” to another client OR (and this is a big
“or”) there is a “significant risk” that the
simultaneous representation will be “materially
limited” by the lawyer’s responsibilities to
another client, a former client or a third person
or by a personal interest of the lawyer”
• Can’t clients simply waive a conflict of interest in
writing, you ask?
]
17. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• Rule 1.0(e) defines “informed consent” and requires
the lawyer to communicate “adequate information
and explanation” about the “material risks” and
“reasonably available alternatives” *emphasis
added]
• The official comments to Rule 1.7 (which, while not a
formal part of the rule, clearly should be taken into
account in its interpretation) provide that the
conflict must be “consentable,” so some aren’t
• Guess what? Consentable is a circumstantial test
under the comments-that’s not much help!
18. Blended Family Estate Planning: the Intersection
of the Head and the Heart
What types of routine “conflicts of interest”
between blended family couples could come up,
you ask?
• Classification of property as separate, jointly
owned or as community property
• What about advice regarding severing joint
tenancies to allow for funding of a credit shelter
trust?
• Waiver of spousal rights in a retirement plan
• Advising about the applicability of a possible
spousal election
19. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Routine conflicts issues in blended family
couples (cont.):
• QTIP trust terms
• Types of legacies and restrictions on legacies
(trust v. outright) to spouses in general
• Wealth disparities or economic dependence
between the partners
• Interpretation of a marriage contract or
property agreement, including whether the
agreement would withstand attack
20. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• There are some very conservative lawyers who
simply won’t represent a couple in a blended
family and will only represent one partner
• Shouldn’t the proper focus be on what is best
for the client?
• I maintain that the answer to that question is a
resounding “yes!”
• I maintain that looking out for the client actually
is in the estate planner’s long-term best interest
too
21. Blended Family Estate Planning: the Intersection
of the Head and the Heart
What are the benefits to the clients of joint
representation?
• Cost savings (only one set of estate
planners)
• Efficiency and synergies of effort
• Joint representation could used to better
the communication between the partners
• Being treated as partners, not adversaries
22. Blended Family Estate Planning: the Intersection
of the Head and the Heart
What are the benefits to the clients of separate
representation?
• Undivided attention and loyalty of the estate
planner
• Total freedom to say what the client feels and
wants to have done in his or her estate planning
• Lower chance of estate plan challenges, but it
doesn’t eliminate challenges by a surviving
partner or that partner’s children
23. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Potential signposts of the possible need for
separate representation of a blended family
couple, despite what they say that they want:
• Where one partner is childless (the partners
usually have different loyalties)
• Where one partner does all of the talking or
seems to exert control over the other
• Short length of the relationship
• Number of past relationships
• Significant age disparity between the partners
24. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Potential signposts of the possible need for
separate representation of a blended family
couple (cont.)
• Significant disparity in wealth or income
between the partners
• Economic dependence of one partner on the
other that is used against them
• Existence of a pre-nuptial agreement
• Information held by one partner is off-limits
to the other partner, e.g., a secret, etc.
25. Blended Family Estate Planning: the Intersection
of the Head and the Heart
• The bottom line: Practice defensively because
blended family estate planning can be
treacherous waters where storms can come
up instantly and without warning
• Nevertheless, trying to work within the family
system usually is best where the decision is
made to represent the couple
• Recognize that the clients have some tough
choices to make and act accordingly
26. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Case Study:
Harry, age 62, and Marge, age
48, married for 16 years and
with a prenuptial
agreement, come to see you
about their estate planning
26
27. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Children:
• “Ours”: Harry and Marge have one child
together, Tom, age 13
• “Mine”:
Harry
has
two
sons, Harry, Jr., age 37 (who has two
children who are the apples of Harry’s
eye) and Steve, age 35
• “Yours”:
Marge
has
a
daughter, Anna, age 19
27
28. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Children (cont.):
• Harry, Jr. is COO of the family business, having
succeeded his father, is very successful and being
groomed as Harry’s successor, and there is a funded
buy-sell agreement in place in which Harry, Jr. will
purchase the stock from Harry’s estate
• Steve is a “free lance writer” and frustrated artist
who lives with Harry and Marge, over Marge’s
vehement objection, as she sees him as lazy and not
contributing
• Anna is in pre-med at Stanford with a 4.0 GPA, who
also lives with Harry and Marge when she’s not at
school, with Harry’s blessing, who loves her, having
lived with her since she was three
28
29. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Children (cont.):
• Neither Harry, Jr. nor Steve care for Marge at
all, believing her to be a gold digger, especially
given that she used to work for Harry as his
personal assistant, and view Tom as less than
a half-brother
• Anna loves Harry, and Harry actually
considered adopting her. Anna adores Tom
and thinks of him as her brother.
29
30. Blended Family Estate Planning: the Intersection
of the Head and the Heart
The Pre-Nup:
• Property held before marriage, and the
income from that property, was separate
• All other property was community property
• On divorce, Harry would give Marge his rights
in the family’s primary residence and give her
$100,000 for each year of marriage
30
31. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Assets:
• 90% interest in Harry’s, Inc. (Harry’s separate
property, a C corporation): $25,000,000
• Residence (joint tenants-free and clear):
$3,000,000
• Vacation homes in Park City, Utah (joint
tenants)-$1,000,000 and Naples, Florida (joint
tenants)-$1,000,000
31
32. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Assets (cont.):
• Harry’s 401(k) plan (Marge is the beneficiary):
$1,800,000
• Marge’s IRA (Anna is the beneficiary): $250,000
• Life insurance-Harry: $20,000,000 (split dollar
arrangement with a trust for the benefit of Harry’s
descendants, but Harry, Jr. is given the bulk of the
interest)
• Life insurance-Marge: $100,000 (Anna is the
beneficiary)
32
• Debts: $0
33. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Income and Expenses :
• Harry’s salary (separate property): $2,000,000
• Marge’s dividends and interest (separate property):
$50,000
• Harry’s dividends and interest (separate property):
$150,000
• Joint interest and dividends (jointly owned property):
$200,000
• Monthly household expenses (shared expenses, but
paid with Harry’s income): $50,000
33
34. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Behind the Scenes:
• Harry steps over a dollar to save a dime; Marge
worries about becoming a “bag lady” and has
anxiety when Harry books expensive trips.
• Other than being a little overweight, Harry is in
good health
• Harry used up his then $1,000,000 gift tax
exclusion in gifting 10% of Harry’s, Inc. to
Harry, Jr., but Marge has not used her exclusion
34
35. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Behind the Scenes:
• The couple is not financially charitably
inclined, although Marge volunteers for
the American Cancer Society, being a
two-time survivor of cancer
• Harry, Jr. wants Marge to have nothing to
do with Harry’s, Inc. when his dad dies
and is very worried that she will because
she’ll need income after Harry dies
35
36. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Behind the Scenes (cont.):
• While not charitably inclined, Harry expressed
a strong preference to give it to charity rather
than to the government “to buy more $5,000
toilet seats”
• Harry and Marge want to do something
special for his grandchildren, and their future
grandchildren (Anna’s future offspring are a
point of contention)
• Harry and Steve want their shares free from
Marge’s rights or control
36
37. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Behind the Scenes (cont.):
• Harry wants to take care of Marge and treat
the children equally, but is torn between
Marge and his older boys, and Marge is
seriously concerned that Harry might choose
his sons over her and Tom, and Marge wants
more to pass to Tom because he’s younger
• The estate planner is of the opinion that the
marriage is tumultuous and may not be on
solid ground
37
38. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Behind the Scenes (cont.):
The couple uncovers unaddressed areas of
concern, including:
• Marge feels that she’s not being adequately
acknowledged or recognized for giving up her career
to support Harry behind the scenes in building his
business while also raising Tom
• Harry feels caught in the middle and in a no-win
situation: he wants to assure Marge that she and
Tom will be well provided for while also keeping the
integrity of the company for Harry, Jr. and possibly
Tom
38
39. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Can you represent the couple at all? If
so, how will you represent them? Jointly?
Separately? Assuming that you are
comfortable
representing
the
couple, should you?
• Can you simultaneously work with
Harry’s, Inc.? Should you?
39
40. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• What would you advise relative to
the ownership of the real estate?
–Joint tenancy issues
–Severing joint tenancies to help Marge
use her applicable exclusion amount
• Are there any obstacles in your way?
40
41. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• There is quite a disparity between the net
worths of Harry and Marge from what they
brought to the marriage.
• How do you account for Marge’s intangible
contribution? Should this be addressed? How
could it be done? What are the advantages and
disadvantages of each technique?
– Estate equalization
– Inter vivos QTIP trust
– Remainder purchase marital trust
41
42. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Harry wants to treat all three of his children
equally but wants Harry, Jr. to get the whole
company unless Tom gets involved in the
company, in which case he wants the business to
be divided between the two boys. How can Harry
accomplish all of his goals?
• How do you see including Marge in this
conversation, as she believes she had a role in
building the business by keeping the home fires
burning? Should she have any say at all?
42
43. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Harry asks about how he should plan further
with his Harry’s, Inc. stock. What could he
do with that stock either during lifetime or at
death?
– Does the buy-sell agreement permit modification or
lifetime gifting of shares?
– Life insurance trust modification?
• What issues would Harry face, and how
could he solve them? What concerns do you
anticipate Marge having related to the
company stock?
43
44. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Would Harry want to give Marge
either a general power or a special
power of appointment? What risks
would Harry face in either situation?
How do you see including Marge in
this consideration?
44
45. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• What would you recommend relative
to planning for their primary
residence?
• What issues might they face in any
planning
with
their
primary
residence?
45
46. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Who should serve as executor of
Harry’s estate?
• Who should be trustee of his QTIP
trust?
• What protections can you build into
the trust to protect everyone?
46
47. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• How might you simultaneously
address the couple’s separate
concerns and get them to sign their
estate planning documents?
47
48. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions (cont.):
• What issues lurk under the water for
property powers of attorney for the
couple?
• How about for health care powers of
attorney?
48
49. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Consider another simple family business
example:
• Pete owns the majority interest in a closely
held business, Pete’s, Inc. Prior to marrying
Rita, Pete gifted some shares in Pete’s, Inc. to
his son, Steve, who is being groomed to run
and own Pete’s, Inc. and who works in the
business, but Pete retained control
50. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Consider a simple family business
example (cont.):
• Pete and Steve have a buy-sell agreement in place
wherein Pete’s estate will sell his shares to Steve,
and Steve owns life insurance on Pete’s life to pay
the sales price
• The couple live on Pete’s substantial salary. Pete’s
estate plan at present will hold his estate in a
QTIP trust for Rita and Steve, who don’t really
know or trust each other.
51. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Who should serve as Pete’s executor?
• Who should serve as trustee of Pete’s QTIP
trust?
• Does Steve have a conflict of interest in
serving as either executor or as trustee of the
QTIP trust?
52. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions:
• Does Rita have a conflict of interest in serving as
either executor or as trustee of the QTIP trust?
• If either has a conflict, do you solve it by
suggesting that they serve as co-fiduciaries?
• How might you solve the dilemma between the
desires of the income beneficiary of the QTIP
trust for income maximization and the principal
beneficiary’s desire for growth?
53. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Who should serve as Pete’s executor?
• Clearly, Steve would have a conflict in serving as his
dad’s executor, since he would be on both ends of the
buy-sell transaction and thus could manipulate the
deal to his benefit
• On the other hand, Rita as executor could cause
friction in the buy-sell transaction and even endanger
Steve’s at-will employment prior to the sale since she
and Steve neither know nor trust one another
• This is a situation that cries out for a third party
executor, even if only for this transaction
54. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Who should serve as trustee of Pete’s QTIP trust?
• Clearly, both Rita and Steve would have a conflict
in serving as trustee of the QTIP trust, since there
would be a substantial difference in investment
philosophy—Rita favoring income and Steve
favoring growth
• This again is a situation that calls for an
independent third party trustee or a unitrust
arrangement that would effectively go into effect
after the sale of the stock by the estate
55. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Could you solve the problem by making Steve and Rita cotrustees and co-executors?
• While this may work in theory, we’ve rarely seen it work
well in action—it usually isn’t wise to team up steprelations unless they really know, trust and get along well
together—otherwise, you’re likely to create a litigious
standoff and a lot of extra court time
• I recall a situation where, against legal advice, a client
teamed up child from wife number one and wife number
three as co-executors and co-trustees—after suing each
other for a year, the frustrated court removed them both
and installed independent third party trustees and
executors
56. Blended Family Estate Planning: the Intersection
of the Head and the Heart
How might you solve the dilemma between the desires
of the income beneficiary of the QTIP trust for income
maximization and the principal beneficiary’s desire
for growth?
• One might think about a unitrust, given that the stock
is to be sold pursuant to the buy-sell agreement,
thereby diversifying the asset mix and obviating the
drawback of a periodic valuation, which would be
required with a private unitrust, although the terms
would have to be the greater of trust income or the
unitrust amount if QTIP treatment is desired
57. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Powers of attorney issues -modifications
often are necessary to your regular forms
for a blended family couple
• The power of attorney should not permit
an agent partner to significantly alter the
principal’s estate plan; likewise, the
powers of an agent child should be
similarly restricted
58. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Powers of attorney issues -modifications often are
necessary to your regular forms for a blended family
couple
• The limitations might need to be both affirmative and
negative (negative) e.g., restricting beneficiary changes
and gifts that are not in accord with the principal’s estate
plan; (affirmative) requiring continuation of annual gifts,
etc.
• In order to dispel uncertainty, which can lead to
litigation, the power of attorney should expressly require
the agent to give the children of the principal access to
financial and medical information, or to the partner, if a
child is the agent
59. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Powers of attorney issues (cont.):
• Should limit giving away precious family heirlooms (e.g.,
silverware, china and pictures)
• Limit changing beneficiary designations
• Limit changing distribution provisions in IRAs and
retirement plans
• Should automatically terminate on separation or divorce
• Should limit the exercise of powers of appointment
• Should not waive any accountings, and in fact should
probably require periodic accountings by the agent
• Should affirmatively and broadly restrict self-dealing
60. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s estate
or trust
• There are actually two issues in the allocations of assets
in an estate or trust:
• What amounts are allocated between the
various legatees or beneficiaries; and
• Whether a QTIP election will be made, and, if so,
what assets will be QTIP’d
• I feel that both of these issues should always be decided
by an independent third party fiduciary in a blended
family context
61. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s estate or
trust (cont.)
• Only an independent third party fiduciary can be “above
the fray” when allocating assets between the credit
shelter and QTIP trusts
• If you can’t get an independent third party fiduciary to
make those calls, one group is going to be unhappy with
the calls
• Even if the family won’t go for an independent third
party fulltime fiduciary, the situation cries out for a
special trustee to make these calls
62. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s estate
or trust (cont.)
• You should consider some “fairly representative” (Rev.
Proc. 64-19) language that directs the executor to fund
the trusts with assets or cash, or both, and to value all
assets at their fair market values determined as of the
dates of their respective transfers so that each transfer
shares proportionately in the appreciation or
depreciation of assets between the date of the
decedent’s death and the date of transfers, particularly
where a “pick and choose” funding formula is used
63. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the
client’s estate or trust (cont.)
• You should include guidance about
considering the income tax consequences of
funding and of the assets themselves in the
instrument
• Appraisals of subjectively valued assets are a
must, especially for interested trustees!!!
64. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s
estate or trust (cont.)
• If you can’t convince a client to select an
independent third party as trustee or executor, you
could give significant guidance in the documents on
how the asset allocations should be made
• While you would generally give the independent
third party fiduciary a blanket indemnification and
hold harmless right, you should reduce that right to
make it clear that their decisions are subject to
review for compliance with their fiduciary duty
65. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s estate or trust
(cont.)
• Language such as the following should work to provide guidance on
asset allocations: In funding the trusts established in this
instrument, I direct [my Executor/The Trustee] to fund each trust
with assets or cash, or both, and to value all assets at their fair
market values determined as of the dates of their respective
transfers so that each transfer shares proportionately in the
appreciation or depreciation of assets between the date of death
and the date of transfer. In making the funding decisions, [my
Executor/The Trustee] also should consider the short term and long
term prospects for appreciation or depreciation in the assets
selected, as well as the associated income tax consequences. [My
Executor/The Trustee] is strongly advised to obtain independent
appraisals from qualified appraisers in making the funding decisions
over assets that have no readily ascertainable fair market value on
an established public market.
66. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Post-death allocations of assets within the client’s estate or trust
(cont.)
• I typically modified the indemnification language to permit
liability for breach of the duty of loyalty and impartiality due
to conflict of interest in that regard. I think that they have it
any way, but I liked to put it in there to remind them of what
they’re supposed to be doing and how they’re supposed to go
about doing it
• Consider language like: My Executor's decisions with respect
to allocations of assets between sub-trusts established
hereunder all be final, binding and conclusive on all parties in
interest, and my Executor shall have no liability as a result of
such decisions except for a breach of fiduciary duty or the
duties of impartiality or loyalty
67. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Estate tax apportionment issues
• Blended families can present some real
challenges for estate tax apportionment
• Don’t just assume that the client will want to
defer the estate tax as long as they can
through the marital deduction
• At the first death, it would be highly unusual
in a blended family to waive recovery of the
estate tax attributable to the property that
was QTIP’d in the first estate
68. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Estate tax apportionment issues (cont.)
• I’ve seen lots of situations where the client
wanted to treat his or her spouse the same as the
children, even if it means paying more in estate
tax
• The differentials in estate tax and what each
“side” nets can be large in situations where the
donor wants to treat the “sides” the same
• Document the client’s intention very well,
because that differential could make you (or your
e&o carrier) a prime target
69. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Estate tax apportionment issues (cont.)
• Contrary to popular belief in a married couple
estate plan, tax apportionment issues lurk at
both the first death and the second death, not
just at the second death
• Suppose that your very wealthy ($50,000,000)
client decides to leave 1/2 of his estate to his
children and 1/2 to his wife—is this intended
to be before or after estate taxes—don’t
assume! Be sure to ask about this
70. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Estate tax apportionment issues (cont.)
• For example, suppose Al dies in 2012 with a $50
million estate in a state with no death tax and an
estate tax rate of 35%, leaving 1/2 to his surviving
spouse, Beatrice, and 1/2 to his children
• Considering the exemption, which under present law
will shelter $5,120,000 of assets from estate tax, if
taxes come off the top, Beatrice and Al’s children
will each take $19,647,692.50 and $10,704,615 will
go to estate taxes
71. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Estate tax apportionment issues (cont.)
• If taxes come out of the children’s share instead,
Beatrice will take $25 million, Al’s children will
take $18,042,000 and $6,958,000 will go to estate
taxes
• In this example, then, there is a negative swing of
$5,352,307 in what Beatrice takes, a positive
swing of $1,605,692.50 in what Al’s children take,
and an additional $3,746,614.50 in estate taxes
paid, just depending upon how the estate taxes
are apportioned!
72. Blended Family Estate Planning: the Intersection
of the Head and the Heart
Questions?
Paul can be reached at 504.452.7574 or
406.243.6274 and
paul@paulhoodservices.com or
paul.hood@mso.umt.edu
72
Editor's Notes
What is a Blended Family: For our purposes, a “blended family” is one in which two people are partners and at least one of the partners has one or more children who are not birth children of the other partner
What is a Blended Family: For our purposes, a “blended family” is one in which two people are partners and at least one of the partners has one or more children who are not birth children of the other partner
What is a Blended Family: For our purposes, a “blended family” is one in which two people are partners and at least one of the partners has one or more children who are not birth children of the other partner
What is a Blended Family: For our purposes, a “blended family” is one in which two people are partners and at least one of the partners has one or more children who are not birth children of the other partner
The following slides provide examples are designed to give a feeling for the scope and range you may encounter in your practice where blended families are concerned.While we don’t have time now to go into detail about these, we wanted to make sure you received illustrations to more fully capture blended family dynamics.Brady Bunch Details: Mike, age 40, a widower has three sons. Mike marries Carol, age 38, a widow who has three daughters. They have no joint children. The children are all minors who live together. Mike owns his own business, and Carol has a substantial separate estate that she inherited from her late first husbandMay-December Relationship: Franklin, age 80, a wealthy widower with three grown children in their 50s, marries Bambi, age 26, an impecunious dance instructor who has a daughter, age 7. Franklin and Bambi would like to have a child of their own. Franklin has done a substantial amount of lifetime estate planning and has passed significant wealth on to his children and grandchildrenEmpty Nesters: Michael, age 72, is a widower with three grown children, a pension, and benefactor of his wife’s life insurance. Michael marries Sophia, age 72, who is long divorced with three grown children and who has no financial experience, has no savings and retirement pensions other than social security, and her only asset is her home. The couple plans to live in Sophia’s home, but Michael has a lot more wealth, on which Sophia is somewhat dependent
Eat, Drink, and Remarry: John, age 63, marries Judith, age 35, as his fourth wife. John has a son, age 37, and John has some expensive alimony obligations to his first wife. Judith, who has been divorced twice, has two sons, ages 11 and 8, each with a different father, with whom she splits custody. Judith has substantially more wealth than John, while John has far greater income-earning potential as a professional. John and Judith have a separate property prenuptial agreement.Nontraditional Blended Family: Marie, age 46, and Angela, age 37, are a couple. As a single parent, Marie adopted a child, who is now age 18. Angela, who has been divorced once, has a child, age 10, whom she is raising alone with only meager, sporadic child support. Marie stands to inherit money from her parents, but that may be in doubt due to her recent lifestyle choices. Angela has the greater income, and she owns the home that they live in, although both are contributing to the payment of the mortgage.Yours, Mine, and Ours: Bob, age 43 and divorced, marries Bridgett, age 41 and divorced. Each has a child younger than 18 from a prior marriage, and each has joint custody. Bob and Bridgett also have two children together, ages 7 and 3. Bridgett is staying at home to raise the young children, while Bob is working to support the family. Bob provides child support to his son’s mother, and Bridgett receives child support to a lesser degree for her daughter from her first husband.
Context/Background: When approached by a new potential client couple with blended family dynamics, there are some specific areas you need to be particularly aware of in their listening, and in your own best-practices and ethics.
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
The very first issue that lawyers have to address is whether they can represent a couple in their estate planning, or whether there is a conflict of interest.Why are conflicts of interest so important?In terms of your business, the mere accusation of a conflict is bad PR
EMILY’s voice – one of the biggest issues here is that the legal system is designed to “protect” and to treat others as adversaries to be protected from; the key in having conversations with couples who want joint representation is to see them as partners, as a team, aligned and working together towards common goals – and then, allow them to be aware of where conflicts of interests may arise and see how they respond and what their communication is like with each other.
EMILY’s voice – one of the biggest issues here is that the legal system is designed to “protect” and to treat others as adversaries to be protected from; the key in having conversations with couples who want joint representation is to see them as partners, as a team, aligned and working together towards common goals – and then, allow them to be aware of where conflicts of interests may arise and see how they respond and what their communication is like with each other.
Pause here and give chance for Q&A; check for understanding related to joint or separate representation.*Future slides starting at 30 will give the details of this case