When actor Philip Seymour Hoffman died unexpectedly this past February, he hadn’t updated his will in about 10 years, and his estate planning left something to be desired. Hoffman’s will created a trust for his son Cooper, and left the rest of his roughly $35 million fortune to his longtime companion Mimi O’Donnell. It’s worth taking a look at what Hoffman might have done differently: ► First of all, apart from the trust for his son,
Americans have more than $12 trillion stashed away in IRAs, 401(k) plans, and similar retirement accounts. Yet very few people have given careful thought to what will happen to the assets in those accounts if they should pass away unexpectedly. In a surprising number of cases, what would happen is not at all what they would expect – or want. Over the next decade, as the Baby Boomers continue to age, we will hear many stories
ADDITIONAL INFORMATION: All of my nieces and nephews are under the age of 18. I want to be sure that they are the direct beneficiaries. I also want to prevent my drug addicted brother from getting any of the funds. ATTORNEY ANSWER BY MARGARET L. CROSS-BELIVEAU: You should establish a trust and fund it during your lifetime. Upon your death, the assets will be held or distributed as you have directed in the trust. The trust
ADDITIONAL INFORMATION: My sister is POA for my mother and father. Her 4 siblings have filed for guardianship after 2 yrs of obvious receipt from her concerning our folks assets , her obvious drug issues, misuse of both cash& credit and the selling of our parents house and estate without honest disclosure. Father passed 3 days prior to the first hearing in which she perjured herself concerning a lapsed life insurance policy which was discovered by
ADDITIONAL INFORMATION: If a bank has an INVESTMENT ACCOUNT titled “Transfer on death” to one beneficiary and a Living Trust document (unfunded) lists the INVESTMENT ACCOUNT as trust property to another beneficiary, which document prevails? The Grantor is deceased. ATTORNEY ANSWER BY MARGARET L. CROSS-BELIVEAU: A trust must be funded in order for it to do any good. A trust may be funded either during a person’s life, which is the least costly way, or via
ADDITIONAL INFORMATION: There is a very tense relationship between sisters at this point there is only a verbal promise ATTORNEY ANSWER BY MARGARET L. CROSS-BELIVEAU: The inheritance of the rings will governed by your sister’s Last Will and Testament. If she wants her nieces to inherit her rings, it should be written into her Will. Legal Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on since each situation
One of the most common mistakes people make in estate planning is that they finally create a complete, thorough, highly advantageous estate plan – and then forget to follow through and put it all into effect. It’s not uncommon for people to have detailed documents drawn up, and then not get around to signing them. Or they create a trust, but forget to transfer assets in order to fund it. Or they decide whom to name
Bernard and Jeanne Adler donated $50,000 to an animal shelter in their hometown of Princeton, N.J. The gift was to finance a new structure for large dogs and older cats (whose prospects for adoption are limited), and the structure was to be named for the Adlers. Before construction began, however, the shelter merged with another organization. After the merger, the new organization announced plans to build a smaller structure in another town, without specific facilities for
Some people never get around to writing a will or planning their estate until the last minute, when they have grown old and have a serious illness. Other people write a simple will when they’re young, but never review or update it until something happens that makes them think that death is imminent. While any estate planning is better than none, the vast majority of mistakes and problems occur when people procrastinate planning their estate and
If you don’t need all the money in an IRA after you retire, there can be big tax advantages in carefully leaving it to your children or other heirs. If it’s done right, the heirs can take out only the minimum required distribution each year, and the assets in the IRA can continue to grow tax-deferred for decades – and in some cases, for generations to come. The problem with this planning technique is that it
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