Even if you have the best power of attorney and living trust deal, if there is no cash available in the case of an emergency, your planning will be for naught. How much ready green do you need? Emergency funds are not limited to just cash in bank, but can be satisfied from lines of…
To sign a will, you must have testamentary capacity. This means that you must know the nature of your assets and the objects of your bounty. To sign a trust and many of the complex estate planning documents, a higher level of competency, known as contractual competency, is necessary. If not, the documents will be…
An estate was entitled to discount the value of its half undivided interest in artwork for the cost it would likely incur in a partition action to sell the art. This discount was based on an estimate of the cost to sell the paintings at auction. The court also indicated to factor into the valuation…
Do not sign the back of your credit cards. Instead write “PHOTO ID REQUIRED”. This will minimize the chances of identity theft and fraudulent charges.
Simple is best! The KISS principle (Keep It Simple Stupid) is supposedly a goal of many. But is simplicity itself really an appropriate goal? A simple document or plan may sound admirable, but what you really want is simplicity in result. Some examples include: Document: A short will may be simple, but it could create…
Follow through. It is good advice, and not only for your golf swing. If you set up a trust, you must review it annually with your advisers. Are you adhering to the terms of the trust? Are there trustee, investment adviser or other actions to memorialize? Have you documented compliance with the prudent investor act?…
Making sure that you are aware of your credit is important. You do not want to leave any debt or surprises for your loved ones to deal with after you are gone. You can get a credit report from each of three credit reporting agencies for free, once per year. Take advantage of this! Every…
Yeah they sold a lot of books with this theory, but the small stuff is really important. You should sweat it. All us Type A’s love to sweat them. Here is a bunch of commonly overlooked things that you should worry about. Be sure you have copies of current signed beneficiary designations forms. Too often…
Set up a file with all key medical records for yourself and each family member/loved one. Review disability, business interruption, and other insurances, as well as your rainy day funds, for emergencies. Consider how your estate plan affects those receiving it. Focus on their perspective, not just yours. Back up your home computer, and store…
If you’re disappointed with your accountant, the two winners below are probably looking for new clients. Is this the guy you want advising you? This CPA reported $21,553 profits from accounting services and $83,451 from gambling activity, all of which was offset by gambling losses. Instead of settling with the IRS he took the case…