Sunday, November 21, 2010

Connecting Grandparents to their GrandKids and Why Would You Need Estate Planning?

I am so proud of my friends, Scott and Patricia. They are amazing people--creative, compassionate and innovative.

Scott and Patricia are family focused and launching a new company called
GRANDCAMP ADVENTURES on November 10.  Through a mix of storybooks, backyard activities, games and music, Scott and Patricia have created a unique way for grandparents and grandchildren to form lasting memories and meaningful connections—or play their way to better relationships. 

I was surprised when Scott told me there are nearly 70 million grandparents in the United States and we all know how our families are scattered all over the country as well.  Patricia said they wanted to create interactive experiences to “create the space” to nurture and grow relationships between grandparents and their grandkids.  

Congratulations Scott and Patricia—you are proof that taking a great idea, turning it into a big goal and then figuring out how to turn the goal into reality can bring families together!

What goals have you set for yourself? How's your progress?

As long as we’re discussing families and goals, let’s talk a bit about Estate Planning. 
What is it?  Why would I need to do it?  What should I consider?

What is it?
Estate planning is essentially a process to think through and then set up legal arrangements to meet your specific wishes if "some-thing happens" to you or those you care about.  Good estate planning done with the guidance of a good estate planning attorney considers taxes, your desired health care treatment, and what happens to your stuff (business, insurance, investments, etc).  And though not fun to think about, it is best to do well before you would even think you need to do it.

Why would I need to do it? 
You should consider having an estate plan if:
·         You are the parent of minor children
·         You have property that you care about
·         You care about your health care treatment.
Think about details you handle on a regular basis.  If you weren’t around, is there someone else you would want to make decisions on your behalf.  If you have anything complex or if there are details only you handle, it would be very helpful to you family to have some directions and guidance.  I also recommend you talk with a friend who’s just handled the loss of an older family member and ask their advice.

What should I consider?
There are many aspects of your life to consider and this list includes a few.  If there is anything on this list you are not familiar with, then do some research, talk to an advisor, see what you need to take care of now while there’s no urgency.
1.      Estate tax planning - flexibility for changes in the law and value of assets
2.      Income tax planning – basis issues and retirement plans
3.      Coordination of asset ownership and beneficiary designation with estate plan
4.      Probate– Living Trusts, POD, TOD accounts
5.      Incapacity planning – Durable Powers of Attorney, Living Trusts, Health Care Powers of Attorney, HIPAA Authorizations
6.      End of life care – Advance Directives (Living Wills), DNR, MOST form
7.      Long-term care planning – insurance, Medicaid issues
8.      Insurance – life, long-term care, disability, umbrella liability
9.      Asset Protection – use of LLCs for rental property, avoid joint accounts, etc.

As you can see, an estate plan is more than just a set of forms.  It should be a comprehensive approach to dealing with certain or potential issues of death, disability, long-term care, tax liabilities, probate costs, and family disputes.  Not exactly cheery subjects, but certainly important and having a plan will let you sleep easier at night. 

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5 Tips You Must Have To Survive the Holidays with Family   High Profile Expert, Author Robert Schwaninger  Robert Schwaninger is President of Schwaninger & Associates, Inc., a Washington, D.C. law firm that specializes in telecommunications law.  He is also author of the book "A Married Man's Guide To Christmas".  Mr. Schwaninger has been quoted and interviewed by the Wall Street Journal, Newsweek, the Washington Post, the New York Post and other publications, and was a magazine columnist for nine years on areas related to telecommunications and finance.


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Cheers,

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