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January 22, 2013
Filed under: Estate Administration,Estate Planning,Estate Taxes and Lifetime Gifts,Financial Planning,Living Trust,Living Will,Long Term Care — Tags: "Asset Protection", "Bloomfield Hills", "Christopher Berry", "Divorce", "Estate Planning Attorney", "Estate Planning", "Estate-Planning Tools", "Long term care", "Macomb County Estate Planning Attorney", "Marc Wander", "Michael P. Witzke", "Michigan Estate Planning Attorney", "Michigan Estate Planning Lawyer Blog", "Michigan Estate Planning Lawyer", "Oakland County Estate Planning Attorney", "Oakland County Estate Planning Lawyer", "Wayne County Estate Planning Attorney", "Witzke Berry Carter & Wander" — Christopher J. Berry @ 9:14 pm
Estate planning often has a more dramatic effect on women due elongated life expectancy and the tendency to marry older spouses. As a result, they are three times more likely to be widowed at 65, than men. Estate planning is an imperative component in retirement planning, and with a greater probability of surviving their spouses, women often have the final word about how much wealth goes to family, charity or the taxman.
(Read more: Women and Estate Planning: Part 1)
5. Spouses Get Special Tax Breaks
Under the “unlimited marital deduction” assets inherited or received as gifts from a spouse are not taxed. Starting in 2011, portability allows a surviving spouse to add any unused estate tax exclusion of the recently deceased spouse to her own exclusion. A widow can pass on up to $10.24 million, untaxed, through either lifetime gifts or her will. If your spouse is not a U.S. citizen, the marital deduction is more limited and portability does not apply.
6. Tax Planning For Widows Is More Difficult
The primary goal, for most married couples, is to leave each other provided for financially. Upon death of the first spouse, tax saving strategies are more imperative considering the unlimited marital deduction no longer applies. However, there are a number of simple ways to save taxes while achieving other goals, like subsidizing family members who are less fortunate, educating children and grandchildren and preserving retirement assets.
(Read more: Estate Tax On the Rise, Don’t Panic, Plan)
7. Do Not Own Your Insurance
Because proceeds could be subject to estate tax, you will likely give away money to the government if you die owning a policy on your life. One way to avoid that outcome is to designate the family member who will receive the proceeds as the owner of the policy. Another is to establish an irrevocable life insurance trust. Traditionally, the ILIT buys the policy and, when you die, holds the proceeds for whomever you have named as beneficiaries.
8. Beneficiary Forms Are Key
Retirement accounts are distributed according to beneficiary designation forms filed with the bank or financial institution holding your account. You can readily name any beneficiaries you desire with an IRA, including friends, family members, a charity or a trust. For a 401(k) or other workforce plan, you must acquire or spouse’s written consent to leave it to anyone else. You must filed an amended form to change a beneficiary, if you get divorced for example.
(Read more: 8 Life Stages of Estate Planning: Part 1)
9. Cash Is King
Couples who commingle money must ensure there is sufficient funds to cover immediate expenses if one of them suddenly dies. Said funds can be held in each of your separate accounts or in a joint individual account right away.
Read more: http://www.forbes.com/pictures/efik45ehjjg/estate-planning-is-a-womens-issue-2/
Mr. Witzke practices in the areas of estate and gift tax planning, financial planning, retirement planning, LGBT civil rights, charitable giving, elder law, and small business planning. He focuses on helping clients grow, protect, and transfer wealth efficiently. Mr. Witzke is a past president and board member of the Financial Planning Association of Michigan, a member of the board of directors for Leadership Oakland, and a member of the planned giving advisory committees of Wayne State University and the Community House in Birmingham. Follow Mr. Witzke on Twitter @gr8estatelawyer.
January 16, 2013
Filed under: Business Planning,Estate Planning,Estate Taxes and Lifetime Gifts,Federal Estate Tax — Tags: "American Tax Payer Relief Act", "Asset Protection", "Bloomfield Hills", "Christopher Berry", "Estate Planning Attorney", "Estate Planning Lawyer", "Fiscal Cliff Deal", "Macomb County Estate Planning Attorney", "Marc Wander", "Michael P. Witzke", "Michigan Estate Planning Lawyer Blog", "Oakland County Estate Planning Attorney", "Oakland County Estate Planning Lawyer", "Wayne County Estate Planning Attorney", "Witzke Berry Carter & Wander" — Christopher J. Berry @ 4:02 pm
Estate planning lawyers worked themselves ragged to close out 2012 in preparation for the approaching fiscal cliff. Lawyers worked overtime during the holiday season to set up trusts and fund them with gifts that made maximum use of what was then the $5.12 million per person tax-free amount.
(Read more: “Pound Foolish” Author Warns Americans From Taking Foolish Financial Advice)
But in less than three pages in the 157-page law, Congress passed the American Taxpayer Relief Act of 2012 or ATRA, and put to rest the looming uncertainty that had haunted wealthy taxpayers for the past 12 years. As it came to pass, ATRA did not adjust the amount you can pass tax-free during life or at death. On Jan. 11 the IRS announced that with the inflation adjustment, that amount will be $5.25 million in 2013 ($10.50 million for married couples).
(Read more: Living Together and Property Agreements)
With fewer people worrying about estate tax, lawyers are uncertain what their next career move will be. Clients are calling to ask if they did the right thing, expressing concern about whether they will have enough for themselves down the road and whether they gave too much away. Other residual work for lawyers in 2013 will include preparing gift tax returns for 2012 gifts, which are due on April 15.
(Read more: Saying ‘I Do’ to a Prenup)
Gift tax audits will begin in 2014, while the IRS challenges some of the cute text tricks used to leverage or pack even more into the lifetime exemption amount. But looking ahead, there is less work to be done. Some firms plan to engage in strategic planning, while others look for growth in the field of elder law, dealing with asset transfer and the quality of life as people age.
Read more: http://www.forbes.com/sites/deborahljacobs/2013/01/15/morphing-into-the-new-age-of-estate-planning/?goback=.gde_1701677_member_204612620
Mr. Witzke practices in the areas of estate and gift tax planning, financial planning, retirement planning, LGBT civil rights, charitable giving, elder law, and small business planning. He focuses on helping clients grow, protect, and transfer wealth efficiently. Mr. Witzke is a past president and board member of the Financial Planning Association of Michigan, a member of the board of directors for Leadership Oakland, and a member of the planned giving advisory committees of Wayne State University and the Community House in Birmingham. Follow Mr. Witzke on Twitter @gr8estatelawyer.
January 8, 2013
Filed under: Estate Planning,Estate Recovery — Tags: "Asset Protection", "Bloomfield Hills", "Deceased:, "Digital Information", "Estate Planning Attorney", "Estate Planning", "Internet", "Macomb County", "Marc Wander", "Michael P. Witzke", "Michigan Estate Planning Lawyer", "Oakland County", "Technology", "Wayne County", "Witzke Berry Carter & Wander", Michigan — Christopher J. Berry @ 5:54 pm
With so much of our lives online these days, many are curious as to what exactly happens to your digital stuff when you die? Currently, neither the U.S. nor Canada have consistent laws that treat digital data and accounts like physical goods, to be distributed via an estate plan after death.
Too often families are caught between estate laws (which grant them access to digital data) and privacy laws (which would forbid it). Some people create “social media wills” or share their passwords with a trusted person, while others use commercial services like LegacyLocker.com and SecureSafe.com, which allow people to store their account information in one place.
(Read more: Why Your Clients Should Be Concerned With the Federal “Death Tax”)
Without access to passwords and account details for the deceased, families must work within the guidelines of each individual tech company to gain access to their loved ones’ data. This can be a difficult process because most companies approach these situations differently.
This is a guide to navigate how some major internet companies handle the accounts of the deceased as of the end of 2012.
Google
- Won’t disclose passwords for Gmail or for its social network, Google+, or transfer ownership of an account.
- Won’t deactivate an account without a court order.
- May provide contents of a dead user’s account if family mails or faxes proof of the death and family connection, and family meets additional legal requirements such as an order from a U.S. court.
- Doesn’t offer Facebook-style “memorialization” for Google+ accounts.
(Read more: Estate Tax On the Rise, Don’t Panic, Plan)
Facebook
- Won’t disclose passwords or transfer ownership of an account.
- Will remove an account upon request of the family
- Will “memorialize” accounts if notified (not necessarily by a family member) that the user has died. Memorialization prevents anybody from logging into the account but allows friends to post remembrances and memorials to the deceased person’s account.
- Won’t disclose the contents of a deceased user’s account without a legal process.
Yahoo
- Won’t disclose passwords.
- If a user wants his family to have access to his account and after his death, Yahoo recommends he provide consent and his account information (username, password and/or answers to challenge questions) in his estate plans. Otherwise Yahoo won’t provide families data from the accounts of dead people.
- Will deactivate an account if the estate provides a death certificate via fax or email.
(Read more: Why You Need to Put Your Living Together Agreement in Writing)
Microsoft
- Won’t disclose passwords or transfer ownership of a Hotmail/Outlook.com account.
- Doesn’t consider it a violation for surviving family that gets a court order or otherwise has authority from the deceased to use his or her password to log into the account.
- Will deactivate an account upon the request of family.
- May provide contents of a dead user’s email if family contacts Microsoft via email and provides other documentation, which depends on location.
Twitter
- Won’t disclose passwords.
- Doesn’t disclose account data without a court order in the U.S.
- Doesn’t offer Facebook-style “memorialization” of accounts.
- Will deactivate an account if a family contacts Twitter with a copy of death certificate, a notarized statement, and other details.
Tumblr
- Won’t disclose passwords or transfer ownership of an account.
- Will remove an account from public view if requested by immediate family.
- Won’t disclose account data without a court order in the U.S.
- Doesn’t offer “memorialization” of accounts.
LinkedIn
- Won’t disclose passwords for accounts, or transfer ownership of an account.
- Allows others (even beyond family members or executors) to report the death of a member, which causes the account and its data to be hidden from public view. People reporting deceased members usually must know the email address associated with the deceased person’s account.
- If a family specifically requests it, will delete an account and all of its data.
- Will not provide account data to others, including family members, unless required by a court.
- Doesn’t offer Facebook-style “memorialization” for accounts.
Read more: http://blogs.wsj.com/digits/2013/01/04/what-to-do-online-when-a-loved-one-dies/
Marc H. Wander is a partner of the Bloomfield Hills law firm of Witzke, Berry, Carter &Wander, PLLC. Marc has been licensed to practice law in Michigan since 1992. Marc’s practice is devoted to estate planning and business succession planning. Marc is a member of the Probate and Estate Planning Section of the State Bar of Michigan and is a prior Chairperson of the Oakland County Bar Association Tax Committee. He is a frequent continuing education speaker to insurance agents, financial advisors, CPA’s and financial industry organizations. He has also been heard on WJR Radio. Follow Marc on Twitter @MarcWander
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