18 November

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Trust Funding – Education is our Goal

At InSight Law, our focus is always on education. We are constantly striving to educate our clients, their families, and advisors around the community. One thing we stress is trust “funding”. Trust funding involves the coordination of all your assets with your trust. This is to ensure all the instructions you lay out in your trust will apply to your assets in the event of a disability or a death. We often see clients that have setup a trust several years ago and never done anything with it. It eventually becomes just a pretty binder on a shelf. Then, a disability or death occurs and the family goes into that pretty binder and discovers it is rather useless. However, if your assets are properly coordinated with your trust, the trust assets will be managed by the next person you have named as trustee upon your death or disability. This makes a...

27 October

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The Burden of Inheritance

Posted by Bobby Feisee

in Bobby's Blog

Many people mistakenly believe that inheriting a large estate is some wondrous thing akin to winning the lottery. All of sudden, you are presented with access to vast sums of money, large pieces of property, etc. Such assets can completely change your standard of living. Nevertheless, there are numerous “burdens” associated with inheritance. One of the biggest burdens is the emotional trauma associated with inheritance. We must not forget that someone died in order for an estate to be distributed. Along with the emotional toll of inheritance is the large amount of time and work that must go into properly distributing a large estate. If you are selected as the trustee or executor of a sizable estate, you are likely going to feel overwhelmed at some point during the process. Why? Because you are tasked with itemizing all of the assets listed in the estate, properly distributing those assets, making sure debts are...

10 August

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There’s No Such Thing as a “Simple Will”

Posted by Bobby Feisee

in Bobby's Blog

I get this request, in some form or another, on a regular basis - “I want a simple will.” The client is thinking they have a relatively straightforward collection of assets and a “typical” family. Then they drop the proverbial bomb and reveal that they have a half-interest in a rental property based in Honolulu, natural gas interests in another state, and a general partnership worth somewhere between $100,000 and $5,000,000. They also divulge the fact that they have one child who is physically disabled and another child who has served jail time with two divorces under their belt. Clearly, a simple will is not going to be in the picture. And I make this determination in many instances when meeting with clients. Each individual’s estate is unique. It is important to look at all the complexities and nuances so your estate plan is detailed, thorough, and legally valid. When meeting with...

07 April

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No Children? The Challenge of Deciding Who Receives Your Estate’s Assets

Posted by Bobby Feisee

in Bobby's Blog

Most people with adult children include them in their estate plan by giving them authority to make decisions on their behalf, and to ultimately inherit their assets. But what about couples who have no children? Estate planning for childless couples can actually be more challenging than for couples with children. How is it more difficult? Well, because there’s probably no default individual to empower to make decisions on your behalf, administer your estate, and determine who will inherit your assets. Childless couples usually look to siblings, extended relatives, charities, or close friends. Another issue for childless couples is the tendency to delay putting an estate plan together. They may think it’s not a time-sensitive task since they don’t have offspring to consider when they ;pass on. This is the wrong kind of thinking. What if you become incapacitated? If you don’t have a power of attorney, advanced medical directive, and...

11 November

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Will The Money You Leave Behind Ruin Your Children or Grandchildren?

Posted by Bobby Feisee

in Bobby's Blog

It’s one of those fears many individuals (especially wealthy individuals) have, but rarely speak about. They aren’t worried about the “death tax” or other inheritance taxes. In fact, the concern isn’t heirs receiving too little money; it’s receiving too much. The concern is that inherited wealth can have adverse effects on the people inheriting the money. The beneficiaries could treat it as though they won the lottery and splurge on reckless, irresponsible purchases. Imagine, the money you worked so hard to accumulate ends up being blown on a fleet of fancy cars or, even worse, a drug habit or multiple divorces. People like Warren Buffett, Bill Gates, and T. Boone Pickens have gone on record stating that they do not plan to leave their vast fortunes exclusively to their children. In fact, Mr. Pickens has stated, “I’m not a big fan of inherited wealth. It generally does more harm...

26 April

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Big Estate Planning Mistakes Many People Make (But Can Easily Be Avoided)

Posted by Bobby Feisee

in Bobby's Blog

Properly organizing your financial and personal assets, planning for disability, and leaving your legacy should be is the central goals of estate planning. It is important the focus stays on your personal goals and making the transition smoother for your loved ones. Unfortunately, many people who opt to “go it alone” and not consult with an estate planning attorney, make some bad (and totally preventable) mistakes that adversely affect their estate plans. Below are three common estate planning mistakes that occur, unfortunately, far too often: 1. Never taking the time to even come up with an estate plan. This one really bugs me, but it’s an undeniable fact – thousands of people fail to take the time to create an estate plan. The result? When you pass away, the laws of intestacy will apply and there’s no guarantee that your estate will be distributed to the people you care about most....

20 January

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The Government Grim Reaper Wants Your Money – States With Terrifying Death Tax Laws

Posted by Bobby Feisee

in Bobby's Blog

Some people think the estate tax is simply a creature of the federal government. Wrong. There are numerous states – 16, along with Maryland and D.C., to be exact – that impose an estate tax. Even more surprising is that some states actually impose an estate tax on estates that are valued at less than one million dollars. At less than one million dollars, these state-enforced estate taxes will be a problem for many middle class families. If you’re frugal and have good savings practices, a middle class family has the ability to save and wind up with an estate close to one million dollars, or more. With proper planning these state estate taxes can be deferred, minimized and potentially eliminated. The taxing authorities look at all of your assets when determining the value of your estate with some surprising valuation methods. For example, many people believe that proceeds from...

28 December

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Take Care of Your Furry Loved Ones – The Benefits of a Pet Trust

Posted by Bobby Feisee

in Bobby's Blog

Many people who own pets consider them to be a member of the family, much like a child. When planning your estate, you consider your children and make plans to pass on assets and ensure your children are protected. The same logic applies to your pets – you want to make sure there is someone designated to take care of them when you are no longer able to. Many pet owners just assume that their remaining family members will continue to care for their beloved pet. As the years go by, your surviving spouse may not be able to handle the additional care of a pet. Even if they want to help with the care of your pets, your adult children may not have the ability to take care of them or may live in an apartment complex that does not permit pets. This is where a...

17 November

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Importance of Disability Planning

Posted by Bobby Feisee

in Bobby's Blog

You and your loved ones may be relatively healthy today, but can you guarantee you’ll be just as healthy 20 years from now? Of course not. No one can predict when and if they develop a physical disability or disease. No one can be ready for the day they walk into their doctor’s office and are told they’re suffering from Alzheimer’s or cancer. Even if you eat a perfect diet, exercise every day and take supplements, you still can’t avoid the risk of suffering a debilitating physical ailment. For example, one-third of adults over the age of 65 suffer a fall each year. Another shocking statistic - one in three Americans will face at least a 90-day disability before reaching age 65, according to advisorsforum.com. Another critical factor in properly preparing for a disability is the unfortunate fact that nursing homes and long-term care facilities are extremely expensive. In fact,...

17 May

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Importance of Having a Durable Power of Attorney

Posted by Bobby Feisee

in Bobby's Blog

This article deals with the scenario of a loved one who becomes incapacitated and therefore needs someone to execute appropriate planning of their estate. The fact is, in the absence of an estate plan, only a properly drafted General Durable Power of Attorney will afford a level of flexibility necessary to make critical decisions about an incapacitated person’s estate. In this article, I’ll talk about how the Power of Attorney plays an important role in the planning and protection process. What does a Durable Power of Attorney do? Well, this is a legal document that an individual prepares while they are mentally able to read and understand the document. The document cannot be drafted after you’ve become incapacitated. Once you become incapacitated, the document states who will be appointed an Agent (which is either individual or multiple individuals) to act on the incapacitated individual’s behalf. Think of this agent as...