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I?ve been practicing exclusively in the region of estate planning for over 27 years. Yet, a week ago a questioned resulting from a young couple seemed to resonate i believe like never before. ?What may be the number one advantage of carrying out a trust?? My thoughts quickly raced towards the 1980?s movie ?City Slickers? once the old crusty cowboy believed to Billy Crystal, the city slicker, that he must find ?just one thing? that?s vital that you him in everyday life and employ that like a motivation to have a happy and successful life. This line made me realize that the ?just one thing? in estate planning, such as the movie, is different for each individual. The real answer is the quintessential clich??|, ?it depends?. The objective of this information will list probably the most important factors that people should consider. In the end, whatever your ?just one thing? is should keep you motivated to do this and provide ?Peace of Mind? for the loved ones.
Avoiding Probate ? This appears to be the relevant factor cited most frequently, although I disagree that it?s the most significant reason to plan. Probate in Arizona isn?t the costly, burdensome procedure that it is in some states like California or New York. Yes, it does cost some money, however in many instances the price is just a few thousand dollars. The seriousness of probate depends largely on the make-up of the assets. The greater ?complicated assets? you have (ie Oil Leases, closely held family based businesses, Partnerships, fractional interests in tangible Estate, etc.) and the more states that you own real estate, then you definitely increase the ?Probate Meter? quickly. Should you own real property in additional than one state, you?ll have to have a probate proceeding in each state, and that means you will probably need a lawyer in each state. But, if your assets are ?simple?, (a home, a car, some CDs) and primarily situated in Arizona, then your ?Probate Meter? is extremely low.
Saving Taxes ? Individuals have heard this phrase over and over again in newspaper ads inviting people to public seminars put on with a ?national expert? that nobody has ever really heard of. But, how does a Trust help much to save taxes? Under today?s tax laws, a common Revocable Trust does not save taxes for most people. First, a Trust doesn?t save any income taxes. The Trust is ignored for tax purposes and every one of the income generated through the Trust is taxed to the individual Grantors from the Trust as always. Also, for a single person, a Trust does not save any estate taxes. But, for any married couple, a Trust can help to save estate taxes. Most married people possess a Revocable Trust, that splits into an ?A? and a ?B? trust in the death of the first spouse. The primary reason for this split is it guarantees that the couple can get two exemptions to apply against the estate tax. One exemption for the ?B? trust once the first spouse dies, and then a second exemption from the ?A? trust when the surviving spouse passes. With no A/B trust, it?s possible the exemption of the first spouse could be wasted. But, because the federal estate tax exemption has become set at $5 million, most couples only need one exemption anyway. So, in the end, for probably 95% of married couples, having a trust will not save any estate taxes. Now, this is correct regarding the Revocable living trust. Don?t confuse this using the 4 or 5 other ?specialty trusts? which have the specific purpose of saving estate taxes. Types of a ?specialty trust? would be an Irrevocable Life insurance coverage Trust (made to keep life insurance coverage from the estate tax system) along with a Qualified Personal Residence Trust (designed to keep the primary and vacation residences out of the estate tax system). Restrictions and Incentives for Spouse ? A highly drafted Trust should contain provisions as to what transpires with the assets from the first spouse to die, when the surviving spouse remarries. Most clients want to adequately provide for their spouse, however they don?t want to provide for their spouse?s new spouse. Also, as to the extent can the surviving spouse change the estate plan, following the death of the first spouse, to disinherit the children. My experience is the fact that most spouses often remarry, and many of the time, that new spouse can also get children. Now, we end up getting a ?blended family?. Over time, the surviving spouse feels love and loyalty to the new spouse, and perhaps the brand new stepchildren. We probably all agree that the surviving spouse should be able to do what they wish with respect to their community property half curiosity about the asses. The more difficult real question is if the surviving spouse may also control the best disposition from the deceased spouse?s community property half of the trust and make provisions for that new spouse or even the new stepchildren from the deceased spouses?s half of the trust.
Restrictions and Incentives for Children ? The important thing question here pertains to the timing in which a child should gain unrestricted access, an outright distribution, towards the assets after the death of both mom and dad. We?d all agree that if a young child is a minor, then your assets should be controlled and restricted by an independent trustee for any period of time. What we may disagree on, is the appropriate age in which all restrictions and the independent trustee ought to be removed. Some clients say age 25, some say 30, and that i have had many who say 50 or 60. My experience would be that the older my customers are, the larger they will set the years for their children to gain control. For instance, when the children are minors, then most couples will set the restriction to be lifted at 30. However, if the couple is much older, and the kids are already over age 30, then these couples may set the restrictions to 40 years old or 45. We might also want to build certain ?incentives? in to the estate plan. A typical incentive is ?if you get money, then your trust will pay you another buck?. So, you create a motivation for a kid to visit out and earn a living. Through the years, I have seen the destruction that is delivered to a ?trust fund baby?. Money and inheritances can ruin a young child and ruin an existence. That?s the reason many wealthy people will leave large servings of their wealth to charities, instead of their children (company,Inexpensive Wedding Dresses there are tax advantages and estate tax benefits of doing this, but the primary reason would be to encourage the child to possess a productive life). You may even wish to provide incentives based on if a child graduates from college or achieves another educational benchmark. I actually do begin to see the risk of using the trust as a ?carrot? that?s dangled before a young child to be manipulative. But, some well thought out incentives can really go a long way to assist a son or perhaps a daughter deal with the vicissitudes of life and be blessing for them, and not a curse.
Asset Protection ? For example, having an A/B Trust as described above, can make certain the assets of the deceased spouse are not subject to the creditor claims of the surviving spouse. Like a firm, we?re recommending A/B trusts because of this more than the reason discussed above where an A/B trust can offer two estate tax exemptions. In variably, the surviving spouse results in a elderly care that chews in the net worth quickly. So, having half of the estate inside a ?B? trust, protected against the creditors (ie elderly care costs) of the surviving spouse constitutes a large amount of sense.
Also, a great Estate Planning Attorney can structure the inheritance for the children, to stay in trust for his or her lifetime. This can protect the inheritance from the potential creditors from the child for example divorce, bankruptcy, lawsuits, etc. My estate plan is structured that upon the deaths of we, our estate will be divided out into separate trusts to provide one trust for every of our children. We now have a completely independent trustee plus some incentives in each trust. At age 35, the child has got the to become his or her own trustee. So, essentially, the kid are now able to originate from the trust whatever the child wants for his ?health, education, support and maintenance?. The child can also be free, as the trustee, to get the trust assets right into a beach house, a cabin, or any investment that she or he chooses. Meanwhile, in the event that child divorces, his or her spouse cannot touch that trust. Also, if that child files bankruptcy, then your creditors cannot reach the assets in this trust. I refer to this as a ?wrapper of protection? that people can place around the assets which provides the trust ?bullet proof? creditor protection to the children. It?s also important to remember that a child cannot create his own trust to supply this sort of protection. UK Fashion Dresses The law in many states is really that the trust provides creditor protection only in cases where it was created by one individual for that benefit of someone else. Quite simply, the grantor or creator from the trust, cannot also be a beneficiary from the trust and achieve creditor protection. So, so long as the trust is made by a parent, for that advantage of a child or grandchild, it may have the creditor protection described above.
Providing a Plan for Incompetency ? As most of us age, we can see that our minds and our memories begin to diminish. Most of the estate litigation which comes into our firm relates one way or another to the incapacity of one or each of the mother and father. At these times we have seen many children turn against each other and a fight ensues as to what is in the needs of mom and dad. Unfortunately, the children seldom agree in regards to what is best. So, a legal battle is waged to find out who has the charge of the assets and who has a chance to make medical and financial decisions. Yes, a few of these problems should be addressed inside a Power of Attorney. But, Powers of Attorney were meant to cope with temporary situations, not permanent solutions. It is far better to possess a plan, drafted inside of the Trust, as to who will become in charge (?successor trustee?) when dad and mom aren?t capable. Also, to what extent will the Successor Trustee have a duty to give an accounting to any or all of the kids and keep them informed? Under what circumstances can dad and mom be moved out of state? What?s the plan once the assets go out? Will mom and dad live in a elderly care? Remember that someone over 75 is a lot more likely to become disabled and incompetent within the next Five years they are to die within the next 5 years. Then, couple this with the fact that the children are more likely to fight over issues in regards to what transpires with mom and dad, they will be to fight over the inheritance if mom and dad die. Customers are more likely to prevent all of these fights if there is a highly drafted estate plan in place.
Privacy ? Many clients such as the proven fact that an estate administered under a Trust is more apt to be kept private then an estate administered through the Probate Court. So, a number of our clients will create a Trust for that simple fact. Most of us have seen the ads on television where someone is referring to real estate strategy of buying property from an estate. How do these professionals find the property and know what is within probate and what isn?t? The answer is easy, in many probate proceedings, a listing is filed to the court and this inventory is a criminal record. So, everything needs to happen is you have a person relaxing in a workplace, searching the probate records to find property. Then, it?s also simple to find the names and addresses from the heirs. Now, if most of the heirs are outside the state, and there is local property, then your magic is incorporated in the proven fact that these heirs are now ?motivated sellers? and you will make a low ball offer. The end result is that the financial affairs from the decedent are actually public records that may be easily searched from any computer. The creation of a Trust provides privacy and avoids this issue of privacy altogether.
To conclude, there are lots of benefits to estate planning. It?s also true that there are many risks and problems that are made by not having an estate plan in place. The main reason and benefit that?s vital that you you?ll depend on your circumstances. Actually, I have listed the reason why that are lowest to me first, and the reasons that are most significant in my experience last. That is me, but relies upon 27 years of experience. You must decide what is important to you. But, in the end at least focus on the issues and plan for the inevitable. Early in my career I created a ?line? that I used in my public seminars. When the client said, ?oh, I truly don?t believe estate planning may benefit me at all.? My response was ?okay, put my business card in your refrigerator?. I said this tongue in cheek understanding that the few dollars the customer should have spent on the creation of an estate plan would multiply into huge attorney?s fees when the children would start to fight trying to unravel the many problems brought on by insufficient planning, or poor planning. There?s a reason why our estate litigation department may be the fasting growing practice area of our firm. Hopefully, your loved ones won?t fall into this trap. Whatever your reason, or ?just one thing? may be, use that as your motivation to create a quality estate plan. This can ensure invaluable peace of mind for you personally and for all your family members.
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EAST HAMPTON, N.Y. ? A funeral for Academy Award-winning actor Cliff Robertson is being held Friday on New York's Long Island.
Robertson won the Oscar in 1968 for his performance in "Charly." He played a mentally disabled man who undergoes medical treatment that makes him a genius. Robertson died Saturday of natural causes, one day after his 88th birthday.
Robertson had a string of impressive performances in television and on Broadway. On film, he is also remembered for his portrayal of future President John F. Kennedy in the World War II film "PT 109."
More recently, he played Uncle Ben in the "Spider-Man" movies.
Besides Friday's funeral at St. Luke's Episcopal Church in East Hampton, N.Y., memorial services are being planned for later dates in New York City and Los Angeles.
Envisioning a worst-case scenario in which climate change spirals out of control, researchers in the United Kingdom are planning to test a hose-and-balloon device that spews particles into the atmosphere in an attempt to bring global temperatures back down.
The method is a geoengineering technique that would mimic the cooling effect of giant volcanic eruptions. When thrown high into the atmosphere by volcanoes, small particles reflect sunlight into space, decreasing the amount of heat energy that arrives on Earth. If humans could place similar particles up high, we could theoretically offset the effects of greenhouse gas warming, researchers reason. [Read: Top 10 Craziest Environmental Ideas]
The upcoming tests, led by engineer Hugh Hunt at the University of Cambridge, would suspend a hose 0.6 miles (1 kilometer) into the atmosphere using a gigantic helium-filled balloon that is similar to a weather balloon. The hose will carry only water for now as researchers grapple with the challenges of keeping the hose aloft and functional. No actual geoengineering will take place.
"We've done lots of computer simulations on how balloons work in the wind, but now we need to do the tests," Hunt told LiveScience. "This is the next logical thing we have to do."
But not all scientists are sold on the idea of taking geoengineering experiments outside.
"There are issues involved in this that I don't think they're addressing with the experiment," said Alan Robock, a Rutgers University professor of environmental sciences. Among those barriers, Robock told LiveScience, are the rotating winds and cold temperatures at the high altitudes where particles would eventually need to be placed. Testing liquid water is also very different from testing the sulfur dioxide gas that would likely be the main ingredient in this type of geoengineering scheme, Robock said. In the atmosphere, sulfur dioxide combines with water to create reflective sulfuric acid particles.
The sticky ethics of engineering the climate
Engineering the climate to offset global warming is a controversial notion. The American Meteorological Society (AMS) and the American Geophysical Union (AGU) both hold the position that even if geoengineering could be done perfectly, humans have to slow greenhouse gas emissions.
"If we don't do that, then geoengineering is going to be needed at such a large scale that it can't possibly reduce all of climate change," said Robock, who helped write the AGU's 2009 position statement on geoengineering.
Geoengineering also has ethical pitfalls. Many researchers worry that the potential for rejiggering the planet's climate could lull people into a sense of complacency, removing the motivation to stop producing so many greenhouse gases. That would be a dangerous situation, Robock said, because if humans stopped maintaining the geoengineering infastructure (say, by running out of money to keep the hose and balloon functional) the buildup of greenhouse gases in the atmosphere would cause very rapid climate change, much faster than under current circumstances.
There's also a question of "whose hand would be on the thermostat," Robock said. Geoengineering would have to be a global solution, but different nations might have different interests. For example, Robock said, what if Russia decided that it could benefit from a warmer climate, or low-lying Pacific islands started clamoring for extra-cool temperatures? [The World's Weirdest Weather]
"Who's going to decide?" Robock said.
Even real-world testing of geoengineering needs to be approached with caution, Robock said, because some methods could cause local environmental shifts. Widespread geoengineering would alter precipitation patterns and even ozone cover (which protects us from the sun's harmful UV rays), he said, potentially disrupting the food supply and human lives.
"It's easy to think of things that might go wrong with this," Robock said. "What would you think of this writhing hose of sulfuric acid coming down out of the sky, spraying people, if the engineers can't keep it up?"
Last-ditch effort
Hunt himself said that he is horrified at the idea that humans might eventually be so desperate to fix our environmental problems that we'd have to turn to geoengineering.
"We're designing this thing not because we want to do geoengineering, but because we think someday we'll need to," he said. "I just think we need to have some sort of reasonable strategy for something else to do if everything else fails."
Humans are already inadvertently engineering the climate by pumping roughly 35 billion tons of carbon dioxide into the atmosphere each year, Hunt added. Geoengineering plans would add only a fraction of a percent of that amount in new particles to offset the greenhouse warming, he said.
"Every time you drive your car, every time you switch on your television, we're screwing things up," he said. "So the idea that we might be doing something unreasonable here, I find that a little bit aggravating."
But major technical barriers remain to make geoengineering work. The idea of forcing more reflective particles into the atmosphere to cool the Earth has precedent in nature: In 1991, for example, Mount Pinatubo in the Philippines erupted, and the volcanic fall-out cooled global temperatures by an average of 0.9 degrees Fahrenheit (0.5 degrees Celsius) over the next year.
It's not clear that humans will be able to reproduce this effect, however. Particles have to be the right size to hang in the atmosphere, and humans may not be able to maintain an artificial layer of particles thick enough to be effective, Robock said. Even getting the particles in the air is tough: They'll have to be injected upward of 6 to 11 miles (10 to 18 km) above ground, according to the Stratospheric Particle Injection for Climate Engineering, or SPICE, project, which is running the upcoming tests. That high in the atmosphere, you run into rotational winds and icy conditions that could easily destroy any delivery device.
The upcoming experiments, to be conducted in the next month in eastern England, will essentially test the waters using a lower altitude target and water instead of sulfur dioxide. The goal, according to SPICE, is to engineer a tether 15.5 miles (25 km) long. That would be the tallest human-built structure on Earth.
"We will have to deal with very high winds, the jet stream and high-altitude wind currents, and there's not much known about how balloons behave in high winds," Hunt said. "So the main purpose of the test at one kilometer is to examine the behavior of the balloon in high winds."
While the feasibility of seeding the atmosphere with reflective particles remains to be seen, even skeptics say that research on geoengineering should continue ? albeit in low-risk ways.
"I think it's important, and we have computer models that can do that," Robock said. "I'm advocating continuing to do that so we learn about those potential benefits and negative impacts. However, to start doing experiments outdoors, I think we have to be very cautious about that."
You can follow LiveScience senior writer Stephanie Pappas on Twitter @sipappas. Follow LiveScience for the latest in science news and discoveries on Twitter @livescience and on Facebook.
Bruce and Esther Huffman kiss during a interview Thursday, Sept. 15, 2011, in , McMinnville, Ore. The elderly McMinnville couple has gained unexpected fame after their accidental webcam video reached viral status on YouTube. The three-minute clip of Bruce and Esther Huffman's attempt to snap a photograph on their new laptop computer had reached more than 285,000 viewers by Wednesday evening. (AP Photo/Rick Bowmer)
Bruce and Esther Huffman kiss during a interview Thursday, Sept. 15, 2011, in , McMinnville, Ore. The elderly McMinnville couple has gained unexpected fame after their accidental webcam video reached viral status on YouTube. The three-minute clip of Bruce and Esther Huffman's attempt to snap a photograph on their new laptop computer had reached more than 285,000 viewers by Wednesday evening. (AP Photo/Rick Bowmer)
Bruce Huffman makes a monkey face as his wife Esther laughs Thursday, Sept. 15, 2011, in McMinnville, Ore. An elderly McMinnville couple has gained unexpected fame after their accidental webcam video reached viral status on YouTube. The three-minute clip of Bruce and Esther Huffman's attempt to snap a photograph on their new laptop computer had reached more than 285,000 viewers by Wednesday evening. (AP Photo/Rick Bowmer)
Bruce and Esther Huffman hug as they walk through their back yard Thursday, Sept. 15, 2011, in McMinnville, Ore. An elderly McMinnville couple has gained unexpected fame after their accidental webcam video reached viral status on YouTube. The three-minute clip of Bruce and Esther Huffman's attempt to snap a photograph on their new laptop computer had reached more than 285,000 viewers by Wednesday evening. (AP Photo/Rick Bowmer)
Bruce and Esther Huffman sit a their computer Thursday, Sept. 15, 2011, in McMinnville, Ore. The elderly McMinnville couple has gained unexpected fame after their accidental webcam video reached viral status on YouTube. The three-minute clip of Bruce and Esther Huffman's attempt to snap a photograph on their new laptop computer had reached more than 285,000 viewers by Wednesday evening. (AP Photo/Rick Bowmer)
McMINNVILLE, Ore. (AP) ? It slowly began to dawn on Esther and Bruce Huffman that perhaps they were being filmed.
"Warning," the gray-haired, bespectacled grandmother reads off the screen. "You must stop recording before trying to close cyber link."
Pause. "Maybe this recorded us," says the neatly coiffed, rosy-cheeked man next to her.
"Aw, gee," Esther replies.
The realization came toward the end of a nearly three-minute video that has launched the retired Oregon couple to YouTube stardom. They had unwittingly captured their first attempt at learning how to work the webcam on a new laptop.
The Huffmans met a couple of years after Bruce's first wife died, at the retirement complex in which they both lived. She liked his vivacity; he thought she would be a sturdy rudder to his boundless energy.
In the video, she plays the straight man as she tries to make a serious attempt at the request of their children and grandchildren. He's bouncing in his seat next to her, making monkey faces.
Esther had bought a laptop late this summer. Already a Facebook user, she was asked by her family to try recording videos for the amusement of the grandchildren.
In mid-August, the couple sat in front of their laptop, fiddling with the controls of a video recording program. Somehow, they got the program running. Somehow, they pressed "record."
It was filming as Bruce jokingly fretted about his appearance. "I'm so sad, Esther, I'm so sad," Bruce says with a sad-clown expression. "Look at all the wrinkles up there and the cracks in my head."
There is singing.
"Hello my darling, hello my baby, hello my ga-doh-go," Bruce intones, sliding from Looney Tunes into gibberish. "Lala-te-ki-ka."
Bruce makes faces, leaning close to the laptop screen and blowing out his cheeks: "Now look at the monkey. That's a pretty good monkey!"
When the couple realizes the webcam might have been recording their antics, they stiffen. But their 21-year-old granddaughter, Mindy, saw the video's potential. With their permission, she uploaded the file, dubbing it "Webcam 101 for Seniors." By Thursday, it was nearing 3 million views on YouTube.
In the crush of media that has descended on them, the Huffmans struggle to explain what made the video so compelling. After all, it was just a couple minutes of two Oregonians in a retirement community doing ... well, not much.
Perhaps, Esther said, people were attracted to its joy. We're under such a negative news barrage daily, she said. War, crime, natural disasters ? wouldn't people rather watch an 86-year-old man singing Looney Tunes?
Lynette Paulson, Esther's daughter, ventured that the unmitigated happiness in video resonates with viewers.
"They want to see that joy," Paulson said. "It just brings you up."
Or maybe, said 27-year-old grandson Luke Erickson, it shows the possibility that age doesn't mean infirmness or discontent, but that two spectacularly unself-conscious people eight decades on are capable of happiness and supporting and loving each other.
"I don't know how to do this," Esther complains in the video.
Bruce leans in to her.
"Whatever you do," he says, "you do fine."
___
Nigel Duara can be reached at www.twitter.com/nigelduara .
GORNJI MILANOVAC, Serbia ? Serb cousins David and Luka are poles apart from other kids, for when it comes to metalwear everything sticks.
The two boys from the central Serbian town of Gornji Milanovac have the rare ability to attract metal objects, acting much like human magnets.
Sanja Petrovic, the mother of 4-year-old David, said it first came to her attention "about a month ago."
"I asked him to fetch me a spoon so I cold feed his little brother, and he yelled back: 'Mom, it sticks!'" Petrovic recalls.
"I found him with several spoons and forks hanging from his body."
Terrified, the 26-year-old woman phoned her sister, who discovered that her son, Luka, 6, has the same attraction.
"Other kids in the family can't do this, just the two of them," Petrovic said.
The phenomenon is rare and so far medically unexplained. Several similar cases, however, have recently been reported in Serbia, Croatia and Bosnia.
"As far as I know, there is no medical or scientific explanation," said radiologist Mihajlo Dodic, who runs a practice in the Serbian capital, Belgrade. He said the cousins' magnetism borders on the "paranormal."
Luka's father, Slavisa Lukic, said doctors have examined the boys, and announced them to be perfectly healthy, adding that they should be monitored as they grow up.
"Nobody can tell us why this is happening," he said.
David's mother said her son loses his magnetic powers when he is asleep, but regains them when he wakes up and starts moving.
When he plays with his friends "anything will stick to him," she said. Afterward he will feel a little chilly and tired, she said.
Both David and Luka are happy to put on a show for to visitors. On cue, the boys proudly smile and raise their hands in the air to show that cutlery and plates stick to their bodies without assistance.
The rest of the family also seem to have grown accustomed to the peculiarity and the attention.
"It was in shock at first, but now we just try to keep the knives away from them," Petrovic says.
