Why You Need a Trust - Even if You Aren't Rich

When you hear the words, “trust fund,” do you conjure up images of stately mansions and party yachts? A trust fund - or trust - is actually a great estate planning tool for many people with a wide range of incomes who want to accomplish a specific purpose with their money.

Simply put, a trust is just a vehicle used to transfer assets, and trusts are especially useful for parents of minor children as well as those who wish to spare their beneficiaries the hassle of going to Court in the event of their incapacity or death.

And why would you want to keep your family out of court (known as avoiding probate)?

House Democrats Propose Sweeping New Changes To Tax Laws That Stand To Have Major Impact On Estate Planning—Part 1

On September 13, 2021, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws. Specifically, the Democrats have proposed a number of significant tax increases and other changes to funding the plan, including increases to personal income tax rates and the capital gains tax rate, along with a major reduction to the federal estate and gift tax exclusion and new restrictions on Grantor Trusts that would basically eliminate such trust’s ability to be used as planning vehicles.

While the proposed legislation is still under consideration and far from being finalized, given the broad-reaching impact these changes stand to have, we strongly encourage you to take action now if you would be affected by the proposed legislation if it does pass. With the exception of the capital gains rate increase, which could go into effect on transactions that occur on or after Sept. 13, 2021, most of the proposed changes would be effective after December 31, 2021, meaning that you have time to plan now.

A Not-So-Happy Accident: Bob Ross's Estate Planning Failures Leave His Son With Next to Nothing—Part 2

Bob's philosophy in both painting and life was that there "were no mistakes in life… just happy little accidents." Sadly, as detailed in the recent Netflix documentary Bob Ross: Happy Accidents, Betrayal & Greed, Bob's failure to coordinate his business agreements with his estate plan was anything but happy, leaving his only son largely unable to benefit from his father's fame and fortune.

Bob's planning failures led to an ugly court battle between his former business partners and his family, who were fighting for control of the lucrative intellectual property rights to the Bob Ross brand. And while Bob's son Steve ultimately lost his fight to benefit from the business empire built on his father's persona and painting skills, here in part two, we'll explain the steps you can take to ensure that your loved ones don't suffer the same fate and are able to fully benefit from all of your business assets following your death

A Not-So-Happy Accident: Bob Ross’s Estate Planning Failures Leave His Son With Next to Nothing—Part 1

As the host of the wildly popular The Joy of Painting TV series on PBS, Bob Ross became a pop-culture icon, who was equally famous for his giant head of hair, soothing baritone voice, and folksy demeanor as he was for his iconic landscape paintings. And like so many other artists, Bob’s artwork and the image would become even more popular following Bob’s death in 1995.

Bob’s philosophy in both painting and life was that there “were no mistakes in life… just happy little accidents.” Sadly, as detailed in the recent Netflix documentary Bob Ross: Happy Accidents, Betrayal & Greed, Bob’s failure to coordinate his business agreements with his estate plan was anything but happy, leaving his only son largely unable to benefit from his father’s fame and fortune.

As we’ll discuss in this series, Bob’s planning failures have led to an ugly court battle between his former business partners and his family, who were fighting for control of the lucrative intellectual property rights to the Bob Ross brand. And while Bob’s son Steve ultimately lost his fight to benefit from the business empire built on his father’s persona and painting skills, we’ll explain the steps you can take to ensure that your loved ones don’t suffer the same fate and are able to fully benefit from all of your business assets following your death.

Estate Planning Must-Haves For Single Parents

If you are a single parent, life for you right now probably couldn’t get any busier. You are likely being pulled between work, school activities, and home - and the inevitable emergencies that fill the lives of single parents everywhere.

Being a single parent is a huge responsibility, even if you do share time with a parenting partner, and especially so if you don’t. Regardless, as a single parent, your children’s lives are now largely in your hands. So what would happen to them if something happened to you? Who would take care of them? Who would pay for their housing and food? Who would pay for their education? These are questions you need to get answered, and the best way to do that is through estate planning.

Having an estate plan that covers the care of your children in case you should be in a severe accident, fall ill, or die welcomes peace of mind for the single parent knowing everything and everyone they love is taken care of. Here are the must-haves that can protect your children if something were to ever happen to you.

3 Ways To Benefit By Incorporating Charitable Giving Into Your Estate Plan

You are likely well aware of the tax benefits that come from donating to charity during your lifetime—donations to charity are tax-deductible. But you may be surprised to learn about the numerous benefits that are available when you incorporate charitable giving into your estate plan.

As with donating to charity during your lifetime, dedicating a portion of your estate to a charitable cause can reduce the taxable value of your estate. You can also receive significant tax savings by naming your favorite charity as the beneficiary of your IRA, 401(k), or other retirement accounts.

And if you have highly appreciated assets like stock and real estate that you want to sell, you can even set up a special type of charitable trust that can not only help you avoid both income and estate taxes but also create a lifetime income stream for yourself and your family, all while supporting your most beloved charitable cause.

Estate Planning 101: Wills vs. Trusts

Wills and trusts are two of the most commonly used estate planning documents, and they form the foundation of most estate plans. While both documents are legal vehicles designed to distribute your assets to your loved ones upon your death, the way in which they work is quite different.

From when they take effect and the property they cover to how they are administered, wills and trusts have some key differences that you need to consider when creating your estate plan. That said, when comparing the two documents, you won’t necessarily be choosing between one or the other—most plans include both.

In fact, a will is a foundational part of nearly every person’s estate plan. Yet, you may want to combine your will with a living trust to avoid the blind spots inherent in plans that rely solely on a will. As you’ll learn below, the biggest of these blind spots is the fact that if your estate plan only consists of a will, you are guaranteeing your family has to go to court if you become incapacitated or when you die.

Legendary Rapper DMX Dies With No Will, Millions in Debt, and 15 Children—Part 2

As we reported last week in part one, although DMX was wildly successful in both music and movies, the rap icon experienced serious legal and financial problems, along with frequent issues with drug addiction throughout his career. Having fathered 15 children with nine different women, DMX’s money issues largely stemmed from unpaid child support, but he also failed to pay income taxes, and both of these issues would land the rapper in prison and rehab on more than one occasion.

That said, on top of his failure to manage his finances, DMX also failed to create an estate plan. And as we’ll see below, this lack of planning has already ignited a court battle among the late rapper’s many potential heirs. Even worse, the rap icon’s lack of planning will likely mean that his fiancée, Desiree Lindstrom, the mother of DMX’s 15th child, son Exodus Simmons, will most likely inherit nothing from her late fiance’s fortune.

Legendary Rapper DMX Dies With No Will, Millions in Debt, and 15 Children—Part 1

Legendary hip hop artist DMX—born Earl Simmons—passed away on April 9 at age 50 after suffering a massive heart attack a week earlier at his home in White Plains, New York. The heart attack was reportedly triggered by a cocaine overdose on April 2, which left the rapper hospitalized in a coma. After a week of lingering in a vegetative state, his family made the decision to remove him from life support.

Despite selling more than 74 million albums and enjoying a wildly successful career in both music and movies, DMX, who died without a will, left behind an estate that some estimates report being millions of dollars in debt. Even though DMX likely died deeply in debt, just weeks after his passing, multiple members of his family, which includes 15 children from nine different women, petitioned the court seeking to become administrators of the late rap star's estate.

Don't Forget To Protect Your Furry Family: Estate Planning For Your Pets

It’s sad but true that many pets end up in shelters after their owner dies or becomes incapacitated. In fact, the Humane Society estimates that between 100,00 to 500,000 pets are placed in shelters each year for exactly this reason, and a large number of these animals are ultimately euthanized.

Unfortunately, the law considers pets to be nothing more than personal property just like cars, furniture, and electronic devices. So unless you take the proper steps to include your pet in your estate plan, your beloved companion could end up in a shelter or worse following your death or incapacity.

Everything You Need to Know About Including Digital Assets In Your Estate Plan—Part 2

There are a number of special considerations you should be aware of when including digital assets in your estate plan, and this series addresses each one. Last week in part one, we discussed some of the most common types of digital assets and the current legal landscape governing what happens to those assets upon your death or incapacity. Here, we offer some practical tips to ensure all of your digital assets are properly included in your estate plan, so these assets can provide the most benefit for your loved ones for generations to come.

Everything You Need to Know About Including Digital Assets In Your Estate Plan—Part 1

Recent advances in digital technology have made many aspects of our lives exponentially easier and more convenient. But at the same time, digital technology has also created some serious complications when it comes to estate planning. In fact, if you haven’t properly addressed your digital assets in your estate plan, there’s a good chance that most of those assets will be lost forever when you die.

Without the proper estate planning, just locating and accessing your digital assets can be a major headache—or even impossible—for your loved ones following your incapacity or death. And even if your loved ones can access your digital assets, in some cases, doing so may violate privacy laws or the terms of service governing your accounts. Plus, you may also have certain digital assets that you don’t want your loved ones to inherit, so you’ll need to take steps to restrict or limit access to those assets.

Britney Spears’ Nightmare Conservatorship Underscores The Vital Importance Of Incapacity Planning—Part 2

Back in 2008, the court-appointed Britney’s father and attorney Andrew Wallet as her co-conservators, as Britney was deemed mentally unfit to care for herself. The arrangement was only meant to be temporary, but in October of that year, the conservatorship was made long-term, and her father has remained in nearly complete control of Britney’s life ever since.

Although there has been widespread speculation that Britney’s conservatorship was abusive, the exact details of her conservatorship have been kept private. Moreover, until very recently, Britney had never spoken publicly about her life under the arrangement.

Britney Spears’ Nightmare Conservatorship Underscores The Vital Importance Of Incapacity Planning—Part 1

Since the age of 16, when she burst onto the charts with her debut single, “...Hit Me Baby One More Time,” Britney Spears has been one of the world’s most famous and beloved pop stars. Yet despite her massive fame and fortune, Britney, who is now 39, has never truly had full control over her own life.

As most familiar with pop culture know by now, Britney has been living under a conservatorship for the past 13 years. Also known as “adult guardianship,” a conservatorship is a legal structure in which the court granted Britney’s father, Jaime Spears, and other individuals nearly complete control over her legal, financial, and personal decisions. The conservatorship was initially established in February 2008 after Britney suffered a mental breakdown, which resulted in her being briefly hospitalized.

Estate Planning For A Child With Special Needs: What Parents Need To Know

Estate planning is an obvious concern for all parents, but if you have a child with special needs, it’s crucial that you are aware of the unique considerations that go into planning for a child who may be dependent on you at some level for their lifetime. If your child has special needs, you must understand exactly what’s necessary to provide for the emotional, physical, and financial needs of your child, in the event of your own eventual death or potential incapacity.

3 Estate Planning Issues For LGBTQ Couples—Part 2

As we discussed last week in part one, such discrimination can create unique estate planning challenges, and regardless of your marriage status, if you are an LGTBQ adult in a committed partnership, you should be aware of several issues that can affect your planning strategies. Specifically, we discussed how relying on a will alone may not provide sufficient protection for your partner/spouse, and we explained why incapacity planning is particularly crucial if you want your partner/spouse to have a say in your medical treatment and the ability to access and manage your assets in the event you are hit with a debilitating illness or injury.

3 Estate Planning Issues For LGBTQ Couples—Part 1

Whether you are married or in a committed partnership, estate planning is about much more than planning for death—it's about planning for life. It's the way to ensure your beloved will be protected and provided for in the event of your death or incapacity. Especially if you are a member of the LGBTQ+ community, estate planning is even more critical.

Although same-gender marriage is legally recognized in all 50 states, long-held prejudice at both the political and family level continues to create complications for both married and unmarried same-gender couples. For example, suppose you have family members who are opposed to your marriage. In that case, your estate plan may be more likely to be disputed or even sabotaged by unsupportive relatives. This could mean that family members are more likely to contest your wishes, or it might result in custody battles over non-biological children in the event of the biological parent's death.

The Perfect Father’s Day Gift for Every Father

When you are a kid, finding a suitable gift for Father’s Day can be a struggle. You want to get Dad something he’ll enjoy, but few young people can afford a new set of golf clubs or a shiny new grill, so you end up settling once again for the standard necktie and socks.

And even after you become an adult, that struggle for the perfect Father’s Day gift often continues, albeit in a slightly different way. When it comes to expressing your love and appreciation for everything Dad has done, more “stuff” doesn’t cut it.